CONSOLIDATED STATEMENTS OF CASH FLOWS U S WEST, Inc. (UNAUDITED) Quarter Ended March 31, In millions 1999 1998 - -------------------------------------------------- -------- -------- OPERATING ACTIVITIES Net income $ 397 $ 393 Adjustments to net income: Depreciation and amortization 602 532 Deferred income taxes and amortization of investment tax credits 14 40 Changes in operating assets and liabilities: Accounts receivable 43 101 Inventories, supplies and other current assets (109) (41) Accounts payable, accrued expense and advance billings 51 201 Other (61) (17) - -------------------------------------------------- -------- -------- Cash provided by operating activities 937 1,209 - -------------------------------------------------- -------- -------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (753) (563) Proceeds from (payments on) disposals of property, plant and equipment (8) 19 Other (11) (18) - -------------------------------------------------- -------- -------- Cash used for investing activities (772) (562) - -------------------------------------------------- -------- -------- FINANCING ACTIVITIES Net proceeds from short-term debt 256 119 Net repayments of Old U S WEST debt - (44) Repayments of long-term debt (181) (23) Proceeds from issuance of common stock 16 17 Dividends paid on common stock (269) (259) Dividends paid to Old U S WEST - (90) Purchases of treasury stock - (21) - -------------------------------------------------- -------- -------- Cash used for financing activities (178) (301) - -------------------------------------------------- -------- -------- CASH AND CASH EQUIVALENTS Increase (decrease) (13) 346 Beginning balance 49 27 - -------------------------------------------------- -------- -------- Ending balance $ 36 $ 373 ================================================= ======== ========