EXHIBIT 99A.1 COMBINED STATEMENTS OF OPERATIONS U S WEST COMMUNICATIONS GROUP (UNAUDITED) <BTB> Quarter Ended March 31, Percent Dollars in millions 1997 1996 Change -------------------------------------------------------------------- OPERATING REVENUES Local service $1,231 $1,145 7.5 Interstate access service 687 622 10.5 Intrastate access service 200 190 5.3 Long-distance network services 250 290 (13.8) Other services 219 218 0.5 -------------------- Total operating revenues 2,587 2,465 5.0 -------------------- OPERATING EXPENSES Employee-related expenses 864 867 (0.3) Other operating expenses 445 388 14.7 Taxes other than income taxes 107 97 10.3 Depreciation and amortization 527 517 1.9 -------------------- Total operating expenses 1,943 1,869 4.0 -------------------- Income from operations 644 596 8.1 Interest expense 103 111 (7.2) Gain on sale of rural telephone exchanges 18 - - Other expense - net 22 16 37.5 -------------------- Income before income taxes and cumulative effect of change in accounting principle 537 469 14.5 Provision for income taxes 198 175 13.1 -------------------- Income before cumulative effect of change in accounting principle 339 294 15.3 Cumulative effect of change in accounting principle - net of tax - 34 - -------------------- NET INCOME $339 $328 3.4 ==================== EXHIBIT 99A.1 (continued) COMBINED STATEMENTS OF OPERATIONS U S WEST COMMUNICATIONS GROUP (UNAUDITED) Quarter Ended Dollars in millions (except March 31, Percent per share amounts) 1997 1996 Change -------------------------------------------------------------------- Average common shares outstanding 481.3 475.1 1.3 ==================== Earnings per common share: Income before cumulative effect of change in accounting principle $0.70 $0.62 12.9 Cumulative effect of change in accounting principle - 0.07 - -------------------- Earnings per common share $0.70 $0.69 1.4 ==================== Normalized income: Reported net income $339 $328 3.4 Adjustments to normalize net income: Rural exchange sale (11) - - Cumulative effect of change in accounting principle - net of tax - (34) - Current year effect of change in accounting principle - net of tax - (5) - -------------------- Normalized income $328 $289 13.5 ==================== Normalized earnings per common share: Reported net income $0.70 $0.69 1.4 Adjustments to normalize net income: Rural exchange sale (0.02) - - Cumulative effect of change in accounting principle - net of tax - (0.07) - Current year effect of change in accounting principle - net of tax - (0.01) - -------------------- Normalized earnings per common share $0.68 $0.61 11.5 ====================