<BTB> EXHIBIT 99A.4 COMBINED STATEMENTS OF U S WEST COMMUNICATIONS GROUP CASH FLOWS (UNAUDITED) Six Months Ended June 30, In millions 1997 1996 - - --------------------------------------------------------------------- OPERATING ACTIVITIES Net income $ 671 $ 652 Adjustments to net income: Depreciation and amortization 1,057 1,035 Gains on sales of rural telephone exchanges (47) (49) Cumulative effect of change in accounting principle - (34) Deferred income taxes and amortization of investment tax credits (17) (3) Changes in operating assets and liabilities: Restructuring payments (45) (74) Postretirement medical and life costs, net of cash fundings 3 (30) Accounts receivable 17 57 Inventories, supplies and other (58) (35) Accounts payable and accrued liabilities 336 (62) Other - net 85 (28) - - --------------------------------------------------------------------- Cash provided by operating activities 2,002 1,429 - - --------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (841) (1,266) Proceeds from sales of rural telephone exchanges 28 111 Proceeds from (payments on) disposals of property, plant, and equipment 4 (7) - - --------------------------------------------------------------------- Cash (used for) investing activities (809) (1,162) - - --------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds from (repayments on) issuance of short-term debt (662) 260 Repayments of long-term debt (85) (253) Dividends paid on common stock (475) (467) Proceeds from issuance of common stock 38 76 - - --------------------------------------------------------------------- Cash (used for) financing activities (1,184) (384) - - --------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Increase (decrease) 9 (117) Beginning balance 80 172 - - --------------------------------------------------------------------- Ending balance $ 89 $ 55 ===================================================================== 10