-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F8RyOp/ixFDnOmJxtcVrPLNHZNknIXZ1KfYowmqWLSzbqPO/atXnpXfOF2ywn4zW PtNn3YKd1OuOys9aTfnw0g== 0001036050-97-000118.txt : 19970421 0001036050-97-000118.hdr.sgml : 19970421 ACCESSION NUMBER: 0001036050-97-000118 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970418 SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: BELL ATLANTIC CORP CENTRAL INDEX KEY: 0000732712 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 232259884 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08606 FILM NUMBER: 97583322 BUSINESS ADDRESS: STREET 1: 1717 ARCH ST 47W CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2159636000 MAIL ADDRESS: STREET 1: 1717 ARCH ST 47TH FL STREET 2: 1717 ARCH ST 47TH FL CITY: PHILADELPHIA STATE: PA ZIP: 19103 10-K/A 1 FORM 10-K/A COMMISSION FILE NO. 1-8606 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K/A AMENDMENT TO APPLICATION OR REPORT FILED PURSUANT TO SECTION 12, 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 BELL ATLANTIC CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER) AMENDMENT NO. 1 The undersigned registrant hereby amends the following items, financial statements, exhibits or other portions of its Annual Report on Form 10-K for the fiscal year ended December 31, 1996 as set forth in the pages attached hereto: Exhibit 99a Annual Report on Form 11-K for the Bell Atlantic Savings Plan for Salaried Employees for the year ended December 31, 1996. Exhibit 99b Annual Report on Form 11-K for the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) for the year ended December 31, 1996. PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS AMENDMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED. Bell Atlantic Corporation By /s/ William O. Albertini ----------------------------------- WILLIAM O. ALBERTINI (Executive Vice President andChief Financial Officer) April 18, 1997 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- EX-99.A 2 SALARIED SAVINGS PLAN COMMISSION FILE NO. 1-8606 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K (MARK ONE) [X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996 OR [_] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-8606 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES (FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF THE ISSUER NAMED BELOW) BELL ATLANTIC CORPORATION 1717 ARCH STREET PHILADELPHIA, PENNSYLVANIA 19103 (NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES FINANCIAL STATEMENTS DECEMBER 31, 1996 AND 1995 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES INDEX TO FINANCIAL STATEMENTS AND EXHIBITS
FINANCIAL STATEMENTS: PAGE(S) - --------------------- ------- Report of Independent Accountants............................... 2 Financial Statements: Statements of Net Assets Available for Plan Benefits at Decem- ber 31, 1996 and 1995........................................ 3-4 Statements of Changes in Net Assets Available for Plan Bene- fits for the years ended December 31, 1996 and 1995.......... 5-6 Notes to Financial Statements................................. 7-13 Signature....................................................... 14 Bell Atlantic Master Savings Trust Schedule of Investments--De- cember 31, 1996................................................ S1-S4 EXHIBIT: EXHIBIT NUMBER - -------- -------------- Consent of Independent Accountants.............................. 24
UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF APRIL 16, 1997 1 REPORT OF INDEPENDENT ACCOUNTANTS Vice President--Treasurer Bell Atlantic Corporation: We have audited the accompanying statements of net assets available for plan benefits of the Bell Atlantic Savings Plan for Salaried Employees (the "Plan") as of December 31, 1996 and 1995, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements and the accompanying schedule are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and the accompanying schedule based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 1996 and 1995, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of investments as of December 31, 1996 on pages S1 to S4 is presented for the purpose of complying with the Securities and Exchange Commission's rules and is not a required part of the basic financial statements. The fund information in the statements of net assets available for plan benefits and the statements of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The schedule of investments and fund information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 10, 1997 2 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1996 (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED ----------------------------------------------------------------------------- -------------------- SHORT- U.S. TERM BOND INTERNATIONAL BELL ESOP BELL ATLANTIC GOVERNMENT FIXED MARKET U.S. EQUITY EQUITY ATLANTIC UNALLOCATED SHARES MONEY MARKET INCOME INDEX INDEX INDEX LOAN SHARES SHARES FUND FUND FUND* FUND FUND FUND FUND FUND FUND ASSETS: ------------- ------------ -------- ------- ----------- ------------- ------- -------- ----------- Allocated share of Master Trust net investments (Note 4)............ $754,487 $87,923 $505,766 $41,859 $425,940 $81,758 $41,746 $366,073 $293,081 Allocations and contributions receivable.......... 1,245 28 53 19 281 62 -- 1,894 -- Fund, plan and other transfers receivable--net..... -- 498 -- 180 7,288 1,723 663 -- -- Prepaid expenses.... -- -- -- -- -- -- -- -- 476 -------- ------- -------- ------- -------- ------- ------- -------- -------- Total Assets.... 755,732 88,449 505,819 42,058 433,509 83,543 42,409 367,967 293,557 -------- ------- -------- ------- -------- ------- ------- -------- -------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- -- 270,150 Interest payable.... -- -- -- -- -- -- -- -- 10,981 Fund, plan and other transfers payable--net........ 14,433 -- 3,618 -- -- -- -- 535 -- Administrative expenses payable.... 163 67 367 41 221 14 -- 81 17 -------- ------- -------- ------- -------- ------- ------- -------- -------- Total Liabili- ties............ 14,596 67 3,985 41 221 14 -- 616 281,148 -------- ------- -------- ------- -------- ------- ------- -------- -------- Net assets available for Plan benefits (Note 3)............ $741,136 $88,382 $501,834 $42,017 $433,288 $83,529 $42,409 $367,351 $ 12,409 ======== ======= ======== ======= ======== ======= ======= ======== ======== TOTAL ASSETS: ---------- Allocated share of Master Trust net investments (Note 4)............ $2,598,633 Allocations and contributions receivable.......... 3,582 Fund, plan and other transfers receivable--net..... 10,352 Prepaid expenses.... 476 ---------- Total Assets.... 2,613,043 ---------- LIABILITIES: Notes payable (Note 5).................. 270,150 Interest payable.... 10,981 Fund, plan and other transfers payable--net........ 18,586 Administrative expenses payable.... 971 ---------- Total Liabili- ties............ 300,688 ---------- Net assets available for Plan benefits (Note 3)............ $2,312,355 ==========
* Formerly Interest Income Fund. See notes to financial statements. 3 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1995 (DOLLARS IN THOUSANDS)
PARTICIPANT DIRECTED NON-PARTICIPANT DIRECTED -------------------------------------------------------------------------- ------------------------- U.S. BOND U.S. INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST MARKET EQUITY EQUITY BELL ATLANTIC UNALLOCATED SHARES MONEY MARKET INCOME INDEX INDEX INDEX LOAN SHARES SHARES FUND FUND FUND FUND FUND FUND FUND FUND FUND ASSETS: ------------- ------------ -------- ------- -------- ------------- ------- ------------- ----------- Allocated share of Master Trust net investments (Note 4)............ $848,769 $90,520 $575,118 $43,659 $330,082 $62,291 $45,179 $312,522 $361,505 Allocations and contributions receivable.......... 1,133 1 11 17 159 11 -- 4,340 -- Fund, plan and other transfers receivable--net..... -- -- -- 655 1,484 -- -- -- -- Prepaid expenses.... -- -- -- -- -- -- -- -- 634 -------- ------- -------- ------- -------- ------- ------- -------- -------- Total Assets.... 849,902 90,521 575,129 44,331 331,725 62,302 45,179 316,862 362,139 -------- ------- -------- ------- -------- ------- ------- -------- -------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- -- 306,080 Accrued interest.... -- -- -- -- -- -- -- -- 12,503 Fund, plan and other transfers payable-- net................. 1,831 286 250 -- -- 72 262 677 -- Administrative expenses payable.... 224 85 453 52 237 25 -- 83 52 -------- ------- -------- ------- -------- ------- ------- -------- -------- Total Liabili- ties............ 2,055 371 703 52 237 97 262 760 318,635 -------- ------- -------- ------- -------- ------- ------- -------- -------- Net assets available for Plan benefits (Note 3)............ $847,847 $90,150 $574,426 $44,279 $331,488 $62,205 $44,917 316,102 $ 43,504 ======== ======= ======== ======= ======== ======= ======= ======== ======== TOTAL ASSETS: ---------- Allocated share of Master Trust net investments (Note 4)............ $2,669,645 Allocations and contributions receivable.......... 5,672 Fund, plan and other transfers receivable--net..... 2,139 Prepaid expenses.... 634 ---------- Total Assets.... 2,678,090 ---------- LIABILITIES: Notes payable (Note 5).................. 306,080 Accrued interest.... 12,503 Fund, plan and other transfers payable-- net................. 3,378 Administrative expenses payable.... 1,211 ---------- Total Liabili- ties............ 323,172 ---------- Net assets available for Plan benefits (Note 3)............ $2,354,918 ==========
See notes to financial statements. 4 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1996 (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED ------------------------------------------------------------------------ -------------------- BELL GOVERNMENT SHORT-TERM U.S. BOND U.S. INTERNATIONAL BELL ESOP ATLANTIC MONEY FIXED MARKET EQUITY EQUITY ATLANTIC UNALLOCATED SHARES MARKET INCOME INDEX INDEX INDEX LOAN SHARES SHARES FUND FUND FUND* FUND FUND FUND FUND FUND FUND TOTAL -------- ---------- ---------- --------- -------- ------------- ------- -------- ----------- ---------- Net assets available for Plan benefits, December 31, 1995........... $847,847 $90,150 $574,426 $44,279 $331,488 $62,205 $44,917 $316,102 $43,504 $2,354,918 -------- ------- -------- ------- -------- ------- ------- -------- ------- ---------- Employee contributions...... 26,764 3,574 18,588 3,188 21,098 7,037 -- -- -- 80,249 Employing company contributions and allocations........ 1,517 -- -- -- -- -- -- -- 50,010 51,527 Transfer of ESOP Shares and participants' balances--net...... (68,197) 1,127 (60,747) (2,872) 41,630 15,381 267 63,017 (28,727) (39,121) -------- ------- -------- ------- -------- ------- ------- -------- ------- ---------- Total allocations, contributions and transfers... (39,916) 4,701 (42,159) 316 62,728 22,418 267 63,017 21,283 92,655 Allocated share of Master Trust net investment activities (Note 4)................. 14,497 4,716 32,364 1,574 73,938 5,454 3,523 13,419 (12,956) 136,529 -------- ------- -------- ------- -------- ------- ------- -------- ------- ---------- Net additions... (25,419) 9,417 (9,795) 1,890 136,666 27,872 3,790 76,436 8,327 229,184 -------- ------- -------- ------- -------- ------- ------- -------- ------- ---------- Less: Distributions to participants... 80,701 11,075 62,256 4,106 34,481 6,473 6,298 24,892 -- 230,282 Interest expense......... -- -- -- -- -- -- -- -- 39,168 39,168 Amortization of capitalized ESOP expenses........ -- -- -- -- -- -- -- -- 158 158 Administrative expenses........ 591 110 541 46 385 75 -- 295 96 2,139 -------- ------- -------- ------- -------- ------- ------- -------- ------- ---------- Total deductions...... 81,292 11,185 62,797 4,152 34,866 6,548 6,298 25,187 39,422 271,747 -------- ------- -------- ------- -------- ------- ------- -------- ------- ---------- Net assets available for Plan benefits, December 31, 1996 (Note 3).. $741,136 $88,382 $501,834 $42,017 $433,288 $83,529 $42,409 $367,351 $12,409 $2,312,355 ======== ======= ======== ======= ======== ======= ======= ======== ======= ==========
* Formerly Interest Income Fund See notes to financial statements. 5 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1995 (DOLLARS IN THOUSANDS)
PARTICIPANT DIRECTED NON-PARTICIPANT DIRECTED ------------------------------------------------------------------------------ ------------------------- U.S. BOND INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY BELL ATLANTIC UNALLOCATED SHARES MONEY MARKET INCOME INDEX EQUITY INDEX LOAN SHARES SHARES FUND FUND FUND FUND INDEX FUND FUND FUND FUND FUND ------------- ------------ -------- --------- ---------- ------------- ------- ------------- ----------- Net assets available (deficit) for Plan benefits, December 31, 1994.. $656,592 $88,018 $544,634 $32,206 $224,339 $56,288 $47,370 $220,305 $(45,264) -------- ------- -------- ------- -------- ------- ------- -------- -------- Employee contribu- tions.............. 30,232 4,257 23,841 2,930 17,606 7,003 -- -- -- Employing company contributions and allocations........ 1,631 -- -- -- -- -- -- 2,277 45,822 Transfer of ESOP Shares and participants' balances--net...... (44,378) 766 18,851 6,310 30,517 (3,789) (2,076) 32,069 (33,199) -------- ------- -------- ------- -------- ------- ------- -------- -------- Total alloca- tions, contribu- tions and trans- fers............ (12,515) 5,023 42,692 9,240 48,123 3,214 (2,076) 34,346 12,623 Allocated share of Master Trust net investment activities (Note 4)................. 253,126 5,346 34,804 6,214 83,671 8,973 3,175 102,911 102,382 -------- ------- -------- ------- -------- ------- ------- -------- -------- Net additions... 240,611 10,369 77,496 15,454 131,794 12,187 1,099 137,257 115,005 -------- ------- -------- ------- -------- ------- ------- -------- -------- Less: Distributions to participants.... 48,744 8,120 47,121 3,337 24,360 6,206 3,552 41,255 -- Interest ex- pense........... -- -- -- -- -- -- -- -- 25,983 Amortization of capitalized ESOP expenses........ -- -- -- -- -- -- -- -- 158 Administrative expenses........ 612 117 583 44 285 64 -- 205 96 -------- ------- -------- ------- -------- ------- ------- -------- -------- Total deduc- tions........... 49,356 8,237 47,704 3,381 24,645 6,270 3,552 41,460 26,237 -------- ------- -------- ------- -------- ------- ------- -------- -------- Net assets available for Plan benefits, December 31, 1995 (Note 3).. $847,847 $90,150 $574,426 $44,279 $331,488 $62,205 $44,917 $316,102 $43,504 ======== ======= ======== ======= ======== ======= ======= ======== ======== TOTAL ---------- Net assets available (deficit) for Plan benefits, December 31, 1994.. $1,824,488 ---------- Employee contribu- tions.............. 85,869 Employing company contributions and allocations........ 49,730 Transfer of ESOP Shares and participants' balances--net...... 5,071 ---------- Total alloca- tions, contribu- tions and trans- fers............ 140,670 Allocated share of Master Trust net investment activities (Note 4)................. 600,602 ---------- Net additions... 741,272 ---------- Less: Distributions to participants.... 182,695 Interest ex- pense........... 25,983 Amortization of capitalized ESOP expenses........ 158 Administrative expenses........ 2,006 ---------- Total deduc- tions........... 210,842 ---------- Net assets available for Plan benefits, December 31, 1995 (Note 3).. $2,354,918 ==========
See notes to financial statements. 6 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES NOTES TO FINANCIAL STATEMENTS 1. DESCRIPTION OF PLAN The following description of the Bell Atlantic Savings Plan for Salaried Employees (the "Plan" or "BASP") provides only general information on the Plan's provisions as of December 31, 1996. Participants should refer to the Benefits Handbook, Plan document and prospectus for a more complete description of the Plan's provisions. The Plan is a defined contribution plan covering all regular salaried employees of Bell Atlantic Corporation ("Bell Atlantic") and its participating subsidiaries. Employees are immediately eligible to make tax-deferred or after-tax contributions to the Plan at date of hire. Employees become eligible for employer matching contributions upon completion of one year of service. The Plan includes an employee stock ownership plan ("ESOP") which obtained loans to purchase Bell Atlantic shares that are being allocated to participant accounts in the form of employer matching contributions based upon the loan repayment schedule. Depending on the value of Bell Atlantic shares from time to time, the ESOP may fund more or less than all of the required employer matching contributions in a given calendar year. In the event of a shortfall, Bell Atlantic and its participating subsidiaries make additional employer matching contributions to the Plan. Any surplus is allocated in equal amounts to the Plan accounts of participants who, as of the last day of the year, are active employees of Bell Atlantic and its participating subsidiaries, and have account balances under the Plan. During 1996, the BASP borrowed an additional $16.7 million from Bell Atlantic and used the proceeds to make principal and interest payments to outstanding noteholders. This transaction extended the life of the Leveraged ESOP (LESOP) through 2005 and reduced the number of shares available for allocation to participant accounts through 2000. In 1996, Bell Atlantic and its participating subsidiaries made no additional contributions to the BASP. Additional contributions to the BASP in 1995 amounted to $1,325,000. Eligible employees may authorize basic contributions of 1% to 6% of salary and supplementary contributions up to an additional 10% of salary. Bell Atlantic makes employer matching contributions in an amount generally equal to 83 1/3% of basic contributions. Certain participating subsidiaries make employer matching contributions ranging from 50% to 83 1/3% of basic contributions. Certain participating subsidiaries also make annual discretionary employer contributions which are based, in part, on the individual subsidiary's financial performance. Participants may invest their contributions in a Bell Atlantic Shares Fund ("BASF"), a Government Money Market Fund ("GMMF"), a Short-Term Fixed Income Fund ("STFF"), a U.S. Bond Market Index Fund ("BNDF"), a U.S. Equity Index Fund ("USEF"), or an International Equity Index Fund ("INTF"). Employer matching contributions are invested only in the BASF until employees reach age 55 and one year of service. Effective July 1, 1996, the investment guidelines for the Interest Income Fund were revised to include a portfolio of market-valued, short-term bonds in addition to the investment contracts already in the account. Consequently, this option has been renamed the Short-Term Fixed Income Fund. The Plan provides for 100% vesting of employer matching contributions upon attaining three years of service. A terminated employee's unvested employer matching contributions are forfeited and offset against the participating companies' obligation to make subsequent contributions to the Plan. Forfeitures were $158,508 and $187,702 in 1996 and 1995, respectively. The assets of the Plan are commingled for investment purposes in the Bell Atlantic Master Savings Trust (the "Master Trust") with the assets of the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) ("BASSP"). 7 The Plan includes an employee loan provision authorizing participants to borrow an amount from their vested account balances in the Plan. Loans are generally repaid by payroll deductions. The period of repayment for loans generally will not be less than one year nor more than fifteen years. Each loan will bear interest at a rate established by the Treasurer of Bell Atlantic based upon market interest rates as set forth in the Plan. Certain administrative expenses of the Plan and Master Trust are charged to the Plan and are therefore reflected in the earnings of the investment fund to which the expenses relate. Expenses of the Plan and Master Trust attributable to the operations of the ESOP are charged against the ESOP unallocated shares account, which has no affect on the earnings in participants' accounts. Although it has not expressed any intent to do so, Bell Atlantic has the right under the Plan to discontinue all employer matching contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants will become 100% vested in their accounts. 2. ACCOUNTING POLICIES The values of Master Trust investments are determined as follows: Bell Atlantic shares and other equity securities traded on a national stock exchange are valued on the basis of the last published sales prices per share on December 31 as reported on the composite tape or, if no sales were made on that date, at the last published sales prices on the next preceding day on which sales were made; U.S. Government and other fixed income securities are valued by the Master Trust's trustee at fair value based on current market yields for investments with similar characteristics such as maturity, coupon, and quality as determined by an independent source; securities traded in the over-the-counter market and listed securities for which no sales were reported on the valuation date, are valued at the reported bid price; units in the STFF, the BNDF, the USEF, and the INTF are valued on the basis of net asset values provided by the investment managers pursuant to contractually specified methodologies which are similar to the aforementioned procedures for equity and fixed income investments; and temporary cash investments are valued at cost which approximates fair value. The contracts with the insurance companies and commercial banks included in the STFF are valued at contract value which approximates fair value. Purchases and sales of securities are reflected as of the trade date. Dividend income is recorded on the ex-dividend date. Interest earned on investments is recorded on the accrual basis. The Plan presents in the Statement of Changes in Net Assets Available for Plan Benefits its allocated share of Master Trust investment activities which includes net appreciation (depreciation) in the fair value of its investments. Net appreciation (depreciation) in the fair value of investments consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. Prepaid expenses incurred in connection with the formation of the ESOP are being amortized over 10 years on a straight-line basis. These expenses include debt placement costs and legal fees associated with the placement of the ESOP debt. The Plan participates in certain commingled investment funds. The funds' managers utilize futures and foreign currency forward contracts to minimize transaction costs and the effect of cash flows (such as contributions, transfers, and distributions) on the funds' investment performance. Futures contracts are fully collateralized and are marked to market daily. Foreign currency forward contracts are matched with the settlement of purchases and sales of foreign securities and are also marked to market daily. 8 The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. 3. EMPLOYEE INTEREST IN THE PLAN The interest of an employee in each type of investment of the Plan is represented by units as described in the Plan document. The number of employees participating in each investment option, the number of units and the values per unit at December 31 were as follows:
1996 1995 --------------------------------- --------------------------------- NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE EMPLOYEES OF PER EMPLOYEES OF PER PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT ------------- ----------- ------- ------------- ----------- ------- Bell Atlantic Shares Fund................... 20,239 212,413,040 $5.1850 20,688 210,833,899 $5.3610 Government Money Market Fund................... 5,660 9,448,083 9.3005 6,016 9,769,403 8.8173 Short-Term Fixed Income Fund*.................. 13,504 102,108,691 4.9087 14,990 118,499,075 4.6165 U.S. Bond Market Index Fund................... 3,711 29,969,439 1.3977 3,513 31,722,995 1.3454 U.S. Equity Index Fund.. 12,117 27,228,234 15.8136 11,153 24,644,414 12.9665 International Equity Index Fund............. 5,972 51,029,435 1.6152 4,785 40,085,108 1.4950 Loan Fund............... 4,373 -- -- 4,862 -- --
At December 31, 1996, 14,266 participants were actively contributing to the Plan; 7,865 participants were not actively contributing to the Plan. The total number of participants in the Plan was less than the sum of the number of participants shown in the schedule above because many participants were invested in more than one fund. 4. INTEREST IN BELL ATLANTIC MASTER SAVINGS TRUST BASP'S SHARE OF MASTER TRUST NET ASSETS. The Plan's allocated share of the Master Trust's net assets is based upon the total of each individual Plan participant's share of the Master Trust. The allocated share of the net assets of each fund in the Master Trust at December 31 was as follows:
1996 1995 ----- ----- Bell Atlantic Shares Fund (for the BASP)..................... 100.0% 100.0% Bell Atlantic Shares Fund (for the BASSP).................... -- -- Government Money Market Fund................................. 90.0% 92.2% Short-Term Fixed Income Fund* (for the BASP)................. 100.0% 100.0% Short-Term Fixed Income Fund* (for the BASSP)................ -- -- U.S. Bond Market Index Fund.................................. 85.1% 86.4% U.S. Equity Index Fund....................................... 88.0% 92.1% International Equity Index Fund.............................. 84.1% 86.4% Loan Fund (for the BASP)..................................... 100.0% 100.0% Loan Fund (for the BASSP).................................... -- -- ESOP Unallocated Shares Fund (for the BASP).................. 100.0% 100.0% ESOP Unallocated Shares Fund (for the BASSP)................. -- --
* Formerly Interest Income Fund 9 At December 31, the financial position of the Master Trust was as follows:
1996 1995 ----------- ----------- (DOLLARS IN THOUSANDS) ASSETS: Investments at fair value: Bell Atlantic Shares Fund--BASP: Bell Atlantic Corporation common shares............ $ 1,119,023 $ 1,137,316 Temporary cash investments......................... 6,288 20,610 Bell Atlantic Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 1,026,390 1,027,268 Temporary cash investments......................... 6,347 16,054 Government Money Market Fund: Temporary cash investments......................... 98,223 97,702 Short-Term Fixed Income Fund*--BASP: Contracts with insurance companies and commercial banks............................................. 325,691 491,715 Pooled Obligations................................. 178,238 -- Temporary cash investments......................... 264 80,448 Short-Term Fixed Income Fund*--BASSP: Contracts with insurance companies and commercial banks............................................. 174,538 253,352 Pooled Obligations................................. 110,360 -- Temporary cash investments......................... 110 39,980 U.S. Bond Market Index Fund: Fund shares........................................ 49,460 48,356 Temporary cash investments......................... 308 2,164 U.S. Equity Index Fund: Fund shares........................................ 483,225 341,186 Temporary cash investments......................... 3,134 17,040 International Equity Index Fund: Fund shares........................................ 96,257 70,788 Temporary cash investments......................... 1,395 1,334 Loan Fund--BASP: Loans receivable from participants................. 41,746 45,179 Loan Fund--BASSP: Loans receivable from participants................. 36,842 33,634 ESOP Unallocated Shares Fund--BASP: Bell Atlantic Corporation common shares............ 280,130 347,845 Temporary cash investments......................... 12,901 13,605 ESOP Unallocated Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 166,327 215,532 Temporary cash investments......................... 8,241 6,652 ----------- ----------- Total investments................................ 4,225,438 4,307,760 Receivables: Dividends and interest income...................... 3,370 14,086 Receivables for investments sold................... 4,785 1,693 ----------- ----------- Total assets..................................... 4,233,593 4,323,539 LIABILITIES: Payable for investments purchased................... 22,300 7,255 ----------- ----------- Net investments.................................. 4,211,293 4,316,284 =========== =========== Investments at cost: ................................. $ 3,165,758 $3,210,823 =========== ===========
* Formerly Interest Income Fund See Schedule I, Bell Atlantic Master Savings Trust Schedule of Investments. 10 The BASP's principal financial instrument subject to credit risk is the investment in the Master Trust. The Master Trust consists of separate investment funds, as defined by the Plan, with different investment objectives. The degree and concentration of credit risk varies by fund depending upon the type and diversity of investments. The schedule of investments depicts the types of investments and their proportionate share of each investment fund. BASP'S SHARE OF MASTER TRUST INVESTMENT ACTIVITIES. The Plan's allocated share of Master Trust investment activities is based upon the total of each individual Plan participant's share of the Master Trust investment activities during the years ended December 31, 1996 and 1995. The Master Trust's investment activities for the years ended December 31 were as follows:
1996 1995 ----------- ------------ (DOLLARS IN THOUSANDS) Investment Activities: Dividends on Bell Atlantic Corporation common shares: Non-ESOP shares............................... $ 92,836 $ 91,447 ESOP shares................................... 22,336 25,979 Other dividends................................ 10,389 7,498 Short-Term Fixed Income Fund* (BASP) income.... 28,064 34,804 Short-Term Fixed Income Fund* (BASSP) income... 14,791 17,306 Other interest................................. 16,682 15,489 Net (depreciation) appreciation in value of investments................................... (5,133) 808,956 ---------- ------------ Net investment activities.................. $179,963 $ 1,001,479 ========== ============ Allocated share of net investment activities: BASP........................................... $136,529 $ 600,602 BASSP.......................................... 43,407 400,877
* Formerly Interest Income Fund The value per share of Bell Atlantic common stock decreased from $66.88 at December 31, 1995 to $64.75 at December 31, 1996. This represents a (3.18)% decrease in the value per share. At December 31, 1996, approximately 43% of BASP assets and 64% of BASSP assets were invested in the Bell Atlantic Shares Funds. Between January 1 and April 10, 1997, Bell Atlantic common stock closing prices have ranged from $58.75 to $71.38 per share. 5. LEVERAGED ESOP NOTES PAYABLE The Leveraged ESOP notes payable bear an 8.17% interest rate subject to adjustment (maximum 10.25% and minimum 6.77%) due to changes in the Federal income tax rate or changes in the Federal law regarding the alternative minimum tax. The refinanced portion of the LESOP notes payable bears an annual 7.40% interest rate. Interest and principal payments are guaranteed by Bell Atlantic and are due on January 1 and July 1 of each year; principal payments began July 1, 1990. The following table displays the principal maturities under the notes with the final payment due July 1, 2005 (in thousands): 1997..................................... $ 62,171 1998..................................... 71,237 1999..................................... 81,171 2000..................................... 44,973 2001..................................... 1,823 Thereafter............................... 8,775 -------- $270,150 ========
11 The fair value of the Leveraged ESOP notes payable is based on quoted market prices for the same or similar instruments. As of December 31, 1996, the carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR AMOUNT VALUE ----------------------- (DOLLARS IN THOUSANDS) BASP............................................... $270,150 $282,594 BASSP.............................................. 158,791 166,588 ----------- ----------- $428,941 $449,182 =========== ===========
6. TAX DETERMINATION On November 30, 1995, the Internal Revenue Service issued a ruling that the Plan meets the requirements of Section 401(a) of the Internal Revenue Code of 1986 (the "Code") and is exempt from Federal income taxes under Section 501(a) of the Code and that the ESOP portion of the Plan qualifies as an employee stock ownership plan within the meaning of Section 4975(e)(7) of the Code. The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plan's tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Code. 7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for plan benefits per the financial statements to the Form 5500:
1996 1995 ----------- ----------- (DOLLARS IN THOUSANDS) Net assets available for benefits per the financial statements....................................... $2,312,355 $ 2,354,918 Amounts allocated to withdrawing participants..... 19,650 83,460 ----------- ----------- Net assets available for benefits per the Form 5500............................................. $2,292,705 $ 2,271,458 =========== ===========
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
1996 1995 ----------- ----------- (DOLLARS IN THOUSANDS) Benefits paid to participants per the financial statements....................................... $230,282 $ 182,695 Add: Amounts allocated to withdrawing participants at December 31, ................................. 19,650 83,460 Less: Amounts allocated to withdrawing participants at December 31, .................... 83,460 12,030 ----------- ----------- Benefits paid to participants per the Form 5500... $166,472 $ 254,125 =========== ===========
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. 8. PROPOSED BELL ATLANTIC-NYNEX MERGER Bell Atlantic and NYNEX announced a proposed merger under a definitive agreement entered into on April 21, 1996 and amended on July 2, 1996. Under the terms of the amended agreement, 12 NYNEX will become a subsidiary of Bell Atlantic. NYNEX stockholders will receive 0.768 of a share of Bell Atlantic common stock for each share of NYNEX common stock that they own. Bell Atlantic stockholders will continue to own their existing shares after the merger. At special meetings held in November 1996, the stockholders of both companies approved the merger. The completion of the merger is subject to a number of conditions, including certain regulatory approvals and receipt of legal opinions that the merger will be tax free. Bell Atlantic is unable to predict when it will be able to complete the merger. At this time, there are no plans regarding the impact of the merger on the BASP/BASSP. 9. PLAN TRANSFERS The line in the Statement of Changes in Net Assets described as "Transfer of ESOP Shares and participants' balances--net" includes the effect of LESOP debt service activity, the allocation of Bell Atlantic shares from the LESOP to the BASF, participant-directed transfers between investment options, and asset transfers between the BASP and other defined contribution plans. In 1996, the BASP transferred $32.4 million to a successor trustee on behalf of participants of Bell Atlantic Business Systems Services, Inc., which was sold to a third party. 13 SIGNATURE PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE BELL ATLANTIC CORPORATE EMPLOYEES' BENEFITS COMMITTEE HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. Bell Atlantic Savings Plan For Salaried Employees Date: April 18, 1997 By /s/ Ellen C. Wolf ---------------------------------- ELLEN C. WOLF (Member of the Bell Atlantic Corporate Employees' Benefits Committee) 14 SCHEDULE I BELL ATLANTIC MASTER SAVINGS TRUST SCHEDULE OF INVESTMENTS (DOLLARS IN THOUSANDS)
DECEMBER 31, 1996 ------------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ----------- -------- ---------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares-- 99.4%....................................... 17,282,211 shs. $728,964 $1,119,023 Temporary Cash Investments--0.6%............. $ 6,288 6,288 6,288 -------- ---------- Total.................................. 735,252 1,125,311 -------- ---------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) *Bell Atlantic Corporation Common Shares-- 99.4%....................................... 15,851,583 shs. 671,315 1,026,390 Temporary Cash Investments--0.6%............. $ 6,347 6,347 6,347 -------- ---------- Total.................................. 677,662 1,032,737 -------- ---------- GOVERNMENT MONEY MARKET FUND Temporary Cash Investments--100.0% BT Pyramid Government Securities Cash Fund. 98,223 98,223 98,223 -------- ---------- Total.................................. 98,223 98,223 -------- ---------- @SHORT-TERM FIXED INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES +Contracts with Insurance Companies and Commercial Banks--64.6%..................... American Int'l Life Assurance, 7.02% Maturing 10/1/99.......................... 5,482 5,482 5,482 American Int'l Life Assurance, 5.25% Maturing 4/1/98........................... 6,871 6,871 6,871 American Int'l Life Assurance, 7.17% Maturing 1/4/2000......................... 15,965 15,965 15,965 Hartford Life Ins. Co., 6.78% Maturing 7/1/97.................................... 7,141 7,141 7,141 John Hancock Mutual Life Ins. Co., 5.85% Maturing 6/30/98.......................... 17,099 17,099 17,099 John Hancock Mutual Life Ins. Co., 6.60% Maturing 10/1/99.......................... 7,719 7,719 7,719 ITT Hartford Life Ins. Co., 8.04% Maturing 1/1/99.................................... 20,202 20,202 20,202 Metropolitan Life Ins. Co., 5.58% Maturing 1/1/98.................................... 11,022 11,022 11,022 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98.................................... 30,866 30,866 30,866 Metropolitan Life Ins. Co., 5.08% Maturing 1/1/97.................................... 12,495 12,495 12,495 #MBL Life Assurance Corp., 3.5% to 5.0% Maturing 12/31/2004....................... 7,587 7,587 7,587 New York Life 7.00% Maturing 7/1/99........ 29,305 29,305 29,305 New York Life 5.93% Maturing 3/31/98....... 3,792 3,792 3,792 New York Life, 5.18% Maturing 7/1/98....... 17,072 17,072 17,072 New York Life, 7.20% Maturing 1/1/2000..... 17,739 17,739 17,739 New York Life, 7.98% Maturing 4/3/2000..... 16,429 16,429 16,429 New York Life, Money Market Account........ 4,798 4,798 4,798 Principal Mutual Life Ins. Co., 5.10% Maturing 1/2/97........................... 3,595 3,595 3,595 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97.......................... 22,926 22,926 22,926 Principal Mutual Life Ins. Co., 7.38% Maturing 1/1/2000......................... 8,115 8,115 8,115 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98........................... 15,499 15,499 15,499 Provident Nat'l Assurance, 5.12% Maturing 1/2/97.................................... 9,736 9,736 9,736
S-1 SCHEDULE I
DECEMBER 31, 1996 --------------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ---------- -------- -------- @SHORT-TERM FIXED INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES--(CONTINUED): Provident Nat'l Assurance, 4.59% Maturing 4/1/97....................................... $ 8,833 $ 8,833 $ 8,833 The Prudential Ins. Co. of America, 8.08% Maturing 4/1/97.............................. 5,368 5,368 5,368 The Prudential Ins. Co. of America, 5.91% Maturing 7/1/98.............................. 12,321 12,321 12,321 The Prudential Ins. Co. of America, 5.04% Maturing 1/1/98.............................. 7,714 7,714 7,714 -------- -------- 325,691 325,691 -------- -------- Pooled Obligations--35.4% BGI 1-3 Year Government Bond Index Fund...... 15,241,329 shs. 174,047 178,238 -------- -------- Temporary Cash Investments--0.0% BT Pyramid Government Securities Cash Fund... $ 264 264 264 -------- -------- Total..................................... 500,002 504,193 -------- -------- @SHORT-TERM FIXED INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) +Contracts with Insurance Companies and Commercial Banks-- 61.3% American Int'l Life Assurance, 5.11% Maturing 7/1/98....................................... $ 3,244 3,244 3,244 American Int'l Life Assurance, 7.17%, Maturing 1/4/2000..................................... 8,322 8,322 8,322 American Int'l Life Assurance, 7.02% Maturing 10/1/99...................................... 5,659 5,659 5,659 American Int'l Life Assurance, 5.25% Maturing 4/1/98....................................... 3,236 3,236 3,236 Hartford Ins. Co., 7.93%, Maturing 4/1/99..... 20,886 20,886 20,886 John Hancock Mutual Life Ins. Co., 5.81% Maturing 6/30/98............................. 8,398 8,398 8,398 John Hancock Mutual Life Ins. Co., 6.57% Maturing 10/1/99............................. 4,883 4,883 4,883 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98....................................... 13,182 13,182 13,182 Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97....................................... 4,540 4,540 4,540 Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98....................................... 7,562 7,562 7,562 New York Life, 7.28% Maturing 1/1/2000........ 5,228 5,228 5,228 New York Life, 5.88% Maturing 9/30/97......... 6,993 6,993 6,993 New York Life, 5.05% Maturing 4/1/97.......... 2,426 2,426 2,426 New York Life, 5.13% Maturing 7/1/98.......... 5,026 5,026 5,026 New York Life, 6.75% Maturing 7/1/99.......... 6,411 6,411 6,411 New York Life, 7.20% Maturing 10/1/99......... 6,131 6,131 6,131 New York Life, 5.92% Maturing 1/1/99.......... 8,041 8,041 8,041 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98....................................... 4,337 4,337 4,337 Principal Mutual Life Ins. Co., 7.30% Maturing 9/30/99...................................... 4,780 4,780 4,780 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97...................................... 13,867 13,867 13,867 Principal Mutual Life Ins. Co., 5.20% Maturing 4/1/97....................................... 5,466 5,466 5,466 Provident Nat'l Assurance, 4.62% Maturing 7/1/97....................................... 4,826 4,826 4,826 Provident Nat'l Assurance, 5.10% Maturing 4/1/97....................................... 4,805 4,805 4,805 The Prudential Ins. Co. of America, 6.78% Maturing 1/1/99.............................. 9,769 9,769 9,769 The Prudential Ins. Co. of America, 5.88% Maturing 7/1/98.............................. 6,520 6,520 6,520 -------- -------- 174,538 174,538 -------- -------- Pooled Obligations--38.7% BGI Short Term Money Market Fund............. 2,300 2,300 2,300 BGI 1-3 Year Government Bond Index Fund...... 9,240,334 shs. 105,407 108,060 -------- -------- Temporary Cash Investments--0.0% BT Pyramid Government Securities Cash Fund... $ 110 110 110 -------- -------- 107,707 110,360 -------- -------- Total..................................... 282,355 285,008 -------- --------
S-2 SCHEDULE I
DECEMBER 31, 1996 ------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- ------- ------- U.S. BOND MARKET INDEX FUND Bond Funds--99.4% BGI U.S. Debt Index Fund......................... 1,880,113 shs. $44,991 $44,744 BGI Daily U.S. Debt Index Fund................... 336,224 4,293 4,716 ------- ------- 49,284 49,460 ------- ------- Temporary Cash Investments--0.6% BT Pyramid Government Securities Cash Fund....... $ 308 308 308 ------- ------- Total........................................ 49,592 49,768 ------- ------- U.S. EQUITY INDEX FUND Pooled Common Stock--98.6% *Mellon E.B. Russell 1000 Stock Index Fund....... 1,017,440 shs. 247,399 402,283 Mellon E.B. Russell 2000 Stock Index Fund........ 156,217 30,132 46,432 Mellon E.B. Daily Opening Stock Index Fund....... 189,789 32,261 34,510 ------- ------- 309,792 483,225 ------- ------- Temporary Cash Investments--1.4% BT Pyramid Government Securities Cash Fund....... $ 3,134 3,134 3,134 ------- ------- Total........................................ 312,926 486,359 ------- ------- INTERNATIONAL EQUITY INDEX FUND Pooled Common Stock--94.6% BGI MSCI Equity Index Fund-UK.................... 145,359 shs. 1,924 2,292 BGI Europe Ex UK Equity Index Fund............... 1,003,883 13,036 14,286 BGI MSCI Equity Index Fund-Japan................. 793,840 7,340 6,493 BGI Pacific Ex Japan Equity Index Fund........... 102,313 1,223 1,353 BGI EAFE GDP Index Fund.......................... 4,817,623 65,054 71,833 ------- ------- 88,577 96,257 ------- ------- Temporary Cash Investments--5.4% BT Pyramid Government Securities Cash Fund....... $ 1,395 1,395 1,395 ------- ------- Total........................................ 89,972 97,652 ------- ------- LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES Participant Loan Obligations--7.17% to 9.50%....... 41,746 41,746 ------- ------- Total Loan Fund.............................. 41,746 41,746 ------- ------- LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) Participant Loan Obligations--7.17% to 9.50%....... 36,842 36,842 ------- ------- Total Loan Fund.............................. 36,842 36,842 ------- ------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares--95.6%.... 4,326,337 shs. 200,813 280,130 Temporary Cash Investments--4.4%................... $ 12,901 12,901 12,901 ------- ------- Total........................................ 213,714 293,031 ------- -------
S-3 SCHEDULE I
DECEMBER 31, 1996 ------------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- ---------- ---------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) Bell Atlantic Corporation Common Shares-- 95.3%....................................... 2,568,767 shs. $ 119,231 $ 166,327 Temporary Cash Investments--4.7%............. $ 8,241 8,241 8,241 ---------- ---------- Total.................................. 127,472 174,568 ---------- ---------- Grand Total............................ $3,165,758 $4,225,438 ---------- ----------
- -------- * Investment represents 5% or more of the net investments of the Master Trust. + Under these contracts the respective insurance companies and commercial banks contractually agree to the repayment of principal and the crediting of interest. The composite effective annual interest rate earned on all contracts in 1996, net of third party expenses and after the effect of cash flows, was 6.3% for the BASP and 6.2% for the BASSP. # MBL Life Assurance Corporation is the successor to Mutual Benefit Life Insurance Company which was placed under a rehabilitation plan in 1993. The contract interest rate will vary based upon the actual performance of the underlying investments. @ Formerly Interest Income Fund Percentages represent percentage of total investments of each fund. S-4 EX-24.1 3 SALARIED AUDITOR'S CONSENT EXHIBIT 24 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statements of Bell Atlantic Corporation on Form S-8 (File Nos. 33-10377 and 2-96246) of our report dated April 10, 1997 on our audits of the financial statements of the Bell Atlantic Savings Plan for Salaried Employees as of December 31, 1996 and 1995 and for the years then ended, and the accompanying schedule of investments as of December 31, 1996, which report is included in this Annual Report on Form 11-K, which is filed as Exhibit 99a to Form 10-K of Bell Atlantic Corporation for the year ended December 31, 1996. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 18, 1997 EX-99.B 4 NON-SALARIED SAVINGS PLAN COMMISSION FILE NO. 1-8606 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K (MARK ONE) [X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996 OR [_] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-8606 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) (FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF THE ISSUER NAMED BELOW) BELL ATLANTIC CORPORATION 1717 ARCH STREET PHILADELPHIA, PENNSYLVANIA 19103 (NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) FINANCIAL STATEMENTS DECEMBER 31, 1996 AND 1995 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) INDEX TO FINANCIAL STATEMENTS AND EXHIBITS
PAGE(S) FINANCIAL STATEMENTS: ------- Report of Independent Accountants............................... 2 Financial Statements: Statements of Net Assets Available for Plan Benefits at Decem- ber 31, 1996 and 1995........................................ 3-4 Statements of Changes in Net Assets Available for Plan Bene- fits for the years ended December 31, 1996 and 1995.......... 5-6 Notes to Financial Statements................................. 7-13 Signature....................................................... 14 Bell Atlantic Master Savings Trust Schedule of Investments--De- cember 31, 1996................................................ S1-S4 EXHIBIT: EXHIBIT NUMBER - -------- -------------- Consent of Independent Accountants ............................. 24
UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF APRIL 16, 1997 1 REPORT OF INDEPENDENT ACCOUNTANTS Vice President--Treasurer Bell Atlantic Corporation: We have audited the accompanying statements of net assets available for plan benefits of the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) (the "Plan") as of December 31, 1996 and 1995, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements and the accompanying schedule are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and the accompanying schedule based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 1996 and 1995, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of investments as of December 31, 1996 on pages S1 to S4 is presented for the purpose of complying with the Securities and Exchange Commission's rules and is not a required part of the basic financial statements. The fund information in the statements of net assets available for plan benefits and the statements of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The schedule of investments and fund information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 10, 1997 2 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1996 (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED ---------------------------------------------------------------------------- ------------------------- SHORT- . TERM U.S. U.S. INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT FIXED BOND EQUITY EQUITY BELL ATLANTIC UNALLOCATED SHARES MONEY MARKET INCOME MARKET INDEX INDEX LOAN SHARES SHARES FUND FUND FUND* INDEX FUND FUND FUND FUND FUND FUND ASSETS: ------------- ------------ -------- ---------- ------- ------------- ------- ------------- ----------- Allocated share of Master Trust net investments (Note 4)............ $732,409 $9,758 $283,988 $7,323 $58,202 $15,397 $36,842 $294,141 $174,600 Allocations and contributions receivable.......... 709 29 419 27 319 80 -- 3,214 -- Fund, plan and other transfers receivable--net..... -- 23 -- 198 3,313 542 289 -- -- Prepaid expenses.... -- -- -- -- -- -- -- -- 298 -------- ------ -------- ------ ------- ------- ------- -------- -------- Total Assets.... 733,118 9,810 284,407 7,548 61,834 16,019 37,131 297,355 174,898 -------- ------ -------- ------ ------- ------- ------- -------- -------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- -- 158,791 Accrued interest.... -- -- -- -- -- -- -- -- 6,487 Fund, plan and other transfers payable-- net................. 5,363 -- 462 -- -- -- -- 102 -- Administrative expenses payable.... 455 1 329 3 1 -- -- 187 14 -------- ------ -------- ------ ------- ------- ------- -------- -------- Total Liabili- ties............ 5,818 1 791 3 1 -- -- 289 165,292 -------- ------ -------- ------ ------- ------- ------- -------- -------- Net assets available for Plan benefits (Note 3)............ $727,300 $9,809 $283,616 $7,545 $61,833 $16,019 $37,131 $297,066 $ 9,606 ======== ====== ======== ====== ======= ======= ======= ======== ======== TOTAL ASSETS: ---------- Allocated share of Master Trust net investments (Note 4)............ $1,612,660 Allocations and contributions receivable.......... 4,797 Fund, plan and other transfers receivable--net..... 4,365 Prepaid expenses.... 298 ---------- Total Assets.... 1,622,120 ---------- LIABILITIES: Notes payable (Note 5).................. 158,791 Accrued interest.... 6,487 Fund, plan and other transfers payable-- net................. 5,927 Administrative expenses payable.... 990 ---------- Total Liabili- ties............ 172,195 ---------- Net assets available for Plan benefits (Note 3)............ $1,449,925 ==========
* Formerly Interest Income Fund. See notes to financial statements. 3 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1995 (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED ---------------------------------------------------------------------------- ------------------------- . U.S. U.S. INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST BOND EQUITY EQUITY BELL ATLANTIC UNALLOCATED SHARES MONEY MARKET INCOME MARKET INDEX INDEX LOAN SHARES SHARES FUND FUND FUND INDEX FUND FUND FUND FUND FUND FUND ASSETS: ------------- ------------ -------- ---------- ------- ------------- ------- ------------- ----------- Allocated share of Master Trust net investments (Note 4)............ $772,673 $7,659 $294,823 $6,872 $28,215 $9,835 $33,634 $268,820 $224,108 Allocations and contributions receivable.......... 1,320 27 472 26 148 41 -- 5,282 -- Fund, plan and other transfers receivable--net..... -- -- -- 3 232 -- 249 -- -- Prepaid expenses.... -- -- -- -- -- -- -- -- 397 -------- ------ -------- ------ ------- ------ ------- -------- -------- Total Assets.... 773,993 7,686 295,295 6,901 28,595 9,876 33,883 274,102 224,505 -------- ------ -------- ------ ------- ------ ------- -------- -------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- -- 191,765 Accrued interest.... -- -- -- -- -- -- -- -- 7,834 Fund, plan and other transfers payable-- net................. 1,757 137 801 -- -- 54 -- -- -- Administrative expenses payable.... 523 3 366 7 2 7 -- 165 36 -------- ------ -------- ------ ------- ------ ------- -------- -------- Total Liabili- ties............ 2,280 140 1,167 7 2 61 -- 165 199,635 -------- ------ -------- ------ ------- ------ ------- -------- -------- Net assets available for Plan benefits (Note 3)............ $771,713 $7,546 $294,128 $6,894 $28,593 $9,815 $33,883 $273,937 $ 24,870 ======== ====== ======== ====== ======= ====== ======= ======== ======== TOTAL ASSETS: ---------- Allocated share of Master Trust net investments (Note 4)............ $1,646,639 Allocations and contributions receivable.......... 7,316 Fund, plan and other transfers receivable--net..... 484 Prepaid expenses.... 397 ---------- Total Assets.... 1,654,836 ---------- LIABILITIES: Notes payable (Note 5).................. 191,765 Accrued interest.... 7,834 Fund, plan and other transfers payable-- net................. 2,749 Administrative expenses payable.... 1,109 ---------- Total Liabili- ties............ 203,457 ---------- Net assets available for Plan benefits (Note 3)............ $1,451,379 ==========
See notes to financial statements. 4 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1996 (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED ---------------------------------------------------------------------- -------------------- SHORT- BELL GOVERNMENT TERM U.S. BOND U.S. INTERNATIONAL BELL ESOP ATLANTIC MONEY FIXED MARKET EQUITY EQUITY ATLANTIC UNALLOCATED SHARES MARKET INCOME INDEX INDEX INDEX LOAN SHARES SHARES FUND FUND FUND* FUND FUND FUND FUND FUND FUND TOTAL -------- ---------- -------- --------- ------- ------------- ------- -------- ----------- ---------- Net assets available for Plan benefits, December 31, 1995........... $771,713 $7,546 $294,128 $6,894 $28,593 $ 9,815 $33,883 $273,937 $24,870 $1,451,379 -------- ------ -------- ------ ------- ------- ------- -------- ------- ---------- Employee contributions...... 31,380 1,313 25,966 1,191 6,052 2,321 -- -- -- 68,223 Employing company contributions and allocations........ 2,028 -- -- -- -- -- -- -- 31,180 33,208 Transfer of ESOP Shares and participants' balances--net...... (14,563) 1,556 (18,821) 77 21,796 4,080 2,559 39,920 (22,486) 14,118 -------- ------ -------- ------ ------- ------- ------- -------- ------- ---------- Total allocations, contributions and transfers... 18,845 2,869 7,145 1,268 27,848 6,401 2,559 39,920 8,694 115,549 Allocated share of Master Trust net investment activities (Note 4)................. 16,613 451 17,508 268 8,082 927 2,879 6,786 (10,107) 43,407 -------- ------ -------- ------ ------- ------- ------- -------- ------- ---------- Net additions... 35,458 3,320 24,653 1,536 35,930 7,328 5,438 46,706 (1,413) 158,956 -------- ------ -------- ------ ------- ------- ------- -------- ------- ---------- Less: Distributions to participants.... 78,739 1,039 34,630 871 2,616 1,101 2,190 23,114 -- 144,300 Interest expense......... -- -- -- -- -- -- -- -- 13,683 13,683 Amortization of capitalized ESOP expenses........ -- -- -- -- -- -- -- -- 99 99 Administrative expenses........ 1,132 18 535 14 74 23 -- 463 69 2,328 -------- ------ -------- ------ ------- ------- ------- -------- ------- ---------- Total deductions...... 79,871 1,057 35,165 885 2,690 1,124 2,190 23,577 13,851 160,410 -------- ------ -------- ------ ------- ------- ------- -------- ------- ---------- Net assets available for Plan benefits, December 31, 1996 (Note 3).. $727,300 $9,809 $283,616 $7,545 $61,833 $16,019 $37,131 $297,066 $ 9,606 $1,449,925 ======== ====== ======== ====== ======= ======= ======= ======== ======= ==========
* Formerly Interest Income Fund. See notes to financial statements. 5 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1995 (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED ------------------------------------------------------------------------------ ----------------------- GOVERNMENT INTERNATIONAL ESOP BELL ATLANTIC MONEY INTEREST U.S. BOND U.S. EQUITY EQUITY BELL UNALLOCATED SHARES MARKET INCOME MARKET INDEX INDEX LOAN ATLANTIC SHARES FUND FUND FUND INDEX FUND FUND FUND FUND SHARES FUND FUND ------------- ---------- -------- ---------- ----------- ------------- ------- ----------- ----------- Net assets available (deficit) for Plan benefits, December 31, 1994.. $567,089 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $178,506 $(31,518) -------- ------ -------- ------ ------- ------ ------- -------- -------- Employee contributions...... 33,308 1,244 29,477 1,000 3,937 2,004 -- -- -- Employing company contributions and allocations........ 197 -- -- -- -- -- -- 12,034 28,654 Transfer of ESOP Shares and participants' balances--net...... (25,348) 347 1,456 387 5,457 (21) 2,447 28,090 (19,787) -------- ------ -------- ------ ------- ------ ------- -------- -------- Total allocations, contributions and transfers... 8,157 1,591 30,933 1,387 9,394 1,983 2,447 40,124 8,867 Allocated share of Master Trust net investment activities (Note 4)................. 232,031 410 17,306 949 6,034 1,295 1,984 76,906 63,962 -------- ------ -------- ------ ------- ------ ------- -------- -------- Net additions... 240,188 2,001 48,239 2,336 15,428 3,278 4,431 117,030 72,829 -------- ------ -------- ------ ------- ------ ------- -------- -------- Less: Distributions to participants.... 34,412 805 24,814 273 1,102 489 934 21,237 -- Interest expense......... -- -- -- -- -- -- -- -- 16,279 Amortization of capitalized ESOP expenses........ -- -- -- -- -- -- -- -- 99 Administrative expenses........ 1,152 19 575 15 44 22 -- 362 63 -------- ------ -------- ------ ------- ------ ------- -------- -------- Total deductions...... 35,564 824 25,389 288 1,146 511 934 21,599 16,441 -------- ------ -------- ------ ------- ------ ------- -------- -------- Net assets available for Plan benefits, December 31, 1995 (Note 3).. $771,713 $7,546 $294,128 $6,894 $28,593 $9,815 $33,883 $273,937 $ 24,870 ======== ====== ======== ====== ======= ====== ======= ======== ======== TOTAL ----------- Net assets available (deficit) for Plan benefits, December 31, 1994.. $1,048,315 ----------- Employee contributions...... 70,970 Employing company contributions and allocations........ 40,885 Transfer of ESOP Shares and participants' balances--net...... (6,972) ----------- Total allocations, contributions and transfers... 104,883 Allocated share of Master Trust net investment activities (Note 4)................. 400,877 ----------- Net additions... 505,760 ----------- Less: Distributions to participants.... 84,066 Interest expense......... 16,279 Amortization of capitalized ESOP expenses........ 99 Administrative expenses........ 2,252 ----------- Total deductions...... 102,696 ----------- Net assets available for Plan benefits, December 31, 1995 (Note 3).. $1,451,379 ===========
See notes to financial statements. 6 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) NOTES TO FINANCIAL STATEMENTS 1. DESCRIPTION OF PLAN The following description of the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) (the "Plan" or "BASSP") provides only general information on the Plan's provisions as of December 31, 1996. Participants should refer to the Benefits Handbook, Plan document and prospectus for a more complete description of the Plan's provisions. The Plan is a defined contribution plan covering all regular non-salaried employees of Bell Atlantic Corporation ("Bell Atlantic") and its participating subsidiaries. Prior to May 1, 1993, employees who had at least one year of service were eligible to make tax-deferred or after-tax contributions to the Plan. Effective May 1, 1993, employees are immediately eligible to make tax- deferred or after-tax contributions to the Plan at date of hire. Employees also become eligible for employer matching contributions upon completion of one year of service. The Plan includes an employee stock ownership plan ("ESOP") which obtained loans to purchase Bell Atlantic shares that are being allocated to participant accounts in the form of employer matching contributions based upon the loan repayment schedule. Depending on the value of Bell Atlantic shares from time to time, the ESOP may fund more or less than all of the required matching contributions in a given calendar year. In the event of a shortfall, Bell Atlantic and its participating subsidiaries make additional employer matching contributions to the Plan. Any surplus is allocated in equal amounts to the Plan accounts of participants who, as of the last day of the year, are active employees of Bell Atlantic and its participating subsidiaries, and have account balances under the Plan. In 1996, Bell Atlantic and its participating subsidiaries made no additional contributions to the BASSP. Additional contributions to the BASSP in 1995 amounted to $12,231,000. Eligible employees may authorize basic contributions of $5 to $45 per week, which is as much as 5% to 7% of the basic weekly rate, and supplementary contributions up to an amount which, when added to the basic contribution, is not more than 16% of the employee's weekly rate. Bell Atlantic makes employer matching contributions in an amount generally equal to 66 2/3% of basic contributions. One participating subsidiary makes employer matching contributions equal to 37 1/2% of basic contributions. One participating subsidiary also makes an annual employer contribution which is based on a percentage of eligible compensation. Participants may invest their contributions in a Bell Atlantic Shares Fund ("BASF"), a Government Money Market Fund ("GMMF"), a Short-Term Fixed Income Fund ("STFF"), a U.S. Bond Market Index Fund ("BNDF"), a U.S. Equity Index Fund ("USEF"), or an International Equity Index Fund ("INTF"). Employer matching contributions are invested only in the BASF until employees reach age 55 and ten years of service. Effective July 1, 1996, the investment guidelines for the Interest Income Fund were revised to include a portfolio of market-valued, short-term bonds in addition to the investment contracts already in the account. Consequently, this option has been renamed the Short-Term Fixed Income Fund. The Plan provides for 100% vesting of employer matching contributions upon attaining three years of service. A terminated employee's unvested employer matching contributions are forfeited and offset against the participating companies' obligation to make subsequent contributions to the Plan. Forfeitures were $37,951 and $72,656 in 1996 and 1995, respectively. The assets of the Plan are commingled for investment purposes in the Bell Atlantic Master Savings Trust (the "Master Trust") with the assets of the Bell Atlantic Savings Plan for Salaried Employees ("BASP"). The Plan includes an employee loan provision authorizing participants to borrow an amount from their vested account balances in the Plan. Loans are generally repaid by payroll deductions. The 7 repayment period for loans generally will not be less than one year nor more than fifteen years. Each loan will bear interest at a rate established by the Treasurer of Bell Atlantic based upon market interest rates as set forth in the Plan. Certain administrative expenses of the Plan and Master Trust are charged to the Plan and are therefore reflected in the earnings of the investment fund to which the expenses relate. Expenses of the Plan and Master Trust attributable to the operations of the ESOP are charged against the ESOP unallocated shares account, which has no affect on the earnings in participants' accounts. Although it has not expressed any intent to do so, Bell Atlantic has the right under the Plan to discontinue all employer matching contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants will become 100% vested in their accounts. 2. ACCOUNTING POLICIES The values of Master Trust investments are determined as follows: Bell Atlantic shares and other equity securities traded on a national stock exchange are valued on the basis of the last published sales prices per share on December 31 as reported on the composite tape or, if no sales were made on that date, at the last published sales prices on the next preceding day on which sales were made; U.S. Government and other fixed income securities are valued by the Master Trust's trustee at fair value based on current market yields for investments with similar characteristics such as maturity, coupon, and quality as determined by an independent source; securities traded in the over-the-counter market and listed securities for which no sales were reported on the valuation date, are valued at the reported bid price; units in the STFF, the BNDF, the USEF, and the INTF are valued on the basis of net asset values provided by the investment managers pursuant to contractually specified methodologies which are similar to the aforementioned procedures for equity and fixed income investments; and temporary cash investments are valued at cost which approximates fair value. The contracts with the insurance companies and commercial banks included in the STFF are valued at contract value which approximates fair value. Purchases and sales of securities are reflected as of the trade date. Dividend income is recorded on the ex-dividend date. Interest earned on investments is recorded on the accrual basis. The Plan presents in the Statement of Changes in Net Assets Available for Plan Benefits its allocated share of Master Trust investment activities which includes net appreciation (depreciation) in the fair value of its investments. Net appreciation (depreciation) in the fair value of investments consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. Prepaid expenses incurred in connection with the formation of the ESOP are being amortized over 10 years on a straight-line basis. These expenses include debt placement costs and legal fees associated with the placement of the ESOP debt. The Plan participates in certain commingled investment funds. The funds' managers utilize futures and foreign currency forward contracts to minimize transaction costs and the effect of cash flows (such as contributions, transfers, and distributions) on the funds' investment performance. Futures contracts are fully collateralized and are marked to market daily. Foreign currency forward contracts are matched with the settlement of purchases and sales of foreign securities and are also marked to market daily. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. 8 3. EMPLOYEE INTEREST IN THE PLAN The interest of an employee in each type of investment of the Plan is represented by units as described in the Plan document. The number of employees participating in each investment option, the number of units and the values per unit at December 31, were as follows:
1996 1995 --------------------------------- --------------------------------- NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE EMPLOYEES OF PER EMPLOYEES OF PER PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT ------------- ----------- ------- ------------- ----------- ------- Bell Atlantic Shares Fund................... 39,377 195,670,646 $5.2611 40,622 188,280,872 $5.4372 Government Money Market Fund................... 2,859 7,030,557 1.3843 2,593 5,525,915 1.3132 Short-Term Fixed Income Fund*.................. 24,716 55,336,520 5.0931 26,908 59,861,824 4.7950 U.S. Bond Market Index Fund................... 2,753 5,291,237 1.4041 2,439 5,022,478 1.3536 U.S. Equity Index Fund.. 7,150 24,963,258 2.4644 4,887 13,991,532 2.0217 International Equity Index Fund............. 4,133 9,855,333 1.6186 3,037 6,466,550 1.4988 Loan Fund............... 8,560 -- -- 8,278 -- --
At December 31, 1996, 32,225 participants were actively contributing to the Plan; 10,493 participants were not actively contributing to the Plan. The total number of participants in the Plan was less than the sum of the number of participants shown in the schedule above because many participants were invested in more than one fund. 4. INTEREST IN BELL ATLANTIC MASTER SAVINGS TRUST BASSP'S SHARE OF MASTER TRUST NET ASSETS The Plan's allocated share of the Master Trust's net assets is based upon the total of each individual Plan participant's share of the Master Trust. The allocated share of the net assets of each fund in the Master Trust at December 31 was as follows:
1996 1995 ----- ----- Bell Atlantic Shares Fund (for the BASP)..................... -- -- Bell Atlantic Shares Fund (for the BASSP).................... 100.0% 100.0% Government Money Market Fund................................. 10.0% 7.8% Short-Term Fixed Income Fund* (for the BASP)................. -- -- Short-Term Fixed Income Fund* (for the BASSP)................ 100.0% 100.0% U.S. Bond Market Index Fund.................................. 14.9% 13.6% U.S. Equity Index Fund....................................... 12.0% 7.9% International Equity Index Fund.............................. 15.9% 13.6% Loan Fund (for the BASP)..................................... -- -- Loan Fund (for the BASSP).................................... 100.0% 100.0% ESOP Unallocated Shares Fund (for the BASP).................. -- -- ESOP Unallocated Shares Fund (for the BASSP)................. 100.0% 100.0%
* Formerly--Interest Income Fund 9 At December 31, the financial position of the Master Trust was as follows:
1996 1995 ----------- ----------- (DOLLARS IN THOUSANDS) ASSETS: Investments at fair value: Bell Atlantic Shares Fund--BASP: Bell Atlantic Corporation common shares............ $ 1,119,023 $ 1,137,316 Temporary cash investments......................... 6,288 20,610 Bell Atlantic Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 1,026,390 1,027,268 Temporary cash investments......................... 6,347 16,054 Government Money Market Fund: Temporary cash investments......................... 98,223 97,702 Short-Term Fixed Income Fund*--BASP: Contracts with insurance companies and commercial banks............................................. 325,691 491,715 Pooled Obligations................................. 178,238 -- Temporary cash investments......................... 264 80,448 Short-Term Fixed Income Fund*--BASSP: Contracts with insurance companies and commercial banks............................................. 174,538 253,352 Pooled Obligations................................. 110,360 -- Temporary cash investments......................... 110 39,980 U.S. Bond Market Index Fund: Fund shares........................................ 49,460 48,356 Temporary cash investments......................... 308 2,164 U.S. Equity Index Fund: Fund shares........................................ 483,225 341,186 Temporary cash investments......................... 3,134 17,040 International Equity Index Fund: Fund shares........................................ 96,257 70,788 Temporary cash investments......................... 1,395 1,334 Loan Fund--BASP: Loans receivable from participants................. 41,746 45,179 Loan Fund--BASSP: Loans receivable from participants................. 36,842 33,634 ESOP Unallocated Shares Fund--BASP: Bell Atlantic Corporation common shares............ 280,130 347,845 Temporary cash investments......................... 12,901 13,605 ESOP Unallocated Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 166,327 215,532 Temporary cash investments......................... 8,241 6,652 ----------- ----------- Total investments................................ 4,225,438 4,307,760 Receivables: Dividends and interest income...................... 3,370 14,086 Receivables for investments sold................... 4,785 1,693 ----------- ----------- Total assets..................................... 4,233,593 4,323,539 LIABILITIES: Payable for investments purchased................... 22,300 7,255 ----------- ----------- Net investments.................................. 4,211,293 4,316,284 =========== =========== Investments at cost: ................................. $ 3,165,758 $3,210,823 =========== ===========
* Formerly Interest Income Fund See Schedule I, Bell Atlantic Master Savings Trust Schedule of Investments. The BASSP's principal financial instrument subject to credit risk is the investment in the Master Trust. The Master Trust consists of separate investment funds, as defined by the Plan, with different investment objectives. The degree and concentration of credit risk varies by fund depending upon the 10 type and diversity of investments. The schedule of investments depicts the types of investments and their proportionate share of each investment fund. BASSP'S SHARE OF MASTER TRUST INVESTMENT ACTIVITIES. The Plan's allocated share of Master Trust investment activities is based upon the total of each individual Plan participant's share of the Master Trust investment activities during the years ended December 31, 1996 and 1995. The Master Trust's investment activities for the year ended December 31 was as follows:
1996 1995 ----------- ------------ (DOLLARS IN THOUSANDS) Investment Activities: Dividends on Bell Atlantic Corporation common shares: Non-ESOP shares............................... $ 92,836 $ 91,447 ESOP shares................................... 22,336 25,979 Other dividends................................ 10,389 7,498 Short-Term Fixed Income Fund* (BASP) income.... 28,064 34,804 Short-Term Fixed Income Fund* (BASSP) income... 14,791 17,306 Other interest................................. 16,682 15,489 Net (depreciation) appreciation in value of investments................................... (5,133) 808,956 ---------- ------------ Net investment activities.................. $179,963 $ 1,001,479 ========== ============ Allocated share of net investment activities: BASP........................................... $136,529 $ 600,602 BASSP.......................................... 43,407 400,877
* Formerly Interest Income Fund The value per share of Bell Atlantic common stock decreased from $66.88 at December 31, 1995 to $64.75 at December 31, 1996. This represents a (3.18)% decrease in the value per share. At December 31, 1996, approximately 43% of BASP assets and 64% of BASSP assets were invested in the Bell Atlantic Shares Funds. Between January 1 and April 10, 1997, Bell Atlantic common stock closing prices have ranged from $58.75 to $71.38 per share. 5. LEVERAGED ESOP NOTES PAYABLE The Leveraged ESOP notes payable bear an 8.17% interest rate subject to adjustment (maximum 10.25% and minimum 6.77%) due to changes in the Federal income tax rate or changes in the Federal law regarding the alternative minimum tax. Interest and principal payments are guaranteed by Bell Atlantic and are due on January 1 and July 1 of each year; principal payments began July 1, 1990. The following table displays the principal maturities under the note with the final payment due January 1, 2000 (in thousands): 1997.................................... $ 38,097 1998.................................... 43,713 1999.................................... 49,867 2000.................................... 27,114 -------- $158,791 ========
11 The fair value of the Leveraged ESOP notes payable is based on quoted market prices for the same or similar instruments. As of December 31, 1996, the carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR AMOUNT VALUE ----------------------- (DOLLARS IN THOUSANDS) BASP............................................... $270,150 $282,594 BASSP.............................................. 158,791 166,588 ----------- ----------- $428,941 $449,182 =========== ===========
6. TAX DETERMINATION On October 30, 1995, the Internal Revenue Service issued a ruling that the Plan meets the requirements of Section 401(a) of the Internal Revenue Code of 1986 (the "Code") and is exempt from Federal income taxes under Section 501(a) of the Code and that the ESOP portion of the Plan qualifies as an employee stock ownership plan within the meaning of Section 4975(e)(7) of the Code. The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plan's tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Code. 7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for plan benefits per the financial statements to the Form 5500:
1996 1995 ----------- ----------- (DOLLARS IN THOUSANDS) Net assets available for benefits per the financial statements............................ $ 1,449,925 $ 1,451,379 Amounts allocated to withdrawing participants.... 7,766 29,921 ----------- ----------- Net assets available for benefits per the Form 5500............................................ $ 1,442,159 $ 1,421,458 =========== ===========
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
1996 1995 ----------- ----------- (DOLLARS IN THOUSANDS) Benefits paid to participants per the financial statements....................................... $ 144,300 $ 84,066 Add: Amounts allocated to withdrawing participants at December 31,.................................. 7,766 29,921 Less: Amounts allocated to withdrawing participants at December 31,..................... 29,921 9,529 ----------- ----------- Benefits paid to participants per the Form 5500... $ 122,145 $ 104,395 =========== ===========
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. 8. PROPOSED BELL ATLANTIC-NYNEX MERGER Bell Atlantic and NYNEX announced a proposed merger under a definitive agreement entered into on April 21, 1996 and amended on July 2, 1996. Under the terms of the amended agreement, NYNEX will become a subsidiary of Bell Atlantic. NYNEX stockholders will receive 0.768 of a share 12 of Bell Atlantic common stock for each share of NYNEX common stock that they own. Bell Atlantic stockholders will continue to own their existing shares after the merger. At special meetings held in November 1996, the stockholders of both companies approved the merger. The completion of the merger is subject to a number of conditions, including certain regulatory approvals and receipt of legal opinions that the merger will be tax free. Bell Atlantic is unable to predict when it will be able to complete the merger. At this time, there are no plans regarding the impact of the merger on the BASP/BASSP. 9. PLAN TRANSFERS The line in the Statement of Changes in Net Assets described as "Transfer of ESOP Shares and participants' balances--net" includes the effect of LESOP debt service activity, the allocation of Bell Atlantic shares from the LESOP to the BASF, participant-directed transfers between investment options, and asset transfers between the BASSP and other defined contribution plans. 13 SIGNATURE PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE BELL ATLANTIC CORPORATE EMPLOYEES' BENEFITS COMMITTEE HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. Bell Atlantic Savings and Security Plan (Non-Salaried Employees) Date: April 18, 1997 By /s/ Ellen C. Wolf ---------------------------------- ELLEN C. WOLF (Member of the Bell Atlantic Corporate Employees' Benefits Committee) 14 SCHEDULE I BELL ATLANTIC MASTER SAVINGS TRUST SCHEDULE OF INVESTMENTS (DOLLARS IN THOUSANDS)
DECEMBER 31, 1996 ------------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ----------- -------- ---------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares-- 99.4%....................................... 17,282,211 shs. $728,964 $1,119,023 Temporary Cash Investments--0.6%............. $ 6,288 6,288 6,288 -------- ---------- Total.................................. 735,252 1,125,311 -------- ---------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) *Bell Atlantic Corporation Common Shares-- 99.4%....................................... 15,851,583 shs. 671,315 1,026,390 Temporary Cash Investments--0.6%............. $ 6,347 6,347 6,347 -------- ---------- Total.................................. 677,662 1,032,737 -------- ---------- GOVERNMENT MONEY MARKET FUND Temporary Cash Investments--100.0% BT Pyramid Government Securities Cash Fund. 98,223 98,223 98,223 -------- ---------- Total.................................. 98,223 98,223 -------- ---------- @SHORT-TERM FIXED INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES +Contracts with Insurance Companies and Commercial Banks--64.6%..................... American Int'l Life Assurance, 7.02% Maturing 10/1/99.......................... 5,482 5,482 5,482 American Int'l Life Assurance, 5.25% Maturing 4/1/98........................... 6,871 6,871 6,871 American Int'l Life Assurance, 7.17% Maturing 1/4/2000......................... 15,965 15,965 15,965 Hartford Life Ins. Co., 6.78% Maturing 7/1/97.................................... 7,141 7,141 7,141 John Hancock Mutual Life Ins. Co., 5.85% Maturing 6/30/98.......................... 17,099 17,099 17,099 John Hancock Mutual Life Ins. Co., 6.60% Maturing 10/1/99.......................... 7,719 7,719 7,719 ITT Hartford Life Ins. Co., 8.04% Maturing 1/1/99.................................... 20,202 20,202 20,202 Metropolitan Life Ins. Co., 5.58% Maturing 1/1/98.................................... 11,022 11,022 11,022 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98.................................... 30,866 30,866 30,866 Metropolitan Life Ins. Co., 5.08% Maturing 1/1/97.................................... 12,495 12,495 12,495 #MBL Life Assurance Corp., 3.5% to 5.0% Maturing 12/31/2004....................... 7,587 7,587 7,587 New York Life 7.00% Maturing 7/1/99........ 29,305 29,305 29,305 New York Life 5.93% Maturing 3/31/98....... 3,792 3,792 3,792 New York Life, 5.18% Maturing 7/1/98....... 17,072 17,072 17,072 New York Life, 7.20% Maturing 1/1/2000..... 17,739 17,739 17,739 New York Life, 7.98% Maturing 4/3/2000..... 16,429 16,429 16,429 New York Life, Money Market Account........ 4,798 4,798 4,798 Principal Mutual Life Ins. Co., 5.10% Maturing 1/2/97........................... 3,595 3,595 3,595 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97.......................... 22,926 22,926 22,926 Principal Mutual Life Ins. Co., 7.38% Maturing 1/1/2000......................... 8,115 8,115 8,115 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98........................... 15,499 15,499 15,499 Provident Nat'l Assurance, 5.12% Maturing 1/2/97.................................... 9,736 9,736 9,736
S-1 SCHEDULE I
DECEMBER 31, 1996 --------------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ---------- -------- -------- @SHORT-TERM FIXED INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES--(CONTINUED): Provident Nat'l Assurance, 4.59% Maturing 4/1/97....................................... $ 8,833 $ 8,833 $ 8,833 The Prudential Ins. Co. of America, 8.08% Maturing 4/1/97.............................. 5,368 5,368 5,368 The Prudential Ins. Co. of America, 5.91% Maturing 7/1/98.............................. 12,321 12,321 12,321 The Prudential Ins. Co. of America, 5.04% Maturing 1/1/98.............................. 7,714 7,714 7,714 -------- -------- 325,691 325,691 -------- -------- Pooled Obligations--35.4% BGI 1-3 Year Government Bond Index Fund...... 15,241,329 shs. 174,047 178,238 -------- -------- Temporary Cash Investments--0.0% BT Pyramid Government Securities Cash Fund... $ 264 264 264 -------- -------- Total..................................... 500,002 504,193 -------- -------- @SHORT-TERM FIXED INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) +Contracts with Insurance Companies and Commercial Banks-- 61.3% American Int'l Life Assurance, 5.11% Maturing 7/1/98....................................... $ 3,244 3,244 3,244 American Int'l Life Assurance, 7.17%, Maturing 1/4/2000..................................... 8,322 8,322 8,322 American Int'l Life Assurance, 7.02% Maturing 10/1/99...................................... 5,659 5,659 5,659 American Int'l Life Assurance, 5.25% Maturing 4/1/98....................................... 3,236 3,236 3,236 Hartford Ins. Co., 7.93%, Maturing 4/1/99..... 20,886 20,886 20,886 John Hancock Mutual Life Ins. Co., 5.81% Maturing 6/30/98............................. 8,398 8,398 8,398 John Hancock Mutual Life Ins. Co., 6.57% Maturing 10/1/99............................. 4,883 4,883 4,883 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98....................................... 13,182 13,182 13,182 Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97....................................... 4,540 4,540 4,540 Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98....................................... 7,562 7,562 7,562 New York Life, 7.28% Maturing 1/1/2000........ 5,228 5,228 5,228 New York Life, 5.88% Maturing 9/30/97......... 6,993 6,993 6,993 New York Life, 5.05% Maturing 4/1/97.......... 2,426 2,426 2,426 New York Life, 5.13% Maturing 7/1/98.......... 5,026 5,026 5,026 New York Life, 6.75% Maturing 7/1/99.......... 6,411 6,411 6,411 New York Life, 7.20% Maturing 10/1/99......... 6,131 6,131 6,131 New York Life, 5.92% Maturing 1/1/99.......... 8,041 8,041 8,041 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98....................................... 4,337 4,337 4,337 Principal Mutual Life Ins. Co., 7.30% Maturing 9/30/99...................................... 4,780 4,780 4,780 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97...................................... 13,867 13,867 13,867 Principal Mutual Life Ins. Co., 5.20% Maturing 4/1/97....................................... 5,466 5,466 5,466 Provident Nat'l Assurance, 4.62% Maturing 7/1/97....................................... 4,826 4,826 4,826 Provident Nat'l Assurance, 5.10% Maturing 4/1/97....................................... 4,805 4,805 4,805 The Prudential Ins. Co. of America, 6.78% Maturing 1/1/99.............................. 9,769 9,769 9,769 The Prudential Ins. Co. of America, 5.88% Maturing 7/1/98.............................. 6,520 6,520 6,520 -------- -------- 174,538 174,538 -------- -------- Pooled Obligations--38.7% BGI Short Term Money Market Fund............. 2,300 2,300 2,300 BGI 1-3 Year Government Bond Index Fund...... 9,240,334 shs. 105,407 108,060 -------- -------- Temporary Cash Investments--0.0% BT Pyramid Government Securities Cash Fund... $ 110 110 110 -------- -------- 107,707 110,360 -------- -------- Total..................................... 282,355 285,008 -------- --------
S-2 SCHEDULE I
DECEMBER 31, 1996 ------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- ------- ------- U.S. BOND MARKET INDEX FUND Bond Funds--99.4% BGI U.S. Debt Index Fund......................... 1,880,113 shs. $44,991 $44,744 BGI Daily U.S. Debt Index Fund................... 336,224 4,293 4,716 ------- ------- 49,284 49,460 ------- ------- Temporary Cash Investments--0.6% BT Pyramid Government Securities Cash Fund....... $ 308 308 308 ------- ------- Total........................................ 49,592 49,768 ------- ------- U.S. EQUITY INDEX FUND Pooled Common Stock--98.6% *Mellon E.B. Russell 1000 Stock Index Fund....... 1,017,440 shs. 247,399 402,283 Mellon E.B. Russell 2000 Stock Index Fund........ 156,217 30,132 46,432 Mellon E.B. Daily Opening Stock Index Fund....... 189,789 32,261 34,510 ------- ------- 309,792 483,225 ------- ------- Temporary Cash Investments--1.4% BT Pyramid Government Securities Cash Fund....... $ 3,134 3,134 3,134 ------- ------- Total........................................ 312,926 486,359 ------- ------- INTERNATIONAL EQUITY INDEX FUND Pooled Common Stock--94.6% BGI MSCI Equity Index Fund-UK.................... 145,359 shs. 1,924 2,292 BGI Europe Ex UK Equity Index Fund............... 1,003,883 13,036 14,286 BGI MSCI Equity Index Fund-Japan................. 793,840 7,340 6,493 BGI Pacific Ex Japan Equity Index Fund........... 102,313 1,223 1,353 BGI EAFE GDP Index Fund.......................... 4,817,623 65,054 71,833 ------- ------- 88,577 96,257 ------- ------- Temporary Cash Investments--5.4% BT Pyramid Government Securities Cash Fund....... $ 1,395 1,395 1,395 ------- ------- Total........................................ 89,972 97,652 ------- ------- LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES Participant Loan Obligations--7.17% to 9.50%....... 41,746 41,746 ------- ------- Total Loan Fund.............................. 41,746 41,746 ------- ------- LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) Participant Loan Obligations--7.17% to 9.50%....... 36,842 36,842 ------- ------- Total Loan Fund.............................. 36,842 36,842 ------- ------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares--95.6%.... 4,326,337 shs. 200,813 280,130 Temporary Cash Investments--4.4%................... $ 12,901 12,901 12,901 ------- ------- Total........................................ 213,714 293,031 ------- -------
S-3 SCHEDULE I
DECEMBER 31, 1996 ------------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- ---------- ---------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) Bell Atlantic Corporation Common Shares-- 95.3%....................................... 2,568,767 shs. $ 119,231 $ 166,327 Temporary Cash Investments--4.7%............. $ 8,241 8,241 8,241 ---------- ---------- Total.................................. 127,472 174,568 ---------- ---------- Grand Total............................ $3,165,758 $4,225,438 ---------- ----------
- -------- * Investment represents 5% or more of the net investments of the Master Trust. + Under these contracts the respective insurance companies and commercial banks contractually agree to the repayment of principal and the crediting of interest. The composite effective annual interest rate earned on all contracts in 1996, net of third party expenses and after the effect of cash flows, was 6.3% for the BASP and 6.2% for the BASSP. # MBL Life Assurance Corporation is the successor to Mutual Benefit Life Insurance Company which was placed under a rehabilitation plan in 1993. The contract interest rate will vary based upon the actual performance of the underlying investments. @ Formerly Interest Income Fund Percentages represent percentage of total investments of each fund. S-4 EX-24.2 5 NON-SALARIED AUDITOR'S CONSENT EXHIBIT 24 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statements of Bell Atlantic Corporation on Form S-8 (File Nos. 33-10378 and 2-92149) of our report dated April 10, 1997 on our audits of the financial statements of the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) as of December 31, 1996 and 1995 and for the years then ended, and the accompanying schedule of investments as of December 31, 1996, which report is included in this Annual Report on Form 11-K, which is filed as Exhibit 99b to Form 10-K of Bell Atlantic Corporation for the year ended December 31, 1996. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 18, 1997 -----END PRIVACY-ENHANCED MESSAGE-----