Deferred Long-Term Liability Charges


DEFINITION of 'Deferred Long-Term Liability Charges'

A collection of future company liabilities that will typically be summed up and shown as one line item on the balance sheet. The charges are most often made up of deferred-tax liabilities that are to be paid more than one year in the future; depending on the company, they can also be comprised of forward contract obligations (like, swap contracts or derivative products).

BREAKING DOWN 'Deferred Long-Term Liability Charges'

To get clarity on these charges, read the attached footnotes or other comments that appear on the official earnings statements as filed with the SEC. This figure should stay relatively constant from year to year; and, as such, investors should be wary if this figure is rising significantly.

  1. Swap

    A derivative contract through which two parties exchange financial ...
  2. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  3. Forward Contract

    A customized contract between two parties to buy or sell an asset ...
  4. Actuarial Cost Method

    A method used by actuaries to calculate the amount a company ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  6. Deferred Income Tax

    A liability recorded on the balance sheet that results from income ...
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