SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): January 24, 1994
NEW ENGLAND TELEPHONE AND TELEGRAPH COMPANY
A New York Commission File I.R.S. Employer Identification
Corporation Number 1-1150 No. 04-1664340
125 High Street, Boston, Massachusetts 02110
Telephone number (617) 743-9800
<PAGE>
- 2 -
Form 8-K New England Telephone and Telegraph Company
January 24, 1994
ITEM 5. Other Events.
New England Telephone and Telegraph Company (the "Company") had net
income of $81.3 million in 1993, compared with net income of
$486.6 million for 1992. The 1993 results include after-tax charges
of $414.0 million. The principal componets of these charges were:
$291 million for business restructuring, primarily related to
efforts to redesign operations to improve efficiency and customer
service, including consolidation of work locations and lease
terminations, retraining employees, relocation expenses,
systems re-engineering, and other incremental costs associated
with work force reductions, including $240 million after-tax for
severance and post-retirement medical costs for employees leaving
the Company through 1996; approximately $85 million of after-tax
restructure costs were allocated to the Company from a wholly owned
subsidiary of the Company and New York Telephone Company, Telesector
Resources Group, Inc., primarily related to its restructuring;
and $25 million for the Company's adoption of Statement of
Financial Accounting Standards No. 112, "Employers' Accounting
for Postemployment Benefits", effective January 1, 1993.
The Company expects to reduce its work force by approximately
6,300 employees by the end of 1996.
Operating revenues were $4,070.2 million for 1993, up 3.8 percent
from $3,921.9 million for 1992. Operating expenses in 1993 were
$3,773.0 million. Excluding the effect of business restructuring
and other charges, operating expenses for 1993 were
$3,094.6 million, an increase of 2.8 percent from $3,009.2 million
in 1992.
There were 5,905,968 access lines in service at December 31, 1993,
an increase of 3.2 percent over the same period last year. The
ratio of earnings to fixed charges, which reflects the effect of the
restructuring charges, was 1.34 for the year ended December 31, 1993.
On February 17, 1994, the Board of Directors of NYNEX Corporation
approved a special pension enhancement to the NYNEX Management
Pension Plan. Eligible management employees who choose to retire
through December 31, 1996 will be credited with an additional six
years toward their age and six years toward their length of service
for the purpose of determining pension eligibility and benefits.
This enhancement, which will be offered at different times through
1996 according to local force requirements, is expected to help the
Company reduce the management portion of its work force. Any
additional charges related to the pension enhancement will be
recorded through 1996 as employees choose to retire under the plan.
<PAGE>
- 3 -
Form 8-K New England Telephone and Telegraph Company
January 24, 1994
SIGNATURES
Registrant
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.
New England Telephone and Telegraph Company
GAIL DEEGAN
GAIL DEEGAN
Vice President and Chief Financial Officer
March 1, 1994
