A short-term obligation can be excluded from current liabilities if the company intends to refinance it on a long-term basis and demonstrates the ability to consummate the refinancing.

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This is known as the "long-term debt exclusion" and is allowed under GAAP (Generally Accepted Accounting Principles) if certain criteria are met. The purpose of this exclusion is to reflect a more accurate picture of a company's long-term debt obligations, as opposed to short-term obligations that are intended to be refinanced.

A Short-Term Obligation Can Be Excluded from Current Liabilities If