EXHIBIT 99A.4
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS Group
(UNAUDITED)
Quarter Ended Nine Months Ended
September 30, % September 30, %
In millions 1995 1994 Change 1995 1994 Change
- --------------------- -------- ------- ------ ------- ------- ------
OPERATING REVENUES
Local service $1,105 $1,034 6.9 $3,231 $3,035 6.5
Interstate access 594 573 3.7 1,774 1,691 4.9
Intrastate access 186 188 (1.1) 558 541 3.1
Long-distance network 298 323 (7.7) 891 1,019 (12.6)
Other services 206 198 4.0 591 564 4.8
-------- ------ ------ -------
Total operating
revenue 2,389 2,316 3.2 7,045 6,850 2.8
-------- ------ ------ -------
OPERATING EXPENSES
Employee-related 835 828 0.8 2,479 2,411 2.8
Other operating 404 389 3.9 1,099 1,123 (2.1)
Taxes other than
income taxes 95 102 (6.9) 306 301 1.7
Depreciation & amort. 513 476 7.8 1,514 1,420 6.6
-------- ------ ------- -------
Total operating
expenses 1,847 1,795 2.9 5,398 5,255 2.7
-------- ------ ------- -------
Income from operations 542 521 4.0 1,647 1,595 3.3
Interest expense 108 94 14.9 315 277 13.7
Gain on sales of rural
telephone exchanges 34 - - 112 48 -
Other expense - net 14 5 - 30 21 42.9
-------- ------- ------- -------
Income before income
taxes and extraordinary
item 454 422 7.6 1,414 1,345 5.1
Income taxes 162 155 4.5 514 494 4.0
-------- ------- ------- -------
Income before extra-
ordinary item 292 267 9.4 900 851 5.8
Extraordinary item:
Early extinguishment
of debt, net of tax (5) - - (5) - -
-------- ------- ------- -------
NET INCOME $287 $267 7.5 $895 $851 5.2
======== ======= ======= =======
Pro forma average
shares outstanding 471.2 455.0 3.6 470.1 451.0 4.2
======== ======= ======= =======
Note: Certain reclassifications within the financial statements have
been made to conform to the current year presentation.
EXHIBIT 99A.4 (continued)
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS Group
(UNAUDITED)
Quarter Ended Nine Months Ended
September 30, % September 30, %
1995 1994 Change 1995 1994 Change
- --------------------- -------- ------- ------ ------- ------- ------
Pro forma earnings
per share:
Income before $0.62 $0.59 5.1 $1.91 $1.89 1.1
extraordinary item
Extraordinary item (0.01) - - (0.01) - -
------- ------- ------ -------
Pro forma earnings $0.61 $0.59 3.4 $1.90 $1.89 0.5
per share ======= ======= ====== =======