When a company's balance sheet includes a long-term pension liability, the company's pension plan is under-funded.

Name: When a company's balance sheet includes a long-term pension liability, the company's pension plan is under-funded.
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If a company's balance sheet shows a long-term pension liability, it means that the present value of its pension obligations exceeds the value of the assets set aside to fund those obligations. This indicates that the pension plan is under-funded.

When a Company's Balance Sheet Includes a Long-Term Pension Liability