Exhibit 99 A1
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS GROUP
(UNAUDITED)
Quarter Ended Nine Months Ended
September 30, % September 30, %
In millions 1996 1995 Change 1996 1995 Change
- ----------------------- --------------------------------------------
OPERATING REVENUES
Local service $1,208 $1,105 9.3 $3,532 $3,231 9.3
Interstate access 606 594 2.0 1,854 1,774 4.5
Intrastate access 192 186 3.2 571 558 2.3
Long-distance network 272 298 (8.7) 840 891 (5.7)
Other services 237 206 15.0 683 591 15.6
---------------- ----------------
Total operating revenue 2,515 2,389 5.3 7,480 7,045 6.2
---------------- ----------------
OPERATING EXPENSES
Employee-related 900 835 7.8 2,688 2,479 8.4
Other operating 402 404 (0.5) 1,177 1,099 7.1
Taxes other than
income taxes 94 95 (1.1) 291 306 (4.9)
Depreciation & amort 545 513 6.2 1,580 1,514 4.4
---------------- ----------------
Total operating expenses 1,941 1,847 5.1 5,736 5,398 6.3
---------------- ----------------
Income from operations 574 542 5.9 1,744 1,647 5.9
Interest expense 111 108 2.8 332 315 5.4
Gains on sales of rural
telephone exchanges 2 34 (94.1) 51 112 (54.5)
Other expense - net 10 14 (28.6) 22 30 (26.7)
---------------- ----------------
Income before inc taxes,
extd item & cum effect
of chg in acctg princ 455 454 0.2 1,441 1,414 1.9
Income tax provision 169 162 4.3 537 514 4.5
---------------- ----------------
Income before extd
item & cum effect of
chg in acctg princ 286 292 (2.1) 904 900 0.4
Extraordinary item:
Early extinguishment
of debt, net of tax - (5) - - (5) -
---------------- ----------------
Income before cum effect
of chg in acctg princ 286 287 (0.3) 904 895 1.0
Cum effect of chg in
acctg princ, net of tax - - - 34 - -
---------------- ----------------
NET INCOME $286 $287 (0.3) $938 $895 4.8
================ ================
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COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS GROUP
(UNAUDITED)
Quarter Ended Nine Months Ended
In millions, except September 30, % September 30, %
per share amounts 1996 1995 Change 1996 1995 Change
- -------------------------------- ------- ------------- ------- ------
Average common shares
outstanding (#1) 478.4 471.2 1.5 476.7 470.1 1.4
================ ================
Earnings per common
share: (1)<F1>
Income before extraordi-
nary item & cumulative
effect of change in
accounting principle $0.60 $0.62 (3.2) $1.90 $1.91 (0.5)
Extraordinary item - (0.01) - - (0.01) -
Cumulative effect of
change in accounting
principle - - - 0.07 - -
---------------- ----------------
Earnings per
common share $0.60 $0.61 (1.6) $1.97 $1.90 3.7
================ ================
<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 outstanding
since January 1, 1995. For periods prior to the recapitalization,
the average common shares outstanding are assumed to be equal to the
average common shares outstanding for U S WEST, Inc.
</FN>
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