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.

Valero Energy Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current portion of debt and finance lease obligations	1,406)	1,109)	1,264)	723)	494)
Accounts payable	12,567)	12,728)	12,495)	6,082)	10,205)
Current operating lease liabilities	360)	311)	315)	285)	331)
Defined benefit plan liabilities	55)	35)	41)	45)	37)
Environmental liabilities	23)	21)	35)	59)	27)
Wage and other employee-related liabilities	392)	388)	349)	210)	292)
Accrued interest expense	83)	67)	88)	99)	83)
Contract liabilities from contracts with customers	40)	129)	78)	56)	55)
Blending program obligations	83)	189)	268)	159)	31)
Other accrued liabilities	204)	75)	79)	81)	93)
Accrued expenses	1,240)	1,215)	1,253)	994)	949)
Taxes other than income taxes payable	1,452)	1,568)	1,461)	1,372)	1,304)
Income taxes payable	137)	841)	378)	112)	208)
Current liabilities	16,802)	17,461)	16,851)	9,283)	13,160)
Debt and finance lease obligations, less current portion	10,118)	10,526)	12,606)	13,954)	9,178)
Deferred income tax liabilities	5,349)	5,217)	5,210)	5,275)	5,103)
Noncurrent operating lease liabilities	753)	776)	940)	885)	959)
Liability for unrecognized tax benefits	238)	239)	863)	859)	954)
Defined benefit plan liabilities	476)	448)	601)	878)	834)
Repatriation tax liability	167)	301)	367)	422)	508)
Environmental liabilities	294)	296)	269)	272)	319)
Wage and other employee-related liabilities	90)	87)	133)	124)	121)
Other accrued liabilities	245)	163)	231)	180)	192)
Other long-term liabilities	2,263)	2,310)	3,404)	3,620)	3,887)
Long-term liabilities	17,730)	18,053)	21,220)	22,849)	18,168)
Total liabilities	34,532)	35,514)	38,071)	32,132)	31,328)
Common stock, $0.01 par value	7)	7)	7)	7)	7)
Additional paid-in capital	6,901)	6,863)	6,827)	6,814)	6,821)
Treasury stock, at cost	(25,322)	(20,197)	(15,677)	(15,719)	(15,648)
Retained earnings	45,630)	38,247)	28,281)	28,953)	31,974)
Accumulated other comprehensive loss	(870)	(1,359)	(1,008)	(1,254)	(1,351)
Total Valero Energy Corporation stockholders’ equity	26,346)	23,561)	18,430)	18,801)	21,803)
Noncontrolling interests	2,178)	1,907)	1,387)	841)	733)
Total equity	28,524)	25,468)	19,817)	19,642)	22,536)
Total liabilities and equity	63,056)	60,982)	57,888)	51,774)	53,864)

Based on: 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), 10-K (reporting date: 2019-12-31).

The financial data reveals notable fluctuations and trends in the liabilities and equity structure over the five-year period.

Current Liabilities: The current portion of debt and finance lease obligations showed a marked increase, rising from $494 million in 2019 to $1,406 million in 2023, indicating greater short-term debt commitments.; Accounts payable exhibited volatility, declining sharply in 2020 but rising again in subsequent years to peak around $12.7 billion in 2022 before a slight decrease in 2023.; Current operating lease liabilities remained relatively stable, fluctuating moderately around the $300 million mark.; Wage and other employee-related liabilities increased steadily from $292 million in 2019 to $392 million in 2023, reflecting growing obligations to employees.; Income taxes payable showed substantial variability, initially decreasing in 2020 but then escalating sharply to $841 million in 2022 before falling again in 2023.; Overall current liabilities increased significantly from $13.16 billion in 2019 to approximately $16.8 billion in 2023, with notable peaks and troughs over the period.
Noncurrent Liabilities: Debt and finance lease obligations excluding the current portion peaked in 2020 at nearly $14 billion, followed by a gradual decrease to just above $10 billion by 2023, suggesting efforts to reduce long-term debt levels.; Deferred income tax liabilities remained relatively stable, maintaining figures slightly above $5 billion throughout the timeframe.; Defined benefit plan liabilities diminished markedly from $834 million in 2019 to $476 million in 2023, indicating reduced pension-related obligations.; Other long-term liabilities decreased substantially from $3.9 billion in 2019 to $2.3 billion in 2023, pointing to lower ancillary long-term obligations.; Long-term liabilities overall decreased from $18.17 billion in 2019 to $17.73 billion in 2023 after peaking in 2020, reflecting a general downward trend in long-term debts and obligations.
Total Liabilities: Total liabilities showed an increase from $31.3 billion in 2019 to a peak of $38.1 billion in 2021, then gradually declined to $34.5 billion in 2023. This pattern suggests an expansion in total obligations during the middle of the period, followed by moderate deleveraging.
Equity and Related Components: Retained earnings displayed considerable growth, moving from $31.97 billion in 2019 to $45.63 billion in 2023, indicating sustained profitability and/or retained profits over time.; Accumulated other comprehensive loss variably decreased and increased, with a high of negative $1.35 billion in 2022 improving to negative $870 million in 2023, suggesting some recovery in unrealized losses or other comprehensive income items.; Treasury stock at cost rose significantly in magnitude (more negative), from around -$15.6 billion in 2019 to -$25.3 billion in 2023, indicating increased repurchase of shares and a greater reduction of outstanding equity.; Total stockholders’ equity increased from $21.8 billion in 2019 to $26.3 billion in 2023, following a dip around 2020 and 2021, highlighting stronger shareholder value in recent years.; Noncontrolling interests increased steadily, suggesting rising minority interests in consolidated subsidiaries.; Total equity grew by approximately 27% over the period, from $22.5 billion to $28.5 billion, aligning with increases in retained earnings and other shareholder contributions.
Total Liabilities and Equity: The aggregate of liabilities and equity increased from $53.9 billion in 2019 to $63.1 billion in 2023. This growth reflects an overall expansion in the balance sheet size, with both liabilities and equity contributing to the increase.

In summary, the data portrays a company managing its leverage by increasing current debt obligations while gradually reducing long-term debts. The equity base strengthened mainly due to enhanced retained earnings, despite sizable share repurchases. Volatility in certain liabilities such as accounts payable and income taxes payable suggests variable operational cash flow requirements and tax position changes. Overall, the balance sheet expanded consistently, driven by rising total assets financed through a combination of liabilities and equity growth.

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Valero Energy Corp. (NYSE:VLO)

Balance Sheet: Liabilities and Stockholders’ Equity