Other Current Liabilities

What are other current liabilities?

Other current liabilities is a balance-sheet line that groups short-term obligations a company must pay within 12 months but that are not large or specific enough to merit their own separate line item. It’s a catch-all category for miscellaneous current debts and obligations.

Current liabilities — quick context

Current liabilities are obligations due within one year (e.g., accounts payable, short-term loans, the current portion of long‑term debt). “Other current liabilities” collects the remaining, less material or less frequent items that would otherwise clutter the statement.

Common examples

Items often included under other current liabilities (varies by company and industry):

• Accrued payroll, bonuses, and employee benefits
• Accrued interest and dividends payable
• Current portion of long‑term debt or notes payable
• Short‑term borrowings or commercial paper due within 12 months
• Customer deposits and deferred revenue (short term)
• Taxes payable and other accruals
• Short‑term reserves for warranties, claims, or legal settlements
• Miscellaneous short‑term obligations

Why companies use this category

• Improves readability: prevents the balance sheet from becoming overly long and detailed.
• Materiality: small or infrequent items are aggregated so major line items remain clear.
• Practicality: allows standard presentation while still capturing the company’s short-term obligations.

Significant or material items are typically shown separately to provide appropriate transparency.

Where to find details

Detailed composition of “other current liabilities” is usually disclosed in a company’s annual report or Form 10‑K, commonly in the notes to the financial statements. Footnotes often break down the aggregated amounts into recognizable components.

Special considerations

• Do not confuse this aggregation with off‑balance‑sheet financing, which is disclosed separately in footnotes and receives closer scrutiny because it can affect the apparent financial position.
• Analysts and auditors often review the footnotes to understand what’s included and to assess liquidity and short‑term obligations accurately.

Key takeaways

• “Other current liabilities” groups miscellaneous obligations due within 12 months that aren’t large or specific enough for individual line items.
• Common components include accrued payroll, short‑term borrowings, taxes payable, and deferred revenue.
• Footnote disclosures in the annual report or 10‑K provide the detailed breakdown.
• Aggregation improves readability but significant items should be reported separately for transparency.