CONSOLIDATED BALANCE SHEETS U S WEST, Inc. (UNAUDITED) September 30, December 31, In millions 1998 1997 - - -------------------------------------- ------------- -------------- ASSETS Current assets: Cash and cash equivalents $ 22 $ 27 Accounts and notes receivable 1,735 1,717 Inventories and supplies 248 150 Deferred directory costs 261 257 Deferred tax asset 205 271 Prepaid and other 82 82 ------------- -------------- Total current assets 2,553 2,504 ------------- -------------- Gross property, plant and equipment 34,840 33,651 Less accumulated depreciation 20,342 19,343 ------------- -------------- Property, plant and equipment - net 14,498 14,308 Other assets 1,010 855 ------------- -------------- Total assets $ 18,061 $ 17,667 ============= ============== LIABILITIES AND SHAREOWNERS' EQUITY Current liabilities: Short-term debt $ 1,913 $ 695 Accounts payable 1,121 1,377 Dividends payable 269 259 Other 1,955 1,868 ------------- -------------- Total current liabilities 5,258 4,199 ------------- -------------- Long-term debt 7,920 5,020 Postretirement and other postemployment benefit obligations 2,556 2,534 Deferred taxes, credits and other 1,702 1,547 Shareowners' equity 625 4,367 ------------- -------------- Total liabilities and shareowners' equity $ 18,061 $ 17,667 ============== ============== 10