CONSOLIDATED STATEMENTS OF OPERATIONS U S WEST COMMUNICATIONS, INC. (UNAUDITED) (Telephone Operations Only) Quarter Ended March 31, % In millions 2000 1999 Change - ------------------------------------------- ------- ------- -------- OPERATING REVENUES Local services $2,045 $1,871 9.3 Access services 710 672 5.7 Long-distance services 106 171 (38.0) Other services 90 74 21.6 ------- ------- Total operating revenues 2,951 2,788 5.8 ------- ------- OPERATING EXPENSES Employee-related 802 893 (10.2) Other operating 777 624 24.5 Depreciation & amort 564 585 (3.6) ------- ------- Total operating expenses 2,143 2,102 2.0 ------- ------- Operating income 808 686 17.8 Interest expense 119 89 33.7 Other expense 6 12 (50.0) ------- ------- Income before income taxes 683 585 16.8 Income tax provision 258 216 19.4 ------- ------- NET INCOME $425 $369 15.2 ======= =======