Other current liabilities are financial obligations that a company expects to pay off within one year and that do not fit into standard current liability categories. These obligations might include income taxes, dividends payable, customer deposits, or accrued expenses that haven't yet been paid.
In a more detailed context, other current liabilities are an amalgamation of debts and obligations that a company must pay within the next 12 months, but that don't neatly fit into typical liability categories, such as accounts payable or short-term debt.
They are shown on a company’s balance sheet, which is a financial statement that provides a snapshot of a company’s financial health at a specific point in time. Other current liabilities are usually listed in the liabilities section under current liabilities.
It's important to note that the composition of other current liabilities can vary widely from one company to another, depending on the nature of the business and the accounting methods used. For this reason, investors and analysts often dig into the notes of a company's financial statements to understand what constitutes their other current liabilities.
For Ford, other current liabilities could include accrued warranty expenses, interest payable on short-term loans, or income taxes payable.
Adobe's other current liabilities might include things like unearned revenue from subscriptions that have been paid for but not yet fully delivered, or employee-related liabilities for things like unpaid vacation time.
For Macy's, other current liabilities might include customer deposits for custom orders, accrued rent and utilities, and dividends declared but not yet paid.