-----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, UUu1YruiY2w4uBiK9HbYP1qL5UnYLMxGpo0JSCfh4UeK4QmSKKN73vEj7LK8O8/Y hQetEs/qxz/M6Yc02WJlYw== 0000950109-96-002466.txt : 19960430 0000950109-96-002466.hdr.sgml : 19960430 ACCESSION NUMBER: 0000950109-96-002466 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960429 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: 96553000 BUSINESS ADDRESS: STREET 1: 1717 ARCH ST 47W CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2159636000 MAIL ADDRESS: 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, 1995 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, 1995. 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, 1995. 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 /s/ William O. Albertini By___________________________________ WILLIAM O. ALBERTINI (Executive Vice President andChief Financial Officer) April 29, 1996 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- 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, 1995 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, 1995 AND 1994 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, 1995 and 1994........................................ 3-4 Statements of Changes in Net Assets Available for Plan Bene- fits for the years ended December 31, 1995 and 1994.......... 5-6 Notes to Financial Statements................................. 7-12 Signature....................................................... 13 Bell Atlantic Master Savings Trust Schedule of Investments--De- cember 31, 1995................................................ S1-S4 EXHIBIT: EXHIBIT NUMBER - -------- -------------- Consent of Independent Accountants.............................. 24
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, 1995 and 1994, 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, 1995 and 1994, 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, 1995 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 19, 1996 2 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. 3 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1994* (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED ----------------------------------------------------------------------------- -------------------- U.S. BOND INTERNATIONAL BELL ESOP BELL ATLANTIC GOVERNMENT INTEREST 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).................. $653,041 $89,543 $542,520 $33,279 $224,127 $55,484 $47,118 $218,636 $319,580 Allocations and contributions receivable.......... 443 92 500 52 294 194 -- 1,771 -- Fund, plan and other transfers receivable--net..... 3,437 -- 2,189 -- 160 638 252 -- -- Prepaid expenses.... -- -- -- -- -- -- -- -- 792 -------- ------- -------- ------- -------- ------- ------- -------- -------- Total Assets.... 656,921 89,635 545,209 33,331 224,581 56,316 47,370 220,407 320,372 -------- ------- -------- ------- -------- ------- ------- -------- -------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- -- 351,248 Interest payable.... -- -- -- -- -- -- -- -- 14,348 Fund, plan and other transfers payable--net........ -- 1,499 -- 1,068 -- -- -- -- -- Administrative expenses payable.... 329 118 575 57 242 28 -- 102 40 -------- ------- -------- ------- -------- ------- ------- -------- -------- Total Liabili- ties............ 329 1,617 575 1,125 242 28 -- 102 365,636 -------- ------- -------- ------- -------- ------- ------- -------- -------- Net assets available (deficit) for Plan benefits (Note 3)... $656,592 $88,018 $544,634 $32,206 $224,339 $56,288 $47,370 $220,305 $(45,264) ======== ======= ======== ======= ======== ======= ======= ======== ======== TOTAL ASSETS: ---------- Allocated share of Master Trust net investments (Note 4).................. $2,183,328 Allocations and contributions receivable.......... 3,346 Fund, plan and other transfers receivable--net..... 6,676 Prepaid expenses.... 792 ---------- Total Assets.... 2,194,142 ---------- LIABILITIES: Notes payable (Note 5).................. 351,248 Interest payable.... 14,348 Fund, plan and other transfers payable--net........ 2,567 Administrative expenses payable.... 1,491 ---------- Total Liabili- ties............ 369,654 ---------- Net assets available (deficit) for Plan benefits (Note 3)... $1,824,488 ==========
* Certain amounts have been reclassified for comparative purposes. 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, 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 activi- ties (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 activi- ties (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. 5 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1994* (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED -------------------------------------------------------------------------- --------------------- BELL U.S. BOND U.S. INTERNATIONAL BELL ESOP ATLANTIC GOVERNMENT INTEREST MARKET EQUITY EQUITY ATLANTIC UNALLOCATED SHARES MONEY MARKET INCOME INDEX INDEX INDEX LOAN SHARES SHARES FUND FUND FUND FUND FUND FUND FUND FUND FUND -------- ------------ -------- --------- -------- ------------- ------- -------- ----------- Net assets available for Plan benefits, December 31, 1993........... $743,184 $88,927 $529,962 $37,600 $226,273 $37,093 $46,171 $228,746 $ 30,061 -------- ------- -------- ------- -------- ------- ------- -------- -------- Employee contributions...... 38,202 4,294 24,551 2,843 17,119 5,847 -- -- -- Employing company contributions and allocations........ 1,397 -- -- -- -- -- -- 1,347 46,068 Transfer of ESOP Shares and participants' balances--net...... (5,582) (1,765) (1,764) (5,066) (2,066) 14,311 (157) 34,869 (35,582) -------- ------- -------- ------- -------- ------- ------- -------- -------- Total allocations, contributions and transfers... 34,017 2,529 22,787 (2,223) 15,053 20,158 (157) 36,216 10,486 Allocated share of Master Trust net investment activities (Note 4)................. (75,428) 3,670 33,650 (1,107) 779 3,011 3,466 (29,041) (56,020) -------- ------- -------- ------- -------- ------- ------- -------- -------- Net additions... (41,411) 6,199 56,437 (3,330) 15,832 23,169 3,309 7,175 (45,534) -------- ------- -------- ------- -------- ------- ------- -------- -------- Less: Distributions to participants... 44,607 6,986 41,234 2,020 17,528 3,917 2,110 15,439 -- Interest expense......... -- -- -- -- -- -- -- -- 29,531 Amortization of capitalized ESOP expenses........ -- -- -- -- -- -- -- -- 158 Administrative expenses........ 574 122 531 44 238 57 -- 177 102 -------- ------- -------- ------- -------- ------- ------- -------- -------- Total deductions...... 45,181 7,108 41,765 2,064 17,766 3,974 2,110 15,616 29,791 -------- ------- -------- ------- -------- ------- ------- -------- -------- Net assets available (deficit) for Plan benefits, December 31, 1994 (Note 3)........... $656,592 $88,018 $544,634 $32,206 $224,339 $56,288 $47,370 $220,305 $(45,264) ======== ======= ======== ======= ======== ======= ======= ======== ======== TOTAL ----------- Net assets available for Plan benefits, December 31, 1993........... $1,968,017 ----------- Employee contributions...... 92,856 Employing company contributions and allocations........ 48,812 Transfer of ESOP Shares and participants' balances--net...... (2,802) ----------- Total allocations, contributions and transfers... 138,866 Allocated share of Master Trust net investment activities (Note 4)................. (117,020) ----------- Net additions... 21,846 ----------- Less: Distributions to participants... 133,841 Interest expense......... 29,531 Amortization of capitalized ESOP expenses........ 158 Administrative expenses........ 1,845 ----------- Total deductions...... 165,375 ----------- Net assets available (deficit) for Plan benefits, December 31, 1994 (Note 3)........... $1,824,488 ===========
* Certain amounts have been reclassified for comparative purposes. 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, 1995. 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. In 1995 and 1994, Bell Atlantic and its participating subsidiaries made additional contributions of $1,325,000 and $6,594,000 respectively. 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. Participants may invest their contributions in a Bell Atlantic Shares Fund, a U.S. Equity Index Fund ("USEF"), an International Equity Index Fund ("INTF"), a U.S. Bond Market Index Fund ("BNDF"), an Interest Income Fund ("IIF"), or a Government Money Market Fund ("GMMF"). Employer matching contributions are invested only in the Bell Atlantic Shares Fund until employees reach age 55 and one year of service. 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 $187,702 and $197,300 in 1995 and 1994, 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"). 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. 7 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 USEF, the INTF, and the BNDF 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 IIF 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:
1995 1994 --------------------------------- --------------------------------- NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE EMPLOYEES OF PER EMPLOYEES OF PER PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT ------------- ----------- ------- ------------- ----------- ------- Bell Atlantic Shares Fund................... 20,688 210,833,899 $5.3610 23,719 218,636,954 $3.9820 Government Money Market Fund................... 6,016 9,769,403 8.8173 6,977 10,533,509 8.3178 Interest Income Fund.... 14,990 118,499,075 4.6165 17,083 124,761,215 4.3437 U.S. Bond Market Index Fund................... 3,513 31,722,995 1.3454 3,433 28,062,315 1.1382 U.S. Equity Index Fund.. 11,153 24,644,414 12.9665 11,790 23,490,913 9.5057 International Equity Index Fund............. 4,785 40,085,108 1.4950 5,095 41,224,009 1.3504 Loan Fund............... 4,862 -- -- 5,635 -- --
At December 31, 1995, 14,206 participants were actively contributing to the Plan; 8,542 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:
1995 1994 ----- ----- Bell Atlantic Shares Fund (for the BASP)..................... 100.0% 100.0% Bell Atlantic Shares Fund (for the BASSP).................... -- -- Government Money Market Fund................................. 92.2% 93.2% Interest Income Fund (for the BASP).......................... 100.0% 100.0% Interest Income Fund (for the BASSP)......................... -- -- U.S. Bond Market Index Fund.................................. 86.4% 87.2% U.S. Equity Index Fund....................................... 92.1% 94.0% International Equity Index Fund.............................. 86.4% 88.9% 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)................. -- --
9 At December 31, the financial position of the Master Trust was as follows:
1995 1994 ----------- ----------- (DOLLARS IN THOUSANDS) ASSETS: Investments at fair value: Bell Atlantic Shares Fund--BASP: Bell Atlantic Corporation common shares............ $ 1,137,316 $ 860,361 Temporary cash investments......................... 20,610 12,656 Bell Atlantic Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 1,027,268 710,249 Temporary cash investments......................... 16,054 26,074 Government Money Market Fund: Temporary cash investments......................... 97,702 96,256 Interest Income Fund--BASP: Contracts with insurance companies and commercial banks............................................. 491,715 540,659 Temporary cash investments......................... 80,448 3,105 Interest Income Fund--BASSP: Contracts with insurance companies and commercial banks............................................. 253,352 269,687 Temporary cash investments......................... 39,980 476 U.S. Bond Market Index Fund: Fund shares........................................ 48,356 38,440 Temporary cash investments......................... 2,164 68 U.S. Equity Index Fund: Fund shares........................................ 341,186 239,178 Temporary cash investments......................... 17,040 917 International Equity Index Fund: Fund shares........................................ 70,788 62,152 Temporary cash investments......................... 1,334 811 Loan Fund--BASP: Loans receivable from participants................. 45,179 47,690 Loan Fund--BASSP: Loans receivable from participants................. 33,634 30,420 ESOP Unallocated Shares Fund--BASP: Bell Atlantic Corporation common shares............ 347,845 305,841 Temporary cash investments......................... 13,605 13,680 ESOP Unallocated Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 215,532 191,615 Temporary cash investments......................... 6,652 8,635 ----------- ----------- Total investments................................ 4,307,760 3,458,970 Receivables: Dividends and interest income...................... 14,086 4,476 Receivables for investments sold................... 1,693 7,113 ----------- ----------- Total assets..................................... 4,323,539 3,470,559 LIABILITIES: Payable for investments purchased................... 7,255 23,404 ----------- ----------- Net investments.................................. 4,316,284 3,447,155 =========== =========== Investments at cost: ................................. $3,210,823 $3,125,178 =========== ===========
See Schedule I, Bell Atlantic Master Savings Trust Schedule of Investments. 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. 10 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, 1995 and 1994. The Master Trust's investment activities for the years ended December 31 were as follows:
1995 1994 ----------- ----------- (DOLLARS IN THOUSANDS) Investment Activities: Dividends on Bell Atlantic Corporation common shares: Non-ESOP shares................................ $ 91,447 $ 84,295 ESOP shares.................................... 25,979 29,825 Other dividends................................. 7,498 7,138 Interest Income Fund (BASP) income.............. 34,804 33,650 Interest Income Fund (BASSP) income............. 17,306 15,554 Other interest.................................. 15,489 13,597 Net appreciation (depreciation) in value of investments.................................... 808,956 (405,143) ----------- ---------- Net investment activities................... $ 1,001,479 $(221,084) =========== ========== Allocated share of net investment activities: BASP............................................ $ 600,602 $(117,020) BASSP........................................... 400,877 (104,064)
The value per share of Bell Atlantic common stock increased from $49.75 at December 31, 1994 to $66.88 at December 31, 1995. This represents a 34.42% increase in the value per share. At December 31, 1995, approximately 43% of BASP assets and 63% of BASSP assets were invested in the Bell Atlantic Shares Funds. Between January 1 and April 19, 1996, Bell Atlantic common stock closing prices have ranged from $59.50 to $74.38 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 outstanding principal is payable in amounts ranging from 8.9% to 16.3% of the original amount ($485.7 million) from 1996 to 2000, respectively. The final payment will be made on January 1, 2000. The principal amounts under the notes are due as follows (in thousands): 1996..................................... $ 52,630 1997..................................... 60,808 1998..................................... 69,771 1999..................................... 79,594 2000..................................... 43,277 -------- $306,080 ========
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, 1995, the carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR AMOUNT VALUE ----------------------- (DOLLARS IN THOUSANDS) BASP............................................... $306,080 $328,271 BASSP.............................................. 191,765 205,667 ----------- ----------- $497,845 $533,938 =========== ===========
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:
1995 -------------------------- (DOLLARS IN THOUSANDS) Net assets available for benefits per the financial statements.................................... $2,354,918 Amounts allocated to withdrawing participants.. 83,460 ---------- Net assets available for benefits per the Form 5500.......................................... $2,271,458 ==========
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
1995 -------------------------- (DOLLARS IN THOUSANDS) Benefits paid to participants per the financial statements.................................... $182,695 Add: Amounts allocated to withdrawing participants at December 31, 1995............. 83,460 Less: Amounts allocated to withdrawing participants at December 31, 1994............. 12,030 -------- Benefits paid to participants per the Form 5500.......................................... $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. 12 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 29, 1996 /s/ Ellen C. Wolf By__________________________________ ELLEN C. WOLF (Member of the Bell Atlantic Corporate Employees' Benefits Committee) 13 SCHEDULE I BELL ATLANTIC MASTER SAVINGS TRUST SCHEDULE OF INVESTMENTS (DOLLARS IN THOUSANDS)
DECEMBER 31, 1995 ------------------------------------ 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-- 98.2%....................................... 17,006,600 shs. $709,450 $1,137,316 Temporary Cash Investments--1.8%............. $ 20,610 20,610 20,610 -------- ---------- Total.................................. 730,060 1,157,926 -------- ---------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares-- 98.5%....................................... 15,361,011 shs. 638,993 1,027,268 Temporary Cash Investments--1.5%............. $ 16,054 16,054 16,054 -------- ---------- Total.................................. 655,047 1,043,322 -------- ---------- GOVERNMENT MONEY MARKET FUND Temporary Cash Investments--100.0% BT Pyramid Government Securities Cash Fund. 97,702 97,702 97,702 -------- ---------- Total.................................. 97,702 97,702 -------- ---------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES +Contracts with Insurance Companies and Commercial Banks--85.9%..................... American Int'l Life Assurance, 5.41% Maturing 6/28/96.......................... 5,428 5,428 5,428 American Int'l Life Assurance, 7.02% Maturing 10/1/99.......................... 6,480 6,480 6,480 American Int'l Life Assurance, 5.25% Maturing 4/1/98........................... 9,669 9,669 9,669 American Int'l Life Assurance, 7.17% Maturing 1/4/2000......................... 18,841 18,841 18,841 Continental Assurance, 8.75% Maturing 4/1/96.................................... 12,078 12,078 12,078 Hartford Life Ins. Co., 6.78% Maturing 7/1/97.................................... 8,458 8,458 8,458 John Hancock Mutual Life Ins. Co., 5.45% Maturing 4/1/96........................... 18,173 18,173 18,173 John Hancock Mutual Life Ins. Co., 5.85% Maturing 6/30/98.......................... 20,077 20,077 20,077 John Hancock Mutual Life Ins. Co., 6.60% Maturing 10/1/99.......................... 10,536 10,536 10,536 ITT Hartford Life Ins. Co., 8.04% Maturing 1/1/99.................................... 23,642 23,642 23,642 Metropolitan Life Ins. Co., 5.58% Maturing 1/1/98.................................... 13,209 13,209 13,209 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98.................................... 36,674 36,674 36,674 Metropolitan Life Ins. Co., 5.08% Maturing 1/1/97.................................... 22,078 22,078 22,078 #MBL Life Assurance Corp., 3.5% to 5.0% Maturing 12/31/2004....................... 7,296 7,296 7,296 New York Life 7.00% Maturing 7/1/99........ 34,723 34,723 34,723 New York Life 5.93% Maturing 3/31/98....... 4,528 4,528 4,528 New York Life, 5.18% Maturing 7/1/98....... 20,541 20,541 20,541 New York Life, 7.20% Maturing 1/1/2000..... 20,930 20,930 20,930 New York Life, 7.98% Maturing 4/3/2000..... 19,238 19,238 19,238 New York Life, Money Market Account........ 5,658 5,658 5,658 Principal Mutual Life Ins. Co., 5.10% Maturing 1/2/97........................... 13,049 13,049 13,049 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97.......................... 27,391 27,391 27,391 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96.......................... 7,358 7,358 7,358 Principal Mutual Life Ins. Co., 7.38% Maturing 1/1/2000......................... 9,557 9,557 9,557 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98........................... 18,499 18,499 18,499 Provident Nat'l Assurance, 5.12% Maturing 1/2/97.................................... 26,175 26,175 26,175
S-1 SCHEDULE I
DECEMBER 31, 1995 --------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES-- (CONTINUED): Provident Nat'l Assurance, 4.59% Maturing 4/1/97.... $24,921 $ 24,921 $ 24,921 The Prudential Ins. Co. of America, 9.06% Maturing 4/1/96............................................. 9,939 9,939 9,939 The Prudential Ins. Co. of America, 8.08% Maturing 4/1/97............................................. 12,556 12,556 12,556 The Prudential Ins. Co. of America, 5.91% Maturing 7/1/98............................................. 14,721 14,721 14,721 The Prudential Ins. Co. of America, 5.04% Maturing 1/1/98............................................. 9,292 9,292 9,292 -------- -------- 491,715 491,715 -------- -------- Temporary Cash Investments--14.1% BT Pyramid Government Securities Cash Fund......... 80,448 80,448 80,448 -------- -------- Total........................................... 572,163 572,163 -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN +Contracts with Insurance Companies and Commercial Banks--86.4% American Int'l Life Assurance, 5.11% Maturing 7/1/98............................................. 5,687 5,687 5,687 American Int'l Life Assurance, 7.17%, Maturing 1/4/2000........................................... 9,591 9,591 9,591 American Int'l Life Assurance, 7.02% Maturing 10/1/99............................................ 6,531 6,531 6,531 American Int'l Life Assurance, 5.25% Maturing 4/1/98............................................. 4,594 4,594 4,594 Continental Assurance, 8.75% Maturing 7/1/96........ 3,720 3,720 3,720 Hartford Ins. Co., 7.93%, Maturing 4/1/99........... 23,901 23,901 23,901 John Hancock Mutual Life Ins. Co., 5.21% Maturing 4/1/96............................................. 6,602 6,602 6,602 John Hancock Mutual Life Ins. Co., 5.81% Maturing 6/30/98............................................ 9,708 9,708 9,708 John Hancock Mutual Life Ins. Co., 6.57% Maturing 10/1/99............................................ 7,242 7,242 7,242 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98... 15,299 15,299 15,299 Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97... 11,554 11,554 11,554 Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98... 8,887 8,887 8,887 New York Life, 7.28% Maturing 1/1/2000.............. 6,019 6,019 6,019 New York Life, 5.88% Maturing 9/30/97............... 8,162 8,162 8,162 New York Life, 5.35% Maturing 7/1/96................ 5,797 5,797 5,797 New York Life, 5.05% Maturing 4/1/97................ 4,848 4,848 4,848 New York Life, 5.13% Maturing 7/1/98................ 5,908 5,908 5,908 New York Life, 6.75% Maturing 7/1/99................ 7,419 7,419 7,419 New York Life, 7.20% Maturing 10/1/99............... 7,064 7,064 7,064 New York Life, 5.92% Maturing 1/1/99................ 9,379 9,379 9,379 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98............................................. 5,057 5,057 5,057 Principal Mutual Life Ins. Co., 7.30% Maturing 9/30/99............................................ 5,502 5,502 5,502 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97............................................ 16,182 16,182 16,182 Principal Mutual Life Ins. Co., 5.20% Maturing 4/1/97............................................. 9,631 9,631 9,631 Principal Mutual Life Ins. Co., 7.84% Maturing 7/1/96............................................. 1,873 1,873 1,873 Provident Nat'l Assurance, 4.62% Maturing 7/1/97.... 13,376 13,376 13,376 Provident Nat'l Assurance, 5.10% Maturing 4/1/97.... 6,161 6,161 6,161 The Prudential Ins. Co. of America, 6.78% Maturing 1/1/99............................................. 11,303 11,303 11,303 The Prudential Ins. Co. of America, 5.88% Maturing 7/1/98............................................. 7,610 7,610 7,610 The Prudential Ins. Co. of America, 8.10% Maturing 7/1/96............................................. 8,745 8,745 8,745 -------- -------- 253,352 253,352 -------- -------- Temporary Cash Investments--13.6% BT Pyramid Government Securities Cash Fund......... 39,980 39,980 39,980 -------- -------- Total........................................... 293,332 293,332 -------- --------
S-2 SCHEDULE I
DECEMBER 31, 1995 ------------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ---------- ------- ------- U.S. BOND MARKET INDEX FUND Bond Funds--99.8% Wells Fargo--U.S. Debt Index Fund............... 1,880,113 shs. $41,979 $43,134 Wells Fargo--Daily U.S. Debt Market Fund........ 386,205 4,895 5,222 ------- ------- 46,874 48,356 ------- ------- Temporary Cash Investments--0.2% BT Pyramid Government Securities Cash Fund...... $ 2,164 2,164 2,164 ------- ------- Total....................................... 49,038 50,520 ------- ------- U.S. EQUITY INDEX FUND Pooled Common Stock--95.2% *Mellon E.B. Russell 1000 Index Fund............ 920,566 shs. 206,680 297,110 Mellon E.B. Russell 2000 Index Fund............. 113,227 23,437 33,834 E.B. Daily Opening Stock Index Fund............. 67,578 9,719 10,242 ------- ------- 239,836 341,186 ------- ------- Temporary Cash Investments--4.8% BT Pyramid Government Securities Cash Fund...... $ 17,040 17,040 17,040 ------- ------- Total....................................... 256,876 358,226 ------- ------- INTERNATIONAL EQUITY INDEX FUND Pooled Common Stock--98.1% Wells Fargo--MSCI Equity Index Fund-HIK......... 27,617 shs. 328 343 Wells Fargo--Europe Ex UK Equity Index Fund..... 177,885 2,036 2,129 Wells Fargo--MSCI Equity Index Fund-Japan....... 164,989 1,513 1,600 Wells Fargo--Pacific Ex Japan Equity Index Fund. 20,570 214 225 Wells Fargo--EAFE GDP Index Fund A.............. 4,815,656 63,743 66,491 ------- ------- 67,834 70,788 ------- ------- Temporary Cash Investments--1.9% BT Pyramid Government Securities Cash Fund...... $ 1,334 1,334 1,334 ------- ------- Total....................................... 69,168 72,122 ------- ------- LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES Participant Loan Obligations--7.58% to 10%........ 45,179 45,179 ------- ------- Total Loan Fund............................. 45,179 45,179 ------- ------- LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN Participant Loan Obligations--7.58% to 10%........ 33,634 33,634 ------- ------- Total Loan Fund............................. 33,634 33,634 ------- ------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares--96.2%... 5,144,160 shs. 238,773 347,845 Temporary Cash Investments--3.8%.................. $ 13,605 13,605 13,605 ------- ------- Total....................................... 252,378 361,450 ------- -------
S-3 SCHEDULE I
DECEMBER 31, 1995 ------------------------------------ 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 Bell Atlantic Corporation Common Shares-- 97.0%....................................... 3,222,909 shs. $ 149,594 $ 215,532 Temporary Cash Investments--3.0%............. $ 6,652 6,652 6,652 ---------- ---------- Total.................................. 156,246 222,184 ---------- ---------- Grand Total............................ $3,210,823 $4,307,760 ---------- ----------
- -------- * 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 1995, net of third party expenses and after the effect of cash flows, was 6.2% for the BASP and 6.1% for the BASSP. Each quarter a projected annualized interest rate is computed for the BASP and BASSP. The actual yield may vary from the projected interest rate depending upon the rates for new contracts that have been added to the Funds, actual interest earned, payment performance of contract issuers, the timing of cash flows into and out of the Funds, and the timing of the investment of those cash flows. # 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 performance of the underlying investments. Percentages represent percentage of total investments of each fund. S-4 EX-24.1 3 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 19, 1996 on our audits of the financial statements of the Bell Atlantic Savings Plan for Salaried Employees as of December 31, 1995 and 1994 and for the years then ended, and the accompanying schedule of investments as of December 31, 1995, 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, 1995. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 29, 1996 EX-99.B 4 NON-SALARIED 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, 1995 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, 1995 AND 1994 BELL ATLANTIC SAVINGS AND SECURITY PLAN 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, 1995 and 1994........................................ 3-4 Statements of Changes in Net Assets Available for Plan Bene- fits for the years ended December 31, 1995 and 1994 ......... 5-6 Notes to Financial Statements................................. 7-12 Signature....................................................... 13 Bell Atlantic Master Savings Trust Schedule of Investments--De- cember 31, 1995................................................ S1-S4 EXHIBIT: EXHIBIT NUMBER - -------- -------------- Consent of Independent Accountants ............................. 24
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, 1995 and 1994, 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, 1995 and 1994, 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, 1995 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 19, 1996 2 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. 3 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1994* (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)............ $560,152 $6,530 $269,764 $4,872 $14,197 $6,947 $30,420 $173,881 $197,064 Allocations and contributions receivable.......... 1,223 70 1,758 50 203 113 -- 4,890 -- Fund, plan and other transfers receivable--net..... 6,432 -- 339 -- -- -- -- -- -- Prepaid expenses.... -- -- -- -- -- -- -- -- 496 -------- ------ -------- ------ ------- ------ ------- -------- -------- Total Assets.... 567,807 6,600 271,861 4,922 14,400 7,060 30,420 178,771 197,560 -------- ------ -------- ------ ------- ------ ------- -------- -------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- -- 220,063 Accrued interest.... -- -- -- -- -- -- -- -- 8,990 Fund, plan and other transfers payable-- net................. -- 220 -- 64 34 2 34 -- -- Administrative expenses payable.... 718 11 583 12 55 10 -- 265 25 -------- ------ -------- ------ ------- ------ ------- -------- -------- Total Liabili- ties............ 718 231 583 76 89 12 34 265 229,078 -------- ------ -------- ------ ------- ------ ------- -------- -------- Net assets available (deficit) for Plan benefits (Note 3)... $567,089 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $178,506 $(31,518) ======== ====== ======== ====== ======= ====== ======= ======== ======== TOTAL ASSETS: ---------- Allocated share of Master Trust net investments (Note 4)............ $1,263,827 Allocations and contributions receivable.......... 8,307 Fund, plan and other transfers receivable--net..... 6,771 Prepaid expenses.... 496 ---------- Total Assets.... 1,279,401 ---------- LIABILITIES: Notes payable (Note 5).................. 220,063 Accrued interest.... 8,990 Fund, plan and other transfers payable-- net................. 354 Administrative expenses payable.... 1,679 ---------- Total Liabili- ties............ 231,086 ---------- Net assets available (deficit) for Plan benefits (Note 3)... $1,048,315 ==========
* Certain amounts have been reclassified for comparative purposes. 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, 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. 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, 1994* (DOLLARS IN THOUSANDS)
NON-PARTICIPANT PARTICIPANT DIRECTED DIRECTED ---------------------------------------------------------------------- --------------------- BELL GOVERNMENT U.S. BOND U.S. INTERNATIONAL BELL ESOP ATLANTIC MONEY INTEREST 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, 1993........... $642,767 $5,769 $250,832 $4,647 $11,498 $3,800 $25,284 $173,505 $ 18,891 $1,136,993 -------- ------ -------- ------ ------- ------ ------- -------- -------- ---------- Employee contributions...... 35,988 1,027 28,900 812 3,112 1,521 -- -- -- 71,360 Employing company contributions and allocations........ 449 -- -- -- -- -- -- 11,257 26,974 38,680 Transfer of ESOP Shares and participants' balances--net...... (12,256) (236) (2,902) (229) 442 1,661 3,792 28,223 (22,850) (4,355) -------- ------ -------- ------ ------- ------ ------- -------- -------- ---------- Total allocations, contributions and transfers... 24,181 791 25,998 583 3,554 3,182 3,792 39,480 4,124 105,685 Allocated share of Master Trust net investment activities (Note 4)................. (68,052) 255 15,554 (137) 52 331 1,751 (21,178) (32,640) (104,064) -------- ------ -------- ------ ------- ------ ------- -------- -------- ---------- Net additions... (43,871) 1,046 41,552 446 3,606 3,513 5,543 18,302 (28,516) 1,621 -------- ------ -------- ------ ------- ------ ------- -------- -------- ---------- Less: Distributions to participants.... 30,738 428 20,567 233 764 249 441 13,012 -- 66,432 Interest expense......... -- -- -- -- -- -- -- -- 21,725 21,725 Amortization of capitalized ESOP expenses........ -- -- -- -- -- -- -- -- 100 100 Administrative expenses........ 1,069 18 539 14 29 16 -- 289 68 2,042 -------- ------ -------- ------ ------- ------ ------- -------- -------- ---------- Total deductions...... 31,807 446 21,106 247 793 265 441 13,301 21,893 90,299 -------- ------ -------- ------ ------- ------ ------- -------- -------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1994 (Note 3)........... $567,089 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $178,506 $(31,518) $1,048,315 ======== ====== ======== ====== ======= ====== ======= ======== ======== ==========
* Certain amounts have been reclassified for comparative purposes. 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, 1995. 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 1995 and 1994, Bell Atlantic and its participating subsidiaries made additional contributions of $12,231,000 and $11,756,000, respectively. 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. Participants may invest their contributions in a Bell Atlantic Shares Fund, a U.S. Equity Index Fund ("USEF"), an International Equity Index Fund ("IEIF"), a U.S. Bond Market Index Fund ("BNDF"), an Interest Income Fund ("IIF"), or a Government Money Market Fund ("GMMF"). Employer matching contributions are invested only in the Bell Atlantic Shares Fund until employees reach age 55 and ten years of service. 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 $72,656 and $17,041 in 1995 and 1994, 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 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. 7 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 USEF, the INTF, and the BNDF 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 IIF 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:
1995 1994 --------------------------------- --------------------------------- NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE EMPLOYEES OF PER EMPLOYEES OF PER PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT ------------- ----------- ------- ------------- ----------- ------- Bell Atlantic Shares Fund................... 40,622 188,280,872 $5.4372 41,775 182,342,498 $4.0492 Government Money Market Fund................... 2,593 5,525,915 1.3132 2,376 4,978,550 1.2409 Interest Income Fund.... 26,908 59,861,824 4.7950 27,891 59,556,987 4.5207 U.S. Bond Market Index Fund................... 2,439 5,022,478 1.3536 2,015 4,215,705 1.1472 U.S. Equity Index Fund.. 4,887 13,991,532 2.0217 3,975 9,620,307 1.4871 International Equity Index Fund............. 3,037 6,466,550 1.4988 2,467 5,165,442 1.3566 Loan Fund............... 8,278 -- -- 7,338 -- --
At December 31, 1994, 33,871 participants were actively contributing to the Plan; 10,372 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:
1995 1994 ----- ----- Bell Atlantic Shares Fund (for the BASP)..................... -- -- Bell Atlantic Shares Fund (for the BASSP).................... 100.0% 100.0% Government Money Market Fund................................. 7.8% 6.8% Interest Income Fund (for the BASP).......................... -- -- Interest Income Fund (for the BASSP)......................... 100.0% 100.0% U.S. Bond Market Index Fund.................................. 13.6% 12.8% U.S. Equity Index Fund....................................... 7.9% 6.0% International Equity Index Fund.............................. 13.6% 11.1% 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%
9 At December 31, the financial position of the Master Trust was as follows:
1995 1994 ----------- ----------- (DOLLARS IN THOUSANDS) ASSETS: Investments at fair value: Bell Atlantic Shares Fund--BASP: Bell Atlantic Corporation common shares............ $ 1,137,316 $ 860,361 Temporary cash investments......................... 20,610 12,656 Bell Atlantic Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 1,027,268 710,249 Temporary cash investments......................... 16,054 26,074 Government Money Market Fund: Temporary cash investments......................... 97,702 96,256 Interest Income Fund--BASP: Contracts with insurance companies and commercial banks............................................. 491,715 540,659 Temporary cash investments......................... 80,448 3,105 Interest Income Fund--BASSP: Contracts with insurance companies and commercial banks............................................. 253,352 269,687 Temporary cash investments......................... 39,980 476 U.S. Bond Market Index Fund: Fund shares........................................ 48,356 38,440 Temporary cash investments......................... 2,164 68 U.S. Equity Index Fund: Fund shares........................................ 341,186 239,178 Temporary cash investments......................... 17,040 917 International Equity Index Fund: Fund shares........................................ 70,788 62,152 Temporary cash investments......................... 1,334 811 Loan Fund--BASP: Loans receivable from participants................. 45,179 47,690 Loan Fund--BASSP: Loans receivable from participants................. 33,634 30,420 ESOP Unallocated Shares Fund--BASP: Bell Atlantic Corporation common shares............ 347,845 305,841 Temporary cash investments......................... 13,605 13,680 ESOP Unallocated Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 215,532 191,615 Temporary cash investments......................... 6,652 8,635 ----------- ----------- Total investments................................ 4,307,760 3,458,970 Receivables: Dividends and interest income...................... 14,086 4,476 Receivables for investments sold................... 1,693 7,113 ----------- ----------- Total assets..................................... 4,323,539 3,470,559 LIABILITIES: Payable for investments purchased................... 7,255 23,404 ----------- ----------- Net investments.................................. 4,316,284 3,447,155 =========== =========== Investments at cost: ................................. $3,210,823 $3,125,178 =========== ===========
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 type and diversity of investments. The schedule of investments depicts the types of investments and their proportionate share of each investment fund. 10 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, 1995 and 1994. The Master Trust's investment activities for the year ended December 31 was as follows:
1995 1994 ----------- ----------- (DOLLARS IN THOUSANDS) Investment Activities: Dividends on Bell Atlantic Corporation common shares: Non-ESOP shares................................ $ 91,447 $ 84,295 ESOP shares.................................... 25,979 29,825 Other dividends................................. 7,498 7,138 Interest Income Fund (BASP) income.............. 34,804 33,650 Interest Income Fund (BASSP) income............. 17,306 15,554 Other interest.................................. 15,489 13,597 Net appreciation (depreciation) in value of in- vestments...................................... 808,956 (405,143) ----------- ---------- Net investment activities................... $ 1,001,479 (221,084) =========== ========== Allocated share of net investment activities: BASP............................................ $ 600,602 $(117,020) BASSP........................................... 400,877 (104,064)
The value per share of Bell Atlantic common stock increased from $49.75 at December 31, 1994 to $66.88 at December 31, 1995. This represents a 34.42% increase in the value per share. At December 31, 1995, approximately 43% of BASP assets and 63% of BASSP assets were invested in the Bell Atlantic Shares Funds. Between January 1 and April 19, 1996, Bell Atlantic common stock closing prices have ranged from $59.50 to $74.38 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 outstanding principal is payable in amounts ranging from 8.9% to 16.3% of the original amount ($304.3 million) from 1996 to 2000, respectively. The final payment will be made on January 1, 2000. The principal amounts under the notes are due as follows (in thousands): 1996.................................... $ 32,974 1997.................................... 38,097 1998.................................... 43,713 1999.................................... 49,867 2000.................................... 27,114 -------- $191,765 ========
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, 1995, the carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR AMOUNT VALUE ----------------------- (DOLLARS IN THOUSANDS) BASP............................................... $306,080 $328,271 BASSP.............................................. 191,765 205,667 ----------- ----------- $497,845 $533,938 =========== ===========
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:
1995 ---------------------- (DOLLARS IN THOUSANDS) Net assets available for benefits per the financial statements............................. $1,451,379 Amounts allocated to withdrawing participants..... 29,921 ---------- Net assets available for benefits per the Form 5500............................................. $1,421,458 ==========
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
1994 ---------------------- (DOLLARS IN THOUSANDS) Benefits paid to participants per the financial statements........................................ $ 84,066 Add: Amounts allocated to withdrawing participants at December 31, 1995.............................. 29,921 Less: Amounts allocated to withdrawing participants at December 31, 1994.............................. 9,592 -------- Benefits paid to participants per the Form 5500.... $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. 12 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 29, 1996 By /s/ Ellen C. Wolf --------------------------------- ELLEN C. WOLF (Member of the Bell Atlantic Corporate Employees' Benefits Committee) 13 SCHEDULE I BELL ATLANTIC MASTER SAVINGS TRUST SCHEDULE OF INVESTMENTS (DOLLARS IN THOUSANDS)
DECEMBER 31, 1995 ------------------------------------ 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-- 98.2%....................................... 17,006,600 shs. $709,450 $1,137,316 Temporary Cash Investments--1.8%............. $ 20,610 20,610 20,610 -------- ---------- Total.................................. 730,060 1,157,926 -------- ---------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares-- 98.5%....................................... 15,361,011 shs. 638,993 1,027,268 Temporary Cash Investments--1.5%............. $ 16,054 16,054 16,054 -------- ---------- Total.................................. 655,047 1,043,322 -------- ---------- GOVERNMENT MONEY MARKET FUND Temporary Cash Investments--100.0% BT Pyramid Government Securities Cash Fund. 97,702 97,702 97,702 -------- ---------- Total.................................. 97,702 97,702 -------- ---------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES +Contracts with Insurance Companies and Commercial Banks--85.9%..................... American Int'l Life Assurance, 5.41% Maturing 6/28/96.......................... 5,428 5,428 5,428 American Int'l Life Assurance, 7.02% Maturing 10/1/99.......................... 6,480 6,480 6,480 American Int'l Life Assurance, 5.25% Maturing 4/1/98........................... 9,669 9,669 9,669 American Int'l Life Assurance, 7.17% Maturing 1/4/2000......................... 18,841 18,841 18,841 Continental Assurance, 8.75% Maturing 4/1/96.................................... 12,078 12,078 12,078 Hartford Life Ins. Co., 6.78% Maturing 7/1/97.................................... 8,458 8,458 8,458 John Hancock Mutual Life Ins. Co., 5.45% Maturing 4/1/96........................... 18,173 18,173 18,173 John Hancock Mutual Life Ins. Co., 5.85% Maturing 6/30/98.......................... 20,077 20,077 20,077 John Hancock Mutual Life Ins. Co., 6.60% Maturing 10/1/99.......................... 10,536 10,536 10,536 ITT Hartford Life Ins. Co., 8.04% Maturing 1/1/99.................................... 23,642 23,642 23,642 Metropolitan Life Ins. Co., 5.58% Maturing 1/1/98.................................... 13,209 13,209 13,209 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98.................................... 36,674 36,674 36,674 Metropolitan Life Ins. Co., 5.08% Maturing 1/1/97.................................... 22,078 22,078 22,078 #MBL Life Assurance Corp., 3.5% to 5.0% Maturing 12/31/2004....................... 7,296 7,296 7,296 New York Life 7.00% Maturing 7/1/99........ 34,723 34,723 34,723 New York Life 5.93% Maturing 3/31/98....... 4,528 4,528 4,528 New York Life, 5.18% Maturing 7/1/98....... 20,541 20,541 20,541 New York Life, 7.20% Maturing 1/1/2000..... 20,930 20,930 20,930 New York Life, 7.98% Maturing 4/3/2000..... 19,238 19,238 19,238 New York Life, Money Market Account........ 5,658 5,658 5,658 Principal Mutual Life Ins. Co., 5.10% Maturing 1/2/97........................... 13,049 13,049 13,049 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97.......................... 27,391 27,391 27,391 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96.......................... 7,358 7,358 7,358 Principal Mutual Life Ins. Co., 7.38% Maturing 1/1/2000......................... 9,557 9,557 9,557 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98........................... 18,499 18,499 18,499 Provident Nat'l Assurance, 5.12% Maturing 1/2/97.................................... 26,175 26,175 26,175
S-1 SCHEDULE I
DECEMBER 31, 1995 --------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES-- (CONTINUED): Provident Nat'l Assurance, 4.59% Maturing 4/1/97.... $24,921 $ 24,921 $ 24,921 The Prudential Ins. Co. of America, 9.06% Maturing 4/1/96............................................. 9,939 9,939 9,939 The Prudential Ins. Co. of America, 8.08% Maturing 4/1/97............................................. 12,556 12,556 12,556 The Prudential Ins. Co. of America, 5.91% Maturing 7/1/98............................................. 14,721 14,721 14,721 The Prudential Ins. Co. of America, 5.04% Maturing 1/1/98............................................. 9,292 9,292 9,292 -------- -------- 491,715 491,715 -------- -------- Temporary Cash Investments--14.1% BT Pyramid Government Securities Cash Fund......... 80,448 80,448 80,448 -------- -------- Total........................................... 572,163 572,163 -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN +Contracts with Insurance Companies and Commercial Banks--86.4% American Int'l Life Assurance, 5.11% Maturing 7/1/98............................................. 5,687 5,687 5,687 American Int'l Life Assurance, 7.17%, Maturing 1/4/2000........................................... 9,591 9,591 9,591 American Int'l Life Assurance, 7.02% Maturing 10/1/99............................................ 6,531 6,531 6,531 American Int'l Life Assurance, 5.25% Maturing 4/1/98............................................. 4,594 4,594 4,594 Continental Assurance, 8.75% Maturing 7/1/96........ 3,720 3,720 3,720 Hartford Ins. Co., 7.93%, Maturing 4/1/99........... 23,901 23,901 23,901 John Hancock Mutual Life Ins. Co., 5.21% Maturing 4/1/96............................................. 6,602 6,602 6,602 John Hancock Mutual Life Ins. Co., 5.81% Maturing 6/30/98............................................ 9,708 9,708 9,708 John Hancock Mutual Life Ins. Co., 6.57% Maturing 10/1/99............................................ 7,242 7,242 7,242 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98... 15,299 15,299 15,299 Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97... 11,554 11,554 11,554 Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98... 8,887 8,887 8,887 New York Life, 7.28% Maturing 1/1/2000.............. 6,019 6,019 6,019 New York Life, 5.88% Maturing 9/30/97............... 8,162 8,162 8,162 New York Life, 5.35% Maturing 7/1/96................ 5,797 5,797 5,797 New York Life, 5.05% Maturing 4/1/97................ 4,848 4,848 4,848 New York Life, 5.13% Maturing 7/1/98................ 5,908 5,908 5,908 New York Life, 6.75% Maturing 7/1/99................ 7,419 7,419 7,419 New York Life, 7.20% Maturing 10/1/99............... 7,064 7,064 7,064 New York Life, 5.92% Maturing 1/1/99................ 9,379 9,379 9,379 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98............................................. 5,057 5,057 5,057 Principal Mutual Life Ins. Co., 7.30% Maturing 9/30/99............................................ 5,502 5,502 5,502 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97............................................ 16,182 16,182 16,182 Principal Mutual Life Ins. Co., 5.20% Maturing 4/1/97............................................. 9,631 9,631 9,631 Principal Mutual Life Ins. Co., 7.84% Maturing 7/1/96............................................. 1,873 1,873 1,873 Provident Nat'l Assurance, 4.62% Maturing 7/1/97.... 13,376 13,376 13,376 Provident Nat'l Assurance, 5.10% Maturing 4/1/97.... 6,161 6,161 6,161 The Prudential Ins. Co. of America, 6.78% Maturing 1/1/99............................................. 11,303 11,303 11,303 The Prudential Ins. Co. of America, 5.88% Maturing 7/1/98............................................. 7,610 7,610 7,610 The Prudential Ins. Co. of America, 8.10% Maturing 7/1/96............................................. 8,745 8,745 8,745 -------- -------- 253,352 253,352 -------- -------- Temporary Cash Investments--13.6% BT Pyramid Government Securities Cash Fund......... 39,980 39,980 39,980 -------- -------- Total........................................... 293,332 293,332 -------- --------
S-2 SCHEDULE I
DECEMBER 31, 1995 ------------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ---------- ------- ------- U.S. BOND MARKET INDEX FUND Bond Funds--99.8% Wells Fargo--U.S. Debt Index Fund............... 1,880,113 shs. $41,979 $43,134 Wells Fargo--Daily U.S. Debt Market Fund........ 386,205 4,895 5,222 ------- ------- 46,874 48,356 ------- ------- Temporary Cash Investments--0.2% BT Pyramid Government Securities Cash Fund...... $ 2,164 2,164 2,164 ------- ------- Total....................................... 49,038 50,520 ------- ------- U.S. EQUITY INDEX FUND Pooled Common Stock--95.2% *Mellon E.B. Russell 1000 Index Fund............ 920,566 shs. 206,680 297,110 Mellon E.B. Russell 2000 Index Fund............. 113,227 23,437 33,834 E.B. Daily Opening Stock Index Fund............. 67,578 9,719 10,242 ------- ------- 239,836 341,186 ------- ------- Temporary Cash Investments--4.8% BT Pyramid Government Securities Cash Fund...... $ 17,040 17,040 17,040 ------- ------- Total....................................... 256,876 358,226 ------- ------- INTERNATIONAL EQUITY INDEX FUND Pooled Common Stock--98.1% Wells Fargo--MSCI Equity Index Fund-HIK......... 27,617 shs. 328 343 Wells Fargo--Europe Ex UK Equity Index Fund..... 177,885 2,036 2,129 Wells Fargo--MSCI Equity Index Fund-Japan....... 164,989 1,513 1,600 Wells Fargo--Pacific Ex Japan Equity Index Fund. 20,570 214 225 Wells Fargo--EAFE GDP Index Fund A.............. 4,815,656 63,743 66,491 ------- ------- 67,834 70,788 ------- ------- Temporary Cash Investments--1.9% BT Pyramid Government Securities Cash Fund...... $ 1,334 1,334 1,334 ------- ------- Total....................................... 69,168 72,122 ------- ------- LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES Participant Loan Obligations--7.58% to 10%........ 45,179 45,179 ------- ------- Total Loan Fund............................. 45,179 45,179 ------- ------- LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN Participant Loan Obligations--7.58% to 10%........ 33,634 33,634 ------- ------- Total Loan Fund............................. 33,634 33,634 ------- ------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares--96.2%... 5,144,160 shs. 238,773 347,845 Temporary Cash Investments--3.8%.................. $ 13,605 13,605 13,605 ------- ------- Total....................................... 252,378 361,450 ------- -------
S-3 SCHEDULE I
DECEMBER 31, 1995 ------------------------------------ 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 Bell Atlantic Corporation Common Shares-- 97.0%....................................... 3,222,909 shs. $ 149,594 $ 215,532 Temporary Cash Investments--3.0%............. $ 6,652 6,652 6,652 ---------- ---------- Total.................................. 156,246 222,184 ---------- ---------- Grand Total............................ $3,210,823 $4,307,760 ---------- ----------
- -------- * 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 1995, net of third party expenses and after the effect of cash flows, was 6.2% for the BASP and 6.1% for the BASSP. Each quarter a projected annualized interest rate is computed for the BASP and BASSP. The actual yield may vary from the projected interest rate depending upon the rates for new contracts that have been added to the Funds, actual interest earned, payment performance of contract issuers, the timing of cash flows into and out of the Funds, and the timing of the investment of those cash flows. # 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 performance of the underlying investments. Percentages represent percentage of total investments of each fund. S-4 EX-24.2 5 NON-SALARIED AUDIT. 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 19, 1996 on our audits of the financial statements of the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) as of December 31, 1995 and 1994 and for the years then ended, and the accompanying schedule of investments as of December 31, 1995, 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, 1995. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 29, 1996 -----END PRIVACY-ENHANCED MESSAGE-----