EXHIBIT 99A.1
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS GROUP
(UNAUDITED)
Quarter Ended Six Months Ended
June 30, % June 30, %
In millions 1996 1995 Change 1996 1995 Change
- ------------------------------- ------- ------------- ------- ------
OPERATING REVENUES
Local service $1,179 $1,076 9.6 $2,324 $2,126 9.3
Interstate access 626 591 5.9 1,248 1,180 5.8
Intrastate access 189 184 2.7 379 372 1.9
Long-distance network 278 294 (5.4) 568 593 (4.2)
Other services 228 193 18.1 446 385 15.8
---------------- ----------------
Total operating revenue 2,500 2,338 6.9 4,965 4,656 6.6
---------------- ----------------
OPERATING EXPENSES
Employee-related 921 831 10.8 1,788 1,644 8.8
Other operating 387 346 11.8 775 695 11.5
Taxes other than
income taxes 100 105 (4.8) 197 211 (6.6)
Depreciation & amort. 518 502 3.2 1,035 1,001 3.4
---------------- ----------------
Total operating
expenses 1,926 1,784 8.0 3,795 3,551 6.9
---------------- ----------------
Income from operations 574 554 3.6 1,170 1,105 5.9
Interest expense 110 106 3.8 221 207 6.8
Gains on sales of rural
telephone exchanges 49 15 - 49 78 (37.2)
Other income
(expense) - net 4 (3) - (12) (16)(25.0)
---------------- ----------------
Income before income
taxes and cumulative
effect of change in
accounting principle 517 460 12.4 986 960 2.7
Income tax provision 193 167 15.6 368 352 4.5
---------------- ----------------
Income before cumulative
effect of change in
accounting principle 324 293 10.6 618 608 1.6
Cumulative effect of
change in accounting
principle - net of tax - - - 34 - -
---------------- ----------------
NET INCOME $324 $293 10.6 $652 $608 7.2
================ ================
2
EXHIBIT 99A.1 (cont'd.)
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS GROUP
(UNAUDITED)
Quarter Ended Six Months Ended
In millions, except June 30, % June 30, %
per share amounts 1996 1995 Change 1996 1995 Change
- ------------------------------- ------- ------------- ------- ------
Average common shares
outstanding (#1)<F1> 476.8 470.4 1.4 475.9 469.5 1.4
================ ================
Earnings per common
share: (#1)
Income before cumulative
effect of change in
accounting principle $0.68 $0.62 9.7 $1.30 $1.29 0.8
Cumulative effect of
change in accounting
principle - - - 0.07 - -
---------------- ----------------
Earnings per
common share $0.68 $0.62 9.7 $1.37 $1.29 6.2
================ ================
<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 for 1995 have been presented on a pro
forma basis to reflect the two classes of stock as if they were out-
standing since January 1, 1995. For periods prior to the recapitali-
zation, the average common shares outstanding are assumed to be equal
to the average common shares outstanding for U S WEST, Inc.
</FN>