Name: Raytheon Co. (NYSE:RTN) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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Raytheon Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Commercial paper and current portion of long-term debt	1,499)	300)	300)	—)	—)
Contract liabilities	3,267)	3,309)	2,927)	2,239)	2,193)
Accounts payable	1,796)	1,964)	1,519)	1,520)	1,402)
Accrued employee compensation	1,813)	1,509)	1,342)	1,234)	1,154)
Other current liabilities	1,416)	1,206)	1,260)	1,434)	1,377)
Current liabilities	9,791)	8,288)	7,348)	6,427)	6,126)
Accrued retiree benefits and other long-term liabilities	8,553)	6,938)	8,287)	7,775)	7,140)
Long-term debt, excluding current portion	3,261)	4,755)	4,750)	5,335)	5,330)
Operating lease liabilities, noncurrent	706)	—)	—)	—)	—)
Long-term liabilities	12,520)	11,693)	13,037)	13,110)	12,470)
Total liabilities	22,311)	19,981)	20,385)	19,537)	18,596)
Redeemable noncontrolling interests	32)	411)	512)	449)	355)
Common stock, par value, $0.01 per share	3)	3)	3)	3)	3)
Additional paid-in capital	—)	—)	—)	—)	398)
Accumulated other comprehensive loss	(9,260)	(8,618)	(7,935)	(7,411)	(7,176)
Retained earnings	21,480)	20,087)	17,895)	17,474)	16,903)
Total Raytheon Company stockholders’ equity	12,223)	11,472)	9,963)	10,066)	10,128)
Noncontrolling interests in subsidiaries	—)	—)	—)	—)	202)
Total equity	12,223)	11,472)	9,963)	10,066)	10,330)
Total liabilities, redeemable noncontrolling interests and equity	34,566)	31,864)	30,860)	30,052)	29,281)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

The balance sheet reflects a period of expansion in total obligations and equity from 2015 to 2019. Total liabilities, redeemable noncontrolling interests, and equity grew from 29,281 million US dollars in 2015 to 34,566 million US dollars by 2019, indicating an overall increase in the company's financial footprint.

Current Liabilities Trends: An upward trajectory is observed in current liabilities, which rose from 6,126 million US dollars in 2015 to 9,791 million US dollars in 2019. This increase is primarily driven by a significant spike in commercial paper and the current portion of long-term debt, which reached 1,499 million US dollars in 2019 after being negligible or absent in earlier years. Additionally, contract liabilities showed a steady increase, growing from 2,193 million US dollars in 2015 to 3,267 million US dollars in 2019, suggesting a growth in advance payments or deferred revenue from customers.
Long-Term Liability Composition: Long-term liabilities remained relatively stable, ending 2019 at 12,520 million US dollars compared to 12,470 million US dollars in 2015. However, the internal composition of these liabilities shifted; long-term debt, excluding the current portion, decreased from 5,330 million US dollars in 2015 to 3,261 million US dollars in 2019. This reduction in long-term debt was offset by an increase in accrued retiree benefits and other long-term liabilities, which climbed from 7,140 million US dollars to 8,553 million US dollars over the same period.
Stockholders' Equity and Reserves: Total equity experienced a general increase, moving from 10,330 million US dollars in 2015 to 12,223 million US dollars in 2019. This growth is largely attributed to a consistent rise in retained earnings, which grew from 16,903 million US dollars to 21,480 million US dollars, indicating strong cumulative profitability. This gain was partially mitigated by a widening accumulated other comprehensive loss, which deepened from -7,176 million US dollars in 2015 to -9,260 million US dollars in 2019.
Capital Structure and Solvency: The company's total liabilities increased by approximately 19.7% over the five-year period, while total equity grew by approximately 18.3%. The shift from long-term debt toward short-term commercial paper in 2019 indicates a change in the financing strategy, moving toward shorter-term liquidity instruments. The steady growth in retained earnings relative to the increase in total liabilities suggests a balanced approach to financing growth through both internal accruals and external debt.

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