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GTE ADOPTS FAS 106

 STAMFORD, Conn. Jan. 7 /PRNewswire/ -- GTE Corp. (NYSE: GTE) today announced that it will adopt the new accounting standard for post- retirement health care and life insurance benefits (Financial Accounting Standard No. 106) on the immediate recognition basis.
 FAS 106 requires the expected cost of post-retirement health care and life insurance benefits to be recognized during the years that employees render service. Adoption will be effective as of Jan. 1, 1992, and will result in a cumulative non-cash, after-tax charge of $2.34 billion representing past service costs.
 GTE will also adopt the new accounting standard for income taxes (FAS 109). This rule requires, among other things, that deferred tax balances be based on current income tax rates. Adoption of this new standard will result in a one-time charge of $100 million, which will also be reported as a cumulative prior-year's charge.
 In addition to the one-time charges, implementation of FAS 106 will also reduce 1992 net income from continuing operations by $137 million, or 15 cents per share, for current service costs and interest on the accumulated obligation. In future years, it is expected that the impact on earnings will be reduced as these additional costs are recognized in the rate-making process.
 As a result, GTE restated its results for the first nine months of 1992 to reflect a net loss of $1.17 billion, or $1.30 per share, compared with earnings before the restatement of $1.37 billion, or $1.51 per share.
 GTE is the fourth-largest publicly held telecommunications company in the world.
 GTE CORPORATION AND SUBSIDIARIES
 RESTATED CONDENSED SUMMARY OF CONSOLIDATED RESULTS
 FIRST THREE QUARTERS OF 1992
 (In Millions)
 Nine Months
 Ended
 First Second Third September 30
 Quarter Quarter Quarter 1992
 REVENUES AND SALES
 Telephone Operations $ 3,850 $3,978 $3,985 $11,813
 Telecommunications Products
 and Services 973 1,085 980 3,038
 Total revenues and sales $ 4,823 $5,063 $4,965 $14,851
 OPERATING INCOME
 Telephone Operations $ 977 $ 981 $1,038 $ 2,996
 Telecommunications Products
 and Services 29 57 55 141
 Operating income 1,006 1,038 1,093 3,137
 OTHER DEDUCTIONS
 Interest expense - net 346 347 336 1,029
 Other - net 37 34 56 127
 Income before income taxes 623 657 701 1,981
 Income tax provision 230 245 236 711
 INCOME FROM CONTINUING
 OPERATIONS 393 412 465 1,270
 Cumulative effect of accounting
 changes (2,441) - - (2,441)
 NET INCOME (LOSS) (2,048) 412 465 (1,171)
 Preferred stock dividends 8 7 6 21
 NET INCOME (LOSS) APPLICABLE
 TO COMMON STOCK $(2,056) $ 405 $ 459 $(1,192)
 EARNINGS (LOSS) PER COMMON SHARE(a)
 Continuing operations $ .43 $ .45 $ .52 $ 1.40
 Cumulative effect of
 accounting changes (b) (2.70) - - (2.70)
 Consolidated $ (2.27) $ .45 $ .52 $ (1.30)
 GTE CORPORATION AND SUBSIDIARIES
 NOTES TO RESTATED CONDENSED SUMMARY OF CONSOLIDATED RESULTS
 Nine Months
 Ended
 First Second Third September 30
 Quarter Quarter Quarter 1992
 INCOME FROM CONTINUING OPERATIONS,
 AS PREVIOUSLY REPORTED $ .47 $ .49 $ .55 $ 1.51
 Impact of adoption
 of FAS 106 (.04) (.04) (.03) (.11)
 INCOME FROM CONTINUING OPERATIONS,
 AS RESTATED .43 .45 .52 1.40
 Cumulative effect of accounting
 changes (b) (2.70) - - (2.70)
 NET INCOME (LOSS) $(2.27) $ .45 $ .52 $(1.30)
 (a) Results for the first three quarters of 1992 have been restated to give effect to the adoption of FAS 106 and 109 which have reduced previously reported per share results as stated above.
 (b) Computed based upon average common shares outstanding for the full year 1992.
 -0- 1/7/93
 /CONTACT: Harvey W. Greisman, 203-965-2903; or evenings, 203-226-7661; or Tony Hamilton, 203-965-2853, or evenings, 203-327-2162/
 (GTE)


CO: GTE Corp. ST: Connecticut IN: HOU SU:

LR -- NY067 -- 2691 01/07/93 12:59 EST
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Date:Jan 7, 1993
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