EXHIBIT 99C3 CONSOLIDATED STATEMENTS OF U S WEST, Inc. CASH FLOWS (UNAUDITED) Nine Months Ended September 30, In millions 1996 1995 - --------------------------------------------------------------------- OPERATING ACTIVITIES Net income $948 $964 Adjustments to net income: Depreciation and amortization 1,796 1,695 Equity losses in unconsolidated ventures 223 128 Gains on sales of rural telephone exchanges (51) (112) Cumulative effect of change in accounting principle (34) - Deferred income taxes and amortization of investment tax credits (68) 93 Changes in operating assets and liabilities: Restructuring payments (126) (268) Postretirement medical and life costs, net of cash fundings (20) (86) Accounts and notes receivable (87) (219) Inventories, supplies and other (9) (81) Accounts payable and accrued liabilities 171 88 Other - net 34 21 - --------------------------------------------------------------------- Cash provided by operating activities 2,777 2,223 - --------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (2,252) (1,943) Investment in international ventures (227) (576) Proceeds from disposals of property, plant and equipment 129 161 Cash (to) from net investment in assets held for sale 176 (108) Other - net (41) (269) - --------------------------------------------------------------------- Cash (used for) investing activities (2,215) (2,735) - --------------------------------------------------------------------- FINANCING ACTIVITIES Net proceeds from issuance of short-term debt 187 688 Proceeds from issuance of long-term debt 346 499 Repayments of long-term debt (561) (640) Proceeds from issuance of trust originated preferred securities - net - 581 Dividends paid on common and preferred stock (706) (697) Proceeds from issuance of common stock 140 43 Purchases of treasury stock - (63) - --------------------------------------------------------------------- Cash (used for) provided by financing activities (594) 411 - --------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Decrease (32) (101) Beginning balance 192 209 - --------------------------------------------------------------------- Ending balance $160 $108 ===================================================================== Note: Certain reclassifications within the financial statements have been made to conform to the current year presentation. - 5 -