COMBINED PRO FORMA STATEMENTS OF INCOME U S WEST, INC.
(UNAUDITED)
------------1997----------------1998
In millions Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year Qtr 1
- ----------------------- --------------------------------------
OPERATING REVENUES
Local service 1,231 1,194 1,314 1,277 5,016 1,350
Interstate access 687 678 663 638 2,666 698
Intrastate access 200 200 208 153 761 206
Long-distance network 250 240 231 164 885 201
Directory services 287 296 296 318 1,197 307
Other services 212 222 248 272 954 247
------------------------------ ------
Total operating rev. 2,867 2,830 2,960 2,822 11,479 3,009
------------------------------ ------
OPERATING EXPENSES
Employee-related 926 971 1,018 1,038 3,953 1,006
Other operating 516 462 539 642 2,159 555
Taxes other than
income taxes 112 102 106 108 428 101
Depreciation & amort 536 539 541 547 2,163 532
------------------------------ ------
Total operating exp. 2,090 2,074 2,204 2,335 8,703 2,194
------------------------------ ------
Operating income 777 756 756 487 2,776 815
Interest expense 168 167 165 167 667 163
Gain on sale of Bellcore - - - 53 53 -
Gains on sales of rural
telephone exchanges 18 29 30 - 77 -
Other expense 22 17 12 21 72 25
------------------------------ ------
Income before income
taxes and extra-
ordinary item 605 601 609 352 2,167 627
Income tax provision 225 226 226 125 802 234
------------------------------ ------
PRO FORMA INCOME
BEFORE EXTRAORDINARY
ITEM 380 375 383 227 1,365 393
Extraordinary item -
debt refinancing - - (3) - (3) -
------------------------------ ------
PRO FORMA NET INCOME 380 375 380 227 1,362 393
============================== ======
COMBINED PRO FORMA STATEMENTS OF INCOME, (1) U S WEST, Inc.
CONTINUED (UNAUDITED)
In millions except per ------------1997----------------1998
share amounts Qtr 1 Qtr 2 Qtr 3 Qtr 4 Total Qtr 1
- ----------------------- ------------------------------------- ------
Pro forma basic
average shares
outstanding 497.7 498.9 499.6 500.2 499.1 501.3
===================================== ======
Pro forma basic
earnings per share
before extraordinary
item 0.76 0.75 0.77 0.45 2.73 0.78
Extraordinary item - - (0.01) - (0.01) -
-------------------------------------- ------
Pro forma basic
earnings per share 0.76 0.75 0.76 0.45 2.73 0.78
====================================== ======
Pro forma diluted
average shares
outstanding 508.7 510.2 507.7 503.7 507.6 505.5
====================================== ======
Pro forma diluted
earnings per share
before extraordinary
item 0.75 0.74 0.76 0.45 2.71 0.78
Extraordinary item - - (0.01) - (0.01) -
-------------------------------------- ------
Pro forma diluted
earnings per share 0.75 0.74 0.75 0.45 2.70 0.78
====================================== ======
Amounts may not foot due to rounding of individual components.
<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>