COMMISSION FILE NO. 1-8606
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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)
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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)
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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
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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
======== ======== ======= ======= ======== ======= ======= ======== ==========
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* 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
======== ======== ======= ======= ======== ======= ======= ======== ==========
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* 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