You have been asked to write a term paper on the nature of large corporations. One aspect you are supposed to cover is how corporations ﬁnance their operations. You have found the following long-term liabilities, and related information, in recent corporate balance sheets.
(a) Quixote Corporation (www.quixote.com), a ﬁrm in the transportation safety industry: 7% Convertible Debt Due February 15, 2025—$40,000,000
(b) Hormel Foods Corporation (www.hormelfoods.com), a ﬁrm that manufactures and markets prepared food products: Pension and Post-Retirement Beneﬁts Liability—$440,810,000
(c) Time Warner (www.timewarner.com), a ﬁrm that (among other lines of business) publishes Time, People, and Sports Illustrated: Deferred Revenue (current)—$1,178,000,000, and Deferred Revenue (long-term)—$522,000,000
(d) Target Corporation (www.target.com), a general merchandise and food discount retailer: Capital Lease Obligations—$147,000,000
Begin your report with a brief overview of the nature of liabilities and the general types of long-term liabilities. Next, provide a brief description of the nature and source of each of the long-term liabilities identiﬁed. Include in these descriptions how each liability is related, or likely related if you are unsure, to the given company’s proﬁt-oriented activities.