Name: Allergan PLC (NYSE:AGN) | 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.

Allergan PLC, consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Accrued third-party rebates	2,001,800)	1,832,100)	1,713,700)	1,595,500)	1,281,600)
Litigation-related reserves and legal fees	1,250,700)	92,000)	78,300)	101,100)	213,500)
Accrued payroll and related benefits	830,300)	694,300)	635,600)	543,500)	409,700)
Accrued returns and other allowances	596,700)	527,800)	466,200)	295,900)	288,400)
Accrued R&D expenditures	184,800)	215,500)	165,900)	154,000)	384,100)
Interest payable	189,500)	191,400)	245,900)	294,200)	312,000)
Royalties payable	216,900)	155,100)	189,200)	146,600)	126,900)
Accrued pharmaceutical fees	125,900)	145,300)	186,400)	221,300)	162,200)
Accrued severance, retention and other shutdown costs	12,700)	71,600)	132,800)	86,200)	110,400)
Accrued non-provision taxes	64,600)	68,500)	76,500)	55,000)	100,300)
Accrued selling and marketing expenditures	61,300)	61,100)	53,000)	95,900)	127,200)
Current portion of contingent consideration obligations	12,100)	8,300)	56,200)	511,000)	79,900)
Dividends payable	1,100)	1,400)	24,600)	23,200)	23,900)
Other accrued expenses	409,900)	373,000)	1,192,600)	670,700)	360,000)
Accrued expenses	5,958,300)	4,437,400)	5,216,900)	4,794,100)	3,980,100)
Accounts payable	390,400)	349,800)	324,500)	224,900)	369,400)
Accounts payable and accrued expenses	6,348,700)	4,787,200)	5,541,400)	5,019,000)	4,349,500)
Income taxes payable	65,100)	72,400)	74,900)	57,800)	54,200)
Current portion of long-term debt and capital leases	4,532,500)	868,300)	4,231,800)	2,797,900)	2,432,800)
Current portion of lease liability, operating	124,400)	—)	—)	—)	—)
Current liabilities held for sale	—)	—)	—)	—)	1,491,800)
Current liabilities	11,070,700)	5,727,900)	9,848,100)	7,874,700)	8,328,300)
Long-term debt and capital leases, excluding current portion	18,116,500)	22,929,400)	25,843,500)	29,970,800)	40,293,400)
Lease liability, operating, excluding current portion	446,100)	—)	—)	—)	—)
Acquisition related contingent consideration liabilities	377,300)	336,300)	420,700)	661,100)	788,100)
Long-term pension and post retirement liability	144,100)	166,500)	162,700)	201,600)	222,100)
Legacy Allergan deferred executive compensation	89,200)	90,800)	113,800)	111,700)	117,900)
Accrued R&D milestone	75,000)	75,000)	—)	—)	—)
Long-term contractual obligations	—)	43,200)	45,200)	25,300)	26,400)
Deferred revenue	26,600)	36,100)	37,900)	15,700)	18,200)
Product warranties	29,200)	27,900)	28,700)	28,100)	28,400)
Long-term severance and restructuring liabilities	10,800)	14,200)	53,100)	22,000)	34,900)
Other long-term liabilities	48,700)	92,000)	24,800)	19,500)	26,000)
Other long-term liabilities	800,900)	882,000)	886,900)	1,085,000)	1,262,000)
Long-term liabilities held for sale	—)	—)	—)	—)	580,100)
Other taxes payable	1,704,800)	1,615,500)	1,573,900)	886,200)	801,900)
Deferred tax liabilities	4,363,700)	5,501,800)	6,352,400)	12,969,100)	7,985,700)
Long-term liabilities	25,432,000)	30,928,700)	34,656,700)	44,911,100)	50,923,100)
Total liabilities	36,502,700)	36,656,600)	44,504,800)	52,785,800)	59,251,400)
Preferred shares, $0.0001 par value per share	—)	—)	4,929,700)	4,929,700)	4,929,700)
Ordinary shares; $0.0001 par value per share	—)	—)	—)	—)	—)
Additional paid-in capital	55,974,900)	56,510,000)	54,013,500)	53,958,900)	68,508,300)
Retained earnings	991,500)	7,258,900)	12,957,200)	18,342,500)	3,647,500)
Accumulated other comprehensive income (loss)	1,207,200)	1,345,200)	1,920,700)	(1,038,400)	(494,100)
Shareholders’ equity	58,173,600)	65,114,100)	73,821,100)	76,192,700)	76,591,400)
Noncontrolling interest	22,800)	16,900)	16,000)	7,800)	(2,100)
Total equity	58,196,400)	65,131,000)	73,837,100)	76,200,500)	76,589,300)
Total liabilities and equity	94,699,100)	101,787,600)	118,341,900)	128,986,300)	135,840,700)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

The financial position of the entity is characterized by a substantial contraction in both total liabilities and total equity over the five-year period from 2015 to 2019. Total liabilities and equity decreased from 135.84 billion US$ to 94.70 billion US$, indicating a significant reduction in the overall scale of the balance sheet.

Debt and Long-Term Liability Trends: A consistent deleveraging strategy is evident in the long-term debt profile. Long-term debt and capital leases, excluding the current portion, declined steadily from 40.29 billion US$ in 2015 to 18.12 billion US$ in 2019. This downward trajectory contributed heavily to the overall reduction in long-term liabilities, which fell from 50.92 billion US$ to 25.43 billion US$ over the period. Additionally, deferred tax liabilities showed a marked decrease, falling from 7.99 billion US$ in 2015 to 4.36 billion US$ in 2019.
Current Liability Volatility: Unlike long-term obligations, current liabilities exhibited significant fluctuation. After reaching a low of 5.73 billion US$ in 2018, current liabilities spiked to 11.07 billion US$ in 2019. This increase was primarily driven by a surge in the current portion of long-term debt and capital leases, which rose to 4.53 billion US$ in 2019, and a rise in accrued expenses to 5.96 billion US$. Accrued third-party rebates also showed a steady upward trend, increasing from 1.28 billion US$ in 2015 to 2.00 billion US$ in 2019.
Equity and Retained Earnings Analysis: Total equity experienced a downward trend, decreasing from 76.59 billion US$ in 2015 to 58.20 billion US$ in 2019. This erosion is largely attributable to declines in additional paid-in capital, which fell from 68.51 billion US$ to 55.97 billion US$. Retained earnings showed extreme volatility, peaking at 18.34 billion US$ in 2016 before declining sharply to 991.5 million US$ by 2019, suggesting significant distributions or losses during the latter part of the period.
Risk and Contingent Obligations: A notable increase in risk provisioning is observed in litigation-related reserves and legal fees, which escalated from 92 million US$ in 2018 to 1.25 billion US$ in 2019. This represents a sharp departure from the relatively stable and lower levels maintained between 2016 and 2018. Conversely, acquisition-related contingent consideration liabilities decreased from 788.1 million US$ in 2015 to 377.3 million US$ in 2019, indicating the resolution or expiration of previous acquisition terms.

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