COMBINED PRO FORMA STATEMENTS OF INCOME (1) U S WEST, INC.
(UNAUDITED)
Quarter Ended Six Months Ended
June 30, % June 30, %
In millions 1998 1997 Change 1998 1997 Change
- ----------------------- ------- ------- -------------- ------- ------
OPERATING REVENUES
Local service $1,369 $ 1,194 14.7 $2,719 $ 2,425 12.1
Interstate access 711 678 4.9 1,409 1,365 3.2
Intrastate access 202 200 1.0 408 400 2.0
Long-distance network 195 240 (18.8) 396 490 (19.2)
Directory services 313 296 5.7 620 583 6.3
Other services 263 222 18.5 510 434 17.5
---------------- ----------------
Total operating rev. 3,053 2,830 7.9 6,062 5,697 6.4
---------------- ----------------
OPERATING EXPENSES
Employee-related 1,069 971 10.1 2,075 1,897 9.4
Other operating 676 462 46.3 1,231 978 25.9
Taxes other than
income taxes 89 102 (12.7) 190 214 (11.2)
Depreciation & amort 535 539 (0.7) 1,067 1,075 (0.7)
---------------- ----------------
Total operating exp. 2,369 2,074 14.2 4,563 4,164 9.6
---------------- ----------------
Operating income 684 756 (9.5) 1,499 1,533 (2.2)
Interest expense 160 167 (4.2) 323 335 (3.6)
Gains on sales of rural
telephone exchanges - 29 - - 47 -
Other expense 33 17 94.1 58 39 48.7
---------------- ----------------
Income before income
taxes 491 601 (18.3) 1,118 1,206 (7.3)
Income tax provision 195 226 (13.7) 429 451 (4.9)
---------------- ----------------
PRO FORMA NET INCOME $ 296 $ 375 (21.1)$ 689 $ 755 (8.7)
================ ================
COMBINED PRO FORMA STATEMENTS OF INCOME, (1) U S WEST, INC.
CONTINUED (UNAUDITED)
Quarter Ended Six Months Ended
In millions, except June 30, % June 30, %
per share amounts 1998 1997 Change 1998 1997 Change
- ----------------------- ------- ------- -------------- ------- ------
Pro forma basic
average shares
outstanding 501.5 498.9 0.5 501.4 498.3 0.6
================ ================
Pro forma basic
earnings per share: $ 0.59 $ 0.75 (21.3) $ 1.37 $ 1.52 (9.9)
================ ================
Pro forma diluted
average shares
outstanding 505.6 510.2 (0.9) 505.5 509.5 (0.8)
================ ================
Pro forma diluted
earnings per share: $ 0.59 $ 0.74 (20.3)$ 1.36 $ 1.50 (9.3)
================ ================
<FN>
(1) The separation of U S WEST, Inc. ("Old U S WEST") into two independent
companies, U S WEST, Inc. ("New U S WEST") and MediaOne Group, Inc.,(the
"Separation") occurred on June 12, 1998 (the "Separation Date"). The 1998 and
1997 pro forma results give effect to the Separation, including the assumption
of indebtedness and the issuance of shares in connection with the Dex
transaction, as if the Separation had been consummated as of the beginning of
the periods indicated.
</FN>