GM

[classicman]

It was a yes or no question. From your answer, I'm forced to assume a yes answer. However, I find it very difficult to believe.

[tw]

Originally Posted by classicman

However, I find it very difficult to believe.

Pension and benefits are a cost to the company when the worker is working. Pension and benefits should not be a cost to the company when a worker is retires. So your answer is both "yes" and "no".

When a company is mortgaging its future to protect bean counter management, then pension and benefits remain a cost to the company years later. No 70 Horsepower per liter engines in all cars for 20 years. Cars that still required wheel alignment. Examples that say GM had no interest in honest accounting.

Any expense that remains unrealized for years is a profit to the company today. So now the answer is "yes". GM retired employees remain an expense to GM. GM did what was also situation normal on Wall Street.

You asked a question that is intentionally confusing. How many more "yes" and "nos" apply? Welcome to what was made acceptable in the 'new American finance' standards. Welcome to why finance people must be so heavily regulated. Welcome to the resulting melt down that happened 17 years later because GM management refused to address their management problems in 1991.

GM invented legacy costs without admitting to mafioso objectives. Screw the product; only reap profits. Those who only want “yes and no” answers were easily sold GM lies - ie legacy costs. GM management got even more bonuses for mortgaging America's future for personal gain. More “yes and no” answers are for those who ignore details of reality. Answer to your question are multiple "yes" and "no".

[xoxoxoBruce]

Originally Posted by classicman

It was a yes or no question. From your answer, I'm forced to assume a yes answer. However, I find it very difficult to believe.

It's a qualified yes. GM did the same thing with the pension fund, that the Federal Government did with the Social Security Fund.

The deal was, that part of the huge profits they were making would go into the pension fund, and that would pay the pensions as they came due, with no drain on GM. But like the Feds, they stole the fucking money, so now it does impact GM.