Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Philip Morris International Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Short-term borrowings	137)	1,968)	5,637)	225)	244)
Current portion of long-term debt	3,392)	4,698)	2,611)	2,798)	3,124)
Accounts payable	3,952)	4,143)	4,076)	3,331)	2,780)
Marketing and selling	1,015)	862)	695)	811)	782)
Taxes, except income taxes	6,904)	7,514)	7,440)	6,324)	6,403)
Employment costs	1,305)	1,262)	1,168)	1,146)	1,189)
Dividends payable	2,120)	2,041)	1,990)	1,958)	1,880)
Other	2,832)	2,737)	2,679)	1,637)	2,122)
Accrued liabilities	14,176)	14,416)	13,972)	11,876)	12,376)
Income taxes	1,258)	1,158)	1,040)	1,025)	1,091)
Current liabilities	22,915)	26,383)	27,336)	19,255)	19,615)
Long-term debt, excluding current portion	42,166)	41,243)	34,875)	24,783)	28,168)
Deferred income taxes	2,517)	2,335)	1,956)	726)	684)
Employment costs	2,940)	3,046)	1,984)	2,968)	4,470)
Income taxes and other liabilities	1,116)	1,743)	1,841)	1,766)	2,509)
Noncurrent liabilities	48,739)	48,367)	40,656)	30,243)	35,831)
Total liabilities	71,654)	74,750)	67,992)	49,498)	55,446)
Common stock, no par value	—)	—)	—)	—)	—)
Additional paid-in capital	2,335)	2,285)	2,230)	2,225)	2,105)
Earnings reinvested in the business	32,869)	34,090)	34,289)	33,082)	31,638)
Accumulated other comprehensive losses	(11,314)	(11,815)	(9,559)	(9,577)	(11,181)
Cost of repurchased stock	(35,640)	(35,785)	(35,917)	(35,836)	(35,129)
Total PMI stockholders’ deficit	(11,750)	(11,225)	(8,957)	(10,106)	(12,567)
Noncontrolling interests	1,880)	1,779)	2,646)	1,898)	1,936)
Total stockholders’ deficit	(9,870)	(9,446)	(6,311)	(8,208)	(10,631)
Total liabilities and stockholders’ deficit	61,784)	65,304)	61,681)	41,290)	44,815)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

The financial data exhibits several significant trends and patterns in the company's liabilities and equity structure over the five-year period ending December 31, 2024.

Short-term borrowings: There is notable volatility, with a peak in 2022 at US$5,637 million, followed by a sharp decline in 2023 and reaching a low in 2024 at US$137 million. This indicates a reduction in reliance on short-term borrowings in the most recent year.
Current portion of long-term debt: This figure decreased from 2020 to 2022, falling from US$3,124 million to US$2,611 million, but then surged to US$4,698 million in 2023 before declining again to US$3,392 million in 2024. This reflects fluctuations in debt maturity profiles within current liabilities.
Accounts payable: There has been a steady increase from 2020 to 2023, rising from US$2,780 million to US$4,143 million, followed by a slight decrease in 2024 to US$3,952 million, pointing to generally growing payables before a recent small contraction.
Marketing and selling expenses: Marketing and selling costs have generally increased over the period, peaking at US$1,015 million in 2024 after some fluctuations, suggesting increased investment in market presence.
Taxes, except income taxes: The tax expenses, excluding income taxes, have experienced an upward trend, rising from US$6,403 million in 2020 to US$7,514 million in 2023, with a subsequent decrease to US$6,904 million in 2024, indicating variability in tax obligations.
Employment costs (reported twice): Employment costs reported as general expenses rose steadily from US$1,189 million in 2020 to US$1,305 million in 2024. However, another entry reflecting employment costs shows a sharp decline from US$4,470 million in 2020 to US$1,984 million in 2022, with an increase again over the next two years, possibly indicating different categorizations or adjustments.
Dividends payable: Dividends payable have increased consistently, from US$1,880 million in 2020 to US$2,120 million in 2024, reflecting steady shareholder returns.
Accrued liabilities: These liabilities increased from US$12,376 million in 2020 to a peak of US$14,416 million in 2023 before a mild decline to US$14,176 million in 2024, indicating growing short-term obligations accrued over time.
Income taxes: Income tax payments were relatively stable between 2020 and 2022, around US$1,000 million, then increased to US$1,258 million by 2024, showing rising tax expenses possibly driven by higher taxable income.
Current liabilities: Current liabilities grew sharply from US$19,615 million in 2020 to US$27,336 million in 2022, followed by a decrease to US$22,915 million in 2024, indicating substantial changes in short-term financial obligations.
Long-term debt, excluding current portion: There is a clear upward trajectory in long-term debt, increasing from US$28,168 million in 2020 to US$42,166 million in 2024, showing expanded long-term leverage and possible financing for growth or other purposes.
Deferred income taxes: Deferred taxes increased markedly, nearly quadrupling from US$684 million in 2020 to US$2,517 million in 2024, which may indicate timing differences in income recognition or changes in tax regulations.
Income taxes and other liabilities: This category decreased steadily from US$2,509 million in 2020 to US$1,116 million in 2024, suggesting reductions in miscellaneous statutory liabilities.
Noncurrent liabilities: Noncurrent liabilities rose substantially from US$35,831 million in 2020 to US$48,739 million in 2024, consistent with the increase in long-term debt and deferred tax liabilities.
Total liabilities: Total liabilities followed an increasing trend from US$55,446 million in 2020 to a peak of US$74,750 million in 2023, then decreased to US$71,654 million in 2024. This overall growth indicates expanding obligations, especially in noncurrent liabilities.
Additional paid-in capital: This equity component showed modest steady growth from US$2,105 million in 2020 to US$2,335 million in 2024, indicating incremental capital contributions or adjustments.
Earnings reinvested in the business: Retained earnings increased from US$31,638 million in 2020 to US$34,289 million in 2022 but decreased thereafter to US$32,869 million in 2024, signaling some distribution or losses impacting accumulated profits.
Accumulated other comprehensive losses: The comprehensive losses have widened overall, beginning at negative US$11,181 million in 2020, narrowing slightly in 2021-2022, then deteriorating again to negative US$11,314 million in 2024, suggesting continuing adverse effects from items not captured in net income.
Cost of repurchased stock: The cost associated with repurchased stock remained consistently negative, around US$35,000 million, indicating ongoing share repurchase programs without notable change in magnitude.
Total PMI stockholders’ deficit: The stockholders’ deficit improved from negative US$12,567 million in 2020 to negative US$8,957 million in 2022 but worsened again to negative US$11,750 million in 2024, reflecting fluctuations in equity value likely influenced by comprehensive losses and buybacks.
Noncontrolling interests: This item fluctuated between US$1,779 million and US$2,646 million, without a clear trend, indicating variable minority interests in subsidiaries.
Total stockholders’ deficit: The overall stockholders’ deficit diminished from negative US$10,631 million in 2020 to negative US$6,311 million in 2022, followed by a reversal to negative US$9,870 million in 2024, underscoring changes in net equity position.
Total liabilities and stockholders’ deficit: Presented values increased from US$44,815 million in 2020 to US$65,304 million in 2023 then declined to US$61,784 million in 2024, echoing the combined effect of liabilities growth and equity changes over the years.

In summary, the data reveals a trend of growing long-term liabilities with substantial fluctuations in current liabilities, particularly short-term borrowings. Equity components reflect persistent stock repurchases combined with variable retained earnings and accumulated losses, resulting in a notable shareholders' deficit over the period. The increased deferred taxes and income tax expenses also suggest evolving tax positions. These trends suggest strategic financing and operational choices influencing the company's financial structure.

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Philip Morris International Inc. (NYSE:PM)

Balance Sheet: Liabilities and Stockholders’ Equity