<PAGE>
COMMISSION FILE NO. 1-8606
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
AMENDMENT TO APPLICATION OR REPORT
FILED PURSUANT TO SECTION 12, 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934
BELL ATLANTIC CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Annual Report on Form 10-K for
the fiscal year ended December 31, 1994 as set forth in the pages attached
hereto:
Exhibit 99a Annual Report on Form 11-K for the Bell Atlantic Savings Plan
for Salaried Employees for the year ended December 31, 1994.
Exhibit 99b Annual Report on Form 11-K for the Bell Atlantic Savings and
Security Plan (Non-Salaried Employees) for the year ended
December 31, 1994.
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS DULY CAUSED THIS AMENDMENT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
Bell Atlantic Corporation
/s/ William O. Albertini
By___________________________________
WILLIAM O. ALBERTINI
(Executive Vice President andChief
Financial Officer)
April 28, 1995
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<PAGE>
COMMISSION FILE NO. 1-8606
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(MARK ONE)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER 1-8606
BELL ATLANTIC SAVINGS PLAN
FOR SALARIED EMPLOYEES
(FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF
THE ISSUER NAMED BELOW)
BELL ATLANTIC CORPORATION
1717 ARCH STREET
PHILADELPHIA, PENNSYLVANIA 19103
(NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF
ITS PRINCIPAL EXECUTIVE OFFICE)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
BELL ATLANTIC
SAVINGS PLAN FOR
SALARIED EMPLOYEES
FINANCIAL STATEMENTS
DECEMBER 31, 1994 AND 1993
<PAGE>
BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
INDEX TO FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
FINANCIAL STATEMENTS: PAGE(S)
- --------------------- -------
<S> <C>
Report of Independent Accountants............................... 2
Financial Statements:
Statements of Net Assets Available for Plan Benefits at Decem-
ber 31, 1994 and 1993........................................ 3-4
Statements of Changes in Net Assets Available for Plan Bene-
fits for the years ended December 31, 1994 and 1993.......... 5-6
Notes to Financial Statements................................. 7-12
Signature....................................................... 13
Bell Atlantic Master Savings Trust Schedule of Investments--De-
cember 31, 1994................................................ S1-S4
<CAPTION>
EXHIBIT: EXHIBIT NUMBER
- -------- --------------
<S> <C>
Consent of Independent Accountants.............................. 24
</TABLE>
1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
Vice President--Finance and Controller and Treasurer
Bell Atlantic Corporation:
We have audited the accompanying statements of net assets available for plan
benefits of the Bell Atlantic Savings Plan for Salaried Employees (the "Plan")
as of December 31, 1994 and 1993, and the related statements of changes in net
assets available for plan benefits for the years then ended, and the
accompanying schedule of investments of the Bell Atlantic Master Savings Trust
as of December 31, 1994. These financial statements and the accompanying
schedule are the responsibility of the Plan's management. Our responsibility is
to express an opinion on these financial statements and the accompanying
schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit 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 Plan
as of December 31, 1994 and 1993, and the changes in net assets available for
plan benefits for the years then ended, and the accompanying schedule of
investments of the Bell Atlantic Master Savings Trust (Pages S-1 to S-4) as of
December 31, 1994 presents fairly the information included therein, all in
conformity with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center Philadelphia, Pennsylvania April 19, 1995
2
<PAGE>
BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1994
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
U.S.
BOND INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY EQUITY UNALLOCATED
SHARES MONEY MARKET INCOME INDEX INDEX INDEX LOAN SHARES
FUND FUND FUND FUND FUND FUND FUND FUND TOTAL
ASSETS: ------------- ------------ -------- ------- ----------- ------------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Allocated share of
Master Trust net
investments (Note
4).................. $871,677 $89,543 $542,520 $33,279 $224,127 $55,484 $47,118 $ 319,580 $2,183,328
Allocations and
contributions
receivable.......... 2,214 92 500 52 294 194 -- -- 3,346
Fund, plan and other
transfers
receivable--net..... 3,437 -- 2,189 -- 160 638 252 -- 6,676
Prepaid expenses.... -- -- -- -- -- -- -- 792 792
-------- ------- -------- ------- -------- ------- ------- --------- ----------
Total Assets.... 877,328 89,635 545,209 33,331 224,581 56,316 47,370 320,372 2,194,142
-------- ------- -------- ------- -------- ------- ------- --------- ----------
LIABILITIES:
Notes payable (Note
5).................. -- -- -- -- -- -- -- 351,248 351,248
Interest payable.... -- -- -- -- -- -- -- 14,348 14,348
Fund, plan and other
transfers
payable--net........ -- 1,499 -- 1,068 -- -- -- -- 2,567
Administrative
expenses payable.... 431 118 575 57 242 28 -- 40 1,491
-------- ------- -------- ------- -------- ------- ------- --------- ----------
Total Liabili-
ties............ 431 1,617 575 1,125 242 28 -- 365,636 369,654
-------- ------- -------- ------- -------- ------- ------- --------- ----------
Net assets available
(deficit) for Plan
benefits (Note 3)... $876,897 $88,018 $544,634 $32,206 $224,339 $56,288 $47,370 $(45,264) $1,824,488
======== ======= ======== ======= ======== ======= ======= ========= ==========
</TABLE>
See notes to financial statements.
3
<PAGE>
BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1993
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
U.S.
BOND INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY EQUITY UNALLOCATED
SHARES MONEY MARKET INCOME INDEX INDEX INDEX LOAN SHARES
FUND FUND FUND FUND FUND FUND FUND FUND TOTAL
ASSETS: ------------- ------------ -------- ------- ----------- ------------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Allocated share of
Master Trust net
investments (Note
4).................. $969,074 $91,903 $531,875 $37,838 $226,146 $34,576 $45,769 $434,468 $2,371,649
Allocations and
contributions
receivable.......... 3,938 20 174 23 99 105 -- -- 4,359
Fund, plan and other
transfers
receivable--net..... -- -- -- -- 170 2,419 402 -- 2,991
Prepaid expenses.... -- -- -- -- -- -- -- 951 951
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Total Assets.... 973,012 91,923 532,049 37,861 226,415 37,100 46,171 435,419 2,379,950
-------- ------- -------- ------- -------- ------- ------- -------- ----------
LIABILITIES:
Notes payable (Note
5).................. -- -- -- -- -- -- -- 389,606 389,606
Interest payable.... -- -- -- -- -- -- -- 15,752 15,752
Fund, plan and other
transfers
payable--net........ 1,038 2,943 1,803 223 -- -- -- -- 6,007
Administrative
expenses payable.... 44 53 284 38 142 7 -- -- 568
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Total Liabili-
ties............ 1,082 2,996 2,087 261 142 7 -- 405,358 411,933
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Net assets available
for Plan benefits
(Note 3)............ $971,930 $88,927 $529,962 $37,600 $226,273 $37,093 $46,171 $ 30,061 $1,968,017
======== ======= ======== ======= ======== ======= ======= ======== ==========
</TABLE>
See notes to financial statements.
4
<PAGE>
BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
U.S. BOND INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY UNALLOCATED
SHARES MONEY MARKET INCOME INDEX EQUITY INDEX LOAN SHARES
FUND FUND FUND FUND INDEX FUND FUND FUND FUND TOTAL
------------- ------------ -------- --------- ---------- ------------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets available
(deficit) for Plan
benefits, December
31, 1993............ $971,930 $88,927 $529,962 $37,600 $226,273 $37,093 $46,171 $ 30,061 $1,968,017
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Employee contribu-
tions............... 34,607 4,294 24,551 2,843 17,119 5,847 -- -- 89,261
Employing company
contributions and
allocations......... 2,744 -- -- -- -- -- -- 46,068 48,812
Transfer of ESOP
Shares and
participants'
balances--net....... 32,882 (1,765) (1,764) (5,066) (2,066) 14,311 (157) (35,582) 793
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Total alloca-
tions,
contributions
and transfers... 70,233 2,529 22,787 (2,223) 15,053 20,158 (157) 10,486 138,866
Allocated share of
Master Trust net in-
vestment activities
(Note 4)............ (104,469) 3,670 33,650 (1,107) 779 3,011 3,466 (56,020) (117,020)
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Net additions... (34,236) 6,199 56,437 (3,330) 15,832 23,169 3,309 (45,534) 21,846
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Less: Distributions
to participants.... 60,046 6,986 41,234 2,020 17,528 3,917 2,110 0 133,841
Interest expense.. -- -- -- -- -- -- -- 29,531 29,531
Amortization of
capitalized ESOP
expenses.......... -- -- -- -- -- -- -- 158 158
Administrative
expenses.......... 751 122 531 44 238 57 -- 102 1,845
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Total deduc-
tions........... 60,797 7,108 41,765 2,064 17,766 3,974 2,110 29,791 165,375
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Net assets available
(deficit) for Plan
benefits, December
31, 1994
(Note 3)............ $876,897 $88,018 $544,634 $32,206 $224,339 $56,288 $47,370 $(45,264) $1,824,488
======== ======= ======== ======= ======== ======= ======= ======== ==========
</TABLE>
See notes to financial statements.
5
<PAGE>
BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
U.S. BOND INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY UNALLOCATED
SHARES MONEY MARKET INCOME INDEX EQUITY INDEX LOAN SHARES
FUND FUND FUND FUND INDEX FUND FUND FUND FUND TOTAL
------------- ------------ -------- --------- ---------- ------------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets available
(deficit) for Plan
benefits,
December 31, 1992 as
previously reported. $782,501 $98,780 $509,345 $32,196 $196,912 $11,390 $35,203 $(14,163) $1,652,164
Cumulative effect of
accounting change
(Note 2)............ 31,323 3,639 15,789 1,170 6,319 282 1,343 -- 59,865
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Net assets available
(deficit) for Plan
benefits,
January 1, 1993..... 813,824 102,419 525,134 33,366 203,231 11,672 36,546 (14,163) 1,712,029
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Employee contribu-
tions............... 35,478 4,685 26,263 2,789 17,137 2,981 -- -- 89,333
Employing company
contributions and
allocations......... 3,581 -- -- -- -- -- -- 40,014 43,595
Transfer of ESOP
Shares and
participants' bal-
ances--net.......... 25,720 (11,235) (12,278) 1,361 3,285 19,604 8,233 (36,124) (1,434)
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Total alloca-
tions, contribu-
tions and trans-
fers............ 64,779 (6,550) 13,985 4,150 20,422 22,585 8,233 3,890 131,494
Allocated share of
Master Trust net in-
vestment activities
(Note 4)............ 176,085 3,022 35,991 3,199 21,888 4,184 3,320 73,136 320,825
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Net additions... 240,864 (3,528) 49,976 7,349 42,310 26,769 11,553 77,026 452,319
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Less: Distributions
to participants..... 82,105 9,956 44,508 3,050 18,926 1,328 1,893 -- 161,766
Interest expense.. -- -- -- -- -- -- -- 32,534 32,534
Amortization of
capitalized ESOP
expenses.......... -- -- -- -- -- -- -- 158 158
Administrative
expenses.......... 653 8 640 65 342 20 35 110 1,873
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Total deduc-
tions........... 82,758 9,964 45,148 3,115 19,268 1,348 1,928 32,802 196,331
-------- ------- -------- ------- -------- ------- ------- -------- ----------
Net assets available
for Plan benefits,
December 31, 1993
(Note 3)............ $971,930 $88,927 $529,962 $37,600 $226,273 $37,093 $46,171 $30,061 $1,968,017
======== ======= ======== ======= ======== ======= ======= ======== ==========
</TABLE>
See notes to financial statements.
6
<PAGE>
BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN
The following description of the Bell Atlantic Savings Plan for Salaried
Employees (the "Plan" or "BASP") provides only general information on the
Plan's provisions as of December 31, 1994. Participants should refer to the
Benefits Handbook, Plan document and prospectus for a more complete description
of the Plan's provisions.
The Plan is a defined contribution plan covering all regular salaried
employees of Bell Atlantic Corporation ("Bell Atlantic") and its participating
subsidiaries. Employees are immediately eligible to make tax-deferred or after-
tax contributions to the Plan at date of hire. Employees become eligible for
employer matching contributions upon completion of one year of service. The
Plan includes an employee stock ownership plan ("ESOP") which obtained loans to
purchase Bell Atlantic shares that are being allocated to participant accounts
in the form of employer matching contributions based upon the loan repayment
schedule. Depending on the value of Bell Atlantic shares from time to time, the
ESOP may fund more or less than all of the required employer matching
contributions in a given calendar year. In the event of a shortfall, Bell
Atlantic and its participating subsidiaries make additional employer matching
contributions to the Plan. Any surplus is allocated in equal amounts to the
Plan accounts of participants who, as of the last day of the year, are active
employees of Bell Atlantic and its participating subsidiaries, and have account
balances under the Plan.
Eligible employees may authorize basic contributions of 1% to 6% of salary
and supplementary contributions up to an additional 10% of salary. Bell
Atlantic makes employer matching contributions in an amount generally equal to
83 1/3% of basic contributions. Certain participating subsidiaries make
employer matching contributions ranging from 40% to 83 1/3% of basic
contributions. Participants may invest their contributions in a Bell Atlantic
Shares Fund, a U.S. Equity Index fund ("USEF"), an International Equity Index
Fund ("INTF"), a U.S. Bond Market Index Fund ("BMIF"), an Interest Income Fund
("IIF"), or a Government Money Market Fund ("GMMF"). Employer matching
contributions are invested only in the Bell Atlantic Shares Fund.
The Plan provides for 100% vesting of employer matching contributions upon
attaining three years of service. A terminated employee's unvested employer
matching contributions are forfeited and offset against the participating
companies' obligation to make subsequent contributions to the Plan.
The assets of the Plan are commingled for investment purposes in the Bell
Atlantic Master Savings Trust (the "Master Trust") with the assets of the Bell
Atlantic Savings and Security Plan (Non-Salaried Employees) ("BASSP").
The Plan includes an employee loan provision authorizing participants to
borrow an amount from their vested account balances in the Plan. Loans are
generally repaid by payroll deductions. The period of repayment for loans
generally will not be less than one year nor more than fifteen years. Each loan
will bear interest at a rate established by the Treasurer of Bell Atlantic
based upon market interest rates as set forth in the Plan.
Certain administrative expenses of the Plan and Master Trust are charged to
the Plan and are therefore reflected in the earnings of the investment fund to
which the expenses relate. Expenses of the Plan and Master Trust attributable
to the operations of the ESOP are charged against the ESOP unallocated shares
account, which has no affect on the earnings in participants' accounts.
Although it has not expressed any intent to do so, Bell Atlantic has the
right under the Plan to discontinue all employer matching contributions at any
time and to terminate the Plan subject to the
7
<PAGE>
provisions of ERISA. In the event of plan termination, participants will become
100% vested in their accounts.
2. ACCOUNTING POLICIES
The values of Master Trust investments are determined as follows: Bell
Atlantic shares and other equity securities traded on a national stock exchange
are valued on the basis of the last published sales prices per share on
December 31 as reported on the composite tape or, if no sales were made on that
date, at the last published sales prices on the next preceding day on which
sales were made; U.S. Government and other fixed income securities are valued
by the Master Trust's trustee at fair value based on current market yields for
investments with similar characteristics such as maturity, coupon, and quality
as determined by an independent source; securities traded in the over-the-
counter market and listed securities for which no sales were reported on the
valuation date, are valued at the reported bid price; units in the USEF, the
INTF, and the BNDF are valued on the basis of net asset values provided by the
investment managers pursuant to contractually specified methodologies which are
similar to the aforementioned procedures for equity and fixed income
investments; and temporary cash investments are valued at cost which
approximates fair value. The contracts with the insurance companies and
commercial banks included in the IIF are valued at contract value which
approximates fair value.
Purchases and sales of securities are reflected as of the trade date.
Dividend income is recorded on the ex-dividend date. Interest earned on
investments is recorded on the accrual basis.
The Plan presents in the Statement of Changes in Net Assets Available for
Plan Benefits its allocated share of Master Trust investment activities which
includes net appreciation (depreciation) in the fair value of its investments.
Net appreciation (depreciation) in the fair value of investments consists of
the realized gains or losses and the unrealized appreciation (depreciation) on
those investments.
Prepaid expenses incurred in connection with the formation of the ESOP are
being amortized over 10 years on a straight-line basis. These expenses include
debt placement costs and legal fees associated with the placement of the ESOP
debt.
In 1993, the Plan adopted the provisions of the AICPA Audit and Accounting
Guide, "AUDITS of EMPLOYEE BENEFIT PLANS," requiring that amounts allocated to
withdrawing participants not be reported as a liability on the statement of net
assets available for plan benefits. As a result, the Plan recorded a cumulative
effect adjustment at the beginning of 1993 of $59,865,000.
The Plan participates in certain commingled investment funds. The funds'
managers utilize futures and foreign currency forward contracts to minimize
transaction costs and the effect of cash flows (such as contributions,
transfers, and distributions) on the funds' investment performance. Futures
contracts are fully collateralized and are marked to market daily. Foreign
currency forward contracts are matched with the settlement of purchases and
sales of foreign securities and are also marked to market daily.
8
<PAGE>
3. EMPLOYEE INTEREST IN THE PLAN
The interest of an employee in each type of investment of the Plan is
represented by units as described in the Plan document. The number of employees
participating in each investment option, the number of units and the values per
unit at December 31 were as follows:
<TABLE>
<CAPTION>
1994 1993
--------------------------------- ---------------------------------
NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE
EMPLOYEES OF PER EMPLOYEES OF PER
PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT
------------- ----------- ------- ------------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Bell Atlantic Shares
Fund................... 23,719 218,636,954 $3.9820 24,294 204,798,989 $4.7288
Government Money Market
Fund................... 6,977 10,533,509 8.3178 7,224 11,095,158 7.9893
Interest Income Fund.... 17,083 124,761,215 4.3437 17,836 129,351,265 4.0809
U.S. Bond Market Index
Fund................... 3,433 28,062,315 1.1382 3,325 32,029,036 1.1729
U.S. Equity Index Fund.. 11,790 23,490,913 9.5057 11,916 23,762,499 9.4827
International Equity
Index Fund............. 5,095 41,224,009 1.3504 3,592 29,684,503 1.2468
Loan Fund............... 5,635 -- -- 5,522 -- --
</TABLE>
At December 31, 1994, 18,085 participants were actively contributing to the
Plan; 7,239 participants were not actively contributing to the Plan. The total
number of participants in the Plan was less than the sum of the number of
participants shown in the schedule above because many participants were
invested in more than one fund.
4. INTEREST IN BELL ATLANTIC MASTER SAVINGS TRUST
BASP'S SHARE OF MASTER TRUST NET ASSETS.
The Plan's allocated share of the Master Trust's net assets is based upon the
total of each individual Plan participant's share of the Master Trust. The
allocated share of the net assets of each fund in the Master Trust at December
31 was as follows:
<TABLE>
<CAPTION>
1994 1993
----- -----
<S> <C> <C>
Bell Atlantic Shares Fund (for the BASP)..................... 100.0% 100.0%
Bell Atlantic Shares Fund (for the BASSP).................... -- --
Government Money Market Fund................................. 93.2% 94.0%
Interest Income Fund (for the BASP).......................... 100.0% 100.0%
Interest Income Fund (for the BASSP)......................... -- --
U.S. Bond Market Index Fund.................................. 87.2% 88.9%
U.S. Equity Index Fund....................................... 94.0% 95.2%
International Equity Index Fund.............................. 88.9% 90.8%
Loan Fund (for the BASP)..................................... 100.0% 100.0%
Loan Fund (for the BASSP).................................... -- --
ESOP Unallocated Shares Fund (for the BASP).................. 100.0% 100.0%
ESOP Unallocated Shares Fund (for the BASSP)................. -- --
</TABLE>
9
<PAGE>
At December 31, the financial position of the Master Trust was as follows:
<TABLE>
<CAPTION>
1994 1993
----------- -----------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
ASSETS:
Investments at fair value:
Bell Atlantic Shares Fund--BASP:
Bell Atlantic Corporation common shares............ $ 860,361 $ 960,455
Temporary cash investments......................... 12,656 11,038
Bell Atlantic Shares Fund--BASSP:
Bell Atlantic Corporation common shares............ 710,249 805,178
Temporary cash investments......................... 26,074 11,810
Government Money Market Fund:
Temporary cash investments......................... 96,256 97,958
Interest Income Fund--BASP:
Contracts with insurance companies and commercial
banks............................................. 540,659 530,588
Temporary cash investments......................... 3,105 2,203
Interest Income Fund--BASSP:
Contracts with insurance companies and commercial
banks............................................. 269,687 240,864
Temporary cash investments......................... 476 10,672
U.S. Bond Market Index Fund:
Fund shares........................................ 38,440 42,842
Temporary cash investments......................... 68 40
U.S. Equity Index Fund:
Fund shares........................................ 239,178 235,911
Temporary cash investments......................... 917 3,039
International Equity Index Fund:
Fund shares........................................ 62,152 37,461
Temporary cash investments......................... 811 105
Loan Fund--BASP:
Loans receivable from participants................. 47,690 45,769
Loan Fund--BASSP:
Loans receivable from participants................. 30,420 24,491
ESOP Unallocated Shares Fund--BASP:
Bell Atlantic Corporation common shares............ 305,841 420,812
Temporary cash investments......................... 13,680 13,675
ESOP Unallocated Shares Fund--BASSP:
Bell Atlantic Corporation common shares............ 191,615 263,646
Temporary cash investments......................... 8,635 7,915
----------- -----------
Total investments................................ 3,458,970 3,766,472
Receivables:
Dividends and interest income...................... 4,476 6,617
Receivables for investments sold................... 7,113 2,801
----------- -----------
Total assets..................................... 3,470,559 3,775,890
LIABILITIES:
Payable for investments purchased................... 23,404 19,779
----------- -----------
Net investments.................................. $ 3,447,155 $3,756,111
=========== ===========
Investments at cost: ................................. $ 3,125,178 $3,023,806
=========== ===========
</TABLE>
See Schedule I, Bell Atlantic Master Savings Trust Schedule of Investments.
The BASP's principal financial instrument subject to credit risk is the
investment in the Master Trust. The Master Trust consists of separate
investment funds, as defined by the Plan, with different investment objectives.
The degree and concentration of credit risk varies by fund depending upon the
type and diversity of investments. The schedule of investments depicts the
types of investments and their proportionate share of each investment fund.
10
<PAGE>
BASP'S SHARE OF MASTER TRUST INVESTMENT ACTIVITIES.
The Plan's allocated share of Master Trust investment activities is based
upon the total of each individual Plan participant's share of the Master Trust
investment activities during the years ended December 31, 1994 and 1993.
The Master Trust's investment activities for the years ended December 31 were
as follows:
<TABLE>
<CAPTION>
1994 1993
----------- -----------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
Investment Activities:
Dividends on Bell Atlantic Corporation common
shares:
Non-ESOP shares................................ $ 84,295 $ 76,824
ESOP shares.................................... 29,825 33,446
Other dividends................................. 7,138 7,085
Interest Income Fund (BASP) income.............. 33,650 35,991
Interest Income Fund (BASSP) income............. 15,554 16,740
Other interest.................................. 13,597 11,569
Net (depreciation) appreciation in value of
investments.................................... (405,143) 350,526
----------- ----------
Net investment activities................... $(221,084) $ 532,181
=========== ==========
Allocated share of net investment activities:
BASP............................................ $(117,020) $ 320,825
BASSP........................................... (104,064) 211,356
</TABLE>
The value per share of Bell Atlantic common stock decreased from $59.38 at
December 31, 1993 to $49.75 at December 31, 1994. This represents a 16.22%
decrease in the value per share. At December 31, 1994, approximately 40% of
BASP assets and 58% of BASSP assets were invested in the Bell Atlantic Shares
Funds. Between January 1 and April 19, 1995, Bell Atlantic common stock closing
prices have ranged from $48.88 to $54.63 per share.
During 1994 and 1993, the participating employing companies transferred
134,511 and 58,660 shares respectively of Bell Atlantic common stock, valued at
$6,594,000 and $3,034,000 respectively, to the Plan for employer company
matching contributions to employee accounts.
5. LEVERAGED ESOP NOTES PAYABLE
The Leveraged ESOP notes payable bear an 8.17% interest rate subject to
adjustment (maximum 10.25% and minimum 6.77%) due to changes in the Federal
income tax rate or changes in the Federal law regarding the alternative minimum
tax. Interest and principal payments are guaranteed by Bell Atlantic and are
due on January 1 and July 1 of each year; principal payments began July 1,
1990.
The outstanding principal is payable in amounts ranging from 6.77% to 16.3%
of the original amount ($485.7 million) from 1994 to 1999, respectively. The
final payment will be made on January 1, 2000. The principal amounts under the
notes are due as follows (in thousands):
<TABLE>
<S> <C>
1995..................................... $ 45,168
1996..................................... 52,630
1997..................................... 60,808
1998..................................... 69,771
1999..................................... 79,594
2000..................................... 43,277
--------
$351,248
========
</TABLE>
11
<PAGE>
The fair value of the Leveraged ESOP notes payable is based on quoted market
prices for the same or similar instruments. As of December 31, 1994, the
carrying amount and the estimated fair value of the notes payable were:
<TABLE>
<CAPTION>
CARRYING FAIR
AMOUNT VALUE
-----------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
BASP............................................... $351,248 $364,139
BASSP.............................................. 220,063 228,140
----------- -----------
$571,311 $592,279
=========== ===========
</TABLE>
6. TAX DETERMINATION
On May 12, 1990, the Internal Revenue Service issued a ruling that the Plan
meets the requirements of Section 401(a) of the Internal Revenue Code of 1986
(the "Code") and is exempt from Federal income taxes under Section 501(a) of
the Code and that the ESOP portion of the Plan qualifies as an employee stock
ownership plan within the meaning of Section 4975(e)(7) of the Code.
7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for plan benefits
per the financial statements to the Form 5500:
<TABLE>
<CAPTION>
1994
--------------------------
(DOLLARS IN THOUSANDS)
<S> <C>
Net assets available for benefits per the
financial statements......................... $1,824,488
Amounts allocated to withdrawing participants. (12,030)
----------
Net assets available for benefits per the Form
5500......................................... $1,812,458
==========
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
1994
--------------------------
(DOLLARS IN THOUSANDS)
<S> <C>
Benefits paid to participants per the financial
statements.................................... $133,841
Add: Amounts allocated to withdrawing
participants at December 31, 1994............. 12,030
Less: Amounts allocated to withdrawing
participants at December 31, 1993............. (7,575)
--------
Benefits paid to participants per the Form
5500.......................................... $138,296
========
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
12
<PAGE>
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE BELL
ATLANTIC CORPORATE EMPLOYEES' BENEFITS COMMITTEE HAS DULY CAUSED THIS ANNUAL
REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED.
Bell Atlantic Savings Plan For
Salaried Employees
Date: April 28, 1995
/s/ Barbara L. Connor
By__________________________________
BARBARA L. CONNOR
(Member of the Bell Atlantic
Corporate Employees' Benefits
Committee)
13
<PAGE>
SCHEDULE I
BELL ATLANTIC MASTER SAVINGS TRUST
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
DECEMBER 31, 1994
----------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- ----------- -------- --------
BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
<S> <C> <C> <C>
*Bell Atlantic Corporation Common Shares--
98.6%......................................... 17,293,682 shs. $714,751 $860,361
Temporary Cash Investments--1.4%............... $ 12,656 12,656 12,656
-------- --------
Total.................................... 727,407 873,017
-------- --------
BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
*Bell Atlantic Corporation Common Shares--
96.5%......................................... 14,276,353 shs. 581,943 710,249
Temporary Cash Investments--3.5%............... $ 26,074 26,074 26,074
-------- --------
Total.................................... 608,017 736,323
-------- --------
GOVERNMENT MONEY MARKET FUND
Temporary Cash Investments--100.0%
BT Pyramid Government Securities Cash Fund... 96,256 96,256 96,256
-------- --------
Total.................................... 96,256 96,256
-------- --------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
+Contracts with Insurance Companies and
Commercial Banks--99.4%.......................
American Int'l Life Assurance, 7.02% Maturing
10/1/99..................................... 7,438 7,438 7,438
American Int'l Life Assurance, 5.25% Maturing
4/1/98...................................... 10,504 10,504 10,504
American Int'l Life Assurance, 5.41% Maturing
7/1/96...................................... 5,888 5,888 5,888
Continental Assurance, 5.30% Maturing
10/1/95..................................... 24,323 24,323 24,323
Continental Assurance, 8.75% Maturing 4/1/96. 19,121 19,121 19,121
John Hancock Mutual Life Ins. Co., 5.45%
Maturing 4/1/96............................. 32,238 32,238 32,238
John Hancock Mutual Life Ins. Co., 6.31%
Maturing 10/1/95............................ 9,314 9,314 9,314
John Hancock Mutual Life Ins. Co., 6.60%
Maturing 10/1/99............................ 16,840 16,840 16,840
ITT Hartford Life Ins. Co., 8.54% Maturing
7/1/95...................................... 36,122 36,122 36,122
Metropolitan Life Ins. Co., 5.58% Maturing
1/1/98...................................... 14,309 14,309 14,309
Metropolitan Life Ins. Co., 6.47% Maturing
4/1/98...................................... 39,390 39,390 39,390
Metropolitan Life Ins. Co., 5.08% Maturing
1/1/97...................................... 24,031 24,031 24,031
#MBL Life Assurance Corp., 3.0% no maturity
date........................................ 7,136 7,136 7,136
New York Life, 5.18% Maturing 7/1/98......... 22,338 22,338 22,338
New York Life, 7.20% Maturing 1/1/2000....... 22,323 22,323 22,323
New York Life, 6.75% Maturing 7/1/99......... 38,501 38,501 38,501
Principal Mutual Life Ins. Co., 5.10%
Maturing 1/2/97............................. 14,202 14,202 14,202
Principal Mutual Life Ins. Co., 5.90%
Maturing 9/30/97............................ 29,582 29,582 29,582
Principal Mutual Life Ins. Co., 7.84%
Maturing 3/31/96............................ 15,604 15,604 15,604
Principal Mutual Life Ins. Co., 6.00%
Maturing 7/1/98............................. 19,965 19,965 19,965
Provident Nat'l Assurance, 5.12% Maturing
1/2/97...................................... 28,479 28,479 28,479
Provident Nat'l Assurance, 4.59% Maturing
4/1/97...................................... 27,254 27,254 27,254
</TABLE>
S-1
<PAGE>
SCHEDULE I
<TABLE>
<CAPTION>
DECEMBER 31, 1994
---------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- --------- -------- --------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES--
(CONTINUED):
<S> <C> <C> <C>
The Prudential Ins. Co. of America, 9.06% Maturing
10/1/96............................................ $20,839 $20,839 $20,839
The Prudential Ins. Co. of America, 8.08% Maturing
4/1/97............................................. 19,921 19,921 19,921
The Prudential Ins. Co. of America, 5.91% Maturing
7/1/98............................................. 15,896 15,896 15,896
The Prudential Ins. Co. of America, 5.04% Maturing
1/1/98............................................. 10,119 10,119 10,119
Union Bank of Switzerland, 6.96% Maturing 1/2/95.... 8,982 8,982 8,982
-------- --------
540,659 540,659
-------- --------
Temporary Cash Investments--0.6%
BT Pyramid Government Securities Cash Fund......... 3,105 3,105 3,105
-------- --------
Total........................................... 543,764 543,764
-------- --------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
+Contracts with Insurance Companies and Commercial Banks--99.8%
American Int'l Life Assurance, 5.11% Maturing
7/1/98............................................. 6,295 6,295 6,295
American Int'l Life Assurance, 7.02% Maturing
10/1/99............................................ 7,467 7,467 7,467
American Int'l Life Assurance, 5.25% Maturing
4/1/98............................................. 4,949 4,949 4,949
Bankers Trust (Delaware), 8.88% Maturing 10/1/95.... 10,950 10,950 10,950
Continental Assurance, 5.26% Maturing 10/2/95....... 13,775 13,775 13,775
Continental Assurance, 8.75% Maturing 7/1/96........ 5,833 5,833 5,833
John Hancock Mutual Life Ins. Co., 5.21% Maturing
4/1/96............................................. 14,685 14,685 14,685
John Hancock Mutual Life Ins. Co., 6.12% Maturing
7/1/95............................................. 4,736 4,736 4,736
John Hancock Mutual Life Ins. Co., 6.57% Maturing
10/1/99............................................ 9,295 9,295 9,295
Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98... 16,291 16,291 16,291
Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97... 12,473 12,473 12,473
Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98... 9,580 9,580 9,580
New York Life, 5.35% Maturing 7/1/95................ 11,308 11,308 11,308
New York Life, 5.05% Maturing 4/1/97................ 5,233 5,233 5,233
New York Life, 5.13% Maturing 7/1/98................ 6,372 6,372 6,372
New York Life, 6.75% Maturing 7/1/99................ 7,880 7,880 7,880
New York Life, 7.20% Maturing 10/1/99............... 7,471 7,471 7,471
New York Life, 5.92% Maturing 1/1/99................ 10,042 10,042 10,042
Principal Mutual Life Ins. Co., 5.90% Maturing
10/1/97............................................ 17,327 17,327 17,327
Principal Mutual Life Ins. Co., 5.20% Maturing
3/31/97............................................ 10,383 10,383 10,383
Principal Mutual Life Ins. Co., 7.84% Maturing
3/31/96............................................ 3,937 3,937 3,937
Provident Nat'l Assurance, 8.49% Maturing 7/1/95.... 3,851 3,851 3,851
Provident Nat'l Assurance, 4.62% Maturing 7/1/97.... 14,500 14,500 14,500
Provident Nat'l Assurance, 5.10% Maturing 4/1/97.... 6,647 6,647 6,647
The Prudential Ins. Co. of America, 6.78% Maturing
1/1/99............................................. 16,068 16,068 16,068
The Prudential Ins. Co. of America, 5.88% Maturing
7/1/98............................................. 8,150 8,150 8,150
The Prudential Ins. Co. of America, 8.10% Maturing
7/1/96............................................. 13,802 13,802 13,802
Principal Mutual, 6.00% Maturing 7/1/98............. 5,410 5,410 5,410
Union Bank of Switzerland, 6.96% Maturing 1/1/95.... 4,977 4,977 4,977
-------- --------
269,687 269,687
-------- --------
Temporary Cash Investments--0.2%
BT Pyramid Government Securities Cash Fund........... 476 476 476
-------- --------
Total........................................... 270,163 270,163
-------- --------
</TABLE>
S-2
<PAGE>
SCHEDULE I
<TABLE>
<CAPTION>
DECEMBER 31, 1994
------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- --------- ------- -------
U.S. BOND MARKET INDEX FUND
<S> <C> <C> <C>
Bond Funds--99.8%
U.S. Debt Index Fund............................. 1,943,119 shs. $40,577 $37,624
Daily U.S. Debt Market Fund...................... 71,573 816 816
------- -------
41,393 38,440
------- -------
Temporary Cash Investments--0.2%
BT Pyramid Government Securities Cash Fund....... $ 68 68 68
------- -------
Total........................................ 41,461 38,508
------- -------
U.S. EQUITY INDEX FUND
Pooled Common Stock--99.6%
*Mellon E.B. Russell 1000 Index Fund............. 878,444 shs. 187,071 206,062
Mellon E.B. Russell 2000 Index Fund.............. 120,168 19,786 23,743
E.B. Daily Opening Stock Index Fund.............. 82,673 9,278 9,373
------- -------
216,135 239,178
------- -------
Temporary Cash Investments--0.4%
BT Pyramid Government Securities Cash Fund....... $ 917 917 917
------- -------
Total........................................ 217,052 240,095
------- -------
INTERNATIONAL EQUITY INDEX FUND
Pooled Common Stock--98.8%
International Stock Performance Index............ 163,953 shs. 1,959 1,969
State Street Bank--Australia..................... 89,584 1,388 1,581
State Street Bank--Austria....................... 36,829 833 870
State Street Bank--Belgium....................... 55,541 906 1,062
State Street Bank--Denmark....................... 31,123 606 660
State Street Bank--Finland....................... 40,378 337 575
State Street Bank--France........................ 310,868 6,575 6,649
State Street Bank--Germany....................... 411,452 8,183 9,317
State Street Bank--Hong Kong..................... 14,003 519 539
State Street Bank--Ireland....................... 19,791 217 254
State Street Bank--Italy......................... 373,188 4,390 4,689
State Street Bank--Japan......................... 2,067,206 18,044 20,972
State Street Bank--Malaysia...................... 23,104 292 314
State Street Bank--Netherland.................... 65,773 1,430 1,775
State Street Bank--New Zealand................... 18,651 196 256
State Street Bank--Norway........................ 29,824 468 595
State Street Bank--Singapore..................... 9,084 240 321
State Street Bank--Spain......................... 214,150 2,203 2,182
State Street Bank--Sweden........................ 52,699 886 1,066
State Street Bank--Switzerland................... 54,394 1,000 1,236
State Street Bank--United Kingdom................ 263,751 5,030 5,270
------- -------
55,702 62,152
------- -------
Temporary Cash Investments--1.2%
BT Pyramid Government Securities Cash Fund....... $ 811 811 811
------- -------
Total........................................ 56,513 62,963
------- -------
</TABLE>
S-3
<PAGE>
SCHEDULE I
<TABLE>
<CAPTION>
DECEMBER 31, 1994
------------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- --------- ---------- ----------
LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
<S> <C> <C> <C>
Participant Loan Obligations--6.87% to 9.5%.. $ 47,690 $ 47,690
---------- ----------
Total Loan Fund........................ 47,690 47,690
---------- ----------
LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
Participant Loan Obligations--6.87% to 9.5%.. 30,420 30,420
---------- ----------
Total Loan Fund........................ 30,420 30,420
---------- ----------
ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
*Bell Atlantic Corporation Common Shares--
95.7%....................................... 6,147,565 shs. 285,346 305,841
Temporary Cash Investments--4.3%............. $ 13,680 13,680 13,680
---------- ----------
Total.................................. 299,026 319,521
---------- ----------
ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
*Bell Atlantic Corporation Common Shares--
95.7%....................................... 3,851,561 shs. 178,774 191,615
Temporary Cash Investments--4.3%............. $ 8,635 8,635 8,635
---------- ----------
Total.................................. 187,409 200,250
---------- ----------
Grand Total............................ $3,125,178 $3,458,970
---------- ----------
</TABLE>
- --------
* Investment represents 5% or more of the net investments of the Master Trust.
+ Under these contracts the respective insurance companies and commercial banks
contractually agree to the repayment of principal and the crediting of
interest. The composite effective annual interest rate earned on all
contracts in 1994, net of third party expenses and after the effect of cash
flows, was 6.4% for the BASP and 6.1% for the BASSP. Each quarter a projected
annualized interest rate is computed for the BASP and BASSP. The actual yield
may vary from the projected interest rate depending upon the rates for new
contracts that have been added to the Funds, actual interest earned, payment
performance of contract issuers, the timing of cash flows into and out of the
Funds, and the timing of the investment of those cash flows.
# In July 1991, Mutual Benefit Life Insurance Company ("MBL"), an issuer of an
insurance contract for the BASP's IIF, was placed under the control of New
Jersey insurance regulators. Since January 1992, interest on the contract has
been accrued at a reduced rate of 3.0% per annum. In November 1993, a
Rehabilitation Plan was confirmed by a New Jersey court. The Rehabilitation
Plan provided MBL contract holders with an opportunity to either (i) cash out
at a significantly reduced contract value or (ii) elect to be subject to the
terms of the Rehabilitation Plan under which contract balances are preserved
at full value and are subject to certain minimum interest rate guarantees. To
the extent that actual returns either achieve or exceed the guaranteed
minimums, adjustments will be recorded on a prospective basis. Any adjustment
is not expected to have a material effect on the BASP IIF yield. Contract
balances are expected to be paid out in a series of five annual installments
beginning in 2000. Contract holders electing coverage under the
Rehabilitation Plan retain the right to cash out at a reduced value. Bell
Atlantic has directed the Master Trust's trustee to elect coverage under the
Rehabilitation Plan. Although the Rehabilitation Plan has been approved, it
is subject to appeals by a group of creditors and may be amended or revised.
Percentages represent percentage of total investments of each fund.
S-4
<PAGE>
EXHIBIT 24
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration statements
of Bell Atlantic Corporation on Form S-8 (File Nos. 33-10377 and 2-96246) of
our report dated April 19, 1995 on our audits of the financial statements of
the Bell Atlantic Savings Plan for Salaried Employees as of December 31, 1994
and 1993 and for the years then ended, and the schedule of investments of the
Bell Atlantic Master Savings Trust as of December 31, 1994, which report is
included in this Annual Report on Form 11-K, which is filed as Exhibit 99a to
Form 10-K of Bell Atlantic Corporation for the year ended December 31, 1994.
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
April 28, 1995
<PAGE>
COMMISSION FILE NO. 1-8606
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(MARK ONE)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER 1-8606
BELL ATLANTIC SAVINGS AND
SECURITY PLAN
(NON-SALARIED EMPLOYEES)
(FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF
THE ISSUER NAMED BELOW)
BELL ATLANTIC CORPORATION
1717 ARCH STREET
PHILADELPHIA, PENNSYLVANIA 19103
(NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF
ITS PRINCIPAL EXECUTIVE OFFICE)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
BELL ATLANTIC
SAVINGS AND SECURITY PLAN
(NON-SALARIED EMPLOYEES)
FINANCIAL STATEMENTS
DECEMBER 31, 1994 AND 1993
<PAGE>
BELL ATLANTIC SAVINGS AND SECURITY PLAN
INDEX TO FINANCIAL STATEMENTS AND EXHIBITS
<TABLE>
<CAPTION>
PAGE(S)
FINANCIAL STATEMENTS: -------
- ---------------------
<S> <C>
Report of Independent Accountants............................... 2
Financial Statements:
Statements of Net Assets Available for Plan Benefits at Decem-
ber 31, 1994 and 1993........................................ 3-4
Statements of Changes in Net Assets Available for Plan Bene-
fits for the years ended December 31, 1994 and 1993.......... 5-6
Notes to Financial Statements................................. 7-12
Signature....................................................... 13
Bell Atlantic Master Savings Trust Schedule of Investments--De-
cember 31, 1994................................................ S1-S4
<CAPTION>
EXHIBIT: EXHIBIT NUMBER
- -------- --------------
<S> <C>
Consent of Independent Accountants ............................. 24
</TABLE>
1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
Vice President--Finance and Controller and Treasurer
Bell Atlantic Corporation:
We have audited the accompanying statements of net assets available for plan
benefits of the Bell Atlantic Savings and Security Plan (Non-Salaried
Employees) (the "Plan") as of December 31, 1994 and 1993, and the related
statements of changes in net assets available for plan benefits for the years
then ended and the accompanying schedule of investments of the Bell Atlantic
Master Savings Trust as of December 31, 1994. These financial statements and
the accompanying schedule are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements and the
accompanying schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit 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 Plan
as of December 31, 1994 and 1993, and the changes in net assets available for
plan benefits for the years then ended, and the accompanying schedule of
investments of the Bell Atlantic Master Savings Trust (Pages S-1 to S-4) as of
December 31, 1994 presents fairly the information included therein, all in
conformity with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
April 19, 1995
2
<PAGE>
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1994
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
.
INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST U.S. BOND U.S. EQUITY EQUITY UNALLOCATED
SHARES MONEY MARKET INCOME MARKET INDEX INDEX LOAN SHARES
FUND FUND FUND INDEX FUND FUND FUND FUND FUND TOTAL
ASSETS: ------------- ------------ -------- ---------- ----------- ------------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Allocated share of
Master Trust net
investments
(Note 4).......... $734,033 $6,530 $269,764 $4,872 $14,197 $6,947 $30,420 $197,064 $1,263,827
Allocations and
contributions
receivable........ 6,113 70 1,758 50 203 113 -- -- 8,307
Fund, plan and
other transfers
receivable--net... 6,432 -- 339 -- -- -- -- -- 6,771
Prepaid expenses... -- -- -- -- -- -- -- 496 496
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Total Assets.... 746,578 6,600 271,861 4,922 14,400 7,060 30,420 197,560 1,279,401
-------- ------ -------- ------ ------- ------ ------- -------- ----------
LIABILITIES:
Notes payable (Note
5)................ -- -- -- -- -- -- -- 220,063 220,063
Accrued interest... -- -- -- -- -- -- -- 8,990 8,990
Fund, plan and
other transfers
payable--net...... -- 220 -- 64 34 2 34 -- 354
Administrative
expenses payable.. 983 11 583 12 55 10 -- 25 1,679
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Total
Liabilities.... 983 231 583 76 89 12 34 229,078 231,086
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Net assets
available
(deficit) for Plan
benefits
(Note 3).......... $745,595 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $(31,518) $1,048,315
======== ====== ======== ====== ======= ====== ======= ======== ==========
</TABLE>
See notes to financial statements.
3
<PAGE>
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1993
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
.
INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST U.S. BOND U.S. EQUITY EQUITY UNALLOCATED
SHARES MONEY MARKET INCOME MARKET INDEX INDEX LOAN SHARES
FUND FUND FUND INDEX FUND FUND FUND FUND FUND TOTAL
ASSETS: ------------- ------------ -------- ---------- ----------- ------------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Allocated share of
Master Trust net
investments
(Note 4).......... $811,002 $5,816 $251,255 $4,720 $11,427 $3,491 $24,491 $272,260 $1,384,462
Allocations and
contributions
receivable........ 6,514 15 479 12 44 27 -- -- 7,091
Fund, plan and
other transfers
receivable--net... -- -- -- -- 33 283 793 -- 1,109
Prepaid expenses... -- -- -- -- -- -- -- 596 596
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Total Assets.... 817,516 5,831 251,734 4,732 11,504 3,801 25,284 272,856 1,393,258
-------- ------ -------- ------ ------- ------ ------- -------- ----------
LIABILITIES:
Notes payable (Note
5)................ -- -- -- -- -- -- -- 244,096 244,096
Accrued interest... -- -- -- -- -- -- -- 9,869 9,869
Fund, plan and
other transfers
payable--net...... 971 62 658 80 -- -- -- -- 1,771
Administrative
expenses payable.. 273 -- 244 5 6 1 -- -- 529
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Total
Liabilities.... 1,244 62 902 85 6 1 -- 253,965 256,265
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Net assets
available for Plan
benefits (Note 3). $816,272 $5,769 $250,832 $4,647 $11,498 $3,800 $25,284 $18,891 $1,136,993
======== ====== ======== ====== ======= ====== ======= ======== ==========
</TABLE>
See notes to financial statements.
4
<PAGE>
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
GOVERNMENT INTERNATIONAL ESOP
BELL ATLANTIC MONEY INTEREST U.S. BOND U.S. EQUITY EQUITY UNALLOCATED
SHARES MARKET INCOME MARKET INDEX INDEX LOAN SHARES
FUND FUND FUND INDEX FUND FUND FUND FUND FUND TOTAL
------------- ---------- -------- ---------- ----------- ------------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets
available
(deficit) for Plan
benefits, December
31, 1993.......... $816,272 $5,769 $250,832 $4,647 $11,498 $3,800 $25,284 $ 18,891 $1,136,993
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Employee
contributions..... 29,159 1,027 28,900 812 3,112 1,521 -- -- 64,531
Employing company
contributions and
allocations....... 6,113 -- -- -- -- -- -- 26,974 33,087
Transfer of ESOP
Shares and
participants'
balances--net..... 28,389 (236) (2,902) (229) 442 1,661 3,792 (22,850) 8,067
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Total
allocations,
contributions
and transfers.. 63,661 791 25,998 583 3,554 3,182 3,792 4,124 105,685
Allocated share of
Master Trust net
investment
activities (Note
4)................ (89,230) 255 15,554 (137) 52 331 1,751 (32,640) (104,064)
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Net additions... (25,569) 1,046 41,552 446 3,606 3,513 5,543 (28,516) 1,621
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Less:Distributions
to
participants... 43,750 428 20,567 233 764 249 441 -- 66,432
Interest
expense......... -- -- -- -- -- -- -- 21,725 21,725
Amortization of
capitalized
ESOP expenses... -- -- -- -- -- -- -- 100 100
Administrative
expenses........ 1,358 18 539 14 29 16 -- 68 2,042
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Total
deductions..... 45,108 446 21,106 247 793 265 441 21,893 90,299
-------- ------ -------- ------ ------- ------ ------- -------- ----------
Net assets
available
(deficit) for Plan
benefits, December
31, 1994 (Note 3). $745,595 $6,369 $271,278 $4,846 $14,311 $7,048 $30,386 $(31,518) $1,048,315
======== ====== ======== ====== ======= ====== ======= ======== ==========
</TABLE>
See notes to financial statements.
5
<PAGE>
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
U.S. BOND INTERNATIONAL ESOP
BELL ATLANTIC GOVERNMENT INTEREST MARKET U.S. EQUITY UNALLOCATED
SHARES MONEY MARKET INCOME INDEX EQUITY INDEX LOAN SHARES
FUND FUND FUND FUND INDEX FUND FUND FUND FUND TOTAL
------------- ------------ -------- --------- ---------- ------------- ------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets available
(deficit) for Plan
benefits,
December 31, 1992 as
previously reported. $672,228 $5,336 $238,699 $3,916 $ 7,888 $1,386 $ -- $(8,812) $920,641
Cumulative effect of
accounting change
(Note 2)............ 54,166 249 18,295 181 257 79 -- -- 73,227
-------- ------ -------- ------ ------- ------ ------- ------- ----------
Net assets available
(deficit) for Plan
benefits,
January 1, 1993..... 726,394 5,585 256,994 4,097 8,145 1,465 -- (8,812) 993,868
-------- ------ -------- ------ ------- ------ ------- ------- ----------
Employee contribu-
tions............... 30,159 874 28,349 716 2,691 641 -- -- 63,430
Employing company
contributions and
allocations......... 5,770 -- -- -- -- -- -- 24,958 30,728
Transfer of ESOP
Shares and
participants' bal-
ances--net.......... (10,668) (303) (13,230) (195) 312 1,336 24,940 (22,492) (20,300)
-------- ------ -------- ------ ------- ------ ------- ------- ----------
Total alloca-
tions,
contributions
and transfers... 25,261 571 15,119 521 3,003 1,977 24,940 2,466 73,858
Allocated share of
Master Trust net
investment
activities (Note 4). 146,161 177 16,740 398 1,010 491 589 45,790 211,356
-------- ------ -------- ------ ------- ------ ------- ------- ----------
Net additions... 171,422 748 31,859 919 4,013 2,468 25,529 48,256 285,214
-------- ------ -------- ------ ------- ------ ------- ------- ----------
Less: Distributions
to participants..... 80,420 546 37,368 349 633 118 96 -- 119,530
Interest expense.. -- -- -- -- -- -- -- 20,384 20,384
Amortization of
capitalized ESOP
expenses.......... -- -- -- -- -- -- -- 99 99
Administrative
expenses.......... 1,124 18 653 20 27 15 149 70 2,076
-------- ------ -------- ------ ------- ------ ------- ------- ----------
Total deduc-
tions........... 81,544 564 38,021 369 660 133 245 20,553 142,089
-------- ------ -------- ------ ------- ------ ------- ------- ----------
Net assets available
for Plan benefits,
December 31, 1993
(Note 3)............ $816,272 $5,769 $250,832 $4,647 $11,498 $3,800 $25,284 $18,891 $1,136,993
======== ====== ======== ====== ======= ====== ======= ======= ==========
</TABLE>
See notes to financial statements.
6
<PAGE>
BELL ATLANTIC SAVINGS AND SECURITY PLAN (NON-SALARIED EMPLOYEES)
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN
The following description of the Bell Atlantic Savings and Security Plan
(Non-Salaried Employees) (the "Plan" or "BASSP") provides only general
information on the Plan's provisions as of December 31, 1994. Participants
should refer to the Benefits Handbook, Plan document and prospectus for a more
complete description of the Plan's provisions.
The Plan is a defined contribution plan covering all regular non-salaried
employees of Bell Atlantic Corporation ("Bell Atlantic") and its participating
subsidiaries. Prior to May 1, 1993, employees who had at least one year of
service were eligible to make tax-deferred or after-tax contributions to the
Plan. Effective May 1, 1993, employees are immediately eligible to make tax-
deferred or after-tax contributions to the Plan at date of hire. Employees also
become eligible for employer matching contributions upon completion of one year
of service. The Plan includes an employee stock ownership plan ("ESOP") which
obtained loans to purchase Bell Atlantic shares that are being allocated to
participant accounts in the form of employer matching contributions based upon
the loan repayment schedule. Depending on the value of Bell Atlantic shares
from time to time, the ESOP may fund more or less than all of the required
matching contributions in a given calendar year. In the event of a shortfall,
Bell Atlantic and its participating subsidiaries make additional employer
matching contributions to the Plan. Any surplus is allocated in equal amounts
to the Plan accounts of participants who, as of the last day of the year, are
active employees of Bell Atlantic and its participating subsidiaries, and have
account balances under the Plan.
Eligible employees may authorize basic contributions of $5 to $45 per week,
which is as much as 5% to 7% of the basic weekly rate, and supplementary
contributions up to an amount which, when added to the basic contribution, is
not more than 16% of the employee's weekly rate. Bell Atlantic makes employer
matching contributions in an amount generally equal to 66 2/3% of basic
contributions. One participating subsidiary makes employer matching
contributions equal to 37 1/2% of basic contributions. Participants may invest
their contributions in a Bell Atlantic Shares Fund, a U.S. Equity Index Fund
("USEF"), an International Equity Index Fund ("IEIF"), a U.S. Bond Market Index
Fund ("BNDF"), an Interest Income Fund ("IIF"), or a Government Money Market
Fund ("GMMF"). Employer matching contributions are invested only in the Bell
Atlantic Shares Fund.
The Plan provides for 100% vesting of employer matching contributions upon
attaining three years of service. A terminated employee's unvested employer
matching contributions are forfeited and offset against the participating
companies' obligation to make subsequent contributions to the Plan.
The assets of the Plan are commingled for investment purposes in the Bell
Atlantic Master Savings Trust (the "Master Trust") with the assets of the Bell
Atlantic Savings Plan for Salaried Employees ("BASP").
Effective April 1, 1993, the Plan includes an employee loan provision
authorizing participants to borrow an amount from their vested account balances
in the Plan. Loans are generally repaid by payroll deductions. The repayment
period for loans generally will not be less than one year nor more than fifteen
years. Each loan will bear interest at a rate established by the Treasurer of
Bell Atlantic based upon market interest rates as set forth in the Plan.
7
<PAGE>
Certain administrative expenses of the Plan and Master Trust are charged to
the Plan and are therefore reflected in the earnings of the investment fund to
which the expenses relate. Expenses of the Plan and Master Trust attributable
to the operations of the ESOP are charged against the ESOP unallocated shares
account, which has no affect on the earnings in participants' accounts.
Although it has not expressed any intent to do so, Bell Atlantic has the
right under the Plan to discontinue all employer matching contributions at any
time and to terminate the Plan subject to the provisions of ERISA. In the event
of plan termination, participants will become 100% vested in their accounts.
2. ACCOUNTING POLICIES
The values of Master Trust investments are determined as follows: Bell
Atlantic shares and other equity securities traded on a national stock exchange
are valued on the basis of the last published sales prices per share on
December 31 as reported on the composite tape or, if no sales were made on that
date, at the last published sales prices on the next preceding day on which
sales were made; U.S. Government and other fixed income securities are valued
by the Master Trust's trustee at fair value based on current market yields for
investments with similar characteristics such as maturity, coupon, and quality
as determined by an independent source; securities traded in the over-the-
counter market and listed securities for which no sales were reported on the
valuation date, are valued at the reported bid price; units in the USEF, the
INTF, and the BNDF are valued on the basis of net asset values provided by the
investment managers pursuant to contractually specified methodologies which are
similar to the aforementioned procedures for equity and fixed income
investments; and temporary cash investments are valued at cost which
approximates fair value. The contracts with the insurance companies and
commercial banks included in the IIF are valued at contract value which
approximates fair value.
Purchases and sales of securities are reflected as of the trade date.
Dividend income is recorded on the ex-dividend date. Interest earned on
investments is recorded on the accrual basis.
The Plan presents in the Statement of Changes in Net Assets Available for
Plan Benefits its allocated share of Master Trust investment activities which
includes net appreciation (depreciation) in the fair value of its investments.
Net appreciation (depreciation) in the fair value of investments consists of
the realized gains or losses and the unrealized appreciation (depreciation) on
those investments.
Prepaid expenses incurred in connection with the formation of the ESOP are
being amortized over 10 years on a straight-line basis. These expenses include
debt placement costs and legal fees associated with the placement of the ESOP
debt.
In 1993, the Plan adopted the provisions of the AICPA Audit and Accounting
Guide, "AUDITS of EMPLOYEE BENEFIT PLANS," requiring that amounts allocated to
withdrawing participants not be reported as a liability on the statement of net
assets available for plan benefits. As a result, the Plan recorded a cumulative
effect adjustment at the beginning of 1993 of $73,227,000.
The Plan participates in certain commingled investment funds. The funds'
managers utilize futures and foreign currency forward contracts to minimize
transaction costs and the effect of cash flows (such as contributions,
transfers, and distributions) on the funds' investment performance. Futures
contracts are fully collateralized and are marked to market daily. Foreign
currency forward contracts are matched with the settlement of purchases and
sales of foreign securities and are also marked to market daily.
8
<PAGE>
3. EMPLOYEE INTEREST IN THE PLAN
The interest of an employee in each type of investment of the Plan is
represented by units as described in the Plan document. The number of employees
participating in each investment option, the number of units and the values per
unit at December 31, were as follows:
<TABLE>
<CAPTION>
1994 1993
--------------------------------- --------------------------------
NUMBER OF NUMBER VALUE NUMBER OF NUMBER VALUE
EMPLOYEES OF PER EMPLOYEES OF PER
PARTICIPATING UNITS UNIT PARTICIPATING UNITS UNIT
------------- ----------- ------- ------------- ----------- ------
<S> <C> <C> <C> <C> <C> <C>
Bell Atlantic Shares
Fund................... 41,775 182,342,498 $4.0492 41,866 168,981,473 4.8068
Government Money Market
Fund................... 2,376 4,978,550 1.2409 1,987 4,811,399 1.1959
Interest Income Fund.... 27,891 59,556,987 4.5207 28,460 58,433,065 4.2625
U.S. Bond Market Index
Fund................... 2,015 4,215,705 1.1472 1,711 3,918,074 1.1844
U.S. Equity Index Fund.. 3,975 9,620,307 1.4871 3,270 7,726,805 1.4852
International Equity
Index Fund............. 2,467 5,165,442 1.3566 1,437 3,023,119 1.2549
Loan Fund............... 7,338 -- -- 5,460 -- --
</TABLE>
At December 31, 1994, 36,003 participants were actively contributing to the
Plan; 9,623 participants were not actively contributing to the Plan. The total
number of participants in the Plan was less than the sum of the number of
participants shown in the schedule above because many participants were
invested in more than one fund.
4. INTEREST IN BELL ATLANTIC MASTER SAVINGS TRUST
BASSP'S SHARE OF MASTER TRUST NET ASSETS
The Plan's allocated share of the Master Trust's net assets is based upon the
total of each individual Plan participant's share of the Master Trust. The
allocated share of the net assets of each fund in the Master Trust at December
31 was as follows:
<TABLE>
<CAPTION>
1994 1993
----- -----
<S> <C> <C>
Bell Atlantic Shares Fund (for the BASSP).................... 100.0% 100.0%
Bell Atlantic Shares Fund (for the BASP)..................... -- --
Government Money Market Fund................................. 6.8% 6.0%
Interest Income Fund (for the BASSP)......................... 100.0% 100.0%
Interest Income Fund (for the BASP).......................... -- --
U.S. Bond Market Index Fund.................................. 12.8% 11.1%
U.S. Equity Index Fund....................................... 6.0% 4.8%
International Equity Index Fund.............................. 11.1% 9.2%
Loan Fund (for the BASSP).................................... 100.0% 100%
Loan Fund (for the BASP)..................................... -- --
ESOP Unallocated Shares Fund (for the BASSP)................. 100.0% 100.0%
ESOP Unallocated Shares Fund (for the BASP).................. -- --
</TABLE>
9
<PAGE>
At December 31, the financial position of the Master Trust was as follows:
<TABLE>
<CAPTION>
1994 1993
----------- -----------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
ASSETS:
Investments at fair value:
Bell Atlantic Shares Fund--BASSP:
Bell Atlantic Corporation common shares............ $ 710,249 $ 805,178
Temporary cash investments......................... 26,074 11,810
Bell Atlantic Shares Fund--BASP:
Bell Atlantic Corporation common shares............ 860,361 960,455
Temporary cash investments......................... 12,656 11,038
Government Money Market Fund:
Temporary cash investments......................... 96,256 97,958
Interest Income Fund--BASSP:
Contracts with insurance companies and commercial
banks............................................. 269,687 240,864
Temporary cash investments......................... 476 10,672
Interest Income Fund--BASP:
Contracts with insurance companies and commercial
banks............................................. 540,659 530,588
Temporary cash investments......................... 3,105 2,203
U.S. Bond Market Index Fund:
Fund shares........................................ 38,440 42,842
Temporary cash investments......................... 68 40
U.S. Equity Index Fund:
Fund shares........................................ 239,178 235,911
Temporary cash investments......................... 917 3,039
International Equity Index Fund:
Fund shares........................................ 62,152 37,461
Temporary cash investments......................... 811 105
Loan Fund--BASSP:
Loans receivable from participants................. 30,420 24,491
Loan Fund--BASP:
Loans receivable from participants................. 47,690 45,769
ESOP Unallocated Shares Fund--BASSP:
Bell Atlantic Corporation common shares............ 191,615 263,646
Temporary cash investments......................... 8,635 7,915
ESOP Unallocated Shares Fund--BASP:
Bell Atlantic Corporation common shares............ 305,841 420,812
Temporary cash investments......................... 13,680 13,675
----------- -----------
Total investments................................ 3,458,970 3,766,472
Receivables:
Dividends and interest income...................... 4,476 6,617
Receivables for investments sold................... 7,113 2,801
----------- -----------
Total assets..................................... 3,470,559 3,775,890
LIABILITIES:
Payable for investments purchased................... 23,404 19,779
----------- -----------
Net investments.................................. 3,447,155 $3,756,111
=========== ===========
Investments at cost: ................................. $3,125,178 $3,023,806
=========== ===========
</TABLE>
See Schedule I, Bell Atlantic Master Savings Trust Schedule of Investments.
The Plan's principal financial instrument subject to credit risk is the
investment in the Master Trust. The Master Trust consists of separate
investment funds, as defined by the Plan, with different investment objectives.
The degree and concentration of credit risk varies by fund depending upon the
type and diversity of investments. The schedule of investments depicts the
types of investments and their proportionate share of each investment fund.
10
<PAGE>
BASSP'S SHARE OF MASTER TRUST INVESTMENT ACTIVITIES.
The Plan's allocated share of Master Trust investment activities is based
upon the total of each individual Plan participant's share of the Master Trust
investment activities during the years ended December 31, 1994 and 1993.
The Master Trust's investment activities for the year ended December 31 was
as follows:
<TABLE>
<CAPTION>
1994 1993
----------- -----------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
Investment Activities:
Dividends on Bell Atlantic Corporation common
shares:
Non-ESOP shares................................ $ 84,295 $ 76,824
ESOP shares.................................... 29,825 33,446
Other dividends................................. 7,138 7,085
Interest Income Fund (BASP) income.............. 33,650 35,991
Interest Income Fund (BASSP) income............. 15,554 16,740
Other interest.................................. 13,597 11,569
Net (depreciation) appreciation in value of in-
vestments...................................... (405,143) 350,526
----------- ----------
Net investment activities................... (221,084) $ 532,181
=========== ==========
Allocated share of net investment activities:
BASP............................................ $(117,020) $ 320,825
BASSP........................................... (104,064) 211,356
</TABLE>
The value per share of Bell Atlantic common stock decreased from $59.38 at
December 31, 1993 to $49.75 at December 31, 1994. This represents a 16.22%
decrease in the value per share. At December 31, 1994, approximately 58% of
BASSP assets and 40% of BASP assets were invested in the Bell Atlantic Shares
Funds. Between January 1 and April 19, 1995, Bell Atlantic common stock closing
prices have ranged from $48.88 to $54.63 per share.
During 1993, the Plan purchased 76,866 shares of Bell Atlantic common stock
for $4,424,000 directly from Bell Atlantic. In addition, during 1994 and 1993,
the participating employing companies transferred 230,738 and 159,800 shares of
Bell Atlantic common stock, valued at $11,756,000 and $8,776,000 respectively,
to the Plan for employing company matching allocations to employee accounts.
5. LEVERAGED ESOP NOTES PAYABLE
The Leveraged ESOP notes payable bear an 8.17% interest rate subject to
adjustment (maximum 10.25% and minimum 6.77%) due to changes in the Federal
income tax rate or changes in the Federal law regarding the alternative minimum
tax. Interest and principal payments are guaranteed by Bell Atlantic and are
due on January 1 and July 1 of each year; principal payments began July 1,
1990.
The outstanding principal is payable in amounts ranging from 6.77% to 16.3%
of the original amount ($304.3 million) from 1993 to 1999, respectively. The
final payment will be made on January 1, 2000. The principal amounts under the
notes are due as follows (in thousands):
<TABLE>
<S> <C>
1995.................................... $ 28,299
1996.................................... 32,974
1997.................................... 38,097
1998.................................... 43,713
1999.................................... 49,867
2000.................................... 27,113
--------
$220,063
========
</TABLE>
11
<PAGE>
The fair value of the Leveraged ESOP notes payable is based on quoted market
prices for the same or similar instruments. As of December 31, 1994, the
carrying amount and the estimated fair value of the notes payable were:
<TABLE>
<CAPTION>
CARRYING FAIR
AMOUNT VALUE
-----------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
BASP............................................... $351,248 $364,139
BASSP.............................................. 220,063 228,140
----------- -----------
$571,311 $592,279
=========== ===========
</TABLE>
6. TAX DETERMINATION
On May 12, 1990, the Internal Revenue Service issued a ruling that the Plan
meets the requirements of Section 401(a) of the Internal Revenue Code of 1986
(the "Code") and is exempt from Federal income taxes under Section 501(a) of
the Code and that the ESOP portion of the Plan qualifies as an employee stock
ownership plan within the meaning of Section 4975(e)(7) of the Code.
7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for plan benefits
per the financial statements to the Form 5500:
<TABLE>
<CAPTION>
1994
----------------------
(DOLLARS IN THOUSANDS)
<S> <C>
Net assets available for benefits per the
financial statements............................. $1,048,315
Amounts allocated to withdrawing participants..... (9,592)
----------
Net assets available for benefits per the Form
5500............................................. $1,038,723
==========
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
1994
----------------------
(DOLLARS IN THOUSANDS)
<S> <C>
Benefits paid to participants per the financial
statements........................................ $66,432
Add: Amounts allocated to withdrawing participants
at December 31, 1994.............................. 9,592
Less: Amounts allocated to withdrawing participants
at December 31, 1993.............................. (5,382)
-------
Benefits paid to participants per the Form 5500.... $70,642
=======
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
12
<PAGE>
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE BELL
ATLANTIC CORPORATE EMPLOYEES' BENEFITS COMMITTEE HAS DULY CAUSED THIS ANNUAL
REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED.
Bell Atlantic Savings and Security
Plan
(Non-Salaried Employees)
Date: April 28, 1995
/s/ Barbara L. Connor
By__________________________________
BARBARA L. CONNOR
(Member of the Bell Atlantic
Corporate Employees' Benefits
Committee)
13
<PAGE>
SCHEDULE I
BELL ATLANTIC MASTER SAVINGS TRUST
SCHEDULE OF INVESTMENTS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
DECEMBER 31, 1994
----------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- ----------- -------- --------
BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
<S> <C> <C> <C>
*Bell Atlantic Corporation Common Shares--
98.6%......................................... 17,293,682 shs. $714,751 $860,361
Temporary Cash Investments--1.4%............... $ 12,656 12,656 12,656
-------- --------
Total.................................... 727,407 873,017
-------- --------
BELL ATLANTIC SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
*Bell Atlantic Corporation Common Shares--
96.5%......................................... 14,276,353 shs. 581,943 710,249
Temporary Cash Investments--3.5%............... $ 26,074 26,074 26,074
-------- --------
Total.................................... 608,017 736,323
-------- --------
GOVERNMENT MONEY MARKET FUND
Temporary Cash Investments--100.0%
BT Pyramid Government Securities Cash Fund... 96,256 96,256 96,256
-------- --------
Total.................................... 96,256 96,256
-------- --------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
+Contracts with Insurance Companies and
Commercial Banks--99.4%.......................
American Int'l Life Assurance, 7.02% Maturing
10/1/99..................................... 7,438 7,438 7,438
American Int'l Life Assurance, 5.25% Maturing
4/1/98...................................... 10,504 10,504 10,504
American Int'l Life Assurance, 5.41% Maturing
7/1/96...................................... 5,888 5,888 5,888
Continental Assurance, 5.30% Maturing
10/1/95..................................... 24,323 24,323 24,323
Continental Assurance, 8.75% Maturing 4/1/96. 19,121 19,121 19,121
John Hancock Mutual Life Ins. Co., 5.45%
Maturing 4/1/96............................. 32,238 32,238 32,238
John Hancock Mutual Life Ins. Co., 6.31%
Maturing 10/1/95............................ 9,314 9,314 9,314
John Hancock Mutual Life Ins. Co., 6.60%
Maturing 10/1/99............................ 16,840 16,840 16,840
ITT Hartford Life Ins. Co., 8.54% Maturing
7/1/95...................................... 36,122 36,122 36,122
Metropolitan Life Ins. Co., 5.58% Maturing
1/1/98...................................... 14,309 14,309 14,309
Metropolitan Life Ins. Co., 6.47% Maturing
4/1/98...................................... 39,390 39,390 39,390
Metropolitan Life Ins. Co., 5.08% Maturing
1/1/97...................................... 24,031 24,031 24,031
#MBL Life Assurance Corp., 3.0% no maturity
date........................................ 7,136 7,136 7,136
New York Life, 5.18% Maturing 7/1/98......... 22,338 22,338 22,338
New York Life, 7.20% Maturing 1/1/2000....... 22,323 22,323 22,323
New York Life, 6.75% Maturing 7/1/99......... 38,501 38,501 38,501
Principal Mutual Life Ins. Co., 5.10%
Maturing 1/2/97............................. 14,202 14,202 14,202
Principal Mutual Life Ins. Co., 5.90%
Maturing 9/30/97............................ 29,582 29,582 29,582
Principal Mutual Life Ins. Co., 7.84%
Maturing 3/31/96............................ 15,604 15,604 15,604
Principal Mutual Life Ins. Co., 6.00%
Maturing 7/1/98............................. 19,965 19,965 19,965
Provident Nat'l Assurance, 5.12% Maturing
1/2/97...................................... 28,479 28,479 28,479
Provident Nat'l Assurance, 4.59% Maturing
4/1/97...................................... 27,254 27,254 27,254
</TABLE>
S-1
<PAGE>
SCHEDULE I
<TABLE>
<CAPTION>
DECEMBER 31, 1994
---------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- --------- -------- --------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES--
(CONTINUED):
<S> <C> <C> <C>
The Prudential Ins. Co. of America, 9.06% Maturing
10/1/96............................................ $20,839 $20,839 $20,839
The Prudential Ins. Co. of America, 8.08% Maturing
4/1/97............................................. 19,921 19,921 19,921
The Prudential Ins. Co. of America, 5.91% Maturing
7/1/98............................................. 15,896 15,896 15,896
The Prudential Ins. Co. of America, 5.04% Maturing
1/1/98............................................. 10,119 10,119 10,119
Union Bank of Switzerland, 6.96% Maturing 1/2/95.... 8,982 8,982 8,982
-------- --------
540,659 540,659
-------- --------
Temporary Cash Investments--0.6%
BT Pyramid Government Securities Cash Fund......... 3,105 3,105 3,105
-------- --------
Total........................................... 543,764 543,764
-------- --------
INTEREST INCOME FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
+Contracts with Insurance Companies and Commercial Banks--99.8%
American Int'l Life Assurance, 5.11% Maturing
7/1/98............................................. 6,295 6,295 6,295
American Int'l Life Assurance, 7.02% Maturing
10/1/99............................................ 7,467 7,467 7,467
American Int'l Life Assurance, 5.25% Maturing
4/1/98............................................. 4,949 4,949 4,949
Bankers Trust (Delaware), 8.88% Maturing 10/1/95.... 10,950 10,950 10,950
Continental Assurance, 5.26% Maturing 10/2/95....... 13,775 13,775 13,775
Continental Assurance, 8.75% Maturing 7/1/96........ 5,833 5,833 5,833
John Hancock Mutual Life Ins. Co., 5.21% Maturing
4/1/96............................................. 14,685 14,685 14,685
John Hancock Mutual Life Ins. Co., 6.12% Maturing
7/1/95............................................. 4,736 4,736 4,736
John Hancock Mutual Life Ins. Co., 6.57% Maturing
10/1/99............................................ 9,295 9,295 9,295
Metropolitan Life Ins. Co., 6.47% Maturing 4/1/98... 16,291 16,291 16,291
Metropolitan Life Ins. Co., 5.04% Maturing 1/1/97... 12,473 12,473 12,473
Metropolitan Life Ins. Co., 5.20% Maturing 7/1/98... 9,580 9,580 9,580
New York Life, 5.35% Maturing 7/1/95................ 11,308 11,308 11,308
New York Life, 5.05% Maturing 4/1/97................ 5,233 5,233 5,233
New York Life, 5.13% Maturing 7/1/98................ 6,372 6,372 6,372
New York Life, 6.75% Maturing 7/1/99................ 7,880 7,880 7,880
New York Life, 7.20% Maturing 10/1/99............... 7,471 7,471 7,471
New York Life, 5.92% Maturing 1/1/99................ 10,042 10,042 10,042
Principal Mutual Life Ins. Co., 5.90% Maturing
10/1/97............................................ 17,327 17,327 17,327
Principal Mutual Life Ins. Co., 5.20% Maturing
3/31/97............................................ 10,383 10,383 10,383
Principal Mutual Life Ins. Co., 7.84% Maturing
3/31/96............................................ 3,937 3,937 3,937
Provident Nat'l Assurance, 8.49% Maturing 7/1/95.... 3,851 3,851 3,851
Provident Nat'l Assurance, 4.62% Maturing 7/1/97.... 14,500 14,500 14,500
Provident Nat'l Assurance, 5.10% Maturing 4/1/97.... 6,647 6,647 6,647
The Prudential Ins. Co. of America, 6.78% Maturing
1/1/99............................................. 16,068 16,068 16,068
The Prudential Ins. Co. of America, 5.88% Maturing
7/1/98............................................. 8,150 8,150 8,150
The Prudential Ins. Co. of America, 8.10% Maturing
7/1/96............................................. 13,802 13,802 13,802
Principal Mutual, 6.00% Maturing 7/1/98............. 5,410 5,410 5,410
Union Bank of Switzerland, 6.96% Maturing 1/1/95.... 4,977 4,977 4,977
-------- --------
269,687 269,687
-------- --------
Temporary Cash Investments--0.2%
BT Pyramid Government Securities Cash Fund........... 476 476 476
-------- --------
Total........................................... 270,163 270,163
-------- --------
</TABLE>
S-2
<PAGE>
SCHEDULE I
<TABLE>
<CAPTION>
DECEMBER 31, 1994
------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- --------- ------- -------
U.S. BOND MARKET INDEX FUND
<S> <C> <C> <C>
Bond Funds--99.8%
U.S. Debt Index Fund............................. 1,943,119 shs. $40,577 $37,624
Daily U.S. Debt Market Fund...................... 71,573 816 816
------- -------
41,393 38,440
------- -------
Temporary Cash Investments--0.2%
BT Pyramid Government Securities Cash Fund....... $ 68 68 68
------- -------
Total........................................ 41,461 38,508
------- -------
U.S. EQUITY INDEX FUND
Pooled Common Stock--99.6%
*Mellon E.B. Russell 1000 Index Fund............. 878,444 shs. 187,071 206,062
Mellon E.B. Russell 2000 Index Fund.............. 120,168 19,786 23,743
E.B. Daily Opening Stock Index Fund.............. 82,673 9,278 9,373
------- -------
216,135 239,178
------- -------
Temporary Cash Investments--0.4%
BT Pyramid Government Securities Cash Fund....... $ 917 917 917
------- -------
Total........................................ 217,052 240,095
------- -------
INTERNATIONAL EQUITY INDEX FUND
Pooled Common Stock--98.8%
International Stock Performance Index............ 163,953 shs. 1,959 1,969
State Street Bank--Australia..................... 89,584 1,388 1,581
State Street Bank--Austria....................... 36,829 833 870
State Street Bank--Belgium....................... 55,541 906 1,062
State Street Bank--Denmark....................... 31,123 606 660
State Street Bank--Finland....................... 40,378 337 575
State Street Bank--France........................ 310,868 6,575 6,649
State Street Bank--Germany....................... 411,452 8,183 9,317
State Street Bank--Hong Kong..................... 14,003 519 539
State Street Bank--Ireland....................... 19,791 217 254
State Street Bank--Italy......................... 373,188 4,390 4,689
State Street Bank--Japan......................... 2,067,206 18,044 20,972
State Street Bank--Malaysia...................... 23,104 292 314
State Street Bank--Netherland.................... 65,773 1,430 1,775
State Street Bank--New Zealand................... 18,651 196 256
State Street Bank--Norway........................ 29,824 468 595
State Street Bank--Singapore..................... 9,084 240 321
State Street Bank--Spain......................... 214,150 2,203 2,182
State Street Bank--Sweden........................ 52,699 886 1,066
State Street Bank--Switzerland................... 54,394 1,000 1,236
State Street Bank--United Kingdom................ 263,751 5,030 5,270
------- -------
55,702 62,152
------- -------
Temporary Cash Investments--1.2%
BT Pyramid Government Securities Cash Fund....... $ 811 811 811
------- -------
Total........................................ 56,513 62,963
------- -------
</TABLE>
S-3
<PAGE>
SCHEDULE I
<TABLE>
<CAPTION>
DECEMBER 31, 1994
------------------------------------
NUMBER OF
SHARES OR
PRINCIPAL FAIR
NAME OF ISSUER AND TITLE OF ISSUE AMOUNT COST VALUE
--------------------------------- --------- ---------- ----------
LOAN FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
<S> <C> <C> <C>
Participant Loan Obligations--6.87% to 9.5%.. $ 47,690 $ 47,690
---------- ----------
Total Loan Fund........................ 47,690 47,690
---------- ----------
LOAN FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
Participant Loan Obligations--6.87% to 9.5%.. 30,420 30,420
---------- ----------
Total Loan Fund........................ 30,420 30,420
---------- ----------
ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS PLAN FOR SALARIED EMPLOYEES
*Bell Atlantic Corporation Common Shares--
95.7%....................................... 6,147,565 shs. 285,346 305,841
Temporary Cash Investments--4.3%............. $ 13,680 13,680 13,680
---------- ----------
Total.................................. 299,026 319,521
---------- ----------
ESOP UNALLOCATED SHARES FUND--BELL ATLANTIC SAVINGS AND SECURITY PLAN
*Bell Atlantic Corporation Common Shares--
95.7%....................................... 3,851,561 shs. 178,774 191,615
Temporary Cash Investments--4.3%............. $ 8,635 8,635 8,635
---------- ----------
Total.................................. 187,409 200,250
---------- ----------
Grand Total............................ $3,125,178 $3,458,970
---------- ----------
</TABLE>
- --------
* Investment represents 5% or more of the net investments of the Master Trust.
+ Under these contracts the respective insurance companies and commercial banks
contractually agree to the repayment of principal and the crediting of
interest. The composite effective annual interest rate earned on all
contracts in 1994, net of third party expenses and after the effect of cash
flows, was 6.4% for the BASP and 6.1% for the BASSP. Each quarter a projected
annualized interest rate is computed for the BASP and BASSP. The actual yield
may vary from the projected interest rate depending upon the rates for new
contracts that have been added to the Funds, actual interest earned, payment
performance of contract issuers, the timing of cash flows into and out of the
Funds, and the timing of the investment of those cash flows.
# In July 1991, Mutual Benefit Life Insurance Company ("MBL"), an issuer of an
insurance contract for the BASP's IIF, was placed under the control of New
Jersey insurance regulators. Since January 1992, interest on the contract has
been accrued at a reduced rate of 3.0% per annum. In November 1993, a
Rehabilitation Plan was confirmed by a New Jersey court. The Rehabilitation
Plan provided MBL contract holders with an opportunity to either (i) cash out
at a significantly reduced contract value or (ii) elect to be subject to the
terms of the Rehabilitation Plan under which contract balances are preserved
at full value and are subject to certain minimum interest rate guarantees. To
the extent that actual returns either achieve or exceed the guaranteed
minimums, adjustments will be recorded on a prospective basis. Any adjustment
is not expected to have a material effect on the BASP IIF yield. Contract
balances are expected to be paid out in a series of five annual installments
beginning in 2000. Contract holders electing coverage under the
Rehabilitation Plan retain the right to cash out at a reduced value. Bell
Atlantic has directed the Master Trust's trustee to elect coverage under the
Rehabilitation Plan. Although the Rehabilitation Plan has been approved, it
is subject to appeals by a group of creditors and may be amended or revised.
Percentages represent percentage of total investments of each fund.
S-4
<PAGE>
EXHIBIT 24
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration statements
of Bell Atlantic Corporation on Form S-8 (File Nos. 33-10378 and 2-92149) of
our report dated April 19, 1995 on our audits of the financial statements of
the Bell Atlantic Savings and Security Plan (Non-Salaried Employees) as of
December 31, 1994 and 1993 and for the years then ended, and the schedule of
investments of the Bell Atlantic Master Savings Trust as of December 31, 1994,
which report is included in this Annual Report on Form 11-K, which is filed as
Exhibit 99b to Form 10-K of Bell Atlantic Corporation for the year ended
December 31, 1994.
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
April 28, 1995
