Other Long-Term Liabilities

Definition of 'Other Long-Term Liabilities'


A balance sheet item that includes obligations which are not going to be paid off within the year or operating cycle, but are not included in the "long term liabilities" category. Other long-term liabilities are commonly found directly beneath the long-term liabilities on the balance sheet. They are part of total liabilities, and the entries are deemed to be not important enough to warrant identifying each amount individually.

Investopedia explains 'Other Long-Term Liabilities'


Finding what makes up this entry can be difficult, but sometimes it is included in the footnotes as a table - other times, several notes will be given. Other long-term liabilities might include items such as deferred credits, customers deposits or some estimated tax liabilities. Failing to account for other long-term liabilities may make a company look like it has a stronger financial position than it actually does. That is, while its profits may be strong for a given year, it may have to meet its other long-term liabilities in future years, when profits may not be as strong.



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