Other Long-Term Liabilities

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Other long-term liabilities

Value of leases, future employee benefits, deferred taxes, and other obligations not requiring interest payments that must be paid over a period of more than one year.

On a balance sheet, items that do not currently require interest payments, but will require payments in the future for a period of longer than one year. Common examples of other long-term liabilities include deferred taxes, future employee benefits, such as pensions for employees currently working, and lease payments. 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, and profits may not be as strong, even if revenue remains the same.

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