EXHIBIT 99C.3 CONSOLIDATED STATEMENTS OF U S WEST, Inc. CASH FLOWS (UNAUDITED) Six Months Ended June 30, In millions 1996 1995 - -------------------------------------------------------------------- OPERATING ACTIVITIES Net income $644 $648 Adjustments to net income: Depreciation and amortization 1,172 1,122 Equity losses in unconsolidated ventures 143 90 Gains on sales of rural telephone exchanges (49) (78) Cumulative effect of change in accounting principle (34) - Deferred income taxes and amortization of investment tax credits (50) 63 Changes in operating assets and liabilities: Restructuring payments (82) (180) Postretirement medical and life costs, net of cash fundings (24) (144) Accounts and notes receivable 21 (127) Inventories, supplies and other (45) (68) Accounts payable and accrued liabilities (55) 76 Other - net (25) 29 - -------------------------------------------------------------------- Cash provided by operating activities 1,616 1,431 - -------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (1,509) (1,265) Investment in international ventures (139) (291) Proceeds from disposals of property, plant and equipment 119 112 Cash (to) from net investment in assets held for sale 93 (37) Other - net (74) (281) - -------------------------------------------------------------------- Cash (used for) investing activities (1,510) (1,762) - -------------------------------------------------------------------- FINANCING ACTIVITIES Net proceeds from issuance of short-term debt 340 1,103 Proceeds from issuance of long-term debt 330 - Repayments of long-term debt (476) (390) Dividends paid on common and preferred stock (469) (464) Proceeds from issuance of common stock 104 23 Purchases of treasury stock - (63) - -------------------------------------------------------------------- Cash (used for) provided by financing activities (171) 209 - -------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Decrease (65) (122) Beginning balance 192 209 - -------------------------------------------------------------------- Ending balance $127 $87 ==================================================================== <FN> <F1> Note: Certain reclassifications within the financial statements have been made to conform to the current year presentation. </FN>