Many General Electric (NYSE:GE) shareholders are happy that Immelt is gone and Flannery is in. Unfortunately, Flannery isn't being handed a well-run ship. Although investors have high hopes for Mr. Fix-it, not everything can be solved quickly. I believe that one such problem is General Electric's pension plans, which were underfunded by $31 billion at the end of 2016. While this is not an emergency, it is a problem that needs to be addressed sooner or later.
Another Word For Debt
While pension obligations are not called "debt," for all practical purposes they function as a form of debt. Instead of paying cash flow to bondholders, General Electric pays the beneficiaries. If you care about how much debt General Electric holds, then you should care about the company's pension deficiency.
