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.

RELATED TERMS
  1. Other Long-Term Liabilities

    A balance sheet item that includes obligations which are not ...
  2. Other Current Liabilities

    A balance sheet entry used by companies to group together current ...
  3. Long-Term Liabilities

    In accounting, a section of the balance sheet that lists obligations ...
  4. Total Liabilities

    The aggregate of all debts an individual or company is liable ...
  5. Current Liabilities

    A company's debts or obligations that are due within one year. ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
Related Articles
  1. Investing

    Explaining Long-Term Liability

    A long-term liability is an obligation a company owes a year or more into the future.
  2. Investing

    Understanding Total Liabilities

    Total liabilities are the combined debts an individual or company owes.
  3. Small Business

    What's a Liability?

    A liability is a debt. It is an obligation that arises during the course of business and represents a third-party claim on the company's assets. A liability can arise in a number of different ...
  4. Investing

    Reading The Balance Sheet

    Learn about the components of the statement of financial position and how they relate to each other.
  5. Investing

    Breaking Down The Balance Sheet

    Knowing what the company's financial statements mean will help you to analyze your investments.
  6. Investing

    Explaining Noncurrent Liabilities

    Noncurrent liabilities are financial obligations a company owes a year or more into the future.
  7. Investing

    5 Tips For Reading A Balance Sheet

    If you know how to read it, the balance sheet provides valuable information on a potential investment.
  8. Trading

    Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  9. Investing

    How To Analyze A Company's Financial Position

    Find out how to calculate important ratios and compare them to market value.
RELATED FAQS
  1. What is the difference between an expense and a liability?

    Learn what liabilities and expenses are, which financial statements they are listed on, and the differences between liabilities ... Read Answer >>
  2. On which financial statements does a company report its long-term debt?

    Discover which financial statements are used to report a company’s long-term debt, as well as how a company uses debt to ... Read Answer >>
  3. What kinds of liabilities appear on the balance sheet?

    Learn what current and non-current liabilities are, the difference between the two, and examples of liabilities that a company ... Read Answer >>
  4. What items on the balance sheet are most important in fundamental analysis?

    Read about which balance sheet items are considered most important for fundamental analysis, including cash, current liabilities ... Read Answer >>
  5. How might a company's contingent liabilities affect its share price?

    Discover what contingent liabilities are, and how and to what extent such liabilities may have an impact on a company's share ... Read Answer >>
  6. What kinds of derivatives are types of forward commitments?

    Learn more about what a derivative is, what a forward commitment is and which types of derivative securities have forward ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center