1
EXHIBIT 99A.1
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS GROUP
(UNAUDITED)
Quarter Ended Year Ended
December 31, % December 31, %
In millions 1995 1994 Change 1995 1994 Change
- ------------------------------ ------- -------------- ------- -------
OPERATING REVENUES
Local service $1,113 $1,032 7.8 $4,344 $4,067 6.8
Interstate access 604 578 4.5 2,378 2,269 4.8
Intrastate access 189 188 0.5 747 729 2.5
Long-distance network 298 310 (3.9) 1,189 1,329 (10.5)
Other services 235 218 7.8 826 782 5.6
---------------- ----------------
Total operating revenue 2,439 2,326 4.9 9,484 9,176 3.4
---------------- ----------------
OPERATING EXPENSES
Employee-related 862 804 7.2 3,341 3,215 3.9
Other operating 444 424 4.7 1,543 1,547 (0.3)
Taxes other than
income taxes 74 87 (14.9) 380 388 (2.1)
Depreciation & amort. 528 488 8.2 2,042 1,908 7.0
---------------- ----------------
Total operating
expenses 1,908 1,803 5.8 7,306 7,058 3.5
---------------- ----------------
Income from operations 531 523 1.5 2,178 2,118 2.8
Interest expense 112 99 13.1 427 376 13.6
Gain on sales of rural
telephone exchanges 24 34 (29.4) 136 82 65.9
Other expense - net 11 - - 41 21 95.2
---------------- ----------------
Income before income
taxes and extraordinary
item 432 458 (5.7) 1,846 1,803 2.4
Income taxes 148 159 (6.9) 662 653 1.4
---------------- ----------------
Income before extra-
ordinary item 284 299 (5.0) 1,184 1,150 3.0
Extraordinary item:
Early extinguishment
of debt, net of tax (3) - - (8) - -
---------------- ----------------
NET INCOME $281 $299 (6.0) $1,176 $1,150 2.3
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2
EXHIBIT 99A.1 (cont'd.)
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS GROUP
(UNAUDITED)
Quarter Ended Year Ended
In millions, except December 31, % December 31, %
per share amounts 1995 1994 Change 1995 1994 Change
- ------------------------------ ------- -------------- ------- -------
Pro forma average common
shares outstanding (#1) 472.6 460.1 2.7 470.7 453.3 3.8
================ ================
Pro forma earnings
per common share: (#1)
Income before $0.60 0.65 (7.7) $2.52 2.53 (0.4)
extraordinary item
Extraordinary item (0.01) - - (0.02) - -
---------------- ----------------
Pro forma earnings
per common share $0.59 $0.65 (9.2) $2.50 $2.53 (1.2)
================ ================
<FN>
<F1>
#1: Effective November 1, 1995, each share of U S WEST, Inc.
common stock was converted into one share each of U S WEST Communi-
cations Group common stock and U S WEST Media Group common stock.
Earnings per common share have been presented on a pro forma basis
to reflect the two classes of stock as if they were outstanding
since January 1, 1994. For periods prior to the recapitalization
the average common shares outstanding used in the earnings per
average common share for the two classes of stock are assumed to
be equal to the average common shares outstanding for U S WEST,Inc.
</FN>