-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, oaEp0CTFYPISsrG/YBgGHXmkm1Taqdh53KOv/xLdrfG9ifN+WADgEQo066sk6045 SGraxz+koEQ6pOlf3ca5gQ== 0000950109-95-001489.txt : 19950501 0000950109-95-001489.hdr.sgml : 19950501 ACCESSION NUMBER: 0000950109-95-001489 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950428 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: 95532585 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, 1994 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, 1994. 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, 1994. 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 28, 1995 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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, 1994 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, 1994 AND 1993 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, 1994 and 1993........................................ 3-4 Statements of Changes in Net Assets Available for Plan Bene- fits for the years ended December 31, 1994 and 1993.......... 5-6 Notes to Financial Statements................................. 7-12 Signature....................................................... 13 Bell Atlantic Master Savings Trust Schedule of Investments--De- cember 31, 1994................................................ S1-S4 EXHIBIT: EXHIBIT NUMBER - -------- -------------- Consent of Independent Accountants.............................. 24
1 REPORT OF INDEPENDENT ACCOUNTANTS Vice President--Finance and Controller and 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, 1994 and 1993, and the related statements of changes in net assets available for plan benefits for the years then ended, and the accompanying schedule of investments of the Bell Atlantic Master Savings Trust as of December 31, 1994. 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, 1994 and 1993, and the changes in net assets available for plan benefits for the years then ended, and the accompanying schedule of investments of the Bell Atlantic Master Savings Trust (Pages S-1 to S-4) as of December 31, 1994 presents fairly the information included therein, all in conformity with generally accepted accounting principles. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 19, 1995 2 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1994 (DOLLARS IN THOUSANDS)
U.S. BOND INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY EQUITY UNALLOCATED SHARES MONEY MARKET INCOME INDEX INDEX INDEX LOAN SHARES FUND FUND FUND FUND FUND FUND FUND FUND TOTAL ASSETS: ------------- ------------ -------- ------- ----------- ------------- ------- ----------- ---------- Allocated share of Master Trust net investments (Note 4).................. $871,677 $89,543 $542,520 $33,279 $224,127 $55,484 $47,118 $ 319,580 $2,183,328 Allocations and contributions receivable.......... 2,214 92 500 52 294 194 -- -- 3,346 Fund, plan and other transfers receivable--net..... 3,437 -- 2,189 -- 160 638 252 -- 6,676 Prepaid expenses.... -- -- -- -- -- -- -- 792 792 -------- ------- -------- ------- -------- ------- ------- --------- ---------- Total Assets.... 877,328 89,635 545,209 33,331 224,581 56,316 47,370 320,372 2,194,142 -------- ------- -------- ------- -------- ------- ------- --------- ---------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- 351,248 351,248 Interest payable.... -- -- -- -- -- -- -- 14,348 14,348 Fund, plan and other transfers payable--net........ -- 1,499 -- 1,068 -- -- -- -- 2,567 Administrative expenses payable.... 431 118 575 57 242 28 -- 40 1,491 -------- ------- -------- ------- -------- ------- ------- --------- ---------- Total Liabili- ties............ 431 1,617 575 1,125 242 28 -- 365,636 369,654 -------- ------- -------- ------- -------- ------- ------- --------- ---------- Net assets available (deficit) for Plan benefits (Note 3)... $876,897 $88,018 $544,634 $32,206 $224,339 $56,288 $47,370 $(45,264) $1,824,488 ======== ======= ======== ======= ======== ======= ======= ========= ==========
See notes to financial statements. 3 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1993 (DOLLARS IN THOUSANDS)
U.S. BOND INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY EQUITY UNALLOCATED SHARES MONEY MARKET INCOME INDEX INDEX INDEX LOAN SHARES FUND FUND FUND FUND FUND FUND FUND FUND TOTAL ASSETS: ------------- ------------ -------- ------- ----------- ------------- ------- ----------- ---------- Allocated share of Master Trust net investments (Note 4).................. $969,074 $91,903 $531,875 $37,838 $226,146 $34,576 $45,769 $434,468 $2,371,649 Allocations and contributions receivable.......... 3,938 20 174 23 99 105 -- -- 4,359 Fund, plan and other transfers receivable--net..... -- -- -- -- 170 2,419 402 -- 2,991 Prepaid expenses.... -- -- -- -- -- -- -- 951 951 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Total Assets.... 973,012 91,923 532,049 37,861 226,415 37,100 46,171 435,419 2,379,950 -------- ------- -------- ------- -------- ------- ------- -------- ---------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- 389,606 389,606 Interest payable.... -- -- -- -- -- -- -- 15,752 15,752 Fund, plan and other transfers payable--net........ 1,038 2,943 1,803 223 -- -- -- -- 6,007 Administrative expenses payable.... 44 53 284 38 142 7 -- -- 568 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Total Liabili- ties............ 1,082 2,996 2,087 261 142 7 -- 405,358 411,933 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Net assets available for Plan benefits (Note 3)............ $971,930 $88,927 $529,962 $37,600 $226,273 $37,093 $46,171 $ 30,061 $1,968,017 ======== ======= ======== ======= ======== ======= ======= ======== ==========
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, 1994 (DOLLARS IN THOUSANDS)
U.S. BOND INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY UNALLOCATED SHARES MONEY MARKET INCOME INDEX EQUITY INDEX LOAN SHARES FUND FUND FUND FUND INDEX FUND FUND FUND FUND TOTAL ------------- ------------ -------- --------- ---------- ------------- ------- ----------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1993............ $971,930 $88,927 $529,962 $37,600 $226,273 $37,093 $46,171 $ 30,061 $1,968,017 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Employee contribu- tions............... 34,607 4,294 24,551 2,843 17,119 5,847 -- -- 89,261 Employing company contributions and allocations......... 2,744 -- -- -- -- -- -- 46,068 48,812 Transfer of ESOP Shares and participants' balances--net....... 32,882 (1,765) (1,764) (5,066) (2,066) 14,311 (157) (35,582) 793 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Total alloca- tions, contributions and transfers... 70,233 2,529 22,787 (2,223) 15,053 20,158 (157) 10,486 138,866 Allocated share of Master Trust net in- vestment activities (Note 4)............ (104,469) 3,670 33,650 (1,107) 779 3,011 3,466 (56,020) (117,020) -------- ------- -------- ------- -------- ------- ------- -------- ---------- Net additions... (34,236) 6,199 56,437 (3,330) 15,832 23,169 3,309 (45,534) 21,846 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Less: Distributions to participants.... 60,046 6,986 41,234 2,020 17,528 3,917 2,110 0 133,841 Interest expense.. -- -- -- -- -- -- -- 29,531 29,531 Amortization of capitalized ESOP expenses.......... -- -- -- -- -- -- -- 158 158 Administrative expenses.......... 751 122 531 44 238 57 -- 102 1,845 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Total deduc- tions........... 60,797 7,108 41,765 2,064 17,766 3,974 2,110 29,791 165,375 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1994 (Note 3)............ $876,897 $88,018 $544,634 $32,206 $224,339 $56,288 $47,370 $(45,264) $1,824,488 ======== ======= ======== ======= ======== ======= ======= ======== ==========
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, 1993 (DOLLARS IN THOUSANDS)
U.S. BOND INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY UNALLOCATED SHARES MONEY MARKET INCOME INDEX EQUITY INDEX LOAN SHARES FUND FUND FUND FUND INDEX FUND FUND FUND FUND TOTAL ------------- ------------ -------- --------- ---------- ------------- ------- ----------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1992 as previously reported. $782,501 $98,780 $509,345 $32,196 $196,912 $11,390 $35,203 $(14,163) $1,652,164 Cumulative effect of accounting change (Note 2)............ 31,323 3,639 15,789 1,170 6,319 282 1,343 -- 59,865 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Net assets available (deficit) for Plan benefits, January 1, 1993..... 813,824 102,419 525,134 33,366 203,231 11,672 36,546 (14,163) 1,712,029 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Employee contribu- tions............... 35,478 4,685 26,263 2,789 17,137 2,981 -- -- 89,333 Employing company contributions and allocations......... 3,581 -- -- -- -- -- -- 40,014 43,595 Transfer of ESOP Shares and participants' bal- ances--net.......... 25,720 (11,235) (12,278) 1,361 3,285 19,604 8,233 (36,124) (1,434) -------- ------- -------- ------- -------- ------- ------- -------- ---------- Total alloca- tions, contribu- tions and trans- fers............ 64,779 (6,550) 13,985 4,150 20,422 22,585 8,233 3,890 131,494 Allocated share of Master Trust net in- vestment activities (Note 4)............ 176,085 3,022 35,991 3,199 21,888 4,184 3,320 73,136 320,825 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Net additions... 240,864 (3,528) 49,976 7,349 42,310 26,769 11,553 77,026 452,319 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Less: Distributions to participants..... 82,105 9,956 44,508 3,050 18,926 1,328 1,893 -- 161,766 Interest expense.. -- -- -- -- -- -- -- 32,534 32,534 Amortization of capitalized ESOP expenses.......... -- -- -- -- -- -- -- 158 158 Administrative expenses.......... 653 8 640 65 342 20 35 110 1,873 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Total deduc- tions........... 82,758 9,964 45,148 3,115 19,268 1,348 1,928 32,802 196,331 -------- ------- -------- ------- -------- ------- ------- -------- ---------- Net assets available for Plan benefits, December 31, 1993 (Note 3)............ $971,930 $88,927 $529,962 $37,600 $226,273 $37,093 $46,171 $30,061 $1,968,017 ======== ======= ======== ======= ======== ======= ======= ======== ==========
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, 1994. 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. 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 40% 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 ("BMIF"), an Interest Income Fund ("IIF"), or a Government Money Market Fund ("GMMF"). Employer matching contributions are invested only in the Bell Atlantic Shares Fund. The Plan provides for 100% vesting of employer matching contributions upon attaining three years of service. A terminated employee's unvested employer matching contributions are forfeited and offset against the participating companies' obligation to make subsequent contributions to the Plan. 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. 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 7 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. In 1993, the Plan adopted the provisions of the AICPA Audit and Accounting Guide, "AUDITS of EMPLOYEE BENEFIT PLANS," requiring that amounts allocated to withdrawing participants not be reported as a liability on the statement of net assets available for plan benefits. As a result, the Plan recorded a cumulative effect adjustment at the beginning of 1993 of $59,865,000. The Plan participates in certain commingled investment funds. The funds' managers utilize futures and foreign currency forward contracts to minimize transaction costs and the effect of cash flows (such as contributions, transfers, and distributions) on the funds' investment performance. Futures contracts are fully collateralized and are marked to market daily. Foreign currency forward contracts are matched with the settlement of purchases and sales of foreign securities and are also marked to market daily. 8 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:
1994 1993 --------------------------------- --------------------------------- NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE EMPLOYEES OF PER EMPLOYEES OF PER PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT ------------- ----------- ------- ------------- ----------- ------- Bell Atlantic Shares Fund................... 23,719 218,636,954 $3.9820 24,294 204,798,989 $4.7288 Government Money Market Fund................... 6,977 10,533,509 8.3178 7,224 11,095,158 7.9893 Interest Income Fund.... 17,083 124,761,215 4.3437 17,836 129,351,265 4.0809 U.S. Bond Market Index Fund................... 3,433 28,062,315 1.1382 3,325 32,029,036 1.1729 U.S. Equity Index Fund.. 11,790 23,490,913 9.5057 11,916 23,762,499 9.4827 International Equity Index Fund............. 5,095 41,224,009 1.3504 3,592 29,684,503 1.2468 Loan Fund............... 5,635 -- -- 5,522 -- --
At December 31, 1994, 18,085 participants were actively contributing to the Plan; 7,239 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:
1994 1993 ----- ----- Bell Atlantic Shares Fund (for the BASP)..................... 100.0% 100.0% Bell Atlantic Shares Fund (for the BASSP).................... -- -- Government Money Market Fund................................. 93.2% 94.0% Interest Income Fund (for the BASP).......................... 100.0% 100.0% Interest Income Fund (for the BASSP)......................... -- -- U.S. Bond Market Index Fund.................................. 87.2% 88.9% U.S. Equity Index Fund....................................... 94.0% 95.2% International Equity Index Fund.............................. 88.9% 90.8% 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:
1994 1993 ----------- ----------- (DOLLARS IN THOUSANDS) ASSETS: Investments at fair value: Bell Atlantic Shares Fund--BASP: Bell Atlantic Corporation common shares............ $ 860,361 $ 960,455 Temporary cash investments......................... 12,656 11,038 Bell Atlantic Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 710,249 805,178 Temporary cash investments......................... 26,074 11,810 Government Money Market Fund: Temporary cash investments......................... 96,256 97,958 Interest Income Fund--BASP: Contracts with insurance companies and commercial banks............................................. 540,659 530,588 Temporary cash investments......................... 3,105 2,203 Interest Income Fund--BASSP: Contracts with insurance companies and commercial banks............................................. 269,687 240,864 Temporary cash investments......................... 476 10,672 U.S. Bond Market Index Fund: Fund shares........................................ 38,440 42,842 Temporary cash investments......................... 68 40 U.S. Equity Index Fund: Fund shares........................................ 239,178 235,911 Temporary cash investments......................... 917 3,039 International Equity Index Fund: Fund shares........................................ 62,152 37,461 Temporary cash investments......................... 811 105 Loan Fund--BASP: Loans receivable from participants................. 47,690 45,769 Loan Fund--BASSP: Loans receivable from participants................. 30,420 24,491 ESOP Unallocated Shares Fund--BASP: Bell Atlantic Corporation common shares............ 305,841 420,812 Temporary cash investments......................... 13,680 13,675 ESOP Unallocated Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 191,615 263,646 Temporary cash investments......................... 8,635 7,915 ----------- ----------- Total investments................................ 3,458,970 3,766,472 Receivables: Dividends and interest income...................... 4,476 6,617 Receivables for investments sold................... 7,113 2,801 ----------- ----------- Total assets..................................... 3,470,559 3,775,890 LIABILITIES: Payable for investments purchased................... 23,404 19,779 ----------- ----------- Net investments.................................. $ 3,447,155 $3,756,111 =========== =========== Investments at cost: ................................. $ 3,125,178 $3,023,806 =========== ===========
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, 1994 and 1993. The Master Trust's investment activities for the years ended December 31 were as follows:
1994 1993 ----------- ----------- (DOLLARS IN THOUSANDS) Investment Activities: Dividends on Bell Atlantic Corporation common shares: Non-ESOP shares................................ $ 84,295 $ 76,824 ESOP shares.................................... 29,825 33,446 Other dividends................................. 7,138 7,085 Interest Income Fund (BASP) income.............. 33,650 35,991 Interest Income Fund (BASSP) income............. 15,554 16,740 Other interest.................................. 13,597 11,569 Net (depreciation) appreciation in value of investments.................................... (405,143) 350,526 ----------- ---------- Net investment activities................... $(221,084) $ 532,181 =========== ========== Allocated share of net investment activities: BASP............................................ $(117,020) $ 320,825 BASSP........................................... (104,064) 211,356
The value per share of Bell Atlantic common stock decreased from $59.38 at December 31, 1993 to $49.75 at December 31, 1994. This represents a 16.22% decrease in the value per share. At December 31, 1994, approximately 40% of BASP assets and 58% of BASSP assets were invested in the Bell Atlantic Shares Funds. Between January 1 and April 19, 1995, Bell Atlantic common stock closing prices have ranged from $48.88 to $54.63 per share. During 1994 and 1993, the participating employing companies transferred 134,511 and 58,660 shares respectively of Bell Atlantic common stock, valued at $6,594,000 and $3,034,000 respectively, to the Plan for employer company matching contributions to employee accounts. 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 6.77% to 16.3% of the original amount ($485.7 million) from 1994 to 1999, respectively. The final payment will be made on January 1, 2000. The principal amounts under the notes are due as follows (in thousands): 1995..................................... $ 45,168 1996..................................... 52,630 1997..................................... 60,808 1998..................................... 69,771 1999..................................... 79,594 2000..................................... 43,277 -------- $351,248 ========
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, 1994, the carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR AMOUNT VALUE ----------------------- (DOLLARS IN THOUSANDS) BASP............................................... $351,248 $364,139 BASSP.............................................. 220,063 228,140 ----------- ----------- $571,311 $592,279 =========== ===========
6. TAX DETERMINATION On May 12, 1990, 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. 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:
1994 -------------------------- (DOLLARS IN THOUSANDS) Net assets available for benefits per the financial statements......................... $1,824,488 Amounts allocated to withdrawing participants. (12,030) ---------- Net assets available for benefits per the Form 5500......................................... $1,812,458 ==========
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.................................... $133,841 Add: Amounts allocated to withdrawing participants at December 31, 1994............. 12,030 Less: Amounts allocated to withdrawing participants at December 31, 1993............. (7,575) -------- Benefits paid to participants per the Form 5500.......................................... $138,296 ========
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 28, 1995 /s/ Barbara L. Connor By__________________________________ BARBARA L. CONNOR (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, 1994 ---------------------------------- 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-- 98.6%......................................... 17,293,682 shs. $714,751 $860,361 Temporary Cash Investments--1.4%............... $ 12,656 12,656 12,656 -------- -------- Total.................................... 727,407 873,017 -------- -------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares-- 96.5%......................................... 14,276,353 shs. 581,943 710,249 Temporary Cash Investments--3.5%............... $ 26,074 26,074 26,074 -------- -------- Total.................................... 608,017 736,323 -------- -------- GOVERNMENT MONEY MARKET FUND Temporary Cash Investments--100.0% BT Pyramid Government Securities Cash Fund... 96,256 96,256 96,256 -------- -------- Total.................................... 96,256 96,256 -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES +Contracts with Insurance Companies and Commercial Banks--99.4%....................... American Int'l Life Assurance, 7.02% Maturing 10/1/99..................................... 7,438 7,438 7,438 American Int'l Life Assurance, 5.25% Maturing 4/1/98...................................... 10,504 10,504 10,504 American Int'l Life Assurance, 5.41% Maturing 7/1/96...................................... 5,888 5,888 5,888 Continental Assurance, 5.30% Maturing 10/1/95..................................... 24,323 24,323 24,323 Continental Assurance, 8.75% Maturing 4/1/96. 19,121 19,121 19,121 John Hancock Mutual Life Ins. Co., 5.45% Maturing 4/1/96............................. 32,238 32,238 32,238 John Hancock Mutual Life Ins. Co., 6.31% Maturing 10/1/95............................ 9,314 9,314 9,314 John Hancock Mutual Life Ins. Co., 6.60% Maturing 10/1/99............................ 16,840 16,840 16,840 ITT Hartford Life Ins. Co., 8.54% Maturing 7/1/95...................................... 36,122 36,122 36,122 Metropolitan Life Ins. Co., 5.58% Maturing 1/1/98...................................... 14,309 14,309 14,309 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98...................................... 39,390 39,390 39,390 Metropolitan Life Ins. Co., 5.08% Maturing 1/1/97...................................... 24,031 24,031 24,031 #MBL Life Assurance Corp., 3.0% no maturity date........................................ 7,136 7,136 7,136 New York Life, 5.18% Maturing 7/1/98......... 22,338 22,338 22,338 New York Life, 7.20% Maturing 1/1/2000....... 22,323 22,323 22,323 New York Life, 6.75% Maturing 7/1/99......... 38,501 38,501 38,501 Principal Mutual Life Ins. Co., 5.10% Maturing 1/2/97............................. 14,202 14,202 14,202 Principal Mutual Life Ins. Co., 5.90% Maturing 9/30/97............................ 29,582 29,582 29,582 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96............................ 15,604 15,604 15,604 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98............................. 19,965 19,965 19,965 Provident Nat'l Assurance, 5.12% Maturing 1/2/97...................................... 28,479 28,479 28,479 Provident Nat'l Assurance, 4.59% Maturing 4/1/97...................................... 27,254 27,254 27,254
S-1 SCHEDULE I
DECEMBER 31, 1994 --------------------------- 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): The Prudential Ins. Co. of America, 9.06% Maturing 10/1/96............................................ $20,839 $20,839 $20,839 The Prudential Ins. Co. of America, 8.08% Maturing 4/1/97............................................. 19,921 19,921 19,921 The Prudential Ins. Co. of America, 5.91% Maturing 7/1/98............................................. 15,896 15,896 15,896 The Prudential Ins. Co. of America, 5.04% Maturing 1/1/98............................................. 10,119 10,119 10,119 Union Bank of Switzerland, 6.96% Maturing 1/2/95.... 8,982 8,982 8,982 -------- -------- 540,659 540,659 -------- -------- Temporary Cash Investments--0.6% BT Pyramid Government Securities Cash Fund......... 3,105 3,105 3,105 -------- -------- Total........................................... 543,764 543,764 -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN +Contracts with Insurance Companies and Commercial Banks--99.8% American Int'l Life Assurance, 5.11% Maturing 7/1/98............................................. 6,295 6,295 6,295 American Int'l Life Assurance, 7.02% Maturing 10/1/99............................................ 7,467 7,467 7,467 American Int'l Life Assurance, 5.25% Maturing 4/1/98............................................. 4,949 4,949 4,949 Bankers Trust (Delaware), 8.88% Maturing 10/1/95.... 10,950 10,950 10,950 Continental Assurance, 5.26% Maturing 10/2/95....... 13,775 13,775 13,775 Continental Assurance, 8.75% Maturing 7/1/96........ 5,833 5,833 5,833 John Hancock Mutual Life Ins. Co., 5.21% Maturing 4/1/96............................................. 14,685 14,685 14,685 John Hancock Mutual Life Ins. Co., 6.12% Maturing 7/1/95............................................. 4,736 4,736 4,736 John Hancock Mutual Life Ins. Co., 6.57% Maturing 10/1/99............................................ 9,295 9,295 9,295 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98... 16,291 16,291 16,291 Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97... 12,473 12,473 12,473 Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98... 9,580 9,580 9,580 New York Life, 5.35% Maturing 7/1/95................ 11,308 11,308 11,308 New York Life, 5.05% Maturing 4/1/97................ 5,233 5,233 5,233 New York Life, 5.13% Maturing 7/1/98................ 6,372 6,372 6,372 New York Life, 6.75% Maturing 7/1/99................ 7,880 7,880 7,880 New York Life, 7.20% Maturing 10/1/99............... 7,471 7,471 7,471 New York Life, 5.92% Maturing 1/1/99................ 10,042 10,042 10,042 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97............................................ 17,327 17,327 17,327 Principal Mutual Life Ins. Co., 5.20% Maturing 3/31/97............................................ 10,383 10,383 10,383 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96............................................ 3,937 3,937 3,937 Provident Nat'l Assurance, 8.49% Maturing 7/1/95.... 3,851 3,851 3,851 Provident Nat'l Assurance, 4.62% Maturing 7/1/97.... 14,500 14,500 14,500 Provident Nat'l Assurance, 5.10% Maturing 4/1/97.... 6,647 6,647 6,647 The Prudential Ins. Co. of America, 6.78% Maturing 1/1/99............................................. 16,068 16,068 16,068 The Prudential Ins. Co. of America, 5.88% Maturing 7/1/98............................................. 8,150 8,150 8,150 The Prudential Ins. Co. of America, 8.10% Maturing 7/1/96............................................. 13,802 13,802 13,802 Principal Mutual, 6.00% Maturing 7/1/98............. 5,410 5,410 5,410 Union Bank of Switzerland, 6.96% Maturing 1/1/95.... 4,977 4,977 4,977 -------- -------- 269,687 269,687 -------- -------- Temporary Cash Investments--0.2% BT Pyramid Government Securities Cash Fund........... 476 476 476 -------- -------- Total........................................... 270,163 270,163 -------- --------
S-2 SCHEDULE I
DECEMBER 31, 1994 ------------------------------ 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% U.S. Debt Index Fund............................. 1,943,119 shs. $40,577 $37,624 Daily U.S. Debt Market Fund...................... 71,573 816 816 ------- ------- 41,393 38,440 ------- ------- Temporary Cash Investments--0.2% BT Pyramid Government Securities Cash Fund....... $ 68 68 68 ------- ------- Total........................................ 41,461 38,508 ------- ------- U.S. EQUITY INDEX FUND Pooled Common Stock--99.6% *Mellon E.B. Russell 1000 Index Fund............. 878,444 shs. 187,071 206,062 Mellon E.B. Russell 2000 Index Fund.............. 120,168 19,786 23,743 E.B. Daily Opening Stock Index Fund.............. 82,673 9,278 9,373 ------- ------- 216,135 239,178 ------- ------- Temporary Cash Investments--0.4% BT Pyramid Government Securities Cash Fund....... $ 917 917 917 ------- ------- Total........................................ 217,052 240,095 ------- ------- INTERNATIONAL EQUITY INDEX FUND Pooled Common Stock--98.8% International Stock Performance Index............ 163,953 shs. 1,959 1,969 State Street Bank--Australia..................... 89,584 1,388 1,581 State Street Bank--Austria....................... 36,829 833 870 State Street Bank--Belgium....................... 55,541 906 1,062 State Street Bank--Denmark....................... 31,123 606 660 State Street Bank--Finland....................... 40,378 337 575 State Street Bank--France........................ 310,868 6,575 6,649 State Street Bank--Germany....................... 411,452 8,183 9,317 State Street Bank--Hong Kong..................... 14,003 519 539 State Street Bank--Ireland....................... 19,791 217 254 State Street Bank--Italy......................... 373,188 4,390 4,689 State Street Bank--Japan......................... 2,067,206 18,044 20,972 State Street Bank--Malaysia...................... 23,104 292 314 State Street Bank--Netherland.................... 65,773 1,430 1,775 State Street Bank--New Zealand................... 18,651 196 256 State Street Bank--Norway........................ 29,824 468 595 State Street Bank--Singapore..................... 9,084 240 321 State Street Bank--Spain......................... 214,150 2,203 2,182 State Street Bank--Sweden........................ 52,699 886 1,066 State Street Bank--Switzerland................... 54,394 1,000 1,236 State Street Bank--United Kingdom................ 263,751 5,030 5,270 ------- ------- 55,702 62,152 ------- ------- Temporary Cash Investments--1.2% BT Pyramid Government Securities Cash Fund....... $ 811 811 811 ------- ------- Total........................................ 56,513 62,963 ------- -------
S-3 SCHEDULE I
DECEMBER 31, 1994 ------------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- ---------- ---------- LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES Participant Loan Obligations--6.87% to 9.5%.. $ 47,690 $ 47,690 ---------- ---------- Total Loan Fund........................ 47,690 47,690 ---------- ---------- LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN Participant Loan Obligations--6.87% to 9.5%.. 30,420 30,420 ---------- ---------- Total Loan Fund........................ 30,420 30,420 ---------- ---------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares-- 95.7%....................................... 6,147,565 shs. 285,346 305,841 Temporary Cash Investments--4.3%............. $ 13,680 13,680 13,680 ---------- ---------- Total.................................. 299,026 319,521 ---------- ---------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares-- 95.7%....................................... 3,851,561 shs. 178,774 191,615 Temporary Cash Investments--4.3%............. $ 8,635 8,635 8,635 ---------- ---------- Total.................................. 187,409 200,250 ---------- ---------- Grand Total............................ $3,125,178 $3,458,970 ---------- ----------
- -------- * 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 1994, net of third party expenses and after the effect of cash flows, was 6.4% 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. # In July 1991, Mutual Benefit Life Insurance Company ("MBL"), an issuer of an insurance contract for the BASP's IIF, was placed under the control of New Jersey insurance regulators. Since January 1992, interest on the contract has been accrued at a reduced rate of 3.0% per annum. In November 1993, a Rehabilitation Plan was confirmed by a New Jersey court. The Rehabilitation Plan provided MBL contract holders with an opportunity to either (i) cash out at a significantly reduced contract value or (ii) elect to be subject to the terms of the Rehabilitation Plan under which contract balances are preserved at full value and are subject to certain minimum interest rate guarantees. To the extent that actual returns either achieve or exceed the guaranteed minimums, adjustments will be recorded on a prospective basis. Any adjustment is not expected to have a material effect on the BASP IIF yield. Contract balances are expected to be paid out in a series of five annual installments beginning in 2000. Contract holders electing coverage under the Rehabilitation Plan retain the right to cash out at a reduced value. Bell Atlantic has directed the Master Trust's trustee to elect coverage under the Rehabilitation Plan. Although the Rehabilitation Plan has been approved, it is subject to appeals by a group of creditors and may be amended or revised. Percentages represent percentage of total investments of each fund. S-4 EX-24.1 3 EX 99A 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, 1995 on our audits of the financial statements of the Bell Atlantic Savings Plan for Salaried Employees as of December 31, 1994 and 1993 and for the years then ended, and the schedule of investments of the Bell Atlantic Master Savings Trust as of December 31, 1994, 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, 1994. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 28, 1995 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, 1994 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, 1994 AND 1993 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, 1994 and 1993........................................ 3-4 Statements of Changes in Net Assets Available for Plan Bene- fits for the years ended December 31, 1994 and 1993.......... 5-6 Notes to Financial Statements................................. 7-12 Signature....................................................... 13 Bell Atlantic Master Savings Trust Schedule of Investments--De- cember 31, 1994................................................ S1-S4 EXHIBIT: EXHIBIT NUMBER - -------- -------------- Consent of Independent Accountants ............................. 24
1 REPORT OF INDEPENDENT ACCOUNTANTS Vice President--Finance and Controller and 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, 1994 and 1993, and the related statements of changes in net assets available for plan benefits for the years then ended and the accompanying schedule of investments of the Bell Atlantic Master Savings Trust as of December 31, 1994. 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, 1994 and 1993, and the changes in net assets available for plan benefits for the years then ended, and the accompanying schedule of investments of the Bell Atlantic Master Savings Trust (Pages S-1 to S-4) as of December 31, 1994 presents fairly the information included therein, all in conformity with generally accepted accounting principles. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 19, 1995 2 BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES) STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1994 (DOLLARS IN THOUSANDS)
. INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST U.S. BOND U.S. EQUITY EQUITY UNALLOCATED SHARES MONEY MARKET INCOME MARKET INDEX INDEX LOAN SHARES FUND FUND FUND INDEX FUND FUND FUND FUND FUND TOTAL ASSETS: ------------- ------------ -------- ---------- ----------- ------------- ------- ----------- ---------- Allocated share of Master Trust net investments (Note 4).......... $734,033 $6,530 $269,764 $4,872 $14,197 $6,947 $30,420 $197,064 $1,263,827 Allocations and contributions receivable........ 6,113 70 1,758 50 203 113 -- -- 8,307 Fund, plan and other transfers receivable--net... 6,432 -- 339 -- -- -- -- -- 6,771 Prepaid expenses... -- -- -- -- -- -- -- 496 496 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Total Assets.... 746,578 6,600 271,861 4,922 14,400 7,060 30,420 197,560 1,279,401 -------- ------ -------- ------ ------- ------ ------- -------- ---------- LIABILITIES: Notes payable (Note 5)................ -- -- -- -- -- -- -- 220,063 220,063 Accrued interest... -- -- -- -- -- -- -- 8,990 8,990 Fund, plan and other transfers payable--net...... -- 220 -- 64 34 2 34 -- 354 Administrative expenses payable.. 983 11 583 12 55 10 -- 25 1,679 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Total Liabilities.... 983 231 583 76 89 12 34 229,078 231,086 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Net assets available (deficit) for Plan benefits (Note 3).......... $745,595 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $(31,518) $1,048,315 ======== ====== ======== ====== ======= ====== ======= ======== ==========
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, 1993 (DOLLARS IN THOUSANDS)
. INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST U.S. BOND U.S. EQUITY EQUITY UNALLOCATED SHARES MONEY MARKET INCOME MARKET INDEX INDEX LOAN SHARES FUND FUND FUND INDEX FUND FUND FUND FUND FUND TOTAL ASSETS: ------------- ------------ -------- ---------- ----------- ------------- ------- ----------- ---------- Allocated share of Master Trust net investments (Note 4).......... $811,002 $5,816 $251,255 $4,720 $11,427 $3,491 $24,491 $272,260 $1,384,462 Allocations and contributions receivable........ 6,514 15 479 12 44 27 -- -- 7,091 Fund, plan and other transfers receivable--net... -- -- -- -- 33 283 793 -- 1,109 Prepaid expenses... -- -- -- -- -- -- -- 596 596 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Total Assets.... 817,516 5,831 251,734 4,732 11,504 3,801 25,284 272,856 1,393,258 -------- ------ -------- ------ ------- ------ ------- -------- ---------- LIABILITIES: Notes payable (Note 5)................ -- -- -- -- -- -- -- 244,096 244,096 Accrued interest... -- -- -- -- -- -- -- 9,869 9,869 Fund, plan and other transfers payable--net...... 971 62 658 80 -- -- -- -- 1,771 Administrative expenses payable.. 273 -- 244 5 6 1 -- -- 529 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Total Liabilities.... 1,244 62 902 85 6 1 -- 253,965 256,265 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Net assets available for Plan benefits (Note 3). $816,272 $5,769 $250,832 $4,647 $11,498 $3,800 $25,284 $18,891 $1,136,993 ======== ====== ======== ====== ======= ====== ======= ======== ==========
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, 1994 (DOLLARS IN THOUSANDS)
GOVERNMENT INTERNATIONAL ESOP BELL ATLANTIC MONEY INTEREST U.S. BOND U.S. EQUITY EQUITY UNALLOCATED SHARES MARKET INCOME MARKET INDEX INDEX LOAN SHARES FUND FUND FUND INDEX FUND FUND FUND FUND FUND TOTAL ------------- ---------- -------- ---------- ----------- ------------- ------- ----------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1993.......... $816,272 $5,769 $250,832 $4,647 $11,498 $3,800 $25,284 $ 18,891 $1,136,993 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Employee contributions..... 29,159 1,027 28,900 812 3,112 1,521 -- -- 64,531 Employing company contributions and allocations....... 6,113 -- -- -- -- -- -- 26,974 33,087 Transfer of ESOP Shares and participants' balances--net..... 28,389 (236) (2,902) (229) 442 1,661 3,792 (22,850) 8,067 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Total allocations, contributions and transfers.. 63,661 791 25,998 583 3,554 3,182 3,792 4,124 105,685 Allocated share of Master Trust net investment activities (Note 4)................ (89,230) 255 15,554 (137) 52 331 1,751 (32,640) (104,064) -------- ------ -------- ------ ------- ------ ------- -------- ---------- Net additions... (25,569) 1,046 41,552 446 3,606 3,513 5,543 (28,516) 1,621 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Less:Distributions to participants... 43,750 428 20,567 233 764 249 441 -- 66,432 Interest expense......... -- -- -- -- -- -- -- 21,725 21,725 Amortization of capitalized ESOP expenses... -- -- -- -- -- -- -- 100 100 Administrative expenses........ 1,358 18 539 14 29 16 -- 68 2,042 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Total deductions..... 45,108 446 21,106 247 793 265 441 21,893 90,299 -------- ------ -------- ------ ------- ------ ------- -------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1994 (Note 3). $745,595 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $(31,518) $1,048,315 ======== ====== ======== ====== ======= ====== ======= ======== ==========
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, 1993 (DOLLARS IN THOUSANDS)
U.S. BOND INTERNATIONAL ESOP BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY UNALLOCATED SHARES MONEY MARKET INCOME INDEX EQUITY INDEX LOAN SHARES FUND FUND FUND FUND INDEX FUND FUND FUND FUND TOTAL ------------- ------------ -------- --------- ---------- ------------- ------- ----------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1992 as previously reported. $672,228 $5,336 $238,699 $3,916 $ 7,888 $1,386 $ -- $(8,812) $920,641 Cumulative effect of accounting change (Note 2)............ 54,166 249 18,295 181 257 79 -- -- 73,227 -------- ------ -------- ------ ------- ------ ------- ------- ---------- Net assets available (deficit) for Plan benefits, January 1, 1993..... 726,394 5,585 256,994 4,097 8,145 1,465 -- (8,812) 993,868 -------- ------ -------- ------ ------- ------ ------- ------- ---------- Employee contribu- tions............... 30,159 874 28,349 716 2,691 641 -- -- 63,430 Employing company contributions and allocations......... 5,770 -- -- -- -- -- -- 24,958 30,728 Transfer of ESOP Shares and participants' bal- ances--net.......... (10,668) (303) (13,230) (195) 312 1,336 24,940 (22,492) (20,300) -------- ------ -------- ------ ------- ------ ------- ------- ---------- Total alloca- tions, contributions and transfers... 25,261 571 15,119 521 3,003 1,977 24,940 2,466 73,858 Allocated share of Master Trust net investment activities (Note 4). 146,161 177 16,740 398 1,010 491 589 45,790 211,356 -------- ------ -------- ------ ------- ------ ------- ------- ---------- Net additions... 171,422 748 31,859 919 4,013 2,468 25,529 48,256 285,214 -------- ------ -------- ------ ------- ------ ------- ------- ---------- Less: Distributions to participants..... 80,420 546 37,368 349 633 118 96 -- 119,530 Interest expense.. -- -- -- -- -- -- -- 20,384 20,384 Amortization of capitalized ESOP expenses.......... -- -- -- -- -- -- -- 99 99 Administrative expenses.......... 1,124 18 653 20 27 15 149 70 2,076 -------- ------ -------- ------ ------- ------ ------- ------- ---------- Total deduc- tions........... 81,544 564 38,021 369 660 133 245 20,553 142,089 -------- ------ -------- ------ ------- ------ ------- ------- ---------- Net assets available for Plan benefits, December 31, 1993 (Note 3)............ $816,272 $5,769 $250,832 $4,647 $11,498 $3,800 $25,284 $18,891 $1,136,993 ======== ====== ======== ====== ======= ====== ======= ======= ==========
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, 1994. 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. 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. 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. 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"). Effective April 1, 1993, 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. In 1993, the Plan adopted the provisions of the AICPA Audit and Accounting Guide, "AUDITS of EMPLOYEE BENEFIT PLANS," requiring that amounts allocated to withdrawing participants not be reported as a liability on the statement of net assets available for plan benefits. As a result, the Plan recorded a cumulative effect adjustment at the beginning of 1993 of $73,227,000. The Plan participates in certain commingled investment funds. The funds' managers utilize futures and foreign currency forward contracts to minimize transaction costs and the effect of cash flows (such as contributions, transfers, and distributions) on the funds' investment performance. Futures contracts are fully collateralized and are marked to market daily. Foreign currency forward contracts are matched with the settlement of purchases and sales of foreign securities and are also marked to market daily. 8 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:
1994 1993 --------------------------------- -------------------------------- NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE EMPLOYEES OF PER EMPLOYEES OF PER PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT ------------- ----------- ------- ------------- ----------- ------ Bell Atlantic Shares Fund................... 41,775 182,342,498 $4.0492 41,866 168,981,473 4.8068 Government Money Market Fund................... 2,376 4,978,550 1.2409 1,987 4,811,399 1.1959 Interest Income Fund.... 27,891 59,556,987 4.5207 28,460 58,433,065 4.2625 U.S. Bond Market Index Fund................... 2,015 4,215,705 1.1472 1,711 3,918,074 1.1844 U.S. Equity Index Fund.. 3,975 9,620,307 1.4871 3,270 7,726,805 1.4852 International Equity Index Fund............. 2,467 5,165,442 1.3566 1,437 3,023,119 1.2549 Loan Fund............... 7,338 -- -- 5,460 -- --
At December 31, 1994, 36,003 participants were actively contributing to the Plan; 9,623 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:
1994 1993 ----- ----- Bell Atlantic Shares Fund (for the BASSP).................... 100.0% 100.0% Bell Atlantic Shares Fund (for the BASP)..................... -- -- Government Money Market Fund................................. 6.8% 6.0% Interest Income Fund (for the BASSP)......................... 100.0% 100.0% Interest Income Fund (for the BASP).......................... -- -- U.S. Bond Market Index Fund.................................. 12.8% 11.1% U.S. Equity Index Fund....................................... 6.0% 4.8% International Equity Index Fund.............................. 11.1% 9.2% Loan Fund (for the BASSP).................................... 100.0% 100% Loan Fund (for the BASP)..................................... -- -- ESOP Unallocated Shares Fund (for the BASSP)................. 100.0% 100.0% ESOP Unallocated Shares Fund (for the BASP).................. -- --
9 At December 31, the financial position of the Master Trust was as follows:
1994 1993 ----------- ----------- (DOLLARS IN THOUSANDS) ASSETS: Investments at fair value: Bell Atlantic Shares Fund--BASSP: Bell Atlantic Corporation common shares............ $ 710,249 $ 805,178 Temporary cash investments......................... 26,074 11,810 Bell Atlantic Shares Fund--BASP: Bell Atlantic Corporation common shares............ 860,361 960,455 Temporary cash investments......................... 12,656 11,038 Government Money Market Fund: Temporary cash investments......................... 96,256 97,958 Interest Income Fund--BASSP: Contracts with insurance companies and commercial banks............................................. 269,687 240,864 Temporary cash investments......................... 476 10,672 Interest Income Fund--BASP: Contracts with insurance companies and commercial banks............................................. 540,659 530,588 Temporary cash investments......................... 3,105 2,203 U.S. Bond Market Index Fund: Fund shares........................................ 38,440 42,842 Temporary cash investments......................... 68 40 U.S. Equity Index Fund: Fund shares........................................ 239,178 235,911 Temporary cash investments......................... 917 3,039 International Equity Index Fund: Fund shares........................................ 62,152 37,461 Temporary cash investments......................... 811 105 Loan Fund--BASSP: Loans receivable from participants................. 30,420 24,491 Loan Fund--BASP: Loans receivable from participants................. 47,690 45,769 ESOP Unallocated Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 191,615 263,646 Temporary cash investments......................... 8,635 7,915 ESOP Unallocated Shares Fund--BASP: Bell Atlantic Corporation common shares............ 305,841 420,812 Temporary cash investments......................... 13,680 13,675 ----------- ----------- Total investments................................ 3,458,970 3,766,472 Receivables: Dividends and interest income...................... 4,476 6,617 Receivables for investments sold................... 7,113 2,801 ----------- ----------- Total assets..................................... 3,470,559 3,775,890 LIABILITIES: Payable for investments purchased................... 23,404 19,779 ----------- ----------- Net investments.................................. 3,447,155 $3,756,111 =========== =========== Investments at cost: ................................. $3,125,178 $3,023,806 =========== ===========
See Schedule I, Bell Atlantic Master Savings Trust Schedule of Investments. The Plan'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, 1994 and 1993. The Master Trust's investment activities for the year ended December 31 was as follows:
1994 1993 ----------- ----------- (DOLLARS IN THOUSANDS) Investment Activities: Dividends on Bell Atlantic Corporation common shares: Non-ESOP shares................................ $ 84,295 $ 76,824 ESOP shares.................................... 29,825 33,446 Other dividends................................. 7,138 7,085 Interest Income Fund (BASP) income.............. 33,650 35,991 Interest Income Fund (BASSP) income............. 15,554 16,740 Other interest.................................. 13,597 11,569 Net (depreciation) appreciation in value of in- vestments...................................... (405,143) 350,526 ----------- ---------- Net investment activities................... (221,084) $ 532,181 =========== ========== Allocated share of net investment activities: BASP............................................ $(117,020) $ 320,825 BASSP........................................... (104,064) 211,356
The value per share of Bell Atlantic common stock decreased from $59.38 at December 31, 1993 to $49.75 at December 31, 1994. This represents a 16.22% decrease in the value per share. At December 31, 1994, approximately 58% of BASSP assets and 40% of BASP assets were invested in the Bell Atlantic Shares Funds. Between January 1 and April 19, 1995, Bell Atlantic common stock closing prices have ranged from $48.88 to $54.63 per share. During 1993, the Plan purchased 76,866 shares of Bell Atlantic common stock for $4,424,000 directly from Bell Atlantic. In addition, during 1994 and 1993, the participating employing companies transferred 230,738 and 159,800 shares of Bell Atlantic common stock, valued at $11,756,000 and $8,776,000 respectively, to the Plan for employing company matching allocations to employee accounts. 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 6.77% to 16.3% of the original amount ($304.3 million) from 1993 to 1999, respectively. The final payment will be made on January 1, 2000. The principal amounts under the notes are due as follows (in thousands): 1995.................................... $ 28,299 1996.................................... 32,974 1997.................................... 38,097 1998.................................... 43,713 1999.................................... 49,867 2000.................................... 27,113 -------- $220,063 ========
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, 1994, the carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR AMOUNT VALUE ----------------------- (DOLLARS IN THOUSANDS) BASP............................................... $351,248 $364,139 BASSP.............................................. 220,063 228,140 ----------- ----------- $571,311 $592,279 =========== ===========
6. TAX DETERMINATION On May 12, 1990, 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. 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:
1994 ---------------------- (DOLLARS IN THOUSANDS) Net assets available for benefits per the financial statements............................. $1,048,315 Amounts allocated to withdrawing participants..... (9,592) ---------- Net assets available for benefits per the Form 5500............................................. $1,038,723 ==========
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........................................ $66,432 Add: Amounts allocated to withdrawing participants at December 31, 1994.............................. 9,592 Less: Amounts allocated to withdrawing participants at December 31, 1993.............................. (5,382) ------- Benefits paid to participants per the Form 5500.... $70,642 =======
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 28, 1995 /s/ Barbara L. Connor By__________________________________ BARBARA L. CONNOR (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, 1994 ---------------------------------- 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-- 98.6%......................................... 17,293,682 shs. $714,751 $860,361 Temporary Cash Investments--1.4%............... $ 12,656 12,656 12,656 -------- -------- Total.................................... 727,407 873,017 -------- -------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares-- 96.5%......................................... 14,276,353 shs. 581,943 710,249 Temporary Cash Investments--3.5%............... $ 26,074 26,074 26,074 -------- -------- Total.................................... 608,017 736,323 -------- -------- GOVERNMENT MONEY MARKET FUND Temporary Cash Investments--100.0% BT Pyramid Government Securities Cash Fund... 96,256 96,256 96,256 -------- -------- Total.................................... 96,256 96,256 -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES +Contracts with Insurance Companies and Commercial Banks--99.4%....................... American Int'l Life Assurance, 7.02% Maturing 10/1/99..................................... 7,438 7,438 7,438 American Int'l Life Assurance, 5.25% Maturing 4/1/98...................................... 10,504 10,504 10,504 American Int'l Life Assurance, 5.41% Maturing 7/1/96...................................... 5,888 5,888 5,888 Continental Assurance, 5.30% Maturing 10/1/95..................................... 24,323 24,323 24,323 Continental Assurance, 8.75% Maturing 4/1/96. 19,121 19,121 19,121 John Hancock Mutual Life Ins. Co., 5.45% Maturing 4/1/96............................. 32,238 32,238 32,238 John Hancock Mutual Life Ins. Co., 6.31% Maturing 10/1/95............................ 9,314 9,314 9,314 John Hancock Mutual Life Ins. Co., 6.60% Maturing 10/1/99............................ 16,840 16,840 16,840 ITT Hartford Life Ins. Co., 8.54% Maturing 7/1/95...................................... 36,122 36,122 36,122 Metropolitan Life Ins. Co., 5.58% Maturing 1/1/98...................................... 14,309 14,309 14,309 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98...................................... 39,390 39,390 39,390 Metropolitan Life Ins. Co., 5.08% Maturing 1/1/97...................................... 24,031 24,031 24,031 #MBL Life Assurance Corp., 3.0% no maturity date........................................ 7,136 7,136 7,136 New York Life, 5.18% Maturing 7/1/98......... 22,338 22,338 22,338 New York Life, 7.20% Maturing 1/1/2000....... 22,323 22,323 22,323 New York Life, 6.75% Maturing 7/1/99......... 38,501 38,501 38,501 Principal Mutual Life Ins. Co., 5.10% Maturing 1/2/97............................. 14,202 14,202 14,202 Principal Mutual Life Ins. Co., 5.90% Maturing 9/30/97............................ 29,582 29,582 29,582 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96............................ 15,604 15,604 15,604 Principal Mutual Life Ins. Co., 6.00% Maturing 7/1/98............................. 19,965 19,965 19,965 Provident Nat'l Assurance, 5.12% Maturing 1/2/97...................................... 28,479 28,479 28,479 Provident Nat'l Assurance, 4.59% Maturing 4/1/97...................................... 27,254 27,254 27,254
S-1 SCHEDULE I
DECEMBER 31, 1994 --------------------------- 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): The Prudential Ins. Co. of America, 9.06% Maturing 10/1/96............................................ $20,839 $20,839 $20,839 The Prudential Ins. Co. of America, 8.08% Maturing 4/1/97............................................. 19,921 19,921 19,921 The Prudential Ins. Co. of America, 5.91% Maturing 7/1/98............................................. 15,896 15,896 15,896 The Prudential Ins. Co. of America, 5.04% Maturing 1/1/98............................................. 10,119 10,119 10,119 Union Bank of Switzerland, 6.96% Maturing 1/2/95.... 8,982 8,982 8,982 -------- -------- 540,659 540,659 -------- -------- Temporary Cash Investments--0.6% BT Pyramid Government Securities Cash Fund......... 3,105 3,105 3,105 -------- -------- Total........................................... 543,764 543,764 -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN +Contracts with Insurance Companies and Commercial Banks--99.8% American Int'l Life Assurance, 5.11% Maturing 7/1/98............................................. 6,295 6,295 6,295 American Int'l Life Assurance, 7.02% Maturing 10/1/99............................................ 7,467 7,467 7,467 American Int'l Life Assurance, 5.25% Maturing 4/1/98............................................. 4,949 4,949 4,949 Bankers Trust (Delaware), 8.88% Maturing 10/1/95.... 10,950 10,950 10,950 Continental Assurance, 5.26% Maturing 10/2/95....... 13,775 13,775 13,775 Continental Assurance, 8.75% Maturing 7/1/96........ 5,833 5,833 5,833 John Hancock Mutual Life Ins. Co., 5.21% Maturing 4/1/96............................................. 14,685 14,685 14,685 John Hancock Mutual Life Ins. Co., 6.12% Maturing 7/1/95............................................. 4,736 4,736 4,736 John Hancock Mutual Life Ins. Co., 6.57% Maturing 10/1/99............................................ 9,295 9,295 9,295 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98... 16,291 16,291 16,291 Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97... 12,473 12,473 12,473 Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98... 9,580 9,580 9,580 New York Life, 5.35% Maturing 7/1/95................ 11,308 11,308 11,308 New York Life, 5.05% Maturing 4/1/97................ 5,233 5,233 5,233 New York Life, 5.13% Maturing 7/1/98................ 6,372 6,372 6,372 New York Life, 6.75% Maturing 7/1/99................ 7,880 7,880 7,880 New York Life, 7.20% Maturing 10/1/99............... 7,471 7,471 7,471 New York Life, 5.92% Maturing 1/1/99................ 10,042 10,042 10,042 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97............................................ 17,327 17,327 17,327 Principal Mutual Life Ins. Co., 5.20% Maturing 3/31/97............................................ 10,383 10,383 10,383 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96............................................ 3,937 3,937 3,937 Provident Nat'l Assurance, 8.49% Maturing 7/1/95.... 3,851 3,851 3,851 Provident Nat'l Assurance, 4.62% Maturing 7/1/97.... 14,500 14,500 14,500 Provident Nat'l Assurance, 5.10% Maturing 4/1/97.... 6,647 6,647 6,647 The Prudential Ins. Co. of America, 6.78% Maturing 1/1/99............................................. 16,068 16,068 16,068 The Prudential Ins. Co. of America, 5.88% Maturing 7/1/98............................................. 8,150 8,150 8,150 The Prudential Ins. Co. of America, 8.10% Maturing 7/1/96............................................. 13,802 13,802 13,802 Principal Mutual, 6.00% Maturing 7/1/98............. 5,410 5,410 5,410 Union Bank of Switzerland, 6.96% Maturing 1/1/95.... 4,977 4,977 4,977 -------- -------- 269,687 269,687 -------- -------- Temporary Cash Investments--0.2% BT Pyramid Government Securities Cash Fund........... 476 476 476 -------- -------- Total........................................... 270,163 270,163 -------- --------
S-2 SCHEDULE I
DECEMBER 31, 1994 ------------------------------ 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% U.S. Debt Index Fund............................. 1,943,119 shs. $40,577 $37,624 Daily U.S. Debt Market Fund...................... 71,573 816 816 ------- ------- 41,393 38,440 ------- ------- Temporary Cash Investments--0.2% BT Pyramid Government Securities Cash Fund....... $ 68 68 68 ------- ------- Total........................................ 41,461 38,508 ------- ------- U.S. EQUITY INDEX FUND Pooled Common Stock--99.6% *Mellon E.B. Russell 1000 Index Fund............. 878,444 shs. 187,071 206,062 Mellon E.B. Russell 2000 Index Fund.............. 120,168 19,786 23,743 E.B. Daily Opening Stock Index Fund.............. 82,673 9,278 9,373 ------- ------- 216,135 239,178 ------- ------- Temporary Cash Investments--0.4% BT Pyramid Government Securities Cash Fund....... $ 917 917 917 ------- ------- Total........................................ 217,052 240,095 ------- ------- INTERNATIONAL EQUITY INDEX FUND Pooled Common Stock--98.8% International Stock Performance Index............ 163,953 shs. 1,959 1,969 State Street Bank--Australia..................... 89,584 1,388 1,581 State Street Bank--Austria....................... 36,829 833 870 State Street Bank--Belgium....................... 55,541 906 1,062 State Street Bank--Denmark....................... 31,123 606 660 State Street Bank--Finland....................... 40,378 337 575 State Street Bank--France........................ 310,868 6,575 6,649 State Street Bank--Germany....................... 411,452 8,183 9,317 State Street Bank--Hong Kong..................... 14,003 519 539 State Street Bank--Ireland....................... 19,791 217 254 State Street Bank--Italy......................... 373,188 4,390 4,689 State Street Bank--Japan......................... 2,067,206 18,044 20,972 State Street Bank--Malaysia...................... 23,104 292 314 State Street Bank--Netherland.................... 65,773 1,430 1,775 State Street Bank--New Zealand................... 18,651 196 256 State Street Bank--Norway........................ 29,824 468 595 State Street Bank--Singapore..................... 9,084 240 321 State Street Bank--Spain......................... 214,150 2,203 2,182 State Street Bank--Sweden........................ 52,699 886 1,066 State Street Bank--Switzerland................... 54,394 1,000 1,236 State Street Bank--United Kingdom................ 263,751 5,030 5,270 ------- ------- 55,702 62,152 ------- ------- Temporary Cash Investments--1.2% BT Pyramid Government Securities Cash Fund....... $ 811 811 811 ------- ------- Total........................................ 56,513 62,963 ------- -------
S-3 SCHEDULE I
DECEMBER 31, 1994 ------------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- ---------- ---------- LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES Participant Loan Obligations--6.87% to 9.5%.. $ 47,690 $ 47,690 ---------- ---------- Total Loan Fund........................ 47,690 47,690 ---------- ---------- LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN Participant Loan Obligations--6.87% to 9.5%.. 30,420 30,420 ---------- ---------- Total Loan Fund........................ 30,420 30,420 ---------- ---------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares-- 95.7%....................................... 6,147,565 shs. 285,346 305,841 Temporary Cash Investments--4.3%............. $ 13,680 13,680 13,680 ---------- ---------- Total.................................. 299,026 319,521 ---------- ---------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares-- 95.7%....................................... 3,851,561 shs. 178,774 191,615 Temporary Cash Investments--4.3%............. $ 8,635 8,635 8,635 ---------- ---------- Total.................................. 187,409 200,250 ---------- ---------- Grand Total............................ $3,125,178 $3,458,970 ---------- ----------
- -------- * 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 1994, net of third party expenses and after the effect of cash flows, was 6.4% 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. # In July 1991, Mutual Benefit Life Insurance Company ("MBL"), an issuer of an insurance contract for the BASP's IIF, was placed under the control of New Jersey insurance regulators. Since January 1992, interest on the contract has been accrued at a reduced rate of 3.0% per annum. In November 1993, a Rehabilitation Plan was confirmed by a New Jersey court. The Rehabilitation Plan provided MBL contract holders with an opportunity to either (i) cash out at a significantly reduced contract value or (ii) elect to be subject to the terms of the Rehabilitation Plan under which contract balances are preserved at full value and are subject to certain minimum interest rate guarantees. To the extent that actual returns either achieve or exceed the guaranteed minimums, adjustments will be recorded on a prospective basis. Any adjustment is not expected to have a material effect on the BASP IIF yield. Contract balances are expected to be paid out in a series of five annual installments beginning in 2000. Contract holders electing coverage under the Rehabilitation Plan retain the right to cash out at a reduced value. Bell Atlantic has directed the Master Trust's trustee to elect coverage under the Rehabilitation Plan. Although the Rehabilitation Plan has been approved, it is subject to appeals by a group of creditors and may be amended or revised. 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, 1995 on our audits of the financial statements of the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) as of December 31, 1994 and 1993 and for the years then ended, and the schedule of investments of the Bell Atlantic Master Savings Trust as of December 31, 1994, 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, 1994. Coopers & Lybrand L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania April 28, 1995 -----END PRIVACY-ENHANCED MESSAGE-----