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.

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

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable trade	237,900)	196,000)	163,300)	102,300)	75,500)
Accrued tax, audit, and legal fees	44,800)	40,700)	15,300)	14,000)	11,700)
Accrued rebates	556,400)	260,500)	247,000)	93,300)	36,100)
Accrued warranty	12,800)	12,900)	11,700)	7,400)	6,800)
Contractual obligations	—)	15,000)	—)	—)	—)
Short-term finance lease liabilities	4,200)	3,300)	8,800)	600)	—)
Other accrued liabilities	45,700)	44,600)	35,000)	38,800)	17,000)
Accounts payable and accrued liabilities	901,800)	573,000)	481,100)	256,400)	147,100)
Accrued wages, bonus and taxes	96,800)	91,800)	87,700)	—)	—)
Other accrued employee benefits	37,500)	33,400)	26,600)	88,500)	72,400)
Accrued payroll and related expenses	134,300)	125,200)	114,300)	88,500)	72,400)
Current portion of long-term senior convertible notes	772,600)	—)	—)	—)	—)
Short-term operating lease liabilities	20,500)	20,500)	16,500)	13,600)	—)
Deferred revenue	10,100)	2,100)	2,200)	1,700)	2,900)
Current liabilities	1,839,300)	720,800)	614,100)	360,200)	222,400)
Long-term senior convertible notes	1,197,700)	1,702,700)	1,667,200)	1,059,700)	1,010,300)
Long-term operating lease liabilities	94,600)	98,600)	101,800)	72,400)	—)
Long-term finance lease liabilities	59,600)	57,000)	54,000)	14,400)	7,300)
Deferred revenue, long-term	19,000)	16,100)	—)	—)	—)
Contractual obligations	—)	—)	12,600)	—)	—)
Deferred tax liabilities	4,900)	5,900)	—)	—)	—)
Other tax liabilities	32,700)	2,800)	—)	—)	—)
Deferred rent	—)	—)	—)	—)	9,400)
Other liabilities	12,100)	8,200)	14,300)	5,700)	3,300)
Other long-term liabilities	128,300)	90,000)	80,900)	20,100)	20,000)
Long-term liabilities	1,420,600)	1,891,300)	1,849,900)	1,152,200)	1,030,300)
Total liabilities	3,259,900)	2,612,100)	2,464,000)	1,512,400)	1,252,700)
Preferred stock, $0.001 par value; no shares issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.001 par value	400)	100)	100)	100)	100)
Additional paid-in capital	2,258,100)	2,504,500)	2,125,300)	1,675,900)	1,560,600)
Accumulated other comprehensive income (loss)	(11,600)	500)	3,200)	2,300)	1,500)
Retained earnings (accumulated deficit)	479,900)	(47,400)	(202,100)	(695,700)	(798,900)
Treasury stock, at cost	(595,000)	(206,200)	(100,000)	(100,000)	(100,000)
Stockholders’ equity	2,131,800)	2,251,500)	1,826,500)	882,600)	663,300)
Total liabilities and stockholders’ equity	5,391,700)	4,863,600)	4,290,500)	2,395,000)	1,916,000)

Based on: 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), 10-K (reporting date: 2018-12-31).

Liabilities Overview

Total liabilities showed a consistent upward trend over the observed period, increasing from approximately 1.25 billion USD in 2018 to over 3.25 billion USD in 2022. This represents a significant growth, particularly notable between 2021 and 2022.

Current Liabilities

Current liabilities increased substantially, from around 222 million USD in 2018 to nearly 1.84 billion USD by the end of 2022. Major contributors included accounts payable and accrued liabilities, which rose sharply from 147 million USD in 2018 to over 900 million USD in 2022, and accrued rebates, which exhibited an especially pronounced increase from 36 million USD to over 556 million USD during the same period.

Accrued tax, audit, and legal fees more than tripled, moving from 11.7 million USD in 2018 to 44.8 million USD in 2022. Additionally, accrued wages, bonuses, and taxes emerged as a new significant liability, starting to be reported from 2020 onward and reaching nearly 97 million USD in 2022.

Long-term Liabilities

Long-term liabilities displayed growth up until 2021, rising from approximately 1.03 billion USD in 2018 to nearly 1.89 billion USD in 2021, followed by a notable decline to about 1.42 billion USD in 2022. The long-term senior convertible notes, which initially grew from 1.01 billion USD in 2018 to a peak of 1.7 billion USD in 2021, saw a decline to approximately 1.2 billion USD in 2022.

Other long-term liabilities increased steadily from 20 million USD in 2018 to 128 million USD in 2022. Long-term finance lease liabilities increased markedly from 7.3 million USD in 2018 to almost 60 million USD by the end of the period, while long-term operating lease liabilities slightly decreased after peaking in 2020.

Stockholders’ Equity and Related Accounts

Stockholders' equity experienced substantial growth from 663 million USD in 2018 to a peak of 2.25 billion USD in 2021, before slightly declining to about 2.13 billion USD in 2022. This growth was supported by an increase in additional paid-in capital, which nearly doubled from 1.56 billion USD in 2018 to 2.5 billion USD in 2021, then decreased to 2.26 billion USD in 2022.

Retained earnings showed a strong positive turnaround, moving from a significant accumulated deficit of nearly 799 million USD in 2018 to a positive balance of 480 million USD by 2022, indicating improving profitability or cumulative earnings over time.

Treasury stock, at cost, showed a marked increase in negative value, expanding from -100 million USD in 2018 to -595 million USD in 2022, indicating significant stock repurchases during this period.

Accumulated other comprehensive income (loss) shifted into a negative balance in 2022, moving from a positive 1.5 million USD in 2018 to a loss of 11.6 million USD, which may reflect adverse changes in foreign currency translation or other comprehensive income items.

Other Notable Observations

Deferred revenue amounts remained relatively low compared to other liabilities but increased sharply in 2022, especially in the current portion, rising from 2.1 million USD in 2021 to 10.1 million USD in 2022.

Certain liability categories such as contractual obligations, deferred tax liabilities, and other tax liabilities showed sporadic recording and fluctuations, with other tax liabilities rising notably in 2022 to 32.7 million USD from negligible amounts in prior years.

The introduction and subsequent increase of current portion of long-term senior convertible notes to 772.6 million USD in 2022 indicate a reclassification likely due to approaching maturities or changes in debt structure.

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DexCom Inc. (NASDAQ:DXCM)

Balance Sheet: Liabilities and Stockholders’ Equity