28 EXHIBIT 99C.3 CONSOLIDATED STATEMENTS OF U S WEST, Inc. CASH FLOWS (UNAUDITED) Quarter Ended March 31, In millions 1996 1995 - - -------------------------------------------------------------------- OPERATING ACTIVITIES Net income $331 $330 Adjustments to net income: Depreciation and amortization 584 560 Equity losses in unconsolidated ventures 66 57 Cumulative effect of change in accounting principle (34) - Gain on sales of rural telephone exchanges - (63) Deferred income taxes and amortization of investment tax credits 7 20 Changes in operating assets and liabilities: Restructuring payments (46) (82) Postretirement medical and life costs, net of cash fundings (34) (174) Accounts and notes receivable 92 32 Inventories, supplies and other (60) (43) Accounts payable and accrued liabilities 31 (103) Other - net (22) 7 - - -------------------------------------------------------------------- Cash provided by operating activities 915 541 - - -------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (757) (617) Investment in international ventures (104) (182) Proceeds from (payment on) disposals of property, plant and equipment (7) 92 Cash (to) from net investment in assets held for sale 3 (60) Other - net (24) (63) - - -------------------------------------------------------------------- Cash (used for) investing activities (889) (830) - - -------------------------------------------------------------------- FINANCING ACTIVITIES Net proceeds from issuance of short-term debt 60 678 Proceeds from issuance of long-term debt 76 - Repayments of long-term debt (121) (168) Dividends paid on common stock (234) (230) Proceeds from issuance of common stock 71 11 Purchases of treasury stock - (63) - - -------------------------------------------------------------------- Cash (used for) provided by financing activities (148) 228 - - -------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Decrease (122) (61) Beginning balance 192 209 - - -------------------------------------------------------------------- Ending balance $70 $148 ====================================================================