<PAGE>1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1995
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-6589
WISCONSIN BELL, INC.
(Incorporated under the laws of the State of Wisconsin)
722 North Broadway, Milwaukee, Wisconsin 53202
I.R.S. Employer Identification Number 39-0716650
Telephone Number - (414) 549-7102
THE REGISTRANT, A WHOLLY OWNED SUBSIDIARY OF AMERITECH CORPORATION, MEETS
THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM
10-Q AND IS THEREFORE FILING THIS FORM WITH REDUCED DISCLOSURE FORMAT
PURSUANT TO GENERAL INSTRUCTION H(2).
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X . No .
At July 31, 1995, 31,960,395 common shares were outstanding.
<PAGE>2
Form 10-Q Part I Wisconsin Bell, Inc.
Part I - Financial Information
The following condensed financial statements have been prepared by
Wisconsin Bell, Inc. (the Company) pursuant to the rules and regulations of
the Securities and Exchange Commission (SEC) and, in the opinion of the
Company, include all adjustments (consisting only of normal recurring
adjustments) necessary for a fair statement of results for each period
shown. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such SEC
rules and regulations. The Company believes that the disclosures made are
adequate to make the information presented not misleading. These financial
statements should be read in conjunction with the financial statements and
notes thereto included in the Company's latest Annual Report on Form 10-K
and the quarterly report on Form 10-Q previously filed in the current year.
CONDENSED STATEMENTS OF INCOME AND REINVESTED EARNINGS (DEFICIT)
(Millions of Dollars)
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
Revenues $ 280.6 $ 282.8 $ 551.4 $ 568.7
-------- -------- -------- --------
Operating Expenses
Employee-related expenses 54.7 61.6 111.9 122.1
Depreciation and amortization 42.8 48.6 84.9 94.6
Other operating expenses 89.8 91.8 174.0 180.2
Restructuring (credit) charge -- -- (26.4) 53.0
Taxes other than income taxes 15.4 15.5 30.1 30.8
-------- ------- -------- -------
202.7 217.5 374.5 480.7
-------- ------- -------- -------
Operating income 77.9 65.3 176.9 88.0
Interest expense 7.5 7.1 15.2 13.2
Other expense (income), net 0.2 (0.2) (0.2) (1.7)
-------- ------- -------- -------
Income before income taxes 70.2 58.4 161.9 76.5
Income taxes 27.1 21.0 63.7 27.6
-------- ------- -------- -------
Net income 43.1 37.4 98.2 48.9
Reinvested earnings (deficit),
beginning of period (179.8) 9.7 (195.5) 24.9
Less, dividends 40.9 28.5 80.3 55.2
-------- ------- -------- -------
Reinvested earnings (deficit),
end of period $ (177.6) $ 18.6 $ (177.6) $ 18.6
======== ======== ======== =======
See Notes to Condensed Financial Statements.
<PAGE>3
Form 10-Q Part I Wisconsin Bell, Inc.
CONDENSED BALANCE SHEETS
(Dollars in Millions)
June 30, 1995 Dec. 31, 1994
(Unaudited) (Derived from
Audited
Financial
Statements)
ASSETS
Current assets
Cash $ -- $ --
Receivables, net
Customers 202.0 201.0
Ameritech and affiliates 5.1 5.4
Other 13.1 9.9
Material and supplies 3.7 3.9
Prepaid and other 17.9 89.7
-------- --------
241.8 309.9
-------- --------
Property, plant and equipment 2,779.0 2,725.8
Less, accumulated depreciation 1,611.5 1,540.0
-------- --------
1,167.5 1,185.8
-------- --------
Investments, principally in affiliates 25.7 28.5
Other assets and deferred charges 88.9 53.7
-------- --------
Total assets $1,523.9 $1,577.9
======== ========
See Notes to Condensed Financial Statements.
<PAGE>4
Form 10-Q Part I Wisconsin Bell, Inc.
CONDENSED BALANCE SHEETS (continued)
(Dollars in Millions)
June 30, 1995 Dec. 31, 1994
(Unaudited) (Derived from
Audited
Financial
Statements)
LIABILITIES AND SHAREOWNER'S EQUITY
Current liabilities
Debt maturing within one year
Ameritech $ 119.1 $ 180.2
Other 0.4 0.7
Accounts payable
Ameritech Services, Inc. (ASI) 57.2 46.5
Ameritech and affiliates 14.1 16.2
Other 62.7 75.6
Other current liabilities 113.4 88.0
-------- --------
366.9 407.2
-------- --------
Long-term debt 305.8 305.9
-------- --------
Deferred credits and other long-term liabilities
Accumulated deferred income taxes 39.3 69.2
Unamortized investment tax credits 28.9 31.7
Postretirement benefits other than pensions 261.0 261.1
Long-term payable to ASI 8.3 8.8
Other 39.7 37.9
-------- --------
377.2 408.7
-------- --------
Shareowner's equity
Common shares - ($20 par value;
31,995,000 shares authorized;
31,960,395 issued and outstanding) 639.2 639.2
Proceeds in excess of par value 12.4 12.4
Reinvested earnings (177.6) (195.5)
-------- --------
474.0 456.1
-------- --------
Total liabilities and shareowner's equity $1,523.9 $1,577.9
======== ========
See Notes to Condensed Financial Statements.
<PAGE>5
Form 10-Q Part I Wisconsin Bell, Inc.
CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Millions)
(Unaudited)
Six Months Ended
June 30
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 98.2 $ 48.9
Adjustments to net income
Restructuring (credit) charge, net of tax (15.8) 31.7
Depreciation and amortization 84.9 94.6
Deferred income taxes 9.1 2.0
Investment tax credits, net (2.8) (3.5)
Interest during construction (0.5) (0.2)
Provision for uncollectibles 5.6 5.0
Change in accounts receivable (10.5) 18.6
Change in material and supplies 0.1 0.1
Change in certain other current assets 1.3 3.3
Change in accounts payable (4.3) (18.8)
Change in certain other current liabilities 9.0 (8.6)
Change in certain other noncurrent
assets and liabilities (10.0) (19.0)
Other 3.0 2.6
-------- -------
Net cash from operating activities 167.3 156.7
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (66.7) (66.2)
Proceeds from (cost of) disposals of
property, plant and equipment 0.3 (0.8)
Other investing activities 0.1 --
-------- -------
Net cash from investing activities (66.3) (67.0)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Intercompany financing, net (61.1) (34.1)
Retirements of long-term debt (0.4) (0.4)
Dividend payments (39.5) (55.2)
-------- -------
Net cash from financing activities (101.0) (89.7)
-------- -------
Net increase in cash -- --
Cash at beginning of period -- --
-------- -------
Cash at end of period $ -- $ --
========= =========
See Notes to Condensed Financial Statements.
<PAGE>6
Form 10-Q Part I Wisconsin Bell, Inc.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Dollars in Millions)
JUNE 30, 1995
NOTE 1: Work Force Restructuring
During March 1994, the Company's parent, Ameritech Corporation, announced
its plan to reduce its existing nonmanagement work force. Approximately
11,500 employees are expected to leave under this program, including 1,092
employees of the Company. Under terms of agreements between Ameritech, the
Communications Workers of America (CWA) and the International Brotherhood
of Electrical Workers (IBEW), Ameritech implemented an enhancement to the
Ameritech Pension Plan by adding three years to both the age and the net
credited service of eligible nonmanagement employees who leave the business
during a designated period that corresponds to contract expiration in 1995.
In addition, certain business units are offering financial incentives under
terms of the current contracts with the CWA and IBEW to selected
nonmanagement employees who leave the business before the end of 1995. See
additional discussion in Management's Discussion and Analysis below.
As a result of the restructuring, a pretax charge of $53.0, or $31.7 after-
tax, was recorded in the first quarter 1994. In the first quarter 1995, a
gain of $26.4, or $15.8 after-tax, was recorded resulting primarily from
settlement gains from lump sum pension payments from the Ameritech pension
plan to former employees. Settlement gains were not recorded in the second
quarter of 1995 as they were not significant. The cumulative gross program
costs through June 30, 1995 totaled $102.8, partially offset by settlement
gains of $57.4 for an aggregate pretax net program cost of $45.4, or $27.1
after-tax. At June 30, 1995, the remaining severance accrual was $3.8.
As of June 30, 1995, 999 employees have left the Company as a result of the
restructuring, with 93 expected to leave later in 1995.
NOTE 2: Discontinuation of FAS 71 and Reclassifications
As discussed more fully in the 1994 Annual Report on Form 10-K, during the
fourth quarter of 1994, the Company incurred an extraordinary noncash
after-tax charge of $240.4 as a result of its decision to discontinue the
application of Statement of Financial Accounting Standards No. 71 (FAS 71),
"Accounting for the Effects of Certain Types of Regulation."
The principal component of the above charge related to a determination that
telephone plant asset lives were too long and analog switches were
obsolete. The net effect of this determination is causing 1995
depreciation expense to decrease. Long-term, depreciation expense will
increase as the effects of shorter lives on plant assets and future plant
additions offset the discontinuation of depreciation of analog switches.
Certain additional financial statement impacts occurred as a result of the
discontinuation of FAS 71, including the reclassification of the provision
for uncollectibles, previously shown as a reduction in other revenues, to
other operating expenses.
<PAGE>7
Form 10-Q Part I Wisconsin Bell, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
(Dollars in Millions)
The following is a discussion and analysis of the changes in revenues,
operating expenses and other income and expenses for the first six months
of 1995 as compared with the first six months of 1994:
Results of Operations
Revenues
Total revenues in the first six months of 1995 were $551.4 and were $568.7
for the same period in 1994. The following paragraphs explain the
components of that change.
Local service
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $269.7 $254.5 $ 15.2 6.0
The increase in local service revenues in the first six months of 1995 was
primarily attributable to higher network volumes which increased local
service revenues by $14.0. The increased network usage volumes resulted
principally from growth in the number of access lines, which increased 4.1
percent to 2,009,091 as of June 30, 1995 as compared with June 30, 1994, as
well as increased volumes and greater sales of special calling features,
such as Call Forwarding and Caller ID. An additional increase of $5.0 was
due to the 1994 implementation of the Extended Community Calling Plan (ECC)
which expanded local calling areas and reduced long distance usage. These
increases were partially offset by net rate reductions of $2.8, which
resulted from legislation which adopted price regulation in place of rate-
of-return regulation and removed limits on intrastate earnings.
<PAGE>8
Form 10-Q Part I Wisconsin Bell, Inc.
Management's Discussion and Analysis
of Results of Operations (cont'd.)
Network access
June 30 Increase Percent
1995 1994 (Decrease) Change
Interstate
Six Months Ended $125.0 $121.4 $ 3.6 3.0
Intrastate
Six Months Ended $ 31.5 $ 41.6 $(10.1) (24.3)
The increase in interstate network access revenues for the six months ended
June 30, 1995 was primarily due to higher network usage, which resulted in
increased revenues of $6.6, and a reduction of $2.9 in NECA common line
support payments. Partially offsetting these revenue increases were net
rate reductions of $5.7. Minutes of use related to interstate calls
increased 6.8 percent in 1995. See additional discussion below regarding
Ameritech's interstate access rate reductions.
The decrease in intrastate network access revenues for the six months ended
June 30, 1995 was primarily due to rate reductions of $8.9 which resulted
from legislation which adopted certain regulatory freedoms as previously
discussed. Also contributing to the decrease was a decrease in network
usage revenues of $1.2, as two major interexchange carriers increased
utilization of existing dedicated high capacity facilities. Minutes of use
related to switched intrastate calls increased 8.7 percent in 1995.
___________________________________________________________________________
Long distance service
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $ 83.8 $ 96.5 $(12.7) (13.2)
The decrease in long distance revenues for the six months ended June 30,
1995 was impacted by the 1994 implementation of the ECC plan (previously
discussed) which classified certain long distance usage to lower-priced
local service usage. The ECC plan effectively lowered long distance
revenues by $14.6. Partially offsetting this decrease were increased
revenues of $1.9 resulting from increases in long distance network usage.
<PAGE>9
Form 10-Q Part I Wisconsin Bell, Inc.
Management's Discussion and Analysis
of Results of Operations (cont'd.)
Other
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $ 41.4 $ 54.7 $(13.3) (24.3)
Other revenues include revenues derived from directory advertising, billing
and collection services, inside wire installation and maintenance services
and other miscellaneous services. The decrease in other revenues was
primarily due to a renegotiated directory and license fee contract with
Ameritech Publishing, Inc. (API). The renegotiated contract accounted for
approximately $13.0 of the decrease. Also contributing to the decrease was
a decrease of $1.4 in rent revenues from a change in methodology in the way
the Company accounts for these revenues. In 1995, these revenues were
reflected as credits to expense, whereas in 1994, such amounts were
included in other revenues. Partially offsetting these decreases were rate
increases for inside wire installation and maintenance services of $1.2 and
increases in nonregulated services revenues of $1.1.
___________________________________________________________________________
Operating expenses
Total operating expenses for the six months ended June 30, 1995 decreased
by $106.2 or 22.1 percent to $374.5. The decrease was largely attributable
to the 1994 work force restructuring, which resulted in a credit of $26.4
in the first quarter of 1995 related to the net settlement gains previously
discussed compared with a first quarter 1994 charge of $53.0.
___________________________________________________________________________
Employee-related expenses
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $111.9 $122.1 $ (10.2) (8.4)
The decrease in employee-related expenses for the six months ended
June 30, 1995 was attributable primarily to the effect of work force
reductions of $11.5 over the past year, as well as reduced bonus accruals
and pensions, postretirement benefits and other benefits of $4.0.
Partially offsetting these decreases were the effects of increased overtime
payments, wage increases, medical and dental benefits and payroll taxes of
$5.3.
There were 4,429 employees at June 30, 1995, compared with 4,971 at
June 30, 1994.
<PAGE>10
Form 10-Q Part I Wisconsin Bell, Inc.
Management's Discussion and Analysis
of Results of Operations (cont'd.)
Depreciation and
amortization
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $ 84.9 $ 94.6 $ (9.7)` (10.3)
The decrease in depreciation and amortization expense for the six months
ended June 30, 1995 was primarily due to the cessation of depreciation of
analog switches determined to be obsolete in connection with the
discontinuance of Statement of Financial Accounting Standards No. 71 (FAS
71), "Accounting for the Effects of Certain Types of Regulation," in the
fourth quarter of 1994. The change in depreciation rates also contributed
to the decrease.
___________________________________________________________________________
Other operating expenses
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $174.0 $180.2 $ (6.2) (3.4)
The decrease in other operating expenses for the six months ended June 30,
1995 was primarily attributable to decreases in access charges of $8.2, as
a result of renegotiated rates, and switching system software of $1.8.
These decreases were partially offset by a net increase of $1.4 in
affiliate services, resulting from increased billings from Ameritech
Services, Inc. (ASI), primarily for contract and professional services.
Increases of $2.4 in advertising and bad debt expenses and payment to the
Wisconsin Advanced Telecommunications Foundation, which supports advanced
telecommunication projects and educates users across Wisconsin, also
partially offset the decreases.
<PAGE>11
Form 10-Q Part I Wisconsin Bell, Inc.
Management's Discussion and Analysis
of Results of Operations (cont'd.)
Restructuring (credit) charge
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $(26.4) $53.0 $(79.4) n/a
As discussed in Note 1, Ameritech announced in March 1994 that it intended
to reduce its nonmanagement work force by 6,000 employees (600 at the
Company) by the end of 1995. Reduction of the work force results from the
Company's implementation of technological improvements, consolidations and
initiatives to balance the cost structure with emerging competition.
Ameritech currently expects its nonmanagement work force to be reduced by
about 11,500 employees through 1995 instead of the 6,000 originally
estimated in March 1994, including 1,092 at the Company. A pretax charge
of $53.0 related to the original estimated work force reduction was
recorded in the first quarter of 1994, with additional charges later in
1994. A noncash settlement gain of $26.4 was recorded in the first quarter
of 1995 associated with lump-sum pension payments to former employees.
Future settlement gains (estimated at $5.0) are anticipated.
Actual employee reductions by quarter were: 114 in the second quarter of
1994, 207 in the third quarter of 1994, 593 in the fourth quarter of 1994,
20 in the first quarter of 1995, and 65 in the second quarter of 1995.
Employee reductions of 93 are expected in the third quarter of 1995. Cash
requirements to fund the financial incentives (principally contractual
termination payments totaling approximately $22.6) are being met as
prescribed by applicable collective bargaining agreements. Certain of
these collective bargaining agreements require contractual termination
payments to be paid in a manner other than lump-sum, thus requiring cash
payments beyond an employee's termination date.
This program will reduce annual employee-related costs by approximately $50
thousand per departing employee. The projected savings are being partially
offset by the hiring of new employees with better matched skills to
accommodate growth, ensure high quality customer service and meet staffing
requirements for new business opportunities.
___________________________________________________________________________
Taxes other than income taxes
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $ 30.1 $ 30.8 $ (0.7) (2.3)
The decrease in taxes other than income taxes for the six months ended
June 30, 1995 is primarily attributable to lower gross receipts taxes of
$0.8 resulting from decreased revenues.
<PAGE>12
Form 10-Q Part I Wisconsin Bell, Inc.
Management's Discussion and Analysis
of Results of Operations (cont'd.)
Other Income and Expenses
Interest expense
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $ 15.2 $ 13.2 $ 2.0 15.2
The increase in interest expense for the six months ended June 30, 1995 was
primarily due to the increase in short-term interest rates, partially
offset by lower average debt balances.
___________________________________________________________________________
Other income, net
June 30 (Increase) Percent
1995 1994 Decrease Change
Six Months Ended $ (0.2) $ (1.7) $ 1.5 n/a
Other income, net includes equity earnings in affiliates, interest income
and other nonoperating items. The change in other income, net results
primarily from a nonrecurring 1994 Sprint sales tax refund of $1.1 from a
settlement from the state of Wisconsin, as well as from decreased equity
earnings from ASI.
___________________________________________________________________________
Income taxes
June 30 Increase Percent
1995 1994 (Decrease) Change
Six Months Ended $ 63.7 $ 27.6 $ 36.1 n/a
The increase in income taxes for the six months ended June 30, 1995 was due
primarily to the change in pretax income as a result of the work force
restructuring credit of $26.4 ($15.8 after-tax) in the first quarter of
1995 as compared to the work force restructuring charge of $53.0 ($31.7
after-tax) in the first quarter of 1994. Excluding these items, income
taxes changed in line with the earnings in the business.
<PAGE>13
Form 10-Q Part I Wisconsin Bell, Inc.
Management's Discussion and Analysis
of Results of Operations (cont'd.)
Ratio of earnings to fixed charges
The ratio of earnings to fixed charges for the six months ended June 30 was
10.04 in 1995 and 5.97 in 1994. The ratio in 1995 was favorably affected
by a credit of $26.4 for work force restructuring (see prior discussion of
this item). The ratio in 1994 was adversely affected by a $53.0 charge for
work force restructuring. The work force restructuring program has largely
been funded by the Ameritech Pension Plan. After adjustment to remove the
effects of the work force restructuring, the ratio is indicative of the
Company's ability to meet its funding requirements.
___________________________________________________________________________
Dial 1+
On July 25, 1995, the Wisconsin Public Service Commission issued an interim
order directing implementation of IntraLATA Dial 1+ to be phased in
during the first half of 1996. The financial impacts of this order have
not yet been determined.
___________________________________________________________________________
Interstate access rate reduction
On July 18, 1995, the Federal Communications Commission (FCC) approved
Ameritech's request for price regulation without sharing of earnings
effective January 1, 1995. By receiving FCC approval of Ameritech's waiver
request effective January 1, 1995, the total annual reduction in prices
that the Company charges long distance companies for local connections
increased to $10.9 effective August 1, 1995. The current year impact is
expected to be a reduction in interstate access revenues of $4.6, which
represents an increase of $1.6 over the 1995 reduction otherwise required
under the FCC's interim price cap rules.
___________________________________________________________________________
Labor negotiations
The Company's nonmanagement workforce (about 80 percent of total employees)
is represented by the Communications Workers of America whose contract was
set to expire on August 5, 1995, but has been extended indefinitely. The
extension may be canceled by either the Company or the CWA with 24 hour
notice. Membership of the union has authorized a work stoppage.
Negotiations with the union continue and management believes a satisfactory
resolution will be achieved.
<PAGE>14
Form 10-Q Part II Wisconsin Bell, Inc.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
12 Computation of Ratio of Earnings to Fixed Charges for the
Six Months Ended June 30, 1995 and June 30, 1994.
27 Financial Data Schedule.
(b) Reports on Form 8-K
No Form 8-K was filed by the registrant during the quarter for
which this report is filed.
<PAGE>15
Form 10-Q Part I Wisconsin Bell, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WISCONSIN BELL, INC.
(Registrant)
Date: August 7, 1995 /s/ Richard A. Kuzmar
Richard A. Kuzmar
Vice President and Comptroller
(Principal Financial Officer)
<PAGE>16
EXHIBIT 12
WISCONSIN BELL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
Six Months Ended
June 30
1995 1994
1. EARNINGS
a) Income before interest cost, and
income taxes $177.6 $ 89.9
b) Portion of rental expense
representative of the
interest factor (1) 2.2 2.0
------ ------
Total 1(a) through 1(b) $179.8 $ 91.9
------ ------
2. FIXED CHARGES
a) Total interest cost including
capital lease obligations $ 15.7 $ 13.4
b) Portion of rental expense
representative of the
interest factor (1) 2.2 2.0
------ ------
Total 2(a) through 2(b) $ 17.9 $ 15.4
------ ------
3. RATIO OF EARNINGS TO FIXED CHARGES 10.04 5.97
===== ====
________________
(1) One-third of rental expense is considered to be the amount re-
presenting return on capital.
(2) The results for the first six months of 1995 reflect a first quarter
1995 $26.4 pretax credit primarily from settlement gains resulting form
lump sum pension payments from the pension plan to former employees
associated with the nonmanagement work force restructuring. Results
for the first six months 1994 reflect a first quarter 1994 $53.0
pretax charge associated with the nonmanagement work force
restructuring. Costs of the work force restructuring program have
largely been funded from the Ameritech Pension Plan.
(3) Interest cost includes capitalized interest expense.
(4) Earnings have not been adjusted to reflect the timing of dividends
received and equity in earnings of unconsolidated affiliates as
the effect on an annual basis has been insignificant.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Wisconsin Bell, Inc.'s June 30, 1995 financial statements and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 0
<SECURITIES> 0<F1>
<RECEIVABLES> 235,600
<ALLOWANCES> 15,400
<INVENTORY> 3,700
<CURRENT-ASSETS> 241,800
<PP&E> 2,779,000
<DEPRECIATION> 1,611,500
<TOTAL-ASSETS> 1,523,900
<CURRENT-LIABILITIES> 366,900
<BONDS> 305,800
<COMMON> 639,200
0
0
<OTHER-SE> (165,200)
<TOTAL-LIABILITY-AND-EQUITY> 1,523,900
<SALES> 0<F2>
<TOTAL-REVENUES> 551,400
<CGS> 0<F3>
<TOTAL-COSTS> 374,500
<OTHER-EXPENSES> (200)
<LOSS-PROVISION> 5,600
<INTEREST-EXPENSE> 15,200
<INCOME-PRETAX> 161,900
<INCOME-TAX> 63,700
<INCOME-CONTINUING> 98,200
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 98,200
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Securities are not material and therefore have not been stated separately
in the financial statements. This amount is included in the Cash tag.
<F2>Net sales of tangible products is not more than 10% of total operating
revenues and therefore has not been stated separately in the financial
statements pursuant to Regulation S-X, Rule 5-03(B). This amount is
included in the "Total Revenues" tag.
<F3>Cost of tangible goods sold is included in cost of service and products
in the financial statements and the "Total Cost" tag, pursuant to
Regulation S-X, Rule 5-03(B).
</FN>
</TABLE>
