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 (Date of earliest event reported) September 28, 1995
GTE HAWAIIAN TELEPHONE COMPANY INCORPORATED
(Exact name of registrant as specified in its charter)
Hawaii 2-33059 99-0049500
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
600 Hidden Ridge, HQE04B12 - Irving, Texas 75038
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 214-718-5600
1177 Bishop Street, Honolulu, Hawaii 96813
(Former name or former address, if changed since last report)
GTE HAWAIIAN TELEPHONE COMPANY INCORPORATED
FORM 8-K
ITEM OF INFORMATION
Item 5. Other Events
GTE Hawaiian Telephone Company Incorporated follows the accounting for
regulated enterprises prescribed by Statement of Financial Accounting
Standards No. 71, "Accounting for the Effects of Certain Types of Regulation"
(FAS 71). In general, FAS 71 requires companies to depreciate plant and
equipment over lives approved by regulators which may extend beyond the
assets' actual economic life. FAS 71 also requires deferral of certain costs
based upon approvals received from regulators to recover such costs in the
future. Consequently, the carrying value of certain assets and liabilities,
primarily telephone plant and equipment, may be greater than that which would
otherwise be recorded by unregulated enterprises.
In connection with an ongoing review of the continued applicability of FAS 71,
the Company has commenced a study of the economic lives of its telephone plant
and equipment. The study is expected to be completed by the end of the fourth
quarter of 1995. If the Company were to discontinue the application of FAS 71
and compute the effect on its telephone plant in a manner similar to the seven
Regional Bell Operating Companies who discontinued FAS 71, the after-tax
charge resulting from the reduction in carrying value of the Company's
property, plant and equipment, which would be non-cash in nature, is estimated
to be between $100 million and $300 million. This potential accounting charge
would reduce telephone plant but would not have a significant effect on future
depreciation. In addition, this charge would have no effect on the Company's
customers or its liquidity and capital resources.
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 HAWAIIAN TELEPHONE COMPANY INCORPORATED
(Registrant)
Date: October 2, 1995 By WILLIAM M. EDWARDS, III
WILLIAM M. EDWARDS, III
Controller
(Chief Accounting Officer)