SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 1-2755
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
GTE SAVINGS PLAN
GTE CORPORATION
ONE STAMFORD FORUM
STAMFORD, CONNECTICUT 06904
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator of the
GTE Savings Plan:
We have audited the accompanying Statements of Net Assets Available
for Plan Benefits with Fund Information of the GTE Savings Plan as of
December 31, 1995 and 1994, and the related Statement of Changes in Net
Assets Available for Plan Benefits with Fund Information for the year ended
December 31, 1995. These financial statements are the responsibility of the
Plan Administrator. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits 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 GTE Savings Plan as of December 31, 1995 and 1994, and the changes in
its net assets available for plan benefits for the year ended December 31,
1995, in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the
financial statements taken as a whole. The fund information in the
Statements of Net Assets Available for Plan Benefits and Statement 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 fund information has been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion,
is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
ARTHUR ANDERSEN LLP
Stamford, Connecticut
June 17, 1996
<TABLE>
GTE SAVINGS PLAN
STATEMENT of Net Assets Available for Plan Benefits, WITH FUND INFORMATION
DECEMBER 31, 1995
(thousands of dollars)
<CAPTION>
Investments Total Net
in Master Trust Receivables Assets Notes Payable Assets
<S> <C> <C> <C> <C> <C>
FIDELITY FUNDS:
Equity - Income Fund $ 180,427 $ 441 $ 180,868 $ - $ 180,868
Overseas Fund 89,521 328 89,849 - 89,849
U.S. Equity Index Collective Trust Fund 120,433 223 120,656 - 120,656
Retirement Government Money Market Portfolio 70,061 303 70,364 - 70,364
Magellan Fund 383,218 1,210 384,428 - 384,428
Conservative Strategy Portfolio 369,893 336 370,229 - 370,229
Conservative Growth Strategy Portfolio 210,984 374 211,358 - 211,358
Moderate Growth Strategy Portfolio 284,488 698 285,186 - 285,186
Long-Term Growth Strategy Portfolio 221,578 706 222,284 - 222,284
OTHER FUNDS:
GTE Stock Portfolio 1,090,951 19,025 1,109,976 - 1,109,976
Loan Fund 110,450 - 110,450 - 110,450
ESOP Shares Fund Allocated (Note 4) 240,375 - 240,375 - 240,375
ESOP Shares Fund Unallocated (Note 4) 781,322 - 781,322 624,324 156,998
Total $4,153,701 $23,644 $4,177,345 $624,324 $3,553,021
The accompanying notes are an integral part of this financial statement.
GTE SAVINGS PLAN
STATEMENT of Net Assets Available for Plan Benefits, WITH FUND INFORMATION
DECEMBER 31, 1994
(thousands of dollars)
<CAPTION>
Net
Investments Total Assets
in Master Trust Receivables Assets Notes Payable (Deficit)
<S> <C> <C> <C> <C> <C>
FIDELITY FUNDS:
Equity - Income Fund $ 130,795 $ 405 $ 131,200 $ - $ 131,200
Overseas Fund 102,150 427 102,577 - 102,577
U.S. Equity Index Collective Trust Fund 80,530 153 80,683 - 80,683
Retirement Government Money Market Portfolio 53,344 326 53,670 - 53,670
Magellan Fund 258,188 1,050 259,238 - 259,238
Conservative Strategy Portfolio 384,726 373 385,099 - 385,099
Conservative Growth Strategy Portfolio 189,242 382 189,624 - 189,624
Moderate Growth Strategy Portfolio 220,344 668 221,012 - 221,012
Long-Term Growth Strategy Portfolio 172,881 683 173,564 - 173,564
OTHER FUNDS:
GTE Stock Portfolio 814,456 10,723 825,179 - 825,179
Loan Fund 117,529 - 117,529 - 117,529
ESOP Shares Fund Allocated (Note 4) 138,199 - 138,199 - 138,199
ESOP Shares Fund Unallocated (Note 4) 586,450 - 586,450 649,378 (62,928)
Total $3,248,834 $15,190 $3,264,024 $649,378 $2,614,646
The accompanying notes are an integral part of this financial statement.
GTE SAVINGS PLAN
STATEMENT of CHANGES IN Net Assets Available for Plan Benefits, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
(thousands of dollars)
<CAPTION>
Fidelity Funds
U.S. Equity Retirement
Equity- Index Government
Income Overseas Collective Money Market Magellan
Fund Fund Trust Fund Portfolio Fund
<S> <C> <C> <C> <C> <C>
Interest and Dividends $ 10,289 $ 2,062 $ - $ 3,519 $ 21,964
Net Investment Gain (Note 2) 31,404 5,414 30,830 - 72,510
Contributions (Note 3):
Employee 11,359 10,126 5,053 9,001 29,328
Employer - - - - -
Transfers (To) From Other Plans 465 287 380 359 1,276
Net Transfers Between Funds 10,650 (22,491) 12,455 16,705 26,320
Participant Loans:
Repayments 2,621 2,407 1,150 3,386 6,481
Withdrawals (2,482) (2,076) (1,334) (2,505) (7,030)
Interest Expense - - - - -
Withdrawals and Terminations (14,638) (8,457) (8,561) (13,771) (25,659)
INCREASE (DECREASE) IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS DURING THE YEAR 49,668 (12,728) 39,973 16,694 125,190
NET ASSETS AVAILABLE (DEFICIT) FOR PLAN
BENEFITS AT BEGINNING OF YEAR 131,200 102,577 80,683 53,670 259,238
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT END OF YEAR $180,868 $89,849 $120,656 $70,364 $384,428
The accompanying notes are an integral part of this financial statement.
GTE SAVINGS PLAN
STATEMENT of CHANGES IN Net Assets Available for Plan Benefits, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
(thousands of dollars)
<CAPTION>
Fidelity Funds
Conservative Moderate Long-Term
Conservative Growth Growth Growth GTE
Strategy Strategy Strategy Strategy Stock
Portfolio Portfolio Portfolio Portfolio Portfolio
<S> <C> <C> <C> <C> <C>
Interest and Dividends $ - $ - $ - $ - $ 48,238
Net Investment Gain (Note 2) 30,503 28,839 50,622 40,394 341,537
Contributions (Note 3):
Employee 10,219 10,646 18,920 18,679 21,397
Employer - - - - 18,311
Transfers (To) From Other Plans 209 468 528 534 (1,161)
Net Transfers Between Funds (5,590) 1,059 10,840 551 (49,236)
Participant Loans:
Repayments 2,790 2,454 4,186 3,609 22,818
Withdrawals (3,991) (2,796) (4,171) (3,368) (21,683)
Interest Expense - - - - -
Withdrawals and Terminations (49,010) (18,936) (16,751) (11,679) (95,424)
INCREASE (DECREASE) IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS DURING THE YEAR (14,870) 21,734 64,174 48,720 284,797
NET ASSETS AVAILABLE (DEFICIT) FOR PLAN
BENEFITS AT BEGINNING OF YEAR 385,099 189,624 221,012 173,564 825,179
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT END OF YEAR $370,229 $211,358 $285,186 $222,284 $1,109,976
The accompanying notes are an integral part of this financial statement.
GTE SAVINGS PLAN
STATEMENT of CHANGES IN Net Assets Available for Plan Benefits, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
(thousands of dollars)
<CAPTION>
ESOP Shares ESOP Shares
Loan Fund Fund
Fund Allocated Unallocated Total
<S> <C> <C> <C> <C>
Interest and Dividends $ 7,249 $ 10,304 $ 34,932 $ 138,557
Net Investment Gain (Note 2) - 70,602 244,258 946,913
Contributions (Note 3):
Employee - - - 144,728
Employer - - 42,764 61,075
Transfers (To) From Other Plans - - - 3,345
Net Transfers Between Funds - 38,105 (39,368) -
Participant Loans:
Repayments (51,902) - - -
Withdrawals 51,436 - - -
Interest Expense - - (62,660) (62,660)
Withdrawals and Terminations (13,862) (16,835) - (293,583)
INCREASE (DECREASE) IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS DURING THE YEAR (7,079) 102,176 219,926 938,375
NET ASSETS AVAILABLE (DEFICIT) FOR PLAN
BENEFITS AT BEGINNING OF YEAR 117,529 138,199 (62,928) 2,614,646
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT END OF YEAR $110,450 $240,375 $156,998 $3,553,021
The accompanying notes are an integral part of this financial statement.
</TABLE>
GTE CORPORATION
GTE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(1) Description of the Plan:
Eligibility
The GTE Savings Plan (the "Plan") is a defined contribution plan under
the Employee Retirement Income Security Act of 1974 ("ERISA"). The Plan
provides eligible employees of GTE Corporation's ("GTE") participating
affiliates ("Participating Affiliates") with a convenient way to save for
both medium and long-term needs.
Eligible employee generally means an employee of GTE or a Participating
Affiliate, but does not include any of the following:
a. an individual in a unit covered by a collective bargaining
agreement between GTE or one or more Participating Affiliates
and a collective bargaining agent;
b. an individual paid by the hour unless GTE or a Participating
Affiliate has agreed to become a co-sponsor under the Plan for
such employees;
c. a nonresident alien with no United States source income from
GTE;
d. a "leased employee" within the meaning of the Internal
Revenue Code Section 414(N);
e. an individual who is not paid directly by GTE or a
Participating Affiliate; and
f. an individual whose employment contract excludes
participation in the Plan.
To the extent expressly provided in any written separation policy of
GTE or a Participating Affiliate, eligible employee also includes any former
employee of GTE or a Participating Affiliate who is receiving salary
continuation payments pursuant to the separation policy.
An individual's active participation in the Plan shall terminate when
the individual ceases to be an eligible employee; but the individual shall
remain a participant until the entire account balance under the Plan has
been distributed or forfeited.
Vesting and Investment Choices
Matching contributions vest immediately upon death, disability,
retirement, attainment of age 65 or five years of service with GTE or
Participating Affiliate. For participants with less than five years of
service, matching contributions vest 50% immediately and 50% 24 months after
the end of the Plan year for which the contributions were made. Forfeitures
GTE CORPORATION
GTE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - (Continued)
of a participant's account due to termination prior to 100% vesting are used
to reduce GTE's future contributions.
Each participant directs their contributions to be invested in one of
the current investment options: five Fidelity funds, four Fidelity strategy
portfolios, the GTE stock portfolio or in any combination of these funds and
portfolios. Participants are permitted to make changes to investment
choices on a daily basis. A description of the investment choices follows:
a. Fidelity Equity-Income Fund - invests primarily in corporate
common and preferred stock, with up to 20% of the fund invested
in bonds and convertible securities.
b. Fidelity Overseas Fund - invests primarily in foreign
securities whose principal activities are outside the United
States and also invests in public and private bonds (both
foreign and domestic), bank deposits and money market
instruments denominated in United States dollars or foreign
currencies.
c. Fidelity U.S. Equity Index Collective Trust Fund - invests
in commingled funds seeking to provide results that correspond
to the total return performance of common stocks publicly
traded in the United States as represented by the Standard
& Poor's 500 Composite Stock Price Index.
d. Fidelity Retirement Government Money Market Portfolio -
invests in high-quality money market instruments and obligations
issued or guaranteed by the United States government or its
agencies or instrumentalities.
e. Fidelity Magellan Fund - invests primarily in stocks and
securities convertible into common stock of United States and
foreign companies and in high yield securities, options, and
futures contracts related to securities in the portfolio.
f. Conservative Strategy Portfolio - invests 100% of its assets
in an underlying portfolio of fixed-income securities, including
investment contracts and bonds.
g. Conservative Growth Strategy Portfolio - invests
approximately 75% of its assets in a portfolio of fixed-income
securities including investment contracts and bonds, with the
remaining 25% invested in a portfolio of United States equities.
h. Moderate Growth Strategy Portfolio - invests approximately
50% of its assets in a portfolio of United States equities. The
remaining 50% is invested in a portfolio of fixed-income
securities, including investment contracts and bonds.
GTE CORPORATION
GTE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - (Continued)
i. Long-Term Growth Strategy Portfolio - invests approximately
75% of its assets in a portfolio of equity securities consisting
of a combination of United States equities (50%) and
international equities (25%). The remaining 25% is invested in
a portfolio of fixed-income securities, including investment
contracts and bonds.
j. GTE Stock Portfolio - invests principally in GTE common
stock but may also invest a portion in short-term money market
instruments.
The Savings Plan Committee may, at its sole discretion, eliminate,
and/or change the underlying composition of any investment options, and may
add other funds as a current investment option.
Participant Loans
A loan feature is available to participants which permits borrowing up
to 50% of a participant's vested balance, subject to certain limitations.
The primary assets of the Loan Fund are promissory notes executed by
participants who have taken loans.
Interest rates on loans are equal to the prime interest rate on the
first business day of each calendar quarter. Participant loans are
withdrawn proportionately from the participants' investment accounts. When
loans are repaid, the principal and interest are reinvested according to the
participants' current investment choices. Short-term loans are from six
months to five years; long-term loans for the purchase of a primary
residence are from sixty-six months to twenty years.
Master Trust
The Plan participates in the GTE Master Savings Trust (the "Master
Trust") along with other plans which own a percentage of the assets in the
Master Trust. These percentages are based on a pro rata share of the Master
Trust assets. At December 31, 1995 and 1994 the Plan owned approximately
79% and 80%, respectively, of the assets in the trust. Interest and
dividends along with net investment gain or loss on the sale of securities
are allocated to the Plan on a daily basis based upon the Plans'
participation in the various investment funds and portfolios that comprise
the Master Trust as a percentage of the total participation in such funds
and portfolios (see Note 6).
Trustee
Fidelity Management Trust Company (the "Trustee") has been designated
as the Trustee under the Plan and is responsible for the investment,
reinvestment, control and disbursement of the funds and portfolios of the
Plan including the payment of principal and interest on the Employee Stock
Ownership Plan (the "ESOP") notes payable (see Note 4). Expenses of
administering the Plan and related funds and portfolios, including fees and
expenses of the Trustee, are charged to the participants' accounts. GTE
Service Corporation, a subsidiary of GTE, is the Plan Administrator.
GTE CORPORATION
GTE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - (Continued)
Plan Modification
GTE reserves the right to terminate, modify, alter or amend the Plan
at any time, provided that no such change shall permit any of the funds to
be used for any purpose other than the exclusive benefit of the
participants. In the event of termination or discontinuance of the Plan by
GTE, participants' interest in their accounts will become fully vested.
(2) Accounting Policies:
The accompanying financial statements have been prepared in accordance
with generally accepted accounting principles which require that estimates
and assumptions be made that affect reported amounts. Actual results could
differ from those estimates.
Investments are stated at market value determined from publicly stated
price information, if available; otherwise, the estimated fair value is
used. Guaranteed investment contracts are stated at cost plus accrued
interest. Net investment gains and losses include both unrealized gains and
losses on investments held by the Plan at year end as well as realized gains
and losses on investments sold during the year. Net unrealized and net
realized gains and losses are based on the changes in value of the
investments since the beginning of the Plan year or the time of purchase if
acquired during the Plan year. During 1995 the GTE Stock Portfolio had an
unrealized gain of $308.6 million and a realized gain of $32.9 million. For
the same period the combined ESOP shares fund had an unrealized gain of
$315.4 million and a realized loss of $.5 million.
(3) Contributions:
The Plan is funded by employee contributions up to a maximum of 16% of
compensation and by company matching contributions in shares of GTE common
stock equivalent in value to 75% of the initial 6% of the employees'
contributions not withdrawn during the Plan year. The company matching
contributions are credited following the close of each calendar year to the
accounts of participants who have not terminated their active participation.
Participant contributions may be before tax ("Elective Contributions") or
from currently taxed compensation ("After-Tax Contributions"). Each
participant's Elective Contributions for the 1995 Plan year was limited to
$9,240. The total amount of Elective Contributions, After-Tax Contributions
and company matching contributions and certain forfeitures that may be
allocated to a Plan participant for the 1995 Plan year was limited to the
lesser of (i) $30,000 or (ii) 25% of the participant's total compensation;
and the compensation on which such contributions were based was limited to
$150,000.
GTE matching contributions are made in GTE shares and in general,
participants cannot redirect these shares into other investment choices.
For the 1995 Plan year total company matching contributions of 1,534,641
shares of GTE common stock were made with a market value at date of
contribution of $73.6 million. These contributions included an allocation
GTE CORPORATION
GTE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - (Continued)
of ESOP shares of 1,154,491 with a market value of $55.4 million and accrued
contributions of GTE common stock of 380,150 shares with a market value of
$18.2 million. Employer contributions receivable in the GTE Stock Portfolio
were $18.2 million and $9.9 million at December 31, 1995 and 1994,
respectively.
(4) Employee Stock Ownership Plan:
An Employee Stock Ownership Plan (the "ESOP") was established within
the Plan. In 1989 the ESOP borrowed $700 million to acquire, at market
value, 24.6 million shares of GTE common stock which will be used to meet a
portion of the estimated employer contributions to the Plan through 2004.
GTE and the Participating Affiliates also make annual cash contributions to
the ESOP which, when combined with dividends on the GTE common stock held by
the ESOP, are sufficient to repay the principal and interest on the loans
which have 10 and 15-year terms. As the ESOP makes loan payments, a
percentage of the GTE common stock held by the ESOP will be allocated to the
participants' accounts in the form of company matching contributions.
Debt service payments for 1995 totaled $88 million. This requirement
was funded from $45 million of dividends accumulated on the GTE stock held
by the ESOP and by $43 million of cash contributions. At December 31, 1995,
16.4 million shares of GTE common stock in the ESOP Shares Fund were held as
collateral for the ESOP loans.
The borrowings of the ESOP are as follows:
Interest Maturity
Rates Date 1995 1994
(in thousands)
Series A 9.48% 1997-1999 $115,824 $140,878
Series B 9.73% 1999-2005 508,500 508,500
$624,324 $649,378
Maturities of the outstanding loans are as follows:
Maturity
Date Amount
(in thousands)
1996 $ -
1997 31,306
1998 38,324
1999 46,194
2000 55,231
Thereafter 453,269
Total $624,324
GTE CORPORATION
GTE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - (Continued)
The Plan has pledged the unallocated shares in the ESOP Shares Fund as
collateral for the ESOP borrowings. GTE has guaranteed all principal and
interest payments on the ESOP borrowings in the event of default by the
Plan.
(5) Tax Status:
The Plan is a qualified profit sharing plan under Sections 401(a),
401(k) and 501 of the Internal Revenue Code of 1986, as amended (the
"Code"), and consequently is exempt from income tax. Management amended the
Plan in 1995 to comply with the final rulings under the Tax Reform Act of
1986, as amended, and has filed for a determination letter in accordance
with guidelines as issued by the Internal Revenue Service. Management
anticipates that a letter to the effect that the Plan, as amended, qualifies
under Sections 401(a), 401(k) and 501 of the Code will be received in due
course.
(6) GTE Master Savings Trust:
The plans participating in the Master Trust include the GTE Savings
Plan; GTE Hourly Savings Plan; GTE Corporation Savings, Investment and
Tax-Deferral Plan for Hourly Employees; AGCS Savings Plan (limited
participation) and AGCS Hourly Savings Plan (limited participation).
In the Master Trust, funds are invested in contracts with insurance
companies which represented 68% of the conservative strategy pool consisting
of 57 investment contracts held with 20 insurance companies. These
insurance companies, excluding Mutual Benefit Life Insurance Company (Mutual
Benefit) and Confederation Life Insurance and Annuity Company
(Confederation) discussed below were rated A- or better by Standard & Poor's
as of December 31, 1995 and 1994. The contracts are included in the
financial statements at contract value, which approximates fair value, as
reported by the insurance companies.
Contract value represents contributions made under the contract, plus
earnings, less withdrawals and administrative expenses. Investment
contracts are normally set at a fixed rate through maturity, which is also
the minimum crediting interest rate. Limitations on guarantees for normal
investment contracts are dependent on the credit worthiness of the insurance
company. Synthetic investment contracts ("Synthetics") are determined by an
internal rate of return calculation that equates market value and book value
at the expected average life of the securities. The Synthetics interest
rate is reset quarterly but has no minimum crediting rate. Limitations on
Synthetics are dependent upon the credit quality of the underlying
securities.
The investment contracts had average yields of 6.9% at December 31,
1995. The crediting interest rate for the investment contracts, excluding
Mutual Benefit and Confederation, had a range from 5.28% to 8.90% at
December 31, 1995. The investment contracts, excluding Mutual Benefit and
Confederation, bear interest rates ranging from 5.28% to 8.75% and have
scheduled maturities from January 1, 1996 to May 25, 2001.
GTE CORPORATION
GTE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - (Continued)
At December 31, 1995, the income pool had an investment contract with
Mutual Benefit which represented approximately 4% of the conservative
strategy pool's investments and approximately 1% of the Master Trust
investments. At December 31, 1995, this investment is carried at contract
value of $36.5 million in the Master Trust. On July 15, 1991, the Board of
Directors of Mutual Benefit asked the New Jersey Department of Insurance to
place Mutual Benefit into rehabilitation. On January 15, 1993, Mutual
Benefit filed its First Amended Plan of Rehabilitation which was approved by
the Superior Court of New Jersey effective May 2, 1994. GTE participated in
the plan and received a new contract which preserves principal and extends
maturities, with minimum interest and premium payments over the
rehabilitation period. During 1995, the contract was credited with interest
at 3.55%. In each subsequent year, the contract balance will earn an annual
rate of interest that can be adjusted each year, or more often under certain
circumstances, and will be determined by a formula based on the investment
performance of the assets which support the GTE contract. There is
currently a reserve of $900,000 pending final resolution of the
rehabilitation.
At December 31, 1995, the income pool had three investment contracts
with Confederation, which represented approximately 2% of the conservative
strategy pool's investments and is less than 1% of the Master Trust
investments. On August 11, 1994, Confederation was seized by Canada's
Office of the Superintendent of Financial Institutions. At December 31,
1995, the workout of the appropriation of assets had not been completed.
The investments are carried at contract value of $14.9 million in the Master
Trust.
The following schedules reflect Master Trust net investments by fund
as of December 31, 1995 and 1994 and net investment income for the year
ended December 31, 1995.
GTE CORPORATION
GTE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - (Continued)
December 31,
Investments in Master Trust: 1995 1994
(thousands of dollars)
Fidelity funds:
Equity - Income Fund $ 212,302 $ 152,380
Overseas Fund 104,147 117,757
U.S. Equity Index Collective Trust Fund 164,358 112,306
Retirement Government Money Market Portfolio 107,307 78,287
Magellan Fund 464,931 307,397
Broad Market Duration Collective Trust 1,034 779
Conservative Strategy Portfolio 494,246 515,488
Conservative Growth Strategy Portfolio 250,779 221,646
Moderate Growth Strategy Portfolio 335,534 257,401
Long-Term Growth Strategy Portfolio 265,100 204,259
Other funds:
GTE Stock Portfolio 1,655,820 1,196,697
ESOP Shares Fund Allocated 240,375 138,199
ESOP Shares Fund Unallocated 781,322 586,450
Loan Fund 169,028 176,034
Income Portfolio 8,605 8,351
Total $5,254,888 $4,073,431
Year Ended December 31, 1995
Dividends Net Investment
& Interest Gain
Investment Income in Master Trust: (thousands of dollars)
Fidelity funds:
Equity - Income Fund $12,068 $ 36,722
Overseas Fund 2,398 6,300
U.S. Equity Index Collective Trust Fund - 42,519
Retirement Government Money Market Portfolio 5,262 -
Magellan Fund 26,621 86,549
Broad Market Duration Collective Trust - 145
Conservative Strategy Portfolio - 40,747
Conservative Growth Strategy Portfolio - 34,052
Moderate Growth Strategy Portfolio - 59,439
Long-Term Growth Strategy Portfolio - 48,061
Other funds:
GTE Stock Portfolio 72,189 513,120
ESOP Shares Fund Allocated 10,304 70,602
ESOP Shares Fund Unallocated 34,932 244,258
Loan Fund 10,885 -
Income Portfolio - 593
Total $174,659 $1,183,107
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Savings Plan Committee has duly caused this annual report to be signed
by the undersigned thereunto duly authorized.
GTE SAVINGS PLAN
(Name of Plan)
Date June 26, 1996 By Lawrence R. Whitman
(Lawrence R. Whitman)
Vice President and Controller
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation of our report included in this Form 11-K into GTE
Corporation's previously filed Registration Statement on Form S-8
(File No. 33-20178).
ARTHUR ANDERSEN LLP
Stamford, Connecticut,
June 26, 1996
