-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, WHtMRhxGeKatsMwYltVZpDWyjLxUD1xBq5UCGN1aPx3F167KRl9dc6E0LovRORlG n9E/ffIn7VXF1VtKih9g8A== 0000732718-94-000024.txt : 19941103 0000732718-94-000024.hdr.sgml : 19941103 ACCESSION NUMBER: 0000732718-94-000024 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 19940930 ITEM INFORMATION: Changes in control of registrant FILED AS OF DATE: 19941018 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: US WEST INC CENTRAL INDEX KEY: 0000732718 STANDARD INDUSTRIAL CLASSIFICATION: 4813 IRS NUMBER: 840926774 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08611 FILM NUMBER: 94553841 BUSINESS ADDRESS: STREET 1: 7800 E ORCHARD RD STREET 2: SUITE 480 CITY: ENGLEWOOD STATE: CO ZIP: 80111 BUSINESS PHONE: 3037936629 MAIL ADDRESS: STREET 1: 7800 EAST ORCHARD ROAD STREET 2: SUITE 480 CITY: ENGLEWOOD STATE: CO ZIP: 80111 8-K 1 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: October 17, 1994 U S WEST, INC. A Colorado Commission File IRS Employer Identification Corporation Number 1-8611 No. 84-0926774 7800 East Orchard Road, Englewood, Colorado 80111 Telephone Number (303) 793-6500 2 Item 7. Exhibits 27 Financial Data Schedule. 99A Press Release issued October 17, 1994 concerning the third-quarter earnings results of U S WEST, Inc. (the "Company"). 99B.1 Unaudited Consolidated Statements of Income of the Company for quarters ended September 30, 1993 and September 30, 1994, filed in connection with the Press Release dated October 17, 1994. 99B.2 Unaudited Selected Consolidated Data of the Company for quarters ended September 30, 1993 and September 30, 1994, filed in connection with the Press Release dated October 17, 1994. 99B.3 Unaudited Consolidated Statements of Income of the Company for nine months ended September 30, 1993 and September 30, 1994, filed in connection with the Press Release dated October 17, 1994. 99B.4 Unaudited Selected Consolidated Data of the Company for nine months ended September 30, 1993 and September 30, 1994, filed in connection with the Press Release dated October 17, 1994. 99B.5 Unaudited Consolidated Balance Sheets of the Company filed in connection with the Press Release dated October 17, 1994. 99B.6 Unaudited Consolidated Statements of Cash Flows of the Company for nine months ended September 30, 1993 and September 30, 1994, filed in connection with the Press Released dated October 17, 1994. 99B.7 Unaudited Statements of Income of the Company for quarters ended September 30, 1993 and September 30, 1994, filed in connection with the Press Release dated October 17, 1994. 99B.8 Unaudited Statements of Income of the Company for nine months ended September 30, 1993 and September 30, 1994, filed in connection with the Press Release dated October 17, 1994. 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. U S WEST, Inc. /s/ STEPHEN E. BRILZ By __________________________ Stephen E. Brilz Counsel - Securities and Assistant Secretary Dated: October 17, 1994 EX-27 2 ART. 5 FOR 8-K EARNINGS
5 1,000,000 3-MOS 9-MOS DEC-31-1994 DEC-31-1994 MAR-31-1994 SEP-30-1994 298 298 0 0 1,755 1,755 0 0 242 242 2,884 2,884 30,198 30,198 16,703 16,703 21,388 21,388 5,151 5,151 0 0 7,568 7,568 51 51 0 0 (844) (844) 21,388 21,388 2,765 8,114 2,765 8,114 0 0 0 0 2,118 6,190 0 0 104 323 514 1,645 196 628 318 1,017 0 0 0 0 0 0 318 1,017 .70 2.25 .70 2.25
EX-99 3 1 EXHIBIT 99A U S WEST, Inc. 7800 East Orchard Road Englewood, Colorado 80111 303 793-6500 NEWS RELEASE RELEASE DATE: October 17, 1994 CONTACT: Blair Johnson, 303-793-6296 Lois Leach, 303-793-6355 U S WEST REPORTS INCREASED EARNINGS, RECORD GROWTH IN TELEPHONE LINES AND CELLULAR SUBSCRIBERS ENGLEWOOD, Colo. -- U S WEST, Inc. (NYSE: USW) today reported an 8.2 percent increase in third-quarter net income -- compared with normalized net income a year ago -- and another quarter of record growth in telephone access lines and cellular subscribers. Results for the quarter, which ended September 30, 1994, included the following: - Net income was $318 million. That represents an 8.2 percent increase over the normalized $294 million in income from continuing operations the company reported for the same period last year.* (Normalized 1993 third-quarter earnings from continuing operations exclude the effects of a restructuring charge and an income tax rate change. Including those and other charges, U S WEST reported a 1993 third-quarter net loss of $3.545.)** - Third-quarter earnings per share were $0.70, the same as the normalized earnings per share from continuing operations reported a year ago -- despite the issuance of 38 million additional shares.*** - Revenues for the quarter increased 7.3 percent to $2.765 billion, compared with $2.577 billion a year ago. - Strong volume growth resulted in a 10.7 percent increase in the company's earnings before interest, taxes, depreciation and amortization, or EBITDA. (The increase in EBITDA excludes U S WEST's $1 billion restructuring charge in 1993.) U S WEST Communications (USWC), the company's telecommunications subsidiary, reported strong earnings growth. 2 - USWC reported third-quarter net income of $285 million, up 14.5 percent from the normalized income of $249 million a year ago. The telephone company's revenue grew 5.5 percent to $2.267 billion, from $2.148 billion in the same period a year ago. - The number of telephone access lines the company serves increased by a record 518,000, or 3.8 percent, over third-quarter last year -- excluding the effects of the sale of 38,000 lines in rural telephone exchanges. In addition, minutes of use, an indicator of long-distance calling volumes, grew by 8.5 percent in the same period. "I'm extremely pleased with our continued strong operating performance," said Richard McCormick, U S WEST chairman and chief executive officer. "However, greater-than-forecasted demand is causing delays in providing telephone service in some areas. To respond to this extraordinary growth and improve service, we decided to stretch out our timetable for restructuring this critical part of our business. This will delay the timing -- but not the magnitude -- of the ultimate cost reductions and service improvements we expect from our re-engineering program." U S WEST's worldwide wireless communications businesses also enjoyed strong third-quarter growth. Including all customers in the company's domestic and international ventures, U S WEST's total wireless customer based increased to almost 1.1 million, nearly 520,000 more than a year ago. U S WEST also took a major step in the third quarter to better position its domestic cellular business. - Domestically, U S WEST Cellular added a record 304,000 subscribers, a 59-percent increase from nearly 517,000 a year ago, for a total customer base of almost 821,000. In the same period, operating cash flow margin at U S WEST Cellular increased more than three percentage points. - In July, U S WEST and AirTouch Communications announced that they would merge their domestic cellular assets. U S WEST will own 30 percent of the combined operation, which already serves 1.9 million customers on a proportionate basis. Together, the companies have licenses in 16 of the top 30 markets and more than 53 million potential cellular customers. Subscribers to U S WEST's international wireless joint ventures increased to 267,700 -- more than five times the customer base of a year ago. U S WEST operates wireless joint ventures in the United Kingdom, Hungary, the Czech Republic, Slovakia and Russia. 3 - Mercury One-2-One, a mobile telephone joint venture with Cable & Wireless in the U.K., continues to exceed customer growth expectations. To meet the strong demand, One-2-One is accelerating its expansion plans and has doubled its distribution outlets. In cable television, U S WEST took a major step in the third quarter to expand its base of customers outside the company's 14- state service territory. - In July, the company announced plans to acquire two premier cable-TV systems in metropolitan Atlanta with a combined subscriber base of roughly 466,000. The transaction is expected to close in the fourth quarter. Combined with U S WEST's partnership with Time Warner Entertainment, the Atlanta properties will expand U S WEST's cable-TV reach to almost 8 million subscribers. - In the last 12 months, Telewest Communications, a combined cable-television and telephone joint venture in the U.K. with Telecommunications Inc. (TCI), increased its base of cable- TV subscriber by nearly 59 percent, to 273,000, and the number of telephone lines it serves by more than 84 percent, to 219,000. For the first nine months of 1994, U S WEST's net income was $1.017 billion, including a $41 million gain on the sale of the company's paging operations and a $32 million gain on the sale of certain rural exchanges. Excluding those gains, net income was $944 million, compared to normalized income from continuing operations of $871 million -- an increase of 8.4 percent. Normalized earnings per share excluding both gains was $2.09, compared to normalized earnings per share from continuing operations of $2.09 a year ago. U S WEST is in the connections business, helping customers share information, entertainment and communications services in local markets worldwide. # # # [FN] Footnotes * Continuing operations represent company results minus the contributions of U S WEST's financial services businesses, which the company is exiting. These businesses are being treated as discontinued operations for accounting purposes. ** One-time charges reflected during the third-quarter 1993, in after-tax dollars, include: 4 1) A restructuring charge of $610 million, or $1.46 per share, for re-engineering and streamlining U S WEST Communications' customer-support operations and other corporate initiatives; 2) Adjustments of $79 million, or $0.19 per share, to reflect federally mandated income tax increases. (This includes $20 million, or $0.05 per share, in discontinued operations.); 3) An extraordinary charge totaling $3,123 million, or $7.49 per share, for a technical accounting change -- from rules designed for regulated utilities to those designed for competitive companies; and 4) An extraordinary change of $27 million, or $0.06 per share, for the early extinguishment of debt at U S WEST Communications. *** Of the 38 million additional shares outstanding, 22 million shares were sold in a fourth-quarter 1993 equity offering; about 5.5 million shares were issued in February 1994, as part of a lawsuit settlement; U S WEST contributed 4.6 million shares to fund an employee benefit trust in March 1994; and 5.9 million shares were issued for dividend reinvestment and employee compensation programs. EX-99 4 EXHIBIT 99B.1 CONSOLIDATED STATEMENTS OF U S WEST, Inc. INCOME (UNAUDITED)
Quarter Ended Dollars in millions, September 30, % except per share amounts 1994 1993 Change - - ---------------------------------------- -------------------------------- SALES AND OTHER REVENUES $2,765 $2,577 7.3 EXPENSES Employee-related costs 968 912 6.1 Other operating expenses 532 514 3.5 Taxes other than income taxes 109 107 1.9 Restructuring charge - 1,000 - Depreciation and amortization 509 477 6.7 Interest expense 104 101 3.0 Other income (expense) - net (29) - - -------------------------------- Income (loss) from continuing operations before income taxes and extraordinary items 514 (534) - Provision (benefit) for income taxes 196 (159) - -------------------------------- Income (loss) from continuing operations before extraordinary items 318 (375) - Discontinued operations - (20) - Extraordinary items: Discontinuance of SFAS No. 71, net of tax - (3,123) - Early extinguishment of debt, net of tax - (27) - -------------------------------- NET INCOME (LOSS) $318 ($3,545) - ===============================
Note: Certain reclassifications within the financial statements have been made to conform to the current year presentation. EXHIBIT 99B.1 (CONTINUED) CONSOLIDATED STATEMENTS OF U S WEST, Inc. INCOME (UNAUDITED)
Quarter Ended September 30, % 1994 1993 Change - - ---------------------------------------- -------------------------------- Earnings (loss) per common share: Continuing operations $0.70 ($0.90) - Discontinued operations - (0.05) - Extraordinary items: Discontinuance of SFAS No. 71 - (7.49) - Early extinguishment of debt - (0.06) - -------------------------------- EARNINGS (LOSS) PER COMMON SHARE $0.70 ($8.50) - ================================
EX-99 5 EXHIBIT 99B.2 SELECTED CONSOLIDATED DATA (UNAUDITED) U S WEST, Inc.
Quarter Ended Dollars in millions, September 30, % except per share amounts 1994 1993 Change - - ----------------------------------------------------------------- ------- U S WEST, Inc. SELECTED STATISTICS EBITDA (Note 1) $1,156 $1,044 10.7 EBITDA margin 41.8% 40.5% - Capital expenditures $731 $555 31.7 Return on common equity (Note 2) 18.9% - - Debt-to-capital ratio (Note 3) 51.9% 55.1%# - Dividends per common share $0.535 $0.535 - Average common shares outstanding (thousands) 454,997 417,081 9.1 Common shares outstanding (thousands) 455,622 417,634 9.1 Employees (Note 4) 61,167 61,704 (0.9) TELEPHONE COMPANY STATISTICS Access lines (thousands): Business 4,019 3,857 4.2 Consumer 10,156 9,838 3.2 Total access lines (Note 5) 14,175 13,695 3.5 Billed access minutes of use (millions): Interstate 10,930 10,171 7.5 Intrastate 2,159 1,894 14.0 Total access minutes of use 13,089 12,065 8.5 EBITDA (Note 1) $1,016 $927 9.6 EBITDA margin 44.8% 43.2% - Debt-to-capital ratio 61.2% 63.0%# - Capital expenditures $632 $502 25.9 Employees 48,315 50,339 (4.0) CELLULAR DATA Service revenue $168.2 $116.7 44.1 Equipment revenue $29.8 $16.2 84.0 Cellular service operating cash flow (EBITDA) $57.6 $35.6 61.8 Cellular service operating cash flow margin 34.2% 30.5% - Subscribers 821,000 517,000 58.8 Proportionate Subscribers (Note 6) 694,000 440,000 57.7 Total adjusted POPs (millions) 18.0 17.6 2.3
[FN] # As of December 31, 1993. Note 1: Earnings before interest, taxes, depreciation, amortization, and other (EBITDA). EBITDA excludes restructuring charges of $1,000 and $880 for U S WEST, Inc. and the telephone company, respectively. Note 2: 1993 ratio excluding one-time items is 14.9%. Note 3: 1994 ratio excludes preferred stock. 1994 and 1993 ratios including discontinued operations are 56.1% and 59.7%, respectively. Note 4: 1994 includes 797 additional employees due to the U.K. Thomson Directories acquisition and 360 fewer employees due to Paging sale. Note 5: Access line growth, excluding 1994 rural exchange sales of 38,000 lines, was 3.8%. Note 6: Proportionate subscribers represent the Company's proportionate ownership interest in its cellular operations. EX-99 6 EXHIBIT 99B.3 CONSOLIDATED STATEMENTS OF U S WEST, Inc. INCOME (UNAUDITED)
Nine Months Ended Dollars in millions, September 30, % except per share amounts 1994 1993 Change - - --------------------------------------------------------------------------- SALES AND OTHER REVENUES $8,114 $7,628 6.4 EXPENSES Employee-related costs 2,822 2,665 5.9 Other operating expenses 1,527 1,481 3.1 Taxes other than income taxes 322 317 1.6 Restructuring charge - 1,000 - Depreciation and amortization 1,519 1,465 3.7 Interest expense 323 314 2.9 Other income (expense) - net 44 (35) - ------------------------------ Income from continuing operations before income taxes and extraordinary items 1,645 351 - Provision for income taxes 628 139 - ------------------------------ Income from continuing operations before extraordinary items 1,017 212 - Discontinued operations - (82) - Extraordinary items: Discontinuance of SFAS No. 71, net of tax - (3,123) - Early extinguishment of debt, net of tax - (77) - ------------------------------ NET INCOME (LOSS) $1,017 ($3,070) - ==============================
Note: Certain reclassifications within the financial statements have been made to conform to the current year presentation. EXHIBIT 99B.3 (CONTINUED) CONSOLIDATED STATEMENTS OF U S WEST, Inc. INCOME (UNAUDITED)
Nine Months Ended September 30, % 1994 1993 Change - - ---------------------------------------- ------------------------------ Earnings (loss) per common share: Continuing operations $2.25 $0.51 - Discontinued operations - net - (0.20) - Extraordinary items: Discontinuance of SFAS No. 71 - (7.51) - Early extinguishment of debt - (0.18) - ------------------------------ EARNINGS (LOSS) PER COMMON SHARE $2.25 ($7.38) - ==============================
EX-99 7 EXHIBIT 99B.4 SELECTED CONSOLIDATED DATA (UNAUDITED) U S WEST, Inc.
Nine Months Ended Dollars in millions, September 30, % except per share amounts 1994 1993 Change - - ----------------------------------------------------------------- -------- U S WEST, Inc. SELECTED STATISTICS EBITDA (Note 1) $3,443 $3,165 8.8 EBITDA margin 42.4% 41.5% - Capital expenditures $1,958 $1,561 25.4 Return on common equity (Note 2) 21.0% - - Debt-to-capital ratio (Note 3) 51.9% 55.1%# - Dividends per common share $1.605 $1.605 - Average common shares outstanding (thousands) 451,037 416,052 8.4 Common shares outstanding (thousands) 455,622 417,634 9.1 Employees (Note 4) 61,167 61,704 (0.9) TELEPHONE COMPANY STATISTICS Access lines (thousands): Business 4,019 3,857 4.2 Consumer 10,156 9,838 3.2 Total access lines (Note 5) 14,175 13,695 3.5 Billed access minutes of use (millions): Interstate 32,437 30,102 7.8 Intrastate 6,282 5,551 13.2 Total access minutes of use 38,719 35,653 8.6 EBITDA (Note 1) $3,028 $2,804 8.0 EBITDA margin 45.0% 43.5% - Debt-to-capital ratio 61.2% 63.0%# - Capital expenditures $1,742 $1,402 24.3 Employees 48,315 50,339 (4.0) CELLULAR DATA Service revenue $454.0 $318.6 42.5 Equipment revenue $80.8 $39.5 - Cellular service operating cash flow (EBITDA) $138.9 $84.8 63.8 Cellular service operating cash flow margin 30.6% 26.6% - Subscribers 821,000 517,000 58.8 Proportionate Subscribers (Note 6) 694,000 440,000 57.7 Total adjusted POPs (millions) 18.0 17.6 2.3
[FN] # As of December 31, 1993. Note 1: Earnings before interest, taxes, depreciation, amortization, and other (EBITDA). EBITDA excludes restructuring charges of $1,000 and $880 for U S WEST, Inc. and the telephone company, respectively. Note 2: 1993 ratio excluding one-time items is 14.0%. Note 3: 1994 ratio excludes preferred stock. 1994 and 1993 ratios including discontinued operations are 56.1% and 59.7%, respectively. Note 4: 1994 includes 797 additional employees due to the U.K. Thomson Directories acquisition and 360 fewer employees due to Paging sale. Note 5: Access line growth, excluding 1994 rural exchange sales of 38,000 lines, was 3.8%. Note 6: Proportionate subscribers represent the Company's proportionate ownership interest in its cellular operations. EX-99 8 EXHIBIT 99B.5 CONSOLIDATED BALANCE SHEETS U S WEST, Inc. (UNAUDITED)
September 30, December 31, In millions 1994 1993 - - -------------------------------------------- ---------------------------- ASSETS Current assets: Cash and cash equivalents $298 $128 Accounts and notes receivable 1,755 1,570 Inventories and supplies 242 193 Prepaid and other 589 609 ---------------------------- Total current assets 2,884 2,500 ---------------------------- Property, plant and equipment - net 13,495 13,232 Investment in Time Warner Entertainment 2,536 2,552 Net assets of discontinued operations * 328 554 Other assets 2,145 1,842 ---------------------------- Total assets $21,388 $20,680 ============================ LIABILITIES AND SHAREOWNERS' EQUITY Current liabilities: Short-term debt $2,026 $1,776 Accounts payable 791 977 Current portion of restructuring charges 389 456 Other 1,945 1,772 ---------------------------- Total current liabilities 5,151 4,981 ---------------------------- Long-term debt 5,225 5,423 Postretirement and other postemployment benefit obligations 2,472 2,699 Deferred taxes, credits and other 1,765 1,716 Preferred stock subject to mandatory redemption 51 - Common shareowners' equity: Common shares 7,568 6,996 Retained earnings (deficit) (628) (892) LESOP guarantee (216) (243) ---------------------------- Total common shareowners' equity 6,724 5,861 ---------------------------- Total liabilities and shareowners' equity $21,388 $20,680 ============================
[FN] * All assets and liabilities associated with discontinued operations are presented in the line item "Net assets of discontinued operations". EX-99 9 EXHIBIT 99B.6 CONSOLIDATED STATEMENTS OF U S WEST, Inc. CASH FLOWS (UNAUDITED)
Nine Months Ended September 30, In millions 1994 1993 - - -------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $1,017 ($3,070) Adjustments to net income: Discontinuance of SFAS No. 71 - 3,123 Restructuring charge - 1,000 Depreciation and amortization 1,519 1,465 Discontinued operations - 82 Deferred income taxes and amortization of investment tax credits 181 (270) Changes in operating assets and liabilities: Accounts and notes receivable (173) (153) Inventories, supplies and other (42) (79) Accounts payable and accrued liabilities 111 186 Restructuring payments (167) (77) Other - net (112) 80 - - -------------------------------------------------------------------------- Cash provided by operating activities 2,334 2,287 - - -------------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (1,948) (1,714) Investment in Time Warner Entertainment - (1,531) Proceeds from disposals of property, plant and equipment 49 29 Proceeds from the sale of assets 143 - Other - net (311) (179) - - -------------------------------------------------------------------------- Cash (used) for investing activities (2,067) (3,395) - - -------------------------------------------------------------------------- FINANCING ACTIVITIES Net proceeds from short-term debt 403 2,535 Proceeds from issuance of long-term debt 251 1,794 Repayments of long-term debt (408) (1,878) Dividends paid on common stock (663) (608) Proceeds from issuance of common stock 329 80 Proceeds from issuance of preferred stock 50 - - - -------------------------------------------------------------------------- Cash provided by financing activities (38) 1,923 - - -------------------------------------------------------------------------- Cash provided by continuing operations 229 815 - - -------------------------------------------------------------------------- Cash provided by (used for) discontinued operations (59) (152) - - -------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Increase 170 663 Beginning balance 128 159 - - -------------------------------------------------------------------------- Ending balance $298 $822 =============================================================================
Note: Certain reclassifications within the financial statements have been made to conform to the current year presentation. EX-99 10 EXHIBIT 99B.7 STATEMENTS OF INCOME U S WEST COMMUNICATIONS, Inc. (UNAUDITED)
Quarter Ended September 30, % Dollars in millions 1994 1993 Change - - ------------------------------------------------------------------------- OPERATING REVENUES Local service $1,034 $942 9.8 Access charges - interstate 573 528 8.5 Access charges - intrastate 188 173 8.7 Long distance network service 323 371 (12.9) Other services 149 134 11.2 ---------------------------- Total operating revenues 2,267 2,148 5.5 ---------------------------- OPERATING EXPENSES Employee-related costs 752 732 2.7 Other operating expenses 400 391 2.3 Taxes other than income taxes 99 98 1.0 Restructuring charge - 880 - Depreciation and amortization 471 454 3.7 ---------------------------- Total operating expenses 1,722 2,555 (32.6) ---------------------------- Income (loss) from operations 545 (407) - Interest expense 82 87 (5.7) Other income (expense) - net (6) 2 - ---------------------------- Income (loss) before income taxes and extraordinary items 457 (492) - Provision (benefit) for income taxes 172 (143) - ---------------------------- Income (loss) before extraordinary items 285 (349) - Extraordinary items: Discontinuance of SFAS No. 71, net of tax - (3,041) - Early extinguishment of debt, net of tax - (27) - ---------------------------- NET INCOME (LOSS) $285 ($3,417) - ============================
Note: Certain reclassifications within the financial statements have been made to conform to the current year presentation. EX-99 11 EXHIBIT 99B.8 STATEMENTS OF INCOME U S WEST COMMUNICATIONS, Inc. (UNAUDITED)
Nine Months Ended September 30, Dollars in millions 1994 1993 % Change - - ------------------------------------------------------------------------- OPERATING REVENUES Local service $3,035 $2,842 6.8 Access charges - interstate 1,691 1,593 6.2 Access charges - intrastate 541 513 5.5 Long distance network service 1,019 1,082 (5.8) Other services 442 410 7.8 ---------------------------- Total operating revenues 6,728 6,440 4.5 ---------------------------- OPERATING EXPENSES Employee-related costs 2,207 2,134 3.4 Other operating expenses 1,199 1,212 (1.1) Taxes other than income taxes 294 290 1.4 Restructuring charge - 880 - Depreciation and amortization 1,406 1,355 3.8 ---------------------------- Total operating expenses 5,106 5,871 (13.0) ---------------------------- Income from operations 1,622 569 - Interest expense 243 286 (15.0) Other income (expense) - net 25 (11) - ---------------------------- Income before income taxes and extraordinary items 1,404 272 - Provision for income taxes 527 111 - ---------------------------- Income before extraordinary items 877 161 - Extraordinary items: Discontinuance of SFAS No. 71, net of tax - (3,041) - Early extinguishment of debt, net of tax - (77) - ---------------------------- NET INCOME (LOSS) $877 ($2,957) - ============================
Note: Certain reclassifications within the financial statements have been made to conform to the current year presentation. -----END PRIVACY-ENHANCED MESSAGE-----