CONSOLIDATED STATEMENTS OF INCOME (1) U S WEST, INC.
(UNAUDITED)
Quarter Ended
In millions, except March 31, %
per share amounts 1999 1998 Change
- ------------------------------------ ------- ------- -------
OPERATING REVENUES
Local service $1,867 $ 1,730 7.9
Exchange access 681 665 2.4
Long-distance services 174 204 (14.7)
Directory services 326 306 6.5
Other services 134 104 28.8
----------------
Total operating rev. 3,182 3,009 5.7
----------------
OPERATING EXPENSES
Employee-related 1,125 1,006 11.8
Other operating 662 656 0.9
Depreciation & amort 602 532 13.2
----------------
Total operating exp. 2,389 2,194 8.9
----------------
Operating income 793 815 (2.7)
Interest expense 153 163 (6.1)
Other expense 1 25 (96.0)
----------------
Income before income taxes 639 627 1.9
Income tax provision 242 234 3.4
----------------
NET INCOME $ 397 $ 393 1.0
================
Basic earnings per share $ 0.79 $ 0.78 1.3
================
Basic average shares
outstanding 503.3 501.3 0.4
================
Diluted earnings per share $ 0.78 $ 0.78 -
================
Diluted average shares
outstanding 508.1 505.5 0.5
================
<FN>
<F1>
(1) The separation of U S WEST, Inc. into two independent
companies, U S WEST, Inc. ("New U S WEST") and MediaOne
Group, Inc.,(the "Separation") occurred on June 12, 1998.
The results for the quarter ended March 31, 1998
give effect to the Separation as if the business that
comprised New U S WEST operated as a separate entity
for the entire period. Additionally, the results of operations
include pro forma adjustments for the assumption
of indebtedness and the issuance of shares in connection
with the alignment of the directory business with
New U S WEST, as if the Separation had been consummated as of the
beginning of the period indicated.
</FN>