EXHIBIT 99C.3
CONSOLIDATED STATEMENTS OF U S WEST, Inc.
CASH FLOWS (UNAUDITED) Year Ended
December 31,
In millions 1996 1995
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OPERATING ACTIVITIES
Net income $1,178 $1,317
Adjustments to net income:
Depreciation and amortization 2,544 2,291
Equity losses in unconsolidated ventures 346 207
Gain on merger of joint venture interest - (157)
Gains on sales of rural telephone exchanges (59) (136)
Cumulative effect of change in accounting
principle (34) -
Deferred income taxes and amortization
of investment tax credits 5 274
Changes in operating assets and liabilities:
Restructuring payments (242) (334)
Postretirement medical and life costs,
net of cash fundings 39 (24)
Accounts and notes receivable (56) (169)
Inventories, supplies and other 31 (79)
Accounts payable and accrued liabilities 225 45
Other - net 21 185
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Cash provided by operating activities 3,998 3,420
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INVESTING ACTIVITIES
Expenditures for property, plant and equipment (3,071) (2,825)
Investment in international ventures (243) (681)
Proceeds from disposals of property,
plant and equipment 189 201
Cash from net investment in assets
held for sale 213 -
Other - net (136) (201)
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Cash (used for) investing activities (3,048) (3,506)
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FINANCING ACTIVITIES
Net proceeds from (repayments of) issuance of
short-term debt 3,987 (1,281)
Proceeds from issuance of long-term debt 383 2,732
Repayments of long-term debt (4,699) (1,058)
Proceeds from issuance of trust
originated preferred securities - net 465 581
Dividends paid on common and preferred stock (948) (929)
Proceeds from issuance of common stock 168 87
Purchases of treasury stock (297) (63)
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Cash (used for) provided by financing activities (941) 69
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CASH AND CASH EQUIVALENTS
Increase (decrease) 9 (17)
Beginning balance 192 209
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Ending balance $201 $192
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