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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Form 10-Q/A
Amendment to Report
Filed pursuant to Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934
Illinois Bell Telephone Company
Amendment No.1
The undersigned registrant hereby amends its Quarterly
Report on Form 10-Q for the quarter ended March 31, 1996 by
revising the information on page 11 and on Exhibit 12 as
indicated on the following pages.
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this amendment to be
signed on its behalf by the undersigned, thereunto duly
authorized.
Illinois Bell Telephone Company
Date: May 13, 1996
By /s/ Laurie S. Streling
Comptroller
State Finance Organization
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Management's Discussion and Analysis
of Results of Operations (cont'd.)
Other income, net
- -----------------
Change
March 31 (Income) Percent
----------
(dollars in millions) 1996 1995 (Decrease) Change
------------------- ---- ---- -------- ------
Three Months Ended $ (3.5) $ 0.1 $ (3.6) n/a
Other income, net includes equity earnings in affiliates, interest
income and other nonoperating items. The increase in other income,
net for the three months ended March 31, 1996 was due to increased
equity earnings from ASI, as well as a decrease in miscellaneous
nonoperating expenses.
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Income taxes
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March 31 Increase Percent
----------
(dollars in millions) 1996 1995 (Decrease) Change
------------------- ---- ---- -------- ------
Three Months Ended $ 84.9 $ 100.8 $ (15.9) (15.8)
The decrease in income taxes in the three months ended March 31, 1996
as compared with the prior year period was primarily attributable to
the decrease in pretax earnings, related to the revenue and expense
items previously discussed.
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Ratio of earnings to fixed charges
- ----------------------------------
The ratio of earnings to fixed charges for the three months ended
March 31 was 7.93 in 1996 and 9.91 in 1995. The ratio in 1995 was
favorably affected by a credit of $76.9 million for work force
restructuring (see prior discussion of this item). The work force
restructuring program was largely funded by the Ameritech Pension
Plan.
The computations of the ratio of earnings to fixed charges for the
five years ended December 31, 1995 have been restated. The ratio, as
adjusted, for the years ended December 31, 1995, 1994, 1993, 1992 and
1991 was 7.99, 5.45, 5.82, 5.68 and 4.61, respectively. The impact of
the restatement was not significant and was made to be consistent with
unregulated enterprises.
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EXHIBIT 12
ILLINOIS BELL TELEPHONE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
Three Months Ended
March 31
-------------
1996 1995
---- ----
1. EARNINGS
a) Income before interest expense,
income taxes and undistributed
equity earnings (2).......... $ 252.0 $ 308.2
b) Portion of rental expense
representative of the
interest factor (1)................. 3.2 2.0
-------- --------
Total 1(a) through 1(b)................. $ 255.2 $ 310.2
-------- --------
2. FIXED CHARGES
a) Total interest expense including
capital lease obligations........... $ 28.1 $ 28.7
b) Capitalized interest................. 0.9 0.6
c) Portion of rental expense
representative of the
interest factor (1)................. 3.2 2.0
-------- --------
Total 2(a) through 2(c)................. $ 32.2 $ 31.3
-------- --------
3. RATIO OF EARNINGS TO FIXED CHARGES....... 7.93 9.91
==== ====
(1) One-third of rental expense is considered to be the amount
representing return on capital.
(2) The results for the first three months of 1995 reflect a $76.9
million pretax credit primarily from settlement gains resulting
from lump-sum pension payments from the pension plan to former
employees who left the business in the nonmanagement work force
restructuring.
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EXHIBIT 12
ILLINOIS BELL TELEPHONE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
1. EARNINGS
a) Income before interest expense, income
tax, extraordinary charge, cumulative
effect of change in accounting
principles and undistributed
equity earnings (2)........... $1,027.4 $ 633.3 $ 750.1 $ 705.9 $ 644.8
b) Portion of rental expense representative
of the interest factor (1).... 9.9 8.8 10.8 12.3 10.8
-------- ------- ------- ------- -------
Total 1(a) through 1(b)... $1,037.3 $ 642.1 $ 760.9 $ 718.2 $ 655.6
======== ======= ======= ======= =======
2. FIXED CHARGES
a) Total interest expense including capital
lease obligations............. $ 117.2 $ 105.7 $ 117.5 $ 112.9 $ 127.0
b) Capitalized interest........... 2.8 3.3 2.4 1.2 4.5
c) Portion of rental expense representative
of the interest factor (1).... 9.9 8.8 10.8 12.3 10.8
------- ------- ------- ------- -------
Total 2(a) through 2(c)... $ 129.9 $ 117.8 $ 130.7 $ 126.4 $ 142.3
======== ======= ======= ======= =======
3. RATIO OF EARNINGS TO FIXED CHARGES 7.99 5.45 5.82 5.68 4.61
======== ======= ======= ======= =======
(1) One-third of rental expense is considered to be the amount
representing return on capital.
(2) The results for 1995 reflect a $57.1 pretax credit primarily from
settlement gains resulting from lump sum pension payments from the
pension plan to former employees who left the business in the
nonmanagement work force restructuring, partially offset by increased
force costs related to the restructuring started in 1994, as well as a
write-down of certain data processing equipment to net realizable
value. Results for 1994 reflect a $196.5 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.
