-----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, ovUL4ve+p3gabUsgql2RvvuzrziBVqXvYagAcY8V2UjQsjisQcLtsPzjEu7sACFz eua7puAOjMpsc4OgNV8BBA== 0000950109-94-000736.txt : 19940429 0000950109-94-000736.hdr.sgml : 19940429 ACCESSION NUMBER: 0000950109-94-000736 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BELL ATLANTIC CORP CENTRAL INDEX KEY: 0000732712 STANDARD INDUSTRIAL CLASSIFICATION: 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: 94524820 BUSINESS ADDRESS: STREET 1: 1717 ARCH ST CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2159636000 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, 1993 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, 1993. 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, 1993. PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS AMENDMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY AUTHORIZED. Bell Atlantic Corporation By /s/ William O. Albertini ----------------------------- WILLIAM O. ALBERTINI (Vice President and Chief Financial Officer) April 28, 1994 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- EX-99.A 2 EXHIBIT 99A 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, 1993 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, 1993 AND 1992 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, 1993 and 1992........................................ 3-4 Statements of Changes in Net Assets Available for Plan Bene- fits for the years ended December 31, 1993 and 1992.......... 5-6 Notes to Financial Statements................................. 7-12 Signature....................................................... 13 Bell Atlantic Master Savings Trust Schedule of Investments--De- cember 31, 1993................................................ 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, 1993 and 1992, 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, 1993. 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, 1993 and 1992, 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, 1993 presents fairly the information included therein, all in conformity with generally accepted accounting principles. As discussed in Note 2 to the financial statements, the Plan changed its method of accounting for distributions to participants in 1993. Coopers & Lybrand 2400 Eleven Penn Center Philadelphia, Pennsylvania April 15, 1994 2 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1993 (DOLLARS IN THOUSANDS)
U.S. INTERNATIONAL BOND ESOP BELL ATLANTIC U.S. EQUITY EQUITY MARKET INTEREST GOVERNMENT UNALLOCATED SHARES INDEX INDEX INDEX INCOME MONEY MARKET LOAN SHARES FUND FUND* FUND* FUND* FUND FUND* FUND FUND TOTAL ASSETS: ------------- ----------- ------------- ------- -------- ------------ ------- ----------- ---------- Allocated share of trust net investments (Note 4).................. $969,074 $226,146 $34,576 $37,838 $531,875 $91,903 $45,769 $434,468 $2,371,649 Allocations and contributions receivable.......... 3,938 99 105 23 174 20 -- -- 4,359 Fund, plan and other transfers receivable--net..... -- 170 2,419 -- -- -- 402 -- 2,991 Prepaid expenses.... -- -- -- -- -- -- -- 951 951 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Total Assets.... 973,012 226,415 37,100 37,861 532,049 91,923 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 -- -- 223 1,803 2,943 -- -- 6,007 Administrative expenses payable.... 44 142 7 38 284 53 -- -- 568 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Total Liabili- ties............ 1,082 142 7 261 2,087 2,996 -- 405,358 411,933 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Net assets available for Plan benefits (Note 3)............ $971,930 $226,273 $37,093 $37,600 $529,962 $88,927 $46,171 $ 30,061 $1,968,017 ======== ======== ======= ======= ======== ======= ======= ======== ==========
- ----- * See Note 1 See notes to financial statements. 3 BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1992 (DOLLARS IN THOUSANDS)
U.S. INTERNATIONAL BOND ESOP BELL ATLANTIC U.S. EQUITY EQUITY MARKET INTEREST GOVERNMENT UNALLOCATED SHARES INDEX INDEX INDEX INCOME MONEY MARKET LOAN SHARES FUND FUND* FUND* FUND* FUND* FUND* FUND FUND TOTAL ASSETS: ------------- ----------- ------------- ------- -------- ------------ ------- ----------- ---------- Allocated share of trust net investments (Note 4).................. $822,524 $199,842 $10,801 $33,095 $512,198 $104,550 $36,648 $424,645 $2,144,303 Allocations and contributions receivable.......... 6,833 157 45 52 266 41 -- -- 7,394 Fund, plan and other transfers receivable--net..... -- 3,249 839 227 12,828 -- -- -- 17,143 Prepaid expenses.... -- -- -- -- -- -- -- 1,109 1,109 -------- -------- ------- ------- -------- -------- ------- -------- ---------- Total Assets.... 829,357 $203,248 11,685 33,374 525,292 104,591 36,648 425,754 2,169,949 -------- -------- ------- ------- -------- -------- ------- -------- ---------- LIABILITIES: Notes payable (Note 5).................. -- -- -- -- -- -- -- 422,489 422,489 Interest payable.... -- -- -- -- -- -- -- 17,428 17,428 Distributions pay- able................ 31,323 6,319 282 1,170 15,789 3,639 1,343 -- 59,865 Fund, plan and other transfers payable--net........ 15,366 -- -- -- -- 2,040 102 -- 17,508 Administrative expenses payable.... 167 17 13 8 158 132 -- -- 495 -------- -------- ------- ------- -------- -------- ------- -------- ---------- Total Liabili- ties............ 46,856 6,336 295 1,178 15,947 5,811 1,445 439,917 517,785 -------- -------- ------- ------- -------- -------- ------- -------- ---------- Net assets available (deficit) for Plan benefits (Note 3)... $782,501 $196,912 $11,390 $32,196 $509,345 $ 98,780 $35,203 $(14,163) $1,652,164 ======== ======== ======= ======= ======== ======== ======= ======== ==========
- ----- * See Note 1 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, 1993 (DOLLARS IN THOUSANDS)
INTERNATIONAL U.S. BOND ESOP BELL ATLANTIC U.S. EQUITY MARKET INTEREST GOVERNMENT UNALLOCATED SHARES EQUITY INDEX INDEX INCOME MONEY MARKET LOAN SHARES FUND INDEX FUND* FUND* FUND* FUND FUND* FUND FUND TOTAL ------------- ----------- ------------- --------- -------- ------------ ------- ----------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1992 as previously reported. $782,501 $196,912 $11,390 $32,196 $509,345 $98,780 $35,203 $(14,163) $1,652,164 Cumulative effect of accounting change (Note 2)............ 31,323 6,319 282 1,170 15,789 3,639 1,343 -- 59,865 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Net assets available (deficit) for Plan benefits, January 1, 1993..... 813,824 203,231 11,672 33,366 525,134 102,419 36,546 (14,163) 1,712,029 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Employee contribu- tions............... 35,478 17,137 2,981 2,789 26,263 4,685 -- -- 89,333 Employing company contributions and allocations......... 3,581 -- -- -- -- -- -- 40,014 43,595 Transfer of ESOP Shares and participants' bal- ances--net.......... 25,720 3,285 19,604 1,361 (12,278) (11,235) 8,233 (36,124) (1,434) -------- -------- ------- ------- -------- ------- ------- -------- ---------- Total alloca- tions, contribu- tions and trans- fers............ 64,779 20,422 22,585 4,150 13,985 (6,550) 8,233 3,890 131,494 Allocated share of Trust investment ac- tivities (Note 4)... 176,085 21,888 4,184 3,199 35,991 3,022 3,320 73,136 320,825 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Net additions... 240,864 42,310 26,769 7,349 49,976 (3,528) 11,553 77,026 452,319 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Less: Distributions to participants..... 82,105 18,926 1,328 3,050 44,508 9,956 1,893 -- 161,766 Interest expense.. -- -- -- -- -- -- -- 32,534 32,534 Amortization of capitalized ESOP expenses.......... -- -- -- -- -- -- -- 158 158 Administrative expenses.......... 653 342 20 65 640 8 35 110 1,873 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Total deduc- tions........... 82,758 19,268 1,348 3,115 45,148 9,964 1,928 32,802 196,331 -------- -------- ------- ------- -------- ------- ------- -------- ---------- Net assets available for Plan benefits, December 31, 1993 (Note 3)............ $971,930 $226,273 $37,093 $37,600 $529,962 $88,927 $46,171 $30,061 $1,968,017 ======== ======== ======= ======= ======== ======= ======= ======== ==========
- ----- * See Note 1 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, 1992 (DOLLARS IN THOUSANDS)
INTERNATIONAL U.S. BOND BELL ATLANTIC U.S. DIVERSIFIED EQUITY MARKET INTEREST GOVERNMENT GOVERNMENT SHARES EQUITY EQUITY INDEX INDEX INCOME MONEY MARKET OBLIGATIONS LOAN FUND INDEX FUND* PORTFOLIO* FUND* FUND* FUND FUND* FUND* FUND ------------- ----------- ----------- ------------- --------- -------- ------------ ----------- ------- Net assets available (deficit) for Plan benefits, December 31, 1991............ $752,397 $ -- $171,594 $ -- $ -- $507,170 $ -- $108,148 $28,463 -------- -------- -------- ------- ------- -------- ------- -------- ------- Employee contribu- tions............... 45,888 10,014 6,288 1,236 1,358 29,436 3,720 1,659 -- Employing company contributions and allocations......... 16,962 -- -- -- -- -- -- -- -- Transfer of ESOP Shares and participants' bal- ances--net.......... (255) 168,173 (151,097) 11,129 31,568 (6,513) 87,276 (90,838) 5,474 -------- -------- -------- ------- ------- -------- ------- -------- ------- Total alloca- tions, contributions and transfers... 62,595 178,187 (144,809) 12,365 32,926 22,923 90,996 (89,179) 5,474 Allocated share of Trust investment ac- tivities (Note 4)... 90,992 21,036 (6,756) (488) 1,608 35,922 8,335 (5,800) 3,198 -------- -------- -------- ------- ------- -------- ------- -------- ------- Net additions... 153,587 199,223 (151,565) 11,877 34,534 58,845 99,331 (94,979) 8,672 -------- -------- -------- ------- ------- -------- ------- -------- ------- Less: Distributions to participants. 123,002 2,392 19,539 467 2,309 56,205 397 13,035 1,932 Interest expense.. -- -- -- -- -- -- -- -- -- Amortization of capitalized ESOP expenses.......... -- -- -- -- -- -- -- -- -- Administrative expenses.......... 481 (81) 490 20 29 465 154 134 -- -------- -------- -------- ------- ------- -------- ------- -------- ------- Total deduc- tions........... 123,483 2,311 20,029 487 2,338 56,670 551 13,169 1,932 -------- -------- -------- ------- ------- -------- ------- -------- ------- Net assets available (deficit) for Plan benefits, December 31, 1992 (Note 3)... $782,501 $196,912 $ -- $11,390 $32,196 $509,345 $98,780 $ -- $35,203 ======== ======== ======== ======= ======= ======== ======= ======== ======= ESOP UNALLOCATED SHARES FUND TOTAL ----------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1991............ $(24,349) $1,543,423 ----------- ---------- Employee contribu- tions............... -- 99,599 Employing company contributions and allocations......... 38,406 55,368 Transfer of ESOP Shares and participants' bal- ances--net.......... (36,724) 18,193 ----------- ---------- Total alloca- tions, contributions and transfers... 1,682 173,160 Allocated share of Trust investment ac- tivities (Note 4)... 44,627 192,674 ----------- ---------- Net additions... 46,309 365,834 ----------- ---------- Less: Distributions to participants. -- 219,278 Interest expense.. 35,475 35,475 Amortization of capitalized ESOP expenses.......... 558 558 Administrative expenses.......... 90 1,782 ----------- ---------- Total deduc- tions........... 36,123 257,093 ----------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1992 (Note 3)... $(14,163) $1,652,164 =========== ==========
- ----- * See Note 1 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, 1993. 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, an International Equity Index Fund, a U.S. Bond Market Index Fund, an Interest Income Fund or a Government Money Market Fund. 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. Effective April 30, 1992, the Diversified Equity Portfolio ("DEP") and Government Obligations Fund ("GOF") were eliminated as investment options under the Plan and replaced by the U.S. Equity Index Fund ("USEF") and Government Money Market Fund ("GMMF"), respectively. The Plan concurrently introduced two new investment options, the U.S. Bond Market Index Fund ("BNDF") and the International Equity Index Fund ("INTF"), and changed the name of the Guaranteed Interest fund ("GIF") to the Interest Income Fund ("IIF"). Participants were provided with a special opportunity to redirect both their investment balances and future contributions as a result of these changes. Participants who did not make transfer elections for their DEP or GOF balances had those assets transferred to the USEF and GMMF, respectively, effective April 30, 1992. 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. 7 Certain administrative expenses of the Plan and ESOP for Salaried Employees Trust (the "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 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 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 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. This represents the amounts allocated to withdrawing participants but not yet paid at December 31, 1992. Prior year's financial statements were not restated. 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:
1993 1992 --------------------------------- --------------------------------- NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE EMPLOYEES OF PER EMPLOYEES OF PER PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT ------------- ----------- ------- ------------- ----------- ------- Bell Atlantic Shares Fund................... 24,294 204,798,989 $4.7288 25,470 191,292,259 $4.0906 U.S. Equity Index Fund.. 11,916 23,762,499 9.4827 12,238 22,974,760 8.5708 International Equity Index Fund............. 3,592 29,684,503 1.2468 2,272 11,863,934 0.9601 U.S. Bond Index Market Fund................... 3,325 32,029,036 1.1729 2,910 30,042,598 1.0717 Interest Income Fund.... 17,836 129,351,265 4.0809 19,378 133,542,728 3.8141 Government Money Market Fund................... 7,224 11,095,158 7.9893 8,070 12,762,509 7.7399 Loan Fund............... 5,522 -- -- 4,752 -- --
At December 31, 1993, 19,039 participants were actively contributing to the Plan; 6,786 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 Effective January 1, 1991, certain assets of the BASP were commingled for investment purposes in the Master Trust with the assets of the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) ("BASSP"). 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:
1993 1992 ----- ----- ESOP Unallocated Shares Fund (for the BASP)....................... 100.0% 100.0% ESOP Unallocated Shares Fund (for the BASSP)...................... -- -- Bell Atlantic Shares Fund (for the BASP).......................... 100.0% 100.0% Bell Atlantic Shares Fund (for the BASSP)......................... -- -- U.S. Equity Index Fund............................................ 95.2% 96.4% International Equity Index Fund................................... 90.8% 88.3% U.S. Bond Market Index Fund....................................... 88.9% 89.2% Interest Income Fund (for the BASP)............................... 100.0% 100.0% Interest Income Fund (for the BASSP).............................. -- -- Government Money Market Fund...................................... 94.0% 95.0% Loan Fund (for the BASP).......................................... 100.0% 100.0% Loan Fund (for the BASSP)......................................... -- --
9 At December 31, the financial position of the Master Trust was as follows:
1993 1992 ----------- ----------- (DOLLARS IN THOUSANDS) ASSETS: Investments at fair value: ESOP Unallocated Shares Fund--BASP: Bell Atlantic Corporation common shares............ $ 420,812 $ 411,145 Temporary cash investments......................... 13,675 13,498 ESOP Unallocated Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 263,646 257,590 Temporary cash investments......................... 7,915 8,518 Bell Atlantic Shares Fund--BASP: Bell Atlantic Corporation common shares............ 960,455 814,356 Temporary cash investments......................... 11,038 4,168 Bell Atlantic Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 805,178 707,245 Temporary cash investments......................... 11,810 8,859 U.S. Equity Index Fund: Fund shares........................................ 235,911 200,157 Temporary cash investments......................... 3,039 7,127 International Equity Index Fund: Fund shares........................................ 37,461 11,594 Temporary cash investments......................... 105 641 U.S. Bond Market Index Fund: Fund shares........................................ 42,842 35,454 Temporary cash investments......................... 40 1,634 Interest Income Fund--BASP: Contracts with insurance companies and commercial banks............................................. 530,588 508,823 Temporary cash investments......................... 2,203 -- Interest Income Fund--BASSP: Contracts with insurance companies and commercial banks............................................. 240,864 254,723 Temporary cash investments......................... 10,672 -- Government Money Market Fund: Temporary cash investments......................... 97,958 109,753 Loan Fund--BASP: Loans receivable from participants................. 45,769 36,648 Loan Fund--BASP: Loans receivable from participants................. 24,491 -- ----------- ----------- Total investments................................ 3,766,472 3,391,933 Receivables: Dividends and interest income...................... 6,617 5,366 Receivables for investments sold................... 2,801 8,718 ----------- ----------- Total assets..................................... 3,775,890 3,406,017 LIABILITIES: Payable for investments purchased................... 19,779 -- ----------- ----------- Net investments.................................. $3,756,111 $3,406,017 =========== =========== Investments at cost: ................................. $3,023,806 $ 2,953,112 =========== ===========
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 BASP, 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 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 Trustee of the Plan 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. 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, 1993 and 1992. The Master Trust's investment activities for the years ended December 31 were as follows:
1993 1992 -------- -------- (DOLLARS IN THOUSANDS) Investment Activities: Dividends on Bell Atlantic Corporation common shares: Non-ESOP shares........................................... $ 76,824 $ 74,801 ESOP shares............................................... 33,446 35,697 Other dividends............................................ 7,085 5,341 Interest Income Fund (BASP) income......................... 35,991 35,922 Interest Income Fund (BASSP) income........................ 16,740 18,228 Other interest............................................. 11,569 11,105 Net appreciation in value of investments................... 350,526 136,125 -------- -------- Net investment activities.............................. $532,181 $317,219 ======== ======== Allocated share of net investment activities: BASP....................................................... $320,825 $192,674 BASSP...................................................... 211,356 124,545
The value per share of Bell Atlantic common stock increased from $51.25 at December 31, 1992 to $59.38 at December 31, 1993. This represents a 15.85% increase in the value per share. At December 31, 1993, approximately 41% of BASP assets and 59% of BASSP assets were invested in the Bell Atlantic Shares Funds. Between January 1 and April 15, 1994, Bell Atlantic common stock closing prices have ranged from $49.63 to $58.63 per share. During 1992, the Plan purchased 137,600 shares of Bell Atlantic common stock for $6,585,000, directly from Bell Atlantic. In addition, during 1993, the participating employing companies transferred 58,660 shares of Bell Atlantic common stock, valued at $3,034,000, 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. 11 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): 1994..................................... $ 38,358 1995..................................... 45,168 1996..................................... 52,630 1997..................................... 60,808 1998..................................... 69,771 Thereafter............................... 122,871 -------- $389,606 ========
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, 1993, the carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR AMOUNT VALUE ----------- --------- (DOLLARS IN THOUSANDS) BASP............................................... $389,606 $435,034 BASSP.............................................. 244,096 272,557 -------- -------- $633,702 $707,591 ======== ========
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:
1993 ---------------------- (DOLLARS IN THOUSANDS) Net assets available for benefits per the financial statements........................... $1,968,017 Amounts allocated to withdrawing participants... (7,575) ---------- Net assets available for benefits per the Form 5500........................................... $1,960,442 ==========
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
1993 ---------------------- (DOLLARS IN THOUSANDS) Benefits paid to participants per the financial statements..................................... $161,766 Add: Amounts allocated to withdrawing participants at December 31, 1993.............. 7,575 Less: Amounts allocated to withdrawing participants at December 31, 1992.............. (59,865) -------- Benefits paid to participants per the Form 5500........................................... $109,476 ========
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, 1994 By /s/ Barbara L. Connor ---------------------------------- 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, 1993 ------------------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ----------- -------- ------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares--96.8%......... 7,102,308 shs. $329,660 $420,812 Temporary Cash Investments--3.2%........................ $ 13,675 13,675 13,675 -------- -------- Total............................................. 343,335 434,487 -------- -------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares--97.1%......... 4,449,725 shs. 206,539 263,646 Temporary Cash Investments--2.9%....................... $ 7,915 7,915 7,915 -------- -------- Total............................................. 214,454 271,561 -------- -------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares--98.9%......... 16,210,215 shs. 658,252 960,455 Temporary Cash Investments--1.1%....................... $ 11,038 11,038 11,038 -------- -------- Total............................................. 669,290 971,493 -------- -------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares--98.6%......... 13,589,491 shs. 547,143 805,178 Temporary Cash Investments--1.4%........................ $ 11,810 11,810 11,810 -------- -------- Total............................................. 558,953 816,988 -------- -------- U.S. EQUITY INDEX FUND Pooled Common Stock--98.3% *Mellon E.B. Russell 1000 Index Fund.................. 888,150 shs. 183,147 207,514 Mellon E.B. Russell 2000 Index Fund................... 105,158 16,492 21,150 E.B. Daily Opening Stock Index Fund................... 62,914 6,971 7,247 -------- -------- 206,610 235,911 -------- -------- Temporary Cash Investments--1.7% BT Pyramid Government Securities Cash Fund........... $ 2,175 2,175 2,175 Mellon Capital Short Term Fund....................... $ 864 864 864 -------- -------- Total............................................ 209,649 238,950 -------- -------- INTERNATIONAL EQUITY INDEX FUND Pooled Common Stock--99.7% International Stock Performance Index................ 165,137 shs. 1,853 1,844 State Street Bank--Australia......................... 60,071 872 993 State Street Bank--Austria........................... 25,221 550 635 State Street Bank--Belgium........................... 38,620 595 668 State Street Bank--Denmark........................... 21,317 395 435 State Street Bank--Finland........................... 39,957 260 378
S-1 SCHEDULE I
DECEMBER 31, 1993 ------------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ----------- ------ ------- INTERNATIONAL EQUITY INDEX FUND--(CONTINUED): State Street Bank--France........................ 196,010 shs. $3,993 $4,407 State Street Bank--Germany....................... 290,811 5,508 6,270 State Street Bank--Hong Kong..................... 8,425 266 454 State Street Bank--Ireland....................... 13,388 137 150 State Street Bank--Italy......................... 299,867 3,291 3,383 State Street Bank--Japan......................... 1,135,192 8,613 9,469 State Street Bank--Malaysia...................... 19,886 244 338 State Street Bank--Netherland.................... 44,428 897 1,061 State Street Bank--New Zealand................... 12,539 114 156 State Street Bank--Norway........................ 21,791 319 358 State Street Bank--Singapore..................... 5,938 141 198 State Street Bank--Spain......................... 158,020 1,565 1,694 State Street Bank--Sweden........................ 43,350 673 733 State Street Bank--Switzerland................... 37,966 630 831 State Street Bank--United Kingdom................ 148,635 2,712 3,006 ------- ------- 33,628 37,461 ------- ------- Temporary Cash Investments--0.3% BT Pyramid Government Securities Cash Fund....... $ 105 105 105 ------- ------- Total........................................ 33,733 37,566 ------- ------- U.S. BOND MARKET INDEX FUND Bond Funds--99.9% U.S. Debt Index Fund............................. 2,018,205 shs. 39,327 40,264 Daily U.S. Debt Market Fund...................... 219,239 2,480 2,578 ------- ------- 41,807 42,842 ------- ------- Temporary Cash Investments--0.1% BT Pyramid Government Securities Cash Fund....... $ 40 40 40 ------- ------- Total ....................................... 41,847 42,882 ------- ------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES +Contracts with Insurance Companies and Commercial Banks--99.6%...................................... American Int'l Life Assurance, 5.25% Maturing 4/1/98.......................................... $ 13,738 $13,738 $13,738 American Int'l Life Assurance, 5.41% Maturing 6/28/96......................................... 10,818 10,818 10,818 Connecticut General Life Ins. Co., 6.48% Maturing 12/31/94........................................ 2,386 2,386 2,386 Continental Assurance, 5.30% Maturing 10/2/95.... 26,084 26,084 26,084 Continental Assurance, 8.75% Maturing 4/1/96..... 19,852 19,852 19,852 The Hartford Life Ins. Co., 8.72% Maturing 7/1/95.......................................... 75,282 75,282 75,282 John Hancock Mutual Life Ins. Co., 5.45% Maturing 4/1/96.......................................... 35,655 35,655 35,655 John Hancock Mutual Life Ins. Co., 6.34% Maturing 10/2/95......................................... 16,942 16,942 16,942 Metropolitan Life Ins. Co., 5.58% Maturing 1/1/98.......................................... 15,302 15,302 15,302 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98.......................................... 41,768 41,768 41,768 Metropolitan Life Ins. Co., 8.29% Maturing 10/1/94......................................... 4,463 4,463 4,463 Metropolitan Life Ins. Co., 5.08% Maturing 1/1/97.......................................... 25,823 25,823 25,823
S-2 SCHEDULE I
DECEMBER 31, 1993 -------------------------------- 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 Mutual Benefit Life Ins. Co., 3.0% no maturity date..... 6,454 6,454 6,454 Principal Mutual Life Ins. Co., 5.10% Maturing 1/1/97........ 15,258 15,258 15,258 Principal Mutual Life Ins. Co., 5.90% Maturing 9/30/97....... 31,541 31,541 31,541 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96....... 24,580 24,580 24,580 Provident Nat'l Assurance, 5.12% Maturing 1/2/97............. 30,369 30,369 30,369 Provident Nat'l Assurance, 4.59% Maturing 4/1/97............. 28,010 28,010 28,010 Provident Nat'l Assurance, 7.07% Maturing 10/1/94............ 14,112 14,112 14,112 The Prudential Ins. Co. of America, 9.06% Maturing 10/1/96... 43,403 43,403 43,403 The Prudential Ins. Co. of America, 8.08% Maturing 4/1/97.... 27,805 27,805 27,805 Union Bank of Switzerland, 6.96% Maturing 1/2/95............. 20,943 20,943 20,943 -------- -------- 530,588 530,588 -------- -------- Temporary Cash Investments--0.4% BT Pyramid Government Securities Cash Fund.................. $ 2,203 2,203 2,203 -------- -------- Total.................................................... 532,791 532,791 -------- -------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN +Contracts with Insurance Companies and Commercial Banks--95.8% American Int'l Life Assurance, 5.25% Maturing 4/1/98......... $ 6,404 $ 6,404 $ 6,404 Allstate Insurance Co., 5.85% Maturing 4/1/94................ 7,785 7,785 7,785 Bankers Trust (Delaware), 8.88% Maturing 10/1/95............. 17,878 17,878 17,878 Continental Assurance, 5.26% Maturing 10/2/95................ 14,900 14,900 14,900 Continental Assurance, 8.75% Maturing 7/1/96................. 6,105 6,105 6,105 John Hancock Mutual Life Ins. Co., 5.21% Maturing 4/1/96..... 16,886 16,886 16,886 John Hancock Mutual Life Ins. Co., 6.12% Maturing 7/1/95..... 7,649 7,649 7,649 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98............ 17,417 17,417 17,417 Metropolitan Life Ins. Co., 8.26% Maturing 10/1/94........... 3,111 3,111 3,111 Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97............ 13,519 13,519 13,519 New York Life, 5.35% Maturing 7/1/96......................... 12,220 12,220 12,220 New York Life, 5.05% Maturing 4/1/97......................... 5,671 5,671 5,671 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97....... 18,625 18,625 18,625 Principal Mutual Life Ins. Co., 5.20% Maturing 3/31/97....... 11,235 11,235 11,235 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96....... 6,269 6,269 6,269 Provident Nat'l Assurance, 8.49% Maturing 7/1/95............. 10,565 10,565 10,565 Provident Nat'l Assurance, 4.62% Maturing 7/1/97............. 15,913 15,913 15,913 Provident Nat'l Assurance, 5.10% Maturing 4/1/97............. 7,421 7,421 7,421 The Prudential Ins. Co. of America, 6.95% Maturing 10/1/94... 8,389 8,389 8,389 The Prudential Ins. Co. of America, 8.10% Maturing 7/1/96.... 19,485 19,485 19,485 Union Bank of Switzerland, 6.96% Maturing 1/1/95............. 13,417 13,417 13,417 -------- -------- 240,864 240,864 -------- -------- Temporary Cash Investments--4.2% BT Pyramid Government Securities Cash Fund................... $10,672 10,672 10,672 -------- -------- Total.................................................... 251,536 251,536 -------- --------
S-3 SCHEDULE I
DECEMBER 31, 1993 --------------------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ----------- ---------- ---------- GOVERNMENT MONEY MARKET FUND Temporary Cash Investments--100.0% BT Pyramid Government Securities Cash Fund...... $97,958 $ 97,958 $ 97,958 ---------- ---------- Total....................................... 97,958 97,958 ---------- ---------- LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES Participant Loan Obligations--6.25% to 12.0%...... $ 45,769 $ 45,769 ---------- ---------- Total Loan Fund............................. 45,769 45,769 ---------- ---------- LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN Participant Loan Obligations--6.66% to 7.0%....... $ 24,491 $ 24,491 ---------- ---------- Total Loan Fund............................. 24,491 24,491 ---------- ---------- Grand Total................................. $3,023,806 $3,766,472 ---------- ----------
- -------- * Investment represents 5% or more to 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 1993, net of third party expenses and after the effect of cash flows, was 7.0% for the BASP and 6.9% 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. # See Note 4. Percentages represent percentage of total investments of each fund. S-4 EX-99.B 3 EXHIBIT 99B 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, 1993 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 FINANCIAL STATEMENTS DECEMBER 31, 1993 AND 1992 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 December 31, 1993 and 1992................................... 3-4 Statements of Changes in Net Assets Available for Plan Benefits for the years ended December 31, 1993 and 1992...... 5-6 Notes to Financial Statements................................. 7-12 Signature....................................................... 13 Bell Atlantic Master Savings Trust Schedule of Investments-- December 31, 1993.............................................. 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, 1993 and 1992, 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, 1993. 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, 1993 and 1992, 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, 1993 presents fairly the information included therein, all in conformity with generally accepted accounting principles. As discussed in Note 2 to the financial statements, the Plan changed its method of accounting for distributions to participants in 1993. Coopers & Lybrand 2400 Eleven Penn Center Philadelphia, Pennsylvania April 15, 1994 2 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 U.S.EQUITY EQUITY U.S.BOND INTEREST GOVERNMENT UNALLOCATED SHARES INDEX INDEX MARKET INCOME MONEY MARKET LOAN SHARES FUND FUND* FUND* INDEX FUND* FUND FUND* FUND FUND TOTAL ASSETS: ------------- ----------- ------------- ----------- -------- ------------ ------- ----------- ---------- Allocated share of trust net investments (Note 4).......... $811,002 $11,427 $3,491 $4,720 $251,255 $5,816 $24,491 $272,260 $1,384,462 Allocations and contributions receivable........ 6,514 44 27 12 479 15 -- -- 7,091 Fund, plan and other transfers receivable--net... -- 33 283 -- -- -- 793 -- 1,109 Prepaid expenses... -- -- -- -- -- -- -- 596 596 -------- ------- ------ ------ -------- ------ ------- -------- ---------- Total Assets.... 817,516 11,504 3,801 4,732 251,734 5,831 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 -- -- 80 658 62 -- -- 1,771 Administrative expenses payable.. 273 6 1 5 244 -- -- -- 529 -------- ------- ------ ------ -------- ------ ------- -------- ---------- Total Liabilities.... 1,244 6 1 85 902 62 -- 253,965 256,265 -------- ------- ------ ------ -------- ------ ------- -------- ---------- Net assets available for Plan benefits (Note 3). 816,272 11,498 3,800 4,647 250,832 5,769 25,284 18,891 1,136,993 ======== ======= ====== ====== ======== ====== ======= ======== ==========
- ----- * See Note 1 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, 1992 (DOLLARS IN THOUSANDS)
. INTERNATIONAL ESOP BELL ATLANTIC U.S.EQUITY EQUITY U.S.BOND INTEREST GOVERNMENT UNALLOCATED SHARES INDEX INDEX MARKET INCOME MONEY MARKET SHARES FUND FUND* FUND* INDEX FUND* FUND FUND* FUND TOTAL ASSETS: ------------- ----------- ------------- ----------- -------- ------------ ----------- ---------- Allocated share of trust net investments (Note 4).............. $720,868 $7,463 $1,436 $3,998 $256,337 $5,503 $266,109 $1,261,714 Allocations and contributions receivable............ 6,740 74 15 22 614 22 -- 7,487 Fund, plan and other transfers receivable-- net................... -- 608 12 74 118 58 -- 870 Prepaid expenses....... -- -- -- -- -- -- 695 695 -------- ------ ------ ------ -------- ------ -------- ---------- Total Assets........ 727,608 8,145 1,463 4,094 257,069 5,583 266,804 1,270,766 -------- ------ ------ ------ -------- ------ -------- ---------- LIABILITIES: Notes payable (Note 5). -- -- -- -- -- -- 264,697 264,697 Accrued interest....... -- -- -- -- -- -- 10,919 10,919 Distributions payable.. 54,166 257 79 181 18,295 249 -- 73,227 Fund, plan and other transfers payable-- net................... 877 -- -- -- -- -- -- 877 Administrative expenses payable............... 337 -- (2) (3) 75 (2) -- 405 -------- ------ ------ ------ -------- ------ -------- ---------- Total Liabilities... 55,380 257 77 178 18,370 247 275,616 350,125 -------- ------ ------ ------ -------- ------ -------- ---------- Net assets available (deficit) for Plan benefits (Note 3)..... $672,228 $7,888 $1,386 $3,916 $238,699 $5,336 $ (8,812) $ 920,641 ======== ====== ====== ====== ======== ====== ======== ==========
- ----- * See Note 1 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, 1993 (DOLLARS IN THOUSANDS)
INTERNATIONAL U.S.BOND ESOP BELL ATLANTIC U.S. EQUITY MARKET INTEREST GOVERNMENT UNALLOCATED SHARES EQUITY INDEX INDEX INCOME MONEY MARKET LOAN SHARES FUND INDEX FUND* FUND* FUND* FUND FUND* FUND FUND TOTAL ------------- ----------- ------------- --------- -------- ------------ ------- ----------- ---------- Net assets available (deficit) for Plan benefits, December 31, 1992 as previously reported... $672,228 $ 7,888 $1,386 $3,916 $238,699 $5,336 $ -- $(8,812) $920,641 Cumulative effect of accounting change (Note 2).............. 54,166 257 79 181 18,295 249 -- -- 73,227 -------- ------- ------ ------ -------- ------ ------- ------- ---------- Net assets available (deficit) for Plan benefits, January 1, 1993....... 726,394 8,145 1,465 4,097 256,994 5,585 -- (8,812) 993,868 -------- ------- ------ ------ -------- ------ ------- ------- ---------- Employee contributions......... 30,159 2,691 641 716 28,349 874 -- -- 63,430 Employing company contributions and allocations........... 5,770 -- -- -- -- -- -- 24,958 30,728 Transfer of ESOP Shares and participants' balances--net......... (10,668) 312 1,336 (195) (13,230) (303) 24,940 (22,492) (20,300) -------- ------- ------ ------ -------- ------ ------- ------- ---------- Total allocations, contributions and transfers.... 25,261 3,003 1,977 521 15,119 571 24,940 2,466 73,858 Allocated share of Trust investment activities (Note 4)... 146,161 1,010 491 398 16,740 177 589 45,790 211,356 -------- ------- ------ ------ -------- ------ ------- ------- ---------- Net additions..... 171,422 4,013 2,468 919 31,859 748 25,529 48,256 285,214 -------- ------- ------ ------ -------- ------ ------- ------- ---------- Less: Distributions to participants.... 80,420 633 118 349 37,368 546 96 -- 119,530 Interest expense......... -- -- -- -- -- -- -- 20,384 20,384 Amortization of capitalized ESOP expenses........ -- -- -- -- -- -- -- 99 99 Administrative expenses........ 1,124 27 15 20 653 18 149 70 2,076 -------- ------- ------ ------ -------- ------ ------- ------- ---------- Total deductions.. 81,544 660 133 369 38,021 564 245 20,553 142,089 -------- ------- ------ ------ -------- ------ ------- ------- ---------- Net assets available for Plan benefits, December 31, 1993 (Note 3).............. $816,272 $11,498 $3,800 $4,647 $250,832 $5,769 $25,284 $18,891 $1,136,993 ======== ======= ====== ====== ======== ====== ======= ======= ==========
- ----- * See Note 1 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, 1992 (DOLLARS IN THOUSANDS)
INTERNATIONAL GOVERNMENT ESOP BELL ATLANTIC U.S. EQUITY DIVERSIFIED EQUITY U.S. BOND INTEREST MONEY GOVERNMENT UNALLOCATED SHARES INDEX EQUITY INDEX MARKET INCOME MARKET OBLIGATIONS SHARES FUND FUND* PORTFOLIO* FUND* INDEX FUND* FUND FUND* FUND* FUND ------------- ----------- ----------- ------------- ----------- -------- ---------- ----------- ----------- Net assets available (deficit) for Plan benefits, December 31, 1991........... $618,593 $ -- $1,733 $ -- $ -- $238,530 $ -- $1,093 $(15,497) -------- ------ ------ ------ ------ -------- ------ ------ -------- Employee contributions...... 39,273 1,561 522 290 369 32,240 604 133 -- Employing company contributions and allocations........ 13,279 23,948 Transfer of ESOP Shares and participants' balances--net...... 18,915 6,879 (3,067) 1,254 3,644 (10,737) 5,264 (1,542) (22,755) -------- ------ ------ ------ ------ -------- ------ ------ -------- Total allocations, contributions and transfers... 71,467 8,440 (2,545) 1,544 4,013 21,503 5,868 (1,409) 1,193 Allocated share of Trust investment activities (Note 4)................. 77,665 (317) 883 (54) 168 18,227 (231) 328 27,876 -------- ------ ------ ------ ------ -------- ------ ------ -------- Net additions.... 149,132 8,123 (1,662) 1,490 4,181 39,730 5,637 (1,081) 29,069 -------- ------ ------ ------ ------ -------- ------ ------ -------- Less: Distributions to participants 94,734 228 68 101 261 39,242 296 11 -- Interest expense...... -- -- -- -- -- -- -- -- 22,227 Amortization of capitalized ESOP expense -- -- -- -- -- -- -- -- 100 Administrative expenses..... 763 7 3 3 4 319 5 1 57 -------- ------ ------ ------ ------ -------- ------ ------ -------- Total deductions.. 95,497 235 71 104 265 39,561 301 12 22,384 -------- ------ ------ ------ ------ -------- ------ ------ -------- Net assets available (deficit) for Plan benefits, December 31, 1992 (Note 3).. $672,228 $7,888 $ -- $1,386 $3,916 $238,699 $5,336 $ -- $ (8,812) ======== ====== ====== ====== ====== ======== ====== ====== ======== TOTAL --------- Net assets available (deficit) for Plan benefits, December 31, 1991........... $844,452 -------- Employee contributions...... 74,992 Employing company contributions and allocations........ 37,227 Transfer of ESOP Shares and participants' balances--net...... (2,145) -------- Total allocations, contributions and transfers... 110,074 Allocated share of Trust investment activities (Note 4)................. 124,545 -------- Net additions.... 234,619 -------- Less: Distributions to participants. 134,941 Interest expense...... 22,227 Amortization of capitalized ESOP expenses 100 Administrative expenses..... 1,162 -------- Total deductions...... 158,430 -------- Net assets available (deficit) for Plan benefits, December 31, 1992 (Note 3).. $920,641 ========
- ---------- * See Note 1 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, 1993. 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, an International Equity Index Fund, a U.S. Bond Market Index Fund, an Interest Income Fund or a Government Money Market Fund. 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. Effective April 30, 1992, the Diversified Equity Portfolio ("DEP") and Government Obligations Fund ("GOF") were eliminated as investment options under the Plan and replaced by the U.S. Equity Index Fund ("USEF") and Government Money Market Fund ("GMMF"), respectively. The Plan concurrently introduced two new investment options, the U.S. Bond Market Index Fund ("BNDF") and the International Equity Index Fund ("INTF"), and changed the name of the Guaranteed Interest Fund ("GIF") to the Interest Income Fund ("IIF"). Participants were provided with a special opportunity to redirect both their investment balances and future contributions as a result of these changes. Participants who did not make transfer elections for their DEP or GOF balances had those assets transferred to the USEF and GMMF, respectively, effective April 30, 1992. 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 7 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. Certain administrative expenses of the Plan and ESOP (Non-Salaried Employees) Trust (the "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 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 is 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, 1993 and 1992 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 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 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. This represents the amounts allocated to withdrawing participants but not yet paid at December 31, 1992. Prior year's financial statements were not restated. 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:
1993 1992 -------------------------------- --------------------------------- NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE EMPLOYEES OF PER EMPLOYEES OF PER PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT ------------- ----------- ------ ------------- ----------- ------- Bell Atlantic Shares Fund................... 41,866 168,981,473 4.8068 43,872 161,386,330 $4.1653 U.S. Equity Index Fund.. 3,270 7,726,805 1.4852 2,721 5,898,672 1.3373 International Equity Index Fund............. 1,437 3,023,119 1.2549 914 1,433,683 0.9673 U.S. Bond Index Market Fund................... 1,711 3,918,074 1.1844 1,337 3,614,087 1.0836 Interest Income Fund.... 28,460 58,433,065 4.2625 30,642 59,828,322 3.9897 Government Money Market Fund................... 1,978 4,811,399 1.1959 1,741 4,569,522 1.1677 Loan Fund............... 5,460 -- -- -- -- --
At December 31, 1993, 35,872 participants were actively contributing to the Plan; 10,130 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 Effective January 1, 1991, certain assets of the BASSP were commingled for investment purposes in the Master Trust with the assets of the Bell Atlantic Savings Plan for Salaried Employees ("BASP"). 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:
1993 1992 ----- ----- ESOP Unallocated Shares Fund (for the BASSP)................. 100.0% 100.0% ESOP Unallocated Shares Fund (for the BASP).................. -- -- Bell Atlantic Shares Fund (for the BASSP).................... 100.0% 100.0% Bell Atlantic Shares Fund (for the BASP)..................... -- -- U.S. Equity Index Fund....................................... 4.8% 3.6% International Equity Index Fund.............................. 9.2% 11.7% U.S. Bond Market Index Fund.................................. 11.1% 10.8% Interest Income Fund (for the BASSP)......................... 100.0% 100.0% Interest Income Fund (for the BASP).......................... -- -- Government Money Market Fund................................. 6.0% 5.0% Loan Fund (for the BASSP).................................... 100% -- Loan Fund (for the BASP)..................................... -- --
9 At December 31, the financial position of the Master Trust was as follows:
1993 1992 ----------- ----------- (DOLLARS IN THOUSANDS) ASSETS: Investments at fair value: ESOP Unallocated Shares Fund--BASSP: Bell Atlantic Corporation common shares............ $ 263,646 $ 257,590 Temporary cash investments......................... 7,915 8,518 ESOP Unallocated Shares Fund--BASP: Bell Atlantic Corporation common shares............ 420,812 411,145 Temporary cash investments......................... 13,675 13,498 Bell Atlantic Shares Fund--BASSP: Bell Atlantic Corporation common shares............ 805,178 707,245 Temporary cash investments......................... 11,810 8,859 Bell Atlantic Shares Fund--BASP: Bell Atlantic Corporation common shares............ 960,455 814,356 Temporary cash investments......................... 11,038 4,168 U.S. Equity Index Fund: Fund shares........................................ 235,911 200,157 Temporary cash investments......................... 3,039 7,127 International Equity Index Fund: Fund shares........................................ 37,461 11,594 Temporary cash investments......................... 105 641 U.S. Bond Market Index Fund: Fund shares........................................ 42,842 35,454 Temporary cash investments......................... 40 1,634 Interest Income Fund--BASSP: Contracts with insurance companies and commercial banks............................................. 240,864 254,723 Temporary cash investments......................... 10,672 -- Interest Income Fund--BASP: Contracts with insurance companies and commercial banks............................................. 530,588 508,823 Temporary cash investments......................... 2,203 -- Government Money Market Fund: Temporary cash investments......................... 97,958 109,753 Loan Fund--BASP: Loans receivable from participants................. 45,769 36,648 Loan Fund--BASSP: Loans receivable from participants................. 24,491 -- ----------- ----------- Total investments................................ 3,766,472 3,391,933 Receivables: Dividends and interest income...................... 6,617 5,366 Receivables for investments sold................... 2,801 8,718 ----------- ----------- Total assets..................................... 3,775,890 3,406,017 LIABILITIES: Payable for investments purchased................... 19,779 -- ----------- ----------- Net investments.................................. $3,756,111 $3,406,017 =========== =========== Investments at cost: ................................. $3,023,806 $ 2,958,112 =========== ===========
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, 1993 and 1992. The Master Trust's investment activities for the year ended December 31 was as follows:
1993 1992 ----------- ----------- (DOLLARS IN THOUSANDS) Investment Activities: Dividends on Bell Atlantic Corporation common shares: Non-ESOP shares............................... $ 76,824 $ 74,801 ESOP shares................................... 33,446 35,697 Other dividends................................ 7,085 5,341 Interest Income Fund (BASP) income............. 35,991 35,922 Interest Income Fund (BASSP) income............ 16,740 18,228 Other interest................................. 11,569 11,105 Net appreciation in value of investments....... 350,526 136,125 ----------- ----------- Net investment activities.................. $ 532,181 $317,219 =========== =========== Allocated share of net investment activities: BASP........................................... $ 320,825 $192,674 BASSP.......................................... 211,356 124,545
The value per share of Bell Atlantic common stock increased from $51.25 at December 31, 1992 to $59.38 at December 31, 1993. This represents a 15.85% increase in the value per share. At December 31, 1993, approximately 59% of BASSP assets and 41% of BASP assets were invested in the Bell Atlantic Shares Funds. Between January 1 and April 15, 1994, Bell Atlantic common stock closing prices have ranged from $49.63 to $58.63 per share. During 1993 and 1992, the Plan purchased 76,866 and 347,500 shares of Bell Atlantic common stock for $4,424,000 and $16,124,000, respectively, directly from Bell Atlantic. In addition, during 1993, the participating employing companies transferred 159,800 shares of Bell Atlantic common stock, valued at $8,776,000, 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): 1994.................................... $ 24,032 1995.................................... 28,299 1996.................................... 32,974 1997.................................... 38,097 1998.................................... 43,713 Thereafter............................... 76,981 -------- $244,096 ========
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, 1993, the carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR AMOUNT VALUE ----------------------- (DOLLARS IN THOUSANDS) BASP............................................... $389,606 $435,034 BASSP.............................................. 244,096 272,557 ----------- ----------- $633,702 $707,591 =========== ===========
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:
1993 ---------------------- (DOLLARS IN THOUSANDS) Net assets available for benefits per the financial statements............................. $1,136,993 Amounts allocated to withdrawing participants..... (5,832) ---------- Net assets available for benefits per the Form 5500............................................. $1,131,161 ==========
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
1993 ---------------------- (DOLLARS IN THOUSANDS) Benefits paid to participants per the financial statements........................................ $119,530 Add: Amounts allocated to withdrawing participants at December 31, 1993................. 5,832 Less: Amounts allocated to withdrawing participants at December 31, 1992................. (73,227) -------- Benefits paid to participants per the Form 5500.... $ 52,135 ========
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, 1994 /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, 1993 -------------------------------------------- NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- ----------- -------- -------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYE *Bell Atlantic Corporation Common Shares--96.8%.... 7,102,308 shs. $329,660 $420,812 Temporary Cash Investments--3.2%.................. $ 13,675 13,675 13,675 -------- -------- Total.................................. 343,335 434,487 -------- -------- ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares--97.1%.... 4,449,725 shs. 206,539 263,646 Temporary Cash Investments--2.9%.................. $ 7,915 7,915 7,915 -------- -------- Total.................................. 214,454 271,561 -------- -------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES *Bell Atlantic Corporation Common Shares--98.9%.... 16,210,215 shs. 658,252 960,455 Temporary Cash Investments--1.1%.................. $ 11,038 11,038 11,038 -------- -------- Total.................................. 669,290 971,493 -------- -------- BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN *Bell Atlantic Corporation Common Shares--98.6%.... 13,589,491 shs. 547,143 805,178 Temporary Cash Investments--1.4%.................. $ 11,810 11,810 11,810 -------- -------- Total.................................. 558,953 816,988 -------- -------- U.S. EQUITY INDEX FUND Pooled Common Stock--98.3% *Mellon E.B. Russell 1000 Index Fund............. 888,150 shs. 183,147 207,514 Mellon E.B. Russell 2000 Index Fund............. 105,158 16,492 21,150 E.B. Daily Opening Stock Index Fund............. 62,914 6,971 7,247 -------- -------- 206,610 235,911 -------- -------- Temporary Cash Investments--1.7% BT Pyramid Government Securities Cash Fund...... $ 2,175 2,175 2,175 Mellon Capital Short Term Fund.................. $ 864 864 864 -------- -------- Total.................................. 209,649 238,950 -------- -------- INTERNATIONAL EQUITY INDEX FUND Pooled Common Stock--99.7% International Stock Performance Index........... 165,137 shs. 1,853 1,844 State Street Bank--Australia.................... 60,071 872 993 State Street Bank--Austria...................... 25,221 550 635 State Street Bank--Belgium...................... 38,620 595 668 State Street Bank--Denmark...................... 21,317 395 435 State Street Bank--Finland...................... 39,957 260 378
S-1 SCHEDULE I
DECEMBER 31, 1993 ------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- --------- ------- ------- INTERNATIONAL EQUITY INDEX FUND--(CONTINUED): State Street Bank--France........................ 196,010 shs. $3,993 $4,407 State Street Bank--Germany....................... 290,811 5,508 6,270 State Street Bank--Hong Kong..................... 8,425 266 454 State Street Bank--Ireland....................... 13,388 137 150 State Street Bank--Italy......................... 299,867 3,291 3,383 State Street Bank--Japan......................... 1,135,192 8,613 9,469 State Street Bank--Malaysia...................... 19,886 244 338 State Street Bank--Netherland.................... 44,428 897 1,061 State Street Bank--New Zealand................... 12,539 114 156 State Street Bank--Norway........................ 21,791 319 358 State Street Bank--Singapore..................... 5,938 141 198 State Street Bank--Spain......................... 158,020 1,565 1,694 State Street Bank--Sweden........................ 43,350 673 733 State Street Bank--Switzerland................... 37,966 630 831 State Street Bank--United Kingdom................ 148,635 2,712 3,006 ------- ------- 33,628 37,461 ------- ------- Temporary Cash Investments--0.3% BT Pyramid Government Securities Cash Fund....... $ 105 105 105 ------- ------- Total........................................ 33,733 37,566 ------- ------- U.S. BOND MARKET INDEX FUND Bond Funds--99.9% U.S. Debt Index Fund............................. 2,018,205 shs. 39,327 40,264 Daily U.S. Debt Market Fund...................... 219,239 2,480 2,578 ------- ------- 41,807 42,842 ------- ------- Temporary Cash Investments--0.1% BT Pyramid Government Securities Cash Fund....... $ 40 40 40 ------- ------- Total ....................................... 41,847 42,882 ------- ------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES +Contracts with Insurance Companies and Commercial Banks--99.6%...................................... American Int'l Life Assurance, 5.25% Maturing 4/1/98.......................................... $ 13,738 $13,738 $13,738 American Int'l Life Assurance, 5.41% Maturing 7/1/96.......................................... 10,818 10,818 10,818 Connecticut General Life Ins. Co., 6.48% Maturing 12/31/94........................................ 2,386 2,386 2,386 Continental Assurance, 5.30% Maturing 10/1/95.... 26,084 26,084 26,084 Continental Assurance, 8.75% Maturing 4/1/96..... 19,852 19,852 19,852 The Hartford Life Ins. Co., 8.72% Maturing 7/1/95.......................................... 75,282 75,282 75,282 John Hancock Mutual Life Ins. Co., 5.45% Maturing 4/1/96.......................................... 35,655 35,655 35,655 John Hancock Mutual Life Ins. Co., 6.34% Maturing 10/1/95......................................... 16,942 16,942 16,942
S-2 SCHEDULE I
DECEMBER 31, 1993 ------------------------- 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): Metropolitan Life Ins. Co., 5.58% Maturing 1/1/98.... 15,302 15,302 15,302 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98.... 41,768 41,768 41,768 Metropolitan Life Ins. Co., 8.29% Maturing 10/1/94... 4,463 4,463 4,463 Metropolitan Life Ins. Co., 5.08% Maturing 1/1/97.... 25,823 25,823 25,823 #The Mutual Benefit Life Ins. Co., 3.0% no maturity date................................................ 6,454 6,454 6,454 Principal Mutual Life Ins. Co., 5.10% Maturing 1/1/97.............................................. 15,258 15,258 15,258 Principal Mutual Life Ins. Co., 5.90% Maturing 9/30/97............................................. 31,541 31,541 31,541 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96............................................. 24,580 24,580 24,580 Provident Nat'l Assurance, 5.12% Maturing 1/2/97..... 30,369 30,369 30,369 Provident Nat'l Assurance, 4.59% Maturing 4/1/97..... 28,010 28,010 28,010 Provident Nat'l Assurance, 7.07% Maturing 10/1/94.... 14,112 14,112 14,112 The Prudential Ins. Co. of America, 9.06% Maturing 10/1/96............................................. 43,403 43,403 43,403 The Prudential Ins. Co. of America, 8.08% Maturing 4/1/97.............................................. 27,805 27,805 27,805 Union Bank of Switzerland, 6.96% Maturing 1/2/95..... 20,943 20,943 20,943 ------- ------- 530,588 530,588 ------- ------- Temporary Cash Investments--0.4% BT Pyramid Government Securities Cash Fund.......... $2,203 2,203 2,203 ------- ------- Total............................................ 532,791 532,791 ------- ------- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN +Contracts with Insurance Companies and Commercial Banks--95.8% American Int'l Life Assurance, 5.25% Maturing 4/1/98. $6,404 $ 6,404 $ 6,404 Allstate Insurance Co., 5.85% Maturing 4/1/94........ 7,785 7,785 7,785 Bankers Trust (Delaware), 8.88% Maturing 10/1/95..... 17,878 17,878 17,878 Continental Assurance, 5.26% Maturing 10/2/95........ 14,900 14,900 14,900 Continental Assurance, 8.75% Maturing 7/1/96......... 6,105 6,105 6,105 John Hancock Mutual Life Ins. Co., 5.21% Maturing 4/1/96.............................................. 16,886 16,886 16,886 John Hancock Mutual Life Ins. Co., 6.12% Maturing 7/1/95.............................................. 7,649 7,649 7,649 Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98.... 17,417 17,417 17,417 Metropolitan Life Ins. Co., 8.26% Maturing 10/1/94... 3,111 3,111 3,111 Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97.... 13,519 13,519 13,519 New York Life, 5.35% Maturing 7/1/96................. 12,220 12,220 12,220 New York Life, 5.05% Maturing 4/1/97................. 5,671 5,671 5,671 Principal Mutual Life Ins. Co., 5.90% Maturing 10/1/97............................................. 18,625 18,625 18,625 Principal Mutual Life Ins. Co., 5.20% Maturing 3/31/97............................................. 11,235 11,235 11,235 Principal Mutual Life Ins. Co., 7.84% Maturing 3/31/96............................................. 6,269 6,269 6,269 Provident Nat'l Assurance, 8.49% Maturing 7/1/95..... 10,565 10,565 10,565 Provident Nat'l Assurance, 4.62% Maturing 7/1/97..... 15,913 15,913 15,913 Provident Nat'l Assurance, 5.10% Maturing 4/1/97..... 7,421 7,421 7,421
S-3 SCHEDULE I
DECEMBER 31, 1993 ------------------------------------ NUMBER OF SHARES OR PRINCIPAL FAIR NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE --------------------------------- -------- ---- ----- INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN--(CONTINUED): The Prudential Ins. Co. of America, 6.95% Maturing 10/1/94............................................. 8,389 8,389 8,389 The Prudential Ins. Co. of America, 8.10% Maturing 7/1/96.............................................. 19,485 19,485 19,485 Union Bank of Switzerland, 6.96% Maturing 1/1/95..... 13,417 13,417 13,417 ------- ------- 240,864 240,864 ------- ------- Temporary Cash Investments--4.2% BT Pyramid Government Securities Cash Fund............ $10,672 10,672 10,672 ------- ------- Total............................................ 251,536 251,536 ------- ------- GOVERNMENT MONEY MARKET FUND Temporary Cash Investments--100.0% BT Pyramid Government Securities Cash Fund...... $97,958 $ 97,958 $ 97,958 ---------- ---------- Total....................................... 97,958 97,958 ---------- ---------- LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES Participant Loan Obligations--6.25% to 12.0%...... $ 45,769 $ 45,769 ---------- ---------- Total Loan Fund............................. 45,769 45,769 ---------- ---------- LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN Participant Loan Obligations--6.66% to 7.0%....... $ 24,491 $ 24,491 ---------- ---------- Total Loan Fund............................. 24,491 24,491 ---------- ---------- Grand Total................................. $3,023,806 $3,766,472 ---------- ----------
- -------- * Investment represents 5% or more to 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 1993, net of third party expenses and after the effect of cash flows, was 7.0% for the BASP and 6.9% 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. # See Note 4. Percentages represent percentage of total investments of each fund. S-4 EX-23 4 EXHIBIT 23 EXHIBIT 23 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 15, 1994 on our audits of the financial statements of Bell Atlantic Savings and Security Plan (Non-Salaried Employees) as of December 31, 1993 and 1992 and for the years then ended, and the schedule of investments of the Bell Atlantic Master Savings Trust as of December 31, 1993, 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, 1993. Coopers & Lybrand 2400 Eleven Penn Center Philadelphia, Pennsylvania April 28, 1994 -----END PRIVACY-ENHANCED MESSAGE-----