SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report - January 13, 1994
(Date of earliest event reported)
GTE Corporation
(Exact name of registrant as specified in its charter)
NEW YORK
(State or other jurisdiction of incorporation or organization)
1-2755 13-1678633
(Commission File Number) (IRS Employer Identification No.)
One Stamford Forum
Stamford, Connecticut 06904
(Address of principal executive offices) (Zip Code)
203-965-2000
GTE CORPORATION
FORM 8-K
ITEM OF INFORMATION
Item 5. Other Events
GTE today announced that its results for the fourth quarter of
1993 will include a one-time pre-tax restructuring charge of
$1.8 billion which will reduce fourth quarter and full year net
income by $1.2 billion, or $1.22 per share.
This restructuring charge includes $1.4 billion at Telephone
Operations primarily to implement its re-engineering plan. The
re-engineering plan will redesign and streamline processes in
order to improve customer-responsiveness and product quality,
reduce the time necessary to introduce new products and
services and further reduce costs. The re-engineering plan
includes $680 million to upgrade or replace existing customer
service and administrative systems and enhance network
software, $410 million for employee separation benefits
associated with workforce reductions and $210 million primarily
for the consolidation of facilities and operations and other
related costs.
The re-engineering plan will be implemented over the next three
years, with expected reductions of approximately 17,000
Telephone Operations employees during that time frame.
The restructuring charge also includes a $400 million reduction
in the carrying value of satellite communication assets of GTE
Spacenet and certain other assets to estimated net realizable
value. This action primarily reflects the development of
alternative transmission methods through technological advances
and increased competition. GTE will also combine its Spacenet
business into Government Systems to leverage the combined
strength of these two businesses.
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 hereunto duly authorized.
GTE CORPORATION
(Registrant)
By J. Michael Kelly
J. Michael Kelly
Vice President and Controller
Date: January 13, 1994
