LT Borrowings
LongTermDebtNoncurrentLongTermNotesPayableLongTermLineOfCreditLongTermLoansPayableLong-term borrowings are the interest-bearing money a company has borrowed that is not due for repayment until more than a year after the balance-sheet date. They include bonds and notes, term loans from banks, drawn amounts under revolving credit facilities classified as long-term, mortgages, and similar obligations.
The figure is the noncurrent portion only. Principal falling due within the next year is moved into current liabilities as current maturities of long-term debt. Lease obligations are usually excluded from borrowings and counted separately, which is the main difference between this figure and a broader long-term debt total.
Regulation S-X Rule 5-02.22 requires each issue or type of long-term obligation to be described separately, on the balance sheet or in a note, including its interest rate, maturity date or serial maturities, priority, any contingent payment terms, and conversion features. That is why a debt footnote typically lists each bond and loan with its coupon and maturity. In XBRL filings, the common tag for the noncurrent balance is LongTermDebtNoncurrent, which the SEC taxonomy notes excludes capital lease obligations. Companies that itemize borrowings may use LongTermNotesPayable, LongTermLoansPayable, or LongTermLineOfCredit.
Borrowings are reported at amortized cost, net of any unamortized discount or premium and debt issuance costs, not at market value. A company can also classify short-term debt as long-term if it has both the intent and a qualifying agreement to refinance it beyond a year. Fair value of the debt is disclosed in a footnote and can differ materially from the carrying amount when interest rates have moved.
Analysts use long-term borrowings to judge leverage and refinancing risk. The maturity schedule in the debt footnote shows how much has to be repaid or refinanced each year, and ratios such as long-term debt to equity and to capital show how heavily the company relies on borrowed money. Adding finance lease obligations to long-term borrowings gives long-term debt, and adding short-term borrowings and current maturities gives total debt.
A: Long-term borrowings usually cover bonds, notes, and loans only. Long-term debt is often broader, adding long-term finance lease obligations. Definitions vary across companies and data providers, so check the components.
A: No. The portion of principal due within the next twelve months is reclassified to current liabilities and counted in short-term debt.
A: Borrowings are recorded net of unamortized discounts, premiums, and issuance costs. Those amounts are amortized into interest expense over the life of the debt, so the carrying amount gradually moves toward face value.
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