BELL ATLANTIC PLANS FOURTH-QUARTER CHARGE OF APPROXIMATELY 15 CENTS FOR HEALTH-CARE EXPENSE ADJUSTMENTS
BELL ATLANTIC PLANS FOURTH-QUARTER CHARGE OF
APPROXIMATELY 15 CENTS FOR HEALTH-CARE EXPENSE ADJUSTMENTS
PHILADELPHIA, Nov. 12 /PRNewswire/ -- Bell Atlantic Corporation (NYSE: BEL) today said that it plans to record an additional, annual charge of approximately 15 cents per share for retiree health-care expense beginning in the fourth quarter of 1991.
The charge is in connection with its underlying actuarial assumptions for health-care costs for certain current and future retirees and is consistent with the company's long-standing, conservative accounting practice.
"This is a smart step for Bell Atlantic to take at this time," said Bell Atlantic Chairman and Chief Executive Officer Raymond W. Smith. "Bell Atlantic recently expanded medical cost-sharing with active and retired employees as an important cost-containment measure. Nevertheless, health-care costs continue to increase for Bell Atlantic as well as other companies. This revision in the actuarial assumptions made in conjunction with previous accruals for health-care benefits for retirees will result in more realistic expense recognition for this obligation in our ongoing financial statements. These additional expenses will be non-cash in nature. It should be noted that Bell Atlantic is not implementing Financial Accounting Standards Board Statement No. 106 (SFAS 106) at this time, but this additional accrual will reduce the incremental impact when SFAS 106 is ultimately adopted."
The action announced today is in addition to the corporate initiatives which the company previously said may more than offset the 19-cent per share gain the company realized from the sale of the major portion of its temporary investment in Telecom Corporation of New Zealand earlier this year.
Bell Atlantic Corporation, based in Philadelphia, is the parent company of New Jersey Bell, Bell of Pennsylvania, Diamond State Telephone (Delaware), and the Chesapeake and Potomac Telephone companies of Maryland, Virginia, West Virginia, and Washington, D.C.
Bell Atlantic also is the parent of companies that provide wireless communications in the mid-Atlantic region and business systems services for customer-based information technology, including software, systems integration, hardware and software service and support, and financial services, throughout the U.S. and internationally. In addition, Bell Atlantic International offers network services and consulting to telephone authorities throughout the world and, in conjunction with Ameritech, owns a majority interest in Telecom Corporation of New Zealand.
/CONTACT: Cynthia M. Ciangio of Bell Atlantic, 215-963-6306/
(BEL) CO: Bell Atlantic Corporation ST: Pennsylvania IN: TLS SU: CC -- PH045 -- 3696 11/12/91 18:32 EST