 Long-term assets are assets which have a useful life and provide value more than one year into the future. On the classified balance sheet, long-term assets follow the current asset section and include the following subsets, long-term investments, property plant equipment, intangible assets, and other long-term assets. This section includes stocks and bonds that companies have purchased for investment purposes and which it intends to hold for more than a year. It also includes land and buildings that are being held for resale. Property plant and equipment is often the largest section of long-term assets. This section has many common names that you should be aware of like plant assets, fixed assets, and is often abbreviated PP and E. To be classified as a plant asset, an asset must be 1. Tangible, that is capable of being seen and touched. 2. Have a useful service life of more than one year. And 3. Be used in business operations rather than being held for resale. Common plant assets are land, building, machines, tools, and office equipment. They also include a section, also included in this section is a subcategory known as natural resources. Natural resources are unique in that they are supplied by nature such as ore deposits, mineral deposits, oil reserves, gas deposits, and timber stands. All of these are natural resources or sometimes known as wasting assets. They represent inventories of raw materials that can be consumed through extraction or removal from their natural setting like removing oil from the ground. They can only be replaced by acts of nature. Intangible assets have no physical characteristics. They are often legal rights, advantages, or exclusive privilege. Intangible assets generally arise from two sources, exclusive privileges granted by governmental authority or by legal contract, or superior entrepreneurial capacity or management know-how and customer loyalty which is commonly known as goodwill. Some examples of intangible assets include patents, copyrights, franchises, trademarks, and goodwill to name the most common ones. The final category of long-term assets is other long-term assets. This category is for long-term assets that don't fit into the previous categories. Both prepaid expenses and receivables from employees could fall into this category if the duration of the transactions are greater than one year.