Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
(Mark one)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-3435
NEW YORK TELEPHONE COMPANY
Incorporated under the laws of the State of New York
I.R.S. Employer Identification Number 13-5275510
1095 Avenue of the Americas, New York, New York 10036
Telephone Number (212) 395-2121
THE REGISTRANT, A WHOLLY OWNED SUBSIDIARY OF NYNEX CORPORATION, MEETS THE
CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND
IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT PURSUANT TO
GENERAL INSTRUCTION H(2).
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X . No .
<PAGE>
PAGE 2
Form 10-Q Part I New York Telephone Company
PART I - FINANCIAL INFORMATION
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(In Millions) (Unaudited)
<CAPTION>
For The Three Months Ended
March 31,
1994 1993
<S> <C> <C>
OPERATING REVENUES
Local service. . . . . . . . . . . . . . . . . $1,168.2 $1,147.7
Long distance. . . . . . . . . . . . . . . . . 88.3 93.5
Network access . . . . . . . . . . . . . . . . 567.6 558.1
Other. . . . . . . . . . . . . . . . . . . . . 95.4 146.6
Total operating revenues. . . . . . . . . . 1,919.5 1,945.9
OPERATING EXPENSES
Maintenance and support. . . . . . . . . . . . 628.0 556.3
Depreciation and amortization. . . . . . . . . 367.2 358.1
Marketing and customer services. . . . . . . . 249.7 230.5
Taxes other than income taxes. . . . . . . . . 200.0 219.2
Provision for uncollectibles . . . . . . . . . 21.2 15.0
Other. . . . . . . . . . . . . . . . . . . . . 147.6 211.6
Total operating expenses. . . . . . . . . . 1,613.7 1,590.7
Operating income . . . . . . . . . . . . . . . . 305.8 355.2
Other income - net . . . . . . . . . . . . . . . 3.3 19.7
Interest expense . . . . . . . . . . . . . . . . 74.7 88.6
Earnings before Income taxes and
cumulative effect of change in
accounting principle. . . . . . . . . . . . . 234.4 286.3
Income taxes . . . . . . . . . . . . . . . . . . 72.2 81.0
Earnings before cumulative effect of change
in accounting principle . . . . . . . . . . . 162.2 205.3
Cumulative effect of change in accounting
for postemployment benefits, net of
taxes . . . . . . . . . . . . . . . . . . . . - (90.8)*
NET INCOME . . . . . . . . . . . . . . . . . . . $ 162.2 $ 114.5 *
Retained Earnings
Beginning of period. . . . . . . . . . . . . . . $1,082.0 $1,813.6
Net income. . . . . . . . . . . . . . . . . 162.2 114.5 *
Dividends . . . . . . . . . . . . . . . . . (181.3) (181.0)
End of period. . . . . . . . . . . . . . . . . . $1,062.9 $1,747.1 *
* Restated to reflect the adoption of Statement of Financial Accounting
Standards No. 112 in the fourth quarter of 1993 retroactive to
January 1, 1993.
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
PAGE 3
Form 10-Q Part I New York Telephone Company
<TABLE>
CONSOLIDATED BALANCE SHEETS
(In Millions)
<CAPTION>
March 31, December 31,
1994 1993
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash and temporary cash investments. . . . . $ 32.5 $ 7.5
Receivables (net of allowance of $131.8
and $134.8, respectively). . . . . . . . . 1,368.3 1,427.5
Deferred charges . . . . . . . . . . . . . . 85.0 55.5
Deferred income taxes. . . . . . . . . . . . 32.2 99.4
Inventory. . . . . . . . . . . . . . . . . . 69.0 72.4
Prepaid expenses and other . . . . . . . . . 141.5 102.9
Total current assets . . . . . . . . . . . 1,728.5 1,765.2
Telephone plant - at cost. . . . . . . . . . . 19,889.2 19,696.5
Less: accumulated depreciation. . . . . . . 7,847.5 7,580.5
12,041.7 12,116.0
Deferred charges and other . . . . . . . . . . 1,549.7 1,554.2
Total Assets . . . . . . . . . . . . . . . . $15,319.9 $15,435.4
LIABILITIES AND SHARE OWNER'S EQUITY
Current liabilities:
Accounts payable . . . . . . . . . . . . . . $ 1,606.9 $ 1,744.7
Short-term debt. . . . . . . . . . . . . . . 254.1 255.7
Dividends payable. . . . . . . . . . . . . . 181.2 181.0
Taxes accrued. . . . . . . . . . . . . . . . 166.6 48.3
Advance billing and customers' deposits. . . 185.3 187.2
Interest accrued . . . . . . . . . . . . . . 64.0 58.2
Total current liabilities. . . . . . . . . 2,458.1 2,475.1
Long-term debt . . . . . . . . . . . . . . . . 3,976.2 3,972.1
Deferred income taxes. . . . . . . . . . . . . 1,719.7 1,826.9
Unamortized investment tax credits . . . . . . 236.9 244.9
Other long-term liabilities and deferred
credits. . . . . . . . . . . . . . . . . . . 1,762.9 1,731.2
Total liabilities. . . . . . . . . . . . . 10,153.8 10,250.2
Commitments and contingencies (Notes (d)
and (e))
Share owner's equity:
Common stock - one share, without par value. 4,103.2 4,103.2
Retained earnings. . . . . . . . . . . . . . 1,062.9 1,082.0
Total share owner's equity . . . . . . . . 5,166.1 5,185.2
Total Liabilities and Share Owner's Equity . $15,319.9 $15,435.4
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
PAGE 4
Form 10-Q Part I New York Telephone Company
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions) (Unaudited)
<CAPTION>
For The Three Months Ended
March 31,
1994 1993
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income. . . . . . . . . . . . . . . . . . $ 162.2 $ 114.5 *
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization . . . . . . . . 367.2 358.1
Allowance for funds used during
construction - equity component . . . . . . (4.7) (5.9)
Change in operating assets and liabilities:
Receivables . . . . . . . . . . . . . . . . 59.2 43.7
Current Deferred charges, Inventory and
Prepaid expenses and other. . . . . . . . 2.5 (164.1)
Accounts payable, Taxes Accrued, Deferred
income taxes Advance billing and
customers' deposits and Interest accrued. (15.6) (75.9)*
Deferred income taxes and Unamortized
investment tax credits. . . . . . . . . . . (115.2) 64.4 *
Other long-term liabilities and
deferred credits. . . . . . . . . . . . . . 31.7 81.5 *
Other - net . . . . . . . . . . . . . . . . . (16.5) 13.7
Total adjustments . . . . . . . . . . . . . . 308.6 315.5
Net cash provided by operating
activities. . . . . . . . . . . . . . . . . 470.8 430.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures. . . . . . . . . . . . (266.7) (238.2)
Advances from NYNEX . . . . . . . . . . . . - (198.2)
Net cash used in investing activities . . . (266.7) (436.4)
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from NYNEX . . . . . . . . . . . . (590.2) (113.2)
Dividends paid to NYNEX . . . . . . . . . . (181.0) (174.9)
Issuance of long-term debt. . . . . . . . . 593.5 295.9
Repayment of long-term debt and
capital leases. . . . . . . . . . . . . . (1.4) (1.3)
Net cash (used) provided by financing
activities. . . . . . . . . . . . . . . . . (179.1) 6.5
Net increase in Cash and
temporary cash investments. . . . . . . . . 25.0 .3
Cash and temporary cash investments at
beginning of period . . . . . . . . . . . . 7.5 24.7
Cash and temporary cash investments at
end of period . . . . . . . . . . . . . . . $ 32.5 $ 25.0
* Restated to reflect the adoption of Statement of Financial Accounting
Standards No. 112 in the fourth quarter of 1993 retroactive to
January 1, 1993.
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
PAGE 5
Form 10-Q Part I New York Telephone Company
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(a) BASIS OF PRESENTATION - The consolidated financial statements have been
prepared by New York Telephone Company (the "Company"), a wholly owned
subsidiary of NYNEX Corporation ("NYNEX"), pursuant to the rules and
regulations of the Securities and Exchange Commission (the "SEC") and, in the
opinion of management, include all adjustments (consisting only of normal
recurring adjustments) necessary for a fair presentation of the financial
information for each period shown. Certain information and footnote
disclosures normally included in consolidated financial statements prepared
in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such SEC rules and regulations. Management
believes that the disclosures made are adequate to make the information
presented not misleading. Certain information in the consolidated financial
statements for 1993 has been reclassified to conform to the current year's
presentation. The results for interim periods are not necessarily indicative
of the results for the full year. These consolidated financial statements
should be read in conjunction with the consolidated financial statements and
notes thereto included in the Company's 1993 Annual Report on Form 10-K.
(b) CASH AND TEMPORARY CASH INVESTMENTS - The Company's cash management
policy is to make funds available in banks when checks are presented. At
March 31, 1994, the Company had recorded in Accounts payable checks
outstanding but not yet presented for payment of $74.4 million.
(c) SUPPLEMENTAL INFORMATION - The following information is provided in
accordance with Statement of Financial Accounting Standards No. 95,
"Statement of Cash Flows":
<TABLE>
<CAPTION>
For the
Three Months Ended
March 31,
1994 1993
(in millions)
<S> <C> <C>
Income tax (refunds) payments ................ $(40.4) $99.7
Interest payments ............................ $ 62.8 $55.0
</TABLE>
(d) REVENUES SUBJECT TO POSSIBLE REFUND - Several state and federal
regulatory matters may possibly require the refund of a portion of the
revenues collected in the current and prior periods, including affiliate
transactions issues in the Company's 1990 intrastate rate case and
overearnings complaints by interstate access customers. As of March 31,
1994, the aggregate amount of such revenues that was estimated to be subject
to possible refund was approximately $175 million, plus related interest.
The outcome of each pending matter, as well as the time frame within which
each will be resolved, is not presently determinable.
<PAGE>
PAGE 6
Form 10-Q Part I New York Telephone Company
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
(e) LITIGATION AND OTHER CONTINGENCIES - It is probable that various state
and local tax claims aggregating approximately $305 million in tax and
associated interest will be asserted against the Company for the period 1983
through the first quarter of 1994. While the Company's counsel cannot give
assurance as to the outcome, counsel believes that the Company has strong
legal positions in these matters.
Various other legal actions and regulatory proceedings are pending that may
affect the Company, including matters involving Racketeer Influenced and
Corrupt Organizations Act, antitrust, tort, contract and tax deficiency
claims. While counsel cannot give assurance as to the outcome of any of
these matters, in the opinion of Management based on the advice of counsel,
the ultimate resolution of these matters in future periods is not expected to
have a material effect on the Company's financial position or annual
operating results but could have a material effect on quarterly operating
results.
<PAGE>
PAGE 7
Form 10-Q Part I New York Telephone Company
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
The following Management's Narrative Analysis of Results of Operations is
provided pursuant to General Instruction H(2) to Form 10-Q.
STATE REGULATORY MATTERS
As previously reported (see the Company's Annual Report on Form 10-K for the
year ended December 31, 1993), in the first phase of the incentive regulation
proceeding, the New York State Public Service Commission ("NYSPSC") issued
Orders on December 24, 1993 and January 28, 1994 for a reduction in the
Company's rates of $170 million annually, effective January 1, 1994, and
required that an additional $153.3 million of current revenues be made
available "for the ultimate benefit of customers and the Company's
competitive position through earnings incentives for short-term service
improvements and a longer term plan for performance-based earning incentives
and network improvements." That incentive regulatory plan will be pursued in
a second phase of the proceeding during 1994. The Company has set aside
$31 million of the $153.3 million as ordered by the NYSPSC, as an incentive
to improve overall service quality in the Brooklyn-Queens-Bronx service area.
BUSINESS RESTRUCTURING
As previously reported (see the Company's Annual Report on Form 10-K for the
year ended December 31, 1993), the Company recorded pretax charges of
approximately $992 million in the fourth quarter of 1993 for business
restructuring, including costs for severance and postretirement medical costs
and for re-engineering the way service is delivered to customers. In the first
quarter of 1994, the Company utilized approximately $9 million of the
restructuring reserves, primarily for developing and marketing a single "NYNEX"
brand identity and for systems re-engineering.
In February of 1994, the Board of Directors of NYNEX Corporation approved a
pension enhancement for eligible management employees who retire through
December 31, 1996. This enhancement will be offered at different times
through 1996 according to local force requirements. The Company has reached
an agreement with the Communications Workers of America and with the
International Brotherhood of Electrical Workers ("IBEW") in New York which
extends the existing labor agreements to August 1998 and provides a retirement
incentive. The management and nonmanagement retirement incentives are
intended to provide a voluntary means to implement a portion of the planned
work force reductions of approximately 9,000 employees by the end of 1996.
There were no significant cost savings as a result of business restructuring
in the first quarter of 1994. Force reductions will begin in the second
quarter of 1994 as re-engineering initiatives are implemented and as retirement
incentives are offered to eligible employees.
<PAGE>
PAGE 8
Form 10-Q Part I New York Telephone Company
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
FIRST THREE MONTHS OF 1994 AS COMPARED TO FIRST THREE MONTHS OF 1993
<TABLE>
OPERATING REVENUES
Operating revenues for the three months ended March 31, 1994 decreased
$26.4 million, or 1.4%, from the same period last year. This decrease in
total operating revenues is comprised of the following:
<CAPTION>
Increase (Decrease)
(Dollars in Millions)
<S> <C>
Local service. . . . . . . . . . $ 20.5
Long distance. . . . . . . . . . (5.2)
Network access . . . . . . . . . 9.5
Other. . . . . . . . . . . . . . (51.2)
$(26.4)
</TABLE>
Local service revenues are earned from the provision of local exchange, local
private line and local public network services. The increase in Local
service revenues was primarily due to a net $49 million increase attributable
to increased demand as evidenced by growth in access lines, growth in sales
of calling features such as call waiting, remote call forwarding and
touch-tone services, and higher usage associated with the severe winter
storms. In addition, there was a $5 million increase due to a 1993 reduction
in revenues associated with the reversal of a 1990 deferral of private line
revenues. These increases were partially offset by a $33 million revenue
reduction pursuant to an NYSPSC order (see STATE REGULATORY MATTERS above).
Long distance revenues are earned from the provision of services beyond the
local service area, but within the local access and transport area ("LATA"),
and include public and private network switching. The decrease in Long
distance revenues was primarily attributable to a $3 million revenue
reduction pursuant to an NYSPSC order (see STATE REGULATORY MATTERS above)
and a decrease in demand for private line and wide area telecommunications
services as a result of increased competition and customer shifts to lower
priced services offered by the Company.
Network access revenues are earned from the provision of exchange access
services primarily to interexchange carriers. Switched access revenues are
charges to telecommunication carriers for access to the Company's local
exchange facilities. Switched access revenues increased a net $16 million
principally due to increased usage, partially offset by a reduction in
interstate rates which included the phase-out of the equal access cost
recovery charge and a $3 million revenue reduction pursuant to an NYSPSC
order (see STATE REGULATORY MATTERS above). Special access revenues are
charges for dedicated lines that connect terminal locations of interexchange
carriers and end users. Special access revenues decreased $7 million
primarily due to a reduction in interstate rates, increased competition and
customer shifts to lower priced Company services.
<PAGE>
PAGE 9
Form 10-Q Part I New York Telephone Company
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
FIRST THREE MONTHS OF 1994 AS COMPARED TO FIRST THREE MONTHS OF 1993
(Continued)
Other revenues are earned from the provision of products and services other
than Local service, Long distance and Network access. The decrease in Other
revenues was due principally to a $38 million reduction in revenues
representing the first quarter deferral of the $153.3 million to be set aside
as ordered by the NYSPSC (see STATE REGULATORY MATTERS above) and a
$24 million decrease in revenues attributable to the 1993 reversal of
previously recorded reductions in revenues in connection with the phase-out
of ad valorem taxes on central office equipment. Partially offsetting these
decreases was a $10 million increase due to the 1993 reversal of a 1992
deferral of revenues for concession service.
<TABLE>
OPERATING EXPENSES
Operating expenses for the three months ended March 31, 1994 increased
$23.0 million, or 1.5%, over the same period last year. This increase in
total operating expenses is comprised of the following:
<CAPTION>
Increase (Decrease)
(Dollars in Millions)
<S> <C>
Depreciation and amortization . $ 9.1
Taxes other than income taxes . (19.2)
All other:
Employee related . . . . . . 24.2
Other. . . . . . . . . . . . 8.9
$23.0
</TABLE>
Depreciation and amortization increased principally due to an increase in
plant investment.
Taxes other than income taxes decreased from the same period last year
principally due to a $23 million decrease in property taxes resulting
primarily from lower assessments of property value.
Employee related costs consist primarily of wages, payroll taxes, and
employee benefits. Wages and payroll taxes increased $16 million principally
due to increases in salary and wage rates and additional labor costs due to
initiatives to improve service quality, partially offset by decreases
resulting from reductions in the Company's work force due to the transfer of
employees to Telesector Resources Group, Inc. ("TRG") associated with
re-engineering the way service is delivered to customers, including operating
the Company and New England Telephone and Telegraph Company ("New England
Telephone") as a single enterprise under the "NYNEX" brand (see Other
operating expenses below). Benefit expenses increased $8 million primarily
due to higher costs of providing medical coverage for active and retired
employees.
<APGE>
PAGE 10
Form 10-Q Part I New York Telephone Company
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
FIRST THREE MONTHS OF 1994 AS COMPARED TO FIRST THREE MONTHS OF 1993
(Continued)
Other operating expenses consist primarily of contracted and centralized
services, rent and other general and administrative costs. The increase in
other operating expenses was due principally to a $20 million net increase in
charges from affiliated companies primarily attributable to the transfer of
employees from the Company to TRG (see Employee related costs above), a
$7 million increase in bad debt expense recognized pursuant to provisions of
the billing and collection contract with AT&T, and a $6 million increase in
the Provision for uncollectibles. Partially offsetting these increases were a
$9 million decrease attributable to the reversal in 1993 of deferred inside
wire expense recorded in 1991 and 1992, a $7 million decrease due to the
completion of equal access amortization in 1993, and a $5 million decrease in
expenses relating to intra-LATA toll calling in upstate New York.
OTHER INCOME - NET
Other income - net for the three months ended March 31, 1994 decreased
$16.4 million from the same period last year. This decrease was primarily
attributable to the termination in 1994 of payments from New England
Telephone pursuant to the transition plan to phase in the earnings impact of
the unified tariff access rate structure. This decrease was partially offset
by an increase due to higher expenses in the first three months of 1993 for
the interstate portion of call premiums and other charges associated with the
refinancing of long-term debt.
INTEREST EXPENSE
Interest expense for the three months ended March 31, 1994 decreased
$13.9 million from the same period last year. This decrease was due
primarily to lower average interest rates resulting from long-term debt
refinancings during 1993.
INCOME TAXES
Income taxes for the three months ended March 31, 1994 decreased $8.8 million
from the same period last year. This decrease was due principally to a
decrease in taxable income, partially offset by an increase in tax expense
associated with the enactment of the Revenue Reconciliation Act of 1993 on
August 10, 1993, which increased the statutory corporate federal income tax
rate from 34 percent to 35 percent retroactive to January 1, 1993.
<PAGE>
PAGE 11
Form 10-Q Part I New York Telephone Company
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
FIRST THREE MONTHS OF 1994 AS COMPARED TO FIRST THREE MONTHS OF 1993
(Continued)
FINANCING
On February 28, 1994, the Company issued $450 million of its Thirty Year
7 1/4% Debentures, due February 15, 2024, and $150 million of its Ten Year
6 1/4% Notes, due February 15, 2004. The net proceeds were used to repay
short-term advances from NYNEX. At March 31, 1994, the Company had
$250 million of unissued, unsecured debt securities registered with the SEC.
Pursuant to the indentures for certain of its debentures, the Company has
covenanted that it will not issue additional funded debt securities ranking
equally with or prior to such debentures unless it has maintained an earnings
coverage of 1.75 for interest charges for a period of any 12 consecutive
months out of the 15 month period prior to the date of the proposed
issuance. As a result of the 1993 business restructuring charges, the
Company does not currently meet the earnings coverage requirement.
<PAGE>
PAGE 12
Form 10-Q Part II New York Telephone Company
PART II - OTHER INFORMATION
Item 5. Other Information
Federal Regulatory Matters
On April 1, 1994, New York Telephone Company (the "Company") filed
tariffs to implement the fourth annual update to the price cap
rates. These tariffs, as amended, will result in a net reduction
in the Company's annual interstate access rates of approximately
$10.1 million during the tariff period from July 1, 1994 to
June 30, 1995.
State Regulatory Matters
As previously reported (see the Company's Annual Report on
Form 10-K for the year ended December 31, 1993), the New York State
Public Service Commission ("NYSPSC") has issued an Opinion and
Order which would require the Company to provide IntraLATA
Presubscription ("ILP") within 18 months of a bona fide request
from a carrier. On April 4, 1994, the NYSPSC issued an opinion
which confirmed the 18 month requirement, provided that
Interexchange Carriers should pay the costs of ILP implementation,
and ruled that the Company should be compensated for contribution
losses resulting from ILP. In its decision, the NYSPSC suggested
that certain issues relating to ILP would be made the subject of
negotiations and a "collaborative effort" between the parties to
the incentive regulation proceeding.
See, also, discussion of STATE REGULATORY MATTERS in Part I,
Management's Discussion and Analysis of Results of Operations.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit
Number
(12) Computation of Ratio of Earnings to Fixed Charges
(b) Reports on Form 8-K
The Company's Current Report on Form 8-K, date of report
December 24, 1993 and filed January 13, 1994, reporting on Item 5.
<PAGE>
PAGE 13
Form 10-Q Part II New York Telephone Company
Item 6. Exhibits and Reports on Form 8-K (Continued)
The Company's Current Report on Form 8-K, date of report
January 24, 1994 and filed February 11, 1994, reporting on Item 5.
The Company's Current Report on Form 8-K, date of report
February 18, 1994 and filed February 18, 1994, reporting on Item 7.
The Company's Current Report on Form 8-K, date of report
February 18, 1994 and filed February 18, 1994, reporting on Item 7.
The Company's Current Report on Form 8-K, date of report
February 17, 1994 and filed February 25, 1994, reporting on Item 5.
<PAGE>
PAGE 14
Form 10-Q New York Telephone Company
SIGNATURE
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, thereunto duly authorized.
New York Telephone Company
Mel Meskin
Mel Meskin
Vice President - Finance and Treasurer
(Principal Financial and Chief Accounting
Officer)
May 11, 1994
<TABLE>
PAGE 1
EXHIBIT 12
New York Telephone Company
Computation of Ratio of Earnings to Fixed Charges
(Dollars in Millions)
<CAPTION>
For The
Three Months
Ended
March 31, For The Year Ended December 31,
1994 1993 1992 1991 1990 1989
(Unaudited) Earnings
<S> <C> <C> <C> <C> <C> <C>
Earnings before Interest Expense and
Cumulative Effect of Change in
Accounting Principle . . . . . . . . $236.9 $430.2 $1,219.3 $ 911.0 $1,094.9 $ 871.4
Income Taxes. . . . . . . . . . . . . 72.2 (67.8) 342.8 157.2 261.2 96.1
Estimated Interest Portion of
Rental Expense . . . . . . . . . . . 9.3 36.3 38.8 37.9 39.1 34.3
Total Earnings $318.4 $398.7 $1,600.9 $1,106.1 $1,395.2 $1,001.8
Fixed Charges
Interest Expense. . . . . . . . . . . $ 74.7 $348.6 $ 362.9 $ 375.1 $ 357.0 $ 374.2
Estimated Interest Portion of
Rental Expense. . . . . . . . . . . 9.3 36.3 38.8 37.9 39.1 34.3
Total Fixed Charges $ 84.0 $384.9 $ 401.7 $ 413.0 $ 396.1 $ 408.5
Ratio of Earnings to Fixed Charges . . . 3.79 1.04 3.98 2.68 3.52 2.45
</TABLE>
PAGE 1
<TABLE>
NEW YORK TELEPHONE COMPANY
DATA STATED IN MILLIONS (Unaudited)
VOLUNTARY SCHEDULE - CERTAIN FINANCIAL INFORMATION
<CAPTION>
First Qtr. First Qtr. YTD YTD
Regulation Statement Caption 1994 1993 1994 1993
<S> <C> <C> <C> <C> <C>
5-02 (1) Cash and temporary cash investments $ 32.5 $ 25.0
5-02 (9) Total current assets 1,728.5 2,029.3
5-02 (18) Total Assets 15,319.9 15,795.2
5-02 (21) Total current liabilities 2,458.1 2,377.3
5-02 (22) Long-term debt 3,976.2 3,983.7
5-02 (30) Common stock 4,103.2 4,101.9
5-03 (b)(10) Earnings before income taxes and
cumulative effect of change in
accounting principle 234.4 286.3
5-03 (b)11 Income taxes 72.2 81.0 $ 72.2 $ 81.0
5-03 (b)(16) Earnings before cumulative effect
of change in accounting principle 162.2 205.3 162.2 205.3
5-03 (b)(18) Cumulative effect of change in
accounting for postemployment
benefits, net of taxes - (90.8)* - (90.8)*
5-03 (b)(19) Net income 162.2 114.5 * 162.2 114.5 *
* Restated to reflect the adoption of Statement of Financial Accounting Standards No. 112 in the fourth quarter
of 1993 retroactive to January 1, 1993.
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