SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 2, 1995
NYNEX CORPORATION
A Delaware Commission File I.R.S. Employer Identification
Corporation Number 1-8608 No. 13-3180909
1095 Avenue of the Americas, New York, New York 10036
Telephone Number (212) 395-2121
Form 8-K NYNEX CORPORATION
August 2, 1995
Item 5. Other Events
On August 2, 1995, NYNEX Corporation ("NYNEX")
announced second quarter earnings. NYNEX reported a
net loss of $2.68 billion, or ($6.28) per share, for
the second quarter of 1995, which included the effects
of discontinuing accounting for the operations of its
telephone subsidiaries, New York Telephone Company and
New England Telephone and Telegraph Company, in
accordance with the provisions of Statement of
Financial Accounting Standards No. 71, "Accounting for
the Effects of Certain Types of Regulation" ("Statement
No. 71"). As a result, NYNEX recorded in the second
quarter an extraordinary non-cash charge of
approximately $2.9 billion net of tax, or
approximately $6.84 per share. Net income for the
second quarter of 1994 was $1.2 million, or $0.00 per
share. Second quarter results included after-tax
charges for the enhanced pension offer of
$106.2 million and $291.5 million in 1995 and 1994,
respectively.
Operating revenues were $3.50 billion for the second
quarter of 1995, compared with $3.31 billion for the
second quarter of 1994. Operating expenses for the
second quarter of 1995 were $3.10 billion, compared
with $3.18 billion for the same period in 1994.
Excluding the effect of pension enhancement and
non-recurring charges, operating expenses in the second
quarter of 1995 were $2.73 billion, an increase of
0.03 percent over the second quarter of 1994.
Under Statement No. 71, NYNEX had accounted for the
effects of rate actions by federal and state regulatory
commissions by establishing certain regulatory assets
and liabilities, including the depreciation of its
telecommunications plant and equipment using asset
lives approved by regulators and the deferral of
certain costs and obligations based on approvals
received from regulators. NYNEX had continually
assessed its position and the recoverability of its
telecommunications assets with respect to Statement
No. 71. The operations of the telephone subsidiaries no
longer met the criteria for application of Statement
No. 71 due to significant changes in regulation,
including the achievement of price regulation rather
than rate-of-return regulation in New York,
Massachusetts and Maine and the ongoing efforts to
achieve price regulation in the remaining
jurisdictions, an intensifying level of competition,
and the increasingly rapid pace of technological
change.
Form 8-K NYNEX CORPORATION
August 2, 1995
Item 5. Other Events (Continued)
In accordance with Statement of Financial Accounting
Standards No. 101, "Regulated Enterprises - Accounting
for the Discontinuation of Application of FASB
Statement No. 71" ("Statement No. 101"), NYNEX has
adjusted its telecommunications plant through an
increase in accumulated depreciation, to reflect the
difference between recorded depreciation and
depreciation that would have been recorded had the
telephone subsidiaries not been subject to rate
regulation, and has eliminated the non-plant regulatory
assets and liabilities from its balance sheet. The
after-tax extraordinary charge recorded consists of
approximately $2.2 billion for the adjustment to
telecommunications plant and equipment and
approximately $0.7 billion for the write-off of non-
plant regulatory assets and liabilities. The
application of Statement No. 101 does not change the
telephone subsidiaries' accounting and reporting for
regulatory purposes.
When adjusting their net telecommunications plant, the
telephone subsidiaries will utilize shorter, more
economically realistic asset lives. The following is a
summary of average asset lives before and after the
discontinuance of Statement No. 71, for the most
significantly affected categories of plant and
equipment:
<TABLE>
<CAPTION>
Composite
Regulator-Approved Economic Asset
Category of Asset Asset Lives (in years) Lives (in years)
<S> <C> <C>
Digital Switching 16.5 12
Circuit-Other 10.5 8
Aerial Metallic Cable 21 17
Underground Metallic Cable 25 15
Buried Metallic Cable 24 17
Fiber 26 20
</TABLE>
Form 8-K NYNEX CORPORATION
August 2, 1995
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
NYNEX CORPORATION
By Peter M. Ciccone
Peter M. Ciccone
Vice President and Comptroller
August 2, 1995
