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.

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

US$ in millions

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Accounts payable	221)	179)	142)	185)	187)
Tobacco settlement accruals	2,498)	2,816)	1,819)	1,727)	2,489)
Due to related party	7)	9)	1)	—)	1)
Deferred revenue, related party	66)	33)	32)	48)	42)
Current maturities of long-term debt	501)	506)	450)	—)	60)
Dividends payable on common stock	656)	514)	356)	339)	326)
Payroll and employee benefits	268)	210)	178)	179)	129)
Pension and other postretirement benefits	89)	91)	75)	79)	74)
Marketing and advertising	155)	213)	134)	117)	106)
Excise, franchise and property tax	172)	217)	161)	157)	149)
Tobacco quota buyout	—)	—)	—)	52)	55)
Other	352)	503)	196)	193)	151)
Other current liabilities	1,036)	1,234)	744)	777)	664)
Current liabilities	4,985)	5,291)	3,544)	3,076)	3,769)
Long-term debt, less current maturities	12,664)	16,941)	4,633)	5,099)	5,035)
Long-term deferred income taxes, net	9,607)	10,236)	383)	658)	461)
Long-term retirement benefits, less current portion	1,869)	2,265)	1,997)	1,221)	1,821)
Long-term deferred revenue, related party	39)	—)	—)	—)	—)
Other noncurrent liabilities	220)	239)	117)	181)	214)
Noncurrent liabilities	24,399)	29,681)	7,130)	7,159)	7,531)
Total liabilities	29,384)	34,972)	10,674)	10,235)	11,300)
Common stock	—)	—)	—)	—)	—)
Paid-in capital	18,285)	18,402)	6,200)	6,571)	7,275)
Retained earnings (accumulated deficit)	3,740)	188)	(1,314)	(1,348)	(1,707)
Accumulated other comprehensive loss	(314)	(338)	(364)	(56)	(311)
Shareholders’ equity	21,711)	18,252)	4,522)	5,167)	5,257)
Total liabilities and shareholders’ equity	51,095)	53,224)	15,196)	15,402)	16,557)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

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Balance sheet item	Description	The company
Current liabilities	Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.	Reynolds American Inc. current liabilities increased from 2014 to 2015 but then slightly decreased from 2015 to 2016.
Noncurrent liabilities	Amount of obligation due after one year or beyond the normal operating cycle, if longer.	Reynolds American Inc. noncurrent liabilities increased from 2014 to 2015 but then slightly decreased from 2015 to 2016.
Total liabilities	Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.	Reynolds American Inc. total liabilities increased from 2014 to 2015 but then slightly decreased from 2015 to 2016.
Shareholders’ equity	Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.	Reynolds American Inc. shareholders’ equity increased from 2014 to 2015 and from 2015 to 2016.

Reynolds American Inc. (NYSE:RAI)

Balance Sheet: Liabilities and Stockholders’ Equity