Cash from Long-Term Debt

Category

Cash Flow

Units

Currency

US-GAAP elements

ProceedsFromIssuanceOfLongTermDebtProceedsFromIssuanceOfSeniorLongTermDebtProceedsFromLongTermLinesOfCredit

Reference

ASC 230, Statement of Cash Flows (financing activities)

Source

Reported in SEC EDGAR filings (US-GAAP XBRL taxonomy)

Cash from long-term debt is the cash a company received during a period from borrowings that, when taken on, were due more than one year out, or beyond the operating cycle if that is longer. Typical sources are bond and note offerings, term loans, and draws on multi-year credit facilities. It is reported as an inflow in the financing section of the cash flow statement.

The classification is based on the debt's maturity when it was issued, not on how much time is left, so a five-year note stays in this category even as it nears repayment.

Under ASC 230, proceeds from issuing bonds, mortgages, notes, and other borrowings are financing inflows, reported separately from repayments. Companies generally tag the line ProceedsFromIssuanceOfLongTermDebt in XBRL. More specific elements exist for particular instruments, including ProceedsFromIssuanceOfSeniorLongTermDebt for senior borrowings and ProceedsFromLongTermLinesOfCredit for draws on revolving facilities with maturities beyond one year. A company may report several of these lines at once, so the long-term total can require adding them together.

The figure is the cash received, which is usually the principal amount less any issue discount. Convertible notes are generally included here as well, though some companies report them on their own line. Long-term debt assumed in an acquisition, or used to finance equipment directly with the seller, is noncash and does not appear. Finance lease obligations are also excluded from debt proceeds; the related principal payments show up later as a separate financing outflow.

Analysts use this line to understand how a company funds large, long-lived commitments. Issuing long-term debt at fixed rates can lock in financing cost, but it raises leverage and future interest expense. Comparing proceeds with repayments of long-term debt shows whether the company is refinancing, adding leverage, or deleveraging. The debt footnote, which lists individual issues with their rates and maturities, provides the detail behind the cash flow total.