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.

Time Warner Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Accounts payable	777)	527)	653)	574)	693)
Other accrued expenses	1,778)	1,878)	1,946)	2,173)	1,925)
Participations payable	2,737)	2,525)	2,422)	2,551)	2,302)
Programming costs payable	728)	776)	712)	722)	706)
Accrued compensation	1,192)	1,004)	957)	1,034)	1,224)
Accrued interest	251)	320)	341)	303)	313)
Accrued dividends	319)	—)	—)	—)	—)
Accrued income taxes	134)	162)	157)	150)	159)
Accounts payable and accrued liabilities	7,916)	7,192)	7,188)	7,507)	7,322)
Deferred revenue	711)	564)	616)	579)	995)
Debt due within one year	5,450)	1,947)	198)	1,118)	66)
Current liabilities	14,077)	9,703)	8,002)	9,204)	8,383)
Long-term debt, excluding due within one year	18,294)	22,392)	23,594)	21,376)	20,099)
Deferred income taxes	1,584)	2,678)	2,454)	2,204)	2,642)
Deferred revenue	468)	486)	352)	315)	482)
Noncurrent tax and interest reserves	1,703)	1,567)	1,535)	1,520)	2,561)
Participations payable	1,748)	1,780)	1,512)	1,076)	1,078)
Programming costs payable	728)	827)	816)	959)	1,076)
Noncurrent pension and post-retirement liabilities	1,058)	954)	908)	928)	733)
Deferred compensation	548)	491)	471)	491)	573)
Other noncurrent liabilities	590)	722)	556)	710)	463)
Other noncurrent liabilities	6,375)	6,341)	5,798)	5,684)	6,484)
Noncurrent liabilities	26,721)	31,897)	32,198)	29,579)	29,707)
Total liabilities	40,798)	41,600)	40,200)	38,783)	38,090)
Redeemable noncontrolling interest	35)	29)	29)	—)	—)
Common stock, $0.01 par value	17)	17)	17)	17)	17)
Additional paid-in capital	145,077)	146,780)	148,041)	149,282)	153,410)
Treasury stock, at cost	(47,074)	(47,497)	(45,612)	(42,445)	(37,630)
Accumulated other comprehensive loss, net	(1,437)	(1,510)	(1,446)	(1,164)	(852)
Accumulated deficit	(68,208)	(73,455)	(77,381)	(81,214)	(85,041)
Total Time Warner Inc. shareholders’ equity	28,375)	24,335)	23,619)	24,476)	29,904)
Noncontrolling interest	1)	2)	—)	—)	—)
Total equity	28,376)	24,337)	23,619)	24,476)	29,904)
Total liabilities and equity	69,209)	65,966)	63,848)	63,259)	67,994)

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

Analysis of the balance sheet from 2013 to 2017 reveals a significant shift in the debt maturity profile and a gradual improvement in the accumulated deficit. While total liabilities remained relatively stable over the five-year period, the composition of these liabilities moved toward a higher concentration of short-term obligations.

Current Liabilities and Liquidity Trends: Current liabilities experienced a substantial increase, rising from 8,383 million US$ in 2013 to 14,077 million US$ in 2017. This growth is primarily attributed to a sharp escalation in debt due within one year, which rose from 66 million US$ in 2013 to 5,450 million US$ in 2017. Other current components, such as accounts payable and accrued liabilities, remained relatively stable until a notable increase to 7,916 million US$ in 2017.
Noncurrent Liabilities and Long-Term Debt Migration: Noncurrent liabilities demonstrated a general downward trend, declining from 29,707 million US$ in 2013 to 26,721 million US$ in 2017. Long-term debt, excluding the portion due within one year, peaked in 2015 at 23,594 million US$ before decreasing to 18,294 million US$ by 2017. The inverse correlation between the decline in long-term debt and the surge in short-term debt indicates a migration of long-term obligations into current liabilities as they approached maturity.
Shareholders' Equity and Capital Adjustments: Total equity fluctuated during the period, starting at 29,904 million US$ in 2013, reaching a minimum of 23,619 million US$ in 2015, and recovering to 28,376 million US$ by 2017. A consistent improvement is observed in the accumulated deficit, which reduced from -85,041 million US$ in 2013 to -68,208 million US$ in 2017. Concurrently, treasury stock increased from -37,630 million US$ to -47,074 million US$, signaling a consistent strategy of share repurchases.
Overall Balance Sheet Stability: Total liabilities remained relatively range-bound, fluctuating between 38,090 million US$ and 41,600 million US$. Consequently, the total balance sheet size—comprising total liabilities and equity—remained stable, moving from 67,994 million US$ in 2013 to 69,209 million US$ in 2017, despite the internal restructuring of debt and equity accounts.

AI Ask an analyst for more

Download chart

Time Warner Inc. (NYSE:TWX)

Balance Sheet: Liabilities and Stockholders’ Equity