Name: Twitter Inc. (NYSE:TWTR) | 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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Twitter Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable	203,171)	194,281)	161,148)	145,186)	170,969)
Accrued compensation	325,113)	171,681)	190,465)	155,830)	98,553)
Federal Trade Commission accrual	150,000)	150,000)	—)	—)	—)
Deferred revenue	78,541)	58,976)	68,987)	38,949)	27,824)
Accrued tax liabilities	47,830)	40,384)	45,967)	39,729)	36,097)
Accrued publisher, content and ad network costs	45,025)	42,541)	45,265)	33,014)	32,462)
Accrued professional services	41,321)	27,404)	38,596)	—)	—)
Accrued other	230,520)	171,979)	111,613)	138,229)	132,397)
Accrued and other current liabilities	918,350)	662,965)	500,893)	405,751)	327,333)
Convertible notes, short-term	—)	917,866)	—)	897,328)	—)
Operating lease liabilities, short-term	222,346)	177,147)	146,959)	—)	—)
Finance lease liabilities, short-term	—)	567)	23,476)	68,046)	84,976)
Current liabilities	1,343,867)	1,952,826)	832,476)	1,516,311)	583,278)
Convertible notes, long-term	3,559,023)	1,875,878)	1,816,833)	1,730,922)	1,627,460)
Senior notes, long-term	693,996)	692,994)	691,967)	—)	—)
Operating lease liabilities, long-term	1,071,209)	819,748)	609,245)	—)	—)
Finance lease liabilities, long-term	—)	—)	205)	24,394)	81,308)
Deferred and other long-term tax liabilities, net	40,691)	31,463)	24,170)	17,849)	13,240)
Other long-term liabilities	43,531)	36,099)	24,107)	67,502)	59,973)
Long-term liabilities	5,408,450)	3,456,182)	3,166,527)	1,840,667)	1,781,981)
Total liabilities	6,752,317)	5,409,008)	3,999,003)	3,356,978)	2,365,259)
Preferred stock, $0.000005 par value; none issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.000005 par value	4)	4)	4)	4)	4)
Additional paid-in capital	8,432,112)	9,167,138)	8,763,330)	8,324,974)	7,750,522)
Treasury stock, at cost	(5,295)	(5,297)	—)	—)	—)
Accumulated other comprehensive loss	(117,320)	(66,094)	(70,534)	(65,311)	(31,579)
Retained earnings (accumulated deficit)	(1,002,302)	(1,125,669)	11,586)	(1,454,073)	(2,671,729)
Stockholders’ equity	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Total liabilities and stockholders’ equity	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

An analysis of the balance sheet reveals a significant expansion in total liabilities and a fluctuating equity position between 2017 and 2021. Total liabilities grew from 2.37 billion in 2017 to 6.75 billion by 2021, representing a substantial increase in the company's total obligations. This growth was primarily driven by a strategic shift toward long-term debt financing and the recognition of lease obligations.

Liability Structure and Debt Trends: Long-term liabilities experienced the most aggressive growth, rising from 1.78 billion in 2017 to 5.41 billion in 2021. The primary driver was the issuance of long-term convertible notes, which increased from 1.63 billion in 2017 to 3.56 billion in 2021, with a sharp spike occurring between 2020 and 2021. Short-term liabilities exhibited higher volatility, peaking in 2020 at 1.95 billion, largely due to the presence of short-term convertible notes in 2018 and 2020.
Operating Lease Obligations: A notable shift in the liability profile occurred starting in 2019 with the introduction of operating lease liabilities. Long-term operating lease liabilities grew from zero in 2018 to 1.07 billion by 2021. Similarly, short-term operating lease liabilities rose from zero in 2018 to 222.3 million in 2021, indicating a significant increase in leased assets and associated long-term commitments.
Equity and Retained Earnings Analysis: Stockholders' equity showed an upward trend from 5.05 billion in 2017 to a peak of 8.70 billion in 2019, before declining to 7.31 billion by 2021. This volatility is mirrored in the retained earnings account, which began with a deep accumulated deficit of 2.67 billion in 2017, reached a brief positive balance of 11.6 million in 2019, and returned to an accumulated deficit of 1.00 billion by 2021. This pattern suggests inconsistent net income performance over the period.
Current Liability Composition: Accrued and other current liabilities grew steadily, increasing from 327.3 million in 2017 to 918.4 million in 2021. Within this category, accrued compensation showed significant growth, rising from 98.6 million in 2017 to 325.1 million in 2021, suggesting an increase in workforce costs or deferred compensation obligations.

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