PRO FORMA STATEMENTS OF INCOME (1) U S WEST, INC.
(UNAUDITED)
Quarter Ended Year ended
In millions, except Mar 31,Jun 30, Sep 30, Dec 31, Dec 31,
per share amounts 1999 1999 1999 1999 1999
- - --------------------------- ------ -------- ------- ------ ---------
OPERATING REVENUES
Local services $1,863 $1,920 $1,963 $2,000 $7,746
Access services 671 684 683 691 2,729
Directory services 326 319 336 455 1,436
Long-distance services 174 156 141 113 584
Other services 134 148 173 232 687
------ ------ ------ -------- --------
Total operating rev. 3,168 3,227 3,296 3,491 13,182
------ ------ ------ -------- --------
OPERATING EXPENSES
Employee-related 1,122 1,153 1,192 1,266 4,733
Other operating 656 671 644 774 2,745
Depreciation & amort 602 573 588 604 2,367
------ ------ ------ -------- --------
Total operating exp. 2,380 2,397 2,424 2,644 9,845
------ ------ ------ -------- --------
Operating Income 788 830 872 847 3,337
OTHER EXPENSE
Interest expense 153 163 203 217 736
Loss on the sale of
Global Crossing investment - - - 423 423
Terminated merger-related
expenses - - 282 0 282
Other expense 1 13 (4) (16) (6)
------ ------ ------ -------- --------
Income before income taxes 634 654 391 223 1,902
Income tax provision 240 248 255 57 800
------ ------ ------ -------- --------
NET INCOME $ 394 $ 406 $ 136 $ 166 $1,102
====== ====== ====== ======== ========
Basic earnings per share $ 0.78 $ 0.81 $0.27 $ 0.33 $ $ 2.18
====== ====== ====== ======== ========
Basic average shares
outstanding 503.3 503.9 504.8 505.7 504.4
====== ====== ====== ======== ========
Diluted earnings per share$ 0.78 $ 0.80 $ 0.27 $ 0.32 $ 2.16
====== ====== ====== ======== ========
Diluted average shares
outstanding 508.1 508.2 509.0 511.7 509.3
====== ====== ====== ======== ========
Normalized diluted earnings
per share (2) $ 0.78 $ 0.80 $ 0.82 $ 0.83 $ 3.23
====== ====== ====== ======== ========
<FN>
<F1>
(1) The results of operations for 1999 include pro forma adjustments for the
change in accounting principle to recognize revenues and expenses for directory
publishing under the "point of publication" method from the "amortization"
method as if the change in accounting principle had been adopted as of the
beginning of each period presented. Under the "point of publication" method,
revenues and expenses are recognized when the directories are delivered whereas
under the "amortization" method, revenues and expenses were recognized over the
lives of the directories, generally one year.
<F2>
(2) Third quarter 1999 income was normalized for terminated merger-related
expenses of $282 ($0.56 per share). Fourth quarter 1999 income was normalized
for the loss on the sale of Global Crossing common shares of $259 ($0.51 per
share).
</FN>