CONSOLIDATED BALANCE SHEETS MediaOne Group, Inc. (1) (UNAUDITED) June 30, December 31, Dollars in millions 1998 1997 - --------------------------------------- ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 384 $ 184 Accounts and notes receivable 376 604 Net investment in assets of discontinued operations (2) - 4,367 Other assets 120 179 ------------ ------------ Total current assets 880 5,334 ------------ ------------ Property, plant and equipment - net 3,379 4,272 Investment in Time Warner Entertainment 2,491 2,486 Investment in AirTouch Communications 5,015 - Net investment in international ventures 728 742 Net investment in assets held for sale 445 419 Intangible assets - net 11,886 12,597 Other assets 565 933 ------------ ------------ Total assets $ 25,389 $ 26,783 ============ ============ LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 2,075 $ 735 Accounts payable 125 395 Deferred revenue and customer deposits 79 108 Other payables 805 950 ------------ ------------ Total current liabilities 3,084 2,188 ------------ ------------ Long-term debt 3,040 8,228 Deferred income taxes 4,996 3,276 Deferred credits and other 604 587 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely Company-guaranteed debentures 561 1,080 Preferred stock subject to mandatory redemption 100 100 Shareowners' equity: Preferred shares 924 923 Common shares 10,515 10,876 Retained earnings (deficit) 1,218 (359) LESOP guarantee - (46) Accumulated other comprehensive income (loss) 347 (70) ------------ ------------ Total equity 13,004 11,324 ------------ ------------ Total liabilities and equity $ 25,389 $ 26,783 ============ ============ See footnotes on page ___.