Name: YUM! Brands Inc. (NYSE:YUM) | 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.

Download chart

YUM! Brands Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 26, 2015	Dec 27, 2014	Dec 28, 2013	Dec 29, 2012	Dec 31, 2011
Accounts payable	616)	694)	704)	684)	712)
Accrued capital expenditures	174)	250)	223)	264)	229)
Accrued compensation and benefits	465)	419)	442)	487)	440)
Dividends payable	197)	178)	164)	151)	131)
Accrued taxes, other than income taxes	116)	100)	93)	103)	112)
Other current liabilities	417)	331)	303)	256)	250)
Accounts payable and other current liabilities	1,985)	1,972)	1,929)	1,945)	1,874)
Income taxes payable	77)	77)	169)	97)	142)
Short-term borrowings	923)	267)	71)	10)	320)
Advertising cooperative liabilities	103)	95)	96)	136)	114)
Current liabilities	3,088)	2,411)	2,265)	2,188)	2,450)
Long-term debt	3,054)	3,077)	2,918)	2,932)	2,997)
Other liabilities and deferred credits	958)	1,244)	1,244)	1,579)	1,471)
Noncurrent liabilities	4,012)	4,321)	4,162)	4,511)	4,468)
Total liabilities	7,100)	6,732)	6,427)	6,699)	6,918)
Redeemable noncontrolling interest	6)	9)	39)	59)	—)
Common Stock, no par value	—)	—)	—)	—)	18)
Retained earnings	1,150)	1,737)	2,102)	2,286)	2,052)
Accumulated other comprehensive income (loss)	(239)	(190)	64)	(132)	(247)
Shareholders’ equity, YUM! Brands, Inc.	911)	1,547)	2,166)	2,154)	1,823)
Noncontrolling interests	58)	57)	63)	99)	93)
Total shareholders’ equity	969)	1,604)	2,229)	2,253)	1,916)
Total liabilities, redeemable noncontrolling interest and shareholders’ equity	8,075)	8,345)	8,695)	9,011)	8,834)

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

The financial position between 2011 and 2015 is characterized by a substantial contraction in shareholders' equity and a strategic shift in the composition of liabilities, specifically regarding the utilization of short-term borrowing toward the end of the period.

Current Liabilities and Short-Term Debt: Current liabilities remained relatively stable between 2011 and 2014, fluctuating within a range of 2,188 million to 2,450 million. However, a significant increase is observed in 2015, where current liabilities rose to 3,088 million. This escalation is primarily driven by short-term borrowings, which surged from 267 million in 2014 to 923 million in 2015, representing a notable shift in short-term financing requirements.
Noncurrent Liabilities and Long-Term Debt: Noncurrent liabilities exhibited a gradual downward trend, decreasing from 4,468 million in 2011 to 4,012 million in 2015. Long-term debt remained remarkably consistent throughout the five-year period, hovering around the 3 billion mark, which suggests a stable long-term debt obligation profile despite fluctuations in other liability categories.
Shareholders' Equity and Retained Earnings: A precipitous decline in total shareholders' equity is evident, falling from a peak of 2,253 million in 2012 to 969 million in 2015. This erosion of equity is largely attributable to the reduction in retained earnings, which dropped from 2,286 million in 2012 to 1,150 million in 2015. This trend suggests significant capital distributions or losses that have diminished the equity base.
Overall Balance Sheet Structure: The total balance sheet size contracted from 8,834 million in 2011 to 8,075 million in 2015. The combination of declining shareholders' equity and the sharp increase in short-term debt in 2015 indicates a substantial increase in financial leverage. The proportion of the company financed by equity decreased significantly relative to the proportion financed by liabilities over the analyzed duration.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?