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VERIZON COMMUNICATIONS INC Annual Report (Amendment), Year Ended Dec 31, 1993

Filing Date
Filed April 28, 1994
Period End
December 31, 1993
Security
VZ
In the record · 2016–202610-K1110-Q328-K201

VZ filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 201 current reports (8-K) between 2016 and 2026.

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01—Abstract

Summary

Summary of the 10-K/A filed April 28, 1994. Cited figures are marked; the original filing is the authoritative source.

This filing is not a Verizon annual report.

Verizon Communications did not exist in 1994, and the document is Amendment No. 1 to Bell Atlantic Corporation's Form 10-K for fiscal 1993 (Commission File No. 1-8606). Its sole purpose is to attach the Form 11-K annual reports for two Bell Atlantic employee savings plans: the Savings Plan for Salaried Employees (BASP) and the Savings and Security Plan for Non-Salaried Employees (BASSP). It contains no corporate-level income statement, balance sheet, or segment disclosure, so it offers limited insight into Bell Atlantic's operating or financial performance.

The employee plan data show strong growth in 1993. BASP net assets rose from $1.65 billion to $1.97 billiona, and BASSP net assets rose from $920.6 million to $1.14 billion. The main driver was a 15.85% increase in Bell Atlantic's share price, from $51.25 to $59.38, which lifted the value of the company-stock funds.

Roughly 41% of BASP assets and 59% of BASSP assets were in Bell Atlantic shares funds. Both plans are leveraged ESOPs, with about $633.7 millionb of carrying value in Leveraged ESOP notes at 8.17% interest, against an estimated fair value of $707.6 million.

For investors, the main points are the concentration of employee retirement assets in Bell Atlantic stock, the modest scale of the ESOP debt relative to plan assets, and one credit risk: the plans hold a $530.6 millionc contract with Mutual Benefit Life, which is under New Jersey regulatory control and now accrues interest at 3.0%. Because the filing is a plan-level supplement, its information is limited to these employee benefit plans.

02—Key points

Key Highlights

  1. Filing is Amendment No. 1 to Bell Atlantic's 1993 Form 10-K, adding Form 11-K plan reports; it is not a Verizon filing and contains no consolidated corporate financials.
  2. BASP (salaried) net assets grew from $1.65 billion to $1.97 billion at December 31, 1993, a gain of about 19%.
  3. BASSP (non-salaried) net assets grew from $920.6 million to $1.14 billion, a gain of about 23%.
  4. Bell Atlantic common stock rose 15.85% in 1993, from $51.25 to $59.38 per share, which drove much of the plan asset growth.
  5. Leveraged ESOP notes totaled $633.7 million in carrying value (BASP $389.6 million; BASSP $244.1 million), with an estimated fair value of $707.6 million.
  6. The Mutual Benefit Life Insurance contract (within the Interest Income Fund) is under New Jersey regulatory control; it accrues interest at 3.0% and is subject to a court-confirmed rehabilitation plan that may still be appealed.
  7. Participation: 19,039 actively contributing and 6,786 inactive participants in BASP; 35,872 actively contributing and 10,130 inactive in BASSP.

03—Questions

Frequently Asked Questions

  1. Is this filing Verizon's 1993 annual report?

    No. Verizon Communications was formed in 2000. This document is Bell Atlantic Corporation's Amendment No. 1 to its 1993 Form 10-K, filed April 28, 1994. It adds Form 11-K reports for two employee savings plans and contains no consolidated corporate financial statements.

  2. How did the employee savings plans perform in 1993?

    Both plans grew substantially. BASP net assets rose from $1.65 billion to $1.97 billion, and BASSP net assets rose from $920.6 million to $1.14 billion. Most of the growth came from the rise in Bell Atlantic's share price of 15.85% during 1993, together with employee and employer contributions and investment gains, offset by distributions to participants.

  3. Why does the ESOP debt matter to investors?

    The plans' Leveraged ESOP notes carry an 8.17% rate, with principal due through 2000 and payments guaranteed by Bell Atlantic. The $633.7 million carrying amount has an estimated fair value of $707.6 million, which is above book value. These obligations are guaranteed by Bell Atlantic, so they represent a claim on the parent company.

  4. What is the main risk disclosed in the plan financials?

    The main risk is the Mutual Benefit Life contract in the Interest Income Fund, carried at $530.6 million for BASP and $240.9 million for BASSP. The insurer is under New Jersey regulatory control. Under the approved rehabilitation plan, contract holders' balances are preserved at full value but accrue interest at a reduced 3.0% rate, and the plan may still be subject to creditor appeals.

  5. How concentrated are these plans in Bell Atlantic stock?

    Heavily. About 41% of BASP assets and 59% of BASSP assets were invested in Bell Atlantic shares funds at December 31, 1993. Employer matching contributions are invested only in Bell Atlantic shares, so participants' retirement savings are tied closely to the performance of the parent company's stock.

04—Continue

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