CONSOLIDATED STATEMENTS OF CASH FLOWS U S WEST, Inc. (UNAUDITED) Six Months Ended June 30, In millions 1999 1998 - - ----------------------------------------------- ------- -------- OPERATING ACTIVITIES Net income $ 818 $ 778 Adjustments to net income: Depreciation and amortization 1,175 1,067 Deferred income taxes and amortization of investment tax credits 74 89 Changes in operating assets and liabilities: Accounts receivable 13 11 Inventories, supplies and other current assets (120) (88) Accounts payable, accrued expense and advance billings 159 (93) Other (50) 55 - - ----------------------------------------------- ------- -------- Cash provided by operating activities 2,069 1,819 - - ----------------------------------------------- ------- -------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (1,681) (1,283) Proceeds from (payments on) disposals of property, plant and equipment (18) 34 Investment in Global Crossing Ltd. common stock (2,464) - Other (14) (52) - - ----------------------------------------------- ------- -------- Cash used for investing activities (4,177) (1,301) - - ----------------------------------------------- ------- -------- FINANCING ACTIVITIES Net proceeds from short-term debt 2,940 2,060 Proceeds from issuance of long-term debt 17 3,066 Repayments of long-term debt (280) (83) Net repayments of Old U S WEST short-term debt - (198) Repayment of Old U S WEST debt in connection with the DEX Alignment - (3,829) Proceeds from issuance of common stock 42 44 Dividends paid on common stock (538) (519) Dividends paid to Old U S WEST - (183) Payment to Old U S WEST for debt refinancing costs - (140) Return of capital from Old U S WEST - 13 Purchases of treasury stock - (46) - - ----------------------------------------------- ------- ------- Cash used for financing activities 2,181 185 - - ----------------------------------------------- ------- ------ CASH AND CASH EQUIVALENTS Increase 73 703 Beginning balance 49 27 - - ----------------------------------------------- ------- ------- Ending balance $ 122 $ 730 =============================================== ======= =======