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.

Air Products & Chemicals Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Trade creditors	546,200)	528,200)	924,600)	659,500)	676,100)	638,900)
Contract liabilities	313,800)	247,400)	156,600)	438,900)	376,100)	195,300)
Dividends payable	296,200)	255,700)	241,500)	207,500)	186,900)	174,400)
Accrued payroll and employee benefits	196,800)	186,100)	201,400)	187,100)	262,600)	247,800)
Obligation for future contribution to an equity affiliate	94,400)	94,400)	—)	—)	—)	—)
Current operating lease liabilities	70,700)	—)	—)	—)	—)	—)
Derivative instruments	50,900)	91,200)	54,200)	95,900)	74,000)	114,600)
Pension and postretirement benefits	17,900)	26,000)	34,100)	22,600)	35,500)	26,100)
Other	246,300)	206,700)	205,400)	202,800)	199,400)	265,300)
Payables and accrued liabilities	1,833,200)	1,635,700)	1,817,800)	1,814,300)	1,810,600)	1,662,400)
Accrued income taxes	105,800)	86,600)	59,600)	98,600)	146,600)	55,800)
Short-term borrowings	7,700)	58,200)	54,300)	144,000)	935,800)	1,494,300)
Current portion of long-term debt	470,000)	40,400)	406,600)	416,400)	371,300)	435,600)
Current liabilities of discontinued operations	—)	—)	—)	15,700)	19,000)	—)
Current liabilities	2,416,700)	1,820,900)	2,338,300)	2,489,000)	3,283,300)	3,648,100)
Long-term debt, excluding current portion	7,132,900)	2,907,300)	2,967,400)	3,402,400)	4,918,100)	3,949,100)
Long-term debt, related party	297,200)	320,100)	384,300)	—)	—)	—)
Pension benefits	614,200)	651,200)	417,200)	703,800)	1,186,800)	860,000)
Postretirement benefits	31,400)	36,000)	47,000)	57,000)	74,900)	76,500)
Noncurrent operating lease liabilities	335,800)	—)	—)	—)	—)	—)
Asset retirement obligations	236,200)	201,900)	189,500)	144,000)	116,100)	106,500)
Long-term accrued income taxes related to U.S. tax reform	190,900)	215,400)	184,400)	—)	—)	—)
Contingencies related to uncertain tax positions	138,600)	123,300)	113,200)	130,600)	95,600)	91,100)
Environmental liabilities	73,600)	59,100)	64,600)	72,300)	70,300)	71,600)
Contract liabilities	57,900)	49,200)	58,200)	39,000)	43,800)	135,100)
Derivative instruments	34,700)	21,200)	39,900)	36,000)	21,800)	10,600)
Noncurrent customer liability	—)	118,000)	92,400)	62,600)	—)	—)
Obligation for future contribution to an equity affiliate	—)	—)	94,400)	94,400)	94,400)	67,500)
Obligations associated with Energy-from-Waste	—)	57,800)	63,300)	65,300)	—)	—)
Other	202,700)	179,300)	172,800)	206,900)	169,700)	137,600)
Other noncurrent liabilities	1,916,000)	1,712,400)	1,536,900)	1,611,900)	1,873,400)	1,556,500)
Deferred income taxes	962,600)	793,800)	775,100)	778,400)	767,100)	903,300)
Noncurrent liabilities	10,308,700)	5,733,600)	5,663,700)	5,792,700)	7,558,600)	6,408,900)
Total liabilities	12,725,400)	7,554,500)	8,002,000)	8,281,700)	10,841,900)	10,057,000)
Common stock, par value $1 per share	249,400)	249,400)	249,400)	249,400)	249,400)	249,400)
Capital in excess of par value	1,094,800)	1,070,900)	1,029,300)	1,001,100)	970,000)	904,700)
Retained earnings	14,875,700)	14,138,400)	13,409,900)	12,846,600)	10,475,500)	10,580,400)
Accumulated other comprehensive loss	(2,140,100)	(2,375,600)	(1,741,900)	(1,847,400)	(2,388,300)	(2,125,900)
Treasury stock, at cost	(2,000,000)	(2,029,500)	(2,089,200)	(2,163,500)	(2,227,000)	(2,359,600)
Total Air Products shareholders’ equity	12,079,800)	11,053,600)	10,857,500)	10,086,200)	7,079,600)	7,249,000)
Noncontrolling interests	363,300)	334,700)	318,800)	99,300)	133,800)	132,100)
Total equity	12,443,100)	11,388,300)	11,176,300)	10,185,500)	7,213,400)	7,381,100)
Total liabilities and equity	25,168,500)	18,942,800)	19,178,300)	18,467,200)	18,055,300)	17,438,100)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

Trade Creditors: The trade creditors showed moderate fluctuation, peaking at US$924.6 million in 2018, followed by a significant drop in 2019 to US$528.2 million, and then a slight increase in 2020.
Contract Liabilities: Contract liabilities displayed an irregular pattern with a marked increase in 2017, a steep decline in 2018, and a recovery trend in subsequent years.
Dividends Payable: There was a consistent upward trend in dividends payable from US$174.4 million in 2015 to US$296.2 million in 2020, indicating rising dividend commitments.
Accrued Payroll and Employee Benefits: This liability decreased notably from 2016 to 2017, recovered somewhat in following years but remained below initial levels, suggesting a potential restructuring or cost control in payroll obligations.
Derivative Instruments (Current and Noncurrent): Current derivative instruments liabilities fell sharply from 2015 to 2020, while noncurrent derivatives increased moderately but remained relatively small in value.
Pension and Postretirement Benefits: Pension benefits liabilities peaked in 2016 at US$1.1868 billion then declined significantly by 2018, with some increase afterward. Postretirement benefits consistently declined over the period, reflecting ongoing reductions or settlements.
Payables and Accrued Liabilities: This category remained stable between 2015 and 2018, then declined in 2019 before rising sharply again in 2020 to US$1.83 billion.
Accrued Income Taxes: Accrued income taxes showed volatility, peaking in 2016 and dipping in 2018, followed by moderate increases in 2019 and 2020.
Short-term Borrowings: There was a significant reduction in short-term borrowings from 2015 (US$1.49 billion) to 2020 (US$7.7 million), indicating improved short-term liquidity or debt restructuring.
Current Portion of Long-term Debt: Values fluctuated without a clear trend, notably dropping sharply in 2019 and rebounding in 2020.
Current Liabilities: Current liabilities decreased substantially from 2015 to 2019, suggesting improved working capital management, but rose significantly again in 2020.
Long-term Debt, Excluding Current Portion: This liability showed a major spike in 2020 to over US$7.13 billion, more than doubling from prior years, indicating substantial long-term borrowing or refinancing activity.
Long-term Debt, Related Party: Related party long-term debt appeared only after 2017, showing a decreasing trend from US$384.3 million in 2018 to US$297.2 million in 2020.
Asset Retirement Obligations: These obligations steadily increased over the period, reaching US$236.2 million in 2020, which may reflect growing environmental commitments or asset retirement costs.
Contingencies and Environmental Liabilities: Contingencies related to uncertain tax positions generally increased, while environmental liabilities fluctuated slightly but remained relatively stable overall.
Other Noncurrent Liabilities: Other long-term liabilities rose steadily, reaching nearly US$1.92 billion in 2020, contributing significantly to total noncurrent liabilities.
Deferred Income Taxes: Deferred income taxes declined during the initial years but rebounded strongly by 2020, reaching a high of US$962.6 million.
Noncurrent Liabilities: Noncurrent liabilities decreased between 2016 and 2019, then surged sharply in 2020 to over US$10.3 billion, largely driven by the increase in long-term debt.
Total Liabilities: Total liabilities peaked in 2016 at US$10.84 billion, then declined steadily until 2019, followed by a substantial increase to US$12.73 billion in 2020, indicating a significant rise in the company’s obligations.
Equity Components: Common stock remained constant, while capital in excess of par value exhibited steady growth, reflecting additional paid-in capital increases. Retained earnings grew consistently, indicating profitability and earnings retention.
Accumulated Other Comprehensive Loss: This loss category fluctuated during the years, generally remaining negative and showing considerable variation, which could reflect changes in unrealized gains or losses on financial instruments or pension adjustments.
Treasury Stock: The cost of treasury stock declined steadily, showing ongoing repurchases or changes in treasury stock valuation.
Total Shareholders’ Equity and Total Equity: Both metrics showed growth over the period, with equity increasing from approximately US$7.24 billion in 2015 to US$12.44 billion in 2020, marking strengthened ownership interests despite fluctuations in other comprehensive loss.
Total Liabilities and Equity: The combined total rose over time, with a marked increase in 2020 to over US$25 billion, aligning with the sharp rises in liabilities and equity, indicating substantial growth in the company’s balance sheet size.

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Air Products & Chemicals Inc. (NYSE:APD)

Balance Sheet: Liabilities and Stockholders’ Equity