EXHIBIT 12
U S WEST, INC.
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(DOLLARS IN MILLIONS)
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
1997 1996 1995 1994 1993(1)
--------- --------- --------- --------- ---------
Income before income taxes, extraordinary items and cumulative
effect of changes in accounting principles...................... $ 1,222 $ 1,840 $ 2,154 $ 2,283 $ 745
Interest expense (net of amounts capitalized).................... 1,083 612 527 442 439
Interest factor on rentals (1/3)................................. 104 91 95 96 102
Equity losses in unconsolidated ventures (less than 50% owned)... 690 168 66 -- --
Guaranteed minority interest expense............................. 87 55 14 -- --
--------- --------- --------- --------- ---------
Earnings......................................................... $ 3,186 $ 2,766 $ 2,856 $ 2,821 $ 1,286
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Interest expense................................................. $ 1,139 $ 680 $ 599 $ 486 $ 439
Interest factor on rentals (1/3)................................. 104 91 95 96 102
Guaranteed minority interest expense............................. 87 55 14 -- --
Preferred stock dividends (pretax equivalent).................... 91 15 -- -- --
--------- --------- --------- --------- ---------
Fixed charges.................................................... $ 1,421 $ 841 $ 708 $ 582 $ 541
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio of earnings to combined fixed charges and preferred stock
dividends....................................................... 2.24 3.29 4.03 4.85 2.38
(1) The 1993 ratio is based on earnings from continuing operations and includes
a restructuring charge of $1 billion. Excluding the restructuring charge,
the 1993 ratio of earnings to combined fixed charges and preferred stock
dividends would have been 4.22.
EXHIBIT 12
U S WEST, INC.
RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
1997 1996 1995 1994 1993(1)
--------- --------- --------- --------- ---------
Income before income taxes, extraordinary items and cumulative
effect of changes in accounting principles...................... $ 1,222 $ 1,840 $ 2,154 $ 2,283 $ 745
Interest expense (net of amounts capitalized).................... 1,083 612 527 442 439
Interest factor on rentals (1/3)................................. 104 91 95 96 102
Equity losses in unconsolidated ventures (less than 50% owned)... 690 168 66 -- --
Guaranteed minority interest expense............................. 87 55 14 -- --
--------- --------- --------- --------- ---------
Earnings......................................................... $ 3,186 $ 2,766 $ 2,856 $ 2,821 $ 1,286
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Interest expense................................................. $ 1,139 $ 680 $ 599 $ 486 $ 439
Interest factor on rentals (1/3)................................. 104 91 95 96 102
Guaranteed minority interest expense............................. 87 55 14 -- --
--------- --------- --------- --------- ---------
Fixed charges.................................................... $ 1,330 $ 826 $ 708 $ 582 $ 541
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio of earnings to fixed charges............................... 2.40 3.35 4.03 4.85 2.38
(1) The 1993 ratio is based on earnings from continuing operations and includes
a restructuring charge of $1 billion. Excluding the restructuring charge,
the 1993 ratio of earnings to fixed charges would have been 4.22.
EXHIBIT 12
U S WEST FINANCIAL SERVICES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
YEAR ENDED DECEMBER 31,
------------------------------------------------------
1997 1996 1995 1994 1993
--------- --------- --------- --------- ----------
Income before income taxes................................ $ 19,874 $ 16,150 $ 9,125 $ 12,217 $ 123,596
Interest expense.......................................... 24,758 21,523 29,091 40,816 144,980
Interest factor on rentals (1/3).......................... 27 56 56 123 789
--------- --------- --------- --------- ----------
Earnings.................................................. $ 44,659 $ 37,729 $ 38,272 $ 53,156 $ 269,365
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
Interest expense.......................................... $ 24,758 $ 21,523 $ 29,091 $ 40,816 $ 144,980
Interest factor on rentals (1/3).......................... 27 56 56 123 789
--------- --------- --------- --------- ----------
Fixed charges............................................. $ 24,785 $ 21,579 $ 29,147 $ 40,939 $ 145,769
--------- --------- --------- --------- ----------
--------- --------- --------- --------- ----------
Ratio of earnings to fixed charges........................ 1.80 1.75 1.31 1.30 1.85
A Termination Agreement and Guarantee (the "Agreement") was entered into on June
24, 1994 between U S WEST, Inc. ("U S WEST") and U S WEST Capital Corporation
and U S WEST Financial Services ("USWFS"). The Agreement terminates the Support
Agreement dated January 5, 1990 whereby U S WEST agreed to provide financial
support to USWFS. The Agreement provides replacement financial support in the
form of a direct guarantee by U S WEST of all outstanding indebtedness of USWFS.