Long term liabilities

Long-term Liabilities

Obligations not due for at least one year or operating cycle, including bonds payable, long-term loans, lease obligations, and pension liabilities.

For example, a manufacturing company’s long-term liabilities might include $5 million in bonds payable due in 10 years, $2 million in equipment loans due in 5 years, and $8 million in pension obligations.

Long-term liabilities represent the non-current portion of a company’s financing structure, affecting leverage ratios, cost of capital, and financial flexibility. Their management involves considering interest rates, repayment terms, covenants, and future cash flow capacity. Proper disclosure includes maturity schedules, interest rates, collateral, and significant terms.