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 - February 17, 1995
(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 7. Financial Statements and Exhibits
(a) Financial Statements -- None.
(b) Pro Forma Financial Information -- None.
(c) Exhibits
12 Statements re Computation of Ratios.
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 Marianne Drost
Marianne Drost
Secretary
Date: February 17, 1995
<TABLE>
Exhibit 12
Page 1
GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF THE RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars)
(Unaudited)
<CAPTION>
Years Ended December 31
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Net earnings available for fixed charges:
Income from continuing operations $2,450,779 $ 989,803 $1,787,035 $1,528,102 $1,622,261
Add (deduct) -
Income taxes 1,532,482 567,747 966,589 662,860 697,963
Interest expense 1,139,233 1,298,234 1,475,670 1,574,746 1,510,909
Capitalized interest (net of
amortization) (6,045) (3,421) (4,931) (14,791) (18,316)
Preferred stock dividends of subsidiaries 18,252 22,162 23,429 25,317 28,697
Additional income requirement on preferred
stock dividends of subsidiaries 11,426 12,739 12,671 11,006 12,357
Minority interests 140,464 112,335 112,425 103,626 83,471
Portion of rent expense representing
interest 139,715 153,058 196,533 210,698 206,959
5,426,306 3,152,657 4,569,421 4,101,564 4,144,301
Deduct - Minority interests (242,937) (236,944) (248,979) (247,284) (224,240)
Adjusted earnings available
for fixed charges from
continuing operations $5,183,369 $2,915,713 $4,320,442 $3,854,280 $3,920,061
Fixed Charges:
Interest charges $1,139,233 $1,298,234 $1,475,670 $1,574,746 $1,510,909
Preferred dividends of subsidiaries 18,252 22,162 23,429 25,317 28,697
Additional income requirement on preferred
dividends of subsidiaries 11,426 12,739 12,671 11,006 12,357
Portion of rent expense representing
interest 139,715 153,058 196,533 210,698 206,959
1,308,626 1,486,193 1,708,303 1,821,767 1,758,922
Deduct - Minority interests (68,096) (78,421) (86,504) (89,479) (91,730)
Adjusted fixed charges $1,240,530 $1,407,772 $1,621,799 $1,732,288 $1,667,192
Ratio of Earnings to Fixed Charges - continuing
operations 4.18 2.07 2.66 2.22 2.35
Exhibit 12
Page 2
GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF THE RATIO OF EARNINGS TO FIXED CHARGES - PRO FORMA
(Thousands of Dollars)
(Unaudited)
<CAPTION>
Years Ended December 31
1994(a) 1993(b)
<S> <C> <C>
Net earnings available for fixed charges:
Income from continuing operations $2,288,480 $2,095,170
Add (deduct) -
Income taxes 1,431,044 1,210,401
Interest expense 1,139,233 1,298,234
Capitalized interest (net of
amortization) (6,045) (3,421)
Preferred stock dividends of
subsidiaries 18,252 22,162
Additional income requirement on preferred
stock dividends of subsidiaries 11,426 12,739
Minority interests 140,464 112,335
Portion of rent expense representing
interest 139,715 153,058
5,162,569 4,900,678
Deduct - Minority interests (242,937) (236,944)
Adjusted earnings available
for fixed charges from
continuing operations $4,919,632 $4,663,734
Fixed Charges:
Interest charges $1,139,233 $1,298,234
Preferred dividends of subsidiaries 18,252 22,162
Additional income requirement on preferred
dividends of subsidiaries 11,426 12,739
Portion of rent expense representing
interest 139,715 153,058
1,308,626 1,486,193
Deduct - Minority interests (68,096) (78,421)
Adjusted fixed charges $1,240,530 $1,407,772
Ratio of Earnings to Fixed Charges - continuing
operations 3.97 3.31
(a) Excludes the after-tax gain on the sale of non-strategic telephone
properties of $162 million.
(b) Excludes the $1.8 billion pre-tax restructuring charge, the after-tax
cost of voluntary separation programs at Telephone Operations of $74
million and the after-tax gain on the sale of non-strategic telephone
properties of $91 million.
Exhibit 12
Page 2
GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF THE RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Thousands of Dollars)
(Unaudited)
<CAPTION>
Years Ended December 31
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Net earnings available for fixed charges
and preferred stock dividends:
Income from continuing operations $2,450,779 $ 989,803 $1,787,035 $1,528,102 $1,622,261
Add (deduct) -
Income taxes 1,532,482 567,747 966,589 662,860 697,963
Interest expense 1,139,233 1,298,234 1,475,670 1,574,746 1,510,909
Capitalized interest (net of
amortization) (6,045) (3,421) (4,931) (14,791) (18,316)
Preferred stock dividends of subsidiaries18,252 22,162 23,429 25,317 28,697
Additional income requirement on preferred
stock dividends of subsidiaries 11,426 12,739 12,671 11,006 12,357
Minority interests 140,464 112,335 112,425 103,626 83,471
Additional income requirement on preferred
stock dividends of Parent 6,204 10,246 14,241 15,991 18,802
Portion of rent expense representing
interest 139,715 153,058 196,533 210,698 206,959
5,432,510 3,162,903 4,583,662 4,117,555 4,163,103
Deduct - Minority interests (242,937) (236,944) (248,979) (247,284)
(224,240)
Adjusted earnings available for fixed
charges and preferred stock
dividends - continuing operations $5,189,573 $2,925,959 $4,334,683 $3,870,271 $3,938,863
Fixed Charges and preferred stock dividends:
Interest charges $1,139,233 $1,298,234 $1,475,670 $1,574,746 $1,510,909
Preferred dividends of subsidiaries 18,252 22,162 23,429 25,317 28,697
Additional income requirement on preferred
dividends of subsidiaries 11,426 12,739 12,671 11,006 12,357
Preferred stock dividends of Parent 9,910 17,825 26,331 36,785 43,662
Additional income requirement on preferred
stock dividends of Parent 6,204 10,246 14,241 15,991 18,802
Portion of rent expense representing
interest 139,715 153,058 196,533 210,698 206,959
1,324,740 1,514,264 1,748,875 1,874,543 1,821,386
Deduct - Minority interests (68,096) (78,421) (86,504) (89,479) (91,730)
Adjusted fixed charges $1,256,644 $1,435,843 $1,662,371 $1,785,064 $1,729,656
Ratio of Earnings to Fixed Charges and
preferred stock dividends -
continuing operations 4.13 2.04 2.61 2.17 2.28
Exhibit 12
Page 4
GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF THE RATIO OF EARNINGS TO FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS - PRO FORMA
(Thousands of Dollars)
(Unaudited)
<CAPTION>
Years Ended December 31
1994(a) 1993(b)
<S> <C> <C>
Net earnings available for fixed charges and
preferred stock dividends:
Income from continuing operations $2,288,480 $2,095,170
Add (deduct) -
Income taxes 1,431,044 1,210,401
Interest expense 1,139,233 1,298,234
Capitalized interest (net of
amortization) (6,045) (3,421)
Preferred stock dividends of
subsidiaries 18,252 22,162
Additional income requirement on preferred
stock dividends of subsidiaries 11,426 12,739
Minority interests 140,464 112,335
Additional income requirement on preferred
stock dividends of Parent 6,204 10,246
Portion of rent expense representing
interest 139,715 153,058
5,168,773 4,910,924
Deduct - Minority interests (242,937) (236,944)
Adjusted earnings available for fixed
charges and preferred stock dividends
from continuing operations $4,925,836 $4,673,980
Fixed charges and preferred stock dividends:
Interest charges $1,139,233 $1,298,234
Preferred dividends of subsidiaries 18,252 22,162
Additional income requirement on preferred
dividends of subsidiaries 11,426 12,739
Preferred stock dividends of Parent 9,910 17,825
Additional income requirement on preferred
stock dividends of Parent 6,204 10,246
Portion of rent expense representing
interest 139,715 153,058
1,324,740 1,514,264
Deduct - Minority interests (68,096) (78,421)
Adjusted fixed charges and
preferred stock dividends $1,256,644 $1,435,843
Ratio of Earnings to Fixed Charges and
preferred stock dividends - continuing
operations 3.92 3.26
(a) Excludes the after-tax gain on the sale of non-strategic telephone
properties of $162 million.
(b) Excludes the $1.8 billion pre-tax restructuring charge, the after-tax
cost of voluntary separation programs at Telephone Operations of $74
million and the after-tax gain on the sale of non-strategic telephone
properties of $91 million.
</TABLE>
