CONSOLIDATED STATEMENTS OF OPERATIONS U S WEST COMMUNICATIONS, INC.
(UNAUDITED) (Telephone Operations Only)
Quarter Ended Nine Months Ended
September 30, % September 30, %
In millions 1999 1998 Change 1999 1998(1) Change
- - ------------------------ ------ ------ ------ ------ ------- ------
OPERATING REVENUES
Local service $1,979 $1,805 9.6 $5,779 $5,291 9.2
Access services 688 660 4.2 2,057 1,996 3.1
Long-distance services 138 199 (30.7) 459 595 (22.9)
Other services 110 75 46.7 262 221 18.6
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Total operating revenues 2,915 2,739 6.4 8,557 8,103 5.6
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OPERATING EXPENSES
Employee-related 935 868 7.7 2,719 2,550 6.6
Other operating (1) 636 625 1.8 1,923 1,969 (2.3)
Depreciation & amort 571 544 5.0 1,713 1,580 8.4
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Total operating expenses 2,142 2,037 5.2 6,355 6,099 4.2
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Operating income 773 702 10.1 2,202 2,004 9.9
Interest expense 102 103 (1.0) 289 288 0.3
Other expense 9 20 (55.0) 33 76 (56.6)
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Income before income
taxes 662 579 14.3 1,880 1,640 14.6
Income tax provision 251 219 14.6 713 630 13.2
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NET INCOME $ 411 $ 360 14.2 $1,167 $1,010 15.5
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<FN>
<F1>
(1) Net income for the nine months ended September 30, 1998 includes $89 of
after tax charges associated with the Separation and an asset impairment,
consisting of $129 of other operating expense, net of $40 of income tax expense.
</FN>