EXHIBIT 99A.1
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS GROUP
(UNAUDITED)
Quarter Ended Year Ended
December 31, % December 31, %
In millions 1996 1995 Change 1996 1995 Change
- - -------------------------------- ------- ------------- ------- ------
OPERATING REVENUES
Local service $1,238 $1,113 11.2 $4,770 $4,344 9.8
Interstate access 653 604 8.1 2,507 2,378 5.4
Intrastate access 199 189 5.3 770 747 3.1
Long-distance network 260 298 (12.8) 1,100 1,189 (7.5)
Other services 249 235 6.0 932 826 12.8
---------------- ----------------
Total operating revenues 2,599 2,439 6.6 10,079 9,484 6.3
---------------- ----------------
OPERATING EXPENSES
Employee-related 906 862 5.1 3,594 3,341 7.6
Other operating 457 444 2.9 1,634 1,543 5.9
Taxes other than
income taxes 98 74 32.4 389 380 2.4
Depreciation & amort 542 528 2.7 2,122 2,042 3.9
---------------- ----------------
Total operating expenses 2,003 1,908 5.0 7,739 7,306 5.9
---------------- ----------------
Income from operations 596 531 12.2 2,340 2,178 7.4
Interest expense 113 112 0.9 445 427 4.2
Gains on sales of rural
telephone exchanges 8 24 (66.7) 59 136 (56.6)
Other expense - net 19 11 72.7 41 41 -
---------------- ----------------
Income before inc taxes,
extd item & cum effect
of chg in acctg princ 472 432 9.3 1,913 1,846 3.6
Income tax provision 161 148 8.8 698 662 5.4
---------------- ----------------
Income before extd
item & cum effect of
chg in acctg princ 311 284 9.5 1,215 1,184 2.6
Extraordinary item:
Early extinguishment
of debt, net of tax - (3) - - (8) -
---------------- ----------------
Income before cum effect
of chg in acctg princ 311 281 10.7 1,215 1,176 3.3
Cum effect of chg in
acctg princ, net of tax - - - 34 - -
---------------- ----------------
NET INCOME $311 $281 10.7 $1,249 $1,176 6.2
================ ================
COMBINED STATEMENTS OF INCOME U S WEST COMMUNICATIONS GROUP
(UNAUDITED)
Quarter Ended Year Ended
In millions, except December 31, % December 31, %
per share amounts 1996 1995 Change 1996 1995 Change
- - -------------------------------- ------- ------------- ------- ------
Average common shares
outstanding (1)<F1> 479.9 472.6 1.5 477.5 470.7 1.4
================ ================
Earnings per common
share: (1)<F1>
Income before extraordi-
nary item & cumulative
effect of change in
accounting principle $0.65 $0.60 8.3 $2.55 $2.52 1.2
Extraordinary item - (0.01) - - (0.02) -
Cumulative effect of
change in accounting
principle - - - 0.07 - -
---------------- ----------------
Earnings per
common share $0.65 $0.59 10.2 $2.62 $2.50 4.8
================ ================
<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>