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.

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 financial data reveals several notable trends and shifts across the analyzed periods.

Current Liabilities: Current liabilities show a consistent upward trend, rising from 6,126 million USD in 2015 to 9,791 million USD in 2019. This increase is driven mainly by the growth in accrued employee compensation, which rose steadily from 1,154 million USD to 1,813 million USD over the period. Accounts payable experienced fluctuations but overall grew from 1,402 million USD to 1,796 million USD. Contract liabilities also increased substantially from 2,193 million USD to a peak of 3,309 million USD in 2018 before slightly declining to 3,267 million USD. Commercial paper and the current portion of long-term debt showed values only from 2017 onward, starting at 300 million USD for two years, then surging to 1,499 million USD in 2019. Other current liabilities fluctuated within a narrow range.
Long-Term Liabilities: Long-term liabilities, excluding current portions, decreased over time from 5,330 million USD in 2015 to 3,261 million USD in 2019. This decline contrasts with accrued retiree benefits and other long-term liabilities, which although fluctuated, ultimately increased from 7,140 million USD to 8,553 million USD, showing underlying growth in non-debt long-term obligations. New data appeared in 2019 for operating lease liabilities, noted at 706 million USD, suggesting adoption of new accounting standards or recognition practices. Overall long-term liabilities reduced from 12,470 million USD in 2015 to 12,520 million USD in 2019 with some volatility.
Total Liabilities: Total liabilities increased moderately from 18,596 million USD in 2015 to 22,311 million USD in 2019, reflecting growing obligations despite some shifts between current and long-term components.
Stockholders' Equity and Ownership Interests: Stockholders’ equity showed a gradual increase from 10,128 million USD in 2015 to 12,223 million USD in 2019, indicating overall accumulation of owners' residual interest in the company. Retained earnings significantly grew from 16,903 million USD to 21,480 million USD, contributing to this equity growth. In contrast, accumulated other comprehensive loss expanded in magnitude from -7,176 million USD to -9,260 million USD, partially offsetting equity gains.
Other Items: Redeemable noncontrolling interests declined sharply from 355 million USD in 2015 to just 32 million USD in 2019, highlighting a reduced influence or presence of noncontrolling shareholders. Additional paid-in capital and noncontrolling interests in subsidiaries were only reported in early years and not disclosed in later periods, limiting analysis.
Total Capital Structure: The aggregate sum of liabilities, redeemable interests, and equity rose from 29,281 million USD in 2015 to 34,566 million USD in 2019, reflecting overall growth in financial scale attributable to increased liabilities and equity balances.

In summary, the data indicates expanding current liabilities dominated by rising employee compensation and contract obligations, a reduction in certain long-term debt coupled with rising non-debt obligations, and an increase in shareholders’ equity supported by retained earnings despite increasing comprehensive losses. The overall financial position grew steadily throughout the periods assessed.

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Raytheon Co. (NYSE:RTN)

Balance Sheet: Liabilities and Stockholders’ Equity