What are long-term liabilities?
Long-term liabilities are financial obligations on a company’s balance sheet that are due to be paid more than one year (or one operating cycle) after the balance-sheet date. Common long-term liabilities include long-term debt, mortgage and lease obligations, pension liabilities, deferred tax liabilities and convertible notes that mature beyond one year.
Long-term liabilities are typical funding sources for capital-intensive operations and are scrutinised in credit analysis for debt-service coverage, refinancing risk and covenant compliance.