EXHIBIT 99A.5 STATEMENTS OF INCOME U S WEST COMMUNICATIONS, Inc. (UNAUDITED) (Telephone Operations Only) 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 177 171 3.5 684 626 9.3 ---------------- ---------------- Total operating revenues 2,527 2,375 6.4 9,831 9,284 5.9 ---------------- ---------------- OPERATING EXPENSES Employee-related* 852 802 6.2 3,377 3,079 9.7 Other operating* 426 428 (0.5) 1,574 1,587 (0.8) Taxes other than income taxes 95 72 31.9 379 371 2.2 Depreciation & amort 536 523 2.5 2,101 2,022 3.9 ---------------- ---------------- Total operating expenses 1,909 1,825 4.6 7,431 7,059 5.3 ---------------- ---------------- Income from operations 618 550 12.4 2,400 2,225 7.9 Interest expense 106 102 3.9 414 386 7.3 Gains on sales of rural telephone exchanges 8 24 (66.7) 59 136 (56.6) Other expense - net 19 15 26.7 44 58 (24.1) ---------------- ---------------- Income before inc taxes, extd item & cum effect of chg in acctg princ 501 457 9.6 2,001 1,917 4.4 Income tax provision 194 155 25.2 768 698 10.0 ---------------- ---------------- Income before extd item & cum effect of chg in acctg princ 307 302 1.7 1,233 1,219 1.1 Extraordinary item: Early extinguishment of debt, net of tax - (3) - - (8) - ---------------- ---------------- Income before cum effect of chg in acctg princ 307 299 2.7 1,233 1,211 1.8 Cum effect of chg in acctg princ, net of tax - - - 34 - - ---------------- ---------------- NET INCOME $307 $299 2.7 $1,267 $1,211 4.6 ================ ================ *Employee-related expenses for the year ended December 31, 1996 include the impacts of employee transfers from affiliated Communications Group companies to U S WEST Communications, Inc. (USWC) during the first half of 1995. Prior to the transfers, these affiliate employee costs were billed to USWC and reflected as affiliate expense, which is included in other operating expenses.