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VERIZON COMMUNICATIONS INC Annual Report (Amendment), Year Ended Dec 31, 1994

Filing Date
Filed April 28, 1995
Period End
December 31, 1994
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, 1995. Cited figures are marked; the original filing is the authoritative source.

This filing is not a Verizon Communications 10-K.

It is Amendment No. 1 (Form 10-K/A, dated April 28, 1995) from Bell Atlantic Corporation (Commission File No. 1-8606) to its 2014-era... no, to its 1994 Annual Report on Form 10-K. Its only content is two Form 11-K employee savings plan reports, Exhibit 99.A (Bell Atlantic Savings Plan for Salaried Employees) and Exhibit 99.B (Bell Atlantic Savings and Security Plan for Non-Salaried Employees), which cover the year ended December 31, 1994. Verizon did not exist until 2000, so the company name and ticker in the request do not match the document.

The filing contains no consolidated company financials, revenue, earnings, or segment data, so it offers little direct insight into the operating business. Its investor relevance is mainly through the plans' exposure to Bell Atlantic stock, which fell 16.22% in 1994, from $59.38 to $49.75a per share. The Salaried plan's net assets available for benefits declined to $1,824.5 million at December 31, 1994, from $1,968.0 million a year earlier.

The Non-Salaried plan's net assets fell to $1,048.3 millionb from $1,137.0 million. Both declines were driven by negative investment returns on the Bell Atlantic Shares Fund, which held roughly 40% of Salaried plan assets and 58% of Non-Salaried plan assets. Both plans also carry Leveraged ESOP notes payable at an 8.17% rate, guaranteed by Bell Atlantic.

The Salaried plan's share was $351.2 millionc carrying value versus $364.1 million fair value, and the Non-Salaried plan's share was $220.1 million versus $228.1 million. The auditor, Coopers & Lybrand, issued unqualified opinions dated April 19, 1995.

For investors, the key takeaways are that employee retirement assets are heavily concentrated in company stock, that 1994 equity market and stock price weakness reduced those balances, and that ESOP debt is a contingent obligation guaranteed by the parent. Bell Atlantic common stock traded between $48.88d and $54.63 from January 1 through April 19, 1995, somewhat above the year-end 1994 close.

02—Key points

Key Highlights

  1. Document identity: Form 10-K/A Amendment No. 1 from Bell Atlantic Corporation (not Verizon), filed April 28, 1995, adding Form 11-K plan reports for fiscal 1994.
  2. Salaried Savings Plan net assets fell to $1,824.5 million at 12/31/94 from $1,968.0 million at 12/31/93, a decline of about 7.3%.
  3. Non-Salaried Savings and Security Plan net assets fell to $1,048.3 million from $1,137.0 million, a decline of about 7.8%.
  4. Bell Atlantic common stock declined 16.22% in 1994, from $59.38 to $49.75 per share, which drove negative investment returns in the company stock funds.
  5. Roughly 40% of Salaried plan assets and 58% of Non-Salaried plan assets were invested in Bell Atlantic shares, indicating high concentration in employer stock.
  6. Leveraged ESOP notes payable totaled $571.3 million carrying value ($592.3 million fair value) across the two plans, at an 8.17% rate, guaranteed by Bell Atlantic.
  7. Participation: 18,085 actively contributing and 7,239 inactive participants in the Salaried plan; 36,003 active and 9,623 inactive in the Non-Salaried plan.

03—Questions

Frequently Asked Questions

  1. Does this filing contain Verizon's consolidated financial results?

    No. The filing is from Bell Atlantic Corporation, a predecessor company that later merged into Verizon in 2000. It contains no consolidated income statement, balance sheet, or revenue data. It consists only of two employee savings plan financial statements filed as Form 11-K exhibits.

  2. Why did the savings plans' net assets decline in 1994?

    The decline was driven mainly by investment losses. The Master Trust recorded a $405.1 million net depreciation in investment value during 1994. The Bell Atlantic Shares Fund, which held the largest share of plan assets, was hit by the 16.22% drop in the stock price. Distributions to participants, $133.8 million for the Salaried plan and $66.4 million for the Non-Salaried plan, also reduced balances, partly offset by contributions.

  3. What is the risk associated with the ESOP loans?

    The Leveraged ESOP notes are guaranteed by Bell Atlantic, so the parent company bears the repayment obligation. The notes carry an 8.17% rate, subject to adjustment within a range of 6.77% to 10.25%. Scheduled principal payments run from about $45 million in 1995 for the Salaried plan, with a final payment in January 2000. The fair value of the notes exceeded their carrying amount, at $592.3 million versus $571.3 million for both plans combined.

  4. How much of the employee retirement assets were tied to Bell Atlantic stock?

    At year-end 1994, approximately 40% of Salaried plan assets and 58% of Non-Salaried plan assets were invested in Bell Atlantic Shares Funds. This concentration means employees' retirement savings were closely tied to the company's share price, which exposes them to company-specific risk and to the price weakness seen in 1994.

04—Continue

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