-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Qxfnwa0O8ltDkas8BgEC8K8wPyPZ0An0oayTGTyGSF0YH3vTBWvNz8M2YDnVEWIs hou0VAKGWYsrYn/tDqc+9w== 0000732718-98-000003.txt : 19980305 0000732718-98-000003.hdr.sgml : 19980305 ACCESSION NUMBER: 0000732718-98-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 19 CONFORMED PERIOD OF REPORT: 19971231 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980217 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: SEC FILE NUMBER: 001-08611 FILM NUMBER: 98541382 BUSINESS ADDRESS: STREET 1: 7800 E ORCHARD RD STREET 2: STE 480 CITY: ENGLEWOOD STATE: CO ZIP: 80111 BUSINESS PHONE: 3037936500 MAIL ADDRESS: STREET 1: 7800 EAST ORCHARD ROAD STREET 2: SUITE 480 CITY: ENGLEWOOD STATE: CO ZIP: 80111 8-K 1 FORM 8-K UNITED STATES 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 (Date of earliest event reported): February 6, 1998 U S WEST, Inc. (Exact name of registrant as specified in its charter)
A Delaware Corporation Commission File Number IRS Employer Identification No. (State of incorporation) 1-8611 84-0926774
7800 East Orchard Road Englewood, Colorado 80111 (Address of principal executive offices) (303) 793-6500 (Registrant's telephone number, including area code) Item 5. Other Events On February 6, 1998 U S WEST Communications Group released its four quarter 1997 earnings results. In addition, U S WEST Media Group released its fourth quarter 1997 earnings results on February 12, 1998. The releases and financial statements are attached hereto as Exhibits. Item 7. Exhibits
Exhibit Description 27 Financial Data Schedule 99 Press Release issued February 6, 1998 concerning the earnings results of U S WEST Communications Group for the fourth quarter of 1997. 99A Unaudited Combined Statements of Operations of U S WEST Communications Group for the quarters ended December 31, 1996 and 1997, and the years ended December 31, 1996 and 1997. 99A.1 Unaudited Earnings Normalization Schedule of U S WEST Communications Group for the quarters ended December 31, 1996 and 1997, and the years ended December 31, 1996 and 1997. 99A.2 Unaudited Selected Combined Group Data of U S WEST Communications Group for the quarters ended December 31, 1996 and 1997, and the years ended December 31, 1996 and 1997. 99A.3 Unaudited Combined Balance Sheets of U S WEST Communications Group as of December 31, 1996 and 1997. 99A.4 Unaudited Combined Statements of Cash Flows of U S WEST Communications Group for the years ended December 31, 1996 and 1997. 99B Press Release issued February 12, 1998 concerning the earnings results of U S WEST Media Group for the fourth quarter of 1997. 99B.1 Unaudited Pro Forma Combined Statements of Operations of U S WEST Media Group for the quarters ended December 31, 1996 and 1997, and the years ended December 31, 1996 and 1997. 99B.2 Unaudited Selected Financial Data of U S WEST Media Group for the quarters ended December 31, 1996 and 1997, and the years ended December 31, 1996 and 1997. 99B.3 Unaudited Selected Financial and Operating Highlights of Domestic Cable and Broadband for the quarters ended December 31, 1996 and 1997, and the years ended December 31, 1996 and 1997. 99B.4 Unaudited Combined Balance Sheets of U S WEST Media Grou as of December 31, 1996 and 1997. 99B.5 Unaudited Selected Proportionate Financial Data of U S WEST Media Group for the years ended December 31, 1996 and 1997. 99B.6 Unaudited Other Proportionate Information of U S WEST Medial Group for the quarters ended December 31, 1996 and 1997. 99B.7 Unaudited Investing Activity of U S WEST Media Group for the quarters ended March 31, June 30, September 30, and December 31, 1997, and year to date. 99B.8 Unaudited Investing Activity: Valuation of Investments Publicly Traded of U S WEST Media Group as of December 31, 1997. 99B.9 Unaudited Consolidated Statements of Operations of U S WEST, Inc. for the quarters ended December 31, 1996 and 1997, and the years ended December 31, 1996 and 1997. 99B.10 Unaudited Consolidated Balance Sheets of U S WEST, Inc. for quarters ended December 31, 1996 and 1997, and year ended December 31, 1996 and 1997.
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 Assistant Secretary Dated: February 17, 1998 EX-99 2 COMMUNICATIONS GROUP EARNINGS RELEASE EXHIBIT 99 Date: February 6, 1998 Contact: Dave Banks (303) 896-3040 U S WEST COMMUNICATIONS ANNOUNCES SOLID FULL-YEAR FINANCIAL RESULTS; HIGHLIGHTS NEW DATA, WIRELESS AND WIRELINE ROLL OUTS - 1997 EPS Up 6.1 Percent Before Regulatory Charges - ENGLEWOODU S WEST Communications Group (NYSE: USW) today announced fourth quarter adjusted earnings of $.60 per share before a regulatory charge. Full-year 1997 earnings per share (EPS) were $2.59, up 6.1 percent compared to 1996, similarly adjusted. On a reported basis including a regulatory charge of $250 million, the company's normalized EPS for the quarter was 28 cents - versus 63 cents for the same period in 1996 - and for the full year was $2.28 versus $2.44 in 1996. Prior to the regulatory charge: Operating revenues were up 5.7 percent for the quarter and 4.7 percent for the year. Local service revenues grew 10.1 percent for the quarter and 7 percent for the year. Normalized net income was $290 million for the quarter, down 4.6 percent, and was $1.25 billion for the year, up 7.6 percent. "1997 was a terrific year for U S WEST Communications," said Richard McCormick, chairman and CEO of U S WEST, Inc. "The company delivered on its promises, created excellent shareholder value, and offered customers unique solutions. The people of U S WEST Communications should be commended for their hard work." "We are right where we expected to be financially," said Sol Trujillo, president and chief executive officer of U S WEST Communications Group. "Operationally, we had an outstanding quarter. We entered six new markets with our integrated Access2 Advanced PCS wireless product, completed the first-ever broad commercial deployment of high-speed DSL Internet and data networking services, and increased product penetration of our core telecommunications products significantly. Truly, our customers are starting to see what we mean when we say `we are the new telco.'" -more- U S WEST Communications Fourth Quarter Earnings - Page 2 Quarterly results were impacted by accelerated spending resulting from the aggressive rollout of the company's first-in-the-nation "one-number" PCS wireless services in six markets; introduction of the first commercial high-speed DSL product; and significant spending for mandated interconnection and number portability to help foster local competition. Trujillo said that despite incurring negative regulatory hits this quarter, the company had significant wins on the federal and state level in the regulatory arena over the last few months which are already providing momentum for future financial performance. The bulk of the $250 million regulatory charge resulted from a refund to Washington customers retroactive to May 1, 1996. This refund stemmed from a 1996 Washington Utilities and Transportation Commission (WUTC) ruling which reduced the company's annual revenues by more than $90 million. In a subsequent WUTC decision last month, the company was granted an annual rate increase of approximately $60 million effective February 1, 1998. Another portion of the $250 million charge was taken to accrue for a pending regulatory ruling at the federal level. Results for the quarter were also normalized for a $32 million one-time, after-tax gain associated with the sale of Bellcore. Results for the fourth quarter 1996 were normalized to reflect the effects of a change in accounting principle and a one-time, after-tax gain associated with the sale of selected rural exchanges in Idaho. Other fourth quarter and full-year highlights include: New Product Initiatives: The roll out of U S WEST's Access2 Advanced PCS wireless service to six new markets - three in Colorado (Colorado Springs, Ft. Collins, and Greeley); two in Oregon (Portland and Salem); and Vancouver, Wash. Earlier this week, U S WEST Communications launched Access2 service in Phoenix - the third major-market introduction of the "one-number" integrated wireless/wireline service. Coverage is now over six million POPs - more than 20 percent of the population in U S WEST's 14 states. In addition to its launch of high-speed DSL MegaBit Services in Phoenix in October, the company also rolled out U S WEST.net, its Internet access service, for consumers and businesses in Phoenix and Denver during the fourth quarter. Last week, the company announced plans to roll out an upgraded MegaBit Services ADSL and U S WEST.net to customers in 40 cities throughout its region by mid-year 1998. On the small business side, sales of Centrex 21 - the company's enhanced Centrex product - increased by 52 percent during the quarter, bringing total sales to more than 211,000 units. -more- U S WEST Communications Fourth Quarter Earnings - Page 3 The continuing 1997 rollout of National Directory Assistance to nine of the company's 14 states. National DA service allows customers to obtain phone numbers anywhere in the U. S. simply by calling 1-411. U S WEST Communications continues to be the leader among the RBOCs with National DA in terms of geographic coverage and speed to market. In each market introduction, the company has attained better than 20 percent of market share. Volumes and Penetration: The addition of 683,000 access lines (adjusted for the sales of selected rural exchanges) in 1997 for an access-line growth rate of 4.4 percent. On an adjusted basis for the year, business access lines grew at 5.8 percent; residential access lines grew at 3.9 percent; and residential additional lines grew 28.4 percent, reaching a second-line penetration level of 13.7 percent. Residential penetration levels at year's end for the company's most popular custom calling features remained strong: Voice Messaging, 18 percent (tops in the industry); Caller ID, 28 percent; and Call Waiting, 39 percent. The company also has a Caller ID campaign underway, which, through Feb. 2 had added nearly 534,000 new subscribers. Through the end of the year, the company has sold more than 205,000 Home Receptionist and Business Receptionist Screen Phones, making it the industry leader in sales of this product line. These phones visually and functionally integrate a number of custom calling services, and increase penetration of vertical services. Sales and Revenues: A 23 percent increase in private line and special access revenues, which totaled $229 million for the fourth quarter -- a reflection of the company's growing data networking services business and its ability to successfully compete in one of the most highly competitive segments of the telecommunications market. Total vertical services revenue - including not only custom calling services such as call waiting, but also voice messaging and Caller ID (CLASS) services - are up 15 percent from fourth quarter 1996 to about $300 million. Those revenues now represent 11 percent of total revenues before the regulatory charge. Costs and Margins: Absorbed approximately $150 million in expenses and approximately $190 million in capital related to interconnection and number portability in 1997. The company expects to increase spending on interconnection in 1998. -more- U S WEST Communications Fourth Quarter Earnings - Page 4 Growth in cash provided by operating activities of 16 percent, or $542 million, and even stronger growth in net cash flow, enabled the company to reduce its borrowing levels by $852 million during the year. U S WEST Communications (NYSE: USW) provides a full range of telecommunications services - including wireline, wireless PCS and data networking - to more than 25 million customers in 14 western and midwestern states. The company is one of two major groups that make up U S WEST, a company in the connections business, helping customers share information, entertainment and communications services in local markets worldwide. U S WEST's other major group, MediaOne Group, is involved in domestic and international cable and telephony, wireless communications, and directory and information services. U S WEST has proposed splitting the two groups into separate public companies sometime after mid-1998, pending shareowner and other approvals. [Safe Harbor statement: This document contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission.] ### EX-99 3 EXHIBIT 99A EXHIBIT 99A COMBINED STATEMENTS OF OPERATIONS U S WEST COMMUNICATIONS GROUP (UNAUDITED)
Quarter Ended Year Ended December 31, % December 31, % In millions 1997 1996 Change 1997 1996 Change - - ------------------------ ------- --------------------- ------------- OPERATING REVENUES Local service $ 1,277 $ 1,238 3.2 $ 5,016 $ 4,770 5.2 Interstate access 638 653 (2.3) 2,666 2,507 6.3 Intrastate access 153 199 (23.1) 761 770 (1.2) Long-distance network 164 260 (36.9) 885 1,100 (19.5) Other services 284 249 14.1 991 932 6.3 ---------------- -------- -------- Total operating revenues 2,516 2,599 (3.2) 10,319 10,079 2.4 ---------------- -------- -------- OPERATING EXPENSES Employee-related 978 906 7.9 3,697 3,594 2.9 Other operating 565 457 23.6 1,870 1,634 14.4 Taxes other than income taxes 108 98 10.2 416 389 6.9 Depreciation & amort 535 542 (1.3) 2,126 2,122 0.2 ---------------- -------- -------- Total operating expenses 2,186 2,003 9.1 8,109 7,739 4.8 ---------------- -------- -------- Income from operations 330 596 (44.6) 2,210 2,340 (5.6) Interest expense 100 113 (11.5) 403 445 (9.4) Gains on sales of rural telephone exchanges - 8 - 77 59 30.5 Gain on sale of investment in Bellcore 53 - - 53 - - Other expense 21 19 10.5 73 41 78.0 ---------------- -------- -------- Income before income taxes, extd item & cum effect of change in accounting principle 262 472 (44.5) 1,864 1,913 (2.6) Income tax provision 92 161 (42.9) 684 698 (2.0) ---------------- -------- -------- Income before extd item & cum effect of change in accounting principle 170 311 (45.3) 1,180 1,215 (2.9) Extraordinary item: Early extinguishment of debt- net of tax - - - (3) - - ---------------- -------- -------- Income before cum effect of change in accounting principle 170 311 (45.3) 1,177 1,215 (3.1) Cumulative effect of change in accounting principle - net of tax - - - - 34 - ---------------- -------- -------- NET INCOME $ 170 $ 311 (45.3)$ 1,177 $ 1,249 (5.8) ================ ======== ========
5
COMBINED STATEMENTS OF OPERATIONS, U S WEST COMMUNICATIONS GROUP CONTINUED (UNAUDITED) Quarter Ended Year Ended In millions, except December 31, % December 31, % per share amounts 1997 1996 Change 1997 1996 Change - - ------------------------ ------- --------------------- ------------- Average common shares outstanding 483.9 479.9 0.8 482.8 477.5 1.1 ================ ======== ======== Earnings per common share: Income before extd item & cum effect of change in accounting principle $ 0.35 $ 0.65 (46.2) $ 2.44 $ 2.55 (4.3) Extraordinary item: Early extinguishment of debt - - - (0.01) - - Cumulative effect of change in accounting principle - - - - 0.07 - ---------------- -------- -------- Earnings per common share $ 0.35 $ 0.65 (46.2) $ 2.43 $ 2.62 (7.3) ================ ======== ========
6 EX-99 4 EXHIBIT 99A.1 EXHIBIT 99A.1 EARNINGS NORMALIZATION SCHEDULE U S WEST COMMUNICATIONS GROUP (UNAUDITED)
Quarter Ended Year Ended In millions, except December 31, % December 31, % per share amounts 1997 1996 Change 1997 1996 Change - - ------------------------ ------- --------------------- ------------- NORMALIZED INCOME: Reported net income $ 170 $ 311 (45.3 $1,177 $1,249 (5.8) Adjustments to normalize net income: Rural exchange sales - (5) - (48) (36) 33.3 Bellcore sale (32) - - (32) - - Extraordinary item-net of tax - - - 3 - - Cumulative effect of change in accounting principle-net of tax - - - - (34) - Current year effect of accounting change - net of tax - (2) - - (15) - ---------------- -------- -------- Normalized income $ 138 $ 304 (54.6) $1,100 $1,164 (5.5) ================ ======== ======== NORMALIZED EARNINGS PER COMMON SHARE: Reported net income $ 0.35 $ 0.65 (46.2) $ 2.43 $ 2.62 (7.3) Adjustments to normalize net income: Rural exchange sales - (0.01) - (0.10) (0.08) 25.0 Bellcore sale (0.07) - - (0.07) - - Extraordinary item-net of tax - - - 0.01 - - Cumulative effect of change in accounting principle-net of tax - - - - (0.07) - Current year effect of accounting change - net of tax - (0.01) - - (0.03) - ---------------- -------- -------- Normalized earnings per common share $ 0.28 $ 0.63 (55.6) $ 2.28 #$ 2.44 (6.6) ================ ======== ======== # Amount does not foot due to rounding of the individual components.
7 EX-99 5 EXHIBIT 99A.2 EXHIBIT 99A.2 SELECTED COMBINED GROUP DATA U S WEST COMMUNICATIONS GROUP (UNAUDITED)
Quarter Ended Year Ended In millions, except December 31, % December 31, % per share amounts 1997 1996 Change 1997 1996 Change - - ------------------- ------- ------- ------- ------- ------- ------- Normalized access lines (thousands): Business 4,805 4,543 5.8 4,805 4,543 5.8 Consumer 11,302 10,881 3.9 11,302 10,881 3.9 Total 16,107 15,424 4.4 16,107 15,424 4.4 Access lines (thousands): Business 4,790 4,543 5.4 4,790 4,543 5.4 Consumer 11,243 10,881 3.3 11,243 10,881 3.3 Total access lines 16,033 15,424 3.9 16,033 15,424 3.9 Billed access minutes of use (millions): Interstate 14,277 13,365 6.8 55,362 52,039 6.4 Intrastate 3,027 2,643 14.5 11,729 10,451 12.2 Total minutes of use 17,304 16,008 8.1 67,091 62,490 7.4 Employees: Communications Grp 47,568 48,037 (1.0) 47,568 48,037 (1.0) Telephone operations only 43,749 45,427 (3.7) 43,749 45,427 (3.7) Telephone empl per 10,000 access lines 27.3 29.5 (7.5) 27.3 29.5 (7.5) Dividends per common share $ 0.535 $ 0.535 - $ 2.14 $ 2.14 - Common shares outstanding 484.5 480.5 0.8 484.5 480.5 0.8 Capital expend $ 1,014 $ 798 27.1 $ 2,643 $ 2,806 (5.8) EBITDA (#1) 865 1,138 (24.0) 4,336 4,462 (2.8) EBITDA margin 34.4% 43.8% - 42.0% 44.3% - Return on equity(#2) 15.6% 31.5% - 27.9% 32.0% - Debt-to-capital ratio: Communications Grp 57.3% 62.4% - 57.3% 62.4% - Telephone operations only 55.6% 60.5% - 55.6% 60.5% - # 1: Earnings before interest, taxes, depreciation, amortization, and other (EBITDA). EBITDA also excludes gains on asset sales. # 2: Based on income before extraordinary item and cumulative effect of change in accounting principle.
8 EX-99 6 EXHIBIT A.3 EXHIBIT A.3 COMBINED BALANCE SHEETS U S WEST COMMUNICATIONS GROUP (UNAUDITED)
December 31, In millions 1997 1996 - - -------------------------------------- ------------- -------------- ASSETS Current assets: Cash and cash equivalents $ 27 $ 80 Accounts and notes receivable 1,681 1,622 Inventories and supplies 150 144 Deferred tax asset 247 171 Prepaid and other 77 65 ------------- -------------- Total current assets 2,182 2,082 ------------- -------------- Gross property, plant and equipment 33,408 32,645 Less accumulated depreciation 19,176 18,639 ------------- -------------- Property, plant and equipment - net 14,232 14,006 Other assets 832 827 ------------- -------------- Total assets $ 17,246 $ 16,915 ============= ============== LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 626 $ 834 Accounts payable 1,415 989 Dividends payable 259 257 Other 1,700 1,387 ------------- -------------- Total current liabilities 4,000 3,467 ------------- -------------- Long-term debt 5,020 5,664 Postretirement and other postemployment benefit obligations 2,468 2,387 Deferred taxes, credits and other 1,559 1,480 Communications Group equity 4,199 3,917 ------------- -------------- Total liabilities and equity $ 17,246 $ 16,915 ============= ==============
9 EX-99 7 EXHIBIT 99A.4 EXHIBIT 99A.4 COMBINED STATEMENTS OF U S WEST COMMUNICATIONS GROUP CASH FLOWS (UNAUDITED)
Year Ended December 31, In millions 1997 1996 - - ------------------------------------------------- -------- --------- OPERATING ACTIVITIES Net income $ 1,177 $ 1,249 Adjustments to net income: Depreciation and amortization 2,126 2,122 Gains on sales of rural telephone exchanges (77) (59) Gain on sale of investment in Bellcore (53) - Cumulative effect of change in accounting principle - (34) Deferred income taxes and amortization of investment tax credits (18) 91 Changes in operating assets and liabilities: Restructuring payments (66) (226) Postretirement medical and life costs, net of cash fundings 80 28 Accounts receivable (46) (5) Inventories, supplies and other (45) 27 Accounts payable and accrued liabilities 564 98 Other - net 206 15 - - ------------------------------------------------- -------- --------- Cash provided by operating activities 3,848 3,306 - - ------------------------------------------------- -------- --------- INVESTING ACTIVITIES Expenditures for property, plant and equipment (2,139) (2,419) Purchase of PCS wireless licenses (73) - Proceeds from sales of rural telephone exchanges 67 174 Proceeds from sale of investment in Bellcore 65 - Proceeds from disposals of property, plant and equipment 22 15 - - ------------------------------------------------- -------- --------- Cash (used for) investing activities (2,058) (2,230) - - ------------------------------------------------- -------- --------- FINANCING ACTIVITIES Net (repayments of) proceeds from short-term debt (510) 96 Proceeds from issuance of long-term debt 29 23 Repayments of long-term debt (445) (482) Dividends paid on common stock (992) (939) Proceeds from issuance of common stock 75 134 - - ------------------------------------------------- -------- --------- Cash (used for) financing activities (1,843) (1,168) - - ------------------------------------------------- -------- --------- CASH AND CASH EQUIVALENTS Decrease (53) (92) Beginning balance 80 172 - - ------------------------------------------------- -------- --------- Ending balance $ 27 $ 80 ================================================= ======== =========
10 EX-99 8 EXHIBIT 99B EXHIBIT 99B Date: February 12, 1998 Contacts: Steve Lang Cathy Fowler 303-793-6290 303-793-6509 U S WEST MEDIA GROUP REPORTS NINTH CONSECUTIVE QUARTER OF DOUBLE-DIGIT GROWTH IN OPERATING CASH FLOW - Pares Asset Base to Focus on Broadband in U.S. and Abroad, International Wireless - - One Million American Homes Now Can Get High-Speed Data - - International Lines of Business Cash-Flow Positive for Entire Year - ENGLEWOOD, Colo. -- U S WEST Media Group (NYSE: UMG) today reported its ninth straight quarter and second straight year of double-digit growth in operating cash flow. Media Group is changing its name to MediaOne Group as part of U S WEST's plan to split into two separate public companies. For the fourth quarter, MediaOne Group reported - on a proportionate basis: o A 27 percent increase in operating cash flow, to $677 million. MediaOne Group's operating cash flow for the fourth quarter 1996 was $534 million. Annual operating cash flow increased 18 percent, to $2.6 billion from $2.2 billion in 1996. When adjusted mainly for the sale of certain international interests, operating cash flow increased 19 percent in 1997. (The 1996 numbers have been adjusted to include Continental Cablevision's results for all of 1996, even though it didn't merge with MediaOne Group until Nov. 15, 1996.) Operating cash flow, which represents earnings before interest, taxes, depreciation and amortization (EBITDA), is a key indicator of the company's operating performance. o An 8.5 percent increase in revenue, to $2.4 billion. MediaOne Group's revenue for the fourth quarter 1996 was $2.2 billion. Annual revenue increased 12 percent, to $9.1 billion from $8.1 billion in 1996. -more- Page 2 Because MediaOne Group operates numerous joint ventures, the company uses proportionate accounting to reflect its share of operating revenues and expenses associated with these operations. "This was a solid quarter and very good year for us," said Chuck Lillis, MediaOne Group president and chief executive officer. "We announced several major strategic initiatives that allow us to focus on broadband and international wireless. We sold more than $2 billion of nonstrategic assets -- twice what we promised. And we delivered solid operations. As a result, we generated $1.2 billion of net cash flow during 1997. "All told, we made great strides during the year, both strategically and operationally. And we are well positioned and highly focused for 1998," Lillis said. During the past 12 months, the company announced strategic initiatives that include: o A plan to split from U S WEST. The process is on schedule for completion sometime after mid-1998. Included is the transfer of U S WEST Dex to U S WEST Communications at the split, removing $3.9 billion in debt from MediaOne Group's books and delivering $850 million in equity to MediaOne Group shareowners. o The pending merger of its domestic wireless assets with AirTouch, a $5.7 billion tax-efficient transaction, including the removal of $1.4 billion in debt from MediaOne Group's books. o The receipt of $2 billion from domestic and international asset sales allowing MediaOne Group to focus on its core business. Operationally during the past 12 months, the company: o Brought high-speed data capability to one million American homes, and signed up 23,000 customers, the highest penetration rate of any major provider in the U.S. o Announced that its high-speed data service, MediaOne Express, will be combined with Time Warner's Road Runner service, creating the nation's largest cable-modem operation. o Increased to 57 percent the portion of its network that has been upgraded to broadband (550 megahertz or better). o Launched telephone service to residential customers in The Netherlands and Japan, and in Belgium and Atlanta in January. -more- Page 3 o For the first time, achieved operating-cash-flow-positive results for a full year in international operations. o Hit the one-million customer milestone in two international markets: the One 2 One wireless joint venture in the U.K. and the central European wireless ventures. Fourth quarter proportionate operating highlights include: o Domestic Broadband: MediaOne ended the fourth quarter with 5.1 million customers, up 2.4 percent from last year, normalized for various transactions. Operating cash flow, including MediaOne Group's investment in Time Warner Entertainment, increased 25 percent, to $445 million. o International: MediaOne Group's wireless customer base doubled, to more than one million, compared with the end of 1996. Normalized cable subscribers grew 8 percent and telephone lines grew 33 percent compared with 1996. Operating cash flow from international operations was $22 million during the period, compared with last year's $21 million. MediaOne Group's fourth-quarter net loss was $133 million, of which $804 million related to pre-tax, noncash items. Of this, $390 million was depreciation and amortization; $414 million was equity losses, including a $200 million charge arising from the Asian monetary crisis. MediaOne Group, one of America's largest broadband communications companies, is involved in domestic and international cable and telephony, wireless communications and directory and information services. For 1997, MediaOne Group had proportionate revenue of $9.1 billion. MediaOne Group is one of two major groups that make up U S WEST, a company in the connections business, helping customers share information, entertainment and communications services in local markets worldwide. U S WEST's other major group, U S WEST Communications, provides telecommunications services in 14 western and midwestern states. U S WEST has proposed splitting the two groups into separate public companies sometime after mid-1998, pending shareowner and other approvals. ### [Safe Harbor statement: This document contains statements about expected future events and financial results that are forward-looking and subject to risk and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission.] Note: This release and the financial statements will be available on the Internet after 7:30 a.m.(MST) by accessing U S WEST's Internet site www.uswest.com U S WEST Media Group Page 4 U S WEST MEDIA GROUP - SELECTED OPERATING HIGHLIGHTS All Amounts Shown are Proportionate Unless Otherwise Stated $ in millions
- - ---------------------------------------------------------------------------------------------------------------------------------- CABLE AND BROADBAND COMMUNICATIONS - - --------------------------------------------------------------------------- ------------------------------------------------------ Domestic International - - --------------------------------------------------------------------------- ------------------------------------------------------ 1997 Growth * 1997 Growth* ---- -------- ---- ------- Total Total Revenue $5,210 6.5% Customers (000's) 899 8.2%** Operating Cash Flow $1,641 11.5% Revenue $474 29.9% Operating Cash Flow $36 up $40 Consolidated Cable (excluding new services) Homes Passed (000's) 8,373 1.9%** Multichannel Video Subscribers (000's) 5,091 2.4%** Revenue $2,303 8.9% Operating Cash Flow $1,013 10.0% High Speed Data Customers (000's) 23.0 -
- - ---------------------------------------------------------------------------------------------------------------------------------- WIRELESS - - ---------------------------------------------------------------------------------------------------------------------------------- Domestic International - - ---------------------------------------------------------------------------------------------------------------------------------- 1997 Growth 1997 Growth ---- ------ ---- ------ Cellular Total POPs (millions) 20.8 2.5% Customers (000's) 1,018 100.0% Subscribers (000's) 2,374 26.7% Revenue $756 73.4% Service Revenue $1,153 18.4% Operating Cash Flow $41 up $43 Operating Cash Flow $479 36.9% OCF as a % of service revenue 41.5% up 5.6 pp One 2 One Average revenue per customer $46.42 -11.6% Subscribers (000's) 508 86.1% (whole dollars) Market Share 12.0% PrimeCo Personal Communications Coverage 95% POPs (millions) 14.2 - Subscribers (000's) 90 -
- - -------------------------------------------------------------------------------- DIRECTORY AND INFORMATION SERVICES - - -------------------------------------------------------------------------------- Domestic International - - -------------------------------------------------------------------------------- 1997 Growth 1997 Growth ---- ------ ---- ------ Directory Publishing Total Local Advertisers (000's) 479 -0.6% Revenue $110 -46.6% Revenue $1,181 7.2% Operating Cash Flow $4 down $16 Operating Cash Flow $617 16.2% Operating Cash Flow Margin 52.2% up 4.0 pp Revenue per Advertiser (whole dollars) $2,329 7.3% * Growth rates are pro forma as if the Continental merger occurred January 1, 1996. ** Normalized for sales and a domestic acquisition.
EX-99 9 EXHIBIT 99B.1 EXHIBIT 99B.1 PRO FORMA COMBINED U S WEST MEDIA GROUP STATEMENTS OF OPERATIONS (UNAUDITED)
Quarter Ended Year Ended December 31, December 31, 1996 1996 Pro % Pro % In millions 1997 forma Change 1997 forma Change - - -------------------- ------- -------------- ------- -------------- SALES AND OTHER REVENUES $1,289 $1,224 5.3 $5,043 $4,592 9.8 OPERATING EXPENSES Costs of sales and other revenues 414 432 (4.2) 1,666 1,566 6.4 Selling, general and administrative 422 400 5.5 1,487 1,393 6.7 Depreciation 256 187 36.9 764 658 16.1 Amortization 134 134 - 530 520 1.9 ---------------- ---------------- Depreciation & amort. 390 321 21.5 1,294 1,178 9.8 ---------------- ---------------- Total oper. expenses 1,226 1,153 6.3 4,447 4,137 7.5 ---------------- ---------------- Income from operations 63 71 (11.3) 596 455 31.0 Interest expense 160 167 (4.2) 680 683 (0.4) Equity losses in unconsol. ventures 414 126 - 909 386 - Gains on sales of investments 313 - - 421 - - Guaranteed minority interest expense 21 19 10.5 87 55 58.2 Other income(expense) 31 - - 17 (32) - ---------------- ---------------- Loss before income tax benefit (188) (241) (22.0) (642) (701) (8.4) Income tax benefit 55 67 (17.9) 162 188 (13.8) ---------------- ---------------- NET LOSS (133) (174) (23.6) (480) (513) (6.4) Preferred dividends 13 13 - 52 50 4.0 ---------------- ---------------- LOSS AVAILABLE FOR COMMON STOCK $ (146)$ (187) (21.9) $ (532)$ (563) (5.5) ================ ================
-5- PRO FORMA COMBINED U S WEST MEDIA GROUP STATEMENTS OF OPERATIONS (UNAUDITED)
Quarter Ended Year Ended December 31, December 31, 1996 1996 In millions, except Pro % Pro % per share amounts 1997 forma Change 1997 forma Change - - -------------------- ------- -------------- ------- -------------- Basic and diluted average common shares outstanding 607.3 620.5 (2.1) 606.7 623.2 (2.6) ================ ================ Basic and diluted loss per common share $(0.24) $(0.30) (20.0) $(0.88) $ (0.90) (2.2) ================ ================
merger, Continental's acquisition of the remaining interest in Meredith/New Heritage Strategic Partners, L.P. and the reclassification of the Teleport Communications Group, Inc. investment to equity method as if each transaction occurred as of January 1, 1996. Also includes Continental's results for cable-telephony ventures in Singapore and Argentina. The average common shares outstanding for the quarter ended and year ended December 31, 1996, include 131.3 million shares related to the Continental merger as if it had occurred as of January 1, 1996. -6- EX-99 10 EXHIBIT 99B.2 EXHIBIT 99B.2 SELECTED FINANCIAL DATA U S WEST MEDIA GROUP (UNAUDITED)
Quarter Ended Year Ended December 31, December 31, 1996 % 1996 % In millions 1997 Pro forma Change 1997 Pro forma Change - - ------------------------------------------------------------------------ Consolidated Revenues Cable & broadband Domestic $ 602 $ 546 10.3 2,323 $2,125 9.3 Int'l 4 6 (33.3) 18 6 - Wireless Domestic 357 314 13.7 1,428 1,183 20.7 Directory & info. svcs. Domestic 318 294 8.2 1,197 1,120 6.9 Int'l - 57 - 48 139 (65.5) Corp. & Other 8 7 14.3 29 19 52.6 ------------------ ------------------ Total $1,289 $1,224 5.3 $5,043 $4,592 9.8 ================== ================== Consolidated EBITDA Cable & broadband Domestic $ 239 $ 209 14.4 $ 930 $ 892 4.3 Int'l (4) (4) - (6) (4) 50.0 Wireless Domestic 98 83 18.1 533 390 36.7 Int'l (1) (2) (50.0) (11) (2) - Directory & info. svcs. Domestic 164 139 18.0 586 488 20.1 Int'l - 13 - (4) 14 - Corp. & Other (43) (46) (6.5) (138) (145) (4.8) ------------------ ------------------ Total $ 453 $ 392 15.6 $1,890 $1,633 15.7 ================== ==================
The 1996 amounts are pro forma as if the Continental Cablevision merger occurred January 1, 1996. EX-99 11 EXHIBIT 99B.3 EXHIBIT 99B.3 SELECTED FINANCIAL AND DOMESTIC CABLE AND BROADBAND OPERATING HIGHLIGHTS (UNAUDITED)
Quarter Ended Year Ended December 31, December 31, 1996 1996 Dollars in Pro % Pro % millions 1997 forma Change 1997 forma Change - - ------------------------- ---------------- -------- -------- -------- Domestic Cable & Broadband Results Revenues Basic cable $ 387 $ 348 11.2 $ 1,518 $1,372 10.6 Premium 81 86 (5.8) 326 346 (5.8) Advertising 38 37 2.7 129 126 2.4 Primestar 31 20 55.0 109 69 58.0 Pay-per-view 13 15 (13.3) 56 49 14.3 New prod. tier 4 2 - 13 4 - Equip. & Install 40 34 17.6 152 133 14.3 Other 8 4 - 20 26 (23.1) ------------------- ------------------- Total Revenue $ 602 $ 546 10.3 $ 2,323 $2,125 9.3 ------------------- ------------------- EBITDA Core cable $ 262 $ 219 19.6 $ 997 $ 912 9.3 Primestar 4 2 - 16 9 77.8 Other (27) (12) - (83) (29) - ------------------- ------------------- Total EBITDA $ 239 $ 209 14.4 $ 930 $ 892 4.3 ------------------- ------------------- EBITDA margins Core cable 46.5% 41.9% 45.4% 44.6% Primestar 12.9% 10.0% 14.7% 13.0% Other Operating & Financial Highlights Homes passed (thousands) 8,373 8,294 1.9* 8,373 8,294 1.9* Subscribers (thousands): Basic cable 4,910 4,866 1.6* 4,910 4,866 1.6* Primestar 181 138 31.2 181 138 31.2 Basic pen. 58.6% 58.7% 58.6% 58.7% Premium units (thousands) 4,012 3,862 4.2* 4,012 3,862 4.2* Premium/Basic 81.7% 79.4% 81.7% 79.4% High speed data cust. (actual) 23,000 - - 23,000 - - Core cbl. mnly. rev./avg. sub $ 38.52 $ 36.54 5.4 $ 37.76 $36.06 4.7 The 1996 amounts are pro forma as if the Continental Cablevision merger occurred January 1, 1996. * Excluding the effects of an acquisition and dispositions.
-8- EX-99 12 EXHIBIT 99B.4 EXHIBIT 99B.4 COMBINED BALANCE SHEETS U S WEST MEDIA GROUP (UNAUDITED) December 31,
In millions 1997 1996 - - --------------------------------------- ------------ ------------ ASSETS Current assets: Cash and cash equivalents $ 184 $ 121 Accounts and notes receivable 589 508 Deferred directory costs 257 259 Marketable securities - 58 Other assets 298 193 ----------- ----------- Total current assets 1,328 1,139 ----------- ----------- Property, plant and equipment - net 4,348 4,275 Investment in Time Warner Entertainment 2,486 2,477 Net investment in international ventures 475 1,548 Net investment in assets held for sale 419 409 Intangible assets - net 12,597 12,595 Other assets 961 1,618 ----------- ----------- Total assets $ 22,614 $ 24,061 =========== =========== LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 804 $ 217 Due to Continental shareholders - 1,150 Accounts payable 432 425 Deferred revenue and customer deposits 152 129 Other payables 1,038 795 ----------- ----------- Total current liabilities 2,426 2,716 ----------- ----------- Long-term debt 8,228 8,636 Deferred income taxes 3,262 3,600 Deferred credits and other 393 346 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely Company-guaranteed debentures 1,080 1,080 Preferred stock subject to mandatory redemption 100 51 Media Group equity 7,171 7,723 Company LESOP guarantee (46) (91) ----------- ----------- Total equity 7,125 7,632 ----------- ----------- Total liabilities and equity $ 22,614 $ 24,061 =========== ===========
-9- EX-99 13 EXHIBIT 99B.5 EXHIBIT 99B.5 SELECTED PROPORTIONATE U S WEST MEDIA GROUP FINANCIAL DATA (UNAUDITED)
Quarter Ended Year Ended December 31, December 31, 1996 % 1996 % In millions 1997 Pro forma Change 1997 Pro forma Change - - -------------------------- ----------------- -------- --------------- Proportionate Revenues Cable & broadband Domestic $1,402 $1,322 6.1 $5,210 $4,893 6.5 Int'l 109 109 - 474 365 29.9 Wireless Domestic 331 288 14.9 1,340 1,075 24.7 Int'l 234 138 69.6 756 436 73.4 Directory & info. svcs. Domestic 319 294 8.5 1,200 1,120 7.1 Int'l 19 75 (74.7) 110 206 (46.6) Corp. & Other 5 3 66.7 17 12 41.7 ----------------- --------------- Total $2,419 $2,229 8.5 $9,107 $8,107 12.3 ================= =============== Proportionate EBITDA Cable & broadband Domestic $ 445 $ 356 25.0 $1,641 $1,472 11.5 Int'l (2) 9 - 36 (4) - Wireless Domestic 68 54 25.9 398 307 29.6 Int'l 21 (3) - 41 (2) - Directory & info. svcs. Domestic 162 139 16.5 581 488 19.1 Int'l 3 15 (80.0) 4 20 (80.0) Corp. & Other (20) (36) (44.4) (80) (66) 21.2 ----------------- ---------------- Total $ 677 $ 534 26.8 $2,621 $2,215 18.3 ================= ================ The 1996 amounts are pro forma as if the Continental Cablevision merger occurred January 1, 1996.
-10- EX-99 14 EXHIBIT 99B.6 EXHIBIT 99B.6 OTHER PROPORTIONATE INFORMATION U S WEST MEDIA GROUP (UNAUDITED)
Quarter Ended December 31, % In thousands unless noted 1997 1996 Change - - ---------------------------- --------- --------- --------- Cable & broadband Domestic Homes passed 12,313 12,191 1.0 Subscribers 7,705 7,562 1.9 International Homes passed 2,030 2,450 18.8 * Cable subscribers 899 1,151 8.2 * Telephone lines 403 303 33.0 Wireless Domestic Cellular POPs-managed (millions) 20.8 20.3 2.5 Cellular subscribers 2,374 1,873 26.7 PCS POPs (millions) 14.2 14.7 (3.4) PCS subscribers 90 9 - International POPs (millions) 76.9 77.3 (0.5) Subscribers 1,018 509 100.0 Directory & information svcs. Dex revenue per directory advertiser (whole dollars) $ 2,329 $ 2,171 7.3 * Excludes the effects of the sale of Fintelco.
-11- EX-99 15 EXHIBIT 99B.7 EXHIBIT 99B.7 INVESTING ACTIVITY U S WEST MEDIA GROUP
Quarter Ended Dec Sep June Mar 31, 30, 30, 31, YTD In millions 1997 1997 1997 1997 Total - - --------------------------------------------------------------------- Cash from (used for) investing activities Cable & broadband Domestic invest. (1) $ (397) $ (295) $ (300) $ (261) $(1,253) Int'l invest. (6) (277) (9) (12) (304) Wireless Domestic invest. (115) (113) (123) (141) (492) Int'l invest. (8) - - (34) (42) Directory & Other (25) (12) (6) (16) (59) Asset sales 1,113 320 419 206 2,058 -------------------------------------------- Total $ 562 $ (377) $ (19) $ (258) $ (92) ============================================
Assets Sold Year-to-Date - - ----------------------------------------------------------------- Asset Closed Proceeds (millions) - - ----------------------------------------------------------------- France PCN 1Q 81 Time Warner Inc. 2Q 220 Thomson Directories 2Q 121 Polska 4Q 27 Fintelco (2) 4Q 641 Teleport Communications Various 678 Capital Assets Various 231 Other Various 59 ------ Total 2,058 ====== (1) Excludes $1,150 paid to Continental shareholders in first quarter 1997. (2) Total sale price was approximately $1.1 billion, with consideration in the form of cash and assumption of debt. Media Group's cash proceeds in connection with this transaction amount to $641 million.
-12- EX-99 16 EXHIBIT 99B.8 EXHIBIT 99B.8 INVESTING ACTIVITY U S WEST MEDIA GROUP (UNAUDITED)
Valuation of Investments Publicly Traded - - ----------------------------------------------------------------- Number Price per Total of shares share as of value Investment (thousands) 12/31/97 (millions) - - ----------------------------------------------------------------- Telewest (TWSTY) 37,875 $ 12.25 464.0 Home Shopping Network(HSNI) 220 51.50 11.3 Flextech (FLXT) 10,519 8.67 91.2 Sportsline (SPLN) 1,996 10.75 21.5 Preview Media (PTVL) 933 7.63 7.1
-13- EX-99 17 EXHIBIT B.9 EXHIBIT 99B.9 CONSOLIDATED STATEMENTS OF U S WEST, Inc. OPERATIONS (UNAUDITED)
Quarter Ended Year Ended December 31, % December 31, % In millions 1997 1996 Change 1997 1996 Change - - ---------------------- ------- ------- ------ ------- ------- ------ SALES & OTHER REVENUE $3,764 $3,558 5.8 $15,235 $12,911 18.0 OPERATING EXPENSES Employee-related 1,285 1,166 10.2 4,917 4,412 11.4 Other operating 1,045 848 23.2 3,617 2,671 35.4 Taxes other than income taxes 116 110 5.5 475 429 10.7 Depreciation & amort 925 748 23.7 3,420 2,544 34.4 ------- ------- ------- ------- Total oper expenses 3,371 2,872 17.4 12,429 10,056 23.6 ------- ------- ------- ------- Income from operations 393 686 (42.7) 2,806 2,855 (1.7) Interest expense 260 201 29.4 1,083 612 77.0 Equity losses in unconsol ventures 414 122 - 909 346 - Gains on sales of investments 313 - - 421 - - Gains on sales of rural telephone exchanges - 8 - 77 59 30.5 Gain on sale of investment in Bellcore 53 - - 53 - - Guaranteed minority interest expense 22 19 15.8 87 55 58.2 Other income (expense) 11 (14) - (56) (61) 8.2 -------- ------- ------- ------- Income before inc taxes, extd item & cum effect of chg in acctg princ 74 338 (78.1) 1,222 1,840 (33.6) Income tax provision 37 108 (65.7) 522 696 (25.0) -------- ------- ------- ------- Income before extd item & cum effect of chg in acctg princ 37 230 (83.9) 700 1,144 (38.8) Extraordinary item: Early extinguishment of debt - net of tax - - - (3) - - -------- ------- ------- ------- Income before cum effect of chg in acctg princ 37 230 (83.9) 697 1,144 (39.1) Cumulative effect of change in accounting principle - net of tax - - - - 34 - -------- ------- ------- ------- NET INCOME 37 230 (83.9) 697 1,178 (40.8) Preferred dividends 13 6 - 52 9 - -------- ------- ------- ------- EARNINGS AVAILABLE FOR COMMON STOCK $ 24 $ 224 (89.3) $ 645 $1,169 (44.8) ======= ======= ======= =======
1 CONSOLIDATED STATEMENTS OF U S WEST, Inc. OPERATIONS (UNAUDITED)
Quarter Ended Year Ended In millions, except December 31, % December 31, % per share amounts 1997 1996 Change 1997 1996 Change - - ----------------------------- ----- -------- ------- ------- ------ COMMUNICATIONS GROUP: Average common shares outstanding 483.9 479.9 0.8 482.8 477.5 1.1 =============== ======= ======= Earnings per common share: Income before extd item & cum effect of change in accounting principle $ 0.35 $ 0.65 (46.2) $ 2.44 $ 2.55 (4.3) Extraordinary item: Early extinguishment of debt - - - (0.01) - - Cumulative effect of change in accounting principle - - - - 0.07 - ------- -------- -------- -------- Earnings per common share $ 0.35 $ 0.65 (46.2) $ 2.43 $ 2.62 (7.3) ======= ======== ======== ======= MEDIA GROUP: Average common shares outstanding 607.3 546.8 11.1 606.7 491.9 23.3 ======= ======== ======== ======= Loss per common share $(0.24) $ (0.16) 50.0 $ (0.88) $ (0.16) - ======= ======== ======== =======
2 CONSOLIDATED STATEMENTS OF U S WEST, Inc. OPERATIONS (UNAUDITED)
Quarter Ended Year Ended December 31, % December 31, % Dollars in millions 1997 1996 Change 1997 1996 Change - - ----------------------------- ------- ------ ------ ------- ------ SELECTED CONSOLIDATED DATA Capital expenditures $1,502 $1,137 32.1 $4,174 $3,474 20.1 Debt-to-capital ratio (#1) 54.0% 54.8% - 54.0% 54.8% - Employees 67,461 69,286 (2.6) 67,461 69,286 (2.6) EBITDA $1,318 $1,434 (8.1) $6,226 $5,399 15.3 EBITDA margin 35.0% 40.3% - 40.9% 41.8% - #1 Ratio includes preferred securities and other preferred stock subject to mandatory redemption as a component of total capital. Including debt related to the net investment in assets held for sale, preferred securities and other preferred stock subject to mandatory redemption, the Company's percentage of debt to total capital was 58.9% and 59.6% at December 31, 1997 and 1996, respectively.
3 EX-99 18 EXHIBIT 99B.10 EXHIBIT 99B.10 CONSOLIDATED BALANCE SHEETS U S WEST, Inc. (UNAUDITED)
December 31, In millions 1997 1996 - - ------------------------------------------ ------------ ------------- ASSETS Current assets: Cash and cash equivalents $ 211 $ 201 Accounts and notes receivable 2,249 2,113 Inventories and supplies 179 159 Deferred tax asset 373 213 Prepaid and other 387 426 ------------ ------------- Total current assets 3,399 3,112 ------------ ------------- Property, plant and equipment - net 18,580 18,281 Investment in Time Warner Entertainment 2,486 2,477 Net investment in international ventures 475 1,548 Intangible assets - net 12,674 12,595 Net investment in assets held for sale 419 409 Other assets 1,707 2,433 ------------ ------------- Total assets $ 39,740 $ 40,855 ============ ============= LIABILITIES AND SHAREOWNERS' EQUITY Current liabilities: Short-term debt $ 1,430 $ 1,051 Accounts payable 1,751 1,316 Due to Continental Cablevision shareholders - 1,150 Dividends payable 268 263 Other payables 2,866 2,294 ------------ ------------- Total current liabilities 6,315 6,074 ------------ ------------- Long-term debt 13,248 14,300 Postretirement and other postemployment benefit obligations 2,570 2,479 Deferred taxes 4,068 4,349 Deferred credits and other 1,035 973 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely Company-guaranteed debentures 1,080 1,080 Preferred stock subject to mandatory redemption 100 51 Shareowners' equity: Preferred shares 923 920 Common shares 10,876 10,741 Retained earnings (deficit) (334) 18 LESOP guarantee (46) (91) Foreign currency translation adjustments (95) (39) ------------ ------------- Total shareowners' equity 11,324 11,549 ------------ ------------- Total liabilities & shareowners' equity $ 39,740 $ 40,855 ============ =============
4 EX-27 19 FDS --
5 0000732718 U S WEST, Inc. 1,000,000 3-MOS 12-MOS DEC-31-1997 DEC-31-1997 OCT-01-1997 JAN-01-1997 DEC-31-1997 DEC-31-1997 211 211 0 0 2,249 2,249 0 0 179 179 3,399 3,399 39,223 39,223 20,643 20,643 39,740 39,740 6,315 6,315 13,248 13,248 1,180 1,180 923 923 10,876 10,876 (475) (475) 39,740 39,740 3,764 15,235 3,764 15,235 0 0 0 0 3,371 12,429 0 0 260 1,083 74 1,222 37 522 37 700 0 0 0 (3) 0 0 24 645 .35 2.43 .35 2.41
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