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VERIZON COMMUNICATIONS INC Annual Report (Amendment), Year Ended Dec 31, 1996

Filing Date
Filed April 18, 1997
Period End
December 31, 1996
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 18, 1997. Cited figures are marked; the original filing is the authoritative source.

This filing is Amendment No. 1 to Bell Atlantic Corporation's 10-K for fiscal 1996, filed April 18, 1997.

It does not contain the company's full annual report. It attaches Form 11-K financial statements for two employee savings plans: the Bell Atlantic Savings Plan for Salaried Employees (BASP) and the Bell Atlantic Savings and Security Plan for Non-Salaried Employees (BASSP). The registrant was Bell Atlantic (NYSE: BEL), not Verizon (VZ), which did not exist until the 2000 merger.

For investors, the document is mainly relevant as a record of employee retirement assets and Bell Atlantic stock exposure, not as a source of corporate performance data. Combined net assets available for benefits were about $3.76 billiona at December 31, 1996. BASP net assets were $2.31 billion, down from $2.35 billion in 1995, and BASSP net assets were $1.45 billion, essentially flat versus $1.45 billion a year earlier.

The Bell Atlantic Shares Fund, which holds company stock, is the largest component. Bell Atlantic common stock fell from $66.88 to $64.75b during 1996, a 3.18% decline, which reduced the value of that fund. Net investment income for BASP was $136.5 million in 1996, down from $600.6 million in 1995, mainly because the 1995 figure included large equity market gains.

Benefit payments to participants were $230.3 millionc from BASP and $144.3 million from BASSP. The plans also carry leveraged ESOP (LESOP) debt, with $270.2 million outstanding under BASP and $158.8 million under BASSP at year-end 1996. Both plans are described as subject to the pending Bell Atlantic-NYNEX merger, under which NYNEX holders would receive 0.768 Bell Atlantic shares per NYNEX share.

The filing states there are no plans regarding the merger's impact on the plans. Because the employee plans are held in a commingled Master Trust, their results largely track Bell Atlantic's share price and the performance of the index funds.

02—Key points

Key Highlights

  1. Filing type: Form 10-K/A (Amendment No. 1) for fiscal 1996, adding Form 11-K annual reports for two Bell Atlantic employee savings plans; not a full corporate 10-K.
  2. Combined plan net assets were about $3.76 billion at 12/31/96 (BASP $2.31B; BASSP $1.45B), roughly flat to slightly down from 1995.
  3. The Bell Atlantic Shares Fund, holding company stock, was about 43% of BASP assets and 64% of BASSP assets at year-end 1996.
  4. Bell Atlantic common stock declined 3.18% in 1996, from $66.88 to $64.75 per share, which reduced plan asset values.
  5. Outstanding LESOP debt was $270.2 million (BASP) and $158.8 million (BASSP), guaranteed by Bell Atlantic, with final maturities in 2005 and 2000 respectively.
  6. Benefit payments totaled $230.3 million (BASP) and $144.3 million (BASSP) in 1996, showing significant participant withdrawals.
  7. The pending NYNEX merger (0.768 Bell Atlantic shares per NYNEX share) was approved by stockholders in November 1996, with no announced plan change for the savings plans.

03—Questions

Frequently Asked Questions

  1. Does this filing contain Bell Atlantic's full annual financial results?

    No. It is a 10-K/A amendment that adds Form 11-K reports for two employee savings plans. Corporate revenue, earnings, and balance sheet data are not included and would be in the original 10-K.

  2. How did the employee savings plans perform in 1996?

    Combined net assets were about $3.76 billion at year-end 1996, roughly unchanged from 1995. BASP net assets fell about 1.8% to $2.31 billion, and BASSP was essentially flat at $1.45 billion. Declines in Bell Atlantic stock and benefit payments offset investment income.

  3. Why are the plans sensitive to Bell Atlantic's stock price?

    A large share of plan assets is invested in the Bell Atlantic Shares Fund and in the ESOP, which holds company stock. Roughly 43% of BASP and 64% of BASSP assets were in these funds at year-end 1996, so a fall in the share price, from $66.88 to $64.75 in 1996, directly reduced plan values.

  4. Does the pending NYNEX merger affect these plans?

    The filing states that Bell Atlantic has not yet determined the merger's effect on the plans, and that no plans have been made. The merger was approved by shareholders in November 1996 and remained subject to regulatory approvals and a tax-free opinion.

04—Continue

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