Long-Term Debt
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Definition of 'Long-Term Debt'Loans and financial obligations lasting over one year. Long-term debt for a company would include any financing or leasing obligations that are to come due in a greater than 12-month period. Such obligations would include company bond issues or long-term leases that have been capitalized on a firm's balance sheet.In the U.K., long-term debts are known as "long-term loans." |
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Investopedia explains 'Long-Term Debt'Bank loans and financing agreements, in addition to bonds and notes that have maturities greater than one year, would be considered long-term debt. Other securities such as repos and commercial papers would not be long-term debt, because their maturities are typically shorter than one year. |
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