Deferred Long-Term Liability Charges

AAA

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).

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Forward Contract

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

    A method used by actuaries to calculate the amount a company ...
  3. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  4. Deferred Income Tax

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

    Traditionally, the exchange of one security for another to change ...
  6. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
Related Articles
  1. 12 Things You Need To Know About Financial ...
    Investing Basics

    12 Things You Need To Know About Financial ...

  2. Breaking Down The Balance Sheet
    Personal Finance

    Breaking Down The Balance Sheet

  3. How To Evaluate A Company's Balance ...
    Investing Basics

    How To Evaluate A Company's Balance ...

  4. Introduction To Fundamental Analysis
    Markets

    Introduction To Fundamental Analysis

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center