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, 1995
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER 1-8606
BELL ATLANTIC SAVINGS AND
SECURITY PLAN
(NON-SALARIED EMPLOYEES)
(FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF
THE ISSUER NAMED BELOW)
BELL ATLANTIC CORPORATION
1717 ARCH STREET
PHILADELPHIA, PENNSYLVANIA 19103
(NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF
ITS PRINCIPAL EXECUTIVE OFFICE)
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BELL ATLANTIC
SAVINGS AND SECURITY PLAN
(NON-SALARIED EMPLOYEES)
FINANCIAL STATEMENTS
DECEMBER 31, 1995 AND 1994
BELL ATLANTIC SAVINGS AND SECURITY PLAN
INDEX TO FINANCIAL STATEMENTS AND EXHIBITS
PAGE(S)
FINANCIAL STATEMENTS: -------
Report of Independent Accountants............................... 2
Financial Statements:
Statements of Net Assets Available for Plan Benefits at Decem-
ber 31, 1995 and 1994........................................ 3-4
Statements of Changes in Net Assets Available for Plan Bene-
fits for the years ended December 31, 1995 and 1994 ......... 5-6
Notes to Financial Statements................................. 7-12
Signature....................................................... 13
Bell Atlantic Master Savings Trust Schedule of Investments--De-
cember 31, 1995................................................ S1-S4
EXHIBIT: EXHIBIT NUMBER
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Consent of Independent Accountants ............................. 24
1
REPORT OF INDEPENDENT ACCOUNTANTS
Vice President--Treasurer
Bell Atlantic Corporation:
We have audited the accompanying statements of net assets available for plan
benefits of the Bell Atlantic Savings and Security Plan (Non-Salaried
Employees) (the "Plan") as of December 31, 1995 and 1994, and the related
statements of changes in net assets available for plan benefits for the years
then ended. These financial statements and the accompanying schedule are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements and the accompanying schedule based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for plan benefits of the
Plan as of December 31, 1995 and 1994, and the changes in net assets available
for plan benefits for the years then ended, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying schedule of
investments as of December 31, 1995 on pages S1 to S4 is presented for the
purpose of complying with the Securities and Exchange Commission's rules and
is not a required part of the basic financial statements. The fund information
in the statements of net assets available for plan benefits and the statements
of changes in net assets available for plan benefits is presented for purposes
of additional analysis rather than to present the net assets available for
plan benefits and changes in net assets available for plan benefits of each
fund. The schedule of investments and fund information have been subjected to
the auditing procedures applied in the audits of the basic financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
April 19, 1996
2
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1995
(DOLLARS IN THOUSANDS)
NON-PARTICIPANT
PARTICIPANT DIRECTED DIRECTED
---------------------------------------------------------------------------- -------------------------
.
U.S. U.S. INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST BOND EQUITY EQUITY BELL ATLANTIC UNALLOCATED
SHARES MONEY MARKET INCOME MARKET INDEX INDEX LOAN SHARES SHARES
FUND FUND FUND INDEX FUND FUND FUND FUND FUND FUND
ASSETS: ------------- ------------ -------- ---------- ------- ------------- ------- ------------- -----------
Allocated share of
Master Trust net
investments
(Note 4)............ $772,673 $7,659 $294,823 $6,872 $28,215 $9,835 $33,634 $268,820 $224,108
Allocations and
contributions
receivable.......... 1,320 27 472 26 148 41 -- 5,282 --
Fund, plan and other
transfers
receivable--net..... -- -- -- 3 232 -- 249 -- --
Prepaid expenses.... -- -- -- -- -- -- -- -- 397
-------- ------ -------- ------ ------- ------ ------- -------- --------
Total Assets.... 773,993 7,686 295,295 6,901 28,595 9,876 33,883 274,102 224,505
-------- ------ -------- ------ ------- ------ ------- -------- --------
LIABILITIES:
Notes payable (Note
5).................. -- -- -- -- -- -- -- -- 191,765
Accrued interest.... -- -- -- -- -- -- -- -- 7,834
Fund, plan and other
transfers payable--
net................. 1,757 137 801 -- -- 54 -- -- --
Administrative
expenses payable.... 523 3 366 7 2 7 -- 165 36
-------- ------ -------- ------ ------- ------ ------- -------- --------
Total Liabili-
ties............ 2,280 140 1,167 7 2 61 -- 165 199,635
-------- ------ -------- ------ ------- ------ ------- -------- --------
Net assets available
for Plan benefits
(Note 3)............ $771,713 $7,546 $294,128 $6,894 $28,593 $9,815 $33,883 $273,937 $ 24,870
======== ====== ======== ====== ======= ====== ======= ======== ========
TOTAL
ASSETS: ----------
Allocated share of
Master Trust net
investments
(Note 4)............ $1,646,639
Allocations and
contributions
receivable.......... 7,316
Fund, plan and other
transfers
receivable--net..... 484
Prepaid expenses.... 397
----------
Total Assets.... 1,654,836
----------
LIABILITIES:
Notes payable (Note
5).................. 191,765
Accrued interest.... 7,834
Fund, plan and other
transfers payable--
net................. 2,749
Administrative
expenses payable.... 1,109
----------
Total Liabili-
ties............ 203,457
----------
Net assets available
for Plan benefits
(Note 3)............ $1,451,379
==========
See notes to financial statements.
3
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1994*
(DOLLARS IN THOUSANDS)
NON-PARTICIPANT
PARTICIPANT DIRECTED DIRECTED
---------------------------------------------------------------------------- -------------------------
.
U.S. U.S. INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST BOND EQUITY EQUITY BELL ATLANTIC UNALLOCATED
SHARES MONEY MARKET INCOME MARKET INDEX INDEX LOAN SHARES SHARES
FUND FUND FUND INDEX FUND FUND FUND FUND FUND FUND
ASSETS: ------------- ------------ -------- ---------- ------- ------------- ------- ------------- -----------
Allocated share of
Master Trust net
investments
(Note 4)............ $560,152 $6,530 $269,764 $4,872 $14,197 $6,947 $30,420 $173,881 $197,064
Allocations and
contributions
receivable.......... 1,223 70 1,758 50 203 113 -- 4,890 --
Fund, plan and other
transfers
receivable--net..... 6,432 -- 339 -- -- -- -- -- --
Prepaid expenses.... -- -- -- -- -- -- -- -- 496
-------- ------ -------- ------ ------- ------ ------- -------- --------
Total Assets.... 567,807 6,600 271,861 4,922 14,400 7,060 30,420 178,771 197,560
-------- ------ -------- ------ ------- ------ ------- -------- --------
LIABILITIES:
Notes payable (Note
5).................. -- -- -- -- -- -- -- -- 220,063
Accrued interest.... -- -- -- -- -- -- -- -- 8,990
Fund, plan and other
transfers payable--
net................. -- 220 -- 64 34 2 34 -- --
Administrative
expenses payable.... 718 11 583 12 55 10 -- 265 25
-------- ------ -------- ------ ------- ------ ------- -------- --------
Total Liabili-
ties............ 718 231 583 76 89 12 34 265 229,078
-------- ------ -------- ------ ------- ------ ------- -------- --------
Net assets available
(deficit) for Plan
benefits (Note 3)... $567,089 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $178,506 $(31,518)
======== ====== ======== ====== ======= ====== ======= ======== ========
TOTAL
ASSETS: ----------
Allocated share of
Master Trust net
investments
(Note 4)............ $1,263,827
Allocations and
contributions
receivable.......... 8,307
Fund, plan and other
transfers
receivable--net..... 6,771
Prepaid expenses.... 496
----------
Total Assets.... 1,279,401
----------
LIABILITIES:
Notes payable (Note
5).................. 220,063
Accrued interest.... 8,990
Fund, plan and other
transfers payable--
net................. 354
Administrative
expenses payable.... 1,679
----------
Total Liabili-
ties............ 231,086
----------
Net assets available
(deficit) for Plan
benefits (Note 3)... $1,048,315
==========
* Certain amounts have been reclassified for comparative purposes.
See notes to financial statements.
4
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1995
(DOLLARS IN THOUSANDS)
NON-PARTICIPANT
PARTICIPANT DIRECTED DIRECTED
------------------------------------------------------------------------------ -----------------------
GOVERNMENT INTERNATIONAL ESOP
BELL ATLANTIC MONEY INTEREST U.S. BOND U.S. EQUITY EQUITY BELL UNALLOCATED
SHARES MARKET INCOME MARKET INDEX INDEX LOAN ATLANTIC SHARES
FUND FUND FUND INDEX FUND FUND FUND FUND SHARES FUND FUND
------------- ---------- -------- ---------- ----------- ------------- ------- ----------- -----------
Net assets
available (deficit)
for Plan benefits,
December 31, 1994.. $567,089 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $178,506 $(31,518)
-------- ------ -------- ------ ------- ------ ------- -------- --------
Employee
contributions...... 33,308 1,244 29,477 1,000 3,937 2,004 -- -- --
Employing company
contributions and
allocations........ 197 -- -- -- -- -- -- 12,034 28,654
Transfer of ESOP
Shares and
participants'
balances--net...... (25,348) 347 1,456 387 5,457 (21) 2,447 28,090 (19,787)
-------- ------ -------- ------ ------- ------ ------- -------- --------
Total
allocations,
contributions
and transfers... 8,157 1,591 30,933 1,387 9,394 1,983 2,447 40,124 8,867
Allocated share of
Master Trust net
investment
activities (Note
4)................. 232,031 410 17,306 949 6,034 1,295 1,984 76,906 63,962
-------- ------ -------- ------ ------- ------ ------- -------- --------
Net additions... 240,188 2,001 48,239 2,336 15,428 3,278 4,431 117,030 72,829
-------- ------ -------- ------ ------- ------ ------- -------- --------
Less: Distributions
to participants.... 34,412 805 24,814 273 1,102 489 934 21,237 --
Interest
expense......... -- -- -- -- -- -- -- -- 16,279
Amortization of
capitalized ESOP
expenses........ -- -- -- -- -- -- -- -- 99
Administrative
expenses........ 1,152 19 575 15 44 22 -- 362 63
-------- ------ -------- ------ ------- ------ ------- -------- --------
Total
deductions...... 35,564 824 25,389 288 1,146 511 934 21,599 16,441
-------- ------ -------- ------ ------- ------ ------- -------- --------
Net assets
available for Plan
benefits, December
31, 1995 (Note 3).. $771,713 $7,546 $294,128 $6,894 $28,593 $9,815 $33,883 $273,937 $ 24,870
======== ====== ======== ====== ======= ====== ======= ======== ========
TOTAL
-----------
Net assets
available (deficit)
for Plan benefits,
December 31, 1994.. $1,048,315
-----------
Employee
contributions...... 70,970
Employing company
contributions and
allocations........ 40,885
Transfer of ESOP
Shares and
participants'
balances--net...... (6,972)
-----------
Total
allocations,
contributions
and transfers... 104,883
Allocated share of
Master Trust net
investment
activities (Note
4)................. 400,877
-----------
Net additions... 505,760
-----------
Less: Distributions
to participants.... 84,066
Interest
expense......... 16,279
Amortization of
capitalized ESOP
expenses........ 99
Administrative
expenses........ 2,252
-----------
Total
deductions...... 102,696
-----------
Net assets
available for Plan
benefits, December
31, 1995 (Note 3).. $1,451,379
===========
See notes to financial statements.
5
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994*
(DOLLARS IN THOUSANDS)
NON-PARTICIPANT
PARTICIPANT DIRECTED DIRECTED
---------------------------------------------------------------------- ---------------------
BELL GOVERNMENT U.S. BOND U.S. INTERNATIONAL BELL ESOP
ATLANTIC MONEY INTEREST MARKET EQUITY EQUITY ATLANTIC UNALLOCATED
SHARES MARKET INCOME INDEX INDEX INDEX LOAN SHARES SHARES
FUND FUND FUND FUND FUND FUND FUND FUND FUND TOTAL
-------- ---------- -------- --------- ------- ------------- ------- -------- ----------- ----------
Net assets
available for Plan
benefits, December
31, 1993........... $642,767 $5,769 $250,832 $4,647 $11,498 $3,800 $25,284 $173,505 $ 18,891 $1,136,993
-------- ------ -------- ------ ------- ------ ------- -------- -------- ----------
Employee
contributions...... 35,988 1,027 28,900 812 3,112 1,521 -- -- -- 71,360
Employing company
contributions and
allocations........ 449 -- -- -- -- -- -- 11,257 26,974 38,680
Transfer of ESOP
Shares and
participants'
balances--net...... (12,256) (236) (2,902) (229) 442 1,661 3,792 28,223 (22,850) (4,355)
-------- ------ -------- ------ ------- ------ ------- -------- -------- ----------
Total
allocations,
contributions
and transfers... 24,181 791 25,998 583 3,554 3,182 3,792 39,480 4,124 105,685
Allocated share of
Master Trust net
investment
activities (Note
4)................. (68,052) 255 15,554 (137) 52 331 1,751 (21,178) (32,640) (104,064)
-------- ------ -------- ------ ------- ------ ------- -------- -------- ----------
Net additions... (43,871) 1,046 41,552 446 3,606 3,513 5,543 18,302 (28,516) 1,621
-------- ------ -------- ------ ------- ------ ------- -------- -------- ----------
Less: Distributions
to participants.... 30,738 428 20,567 233 764 249 441 13,012 -- 66,432
Interest
expense......... -- -- -- -- -- -- -- -- 21,725 21,725
Amortization of
capitalized ESOP
expenses........ -- -- -- -- -- -- -- -- 100 100
Administrative
expenses........ 1,069 18 539 14 29 16 -- 289 68 2,042
-------- ------ -------- ------ ------- ------ ------- -------- -------- ----------
Total
deductions...... 31,807 446 21,106 247 793 265 441 13,301 21,893 90,299
-------- ------ -------- ------ ------- ------ ------- -------- -------- ----------
Net assets
available (deficit)
for Plan benefits,
December 31, 1994
(Note 3)........... $567,089 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $178,506 $(31,518) $1,048,315
======== ====== ======== ====== ======= ====== ======= ======== ======== ==========
* Certain amounts have been reclassified for comparative purposes.
See notes to financial statements.
6
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN
The following description of the Bell Atlantic Savings and Security Plan
(Non-Salaried Employees) (the "Plan" or "BASSP") provides only general
information on the Plan's provisions as of December 31, 1995. Participants
should refer to the Benefits Handbook, Plan document and prospectus for a more
complete description of the Plan's provisions.
The Plan is a defined contribution plan covering all regular non-salaried
employees of Bell Atlantic Corporation ("Bell Atlantic") and its participating
subsidiaries. Prior to May 1, 1993, employees who had at least one year of
service were eligible to make tax-deferred or after-tax contributions to the
Plan. Effective May 1, 1993, employees are immediately eligible to make tax-
deferred or after-tax contributions to the Plan at date of hire. Employees
also become eligible for employer matching contributions upon completion of
one year of service. The Plan includes an employee stock ownership plan
("ESOP") which obtained loans to purchase Bell Atlantic shares that are being
allocated to participant accounts in the form of employer matching
contributions based upon the loan repayment schedule. Depending on the value
of Bell Atlantic shares from time to time, the ESOP may fund more or less than
all of the required matching contributions in a given calendar year. In the
event of a shortfall, Bell Atlantic and its participating subsidiaries make
additional employer matching contributions to the Plan. Any surplus is
allocated in equal amounts to the Plan accounts of participants who, as of the
last day of the year, are active employees of Bell Atlantic and its
participating subsidiaries, and have account balances under the Plan. In 1995
and 1994, Bell Atlantic and its participating subsidiaries made additional
contributions of $12,231,000 and $11,756,000, respectively.
Eligible employees may authorize basic contributions of $5 to $45 per week,
which is as much as 5% to 7% of the basic weekly rate, and supplementary
contributions up to an amount which, when added to the basic contribution, is
not more than 16% of the employee's weekly rate. Bell Atlantic makes employer
matching contributions in an amount generally equal to 66 2/3% of basic
contributions. One participating subsidiary makes employer matching
contributions equal to 37 1/2% of basic contributions. Participants may invest
their contributions in a Bell Atlantic Shares Fund, a U.S. Equity Index Fund
("USEF"), an International Equity Index Fund ("IEIF"), a U.S. Bond Market
Index Fund ("BNDF"), an Interest Income Fund ("IIF"), or a Government Money
Market Fund ("GMMF"). Employer matching contributions are invested only in the
Bell Atlantic Shares Fund until employees reach age 55 and ten years of
service.
The Plan provides for 100% vesting of employer matching contributions upon
attaining three years of service. A terminated employee's unvested employer
matching contributions are forfeited and offset against the participating
companies' obligation to make subsequent contributions to the Plan.
Forfeitures were $72,656 and $17,041 in 1995 and 1994, respectively.
The assets of the Plan are commingled for investment purposes in the Bell
Atlantic Master Savings Trust (the "Master Trust") with the assets of the Bell
Atlantic Savings Plan for Salaried Employees ("BASP").
The Plan includes an employee loan provision authorizing participants to
borrow an amount from their vested account balances in the Plan. Loans are
generally repaid by payroll deductions. The repayment period for loans
generally will not be less than one year nor more than fifteen years. Each
loan will bear interest at a rate established by the Treasurer of Bell
Atlantic based upon market interest rates as set forth in the Plan.
7
Certain administrative expenses of the Plan and Master Trust are charged to
the Plan and are therefore reflected in the earnings of the investment fund to
which the expenses relate. Expenses of the Plan and Master Trust attributable
to the operations of the ESOP are charged against the ESOP unallocated shares
account, which has no affect on the earnings in participants' accounts.
Although it has not expressed any intent to do so, Bell Atlantic has the
right under the Plan to discontinue all employer matching contributions at any
time and to terminate the Plan subject to the provisions of ERISA. In the
event of plan termination, participants will become 100% vested in their
accounts.
2. ACCOUNTING POLICIES
The values of Master Trust investments are determined as follows: Bell
Atlantic shares and other equity securities traded on a national stock
exchange are valued on the basis of the last published sales prices per share
on December 31 as reported on the composite tape or, if no sales were made on
that date, at the last published sales prices on the next preceding day on
which sales were made; U.S. Government and other fixed income securities are
valued by the Master Trust's trustee at fair value based on current market
yields for investments with similar characteristics such as maturity, coupon,
and quality as determined by an independent source; securities traded in the
over-the-counter market and listed securities for which no sales were reported
on the valuation date, are valued at the reported bid price; units in the
USEF, the INTF, and the BNDF are valued on the basis of net asset values
provided by the investment managers pursuant to contractually specified
methodologies which are similar to the aforementioned procedures for equity
and fixed income investments; and temporary cash investments are valued at
cost which approximates fair value. The contracts with the insurance companies
and commercial banks included in the IIF are valued at contract value which
approximates fair value.
Purchases and sales of securities are reflected as of the trade date.
Dividend income is recorded on the ex-dividend date. Interest earned on
investments is recorded on the accrual basis.
The Plan presents in the Statement of Changes in Net Assets Available for
Plan Benefits its allocated share of Master Trust investment activities which
includes net appreciation (depreciation) in the fair value of its investments.
Net appreciation (depreciation) in the fair value of investments consists of
the realized gains or losses and the unrealized appreciation (depreciation) on
those investments.
Prepaid expenses incurred in connection with the formation of the ESOP are
being amortized over 10 years on a straight-line basis. These expenses include
debt placement costs and legal fees associated with the placement of the ESOP
debt.
The Plan participates in certain commingled investment funds. The funds'
managers utilize futures and foreign currency forward contracts to minimize
transaction costs and the effect of cash flows (such as contributions,
transfers, and distributions) on the funds' investment performance. Futures
contracts are fully collateralized and are marked to market daily. Foreign
currency forward contracts are matched with the settlement of purchases and
sales of foreign securities and are also marked to market daily.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the dates of the financial
statements and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.
8
3. EMPLOYEE INTEREST IN THE PLAN
The interest of an employee in each type of investment of the Plan is
represented by units as described in the Plan document. The number of
employees participating in each investment option, the number of units and the
values per unit at December 31, were as follows:
1995 1994
--------------------------------- ---------------------------------
NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE
EMPLOYEES OF PER EMPLOYEES OF PER
PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT
------------- ----------- ------- ------------- ----------- -------
Bell Atlantic Shares
Fund................... 40,622 188,280,872 $5.4372 41,775 182,342,498 $4.0492
Government Money Market
Fund................... 2,593 5,525,915 1.3132 2,376 4,978,550 1.2409
Interest Income Fund.... 26,908 59,861,824 4.7950 27,891 59,556,987 4.5207
U.S. Bond Market Index
Fund................... 2,439 5,022,478 1.3536 2,015 4,215,705 1.1472
U.S. Equity Index Fund.. 4,887 13,991,532 2.0217 3,975 9,620,307 1.4871
International Equity
Index Fund............. 3,037 6,466,550 1.4988 2,467 5,165,442 1.3566
Loan Fund............... 8,278 -- -- 7,338 -- --
At December 31, 1994, 33,871 participants were actively contributing to the
Plan; 10,372 participants were not actively contributing to the Plan. The
total number of participants in the Plan was less than the sum of the number
of participants shown in the schedule above because many participants were
invested in more than one fund.
4. INTEREST IN BELL ATLANTIC MASTER SAVINGS TRUST
BASSP'S SHARE OF MASTER TRUST NET ASSETS
The Plan's allocated share of the Master Trust's net assets is based upon
the total of each individual Plan participant's share of the Master Trust. The
allocated share of the net assets of each fund in the Master Trust at December
31 was as follows:
1995 1994
----- -----
Bell Atlantic Shares Fund (for the BASP)..................... -- --
Bell Atlantic Shares Fund (for the BASSP).................... 100.0% 100.0%
Government Money Market Fund................................. 7.8% 6.8%
Interest Income Fund (for the BASP).......................... -- --
Interest Income Fund (for the BASSP)......................... 100.0% 100.0%
U.S. Bond Market Index Fund.................................. 13.6% 12.8%
U.S. Equity Index Fund....................................... 7.9% 6.0%
International Equity Index Fund.............................. 13.6% 11.1%
Loan Fund (for the BASP)..................................... -- --
Loan Fund (for the BASSP).................................... 100.0% 100.0%
ESOP Unallocated Shares Fund (for the BASP).................. -- --
ESOP Unallocated Shares Fund (for the BASSP)................. 100.0% 100.0%
9
At December 31, the financial position of the Master Trust was as follows:
1995 1994
----------- -----------
(DOLLARS IN THOUSANDS)
ASSETS:
Investments at fair value:
Bell Atlantic Shares Fund--BASP:
Bell Atlantic Corporation common shares............ $ 1,137,316 $ 860,361
Temporary cash investments......................... 20,610 12,656
Bell Atlantic Shares Fund--BASSP:
Bell Atlantic Corporation common shares............ 1,027,268 710,249
Temporary cash investments......................... 16,054 26,074
Government Money Market Fund:
Temporary cash investments......................... 97,702 96,256
Interest Income Fund--BASP:
Contracts with insurance companies and commercial
banks............................................. 491,715 540,659
Temporary cash investments......................... 80,448 3,105
Interest Income Fund--BASSP:
Contracts with insurance companies and commercial
banks............................................. 253,352 269,687
Temporary cash investments......................... 39,980 476
U.S. Bond Market Index Fund:
Fund shares........................................ 48,356 38,440
Temporary cash investments......................... 2,164 68
U.S. Equity Index Fund:
Fund shares........................................ 341,186 239,178
Temporary cash investments......................... 17,040 917
International Equity Index Fund:
Fund shares........................................ 70,788 62,152
Temporary cash investments......................... 1,334 811
Loan Fund--BASP:
Loans receivable from participants................. 45,179 47,690
Loan Fund--BASSP:
Loans receivable from participants................. 33,634 30,420
ESOP Unallocated Shares Fund--BASP:
Bell Atlantic Corporation common shares............ 347,845 305,841
Temporary cash investments......................... 13,605 13,680
ESOP Unallocated Shares Fund--BASSP:
Bell Atlantic Corporation common shares............ 215,532 191,615
Temporary cash investments......................... 6,652 8,635
----------- -----------
Total investments................................ 4,307,760 3,458,970
Receivables:
Dividends and interest income...................... 14,086 4,476
Receivables for investments sold................... 1,693 7,113
----------- -----------
Total assets..................................... 4,323,539 3,470,559
LIABILITIES:
Payable for investments purchased................... 7,255 23,404
----------- -----------
Net investments.................................. 4,316,284 3,447,155
=========== ===========
Investments at cost: ................................. $3,210,823 $3,125,178
=========== ===========
See Schedule I, Bell Atlantic Master Savings Trust Schedule of Investments.
The BASSP's principal financial instrument subject to credit risk is the
investment in the Master Trust. The Master Trust consists of separate
investment funds, as defined by the Plan, with different investment
objectives. The degree and concentration of credit risk varies by fund
depending upon the type and diversity of investments. The schedule of
investments depicts the types of investments and their proportionate share of
each investment fund.
10
BASSP'S SHARE OF MASTER TRUST INVESTMENT ACTIVITIES.
The Plan's allocated share of Master Trust investment activities is based
upon the total of each individual Plan participant's share of the Master Trust
investment activities during the years ended December 31, 1995 and 1994.
The Master Trust's investment activities for the year ended December 31 was
as follows:
1995 1994
----------- -----------
(DOLLARS IN THOUSANDS)
Investment Activities:
Dividends on Bell Atlantic Corporation common
shares:
Non-ESOP shares................................ $ 91,447 $ 84,295
ESOP shares.................................... 25,979 29,825
Other dividends................................. 7,498 7,138
Interest Income Fund (BASP) income.............. 34,804 33,650
Interest Income Fund (BASSP) income............. 17,306 15,554
Other interest.................................. 15,489 13,597
Net appreciation (depreciation) in value of in-
vestments...................................... 808,956 (405,143)
----------- ----------
Net investment activities................... $ 1,001,479 (221,084)
=========== ==========
Allocated share of net investment activities:
BASP............................................ $ 600,602 $(117,020)
BASSP........................................... 400,877 (104,064)
The value per share of Bell Atlantic common stock increased from $49.75 at
December 31, 1994 to $66.88 at December 31, 1995. This represents a 34.42%
increase in the value per share. At December 31, 1995, approximately 43% of
BASP assets and 63% of BASSP assets were invested in the Bell Atlantic Shares
Funds. Between January 1 and April 19, 1996, Bell Atlantic common stock
closing prices have ranged from $59.50 to $74.38 per share.
5. LEVERAGED ESOP NOTES PAYABLE
The Leveraged ESOP notes payable bear an 8.17% interest rate subject to
adjustment (maximum 10.25% and minimum 6.77%) due to changes in the Federal
income tax rate or changes in the Federal law regarding the alternative
minimum tax. Interest and principal payments are guaranteed by Bell Atlantic
and are due on January 1 and July 1 of each year; principal payments began
July 1, 1990.
The outstanding principal is payable in amounts ranging from 8.9% to 16.3%
of the original amount ($304.3 million) from 1996 to 2000, respectively. The
final payment will be made on January 1, 2000. The principal amounts under the
notes are due as follows (in thousands):
1996.................................... $ 32,974
1997.................................... 38,097
1998.................................... 43,713
1999.................................... 49,867
2000.................................... 27,114
--------
$191,765
========
11
The fair value of the Leveraged ESOP notes payable is based on quoted market
prices for the same or similar instruments. As of December 31, 1995, the
carrying amount and the estimated fair value of the notes payable were:
CARRYING FAIR
AMOUNT VALUE
-----------------------
(DOLLARS IN THOUSANDS)
BASP............................................... $306,080 $328,271
BASSP.............................................. 191,765 205,667
----------- -----------
$497,845 $533,938
=========== ===========
6. TAX DETERMINATION
On October 30, 1995, the Internal Revenue Service issued a ruling that the
Plan meets the requirements of Section 401(a) of the Internal Revenue Code of
1986 (the "Code") and is exempt from Federal income taxes under Section 501(a)
of the Code and that the ESOP portion of the Plan qualifies as an employee
stock ownership plan within the meaning of Section 4975(e)(7) of the Code. The
Plan has been amended since receiving the determination letter. However, the
Plan administrator and the Plan's tax counsel believe that the Plan is
designed and is currently being operated in compliance with the applicable
requirements of the Code.
7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for plan benefits
per the financial statements to the Form 5500:
1995
----------------------
(DOLLARS IN THOUSANDS)
Net assets available for benefits per the
financial statements............................. $1,451,379
Amounts allocated to withdrawing participants..... 29,921
----------
Net assets available for benefits per the Form
5500............................................. $1,421,458
==========
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
1994
----------------------
(DOLLARS IN THOUSANDS)
Benefits paid to participants per the financial
statements........................................ $ 84,066
Add: Amounts allocated to withdrawing participants
at December 31, 1995.............................. 29,921
Less: Amounts allocated to withdrawing participants
at December 31, 1994.............................. 9,592
--------
Benefits paid to participants per the Form 5500.... $104,395
========
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
12
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
BELL ATLANTIC CORPORATE EMPLOYEES' BENEFITS COMMITTEE HAS DULY CAUSED THIS
ANNUAL REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED.
Bell Atlantic Savings and Security
Plan
(Non-Salaried Employees)
Date: April 29, 1996
By /s/ Ellen C. Wolf
---------------------------------
ELLEN C. WOLF
(Member of the Bell Atlantic
Corporate Employees' Benefits
Committee)
13
SCHEDULE I
BELL ATLANTIC MASTER SAVINGS TRUST
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS)
DECEMBER 31, 1995
------------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- ----------- -------- ----------
BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
*Bell Atlantic Corporation Common Shares--
98.2%....................................... 17,006,600 shs. $709,450 $1,137,316
Temporary Cash Investments--1.8%............. $ 20,610 20,610 20,610
-------- ----------
Total.................................. 730,060 1,157,926
-------- ----------
BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
*Bell Atlantic Corporation Common Shares--
98.5%....................................... 15,361,011 shs. 638,993 1,027,268
Temporary Cash Investments--1.5%............. $ 16,054 16,054 16,054
-------- ----------
Total.................................. 655,047 1,043,322
-------- ----------
GOVERNMENT MONEY MARKET FUND
Temporary Cash Investments--100.0%
BT Pyramid Government Securities Cash Fund. 97,702 97,702 97,702
-------- ----------
Total.................................. 97,702 97,702
-------- ----------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
+Contracts with Insurance Companies and
Commercial Banks--85.9%.....................
American Int'l Life Assurance, 5.41%
Maturing 6/28/96.......................... 5,428 5,428 5,428
American Int'l Life Assurance, 7.02%
Maturing 10/1/99.......................... 6,480 6,480 6,480
American Int'l Life Assurance, 5.25%
Maturing 4/1/98........................... 9,669 9,669 9,669
American Int'l Life Assurance, 7.17%
Maturing 1/4/2000......................... 18,841 18,841 18,841
Continental Assurance, 8.75% Maturing
4/1/96.................................... 12,078 12,078 12,078
Hartford Life Ins. Co., 6.78% Maturing
7/1/97.................................... 8,458 8,458 8,458
John Hancock Mutual Life Ins. Co., 5.45%
Maturing 4/1/96........................... 18,173 18,173 18,173
John Hancock Mutual Life Ins. Co., 5.85%
Maturing 6/30/98.......................... 20,077 20,077 20,077
John Hancock Mutual Life Ins. Co., 6.60%
Maturing 10/1/99.......................... 10,536 10,536 10,536
ITT Hartford Life Ins. Co., 8.04% Maturing
1/1/99.................................... 23,642 23,642 23,642
Metropolitan Life Ins. Co., 5.58% Maturing
1/1/98.................................... 13,209 13,209 13,209
Metropolitan Life Ins. Co., 6.47% Maturing
4/1/98.................................... 36,674 36,674 36,674
Metropolitan Life Ins. Co., 5.08% Maturing
1/1/97.................................... 22,078 22,078 22,078
#MBL Life Assurance Corp., 3.5% to 5.0%
Maturing 12/31/2004....................... 7,296 7,296 7,296
New York Life 7.00% Maturing 7/1/99........ 34,723 34,723 34,723
New York Life 5.93% Maturing 3/31/98....... 4,528 4,528 4,528
New York Life, 5.18% Maturing 7/1/98....... 20,541 20,541 20,541
New York Life, 7.20% Maturing 1/1/2000..... 20,930 20,930 20,930
New York Life, 7.98% Maturing 4/3/2000..... 19,238 19,238 19,238
New York Life, Money Market Account........ 5,658 5,658 5,658
Principal Mutual Life Ins. Co., 5.10%
Maturing 1/2/97........................... 13,049 13,049 13,049
Principal Mutual Life Ins. Co., 5.90%
Maturing 10/1/97.......................... 27,391 27,391 27,391
Principal Mutual Life Ins. Co., 7.84%
Maturing 3/31/96.......................... 7,358 7,358 7,358
Principal Mutual Life Ins. Co., 7.38%
Maturing 1/1/2000......................... 9,557 9,557 9,557
Principal Mutual Life Ins. Co., 6.00%
Maturing 7/1/98........................... 18,499 18,499 18,499
Provident Nat'l Assurance, 5.12% Maturing
1/2/97.................................... 26,175 26,175 26,175
S-1
SCHEDULE I
DECEMBER 31, 1995
---------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- --------- -------- --------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES--
(CONTINUED):
Provident Nat'l Assurance, 4.59% Maturing 4/1/97.... $24,921 $ 24,921 $ 24,921
The Prudential Ins. Co. of America, 9.06% Maturing
4/1/96............................................. 9,939 9,939 9,939
The Prudential Ins. Co. of America, 8.08% Maturing
4/1/97............................................. 12,556 12,556 12,556
The Prudential Ins. Co. of America, 5.91% Maturing
7/1/98............................................. 14,721 14,721 14,721
The Prudential Ins. Co. of America, 5.04% Maturing
1/1/98............................................. 9,292 9,292 9,292
-------- --------
491,715 491,715
-------- --------
Temporary Cash Investments--14.1%
BT Pyramid Government Securities Cash Fund......... 80,448 80,448 80,448
-------- --------
Total........................................... 572,163 572,163
-------- --------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
+Contracts with Insurance Companies and Commercial Banks--86.4%
American Int'l Life Assurance, 5.11% Maturing
7/1/98............................................. 5,687 5,687 5,687
American Int'l Life Assurance, 7.17%, Maturing
1/4/2000........................................... 9,591 9,591 9,591
American Int'l Life Assurance, 7.02% Maturing
10/1/99............................................ 6,531 6,531 6,531
American Int'l Life Assurance, 5.25% Maturing
4/1/98............................................. 4,594 4,594 4,594
Continental Assurance, 8.75% Maturing 7/1/96........ 3,720 3,720 3,720
Hartford Ins. Co., 7.93%, Maturing 4/1/99........... 23,901 23,901 23,901
John Hancock Mutual Life Ins. Co., 5.21% Maturing
4/1/96............................................. 6,602 6,602 6,602
John Hancock Mutual Life Ins. Co., 5.81% Maturing
6/30/98............................................ 9,708 9,708 9,708
John Hancock Mutual Life Ins. Co., 6.57% Maturing
10/1/99............................................ 7,242 7,242 7,242
Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98... 15,299 15,299 15,299
Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97... 11,554 11,554 11,554
Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98... 8,887 8,887 8,887
New York Life, 7.28% Maturing 1/1/2000.............. 6,019 6,019 6,019
New York Life, 5.88% Maturing 9/30/97............... 8,162 8,162 8,162
New York Life, 5.35% Maturing 7/1/96................ 5,797 5,797 5,797
New York Life, 5.05% Maturing 4/1/97................ 4,848 4,848 4,848
New York Life, 5.13% Maturing 7/1/98................ 5,908 5,908 5,908
New York Life, 6.75% Maturing 7/1/99................ 7,419 7,419 7,419
New York Life, 7.20% Maturing 10/1/99............... 7,064 7,064 7,064
New York Life, 5.92% Maturing 1/1/99................ 9,379 9,379 9,379
Principal Mutual Life Ins. Co., 6.00% Maturing
7/1/98............................................. 5,057 5,057 5,057
Principal Mutual Life Ins. Co., 7.30% Maturing
9/30/99............................................ 5,502 5,502 5,502
Principal Mutual Life Ins. Co., 5.90% Maturing
10/1/97............................................ 16,182 16,182 16,182
Principal Mutual Life Ins. Co., 5.20% Maturing
4/1/97............................................. 9,631 9,631 9,631
Principal Mutual Life Ins. Co., 7.84% Maturing
7/1/96............................................. 1,873 1,873 1,873
Provident Nat'l Assurance, 4.62% Maturing 7/1/97.... 13,376 13,376 13,376
Provident Nat'l Assurance, 5.10% Maturing 4/1/97.... 6,161 6,161 6,161
The Prudential Ins. Co. of America, 6.78% Maturing
1/1/99............................................. 11,303 11,303 11,303
The Prudential Ins. Co. of America, 5.88% Maturing
7/1/98............................................. 7,610 7,610 7,610
The Prudential Ins. Co. of America, 8.10% Maturing
7/1/96............................................. 8,745 8,745 8,745
-------- --------
253,352 253,352
-------- --------
Temporary Cash Investments--13.6%
BT Pyramid Government Securities Cash Fund......... 39,980 39,980 39,980
-------- --------
Total........................................... 293,332 293,332
-------- --------
S-2
SCHEDULE I
DECEMBER 31, 1995
-------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- ---------- ------- -------
U.S. BOND MARKET INDEX FUND
Bond Funds--99.8%
Wells Fargo--U.S. Debt Index Fund............... 1,880,113 shs. $41,979 $43,134
Wells Fargo--Daily U.S. Debt Market Fund........ 386,205 4,895 5,222
------- -------
46,874 48,356
------- -------
Temporary Cash Investments--0.2%
BT Pyramid Government Securities Cash Fund...... $ 2,164 2,164 2,164
------- -------
Total....................................... 49,038 50,520
------- -------
U.S. EQUITY INDEX FUND
Pooled Common Stock--95.2%
*Mellon E.B. Russell 1000 Index Fund............ 920,566 shs. 206,680 297,110
Mellon E.B. Russell 2000 Index Fund............. 113,227 23,437 33,834
E.B. Daily Opening Stock Index Fund............. 67,578 9,719 10,242
------- -------
239,836 341,186
------- -------
Temporary Cash Investments--4.8%
BT Pyramid Government Securities Cash Fund...... $ 17,040 17,040 17,040
------- -------
Total....................................... 256,876 358,226
------- -------
INTERNATIONAL EQUITY INDEX FUND
Pooled Common Stock--98.1%
Wells Fargo--MSCI Equity Index Fund-HIK......... 27,617 shs. 328 343
Wells Fargo--Europe Ex UK Equity Index Fund..... 177,885 2,036 2,129
Wells Fargo--MSCI Equity Index Fund-Japan....... 164,989 1,513 1,600
Wells Fargo--Pacific Ex Japan Equity Index Fund. 20,570 214 225
Wells Fargo--EAFE GDP Index Fund A.............. 4,815,656 63,743 66,491
------- -------
67,834 70,788
------- -------
Temporary Cash Investments--1.9%
BT Pyramid Government Securities Cash Fund...... $ 1,334 1,334 1,334
------- -------
Total....................................... 69,168 72,122
------- -------
LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
Participant Loan Obligations--7.58% to 10%........ 45,179 45,179
------- -------
Total Loan Fund............................. 45,179 45,179
------- -------
LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
Participant Loan Obligations--7.58% to 10%........ 33,634 33,634
------- -------
Total Loan Fund............................. 33,634 33,634
------- -------
ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
*Bell Atlantic Corporation Common Shares--96.2%... 5,144,160 shs. 238,773 347,845
Temporary Cash Investments--3.8%.................. $ 13,605 13,605 13,605
------- -------
Total....................................... 252,378 361,450
------- -------
S-3
SCHEDULE I
DECEMBER 31, 1995
------------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- --------- ---------- ----------
ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
Bell Atlantic Corporation Common Shares--
97.0%....................................... 3,222,909 shs. $ 149,594 $ 215,532
Temporary Cash Investments--3.0%............. $ 6,652 6,652 6,652
---------- ----------
Total.................................. 156,246 222,184
---------- ----------
Grand Total............................ $3,210,823 $4,307,760
---------- ----------
- --------
* Investment represents 5% or more of the net investments of the Master Trust.
+ Under these contracts the respective insurance companies and commercial
banks contractually agree to the repayment of principal and the crediting of
interest. The composite effective annual interest rate earned on all
contracts in 1995, net of third party expenses and after the effect of cash
flows, was 6.2% for the BASP and 6.1% for the BASSP. Each quarter a
projected annualized interest rate is computed for the BASP and BASSP. The
actual yield may vary from the projected interest rate depending upon the
rates for new contracts that have been added to the Funds, actual interest
earned, payment performance of contract issuers, the timing of cash flows
into and out of the Funds, and the timing of the investment of those cash
flows.
# MBL Life Assurance Corporation is the successor to Mutual Benefit Life
Insurance Company which was placed under a rehabilitation plan in 1993. The
contract interest rate will vary based upon the performance of the
underlying investments.
Percentages represent percentage of total investments of each fund.
S-4