UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------
FORM 10-Q
---------------------
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2002
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 2-33059
VERIZON HAWAII INC.
A Hawaii Corporation I.R.S. Employer Identification No. 99-0049500
1095 Avenue of the Americas, Room 3868, New York, New York 10036
Telephone Number (212) 395-2121
-------------------------
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND
(b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH REDUCED DISCLOSURE
FORMAT PURSUANT TO GENERAL INSTRUCTION H(2).
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
Verizon Hawaii Inc.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31,
-------------------------------------------------
(Dollars in Millions) (Unaudited) 2002 2001
- ---------------------------------------------------------------------------------------------------------------------------------
OPERATING REVENUES
(including $7.4 and $3.2 from affiliates) $130.7 $143.9
-------------------------------------------------
OPERATING EXPENSES
Operations and support (including $20.2 and $17.6 to affiliates) 68.5 77.9
Depreciation and amortization 26.4 28.9
-------------------------------------------------
94.9 106.8
-------------------------------------------------
OPERATING INCOME 35.8 37.1
OTHER INCOME, NET
(including $(.1) and $0 from affiliates) .7 .1
INTEREST EXPENSE
(including $1.3 and $1.3 to affiliate) 8.6 8.6
-------------------------------------------------
INCOME BEFORE PROVISION FOR INCOME TAXES 27.9 28.6
PROVISION FOR INCOME TAXES 10.3 10.8
-------------------------------------------------
NET INCOME $ 17.6 $ 17.8
=================================================
See Notes to Condensed Consolidated Financial Statements.
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Verizon Hawaii Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
------
(Dollars in Millions) March 31, 2002 December 31, 2001
- ---------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
CURRENT ASSETS
Cash $ .9 $ .3
Short-term investments 33.1 40.5
Accounts receivable:
Trade and other, net of allowances for uncollectibles of $6.7 and $6.2 103.6 110.2
Affiliates 18.3 10.7
Material and supplies 14.2 11.0
Prepaid expenses 1.5 1.3
Deferred income taxes 3.4 4.0
Other 10.7 10.5
---------------------------------------------
185.7 188.5
---------------------------------------------
PLANT, PROPERTY AND EQUIPMENT 1,951.2 1,924.3
Less accumulated depreciation 1,249.4 1,226.8
---------------------------------------------
701.8 697.5
---------------------------------------------
PREPAID PENSION ASSET 484.5 470.9
---------------------------------------------
INVESTMENTS IN UNCONSOLIDATED BUSINESSES 36.5 39.6
---------------------------------------------
OTHER ASSETS 22.4 24.7
---------------------------------------------
TOTAL ASSETS $ 1,430.9 $ 1,421.2
=============================================
See Notes to Condensed Consolidated Financial Statements.
2
Verizon Hawaii Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREOWNER'S INVESTMENT
---------------------------------------
(Dollars in Millions) March 31, 2002 December 31, 2001
- ---------------------------------------------------------------------------------------------------------------------------------
(Unaudited)
CURRENT LIABILITIES
Debt maturing within one year:
Note payable to affiliate $ 183.4 $ 201.8
Accounts payable and accrued liabilities:
Affiliates 39.6 19.5
Other 57.2 69.0
Other liabilities 37.6 36.3
---------------------------------------------
317.8 326.6
---------------------------------------------
LONG-TERM DEBT 428.5 428.6
---------------------------------------------
EMPLOYEE BENEFIT OBLIGATIONS 40.3 41.2
---------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes 241.7 233.4
Unamortized investment tax credits 30.8 31.8
Other 36.4 31.9
---------------------------------------------
308.9 297.1
---------------------------------------------
SHAREOWNER'S INVESTMENT
Common stock $25 par value per share 250.0 250.0
Authorized shares: 18,000,000
Outstanding shares: 10,000,000
Contributed capital 102.0 99.9
Accumulated deficit (16.6) (22.2)
---------------------------------------------
335.4 327.7
---------------------------------------------
TOTAL LIABILITIES AND SHAREOWNER'S INVESTMENT $ 1,430.9 $ 1,421.2
=============================================
See Notes to Condensed Consolidated Financial Statements.
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Verizon Hawaii Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31,
---------------------------------------------
(Dollars in Millions) (Unaudited) 2002 2001
- ---------------------------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES $ 56.8 $ (3.1)
---------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in short-term investments 7.4 2.1
Capital expenditures (33.4) (16.6)
Investment in unconsolidated business (2.1) --
Other, net .2 (.4)
---------------------------------------------
Net cash used in investing activities (27.9) (14.9)
---------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal repayments of borrowings and capital lease obligations -- (.1)
Change in note payable to affiliate (18.4) 47.0
Capital contribution from parent 2.1 --
Dividends paid (12.0) (27.0)
---------------------------------------------
Net cash provided by/(used in) financing activities (28.3) 19.9
---------------------------------------------
NET CHANGE IN CASH .6 1.9
CASH, BEGINNING OF PERIOD .3 1.5
---------------------------------------------
CASH, END OF PERIOD $ .9 $ 3.4
=============================================
See Notes to Condensed Consolidated Financial Statements.
4
Verizon Hawaii Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
Verizon Hawaii Inc. is a wholly owned subsidiary of GTE Corporation (GTE),
which is a wholly owned subsidiary of Verizon Communications Inc. (Verizon
Communications). The accompanying unaudited condensed consolidated financial
statements have been prepared based upon Securities and Exchange Commission
rules that permit reduced disclosure for interim periods. These financial
statements reflect all adjustments that are necessary for a fair presentation of
results of operations and financial position for the interim periods shown
including normal recurring accruals. The results for the interim periods are not
necessarily indicative of results for the full year. The balance sheet at
December 31, 2001 has been derived from the audited financial statements at that
date but does not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements. For
a more complete discussion of significant accounting policies and certain other
information, you should refer to the financial statements included in our 2001
Annual Report on Form 10-K.
We have reclassified certain amounts from prior year's data to conform to
the 2002 presentation.
2. Adoption of New Accounting Standards
Goodwill and Other Intangible Assets
Effective January 1, 2002, we adopted Statement of Financial Accounting
Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets." SFAS No. 142
no longer permits the amortization of goodwill and indefinite-lived intangible
assets. Instead, these assets must be reviewed annually (or more frequently
under prescribed conditions) for impairment in accordance with this statement.
This impairment test uses a fair value approach rather than the undiscounted
cash flows approach previously required by SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of."
The goodwill impairment test under SFAS No. 142 requires a two-step approach,
which is performed at the reporting unit level, as defined in SFAS No. 142. Step
one identifies potential impairments by comparing the fair value of the
reporting unit to its carrying amount. Step two, which is only performed if
there is a potential impairment, compares the carrying amount of the reporting
unit's goodwill to its implied value, as defined in SFAS No. 142. If the
carrying amount of the reporting unit's goodwill exceeds the implied fair value
of that goodwill, an impairment loss is recognized for an amount equal to that
excess. Intangible assets that do not have indefinite lives are amortized over
their useful lives and reviewed for impairment in accordance with SFAS No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets." The adoption
of SFAS No. 142 did not impact our results of operations or financial position
because we had no goodwill or other intangible assets at December 31, 2001 and
2000.
Impairment or Disposal of Long-Lived Assets
Effective January 1, 2002, we adopted SFAS No. 144. This standard
supersedes SFAS No. 121 and the provisions of APB Opinion No. 30, "Reporting the
Results of Operations-Reporting the Effects of Disposal of a Segment of a
Business, and Extraordinary, Unusual and Infrequently Occurring Events and
Transactions," with regard to reporting the effects of a disposal of a segment
of a business. SFAS No. 144 establishes a single accounting model for assets to
be disposed of by sale and addresses several SFAS No. 121 implementation issues.
The adoption of SFAS No. 144 did not have a material effect on our results of
operations or financial position.
3. Recent Accounting Pronouncement
Asset Retirement Obligations
In June 2001, the Financial Accounting Standards Board issued SFAS No.
143, "Accounting for Asset Retirement Obligations." This standard provides the
accounting for the cost of legal obligations associated with the retirement of
long-lived assets. SFAS No. 143 requires that companies recognize the fair value
of a liability for asset retirement obligations in the period in which the
obligations are incurred and capitalize that amount as a part of the book value
of the long-lived asset. That cost is then depreciated over the remaining life
of the underlying long-lived asset. We are required to adopt SFAS No. 143
effective January 1, 2003. We are currently evaluating the impact this new
standard will have on our future results of operations or financial position.
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Verizon Hawaii Inc.
4. Dividend
On May 1, 2002, we declared and paid a dividend from Accumulated Deficit
in the amount of $10.0 million to GTE.
5. Shareowner's Investment
Contributed Accumulated
(Dollars in Millions) Common Stock Capital Deficit
- --------------------------------------------------------------------------------------------------------
Balance at December 31, 2001 $ 250.0 $ 99.9 $(22.2)
Net income 17.6
Dividend declared to GTE (12.0)
Capital contribution from GTE 2.1
----------------------------------------------------------
Balance at March 31, 2002 $ 250.0 $102.0 $(16.6)
==========================================================
Net income and comprehensive income were the same for the three months
ended March 31, 2002 and 2001.
6. Commitments and Contingencies
Various legal actions and regulatory proceedings are pending to which we
are a party and claims which, if asserted, may lead to other legal actions. We
have established reserves for specific liabilities in connection with regulatory
and legal matters that we currently deem to be probable and estimable. We do not
expect that the ultimate resolution of pending regulatory and legal matters in
future periods will have a material effect on our financial condition, but it
could have a material effect on our results of operations.
Several regulatory matters may require us to refund a portion of the
revenues collected in the current and prior periods. The outcome of each pending
matter, as well as the time frame within which each matter will be resolved, is
not presently determinable.
Regulatory conditions to the Bell Atlantic - GTE merger include certain
commitments to, among other things, promote competition and the widespread
deployment of advanced services, while helping to ensure that consumers continue
to receive high-quality, low cost telephone services. In some cases, there are
significant penalties associated with not meeting these commitments. The cost of
satisfying these commitments could have a significant impact on net income in
future periods.
7. Investment in Verizon Ventures III Inc.
In May 2001, we transferred certain advanced data assets to an affiliated
company, Verizon Ventures III Inc. (Ventures III) in exchange for common stock
of Ventures III. This transfer was done to satisfy a condition of the Federal
Communications Commission's (FCC) approval of the Bell Atlantic - GTE merger,
which required the provision of advanced data services through a separate
affiliate. Throughout 2001, we continued to invest in Ventures III through the
transfer of additional assets. As result of the transfers, we acquired an
ownership interest in Ventures III, which we accounted for under the equity
method of accounting.
In September 2001, the FCC issued an order eliminating this merger
condition. Following the FCC order, we made necessary filings with our state
regulatory commission for approval of the transfer of these assets back to us.
On February 1, 2002, Ventures III transferred assets back to us with an
aggregate net book value of $4.9 million. In consideration of the transfer of
these assets, we have surrendered our common stock in Ventures III and remitted
certain cash compensation.
In connection with this reintegration, we received a capital contribution
from our parent of $2.1 million in the first quarter of 2002. This equity was
immediately contributed to Ventures III. No gain or loss was recognized as a
result of the reintegration of the advanced data assets to us. This
reintegration did not have a material effect on our results of operations or
financial condition.
8. Employee Severance Costs
In connection with the Bell Atlantic - GTE merger on June 30, 2000, we
incurred charges associated with employee severance of $10.6 million. These
costs, as recorded under SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," represent the benefit costs for the separation of management
employees who are entitled to benefits under pre-existing separation plans, as
well as an accrual of ongoing SFAS No. 112 obligations for GTE employees. During
the fourth quarter of 2001, we recorded a special charge of $1.8 million, as
recorded under SFAS No. 112, for the voluntary and involuntary separation of
employees. The remaining severance liability under these programs as of March
31, 2002 is $6.2 million.
6
Verizon Hawaii Inc.
Item 2. Management's Discussion and Analysis of Results of Operations
(Abbreviated pursuant to General Instruction H(2).)
This discussion should be read in conjunction with the Condensed
Consolidated Financial Statements and Condensed Consolidated Notes to Financial
Statements.
RESULTS OF OPERATIONS
- ---------------------
We reported net income of $17.6 million for the three month period
ended March 31, 2002, compared to net income of $17.8 million for the same
period in 2001.
Transfer of Assets
On March 2, 2001, we declared and transferred, as a dividend of $29.5
million, 100% of our ownership in Verizon Hawaii International Inc. to our
parent GTE Corporation. The transfer was valued at cost, which was the net book
value of the Verizon Hawaii International Inc. shares at March 2, 2001.
Operating revenues and operating expenses contributed by Verizon Hawaii
International Inc. were approximately $7.0 million and $2.9 million,
respectively, for the three months ended March 31, 2001. No gain or loss was
realized from this transaction.
As a result of this transaction, past operating results are no longer
indicative of future operating results.
Verizon Ventures III
During 2000 and 2001, pursuant to one of the Federal Communications
Commission's (FCC) requirements for the Bell Atlantic - GTE merger, we
transferred our advanced data assets to Verizon Ventures III Inc. (Ventures III)
in exchange for an ownership interest in Ventures III, which we accounted for
under the equity method of accounting. In September 2001, the FCC issued an
order eliminating this merger condition. On February 1, 2002, after required
state regulatory approvals were obtained, these assets were transferred back to
us and we surrendered our ownership in Ventures III. (See Note 7 to the
Condensed Consolidated Financial Statements.)
This reintegration principally affected our comparison of Network
access service revenues, Operations and support expenses and Other income, net,
as described below.
OPERATING REVENUES
- ------------------
(Dollars in Millions)
Three Months Ended March 31,
-----------------------------------------
2002 2001
- -----------------------------------------------------------------------------------
Local services $ 67.6 $ 76.5
Network access services 42.2 41.3
Long distance services 1.8 8.1
Other services 19.1 18.0
-----------------------------------------
Total $ 130.7 $143.9
=========================================
We recognize service revenues based upon usage of our local exchange
network and facilities and contract fees. We recognize product and other service
revenues when the products are delivered and accepted by the customers and when
services are provided in accordance with contract terms.
7
Verizon Hawaii Inc.
LOCAL SERVICES
2002 - 2001 (Decrease)
- --------------------------------------------------------------------------------
Three Months $(8.9) (11.6)%
- --------------------------------------------------------------------------------
Local service revenues are earned from the provision of local exchange,
local private line, wire maintenance, voice messaging and value-added services.
Value-added services are a family of services that expand the utilization of the
network, including products such as Caller ID, Call Waiting and Return Call. The
provision of local exchange services not only includes retail revenues, but also
includes local wholesale revenues from unbundled network elements (UNEs),
interconnection revenues from competitive local exchange carriers (CLECs),
certain data transport revenues and wireless interconnection revenues.
Local service revenues decreased in 2002 primarily due to the effect of
the economic slowdown and competition, as reflected by a decline in our switched
access lines in service of 1.4% from March 31, 2001. Technology substitution has
also affected local service revenue growth, as indicated by lower demand for
residential access lines. Lower billings to CLECs for interconnection of their
network with our network further contributed to the decrease in local service
revenues.
NETWORK ACCESS SERVICES
2002 - 2001 Increase
- --------------------------------------------------------------------------------
Three Months $.9 2.2%
- --------------------------------------------------------------------------------
Network access service revenues are earned from end-user subscribers
and from long distance and other competing carriers who use our local exchange
facilities to provide usage services to their customers. Switched access
revenues are derived from fixed and usage-based charges paid by carriers for
access to our local network. Special access revenues originate from carriers and
end-users that buy dedicated local exchange capacity to support their private
networks. End-user access revenues are earned from our customers and from
resellers who purchase dial-tone services.
The growth in network access service revenues in the first three months
of 2002 was mainly attributable to increased demand for special access services,
particularly for high-capacity, high-speed digital services and to the impact of
the reintegration of Ventures III. These increases were partially offset by
mandated price reductions on interstate and intrastate access services and other
regulatory decisions. The impact of the slowing economy also affected network
access service revenues in 2002.
LONG DISTANCE SERVICES
2002 - 2001 (Decrease)
- --------------------------------------------------------------------------------
Three Months $(6.3) (77.8)%
- --------------------------------------------------------------------------------
Long distance revenues are earned primarily from calls made from
international calls and from calls made to points outside a customer's local
calling area, but within our service area (intraLATA toll). IntraLATA toll calls
originate and terminate within the same LATA, but generally cover a greater
distance than a local call. These services are regulated by the Public Service
Commission of the State of Hawaii except where they cross state lines. Other
long distance services that we provide include 800 services and Wide Area
Telephone Services (WATS). We also earn revenue from private line and operator
services associated with long distance calls.
Long distance service revenues declined in the first three months of
2002 primarily due to the effect of the aforementioned transfer of assets in
2001.
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Verizon Hawaii Inc.
OTHER SERVICES
2002 - 2001 Increase
- --------------------------------------------------------------------------------
Three Months $1.1 6.1%
- --------------------------------------------------------------------------------
Our other services include such services as billing and collections for
long distance carriers and affiliates, facilities rentals to affiliates and
nonaffiliates, public (pay) telephone and customer premises equipment (CPE).
Other service revenues also include fees paid by customers for non-publication
of telephone numbers and multiple white page listings, fees paid by an affiliate
for usage of our directory listings and fees paid by an affiliate for the
provision of sales agent services.
Other service revenues increased in the first three months of 2002
primarily due to higher revenue from CPE sales.
OPERATING EXPENSES
- ------------------
(Dollars in Millions)
OPERATIONS AND SUPPORT
2002 - 2001 (Decrease)
- --------------------------------------------------------------------------------
Three Months $(9.4) (12.1)%
- --------------------------------------------------------------------------------
Operations and support expenses consist of employee costs and other
operating expenses. Employee costs consist of salaries, wages and other employee
compensation, employee benefits and payroll taxes. Other operating expenses
consist of contract services including centralized services expenses allocated
from affiliates, rent, network software costs, operating taxes other than
income, the provision for uncollectible accounts receivable, reciprocal
compensation, and other costs.
The decrease in operations and support expenses was primarily
attributable to lower employee costs principally associated with declining
workforce levels, as well as lower overtime for repair and maintenance activity
mainly as a result of reduced volumes at our dispatch and call centers.
Operations and support expenses also declined due to the effect of the
aforementioned transfer of assets in 2001. The reintegration of Ventures III
partially offset the decline in operations and support expenses for the three
months ended March 31, 2002.
DEPRECIATION AND AMORTIZATION
2002 - 2001 (Decrease)
- --------------------------------------------------------------------------------
Three Months $(2.5) (8.7)%
- --------------------------------------------------------------------------------
Depreciation expense is principally based on the composite group
remaining life method and straight-line composite rates. This method provides
for the recognition of the cost of the remaining net investment in telephone
plant, less anticipated net salvage value, over the remaining asset lives. This
method requires the periodic revision of depreciation rates.
Depreciation and amortization expense decreased in the first three
months of 2002 due to lower rates of depreciation.
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Verizon Hawaii Inc.
OTHER RESULTS
- -------------
(Dollars in Millions)
OTHER INCOME, NET
2002 - 2001 Increase
- --------------------------------------------------------------------------------
Three Months $.6 --
- --------------------------------------------------------------------------------
Other income, net includes equity income (losses), interest income and
other nonoperating income and expense items.
The increase in other income, net, was primarily attributable to
additional interest income associated with the settlement of a tax-related
matter. This increase was partially offset by the effect of the reintegration of
Ventures III.
INTEREST EXPENSE
2002 - 2001 Increase/(Decrease)
- --------------------------------------------------------------------------------
Three Months $-- --%
- --------------------------------------------------------------------------------
Interest expense includes costs associated with borrowing and capital
leases, net of capitalized interest costs. We capitalize interest associated
with the acquisition or construction of plant assets. Capitalized interest is
reported as a cost of plant and a reduction in interest expense.
Interest expense was unchanged for the first three months of 2002, over
the same period in 2001, primarily due to the net effect of lower interest rates
offset by higher levels of short-term debt with an affiliate.
EFFECTIVE INCOME TAX RATES
Three Months Ended March 31,
- --------------------------------------------------------------------------------
2002 36.9%
- --------------------------------------------------------------------------------
2001 37.8%
- --------------------------------------------------------------------------------
The effective income tax rate is the provision for income taxes as a
percentage of income before provision for income taxes. Our effective income tax
rate was lower for the three months ended March 31, 2002 compared to the same
period in 2001, due to a decrease in non-recurring income tax expense.
OTHER MATTERS
- -------------
Recent Accounting Pronouncement
Asset Retirement Obligations
In June 2001, the Financial Accounting Standards Board issued SFAS No.
143, "Accounting for Asset Retirement Obligations." This standard provides the
accounting for the cost of legal obligations associated with the retirement of
long-lived assets. SFAS No. 143 requires that companies recognize the fair value
of a liability for asset retirement obligations in the period in which the
obligations are incurred and capitalize that amount as a part of the book value
of the long-lived asset. That cost is then depreciated over the remaining life
of the underlying long-lived asset. We are required to adopt SFAS No. 143
effective January 1, 2003. We are currently evaluating the impact this new
standard will have on our future results of operations or financial position.
10
Verizon Hawaii Inc.
Compensation for Internet Traffic
We continue to incur expenditures related to reciprocal compensation
arrangements with competitive local exchange carriers and other carriers to
terminate calls on their network.
On April 27, 2001, the FCC released an order addressing intercarrier
compensation for dial-up connections for Internet-bound traffic. The FCC found
that Internet-bound traffic is interstate and subject to the FCC's jurisdiction.
Moreover, the FCC again found that Internet-bound traffic is not subject to
reciprocal compensation under Section 251(b)(5) of the 1996 Act. Instead, the
FCC established federal rates per minute for this traffic that decline from
$0.0015 to $0.0007 over a three-year period. The FCC order also sets caps on the
total minutes of this traffic that may be subject to any intercarrier
compensation and requires that incumbent local exchange carriers must offer to
pay reciprocal compensation for local traffic at the same rate as they are
required to pay on Internet-bound traffic. On May 3, 2002 the U.S. Court of
Appeals for the D.C. Circuit remanded the April 27, 2001 FCC order for further
proceedings. It did not vacate the interim pricing rules established in that
order and they remain in effect.
11
Verizon Hawaii Inc.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There were no proceedings reportable under this Item.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit
Number
-------
12 Computation of Ratio of Earnings to Fixed Charges.
(b) There were no Current Reports on Form 8-K filed during the
quarter ended March 31, 2002.
12
Verizon Hawaii Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Verizon Hawaii Inc.
Date: May 15, 2002 By /s/ Edwin F. Hall
---------------------------------
Edwin F. Hall
Controller
UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF MAY 8, 2002.
13