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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): October 22, 1999
U S WEST Communications, Inc.
(Exact Name of Registrant as Specified in its Charter)
Colorado Commission File IRS Employer Identification
(State of Incorporation) Number 1-3040 No. 84-0273800
1801 California Street, Denver, Colorado 80202
(Address of Principal Executive Offices, Including Zip Code)
Telephone Number (303) 672-2700
(Registrant's Telephone Number, Including Area Code)
(The Exhibits Index is located on page 2 of this report.)
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<PAGE>
Item 5. Other Events
On October 22, 1999, U S WEST, Inc. filed a Form 8-K containing its third
quarter earnings results, unaudited consolidated financial statements and U S
WEST Communications, Inc.'s unaudited consolidated financial statements.
Item 7. Financial Statements and Exhibits
Exhibit Number
27 Financial Data Schedule
99 Unaudited Consolidated Statements of Operations of U S WEST
Communications, Inc. for the quarters and nine-month periods ended
September 30, 1999 and 1998, respectively.
99A.1 Unaudited Consolidated Balance Sheets of U S WEST Communications,
Inc. for the quarter and six-month period ended September 30, 1999 and
the year ended December 31, 1998, respectively.
<PAGE>
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 Communications, Inc.
By: /s/ THOMAS O. MCGIMPSEY
---------------------------------------------------------
Thomas O. McGimpsey
Assistant Secretary
Dated: October 22, 1999
<TABLE>
<CAPTION>
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
<S> <C> <C> <C> <C> <C> <C>
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
------ ------ ------ ------
Total operating revenues 2,915 2,739 6.4 8,557 8,103 5.6
------ ------ ------ ------
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
------ ------ ------ ------
Total operating expenses 2,142 2,037 5.2 6,355 6,099 4.2
------ ------ ------ ------
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)
------ ------ ------ ------
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
------ ------ ------ ------
NET INCOME $ 411 $ 360 14.2 $1,167 $1,010 15.5
====== ====== ====== ======
<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>
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS U S WEST COMMUNICATIONS, INC.
(Telephone Operations Only)
(Unaudited)
September 30, December 31,
In millions 1999 1998
- - -------------------------------------- ------------- ---------------
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 66 $ 68
Accounts receivable, net 1,703 1,619
Inventories and supplies 187 154
Deferred tax asset 121 113
Prepaid and other 98 61
------------- ---------------
Total current assets 2,175 2,015
Property, plant and equipment - net 15,423 14,681
Other assets - net 1,303 882
------------- ---------------
Total assets $ 18,901 $ 17,578
============= ===============
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Short-term debt $ 1,767 $ 789
Accounts payable 1,489 1,411
Accrued expenses 1,677 1,383
Advance billings and deposits 341 326
------------- ---------------
Total current liabilities 5,274 3,909
Long-term debt 4,976 5,154
Postretirement and other postemployment
benefit obligations 2,426 2,458
Deferred taxes, credits and other 1,761 1,594
Stockholder's equity 4,464 4,463
------------- ---------------
Total liabilities and
stockholder's equity $ 18,901 $ 17,578
============= ===============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000068622
<NAME> U S WEST Communications, Inc.
<MULTIPLIER> 1,000,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS 3-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1999 DEC-31-1998 DEC-31-1998
<PERIOD-START> JUL-01-1999 JAN-01-1999 JUL-01-1998 JAN-01-1998
<PERIOD-END> SEP-30-1999 SEP-30-1999 SEP-30-1998 SEP-30-1998
<CASH> 66 66 57 57
<SECURITIES> 0 0 0 0
<RECEIVABLES> 1,703 1,703 1,646 1,646
<ALLOWANCES> 0 0 0 0
<INVENTORY> 187 187 200 200
<CURRENT-ASSETS> 2,175 2,175 2,129 2,129
<PP&E> 36,571 36,571 34,265 34,265
<DEPRECIATION> 21,148 21,148 19,967 19,967
<TOTAL-ASSETS> 18,901 18,901 17,326 17,326
<CURRENT-LIABILITIES> 5,274 5,274 4,021 4,021
<BONDS> 4,976 4,976 4,831 4,831
0 0 0 0
0 0 0 0
<COMMON> 8,801 8,801 8,080 8,080
<OTHER-SE> (3,617) (3,617) (3,617) (3,617)
<TOTAL-LIABILITY-AND-EQUITY> 18,901 18,901 17,326 17,326
<SALES> 2,195 8,557 2,379 8,103
<TOTAL-REVENUES> 2,195 8,557 2,379 8,103
<CGS> 0 0 0 0
<TOTAL-COSTS> 0 0 0 0
<OTHER-EXPENSES> 2,142 6,355 2,037 6,099
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 102 289 103 288
<INCOME-PRETAX> 662 1,880 579 1,640
<INCOME-TAX> 251 713 219 630
<INCOME-CONTINUING> 411 1,167 360 1,010
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 411 1,167 360 1,010
<EPS-BASIC> 0 0 0 0
<EPS-DILUTED> 0 0 0 0
</TABLE>
