10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 001-07155

DEX MEDIA, INC.

(Exact name of registrant as specified in its charter)

Delaware	13-2740040
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
2200 West Airfield Drive, P.O. Box 619810 D/FW Airport, TX	75261
(Address of principal executive offices)	(Zip Code)

(972) 453-7000

  (Registrant’s telephone number, including area code)

(Former name, former address and former

fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Securities Exchange Act of 1934.

Large accelerated filer o	Accelerated filer x	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).

Yes o No x

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes x No o

As of May 1, 2015, there were 17,619,933 shares of the registrant's common stock outstanding.

DEX MEDIA, INC.

INDEX TO FORM 10-Q

	Page
Forward-Looking Statements	i
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Comprehensive (Loss) for the three months ended March 31, 2015 and 2014	1
Consolidated Balance Sheets at March 31, 2015 and December 31, 2014	2
Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014	3
Notes to Consolidated Financial Statements	4
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3. Quantitative and Qualitative Disclosures About Market Risk	26
Item 4. Controls and Procedures	26
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	27
Item 1A. Risk Factors	28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 6. Exhibits	29
SIGNATURES	30

EX-31.1

EX-31.2

EX-32.1

EX-101.INS - XBRL INSTANCE DOCUMENT

EX-101.SCH - XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT

EX-101.CAL - XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT

EX-101.DEF - XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT

EX-101.LAB - XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT

EX-101.PRE - XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some statements included in this report constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Statements that include the words “may,” “will,” “could,” “should,” “would,” “believe,” “anticipate,” “forecast,” “estimate,” “expect,” “preliminary,” “intend,” “plan,” “project,” “outlook” and similar statements of a future or forward-looking nature identify forward-looking statements. You should not place undue reliance on these statements, as they are not guarantees of future performance. Forward-looking statements provide current expectations with respect to our financial performance and future events with respect to our business and industry in general. Forward-looking statements are based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following:

Ÿour ability to provide assurance for the long-term continued viability of our business;

Ÿ    our ability to comply with the financial covenants and other restrictive covenants in our credit facilities;

Ÿ limitations on our operating and strategic flexibility and the ability to operate our business, finance our capital needs or expand business strategies under the terms of our credit facilities;

Ÿ limited access to capital markets and increased borrowing costs resulting from our leveraged capital structure and debt ratings;

Ÿ our ability to obtain additional financing or refinance our existing indebtedness on satisfactory terms or at all;

Ÿ our ability to accurately report our financial results due to a material weakness in our internal control over financial reporting;

Ÿ possible changes in our credit rating;

Ÿ changes in our operating performance;

Ÿ our ability to implement our business transformation program as planned;

Ÿ our ability to realize the anticipated benefits in the amounts and at the times expected from the business transformation program;

Ÿ the risk that the amount of costs associated with our business transformation program will exceed estimates;

Ÿ reduced advertising spending and increased contract cancellations by our clients, which causes reduced revenue;

Ÿ declining use of print yellow page directories by consumers;

Ÿ our ability to collect trade receivables from clients to whom we extend credit;

Ÿ credit risk associated with our reliance on small and medium sized businesses as clients;

Ÿ our ability to anticipate or respond to changes in technology and user preferences;

Ÿ our ability to maintain agreements with major Internet search and local media companies;

Ÿ competition from other yellow page directory publishers and other traditional and new media including increased competition from existing and emerging digital technologies;

Ÿ changes in the availability and cost of paper and other raw materials used to print our directories;

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Ÿ our reliance on third-party providers for printing, publishing and distribution services;

Ÿ our ability to attract and retain qualified key personnel;

Ÿ our ability to maintain good relations with our unionized employees;

Ÿ changes in labor, business, political and economic conditions;

Ÿ changes in governmental regulations and policies and actions of federal, state and local municipalities impacting our businesses;

Ÿ the outcome of pending or future litigation and other claims; and

Ÿ other events beyond our control that may result in unexpected adverse operating results.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this and other periodic reports we file with the Securities and Exchange Commission ("SEC"), including the information in this report and "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2014. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. All forward-looking statements included in this report are expressly qualified in their entirety by the foregoing cautionary statements.  You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof or, in the case of statements incorporated by reference, on the date of the document incorporated by reference and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

ii

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

Dex Media, Inc. and Subsidiaries

Consolidated Statements of Comprehensive (Loss)

(Unaudited)

	Three Months Ended March 31,
(in millions, except per share data)	2015			2014
Operating Revenue	$	406		$	456
Operating Expenses
Selling	96			115
Cost of service (exclusive of depreciation and amortization)	141			150
General and administrative	37			23
Depreciation and amortization	106			161
Total Operating Expenses	380			449
Operating Income	26			7
Interest expense, net	85			90
(Loss) Before Provision (Benefit) for Income Taxes	(59		)	(83		)
Provision (benefit) for income taxes	—			(1		)
Net (Loss)	$	(59	)	$	(82	)
Other Comprehensive (Loss)
Adjustments for pension and other post-employment benefits, net of taxes	3			2
Comprehensive (Loss)	$	(56	)	$	(80	)
Basic and diluted (loss) per common share	$	(3.39	)	$	(4.74	)
Basic and diluted weighted average common shares outstanding	17.4			17.3

The accompanying notes are an integral part of the consolidated financial statements.

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Dex Media, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(in millions, except share data)	At March 31, 2015			At December 31, 2014
Assets
Current Assets
Cash and cash equivalents	$	171		$	171
Accounts receivable, net of allowances of $29 and $30	142			151
Deferred directory costs	150			161
Prepaid expenses and other	12			14
Total current assets	475			497
Fixed assets and capitalized software, net	54			64
Goodwill	315			315
Intangible assets, net	701			794
Pension assets	49			45
Other non-current assets	6			7
Total Assets	$	1,600		$	1,722
Liabilities and Shareholders' (Deficit)
Current Liabilities
Current maturities of long-term debt	$	132		$	124
Accounts payable and accrued liabilities	132			167
Accrued interest	11			20
Deferred revenue	85			93
Total current liabilities	360			404
Long-term debt	2,250			2,272
Employee benefit obligations	125			127
Deferred tax liabilities	29			30
Unrecognized tax benefits	11			11
Other liabilities	2			—
Shareholders' (Deficit)
Common stock, par value $.001 per share, authorized – 300,000,000 shares; issued and outstanding – 17,623,266 shares at March 31, 2015 and 17,608,580 shares at December 31, 2014	—			—
Additional paid-in capital	1,555			1,554
Retained (deficit)	(2,650		)	(2,591		)
Accumulated other comprehensive (loss)	(82		)	(85		)
Total shareholders' (deficit)	(1,177		)	(1,122		)
Total Liabilities and Shareholders' (Deficit)	$	1,600		$	1,722

The accompanying notes are an integral part of the consolidated financial statements.

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Dex Media, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
(in millions)	2015			2014
Cash Flows from Operating Activities
Net (loss)	$	(59	)	$	(82	)
Reconciliation of net (loss) to net cash provided by operating activities:
Depreciation and amortization	106			161
Provision for deferred income taxes	(3		)	(3		)
Provision for bad debts	5			6
Non-cash interest expense	25			22
Stock-based compensation expense	1			1
Employee retiree benefits	1			(15		)
Changes in assets and liabilities:
Accounts receivable	4			37
Deferred directory costs	11			5
Other current assets	2			5
Accounts payable and accrued liabilities	(47		)	(40		)
Other items, net	—			3
Net cash provided by operating activities	46			100
Cash Flows from Investing Activities
Additions to fixed assets and capitalized software	(3		)	(3		)
Net cash (used in) investing activities	(3		)	(3		)
Cash Flows from Financing Activities
Debt repayments	(38		)	(74		)
Debt issuance costs and other financing items, net	(5		)	—
Net cash (used in) financing activities	(43		)	(74		)
Increase in cash and cash equivalents	$	—		$	23
Cash and cash equivalents, beginning of year	171			156
Cash and cash equivalents, end of period	$	171		$	179
Supplemental Information
Cash interest on debt	$	66		$	74
Cash income taxes, net	$	3		$	—

The accompanying notes are an integral part of the consolidated financial statements.

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Dex Media, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

Note 1

Business and Basis of Presentation

Business

Dex Media, Inc. ("Dex Media", "we", "our", or the "Company") is a leading provider of local marketing solutions to over 475,000 business clients across the United States. Our approximately 1,700 sales employees work directly with our clients to provide multiple local marketing solutions to help our clients connect with their customers.

Our local marketing solutions are primarily sold under various “Dex” and “Super” brands, including print yellow page directories, online local search engine websites, mobile local search applications, and placement of our client’s information and advertisements on major search engine websites, with which we are affiliated. Our local marketing solutions also include website development, search engine optimization, market analysis, video development and promotion, reputation management, social media marketing, and tracking/reporting of customer leads.

Our print yellow page directories are co-branded with various local telephone service providers; including Verizon Communications Inc. ("Verizon"), AT&T Inc., CenturyLink, Inc., FairPoint Communications, Inc., and Frontier Communications Corporation. We operate as the authorized publisher of print yellow page directories in some of the markets where they provide telephone service, and we hold multiple agreements governing our relationship with each company, including publishing agreements, branding agreements, and non-competition agreements.

Basis of Presentation

The Company prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States. Pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"), the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring items and accruals, necessary to fairly present the financial position, results of operations and cash flows of Dex Media and its subsidiaries. All inter-company transactions have been eliminated. The Company is managed as a single business segment. These unaudited interim financial statements, prepared in accordance with GAAP, do not contain all information and footnote disclosures normally included in audited annual financial statements and, as such, should be read in conjunction with the Dex Media Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three months ended March 31, 2015 may not be indicative of results of operations for the 2015 fiscal year.

The preparation of these financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.

Certain prior period amounts on our consolidated financial statements have been reclassified to conform to current year presentation.

Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs", ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years beginning after December 15, 2015, and for interim periods within those years. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In January 2015, the FASB issued ASU 2015-01, "Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items", ("ASU 2015-01"). ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Eliminating the concept of extraordinary items will save

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time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary (even if they ultimately would conclude it is not). The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in ASU 2015-01 are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. A reporting entity also may apply the amendments retrospectively to all periods presented in the financial statements. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 will require management for each annual and interim reporting period to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period," ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures.

Note 2

Merger

Dex Media was created as a result of the merger between Dex One Corporation (“Dex One”) and SuperMedia Inc. (“SuperMedia”) on April 30, 2013. The merger was completed pursuant to the Amended and Restated Agreement and Plan of Merger dated as of December 5, 2012 (the "Merger Agreement"), which provided, among other things, that if either Dex One or SuperMedia were unable to obtain the requisite consents to the merger from their respective stockholders and to the contemplated amendments to their respective financing agreements from their senior secured lenders to consummate the transactions on an out-of-court basis, the merger could be effected through voluntary pre-packaged plans of reorganization ("the Prepackaged Plans") under Chapter 11 of Title 11 of the United States Code ("Chapter 11"). Because neither Dex One nor SuperMedia were able to obtain the requisite consents to complete the merger out of court, each of Dex One and SuperMedia and all of their domestic subsidiaries voluntarily filed pre-packaged bankruptcy petitions under Chapter 11 on March 18, 2013, in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). On April 29, 2013, the Bankruptcy Court entered separate orders confirming each of the Prepackaged Plans. On April 30, 2013, Dex One and SuperMedia consummated the merger and other transactions contemplated by the Merger Agreement and emerged from Chapter 11 protection. Effective with the emergence from bankruptcy and the consummation of the merger, each share of Dex One common stock was converted into 0.2 shares of common stock of Dex Media and each share of SuperMedia common stock was converted into 0.4386 shares of common stock of Dex Media.

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We accounted for the business combination using the acquisition method of accounting in accordance with ASC 805, "Business Combinations",with Dex One identified as the acquiring entity for accounting purposes. Dex One was considered the acquiring entity for accounting purposes based on certain criteria including, but not limited to, the fact that (1) upon consummation of the merger, Dex One shareholders held approximately 60% of the common stock of Dex Media as compared to approximately 40% held by SuperMedia shareholders and (2) Dex One's chairman of the board of directors continued as the chairman of the board of directors of Dex Media.

Prior to the merger with Dex One, SuperMedia had $386 million of deferred revenue and $122 million of deferred directory costs on its consolidated balance sheet. As a result of acquisition accounting, the fair value of deferred revenue at April 30, 2013 for SuperMedia was determined to have no value, equating to $386 million of revenue that would have been amortized by SuperMedia from May 2013 through April 2014, that was not recognized by Dex Media. SuperMedia had minimal, if any, remaining performance obligations related to its clients who previously contracted for advertising, thus, no value was assigned to its deferred revenue. The fair value of deferred directory costs as of April 30, 2013 for SuperMedia was determined to have no value, other than paper held in inventory and prepayments associated with future publications. These costs did not have any future value since SuperMedia has already incurred the costs to produce the clients' advertising and did not anticipate to incur any significant additional costs associated with those published directories. This equated to $93 million of cost that would have been amortized by SuperMedia from May 2013 through April 2014, that was not recognized by Dex Media. As a result, our financial results for the three months ended March 31, 2014 excluded revenue of approximately $30 million and net income of approximately $14 million, which would have been recognized absent the effect of acquisition accounting. The exclusion of these results from the consolidated statements of comprehensive (loss) of Dex Media, did not impact our cash flows.

Associated with the integration of the two companies, we incurred merger integration costs. Merger integration costs represent costs incurred to achieve synergies related to the merger of Dex One and SuperMedia. These costs include severance, professional fees and contract services. As part of the merger, there were a large number of processes, policies, procedures, operations, technologies and systems to be integrated. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive (loss). During the three months ended March 31, 2014, the Company incurred $18 million of merger integration costs, of which $10 million represents severance costs. The Company will not incur any merger integration costs in 2015.

Note 3

Business Transformation Costs

On December 11, 2014, the Company announced an organizational restructuring program, the costs of which the Company has identified as business transformation costs. The program is designed to reorganize and strategically refocus the Company. The program includes the launch of virtual sales offices, enabling the Company to eliminate field sales offices, the automation of the sales process, integration of systems to eliminate duplicative systems and workforce reductions. The Company expects charges associated with the program to range from $70 million to $100 million. Inception to date, the Company has incurred $52 million associated with the program.

During the three months ended March 31, 2015, the Company recorded $9 million of business transformation costs, including $5 million associated with lease costs and $3 million associated with system consolidation costs. The Company did not record any business transformation costs during the three months ended March 31, 2014.

Business transformation costs are recorded as general and administrative expense in our consolidated statement of comprehensive income (loss).

The following table reflects the liability associated with the program as of March 31, 2015.

	Beginning Balance							Ending Balance
	January 1, 2015		Expense		Payments			March 31, 2015
	(in millions)
Severance costs	$	38	$	—	$	(23	)	$	15
Lease costs	—		5		(1		)	4
System consolidation costs	—		3		(3		)	—
Other costs	—		1		(1		)	—
Total costs	$	38	$	9	$	(28	)	$	19

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Note 4

Earnings (Loss) Per Share

The following table sets forth the calculation of the Company’s basic and diluted (loss) per share for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015			2014
	(in millions, except per share amounts)
Net (loss)	$	(59	)	$	(82	)
Basic and diluted weighted-average common shares outstanding	17.4			17.3
Basic and diluted (loss) per common share	$	(3.39	)	$	(4.74	)

Basic earnings (loss) per share are computed by dividing net income (loss) by the number of weighted-average common shares outstanding during the reported period. Diluted earnings per share are calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. Due to the Company's reported net (loss) for the three months ended March 31, 2015 and 2014, the effect of all stock-based awards was anti-dilutive and therefore not included in the calculation of earnings per share. For the three months ended March 31, 2015, and 2014 there were 0.9 million shares and 0.5 million shares of the Company’s stock-based awards, respectively, that had exercise prices that exceeded the average market price of the Company’s common stock. These shares were not included in our weighted average diluted shares outstanding.

Certain employees were granted restricted stock awards, which entitles those participants to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of the Company’s common stock. As such, these unvested restricted stock awards meet the definition of a participating security. Participating securities are defined as unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) and are included in the computation of earnings per share pursuant to the two-class method. At March 31, 2015 and March 31, 2014 there were 0.2 million and 0.3 million of such participating securities outstanding, respectively. Under the two-class method, all earnings, whether distributed or undistributed, are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. However, the net (loss) from continuing operations for the three months ended March 31, 2015 and 2014 was not allocated to these participating securities, as these awards do not share in any loss generated by the Company.

Note 5

Additional Financial Information

Consolidated Statements of Comprehensive (Loss)

General and administrative expense

The Company’s general and administrative expense for the three months ended March 31, 2014 includes certain one-time credits to expense. The Company recorded a $13 million credit to expense associated with plan amendments to its other post-employment benefits, which eliminated the Company’s obligation to provide a subsidy for retiree health care. The Company also recorded a $10 million credit to expense associated with the settlement of a liability under a publishing agreement. Additionally, the Company recorded $5 million in credits to expense associated with the reduction of certain operating tax liabilities.

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Depreciation and amortization

The following tables set forth the components of the Company's depreciation and amortization expense for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015		2014
	(in millions)
Amortization of intangible assets	$	93	$	147
Amortization of capitalized software	7		10
Depreciation of fixed assets	6		4
Total depreciation and amortization	$	106	$	161

Interest expense, net

The Company recorded interest expense, net of $85 million and $90 million for the three months ended March 31, 2015 and 2014, respectively. Interest expense, net consists primarily of interest expense associated with our debt obligations, non-cash interest expense associated with the amortization of debt fair value adjustments, amortization of debt discounts, non-cash interest expense associated with payment-in-kind interest related to our senior subordinated notes, and non-cash interest expense associated with the amortization of deferred financing cost, offset by interest income. Non-cash interest expense was $25 million for the three months ended March 31, 2015, compared to $22 million for the three months ended March 31, 2014.

Other comprehensive (loss)

The following table sets forth the components of the Company's comprehensive (loss) adjustments for pension and other post-employment benefits for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015								2014
	Gross		Taxes			Net			Gross			Taxes			Net
	(in millions)
Net (loss)						$	(59	)							$	(82	)
Adjustments for pension and other post-employment benefits:
Accumulated actuarial gains (losses) of benefit plans	$	2	$	(1	)	1			$	16		$	(6	)	10
Reclassifications included in net (loss):
Amortization of actuarial losses	1		—			1			—			—			—
Settlement losses	1		—			1			—			—			—
Settlement of plan amendments	—		—			—			(13		)	5			(8		)
Total reclassifications included in net (loss)	2		—			2			(13		)	5			(8		)
Adjustments for pension and other post-employment benefits	$	4	$	(1	)	3			$	3		$	(1	)	2
Total comprehensive (loss)						$	(56	)							$	(80	)

The following table sets forth the balance of the Company's accumulated other comprehensive (loss). All balances in accumulated other comprehensive (loss) are related to pension benefits.

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	Gross			Taxes			Net
	(in millions)
Accumulated other comprehensive (loss) - December 31, 2014	$	(82	)	$	(3	)	$	(85	)
Adjustments for pension benefits	4			(1		)	3
Accumulated other comprehensive (loss) - March 31, 2015	$	(78	)	$	(4	)	$	(82	)

Balance Sheet

Accounts payable and accrued liabilities

The following table sets forth additional financial information related to the Company's accounts payable and accrued liabilities at March 31, 2015 and December 31, 2014.

	At March 31, 2015		At December 31, 2014
	(in millions)
Accounts payable	$	14	$	14
Accrued salaries and wages	36		48
Accrued severance	16		39
Accrued taxes	17		16
Accrued expenses	29		31
Customer refunds, advance payments and other	20		19
Total accounts payable and accrued liabilities	$	132	$	167

Fair Value of Financial Instruments

The Company's financial assets or liabilities required to be measured at fair value on a recurring basis include cash and cash equivalents held in money market funds of $41 million as of March 31, 2015 and December 31, 2014. These money market funds have been recorded at fair value using Level 2 inputs.  The Company also had $7 million and $8 million held in certificates of deposit and mutual funds as of March 31, 2015 and December 31, 2014, respectively, that serve as collateral against letters of credit held primarily with our insurance carriers.  These certificates of deposit and mutual funds are classified as prepaid expenses and other on the Company's consolidated balance sheets and are valued using Level 2 inputs. The fair value of accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. The fair values of debt instruments are determined based on the observable market data of a private exchange.

The following table sets forth the carrying amount and fair value using Level 2 inputs of the Company’s debt obligations at March 31, 2015 and December 31, 2014.

	At March 31, 2015				At December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Senior secured credit facilities
SuperMedia Inc.	$	852	$	855	$	841	$	829
R.H. Donnelly Inc.	605		452		612		435
Dex Media East, Inc.	343		276		354		281
Dex Media West, Inc.	321		274		337		293
Senior subordinated notes	261		115		252		112
Total debt obligations	$	2,382	$	1,972	$	2,396	$	1,950

9

The par value of SuperMedia's debt obligation at March 31, 2015 was $1,035 million. The par value of Dex Media West, Inc. ("DMW") debt obligations at March 31, 2015 was $326 million.

For additional information on our outstanding debt obligations, see Note 7 - Long-Term Debt.

Note 6

Intangible Assets

The following table sets forth the details of the Company's intangible assets at March 31, 2015 and December 31, 2014.

	At March 31, 2015						At December 31, 2014
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in millions)
Directory services agreements	$	666	$	342	$	324	$	666	$	307	$	359
Client relationships	924		693		231		924		649		275
Trademarks and domain names	222		102		120		222		91		131
Patented technologies	42		19		23		42		16		26
Advertising commitment	11		8		3		11		8		3
Total intangible assets	$	1,865	$	1,164	$	701	$	1,865	$	1,071	$	794

Amortization expense for intangible assets was $93 million and $147 million for the three months ended March 31, 2015 and 2014, respectively.

The annual amortization expense for intangible assets is estimated to be $373 million in 2015, $237 million in 2016, $103 million in 2017 and $81 million in 2018.

Note 7

Long-Term Debt

The following table sets forth the Company's outstanding debt obligations on the consolidated balance sheets at March 31, 2015 and December 31, 2014.

		Interest Rates				Carrying Value
	Maturity	At March 31, 2015		At December 31, 2014		At March 31, 2015		At December 31, 2014
						(in millions)
Senior secured credit facilities
SuperMedia Inc.	December 31, 2016	11.6	%	11.6	%	$	852	$	841
R.H. Donnelly Inc.	December 31, 2016	9.75	%	9.75	%	605		612
Dex Media East, Inc.	December 31, 2016	6.0	%	6.0	%	343		354
Dex Media West, Inc.	December 31, 2016	8.0	%	8.0	%	321		337
Senior subordinated notes	January 29, 2017	14.0	%	14.0	%	261		252
Total debt						2,382		2,396
Less: current maturities of long-term debt						132		124
Long-term debt						$	2,250	$	2,272

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As a result of the merger and adoption of acquisition accounting on April 30, 2013, SuperMedia's debt obligation was recorded at its fair value of $1,082 million, from its face value of $1,442 million, resulting in a discount of $360 million. This debt fair value adjustment is being amortized as an increase to interest expense over the remaining term of the SuperMedia debt obligation using the effective interest method and does not impact future interest or principal payments. Amortization of the SuperMedia debt fair value adjustment of $20 million and $17 million was included in interest expense during the three months ended March 31, 2015 and 2014, respectively. The unamortized portion of the SuperMedia discount as of March 31, 2015 was $183 million. The par value of SuperMedia's debt obligation at March 31, 2015 was $1,035 million.

Effective March 10, 2015, the Company obtained an amendment to the DMW senior secured credit facility to permit the exclusion of one-time, nonrecurring cash expenditures associated with our business transformation program from the definition of earnings before interest, taxes, depreciation and amortization ("EBITDA") that is used for the leverage ratio covenant measure. An amendment fee of $5 million was paid and recorded as a discount on the DMW senior secured credit facility. The debt discount is being amortized as an increase to interest expense over the remaining term of the DMW debt obligation using the effective interest method and does not impact future interest or principal payments. The unamortized portion of the DMW debt discount at March 31, 2015 was $5 million. The par value of DMW's debt obligations at March 31, 2015 was $326 million.

Debt Issuance Costs

Certain costs associated with the issuance of our senior secured credit facilities were capitalized and are included in other non-current assets on the Company's consolidated balance sheet. At March 31, 2015, the Company has deferred debt issuance costs of $3 million on its consolidated balance sheet. These costs are amortized to interest expense over the remaining term of the related senior secured credit facilities using the effective interest method.

Senior Secured Credit Facilities

In connection with the consummation of the Prepackaged Plans and the merger between Dex One and SuperMedia on April 30, 2013, Dex Media entered into an amended and restated loan agreement for SuperMedia and three amended and restated credit agreements for each of Dex Media East, Inc. ("DME"), DMW and R.H. Donnelley Inc. ("RHD") (collectively, the "senior secured credit facilities"), with named financial institutions and JPMorgan Chase Bank, N.A. as administrative agent and collateral agent under the SuperMedia, DME and DMW senior secured credit facilities, and Deutsche Bank Trust Company Americas as administrative agent and collateral agent under the RHD senior secured credit facility.

SuperMedia Senior Secured Credit Facility

The SuperMedia senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing, at SuperMedia's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted London Inter-Bank Offered Rate ("LIBOR") plus 1.00%, plus an interest rate margin of 7.60%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 8.60%. SuperMedia may elect interest periods of one, two or three months for Eurodollar borrowings.

RHD Senior Secured Credit Facility

The RHD senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at RHD's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted LIBOR plus 1.00%, plus an interest rate margin of 5.75%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 6.75%. RHD may elect interest periods of one, two, three or six months for Eurodollar borrowings.

DME Senior Secured Credit Facility

The DME senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to

11

any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at DME's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted LIBOR plus 1.00%, plus an interest rate margin of 2.00%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 3.00%. DME may elect interest periods of one, two, three or six months for Eurodollar borrowings.

DMW Senior Secured Credit Facility

The DMW senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at DMW's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate, plus 0.50%, or (3) adjusted LIBOR, plus 1.00%, plus an interest rate margin of 4.00%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 5.00%. DMW may elect interest periods of one, two, three or six months for Eurodollar borrowings.

Senior Subordinated Notes

The Company's senior subordinated notes require interest payments, payable semi-annually on March 31 and September 30 of each year. The senior subordinated notes accrue interest at 12% for cash interest payments and 14% for payments-in-kind ("PIK") interest. PIK interest represents additional indebtedness and increases the aggregate principal amount owed. The Company is required to make interest payments of 50% in cash and 50% in PIK interest until maturity of the senior secured credit facilities on December 31, 2016. For the semi-annual interest period ended March 31, 2015, the Company made interest payments of 50% in cash and 50% in PIK interest resulting in the issuance of an additional $9 million of senior subordinated notes. The Company is restricted from making open market repurchases of its senior subordinated notes until maturity of the senior secured credit facilities on December 31, 2016. The senior subordinated notes mature on January 29, 2017.

Principal Payment Terms for Senior Secured Credit Facilities

The Company has mandatory debt principal payments due after each quarter prior to the December 31, 2016 maturity date on its outstanding senior secured credit facilities. RHD, DME and DMW are required to pay scheduled amortization payments, plus additional prepayments at par equal to each borrower's respective Excess Cash Flow ("ECF"), multiplied by the applicable ECF Sweep Percentage as defined in the respective senior secured credit facility (60% for RHD, 50% for DMW, and 70% in 2013 and 2014 and 60% in 2015 and 2016 for DME). SuperMedia is required to make prepayments at par in an amount equal to 67.5% of any increase in Available Cash, as defined in its senior secured credit facility. 

In addition to these principal payments, the Company may on one or more occasions use another portion of ECF or the increase in Available Cash, as applicable, to repurchase debt at market prices ("Voluntary Prepayments") at a discount of face value, as defined in the respective senior secured credit facility (12.5% for SuperMedia, 20% for RHD, 30% for DMW, and 15% in 2013 and 2014 and 20% in 2015 and 2016 for DME) as determined following the end of each quarter. These Voluntary Prepayments must be made within 180 days after the date on which financial statements are delivered to the administrative agents. If a borrower does not make such Voluntary Prepayments within the 180-day period, the Company must make a prepayment at par at the end of the quarter during which such 180-day period expires.  

Any remaining portion of ECF or Available Cash, may be used at the Company's discretion, subject to certain restrictions specified in each senior secured credit facility agreement.

2015 and 2014 Principal Payments

During the three months ended March 31, 2015, the Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $38 million. Accelerated principal payments consist of prepayments of cash flow sweeps required under our senior secured credit facilities. These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $9 million, on the Company's senior subordinated notes.

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During the three months ended March 31, 2014, the Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $74 million. These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $8 million, on the Company's senior subordinated notes.

On March 30, 2015, DMW commenced an offer to repurchase bank debt below par. On April 8, 2015, DMW repurchased and retired debt of $8 million utilizing cash of $7 million.

Debt Covenants

Each of the senior secured credit facilities described above contain certain covenants that, subject to exceptions, limit or restrict each borrower's incurrence of liens, investments (including acquisitions), sales of assets, indebtedness, payment of dividends, distributions and payments of certain indebtedness, sale and leaseback transactions, swap transactions, affiliate transactions, capital expenditures and mergers, liquidations and consolidations. For each senior secured credit facility, we are required to maintain compliance with a consolidated leverage ratio covenant and a consolidated interest coverage ratio covenant (the “Financial Covenants”). Each of the senior secured credit facilities also contain certain covenants that, subject to exceptions, limit or restrict Dex Media's incurrence of liens, indebtedness, ownership of assets, sales of assets, payment of dividends or distributions or modifications of the senior subordinated notes.

The senior subordinated notes contain certain covenants that, subject to certain exceptions, among other things, limit or restrict the Company's (and, in certain cases, the Company's restricted subsidiaries) incurrence of indebtedness, making of certain restricted payments, incurrence of liens, entry into transactions with affiliates, conduct of its business, mergers, and consolidation or sale of all or substantially all of its property.

As of March 31, 2015, the Company was in compliance with all of the Financial Covenants associated with its senior secured credit facilities and senior subordinated notes.

The Company evaluated compliance with its Financial Covenants for 2015 based on management’s most recent forecast and management believes that the Company will meet each of its Financial Covenant requirements in 2015.

For 2016, the Company believes it will meet all covenant requirements in its senior secured credit facilities and senior subordinated notes; however, the senior secured credit facilities mature on December 31, 2016 and the senior subordinated notes mature on January 29, 2017. Because the Company lacks the cash flow from operations to fully pay the senior secured credit facilities and senior subordinated notes at maturity, the Company will have to seek a restructuring, amendment or refinancing of its debt, or if necessary, pursue additional debt or equity offerings, in advance of the debt becoming due. The Company’s ability to restructure, amend or refinance its debt, or to issue additional debt or equity, will depend upon, among other things: (1) the condition of the capital markets at the time, which is beyond the Company’s control; (2) the Company’s future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory and other factors, many of which are beyond the Company’s control; and (3) the Company’s continued compliance with the terms and covenants in its senior secured credit facilities and senior subordinated notes that govern its debt.

Guarantees

Each of the senior secured credit facilities are separate facilities secured by the assets of each respective entity. There are no cross guarantees or collateralization provision among the entities, subject to certain exceptions. The Shared Guarantee and Collateral agreement has certain guarantee and collaterization provisions supporting SuperMedia, RHD, DME and DMW. However, an event of default by one of the entities could trigger a call on the applicable guarantor. An event of default by a guarantor on a guarantee obligation could be an event of default under the applicable credit facility, and if demand is made under the guarantee and the creditor accelerates the indebtedness, failure to satisfy such claims in full would in turn trigger a default under all of the other credit facilities. A subordinated guarantee also provides that SuperMedia, RHD, DME and DMW guarantee the obligations of the other such entities, including SuperMedia, provided that no claim may be made on such guarantee until the senior secured debt of such entity is satisfied and discharged.

Note 8

Employee Benefits

Pension

The Company has non-contributory defined benefit pension plans that provide pension benefits to certain of its employees. The accounting for pension benefits reflects the recognition of these benefit costs over the employee’s approximate service period based on the terms of the plan and the investment and funding decisions made. The determination of the benefit obligation and the net periodic pension cost requires management to make actuarial assumptions, including the discount rate and expected return on plan assets. For these assumptions, management consults with actuaries, monitors plan provisions and demographics, and reviews public market data and general economic information. Changes in these assumptions can have a significant impact on the projected benefit obligation, funding requirement and net periodic benefit cost.

The pension plans include the Dex One Retirement Account, the Dex Media, Inc. Pension Plan, the SuperMedia Pension Plan for Management Employees and the SuperMedia Pension Plan for Collectively Bargained Employees. The Company also maintains two non-qualified pension plans for certain executives, the Dex One Pension Benefit Equalization Plan and the SuperMedia Excess Pension Plan. Pension assets related to the Company's qualified pension plans, which are held in master trusts and recorded on the Company's consolidated balance sheet, are valued in accordance with applicable accounting guidance on fair value measurements. No employees accrue future pension benefits under any of the pension plans.

Net Periodic Cost (Income)

The following table sets forth the net periodic cost (income) related to the Company's pension plans for the three months ended March 31, 2015 and 2014.

	Pension
	Three Months Ended March 31,
	2015			2014
	(in millions)
Interest cost	$	7		$	7
Expected return on plan assets	(8		)	(9		)
Amortization of net loss	1			—
Settlement losses	1			—
Net periodic cost (income)	$	1		$	(2	)

For the three months ended March 31, 2015, the Company recorded pension settlement losses of $1 million related to employees that received lump-sum distributions. These charges were recorded in accordance with applicable accounting guidance for settlements associated with defined benefit pension plans, which requires that settlement gains and losses be recorded once prescribed payment thresholds have been reached.

The Company made cash contributions to its qualified pension plans of $1 million during both the three months ended March 31, 2015 and 2014. We expect to make total contributions of approximately $4 million to our qualified pension plans in 2015.

Other Post-Employment Benefits

During the three months ended March 31, 2014, the Company recorded a $13 million credit to general and administrative expense in its consolidated statement of comprehensive (loss) associated with the settlement of plan amendments to its other post-employment benefits, which eliminated the Company’s obligation to provide a subsidy for retiree health care.

Savings Plans Benefits

The Company sponsors defined contribution savings plans to provide opportunities for eligible employees to save for retirement. The savings plans include the Dex Media, Inc. Savings Plan and the Dex One Restoration Plan. Substantially all of the Company's employees are eligible to participate in the plans. Participant contributions may be made on a pre-tax, after-tax, or Roth basis. Under the plans, a certain percentage of eligible employee contributions are matched with Company cash contributions that are allocated to the participants' current investment elections. The Company recognizes its contributions as savings plan expense based on its matching obligation to participating employees. The Company recorded total savings plan expense of $4 million for both the three months ended March 31, 2015 and 2014.

Note 9

Long-Term Incentive Compensation

The Dex Media, Inc. Equity Incentive Plan, the Dex Media, Inc. Amended and Restated Long-Term Plan, the Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan and the Value Creation Program provide the opportunity to earn long term incentive compensation for non-management directors, designated eligible employees and other service providers, as applicable.

Stock-Based Compensation

The Dex Media, Inc. Equity Incentive Plan and the Dex Media, Inc. Amended and Restated Long-Term Incentive Plan

("Stock-Based Plans") provide for several forms of incentive awards to be granted to designated eligible employees, non-management directors, consultants and independent contractors providing services to the Company. The maximum number of shares of Dex Media common stock authorized for issuance under the Stock-Based Plans is 1,264,911. During 2015 and 2014, the Company granted equity awards under the Stock-Based Plans.

Restricted Stock

The Stock-Based Plans provide for grants of restricted stock.  These awards are classified as equity awards based on the criteria established by the applicable accounting rules for stock-based compensation. The fair value of the restricted stock awards was determined based on the price of Dex Media common stock on the date of grant.

No restricted stock awards have been granted during 2015. During 2014 and 2013, certain employees were granted restricted stock awards that cliff vest on December 31, 2015 and 2016, as applicable.  Grant award recipients would receive all regular cash dividends if the Company were to declare dividends.

All unvested shares of restricted stock will be forfeited upon the employee's termination of employment with the Company on or before the vesting dates, except that the Compensation and Benefits Committee of the Board of Directors, at its sole option and election, may permit the accelerated vesting of an award. In the event of the employee's termination of service by the Company without cause or by the employee for good reason within six months prior to or two years following a change in control, any unvested restricted stock will become fully vested on the date of such termination or the date of the change in control, if such termination occurs within six months prior to such change in control.

Changes in the Company's outstanding restricted stock awards were as follows for the three months ended March 31, 2015.

	Restricted  Stock Awards		Weighted-Average Grant Date Fair Value
Outstanding restricted stock awards at January 1, 2015	213,246		$	10.01
Granted	—		$	—
Vested	(7,491	)	$	10.59
Forfeitures	(4,295	)	$	10.28
Outstanding restricted stock awards at March 31, 2015	201,460		$	10.00

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Stock Options

The Stock-Based Plans provide for grants of stock options. These awards are classified as equity awards based on the criteria established by the applicable accounting rules for stock-based compensation.

During 2015, the Company granted stock option awards that vest on December 31, 2017 and have a 10 year term from the date of grant.

In connection with Mr. Walsh’s appointment as President and Chief Executive Officer, on October 14, 2014, the Company granted Mr. Walsh stock options to purchase 271,000 shares of Dex Media common stock at an exercise price of $7.54, which vest on December 31, 2017. The stock options were granted on a stand-alone basis, outside the Stock-Based Plans, as inducements to employment.

During 2014 and 2013 certain employees were granted stock option awards that vest over four years in equal annual installments beginning on March 31 following the grant date and have a 10 year term from the date of grant. Other stock option awards granted in 2014 vest on December 31, 2017. The stock option awards granted on January 2, 2014 were priced at a premium, with an exercise price of $10.25 per share, while all other stock option awards had an exercise price equal to the market price of the Company's common stock on the date of grant.

A stock option holder may pay the option exercise price in cash, by delivering unrestricted shares to the Company having a value at the time of exercise equal to the exercise price, by a cashless broker-assisted exercise, by a combination of these methods or by any other method approved by the Compensation and Benefits Committee of the Company's Board of Directors. Stock option awards may not be re-priced without the approval of the Company's shareholders.

Any unvested portion of the stock option award will be forfeited upon the employee’s termination of employment with the Company for any reason before the date the option vests, except that the Compensation and Benefits Committee of the Company, at its sole option and election, may provide for the accelerated vesting of the stock option award. If the Company terminates the employee without cause or the employee resigns for good reason, then the employee is eligible to exercise the stock options that vested on or before the effective date of such termination or resignation. If the Company terminates the employee for cause, then the employee's stock options, whether or not vested, shall terminate immediately upon termination of employment. In the event the employee is terminated by the Company without cause or the employee resigns for good reason within six months prior to or two years following a change in control, any unvested portion of such employee's stock options shall become fully vested on the date of such termination or the date of the change in control, if such termination occurs within six months prior to such change in control.

The fair value of each stock option award is estimated on the grant date using the Black-Scholes option pricing model. The model incorporates assumptions regarding inputs as follows:

• Expected volatility is a blend of the implied volatility of Dex Media common stock as of the grant date, the historical volatility of Dex Media common stock over its history, and the historical volatility of Dex Media's peer companies;

• Expected life is calculated based on the average life of the vesting term and the contractual life of each award; and

• The risk-free interest rate is determined using the U.S. Treasury zero-coupon issue with a remaining term equal to the expected life of the option. 

Weighted average stock option fair values and assumptions for the three months ended March 31, 2015 are disclosed in the following table.

	Three Months Ended
	March 31, 2015
Weighted average fair value	$	4.50
Dividend yield	—
Volatility	55.35		%
Risk-free interest rate	1.67		%
Expected life (in years)	6.49

14

Changes in the Company's outstanding stock option awards were as follows for the three months ended March 31, 2015.

	Number of Stock Option Awards		Weighted- Average Exercise Price			Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding stock option awards at January 1, 2015	909,799		$		9.17	9.31	$	408,757
Granted	30,972		$	8.25		10.00	—
Exercises	—		$		—	—	—
Forfeitures/expirations	(1,000	)	$	6.30		7.00	—
Outstanding stock option awards at March 31, 2015	939,771		$		9.14	9.08	$	—

Stock-Based Compensation Expense

The following table sets forth stock-based compensation expense recognized for the three months ended March 31, 2015 and 2014. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive (loss).

	Three Months Ended March 31,
	2015		2014
	(in millions)
Stock-based compensation expense	$	1	$	1

As of March 31, 2015, unrecognized stock-based compensation expense related to the unvested portion of the Company's restricted stock and stock option awards was approximately $3 million, and is expected to be recognized over a weighted-average period of approximately 2.2 years.

Cash Long-Term Incentive Plan

The Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan provided to designated eligible employees the opportunity to earn an incentive cash payment based upon the achievement of the performance goals established for each of the measurement periods, with each of the respective fiscal years representing one measurement period. Following the introduction of the Value Creation Program in the fourth quarter of 2014, the Company did not grant any awards under this plan for the 2015 measurement period. These awards are classified as liability awards based on the criteria established by the applicable accounting rules. During the three months ended March 31, 2014 the Company recorded $2 million related to the Cash Long-Term Incentive Plan.

Value Creation Programs

Effective October 14, 2014, the Company adopted the Value Creation Program (“VCP”). The VCP enables the Company to retain and award designated executive employees by providing an opportunity to receive long-term compensation based on the net value creation in the Company. The bonus pool under the VCP represents 7% of the total “Value Creation” under the program and is comprised of 700,000 award units. To the extent not all of the units are awarded by the end of the performance period, the unallocated units will be allocated to the participating executives in proportion to the number of units awarded each executive. As of March 31, 2015, participating executives had been granted 645,000 units.

During 2015, the Company implemented the Value Creation Program Two ("VCP2"), to provide certain other employees with an opportunity to receive long-term compensation based on the same net value creation in the Company as defined in the VCP. As of March 31, 2015, participating employees had been granted 34,390 units. Each unit under the VCP2 is equivalent in value to a unit under the VCP. Under the VCP2, additional units can be awarded in future periods.

Value creation is measured as the net change over the performance period commencing October 14, 2014 and ending December 31, 2017 in the fair market value of the Company’s total invested capital, including equity securities, debt securities, and bank debt; plus cash dividends and cash payments (interest and principal) to debt, but reduced by any net value contributed from external sources, in each case as determined in the manner provided by the VCP. The VCP specifies that the fair market value

15

of total invested capital at the beginning of the performance period (October 14, 2014) and the end of the performance period (December 31, 2017) is to be determined based on the average trading prices of equity securities, debt securities, and bank debt for the 20 days preceding each date. The fair market value of total invested capital at the beginning of the performance period was $2,290 million.

The fair value of the awards was estimated using a Monte Carlo simulation. A Monte Carlo simulation is a type of option pricing model. The assumptions used in the Monte Carlo simulation, when estimating the fair value of the awards, are summarized below. The expected volatility is based on the historical volatility of the Company's total invested capital over the period since the merger of the Company's predecessor companies, Dex One and SuperMedia.

	At October 14, 2014			At March 31, 2015
	($ in millions)
Value creation programs fair value	$	12		$	13
Expected volatility	11.93		%	11.42		%
Remaining contractual term	3.21 years			2.75 years
Expected dividend yield	0.00		%	0.00		%
Risk free rate	0.87		%	0.81		%

The fair value of the awards will be estimated each reporting period. The Company recognizes the fair value of the awards as compensation expense ratably over the remaining performance period. During the three months ended March 31, 2015, the Company recorded $1 million of compensation expense related to these awards. As of March 31, 2015, the aggregate unamortized compensation expense was $11 million, which will be recognized over the remaining 2.75 years of the performance measurement period.

Note 10

Income Taxes

Income taxes have been provided for in the accompanying consolidated financial statements on the basis of an estimated annual effective tax rate, adjusted for the items considered discrete for the periods presented.

The Company recorded income taxes based on an estimated annual effective tax rate, including the impact of discrete tax items, of approximately (2.2)% and 0.3% for 2015 and 2014, respectively. The 2015 estimated annual effective tax rate, inclusive of recorded discrete tax items, differs from the statutory rate primarily due to the increase in the recorded valuation allowances and permanently disallowed expenses (such as non-deductible interest), partially offset by state taxes. Excluding the impact of these items, our estimated annual effective tax rate, inclusive of discrete items, would approximate 35% for 2015. The estimated annual effective tax rate used for the three months ended March 31, 2014, inclusive of recorded discrete tax items, differs from the statutory rate primarily due to increases in the recorded valuation allowances.

Our estimated annual effective tax rate for 2015 may be subject to change in future periods. During the remainder of 2015, we anticipate recording an additional benefit associated with the lapsing of uncertain tax positions due to expiration of the statute of limitations in certain jurisdictions. Considering this benefit, our anticipated annual effective tax rate, including the impact of discrete tax items, would be approximately (0.7)%.

The actual annual effective tax rate of (3.6)% for the year ended December 31, 2014 differed from the statutory rate primarily due to an increase in recorded valuation allowances, changes in estimates for state taxes, changes in state tax laws and apportionment, and the lapsing of various uncertain tax positions due to the expiration of the statute of limitations in federal and various state jurisdictions.

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Note 11

Contingencies

Litigation

The Company is subject to various lawsuits and other claims in the normal course of business. In addition, from time to time, the Company receives communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which the Company operates.

The Company establishes reserves for the estimated losses on specific contingent liabilities, for regulatory and legal actions where the Company deems a loss to be probable and the amount of the loss can be reasonably estimated. In other instances, the Company is not able to make a reasonable estimate of liability because of the uncertainties related to the outcome or the amount or range of potential loss. The Company does not expect that the ultimate resolution of pending regulatory and legal matters in future periods, including the matters described below will have a material adverse effect on its statements of comprehensive (loss).

On November 25, 2009, three retirees brought a putative class action lawsuit in the U.S. District Court for the Northern District of Texas, Dallas Division, against both the employee benefits committee and pension plans of Verizon and the employee benefits committee ("EBC") and pension plans of SuperMedia.  All three named plaintiffs are receiving the single life monthly annuity pension benefits. All complain that Verizon transferred them against their will from the Verizon pension plans to SuperMedia pension plans at or near the SuperMedia's spin-off from Verizon.  The complaint alleges that both the Verizon and SuperMedia defendants failed to provide requested plan documents, which would entitle the plaintiffs to statutory penalties under the Employee Retirement Income Securities Act ("ERISA"); that both the Verizon and SuperMedia defendants breached their fiduciary duty for refusal to disclose pension plan information; and other class action counts aimed solely at the Verizon defendants. The plaintiffs seek class action status, statutory penalties, damages and a reversal of the employee transfers.  The SuperMedia defendants filed their motion to dismiss the entire complaint on March 10, 2010. On October 18, 2010, the court ruled on the pending motion dismissing all the claims against the SuperMedia pension plans and all of the claims against SuperMedia's EBC relating to the production of documents and statutory penalties for failure to produce same. The only claims that remained against SuperMedia were procedural ERISA claims against SuperMedia's EBC. On November 1, 2010, SuperMedia's EBC filed its answer to the complaint. On November 4, 2010, SuperMedia's EBC filed a motion to dismiss one of the two remaining procedural ERISA claims against the EBC. Pursuant to an agreed order, the plaintiffs obtained class certification against the Verizon defendants. After obtaining permission from the court, the plaintiffs filed another amendment to the complaint, alleging a new count against SuperMedia's EBC. SuperMedia's EBC filed another motion to dismiss the amended complaint and filed a summary judgment motion before the deadline set by the scheduling order. On March 26, 2012, the court denied SuperMedia's EBC's motion to dismiss. On September 16, 2013, the court granted the defendants’ summary judgments, denied the plaintiffs’ summary judgment, and entered a take nothing judgment in favor of the SuperMedia EBC. Plaintiffs filed an appeal to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held on September 4, 2014. On October 14, 2014, the Court of Appeals affirmed the decision of the trial court. Plaintiffs filed a petition for a writ of certiorari to the U.S. Supreme Court on February 17, 2015. The Company plans to honor its indemnification obligations and vigorously defend the lawsuit on the defendants' behalf.

On December 10, 2009, a former employee with a history of litigation against SuperMedia, filed a putative class action lawsuit in the U.S. District Court for the Northern District of Texas, Dallas Division, against certain of SuperMedia's current and former officers, directors and members of SuperMedia's EBC. The complaint attempts to recover alleged losses to the various savings plans that were allegedly caused by the breach of fiduciary duties in violation of ERISA by the defendants in administrating the plans from November 17, 2006 to March 31, 2009. The complaint alleges that: (i) the defendants wrongfully allowed all the plans to invest in Idearc common stock, (ii) the defendants made material misrepresentations regarding SuperMedia's financial performance and condition, (iii) the defendants had divided loyalties, (iv) the defendants mismanaged the plan assets, and (v) certain defendants breached their duty to monitor and inform the EBC of required disclosures. The plaintiffs are seeking unspecified compensatory damages and reimbursement for litigation expenses. At this time, a class has not been certified. The plaintiffs filed a consolidated complaint. SuperMedia filed a motion to dismiss the entire complaint on June 22, 2010. On March 16, 2011, the court granted the SuperMedia defendants' motion to dismiss the entire complaint; however, the plaintiffs have repleaded their complaint. SuperMedia's defendants filed another motion to dismiss the new complaint. On March 15, 2012, the court granted the SuperMedia defendants' second motion dismissing the case with prejudice. The plaintiffs appealed the dismissal. On July 9, 2013, the U.S. Court of Appeals for the Fifth Circuit issued a decision affirming the dismissal of the trial court. On July 23, 2013, plaintiffs filed a petition to the Court of Appeals for a rehearing en banc which was denied. The

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plaintiffs filed a petition for a writ of certiorari to the United States Supreme Court. After the Supreme Court’s decision in Fifth Third Bancorp v. Dudenhoeffer, the court granted plaintiffs’ writ, vacated the Court of Appeals opinion and remanded the case to the Court of Appeals to rule in conformity with the Fifth Third opinion. Subsequently, the case was remanded to the trial court. On February 17, 2015, the plaintiffs filed an amended complaint. On April 1, 2015, SuperMedia filed a motion to dismiss the amended complaint. The Company plans to honor its indemnification obligations and vigorously defend the lawsuit on the defendants' behalf.

On March 29, 2013, a former unsecured note holder that was impacted by the bankruptcy of SuperMedia, in 2009, filed a notice and summons against Verizon Communications and the former chief financial officer ("CFO") of SuperMedia in the Supreme Court of the State of New York, New York County. The filing alleges that Verizon improperly formed SuperMedia prior to the spin-off by not having the requisite number of directors under Delaware law. The plaintiff alleges that since SuperMedia was improperly formed, the former CFO did not have the authority to execute the note on behalf of SuperMedia and accordingly both Verizon and the former CFO are liable for the unpaid principal and interest when the notes were impacted by the bankruptcy. The Company plans to honor its indemnification obligation and vigorously defend the lawsuit on the defendant's behalf.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations, our expectations regarding the future performance of our business, and the other non-historical statements in the discussion and analysis are forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors including those described in "Part I - Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2014. Our actual results may differ materially from those contained in any forward-looking statements. You should read the following discussion together with our financial statements and related notes thereto included in this report.

Our operating results for any quarter may not be indicative of our operating results in any future period.

Overview

Dex Media, Inc. ("Dex Media", "we", "us", "our", or the "Company") is a leading provider of local marketing solutions to more than 475,000 business clients across the United States. Our approximately 1,700 sales employees work directly with our clients to provide multiple local marketing solutions to drive customer leads to our clients and help our clients connect with their customers.

Our local marketing solutions are primarily sold under various "Dex" and "Super" brands, including print yellow page directories, online local search engine websites, mobile local search applications, and placement of our client's information and advertisements on major search engine websites, with which we are affiliated. Our local marketing solutions also include website development, search engine optimization, market analysis, video development and promotion, reputation management, social media marketing, and tracking/reporting of customer leads.

Our print yellow page directories are co-branded with various local telephone service providers, including Verizon Communications Inc. ("Verizon"), AT&T Inc., CenturyLink, Inc., FairPoint Communications, Inc., and Frontier Communications Corporation. We operate as the authorized publisher of print yellow page directories in some of the markets where they provide telephone service, and we hold multiple agreements governing our relationship with each company, including publishing agreements, branding agreements, and non-competition agreements.

Basis of Presentation

The Company prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States. Pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"), the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring items and accruals, necessary to fairly present the financial position, results of operations and cash flows of Dex Media and its subsidiaries. All inter-company transactions have been eliminated. The Company is managed as a single business segment. These unaudited interim financial statements, prepared in accordance with GAAP, do not contain all information and footnote disclosures normally included in audited annual financial statements and, as such, should be read in conjunction with the Dex Media Annual Report on Form 10-K for the year ended December 31, 2014. Our operating results for any quarter may not be indicative of our operating results in any future period.

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The preparation of these financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.

Certain prior period amounts on our consolidated financial statements have been reclassified to conform to current year presentation.

Merger

Dex Media was created as a result of the merger between Dex One Corporation (“Dex One”) and SuperMedia Inc. (“SuperMedia”) on April 30, 2013. The merger was completed pursuant to the Amended and Restated Agreement and Plan of Merger dated as of December 5, 2012 (the "Merger Agreement"), which provided, among other things, that if either Dex One or SuperMedia were unable to obtain the requisite consents to the merger from their respective stockholders and to the contemplated amendments to their respective financing agreements from their senior secured lenders to consummate the transactions on an out-of-court basis, the merger could be effected through voluntary pre-packaged plans of reorganization ("the Prepackaged Plans") under Chapter 11 of Title 11 of the United States Code ("Chapter 11"). Because neither Dex One nor SuperMedia were able to obtain the requisite consents to complete the merger out of court, each of Dex One and SuperMedia and all of their domestic subsidiaries voluntarily filed pre-packaged bankruptcy petitions under Chapter 11 on March 18, 2013, in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). On April 29, 2013, the Bankruptcy Court entered separate orders confirming each of the Prepackaged Plans. On April 30, 2013, Dex One and SuperMedia consummated the merger and other transactions contemplated by the Merger Agreement and emerged from Chapter 11 protection. Effective with the emergence from bankruptcy and the consummation of the merger, each share of Dex One common stock was converted into 0.2 shares of common stock of Dex Media and each share of SuperMedia common stock was converted into 0.4386 shares of common stock of Dex Media.

We accounted for the business combination using the acquisition method of accounting in accordance with ASC 805, "Business Combinations",with Dex One identified as the acquiring entity for accounting purposes. Dex One was considered the acquiring entity for accounting purposes based on certain criteria including, but not limited to, the fact that (1) upon consummation of the merger, Dex One shareholders held approximately 60% of the common stock of Dex Media as compared to approximately 40% held by SuperMedia shareholders and (2) Dex One's chairman of the board of directors continued as the chairman of the board of directors of Dex Media.

Revenue Trend

The Company has been experiencing declining revenue for a number of years driven by reduced advertiser spending in our print directories, due to continued competition from other advertising media (including the Internet, cable television, newspaper and radio). We expect this trend to continue. To mitigate the effect of declining revenue, we continue to actively manage expenses and streamline operations to reduce our cost structure.

Results of Operations

The financial information and the discussion below should be read in conjunction with the accompanying consolidated financial statements and notes thereto. Our operating results for any quarter may not be indicative of our operating results in any future period.

Prior to the merger with Dex One, SuperMedia had $386 million of deferred revenue and $122 million of deferred directory costs on its consolidated balance sheet. As a result of acquisition accounting, the fair value of deferred revenue at April 30, 2013 for SuperMedia was determined to have no value, equating to $386 million of revenue that would have been amortized by SuperMedia from May 2013 through April 2014, that was not recognized by Dex Media. SuperMedia had minimal, if any, remaining performance obligations related to its clients who have previously contracted for advertising, thus, no value was assigned to its deferred revenue. The fair value of deferred directory costs as of April 30, 2013 for SuperMedia was determined to have no value, other than paper held in inventory and prepayments associated with future publications. These costs did not have any future value since SuperMedia has already incurred the costs to produce the clients' advertising and did not anticipate to incur any significant additional costs associated with those published directories. This equated to $93 million of cost that would have been amortized by SuperMedia from May 2013 through April 2014, that was not recognized by Dex Media. As a result, our financial results for the three months ended March 31, 2014 excluded revenue of approximately $30 million and net

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income of approximately $14 million, which would have been recognized absent the effect of acquisition accounting. The exclusion of these results from the consolidated statements of comprehensive (loss) of Dex Media, did not impact our cash flows.

Three Months Ended March 31, 2015 Compared to Three Months Ended March 31, 2014

The following table sets forth our consolidated operating results for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015			2014			Change			% Change
	(in millions, except %)
Operating Revenue	$	406		$	456		$	(50	)	(11.0	)%
Operating Expenses
Selling	96			115			(19		)	(16.5	)%
Cost of service (exclusive of depreciation and amortization)	141			150			(9		)	(6.0	)%
General and administrative	37			23			14			60.9	%
Depreciation and amortization	106			161			(55		)	(34.2	)%
Total Operating Expenses	380			449			(69		)	(15.4	)%
Operating Income	26			7			19			NM
Interest expense, net	85			90			(5		)	(5.6	)%
(Loss) Before Provision (Benefit) for Income Taxes	(59		)	(83		)	24			(28.9	)%
Provision (benefit) for income taxes	—			(1		)	1			(100.0	)%
Net (Loss)	$	(59	)	$	(82	)	$	23		(28.0	)%

Operating Revenue

Operating revenue of $406 million for the three months ended March 31, 2015 decreased $50 million, or 11.0%, compared to $456 million for the three months ended March 31, 2014. The decrease in operating revenue was primarily due to reduced advertiser spending, reflecting continued competition from other advertising media (including Internet, cable television, newspaper and radio). Operating revenues related to SuperMedia's operations of $30 million for the three months ended March 31, 2014 were not included in our operating revenue as a result of acquisition accounting associated with our merger with SuperMedia effective April 30, 2013.

Operating Expense

Operating expense of $380 million for the three months ended March 31, 2015 decreased $69 million, or 15.4%, compared to $449 million for the three months ended March 31, 2014. The decrease in operating expenses was primarily due to lower amortization expense associated with intangible assets of $54 million, as well as additional operating expenses reductions and credits as described below. Operating expenses related to SuperMedia's operations of $9 million for the three months ended March 31, 2014 were not included in our operating expenses as a result of acquisition accounting associated with our merger with SuperMedia effective April 30, 2013.

Selling. Selling expense of $96 million for the three months ended March 31, 2015 decreased $19 million, or 16.5%, compared to $115 million for the three months ended March 31, 2014. The decrease in selling expense was primarily due to lower employee related costs and reduced travel expenses. Selling expenses related to SuperMedia's operations of $4 million related to sales commissions for the three months ended March 31, 2014 were not included in our operating expenses as a result of acquisition accounting associated with our merger with SuperMedia effective April 30, 2013.

Cost of Service. Cost of services expense of $141 million for the three months ended March 31, 2015 decreased $9 million, or 6.0%, compared to $150 million for the three months ended March 31, 2014. The decrease in cost of services expense was primarily due to lower printing and distribution costs as a result of lower volumes and reduced employee related costs. These decreases were offset by higher digital fulfillment costs. Cost of services expenses related to SuperMedia's operations of $4 million related to printing and distribution costs for the three months ended March 31, 2014 were not included in our operating expenses as a result of acquisition accounting associated with our merger with SuperMedia effective April 30, 2013.

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General and Administrative. General and administrative expense of $37 million for the three months ended March 31, 2015 increased $14 million, or 60.9%, compared to $23 million for the three months ended March 31, 2014. The increase in general and administrative expense was primarily driven by certain one-time credits to expense during the three months ended March 31, 2014. The Company recorded a $13 million credit to expense associated with plan amendments to its other post-employment benefits, which eliminated the Company's obligation to provide a subsidy for retiree health care, recorded a $10 million credit to expense associated with the settlement of a liability under a publishing agreement and recorded $5 million in credits to expense associated with the reduction of certain operating tax liabilities. We also incurred $9 million of business transformation costs during the three months ended March 31, 2015, while no business transformation costs were incurred during the three months ended March 31, 2014. These increases were partially offset by $18 million of merger integration costs incurred during the three months ended March 31, 2014, which included $10 million of severance costs, while no merger integration costs were incurred during the three months ended March 31, 2015. The Company also had lower employee related costs and lower bad debt expense. Bad debt expense of $5 million for the three months ended March 31, 2015 decreased by $1 million compared to $6 million for the three months ended March 31, 2014. Bad debt expense as a percent of total operating revenue was 1.2% for the three months ended March 31, 2015, compared to 1.3% for the three months ended March 31, 2014.

Depreciation and Amortization. Depreciation and amortization expense of $106 million for the three months ended March 31, 2015 decreased $55 million, or 34.2%, compared to $161 million for the three months ended March 31, 2014. This decrease was primarily due to lower amortization expense associated with intangible assets of $54 million. The Company amortizes its intangible assets using the income forecast method, which is an accelerated amortization method that assumes the remaining value of the intangible assets is greater in the earlier years and then steadily declines over time based on expected future cash flows. Additionally, the Company had lower amortization expense associated with capitalized software, partially offset by higher depreciation expense. The increased depreciation expense was due to the acceleration of depreciation expense associated with our plan to eliminate field sales offices.

Interest Expense, net

Interest expense, net of interest income, of $85 million for the three months ended March 31, 2015 decreased $5 million, or 5.6%, compared to $90 million for the three months ended March 31, 2014. The decrease in interest expense, net was primarily due to lower interest expense as a result of lower outstanding debt obligations. Our interest expense for the three months ended March 31, 2015 included $25 million of non-cash interest expense compared to $22 million for the three months ended March 31, 2014. Non-cash interest expense primarily represents amortization of debt fair value adjustments, amortization of debt discounts, payment-in-kind interest associated with our senior subordinated notes, and the amortization of deferred financing costs.

(Benefit) for Income Taxes

The Company provides for income taxes for United States federal and various state jurisdictions. Our provision includes current and deferred taxes for these jurisdictions, as well as the impact of uncertain tax benefits for the estimated tax positions taken on tax returns and the expected realization of deferred tax assets in the future. The Company recorded income taxes based on an estimated annual effective tax rate, including the impact of discrete tax items, of approximately (2.2)% and 0.3% for 2015 and 2014, respectively. The 2015 estimated annual effective tax rate, inclusive of recorded discrete tax items, differs from the statutory rate primarily due to the increase in the recorded valuation allowances and permanently disallowed expenses (such as non-deductible interest), partially offset by state taxes. Excluding the impact of these items, our estimated annual effective tax rate, inclusive of discrete items, would approximate 35% for 2015. The estimated annual effective tax rate used for the three months ended March 31, 2014, inclusive of recorded discrete tax items, differs from the statutory rate primarily due to increases in the recorded valuation allowances. The Company did not record any tax provision (benefit) for the three months ended March 31, 2015 and recorded a (benefit) for income taxes of $(1) million for the three months ended March 31, 2014. The difference in the estimated annual effective tax rate and the actual effective tax rate for the three months ended March 31, 2015 and 2014 of 0.0% and 1.2%, respectively, was primarily the impact of the recorded discrete items.

Our estimated annual effective tax rate for 2015 may be subject to change in future periods. During the remainder of 2015, we anticipate recording an additional benefit associated with the lapsing of uncertain tax positions due to expiration of the statute of limitations in certain jurisdictions. Considering this benefit, our anticipated annual effective tax rate, including the impact of discrete tax items, would be approximately (0.7)%.

The actual annual effective tax rate of (3.6)% for the year ended December 31, 2014 differed from the statutory rate primarily due to the increase in recorded valuation allowances, changes in estimates for state taxes, changes in state tax laws and

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apportionment, and the lapsing of various uncertain tax positions due to the expiration of the statute of limitations in federal and various state jurisdictions.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and Capital Resources

The following table sets forth a summary of cash flows for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015			2014			Change
	(in millions)
Cash Flows Provided By (Used In):
Operating activities	$	46		$	100		$	(54	)
Investing activities	(3		)	(3		)	—
Financing activities	(43		)	(74		)	31
Increase In Cash and Cash Equivalents	$	—		$	23		$	(23	)

Our primary source of funds continues to be cash generated from operations. Net cash provided by operating activities of $46 million for the three months ended March 31, 2015 decreased $54 million, compared to $100 million for the three months ended March 31, 2014. This decrease was primarily due to lower cash collections associated with lower billings to clients and cash payments related to business transformation costs of $28 million for the three months ended March 31, 2015, while no business transformation costs were paid during the three months ended March 31, 2014. These unfavorable operating activities were partially offset by reduced operating costs, payroll related expenditures and lower cash payments related to merger integration costs. No merger integration costs were paid during the three months ended March 31, 2015, whereas $16 million was paid during the three months ended March 31, 2014.

Net cash used in investing activities was $3 million for both the three months ended March 31, 2015 and 2014. Cash used in investing activities represents cash payments for capital expenditures, including capitalized software.

Net cash used in financing activities of $43 million for the three months ended March 31, 2015 decreased $31 million compared to $74 million for the three months ended March 31, 2014. Net cash used in financing activities for the three months ended March 31, 2015 and 2014 primarily represents the repayment of debt principal.

During the three months ended March 31, 2015, the Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $38 million. During the three months ended March 31, 2014, the Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $74 million. Accelerated principal payments consist of prepayments of cash flow sweeps required under our senior secured credit facilities.

During the three months ended March 31, 2015, the Company paid $5 million associated with an amendment fee related to the Dex Media West, Inc. ("DMW") senior secured credit facility.

We believe net cash provided by our operating activities and existing cash and cash equivalents will provide sufficient resources to meet our working capital requirements, estimated principal and interest debt service requirements and other cash needs for the remainder of 2015.

The Company's senior secured credit facilities mature in 2016, in light of which the Company continues to evaluate its capital structure, considers alternatives and discusses those alternatives with its financing sources, while also considering its strategic options.

Debt Obligations

Senior Secured Credit Facilities

In connection with the consummation of the Prepackaged Plans and the merger between Dex One and SuperMedia on April 30,

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2013, Dex Media entered into an amended and restated loan agreement for SuperMedia and three amended and restated credit agreements for each of Dex Media East, Inc. ("DME"), DMW and R.H. Donnelley Inc. ("RHD") (collectively, the "senior secured credit facilities"), with named financial institutions and JPMorgan Chase Bank, N.A. as administrative agent and collateral agent under the SuperMedia, DME and DMW senior secured credit facilities, and Deutsche Bank Trust Company Americas as administrative agent and collateral agent under the RHD senior secured credit facility.

SuperMedia Senior Secured Credit Facility

The SuperMedia senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing, at SuperMedia's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted London Inter-Bank Offered Rate ("LIBOR") plus 1.00%, plus an interest rate margin of 7.60%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 8.60%. SuperMedia may elect interest periods of one, two or three months for Eurodollar borrowings.

RHD Senior Secured Credit Facility

The RHD senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at RHD's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted LIBOR plus 1.00%, plus an interest rate margin of 5.75%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 6.75%. RHD may elect interest periods of one, two, three or six months for Eurodollar borrowings.

DME Senior Secured Credit Facility

The DME senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at DME's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted LIBOR plus 1.00%, plus an interest rate margin of 2.00%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 3.00%. DME may elect interest periods of one, two, three or six months for Eurodollar borrowings.

DMW Senior Secured Credit Facility

The DMW senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at DMW's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate, plus 0.50%, or (3) adjusted LIBOR, plus 1.00%, plus an interest rate margin of 4.00%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 5.00%. DMW may elect interest periods of one, two, three or six months for Eurodollar borrowings.

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Senior Subordinated Notes

The Company's senior subordinated notes require interest payments, payable semi-annually on March 31 and September 30 of each year. The senior subordinated notes accrue interest at 12% for cash interest payments and 14% for payments-in-kind ("PIK") interest. PIK interest represents additional indebtedness and increases the aggregate principal amount owed. The Company is required to make interest payments of 50% in cash and 50% in PIK interest until maturity of the senior secured credit facilities on December 31, 2016. For the semi-annual interest period ended March 31, 2015, the Company made interest payments of 50% in cash and 50% in PIK interest resulting in the issuance of an additional $9 million of senior subordinated notes. The Company is restricted from making open market repurchases of its senior subordinated notes until maturity of the senior secured credit facilities on December 31, 2016. The senior subordinated notes mature on January 29, 2017.

Principal Payment Terms for Senior Secured Credit Facilities

The Company has mandatory debt principal payments due after each quarter prior to the December 31, 2016 maturity date on its outstanding senior secured credit facilities. RHD, DME and DMW are required to pay scheduled amortization payments, plus additional prepayments at par equal to each borrower's respective Excess Cash Flow ("ECF"), multiplied by the applicable ECF Sweep Percentage as defined in the respective senior secured credit facility (60% for RHD, 50% for DMW, and 70% in 2013 and 2014 and 60% in 2015 and 2016 for DME). SuperMedia is required to make prepayments at par in an amount equal to 67.5% of any increase in Available Cash, as defined in its senior secured credit facility. 

In addition to these principal payments, the Company may on one or more occasions use another portion of ECF or the increase in Available Cash, as applicable, to repurchase debt at market prices ("Voluntary Prepayments") at a discount of face value, as defined in the respective senior secured credit facility (12.5% for SuperMedia, 20% for RHD, 30% for DMW, and 15% in 2013 and 2014 and 20% in 2015 and 2016 for DME) as determined following the end of each quarter. These Voluntary Prepayments must be made within 180 days after the date on which financial statements are delivered to the administrative agents. If a borrower does not make such Voluntary Prepayments within the 180-day period, the Company must make a prepayment at par at the end of the quarter during which such 180-day period expires.  

Any remaining portion of ECF or Available Cash, may be used at the Company's discretion, subject to certain restrictions specified in each senior secured credit facility agreement.

2015 and 2014 Principal Payments

During the three months ended March 31, 2015, the Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $38 million. Accelerated principal payments consist of prepayments of cash flow sweeps required under our senior secured credit facilities. These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $9 million, on the Company's senior subordinated notes.

During the three months ended March 31, 2014, the Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $74 million. These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $8 million, on the Company's senior subordinated notes.

On March 30, 2015, DMW commenced an offer to repurchase bank debt below par. On April 8, 2015, DMW repurchased and retired debt of $8 million utilizing cash of $7 million.

Debt Covenants

Each of the senior secured credit facilities described above contain certain covenants that, subject to exceptions, limit or restrict each borrower's incurrence of liens, investments (including acquisitions), sales of assets, indebtedness, payment of dividends, distributions and payments of certain indebtedness, sale and leaseback transactions, swap transactions, affiliate transactions, capital expenditures and mergers, liquidations and consolidations. For each senior secured credit facility, we are required to maintain compliance with a consolidated leverage ratio covenant and a consolidated interest coverage ratio covenant (the “Financial Covenants”). Each of the senior secured credit facilities also contain certain covenants that, subject to exceptions, limit or restrict Dex Media's incurrence of liens, indebtedness, ownership of assets, sales of assets, payment of dividends or distributions or modifications of the senior subordinated notes.

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The senior subordinated notes contain certain covenants that, subject to certain exceptions, among other things, limit or restrict the Company's (and, in certain cases, the Company's restricted subsidiaries) incurrence of indebtedness, making of certain restricted payments, incurrence of liens, entry into transactions with affiliates, conduct of its business, mergers, and consolidation or sale of all or substantially all of its property.

As of March 31, 2015, the Company was in compliance with all of the Financial Covenants associated with its senior secured credit facilities and senior subordinated notes.

The Company evaluated compliance with its Financial Covenants for 2015 based on management’s most recent forecast and management believes that the Company will meet each of its Financial Covenant requirements in 2015.

For 2016, the Company believes it will meet all covenant requirements in its senior secured credit facilities and senior subordinated notes; however, the senior secured credit facilities mature on December 31, 2016 and the senior subordinated notes mature on January 29, 2017. Because the Company lacks the cash flow from operations to fully pay the senior secured credit facilities and senior subordinated notes at maturity, the Company will have to seek a restructuring, amendment or refinancing of its debt, or if necessary, pursue additional debt or equity offerings, in advance of the debt becoming due. The Company’s ability to restructure, amend or refinance its debt, or to issue additional debt or equity, will depend upon, among other things: (1) the condition of the capital markets at the time, which is beyond the Company’s control; (2) the Company’s future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory and other factors, many of which are beyond the Company’s control; and (3) the Company’s continued compliance with the terms and covenants in its senior secured credit facilities and senior subordinated notes that govern its debt.

Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs", ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years beginning after December 15, 2015, and for interim periods within those years. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In January 2015, the FASB issued ASU 2015-01, "Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items", ("ASU 2015-01"). ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary (even if they ultimately would conclude it is not). The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in ASU 2015-01 are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. A reporting entity also may apply the amendments retrospectively to all periods presented in the financial statements. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 will require management for each annual and interim reporting period to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period," ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected

25

in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures.

Critical Accounting Policies

There were no material changes to our critical accounting policies and estimates since December 31, 2014. For additional information on critical accounting policies, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our Annual Report on Form 10-K for the year ended December 31, 2014.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

We are exposed to various types of market risk in the normal course of business. In particular, we are subject to interest rate variability primarily associated with borrowings under our credit facilities.

The Company's senior secured credit facilities have floating interest rates, if certain market interest rates exceed specified floors. A sensitivity analysis was performed to demonstrate the impact that a 12.5 basis point increase or decrease in the interest rate associated with the Company's debt obligations would have on interest expense, yielding an increase or decrease to interest expense of approximately $1 million for the three months ended March 31, 2015. For additional information related to the Company's debt obligation and interest rates, see Note 7 - Long-Term Debt to our consolidated financial statements included in this report.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act, as of the end of the period covered by this report. Based on that evaluation, for the reasons described below, our chief executive officer and chief financial officer concluded that as of the end of the period covered by this report our disclosure controls and procedures were not effective.

As previously disclosed in Item 9A of our annual report on Form 10-K for the year ended December 31, 2014, management assessed the effectiveness of the Company’s internal controls over financial reporting as of December 31, 2014 and concluded that internal controls over financial reporting was not effective as of December 31, 2014, due to a material weakness associated with ineffective general computing controls for certain information systems that are used for accounts receivable and revenue recognition. These ineffective general computing controls were related to weak system access and change management controls. In addition, certain review controls were not performed at a sufficient level of precision to detect if these systems were producing complete and accurate information. However, management concluded that this material weakness did not

26

produce a material misstatement to our financial statements or related disclosures included in our annual report on Form 10-K for the year ended December 31, 2014.

Beginning in the second quarter of 2015, management will implement a comprehensive remediation plan, to correct the material weakness and to improve our internal controls over financial reporting. Specifically, beginning in April 2015, the Company has implemented new general computing controls associated with system access and change management for the information systems that are used for accounts receivable and revenue recognition. Management’s remediation plan will also address the design and implementation of effective review controls to ensure the completeness and accuracy of system generated information.

We believe that our remediation plan will improve our internal controls over financial reporting. However, before management can conclude that the material weakness has been remediated, the controls will need to be operating effectively and tested over a reasonable period of time. We will continue to assess the effectiveness of our remediation efforts in connection with our evaluation of internal controls over financial reporting.

Changes in Internal Controls Over Financial Reporting

There were no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act) during the period covered by this report to remediate the previously reported material weakness, as described above.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company is subject to various lawsuits and other claims in the normal course of business. In addition, from time to time, the Company receives communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which the Company operates.

The Company establishes reserves for the estimated losses on specific contingent liabilities, for regulatory and legal actions where the Company deems a loss to be probable and the amount of the loss can be reasonably estimated. In other instances, the Company is not able to make a reasonable estimate of liability because of the uncertainties related to the outcome or the amount or range of potential loss. The Company does not expect that the ultimate resolution of pending regulatory and legal matters in future periods, including the matters described below will have a material adverse effect on its statements of comprehensive (loss).

On November 25, 2009, three retirees brought a putative class action lawsuit in the U.S. District Court for the Northern District of Texas, Dallas Division, against both the employee benefits committee and pension plans of Verizon and the employee benefits committee ("EBC") and pension plans of SuperMedia.  All three named plaintiffs are receiving the single life monthly annuity pension benefits. All complain that Verizon transferred them against their will from the Verizon pension plans to SuperMedia pension plans at or near the SuperMedia's spin-off from Verizon.  The complaint alleges that both the Verizon and SuperMedia defendants failed to provide requested plan documents, which would entitle the plaintiffs to statutory penalties under the Employee Retirement Income Securities Act ("ERISA"); that both the Verizon and SuperMedia defendants breached their fiduciary duty for refusal to disclose pension plan information; and other class action counts aimed solely at the Verizon defendants. The plaintiffs seek class action status, statutory penalties, damages and a reversal of the employee transfers.  The SuperMedia defendants filed their motion to dismiss the entire complaint on March 10, 2010. On October 18, 2010, the court ruled on the pending motion dismissing all the claims against the SuperMedia pension plans and all of the claims against SuperMedia's EBC relating to the production of documents and statutory penalties for failure to produce same. The only claims that remained against SuperMedia were procedural ERISA claims against SuperMedia's EBC. On November 1, 2010, SuperMedia's EBC filed its answer to the complaint. On November 4, 2010, SuperMedia's EBC filed a motion to dismiss one of the two remaining procedural ERISA claims against the EBC. Pursuant to an agreed order, the plaintiffs obtained class certification against the Verizon defendants. After obtaining permission from the court, the plaintiffs filed another amendment to the complaint, alleging a new count against SuperMedia's EBC. SuperMedia's EBC filed another motion to dismiss the amended complaint and filed a summary judgment motion before the deadline set by the scheduling order. On March 26, 2012, the court denied SuperMedia's EBC's motion to dismiss. On September 16, 2013, the court granted the defendants’ summary judgments, denied the plaintiffs’ summary judgment, and entered a take nothing judgment in favor of the SuperMedia EBC. Plaintiffs filed an appeal to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held on

27

September 4, 2014. On October 14, 2014, the Court of Appeals affirmed the decision of the trial court. Plaintiffs filed a petition for a writ of certiorari to the U.S. Supreme Court on February 17, 2015. The Company plans to honor its indemnification obligations and vigorously defend the lawsuit on the defendants' behalf.

On December 10, 2009, a former employee with a history of litigation against SuperMedia, filed a putative class action lawsuit in the U.S. District Court for the Northern District of Texas, Dallas Division, against certain of SuperMedia's current and former officers, directors and members of SuperMedia's EBC. The complaint attempts to recover alleged losses to the various savings plans that were allegedly caused by the breach of fiduciary duties in violation of ERISA by the defendants in administrating the plans from November 17, 2006 to March 31, 2009. The complaint alleges that: (i) the defendants wrongfully allowed all the plans to invest in Idearc common stock, (ii) the defendants made material misrepresentations regarding SuperMedia's financial performance and condition, (iii) the defendants had divided loyalties, (iv) the defendants mismanaged the plan assets, and (v) certain defendants breached their duty to monitor and inform the EBC of required disclosures. The plaintiffs are seeking unspecified compensatory damages and reimbursement for litigation expenses. At this time, a class has not been certified. The plaintiffs filed a consolidated complaint. SuperMedia filed a motion to dismiss the entire complaint on June 22, 2010. On March 16, 2011, the court granted the SuperMedia defendants' motion to dismiss the entire complaint; however, the plaintiffs have repleaded their complaint. SuperMedia's defendants filed another motion to dismiss the new complaint. On March 15, 2012, the court granted the SuperMedia defendants' second motion dismissing the case with prejudice. The plaintiffs appealed the dismissal. On July 9, 2013, the U.S. Court of Appeals for the Fifth Circuit issued a decision affirming the dismissal of the trial court. On July 23, 2013, plaintiffs filed a petition to the Court of Appeals for a rehearing en banc which was denied. The plaintiffs filed a petition for a writ of certiorari to the United States Supreme Court. After the Supreme Court’s decision in Fifth Third Bancorp v. Dudenhoeffer, the court granted plaintiffs’ writ, vacated the Court of Appeals opinion and remanded the case to the Court of Appeals to rule in conformity with the Fifth Third opinion. Subsequently, the case was remanded to the trial court. On February 17, 2015, the plaintiffs filed an amended complaint. On April 1, 2015, SuperMedia filed a motion to dismiss the amended complaint. The Company plans to honor its indemnification obligations and vigorously defend the lawsuit on the defendants' behalf.

On March 29, 2013, a former unsecured note holder that was impacted by the bankruptcy of SuperMedia, in 2009, filed a notice and summons against Verizon Communications and the former chief financial officer ("CFO") of SuperMedia in the Supreme Court of the State of New York, New York County. The filing alleges that Verizon improperly formed SuperMedia prior to the spin-off by not having the requisite number of directors under Delaware law. The plaintiff alleges that since SuperMedia was improperly formed, the former CFO did not have the authority to execute the note on behalf of SuperMedia and accordingly both Verizon and the former CFO are liable for the unpaid principal and interest when the notes were impacted by the bankruptcy. The Company plans to honor its indemnification obligation and vigorously defend the lawsuit on the defendant's behalf.

Item 1A. Risk Factors

There have been no material changes in our risk factors from those disclosed in Part I - Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014. These risk factors, in addition to other information set forth in this Quarterly Report on Form 10-Q, could materially adversely affect our business, financial condition and operating results. Additional risks and uncertainties not currently known to us or that we currently deem immaterial also may materially adversely affect our business, financial condition or results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information regarding shares acquired from employees during the three months ended March 31, 2015 as payment to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock awarded to employees pursuant to the Dex One Equity Incentive Plan or Dex Media Equity Incentive Plan.

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
January 1, 2015 - January 31, 2015	—	$	—	—	—
February 1, 2015 - February 28, 2015	717	7.07		—	—
March 1, 2015 - March 31, 2015	1,873	4.17		—	—
Total	2,590	$	4.97	—	—

28

The Company does not have an active share repurchase program.

Item 6. Exhibits

Exhibit No.	Document
3.1	Amended and Restated Certificate of Incorporation of Dex Media, Inc., (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed May 3, 2013).
3.2	Amended and Restated Bylaws of Dex Media, Inc.(incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K, filed May 3, 2013)
3.3	Certificate of Change of Registered Agent and Registered Office of Dex Media, Inc. (incorporated by reference to Exhibit 3.3 to the Registrant's Quarterly Report on Form 10-Q, filed November 6, 2013, Commission File No. 001-35895).
10.1	First Amendment to Credit Agreement, dated as of March 10, 2015, to the credit agreement, dated as of June 6, 2008, as amended and restated as of January 29, 2010, and as further amended and restated as of April 30, 2013, among Dex Media, Inc., Dex Media Holdings, Inc., Dex Media West, Inc., as the Borrower, the several banks and other financial institutions or entities from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent and the other agents parties thereto, (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed March 10, 2015, Commission File No. 001-35895).
31.1	Certification of Joseph A. Walsh filed pursuit to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of Paul D. Rouse filed pursuit to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1	Certification of Joseph A. Walsh and Paul D. Rouse filed pursuit to 18 U.S.C. Section 1350, as adopted pursuit to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Electronically filed herewith.

29

SIGNATURES

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 thereunto duly authorized.

			DEX MEDIA, INC.
Date:	May 8, 2015	By:	/s/ Joseph A. Walsh
			Joseph A. Walsh Chief Executive Officer
			(Principal Executive Officer)
			/s/ Paul D. Rouse
			Paul D. Rouse Chief Financial Officer and Treasurer
			(Principal Financial and Accounting Officer)

30

Exhibit Index

Exhibit No.	Document
3.1	Amended and Restated Certificate of Incorporation of Dex Media, Inc., (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed May 3, 2013).
3.2	Amended and Restated Bylaws of Dex Media, Inc.(incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K, filed May 3, 2013)
3.3	Certificate of Change of Registered Agent and Registered Office of Dex Media, Inc. (incorporated by reference to Exhibit 3.3 to the Registrant's Quarterly Report on Form 10-Q, filed November 6, 2013, Commission File No. 001-35895).
10.1	First Amendment to Credit Agreement, dated as of March 10, 2015, to the credit agreement, dated as of June 6, 2008, as amended and restated as of January 29, 2010, and as further amended and restated as of April 30, 2013, among Dex Media, Inc., Dex Media Holdings, Inc., Dex Media West, Inc., as the Borrower, the several banks and other financial institutions or entities from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent and the other agents parties thereto, (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed March 10, 2015, Commission File No. 001-35895).
31.1	Certification of Joseph A. Walsh filed pursuit to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification of Paul D. Rouse filed pursuit to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1	Certification of Joseph A. Walsh and Paul D. Rouse filed pursuit to 18 U.S.C. Section 1350, as adopted pursuit to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

*Electronically filed herewith.

______________________

31

EX-31.1

CERTIFICATION Exhibit 31.1

I, Joseph A. Walsh, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Dex Media, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 8, 2015	By:	/s/ Joseph A. Walsh
			Joseph A. Walsh
			Chief Executive Officer
			(Principal Executive Officer)

EX-31.2

CERTIFICATION Exhibit 31.2

I, Paul D. Rouse, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Dex Media, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 8, 2015	By:	/s/ Paul D. Rouse
			Paul D. Rouse
			Chief Financial Officer and Treasurer
			(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Dex Media, Inc. for the period ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer's knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Dex Media, Inc. as of the dates and for the periods expressed in the Report.

/s/ Joseph A. Walsh	/s/ Paul D. Rouse
Joseph A. Walsh	Paul D. Rouse
Chief Executive Officer	Chief Financial Officer and Treasurer
(Principal Executive Officer)	(Principal Financial and Accounting Officer)
May 8, 2015	May 8, 2015

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Long-Term Incentive Compensation - Narrative (Details) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended		3 Months Ended
	Oct. 14, 2014	Jan. 02, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (shares)			30,972
Options granted strike price ($ per share)		$ 10.25	$ 8.25
Unrecognized compensation expense related to restricted stock and stock option awards			$ 3
Unrecognized compensation expense, period for recognition			2 years 2 months 6 days
Long-term compensation expense				2
Invested Capital	2,290
Period to determine average trading prices for invested capital	20 days
Stock-based compensation expense			1	1
Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (shares)	271,000
Options granted strike price ($ per share)	$ 7.54
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares of common stock authorized for issuance under the incentive plan (in shares)			1,264,911
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award agreement triggering award to fully vest on date of change in control, period prior to change in control date			6 months
Award agreement triggering award to fully vest on date of employee service termination, period following change in control date			2 years
Outstanding units (in shares)			201,460		213,246
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award agreement triggering award to fully vest on date of change in control, period prior to change in control date			6 months
Award agreement triggering award to fully vest on date of employee service termination, period following change in control date			2 years
Stock options awards expiration period			10 years
Award vesting period			4 years
Expected life (in years)			6 years 5 months 27 days
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense			1
Unrecognized compensation expense			$ 11
Expected life (in years)	3 years 2 months 16 days		2 years 8 months 30 days
Performance Shares | Value Creation Program (VCP)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares of common stock authorized for issuance under the incentive plan (in shares)	700,000
Amount authorized as a percentage of value creation	7.00%
Outstanding units (in shares)			645,000
Performance Shares | Value Creation Program Two (VCP2)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding units (in shares)			34,390

XML

Contingencies (Details) (Retirees Vs Verizon and Company Employee Benefits Committee and Pension Plans)	0 Months Ended
	Nov. 04, 2010 claim	Nov. 25, 2009 plaintiff
Retirees Vs Verizon and Company Employee Benefits Committee and Pension Plans
Loss Contingencies [Line Items]
Number of plaintiffs		3
Number of claims for which motion was filed for dismissal	1
Number of remaining procedural ERISA claims	2

XML

Additional Financial Information - Fair Value of Financial Instruments (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Apr. 30, 2013
Fair Values of Financial Instruments
Total debt obligations, carrying value	$ 2,382	$ 2,396
Carrying Amount
Fair Values of Financial Instruments
Total debt obligations, carrying value	2,382	2,396
Fair Value
Fair Values of Financial Instruments
Total debt obligations, fair value	1,972	1,950
Senior subordinated notes | Carrying Amount
Fair Values of Financial Instruments
Total debt obligations, carrying value	261	252
Senior subordinated notes | Fair Value
Fair Values of Financial Instruments
Total debt obligations, fair value	115	112
Super Media Amended and Restated Credit Facility | Amended and Restated Credit Facility
Fair Values of Financial Instruments
Total debt obligations, fair value			1,082
Super Media Amended and Restated Credit Facility | Amended and Restated Credit Facility | Carrying Amount
Fair Values of Financial Instruments
Total debt obligations, carrying value	852	841
Super Media Amended and Restated Credit Facility | Amended and Restated Credit Facility | Fair Value
Fair Values of Financial Instruments
Total debt obligations, fair value	855	829
R.H. Donnelly Inc. | Amended and Restated Credit Facility | Carrying Amount
Fair Values of Financial Instruments
Total debt obligations, carrying value	605	612
R.H. Donnelly Inc. | Amended and Restated Credit Facility | Fair Value
Fair Values of Financial Instruments
Total debt obligations, fair value	452	435
Dex Media East, Inc. | Amended and Restated Credit Facility | Carrying Amount
Fair Values of Financial Instruments
Total debt obligations, carrying value	343	354
Dex Media East, Inc. | Amended and Restated Credit Facility | Fair Value
Fair Values of Financial Instruments
Total debt obligations, fair value	276	281
Dex Media West Amended and Restated Credit Facility | Amended and Restated Credit Facility | Carrying Amount
Fair Values of Financial Instruments
Total debt obligations, carrying value	321	337
Dex Media West Amended and Restated Credit Facility | Amended and Restated Credit Facility | Fair Value
Fair Values of Financial Instruments
Total debt obligations, fair value	$ 274	$ 293

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Business and Basis of Presentation - Narrative (Details)	3 Months Ended
	Mar. 31, 2015 consultant client
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business clients (over 475,000)	475,000
Number of sales employees (approx. 1,700)	1,700

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Long-Term Incentive Compensation - Stock Option Activity (Details) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended	3 Months Ended	12 Months Ended
	Jan. 02, 2014	Mar. 31, 2015	Dec. 31, 2014
Number of Stock Option Awards (in shares) [Roll Forward]:
Beginning balance		909,799
Granted		30,972
Exercises		0
Forfeitures/expirations		(1,000)
Ending balance		939,771	909,799
Weighted-Average Exercise Price (in dollars per share):
Beginning balance		$ 9.17
Granted	$ 10.25	$ 8.25
Exercises		$ 0.00
Forfeitures/expirations		$ 6.30
Ending balance		$ 9.14	$ 9.17
Weighted-Average Remaining Contractual Term (in years):
Beginning balance		9 years 29 days	9 years 3 months 22 days
Granted		10 years
Forfeitures/expirations		7 years
Ending balance		9 years 29 days	9 years 3 months 22 days
Intrinsic Value		$ 0	$ 408,757

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Long-Term Debt - Additional Information (Details) (USD $)	3 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Apr. 08, 2015	Apr. 30, 2013	Mar. 10, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Non-cash interest expense	$ 25,000,000	$ 22,000,000
Total debt principal payments	38,000,000	74,000,000
Dex Media West Amended and Restated Credit Facility | Subsequent Event | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Repurchase amount			8,000,000
Amended and Restated Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance expense	3,000,000
Repurchase debt, maximum period to repurchase debt	180 days
Total debt principal payments	38,000,000	74,000,000
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Total debt obligations, fair value				1,082,000,000
Additional senior subordinated notes	1,035,000,000			1,442,000,000
Liabilities, Fair Value Adjustment				360,000,000
Non-cash interest expense	20,000,000	17,000,000
Unamortized discount	183,000,000
Mandatory debt principal payment due as percentage of increase in available cash	67.50%
Repurchase debt, face value discount percent	12.50%
Amended and Restated Credit Facility | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Mandatory debt principal payments, excess cash flow sweep percentage	60.00%
Repurchase debt, face value discount percent	20.00%
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Additional senior subordinated notes	326,000,000
Unamortized discount	5,000,000				5,000,000
Mandatory debt principal payments, excess cash flow sweep percentage	50.00%
Repurchase debt, face value discount percent	30.00%
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Total debt principal payments			7,000,000
Amended and Restated Credit Facility | 2013 and 2014 | Dex Media East, Inc.
Debt Instrument [Line Items]
Mandatory debt principal payments, excess cash flow sweep percentage	70.00%
Repurchase debt, face value discount percent	15.00%
Amended and Restated Credit Facility | 2015 and 2016 | Dex Media East, Inc.
Debt Instrument [Line Items]
Mandatory debt principal payments, excess cash flow sweep percentage	60.00%
Repurchase debt, face value discount percent	20.00%
Amended and Restated Credit Facility | Principal and Interest Payments Option One | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Variable interest rate floor percentage	4.00%
Amended and Restated Credit Facility | Principal and Interest Payments Option One | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Variable interest rate floor percentage	4.00%
Amended and Restated Credit Facility | Principal and Interest Payments Option One | Dex Media East, Inc.
Debt Instrument [Line Items]
Variable interest rate floor percentage	4.00%
Amended and Restated Credit Facility | Principal and Interest Payments Option One | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Variable interest rate floor percentage	4.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Basis spread	0.50%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Basis spread	0.50%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | Dex Media East, Inc.
Debt Instrument [Line Items]
Basis spread	0.50%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Basis spread	0.50%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Debt stated percentage interest rate	3.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Debt stated percentage interest rate	3.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Dex Media East, Inc.
Debt Instrument [Line Items]
Debt stated percentage interest rate	3.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Debt stated percentage interest rate	3.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Basis spread	8.60%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Basis spread	6.75%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | Dex Media East, Inc.
Debt Instrument [Line Items]
Basis spread	3.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Basis spread	5.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option One | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Interest period	1 month
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option One | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Interest period	1 month
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option One | Dex Media East, Inc.
Debt Instrument [Line Items]
Interest period	1 month
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option One | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Interest period	1 month
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Two | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Interest period	2 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Two | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Interest period	2 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Two | Dex Media East, Inc.
Debt Instrument [Line Items]
Interest period	2 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Two | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Interest period	2 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Three | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Interest period	3 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Three | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Interest period	3 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Three | Dex Media East, Inc.
Debt Instrument [Line Items]
Interest period	3 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Three | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Interest period	3 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Four | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Interest period	6 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Four | Dex Media East, Inc.
Debt Instrument [Line Items]
Interest period	6 months
Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Four | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Interest period	6 months
Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | London Interbank Offered Rate LIBOR | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Basis spread	1.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | London Interbank Offered Rate LIBOR | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Basis spread	1.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | London Interbank Offered Rate LIBOR | Dex Media East, Inc.
Debt Instrument [Line Items]
Basis spread	1.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | London Interbank Offered Rate LIBOR | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Basis spread	1.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | Super Media Amended and Restated Credit Facility
Debt Instrument [Line Items]
Basis spread	7.60%
Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | R.H. Donnelly Inc.
Debt Instrument [Line Items]
Basis spread	5.75%
Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | Dex Media East, Inc.
Debt Instrument [Line Items]
Basis spread	2.00%
Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | Dex Media West Amended and Restated Credit Facility
Debt Instrument [Line Items]
Basis spread	4.00%
Senior Subordinated Notes
Debt Instrument [Line Items]
Debt stated percentage interest rate	14.00%					14.00%
Paid-in-kind interest	9,000,000	8,000,000
Senior Subordinated Notes | Dex One Senior Subordinated Notes
Debt Instrument [Line Items]
Additional senior subordinated notes	$ 9,000,000
Debt stated percentage interest rate	12.00%
Maximum stated rate	14.00%
Percentage required in cash	50.00%
Percentage required in PIK interest	50.00%
Senior Subordinated Notes | Dex One Senior Subordinated Notes | Semi-Annual Interest Period
Debt Instrument [Line Items]
Percent of interest payments made in cash	50.00%
Percent of interest payments made with payments-in-kind interest	50.00%

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Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The following table sets forth the calculation of the Company’s basic and diluted (loss) per share for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015			2014
	(in millions, except per share amounts)
Net (loss)	$	(59	)	$	(82	)
Basic and diluted weighted-average common shares outstanding	17.4			17.3
Basic and diluted (loss) per common share	$	(3.39	)	$	(4.74	)

Basic earnings (loss) per share are computed by dividing net income (loss) by the number of weighted-average common shares outstanding during the reported period. Diluted earnings per share are calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. Due to the Company's reported net (loss) for the three months ended March 31, 2015 and 2014, the effect of all stock-based awards was anti-dilutive and therefore not included in the calculation of earnings per share. For the three months ended March 31, 2015, and 2014 there were 0.9 million shares and 0.5 million shares of the Company’s stock-based awards, respectively, that had exercise prices that exceeded the average market price of the Company’s common stock. These shares were not included in our weighted average diluted shares outstanding.

Certain employees were granted restricted stock awards, which entitles those participants to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of the Company’s common stock. As such, these unvested restricted stock awards meet the definition of a participating security. Participating securities are defined as unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) and are included in the computation of earnings per share pursuant to the two-class method. At March 31, 2015 and March 31, 2014 there were 0.2 million and 0.3 million of such participating securities outstanding, respectively. Under the two-class method, all earnings, whether distributed or undistributed, are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. However, the net (loss) from continuing operations for the three months ended March 31, 2015 and 2014 was not allocated to these participating securities, as these awards do not share in any loss generated by the Company.

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Long-Term Incentive Compensation - Stock-Based Compensation Expense (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$ 1	$ 1

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Earnings (Loss) Per Share - Additional Information (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares excluded from computation of weighted average diluted shares outstanding (shares)	900,000	500,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Participating securities outstanding (shares)	200,000	300,000

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Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Sahre, Basic and Diluted [Abstract]
Net (loss)	$ (59)	$ (82)
Basic and diluted weighted-average common shares outstanding (in shares)	17.4	17.3
Basic and diluted (loss) per common share ($ per share)	$ (3.39)	$ (4.74)

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Long-Term Incentive Compensation - Value Creation Program (Details) (Performance Shares, USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended
	Oct. 14, 2014	Mar. 31, 2015	Oct. 14, 2014
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value creation programs fair value	$ 12	$ 13	$ 12
Volatility	11.93%	11.42%
Expected life (in years)	3 years 2 months 16 days	2 years 8 months 30 days
Dividend yield	0.00%	0.00%
Risk-free interest rate	0.87%	0.81%

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Additional Financial Information - Depreciation and Amortization (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Property, Plant and Equipment [Line Items]
Total depreciation and amortization	$ 106	$ 161
Amortization of intangible assets
Property, Plant and Equipment [Line Items]
Total depreciation and amortization	93	147
Amortization of capitalized software
Property, Plant and Equipment [Line Items]
Total depreciation and amortization	7	10
Depreciation of fixed assets
Property, Plant and Equipment [Line Items]
Total depreciation and amortization	$ 6	$ 4

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Additional Financial Information - Other Comprehensive Income (Loss) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Comprehensive Income (loss) Adjustments
Net (loss)	$ (59)	$ (82)
Gross
Accumulated actuarial gains (losses) of benefit plans	2	16
Amortization of actuarial losses	1	0
Settlement losses	1	0
Settlement of plan amendments	0	(13)
Total reclassifications included in net (loss)	2	(13)
Adjustments for pension and other post-employment benefits	4	3
Taxes
Accumulated actuarial gains (losses) of benefit plans	(1)	(6)
Amortization of actuarial losses	0	0
Settlement losses	0	0
Settlement of plan amendments	0	5
Total reclassifications included in net (loss)	0	5
Adjustments for pension and other post-employment benefits	(1)	(1)
Net
Accumulated actuarial gains (losses) of benefit plans	1	10
Amortization of actuarial losses	1	0
Settlement losses	1	0
Settlement of plan amendments	0	(8)
Total reclassifications included in net (loss)	2	(8)
Adjustments for pension benefits	3	2
Comprehensive (Loss)	$ (56)	$ (80)

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Business Transformation Costs

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Business Transformation Costs

Business Transformation Costs

On December 11, 2014, the Company announced an organizational restructuring program, the costs of which the Company has identified as business transformation costs. The program is designed to reorganize and strategically refocus the Company. The program includes the launch of virtual sales offices, enabling the Company to eliminate field sales offices, the automation of the sales process, integration of systems to eliminate duplicative systems and workforce reductions. The Company expects charges associated with the program to range from $70 million to $100 million. Inception to date, the Company has incurred $52 million associated with the program.

During the three months ended March 31, 2015, the Company recorded $9 million of business transformation costs, including $5 million associated with lease costs and $3 million associated with system consolidation costs. The Company did not record any business transformation costs during the three months ended March 31, 2014.

Business transformation costs are recorded as general and administrative expense in our consolidated statement of comprehensive income (loss).

The following table reflects the liability associated with the program as of March 31, 2015.

	Beginning Balance							Ending Balance
	January 1, 2015		Expense		Payments			March 31, 2015
	(in millions)
Severance costs	$	38	$	—	$	(23	)	$	15
Lease costs	—		5		(1		)	4
System consolidation costs	—		3		(3		)	—
Other costs	—		1		(1		)	—
Total costs	$	38	$	9	$	(28	)	$	19

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Additional Financial Information - Accumulated Other Comprehensive (Loss) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Gross
Accumulated other comprehensive (loss) - December 31, 2014	$ (82)
Adjustments for pension benefits	4	3
Accumulated other comprehensive (loss) - March 31, 2015	(78)
Taxes
Accumulated other comprehensive (loss) - December 31, 2014	(3)
Adjustments for pension benefits	(1)	(1)
Accumulated other comprehensive (loss) - March 31, 2015	(4)
Net
Accumulated other comprehensive (loss) - December 31, 2014	(85)
Adjustments for pension benefits	3	2
Accumulated other comprehensive (loss) - March 31, 2015	$ (82)

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Long-Term Incentive Compensation - Restricted Stock (Details) (Restricted Stock, USD $)	3 Months Ended
	Mar. 31, 2015
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding restricted stock (in shares)	213,246
Granted (in shares)	0
Vested (in shares)	(7,491)
Forfeitures (in shares)	(4,295)
Outstanding restricted stock (in shares)	201,460
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding restricted stock (in dollars per share)	$ 10.01
Granted (in dollars per share)	$ 0.00
Vested (in dollars per share)	$ 10.59
Forfeitures (in dollars per share)	$ 10.28
Outstanding restricted stock (in dollars per share)	$ 10.00

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Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Operating Revenue	$ 406	$ 456
Operating Expenses
Selling	96	115
Cost of service (exclusive of depreciation and amortization)	141	150
General and administrative	37	23
Depreciation and amortization	106	161
Total Operating Expenses	380	449
Operating Income	26	7
Interest expense, net	85	90
(Loss) Before Provision (Benefit) for Income Taxes	(59)	(83)
Provision (benefit) for income taxes	0	(1)
Net (Loss)	(59)	(82)
Other Comprehensive (Loss)
Adjustments for pension and other post-employment benefits, net of taxes	3	2
Comprehensive (Loss)	$ (56)	$ (80)
Basic and diluted (loss) per common share ($ per share)	$ (3.39)	$ (4.74)
Basic and diluted weighted-average common shares outstanding (in shares)	17.4	17.3

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Income Taxes (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2015
Income Tax Rate [Line Items]
Anticipated effective income tax rate	(2.20%)	0.30%
Effective tax rate less valuation allowance reduction	35.00%
Effective income tax rate			(3.60%)
Scenario, Forecast
Income Tax Rate [Line Items]
Anticipated effective income tax rate				(0.70%)

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Business and Basis of Presentation

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Basis of Presentation

Business and Basis of Presentation

Business

Dex Media, Inc. ("Dex Media", "we", "our", or the "Company") is a leading provider of local marketing solutions to over 475,000 business clients across the United States. Our approximately 1,700 sales employees work directly with our clients to provide multiple local marketing solutions to help our clients connect with their customers.

Our local marketing solutions are primarily sold under various “Dex” and “Super” brands, including print yellow page directories, online local search engine websites, mobile local search applications, and placement of our client’s information and advertisements on major search engine websites, with which we are affiliated. Our local marketing solutions also include website development, search engine optimization, market analysis, video development and promotion, reputation management, social media marketing, and tracking/reporting of customer leads.

Our print yellow page directories are co-branded with various local telephone service providers; including Verizon Communications Inc. ("Verizon"), AT&T Inc., CenturyLink, Inc., FairPoint Communications, Inc., and Frontier Communications Corporation. We operate as the authorized publisher of print yellow page directories in some of the markets where they provide telephone service, and we hold multiple agreements governing our relationship with each company, including publishing agreements, branding agreements, and non-competition agreements.

Basis of Presentation

The Company prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States. Pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"), the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring items and accruals, necessary to fairly present the financial position, results of operations and cash flows of Dex Media and its subsidiaries. All inter-company transactions have been eliminated. The Company is managed as a single business segment. These unaudited interim financial statements, prepared in accordance with GAAP, do not contain all information and footnote disclosures normally included in audited annual financial statements and, as such, should be read in conjunction with the Dex Media Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three months ended March 31, 2015 may not be indicative of results of operations for the 2015 fiscal year.

The preparation of these financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.

Certain prior period amounts on our consolidated financial statements have been reclassified to conform to current year presentation.

Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs", ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years beginning after December 15, 2015, and for interim periods within those years. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In January 2015, the FASB issued ASU 2015-01, "Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items", ("ASU 2015-01"). ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary (even if they ultimately would conclude it is not). The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in ASU 2015-01 are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. A reporting entity also may apply the amendments retrospectively to all periods presented in the financial statements. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 will require management for each annual and interim reporting period to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period," ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures.

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Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross	$ 1,865		$ 1,865
Accumulated Amortization	1,164		1,071
Net	701		794
Depreciation and amortization	106	161
Estimated amortization expense
2015	373
2016	237
2017	103
2018	81
Directory services agreements
Finite-Lived Intangible Assets [Line Items]
Gross	666		666
Accumulated Amortization	342		307
Net	324		359
Client relationships
Finite-Lived Intangible Assets [Line Items]
Gross	924		924
Accumulated Amortization	693		649
Net	231		275
Trademarks and domain names
Finite-Lived Intangible Assets [Line Items]
Gross	222		222
Accumulated Amortization	102		91
Net	120		131
Patented technologies
Finite-Lived Intangible Assets [Line Items]
Gross	42		42
Accumulated Amortization	19		16
Net	23		26
Advertising commitment
Finite-Lived Intangible Assets [Line Items]
Gross	11		11
Accumulated Amortization	8		8
Net	3		3
Amortization of intangible assets
Finite-Lived Intangible Assets [Line Items]
Depreciation and amortization	$ 93	$ 147

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Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Schedule of outstanding debt obligations

The following table sets forth the Company's outstanding debt obligations on the consolidated balance sheets at March 31, 2015 and December 31, 2014.

		Interest Rates				Carrying Value
	Maturity	At March 31, 2015		At December 31, 2014		At March 31, 2015		At December 31, 2014
						(in millions)
Senior secured credit facilities
SuperMedia Inc.	December 31, 2016	11.6	%	11.6	%	$	852	$	841
R.H. Donnelly Inc.	December 31, 2016	9.75	%	9.75	%	605		612
Dex Media East, Inc.	December 31, 2016	6.0	%	6.0	%	343		354
Dex Media West, Inc.	December 31, 2016	8.0	%	8.0	%	321		337
Senior subordinated notes	January 29, 2017	14.0	%	14.0	%	261		252
Total debt						2,382		2,396
Less: current maturities of long-term debt						132		124
Long-term debt						$	2,250	$	2,272

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Long-Term Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 2,382	$ 2,396
Current maturities of long-term debt	132	124
Long-term debt	2,250	2,272
Senior Subordinated Notes
Debt Instrument [Line Items]
Debt stated percentage interest rate	14.00%	14.00%
SuperMedia Inc. | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Debt interest rate	11.60%	11.60%
R.H. Donnelly Inc. | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Debt interest rate	9.75%	9.75%
Dex Media East, Inc. | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Debt interest rate	6.00%	6.00%
Dex Media West, Inc. | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Debt interest rate	8.00%	8.00%
Carrying Value
Debt Instrument [Line Items]
Long-term debt, carrying value	2,382	2,396
Carrying Value | Senior Subordinated Notes
Debt Instrument [Line Items]
Long-term debt, carrying value	261	252
Carrying Value | SuperMedia Inc. | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Long-term debt, carrying value	852	841
Carrying Value | R.H. Donnelly Inc. | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Long-term debt, carrying value	605	612
Carrying Value | Dex Media East, Inc. | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Long-term debt, carrying value	343	354
Carrying Value | Dex Media West, Inc. | Amended and Restated Credit Facility
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 321	$ 337

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Long-Term Incentive Compensation (Tables)

3 Months Ended

Mar. 31, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of changes in outstanding restricted stock awards

Changes in the Company's outstanding restricted stock awards were as follows for the three months ended March 31, 2015.

	Restricted  Stock Awards		Weighted-Average Grant Date Fair Value
Outstanding restricted stock awards at January 1, 2015	213,246		$	10.01
Granted	—		$	—
Vested	(7,491	)	$	10.59
Forfeitures	(4,295	)	$	10.28
Outstanding restricted stock awards at March 31, 2015	201,460		$	10.00

Schedule of weighted average option fair values and assumptions

Weighted average stock option fair values and assumptions for the three months ended March 31, 2015 are disclosed in the following table.

	Three Months Ended
	March 31, 2015
Weighted average fair value	$	4.50
Dividend yield	—
Volatility	55.35		%
Risk-free interest rate	1.67		%
Expected life (in years)	6.49

Schedule of changes in outstanding stock option awards

Changes in the Company's outstanding stock option awards were as follows for the three months ended March 31, 2015.

	Number of Stock Option Awards		Weighted- Average Exercise Price			Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding stock option awards at January 1, 2015	909,799		$		9.17	9.31	$	408,757
Granted	30,972		$	8.25		10.00	—
Exercises	—		$		—	—	—
Forfeitures/expirations	(1,000	)	$	6.30		7.00	—
Outstanding stock option awards at March 31, 2015	939,771		$		9.14	9.08	$	—

Schedule of stock-based compensation expense

The following table sets forth stock-based compensation expense recognized for the three months ended March 31, 2015 and 2014. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive (loss).

	Three Months Ended March 31,
	2015		2014
	(in millions)
Stock-based compensation expense	$	1	$	1

Performance Shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of weighted average option fair values and assumptions

The expected volatility is based on the historical volatility of the Company's total invested capital over the period since the merger of the Company's predecessor companies, Dex One and SuperMedia.

	At October 14, 2014			At March 31, 2015
	($ in millions)
Value creation programs fair value	$	12		$	13
Expected volatility	11.93		%	11.42		%
Remaining contractual term	3.21 years			2.75 years
Expected dividend yield	0.00		%	0.00		%
Risk free rate	0.87		%	0.81		%

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Merger

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Merger

Merger

Dex Media was created as a result of the merger between Dex One Corporation (“Dex One”) and SuperMedia Inc. (“SuperMedia”) on April 30, 2013. The merger was completed pursuant to the Amended and Restated Agreement and Plan of Merger dated as of December 5, 2012 (the "Merger Agreement"), which provided, among other things, that if either Dex One or SuperMedia were unable to obtain the requisite consents to the merger from their respective stockholders and to the contemplated amendments to their respective financing agreements from their senior secured lenders to consummate the transactions on an out-of-court basis, the merger could be effected through voluntary pre-packaged plans of reorganization ("the Prepackaged Plans") under Chapter 11 of Title 11 of the United States Code ("Chapter 11"). Because neither Dex One nor SuperMedia were able to obtain the requisite consents to complete the merger out of court, each of Dex One and SuperMedia and all of their domestic subsidiaries voluntarily filed pre-packaged bankruptcy petitions under Chapter 11 on March 18, 2013, in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). On April 29, 2013, the Bankruptcy Court entered separate orders confirming each of the Prepackaged Plans. On April 30, 2013, Dex One and SuperMedia consummated the merger and other transactions contemplated by the Merger Agreement and emerged from Chapter 11 protection. Effective with the emergence from bankruptcy and the consummation of the merger, each share of Dex One common stock was converted into 0.2 shares of common stock of Dex Media and each share of SuperMedia common stock was converted into 0.4386 shares of common stock of Dex Media.

We accounted for the business combination using the acquisition method of accounting in accordance with ASC 805, "Business Combinations",with Dex One identified as the acquiring entity for accounting purposes. Dex One was considered the acquiring entity for accounting purposes based on certain criteria including, but not limited to, the fact that (1) upon consummation of the merger, Dex One shareholders held approximately 60% of the common stock of Dex Media as compared to approximately 40% held by SuperMedia shareholders and (2) Dex One's chairman of the board of directors continued as the chairman of the board of directors of Dex Media.

Prior to the merger with Dex One, SuperMedia had $386 million of deferred revenue and $122 million of deferred directory costs on its consolidated balance sheet. As a result of acquisition accounting, the fair value of deferred revenue at April 30, 2013 for SuperMedia was determined to have no value, equating to $386 million of revenue that would have been amortized by SuperMedia from May 2013 through April 2014, that was not recognized by Dex Media. SuperMedia had minimal, if any, remaining performance obligations related to its clients who previously contracted for advertising, thus, no value was assigned to its deferred revenue. The fair value of deferred directory costs as of April 30, 2013 for SuperMedia was determined to have no value, other than paper held in inventory and prepayments associated with future publications. These costs did not have any future value since SuperMedia has already incurred the costs to produce the clients' advertising and did not anticipate to incur any significant additional costs associated with those published directories. This equated to $93 million of cost that would have been amortized by SuperMedia from May 2013 through April 2014, that was not recognized by Dex Media. As a result, our financial results for the three months ended March 31, 2014 excluded revenue of approximately $30 million and net income of approximately $14 million, which would have been recognized absent the effect of acquisition accounting. The exclusion of these results from the consolidated statements of comprehensive (loss) of Dex Media, did not impact our cash flows.

Associated with the integration of the two companies, we incurred merger integration costs. Merger integration costs represent costs incurred to achieve synergies related to the merger of Dex One and SuperMedia. These costs include severance, professional fees and contract services. As part of the merger, there were a large number of processes, policies, procedures, operations, technologies and systems to be integrated. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive (loss). During the three months ended March 31, 2014, the Company incurred $18 million of merger integration costs, of which $10 million represents severance costs. The Company will not incur any merger integration costs in 2015.

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Consolidated Balance Sheets (Unaudited) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 171	$ 171
Accounts receivable, net of allowances of $29 and $30	142	151
Deferred directory costs	150	161
Prepaid expenses and other	12	14
Total current assets	475	497
Fixed assets and capitalized software, net	54	64
Goodwill	315	315
Intangible assets, net	701	794
Pension assets	49	45
Other non-current assets	6	7
Total Assets	1,600	1,722
Current Liabilities
Current maturities of long-term debt	132	124
Accounts payable and accrued liabilities	132	167
Accrued interest	11	20
Deferred revenue	85	93
Total current liabilities	360	404
Long-term debt	2,250	2,272
Employee benefit obligations	125	127
Deferred tax liabilities	29	30
Unrecognized tax benefits	11	11
Other liabilities	2	0
Shareholders' (Deficit)
Common stock, par value $.001 per share, authorized – 300,000,000 shares; issued and outstanding – 17,623,266 shares at March 31, 2015 and 17,608,580 shares at December 31, 2014	0	0
Additional paid-in capital	1,555	1,554
Retained (deficit)	(2,650)	(2,591)
Accumulated other comprehensive (loss)	(82)	(85)
Total shareholders' (deficit)	(1,177)	(1,122)
Total Liabilities and Shareholders' (Deficit)	$ 1,600	$ 1,722

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Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The Company prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States. Pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"), the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring items and accruals, necessary to fairly present the financial position, results of operations and cash flows of Dex Media and its subsidiaries. All inter-company transactions have been eliminated. The Company is managed as a single business segment. These unaudited interim financial statements, prepared in accordance with GAAP, do not contain all information and footnote disclosures normally included in audited annual financial statements and, as such, should be read in conjunction with the Dex Media Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the three months ended March 31, 2015 may not be indicative of results of operations for the 2015 fiscal year.

The preparation of these financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.

Certain prior period amounts on our consolidated financial statements have been reclassified to conform to current year presentation.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs", ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years beginning after December 15, 2015, and for interim periods within those years. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In January 2015, the FASB issued ASU 2015-01, "Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items", ("ASU 2015-01"). ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary (even if they ultimately would conclude it is not). The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in ASU 2015-01 are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. A reporting entity also may apply the amendments retrospectively to all periods presented in the financial statements. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 will require management for each annual and interim reporting period to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures.

In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period," ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 01, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	DEX MEDIA, INC.
Entity Central Index Key	0001556739
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		17,619,933

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Business Transformation Costs (Tables)

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Schedule of Restructuring Reserve by Type of Cost

The following table reflects the liability associated with the program as of March 31, 2015.

	Beginning Balance							Ending Balance
	January 1, 2015		Expense		Payments			March 31, 2015
	(in millions)
Severance costs	$	38	$	—	$	(23	)	$	15
Lease costs	—		5		(1		)	4
System consolidation costs	—		3		(3		)	—
Other costs	—		1		(1		)	—
Total costs	$	38	$	9	$	(28	)	$	19

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts (in $ millions)	$ 29	$ 30
Shareholders' (Deficit)
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	17,623,266	17,608,580
Common stock, shares outstanding	17,623,266	17,608,580

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Long-Term Debt

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

The following table sets forth the Company's outstanding debt obligations on the consolidated balance sheets at March 31, 2015 and December 31, 2014.

		Interest Rates				Carrying Value
	Maturity	At March 31, 2015		At December 31, 2014		At March 31, 2015		At December 31, 2014
						(in millions)
Senior secured credit facilities
SuperMedia Inc.	December 31, 2016	11.6	%	11.6	%	$	852	$	841
R.H. Donnelly Inc.	December 31, 2016	9.75	%	9.75	%	605		612
Dex Media East, Inc.	December 31, 2016	6.0	%	6.0	%	343		354
Dex Media West, Inc.	December 31, 2016	8.0	%	8.0	%	321		337
Senior subordinated notes	January 29, 2017	14.0	%	14.0	%	261		252
Total debt						2,382		2,396
Less: current maturities of long-term debt						132		124
Long-term debt						$	2,250	$	2,272

As a result of the merger and adoption of acquisition accounting on April 30, 2013, SuperMedia's debt obligation was recorded at its fair value of $1,082 million, from its face value of $1,442 million, resulting in a discount of $360 million. This debt fair value adjustment is being amortized as an increase to interest expense over the remaining term of the SuperMedia debt obligation using the effective interest method and does not impact future interest or principal payments. Amortization of the SuperMedia debt fair value adjustment of $20 million and $17 million was included in interest expense during the three months ended March 31, 2015 and 2014, respectively. The unamortized portion of the SuperMedia discount as of March 31, 2015 was $183 million. The par value of SuperMedia's debt obligation at March 31, 2015 was $1,035 million.

Effective March 10, 2015, the Company obtained an amendment to the DMW senior secured credit facility to permit the exclusion of one-time, nonrecurring cash expenditures associated with our business transformation program from the definition of earnings before interest, taxes, depreciation and amortization ("EBITDA") that is used for the leverage ratio covenant measure. An amendment fee of $5 million was paid and recorded as a discount on the DMW senior secured credit facility. The debt discount is being amortized as an increase to interest expense over the remaining term of the DMW debt obligation using the effective interest method and does not impact future interest or principal payments. The unamortized portion of the DMW debt discount at March 31, 2015 was $5 million. The par value of DMW's debt obligations at March 31, 2015 was $326 million.

Debt Issuance Costs

Certain costs associated with the issuance of our senior secured credit facilities were capitalized and are included in other non-current assets on the Company's consolidated balance sheet. At March 31, 2015, the Company has deferred debt issuance costs of $3 million on its consolidated balance sheet. These costs are amortized to interest expense over the remaining term of the related senior secured credit facilities using the effective interest method.

Senior Secured Credit Facilities

In connection with the consummation of the Prepackaged Plans and the merger between Dex One and SuperMedia on April 30, 2013, Dex Media entered into an amended and restated loan agreement for SuperMedia and three amended and restated credit agreements for each of Dex Media East, Inc. ("DME"), DMW and R.H. Donnelley Inc. ("RHD") (collectively, the "senior secured credit facilities"), with named financial institutions and JPMorgan Chase Bank, N.A. as administrative agent and collateral agent under the SuperMedia, DME and DMW senior secured credit facilities, and Deutsche Bank Trust Company Americas as administrative agent and collateral agent under the RHD senior secured credit facility.

SuperMedia Senior Secured Credit Facility

The SuperMedia senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing, at SuperMedia's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted London Inter-Bank Offered Rate ("LIBOR") plus 1.00%, plus an interest rate margin of 7.60%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 8.60%. SuperMedia may elect interest periods of one, two or three months for Eurodollar borrowings.

RHD Senior Secured Credit Facility

The RHD senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at RHD's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted LIBOR plus 1.00%, plus an interest rate margin of 5.75%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 6.75%. RHD may elect interest periods of one, two, three or six months for Eurodollar borrowings.

DME Senior Secured Credit Facility

The DME senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at DME's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate plus 0.50%, or (3) adjusted LIBOR plus 1.00%, plus an interest rate margin of 2.00%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 3.00%. DME may elect interest periods of one, two, three or six months for Eurodollar borrowings.

DMW Senior Secured Credit Facility

The DMW senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at DMW's option, at either:

• With respect to base rate loans, the highest (subject to a floor of 4.00%) of (1) the prime rate, (2) the federal funds effective rate, plus 0.50%, or (3) adjusted LIBOR, plus 1.00%, plus an interest rate margin of 4.00%, or

• With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00%, plus an interest rate margin of 5.00%. DMW may elect interest periods of one, two, three or six months for Eurodollar borrowings.

Senior Subordinated Notes

The Company's senior subordinated notes require interest payments, payable semi-annually on March 31 and September 30 of each year. The senior subordinated notes accrue interest at 12% for cash interest payments and 14% for payments-in-kind ("PIK") interest. PIK interest represents additional indebtedness and increases the aggregate principal amount owed. The Company is required to make interest payments of 50% in cash and 50% in PIK interest until maturity of the senior secured credit facilities on December 31, 2016. For the semi-annual interest period ended March 31, 2015, the Company made interest payments of 50% in cash and 50% in PIK interest resulting in the issuance of an additional $9 million of senior subordinated notes. The Company is restricted from making open market repurchases of its senior subordinated notes until maturity of the senior secured credit facilities on December 31, 2016. The senior subordinated notes mature on January 29, 2017.

Principal Payment Terms for Senior Secured Credit Facilities

The Company has mandatory debt principal payments due after each quarter prior to the December 31, 2016 maturity date on its outstanding senior secured credit facilities. RHD, DME and DMW are required to pay scheduled amortization payments, plus additional prepayments at par equal to each borrower's respective Excess Cash Flow ("ECF"), multiplied by the applicable ECF Sweep Percentage as defined in the respective senior secured credit facility (60% for RHD, 50% for DMW, and 70% in 2013 and 2014 and 60% in 2015 and 2016 for DME). SuperMedia is required to make prepayments at par in an amount equal to 67.5% of any increase in Available Cash, as defined in its senior secured credit facility. 

In addition to these principal payments, the Company may on one or more occasions use another portion of ECF or the increase in Available Cash, as applicable, to repurchase debt at market prices ("Voluntary Prepayments") at a discount of face value, as defined in the respective senior secured credit facility (12.5% for SuperMedia, 20% for RHD, 30% for DMW, and 15% in 2013 and 2014 and 20% in 2015 and 2016 for DME) as determined following the end of each quarter. These Voluntary Prepayments must be made within 180 days after the date on which financial statements are delivered to the administrative agents. If a borrower does not make such Voluntary Prepayments within the 180-day period, the Company must make a prepayment at par at the end of the quarter during which such 180-day period expires.  

Any remaining portion of ECF or Available Cash, may be used at the Company's discretion, subject to certain restrictions specified in each senior secured credit facility agreement.

2015 and 2014 Principal Payments

During the three months ended March 31, 2015, the Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $38 million. Accelerated principal payments consist of prepayments of cash flow sweeps required under our senior secured credit facilities. These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $9 million, on the Company's senior subordinated notes.

During the three months ended March 31, 2014, the Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $74 million. These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $8 million, on the Company's senior subordinated notes.

On March 30, 2015, DMW commenced an offer to repurchase bank debt below par. On April 8, 2015, DMW repurchased and retired debt of $8 million utilizing cash of $7 million.

Debt Covenants

Each of the senior secured credit facilities described above contain certain covenants that, subject to exceptions, limit or restrict each borrower's incurrence of liens, investments (including acquisitions), sales of assets, indebtedness, payment of dividends, distributions and payments of certain indebtedness, sale and leaseback transactions, swap transactions, affiliate transactions, capital expenditures and mergers, liquidations and consolidations. For each senior secured credit facility, we are required to maintain compliance with a consolidated leverage ratio covenant and a consolidated interest coverage ratio covenant (the “Financial Covenants”). Each of the senior secured credit facilities also contain certain covenants that, subject to exceptions, limit or restrict Dex Media's incurrence of liens, indebtedness, ownership of assets, sales of assets, payment of dividends or distributions or modifications of the senior subordinated notes.

The senior subordinated notes contain certain covenants that, subject to certain exceptions, among other things, limit or restrict the Company's (and, in certain cases, the Company's restricted subsidiaries) incurrence of indebtedness, making of certain restricted payments, incurrence of liens, entry into transactions with affiliates, conduct of its business, mergers, and consolidation or sale of all or substantially all of its property.

As of March 31, 2015, the Company was in compliance with all of the Financial Covenants associated with its senior secured credit facilities and senior subordinated notes.

The Company evaluated compliance with its Financial Covenants for 2015 based on management’s most recent forecast and management believes that the Company will meet each of its Financial Covenant requirements in 2015.

For 2016, the Company believes it will meet all covenant requirements in its senior secured credit facilities and senior subordinated notes; however, the senior secured credit facilities mature on December 31, 2016 and the senior subordinated notes mature on January 29, 2017. Because the Company lacks the cash flow from operations to fully pay the senior secured credit facilities and senior subordinated notes at maturity, the Company will have to seek a restructuring, amendment or refinancing of its debt, or if necessary, pursue additional debt or equity offerings, in advance of the debt becoming due. The Company’s ability to restructure, amend or refinance its debt, or to issue additional debt or equity, will depend upon, among other things: (1) the condition of the capital markets at the time, which is beyond the Company’s control; (2) the Company’s future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory and other factors, many of which are beyond the Company’s control; and (3) the Company’s continued compliance with the terms and covenants in its senior secured credit facilities and senior subordinated notes that govern its debt.

Guarantees

Each of the senior secured credit facilities are separate facilities secured by the assets of each respective entity. There are no cross guarantees or collateralization provision among the entities, subject to certain exceptions. The Shared Guarantee and Collateral agreement has certain guarantee and collaterization provisions supporting SuperMedia, RHD, DME and DMW. However, an event of default by one of the entities could trigger a call on the applicable guarantor. An event of default by a guarantor on a guarantee obligation could be an event of default under the applicable credit facility, and if demand is made under the guarantee and the creditor accelerates the indebtedness, failure to satisfy such claims in full would in turn trigger a default under all of the other credit facilities. A subordinated guarantee also provides that SuperMedia, RHD, DME and DMW guarantee the obligations of the other such entities, including SuperMedia, provided that no claim may be made on such guarantee until the senior secured debt of such entity is satisfied and discharged.

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Intangible Assets

3 Months Ended

Mar. 31, 2015

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets

Intangible Assets

The following table sets forth the details of the Company's intangible assets at March 31, 2015 and December 31, 2014.

	At March 31, 2015						At December 31, 2014
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in millions)
Directory services agreements	$	666	$	342	$	324	$	666	$	307	$	359
Client relationships	924		693		231		924		649		275
Trademarks and domain names	222		102		120		222		91		131
Patented technologies	42		19		23		42		16		26
Advertising commitment	11		8		3		11		8		3
Total intangible assets	$	1,865	$	1,164	$	701	$	1,865	$	1,071	$	794

Amortization expense for intangible assets was $93 million and $147 million for the three months ended March 31, 2015 and 2014, respectively.

The annual amortization expense for intangible assets is estimated to be $373 million in 2015, $237 million in 2016, $103 million in 2017 and $81 million in 2018.

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Employee Benefits (Tables)

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of net periodic cost (income)

The following table sets forth the net periodic cost (income) related to the Company's pension plans for the three months ended March 31, 2015 and 2014.

	Pension
	Three Months Ended March 31,
	2015			2014
	(in millions)
Interest cost	$	7		$	7
Expected return on plan assets	(8		)	(9		)
Amortization of net loss	1			—
Settlement losses	1			—
Net periodic cost (income)	$	1		$	(2	)

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Earnings (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Earnings Per Share

The following table sets forth the calculation of the Company’s basic and diluted (loss) per share for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015			2014
	(in millions, except per share amounts)
Net (loss)	$	(59	)	$	(82	)
Basic and diluted weighted-average common shares outstanding	17.4			17.3
Basic and diluted (loss) per common share	$	(3.39	)	$	(4.74	)

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Income Taxes

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income taxes have been provided for in the accompanying consolidated financial statements on the basis of an estimated annual effective tax rate, adjusted for the items considered discrete for the periods presented.

The Company recorded income taxes based on an estimated annual effective tax rate, including the impact of discrete tax items, of approximately (2.2)% and 0.3% for 2015 and 2014, respectively. The 2015 estimated annual effective tax rate, inclusive of recorded discrete tax items, differs from the statutory rate primarily due to the increase in the recorded valuation allowances and permanently disallowed expenses (such as non-deductible interest), partially offset by state taxes. Excluding the impact of these items, our estimated annual effective tax rate, inclusive of discrete items, would approximate 35% for 2015. The estimated annual effective tax rate used for the three months ended March 31, 2014, inclusive of recorded discrete tax items, differs from the statutory rate primarily due to increases in the recorded valuation allowances.

Our estimated annual effective tax rate for 2015 may be subject to change in future periods. During the remainder of 2015, we anticipate recording an additional benefit associated with the lapsing of uncertain tax positions due to expiration of the statute of limitations in certain jurisdictions. Considering this benefit, our anticipated annual effective tax rate, including the impact of discrete tax items, would be approximately (0.7)%.

The actual annual effective tax rate of (3.6)% for the year ended December 31, 2014 differed from the statutory rate primarily due to an increase in recorded valuation allowances, changes in estimates for state taxes, changes in state tax laws and apportionment, and the lapsing of various uncertain tax positions due to the expiration of the statute of limitations in federal and various state jurisdictions.

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Employee Benefits

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Employee Benefits

Employee Benefits

Pension

The Company has non-contributory defined benefit pension plans that provide pension benefits to certain of its employees. The accounting for pension benefits reflects the recognition of these benefit costs over the employee’s approximate service period based on the terms of the plan and the investment and funding decisions made. The determination of the benefit obligation and the net periodic pension cost requires management to make actuarial assumptions, including the discount rate and expected return on plan assets. For these assumptions, management consults with actuaries, monitors plan provisions and demographics, and reviews public market data and general economic information. Changes in these assumptions can have a significant impact on the projected benefit obligation, funding requirement and net periodic benefit cost.

The pension plans include the Dex One Retirement Account, the Dex Media, Inc. Pension Plan, the SuperMedia Pension Plan for Management Employees and the SuperMedia Pension Plan for Collectively Bargained Employees. The Company also maintains two non-qualified pension plans for certain executives, the Dex One Pension Benefit Equalization Plan and the SuperMedia Excess Pension Plan. Pension assets related to the Company's qualified pension plans, which are held in master trusts and recorded on the Company's consolidated balance sheet, are valued in accordance with applicable accounting guidance on fair value measurements. No employees accrue future pension benefits under any of the pension plans.

Net Periodic Cost (Income)

The following table sets forth the net periodic cost (income) related to the Company's pension plans for the three months ended March 31, 2015 and 2014.

	Pension
	Three Months Ended March 31,
	2015			2014
	(in millions)
Interest cost	$	7		$	7
Expected return on plan assets	(8		)	(9		)
Amortization of net loss	1			—
Settlement losses	1			—
Net periodic cost (income)	$	1		$	(2	)

For the three months ended March 31, 2015, the Company recorded pension settlement losses of $1 million related to employees that received lump-sum distributions. These charges were recorded in accordance with applicable accounting guidance for settlements associated with defined benefit pension plans, which requires that settlement gains and losses be recorded once prescribed payment thresholds have been reached.

The Company made cash contributions to its qualified pension plans of $1 million during both the three months ended March 31, 2015 and 2014. We expect to make total contributions of approximately $4 million to our qualified pension plans in 2015.

Other Post-Employment Benefits

During the three months ended March 31, 2014, the Company recorded a $13 million credit to general and administrative expense in its consolidated statement of comprehensive (loss) associated with the settlement of plan amendments to its other post-employment benefits, which eliminated the Company’s obligation to provide a subsidy for retiree health care.

Savings Plans Benefits

The Company sponsors defined contribution savings plans to provide opportunities for eligible employees to save for retirement. The savings plans include the Dex Media, Inc. Savings Plan and the Dex One Restoration Plan. Substantially all of the Company's employees are eligible to participate in the plans. Participant contributions may be made on a pre-tax, after-tax, or Roth basis. Under the plans, a certain percentage of eligible employee contributions are matched with Company cash contributions that are allocated to the participants' current investment elections. The Company recognizes its contributions as savings plan expense based on its matching obligation to participating employees. The Company recorded total savings plan expense of $4 million for both the three months ended March 31, 2015 and 2014.

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Long-Term Incentive Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Long-Term Incentive Compensation

Long-Term Incentive Compensation

The Dex Media, Inc. Equity Incentive Plan, the Dex Media, Inc. Amended and Restated Long-Term Plan, the Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan and the Value Creation Program provide the opportunity to earn long term incentive compensation for non-management directors, designated eligible employees and other service providers, as applicable.

Stock-Based Compensation

The Dex Media, Inc. Equity Incentive Plan and the Dex Media, Inc. Amended and Restated Long-Term Incentive Plan

("Stock-Based Plans") provide for several forms of incentive awards to be granted to designated eligible employees, non-management directors, consultants and independent contractors providing services to the Company. The maximum number of shares of Dex Media common stock authorized for issuance under the Stock-Based Plans is 1,264,911. During 2015 and 2014, the Company granted equity awards under the Stock-Based Plans.

Restricted Stock

The Stock-Based Plans provide for grants of restricted stock.  These awards are classified as equity awards based on the criteria established by the applicable accounting rules for stock-based compensation. The fair value of the restricted stock awards was determined based on the price of Dex Media common stock on the date of grant.

No restricted stock awards have been granted during 2015. During 2014 and 2013, certain employees were granted restricted stock awards that cliff vest on December 31, 2015 and 2016, as applicable.  Grant award recipients would receive all regular cash dividends if the Company were to declare dividends.

All unvested shares of restricted stock will be forfeited upon the employee's termination of employment with the Company on or before the vesting dates, except that the Compensation and Benefits Committee of the Board of Directors, at its sole option and election, may permit the accelerated vesting of an award. In the event of the employee's termination of service by the Company without cause or by the employee for good reason within six months prior to or two years following a change in control, any unvested restricted stock will become fully vested on the date of such termination or the date of the change in control, if such termination occurs within six months prior to such change in control.

Changes in the Company's outstanding restricted stock awards were as follows for the three months ended March 31, 2015.

	Restricted  Stock Awards		Weighted-Average Grant Date Fair Value
Outstanding restricted stock awards at January 1, 2015	213,246		$	10.01
Granted	—		$	—
Vested	(7,491	)	$	10.59
Forfeitures	(4,295	)	$	10.28
Outstanding restricted stock awards at March 31, 2015	201,460		$	10.00

Stock Options

The Stock-Based Plans provide for grants of stock options. These awards are classified as equity awards based on the criteria established by the applicable accounting rules for stock-based compensation.

During 2015, the Company granted stock option awards that vest on December 31, 2017 and have a 10 year term from the date of grant.

In connection with Mr. Walsh’s appointment as President and Chief Executive Officer, on October 14, 2014, the Company granted Mr. Walsh stock options to purchase 271,000 shares of Dex Media common stock at an exercise price of $7.54, which vest on December 31, 2017. The stock options were granted on a stand-alone basis, outside the Stock-Based Plans, as inducements to employment.

During 2014 and 2013 certain employees were granted stock option awards that vest over four years in equal annual installments beginning on March 31 following the grant date and have a 10 year term from the date of grant. Other stock option awards granted in 2014 vest on December 31, 2017. The stock option awards granted on January 2, 2014 were priced at a premium, with an exercise price of $10.25 per share, while all other stock option awards had an exercise price equal to the market price of the Company's common stock on the date of grant.

A stock option holder may pay the option exercise price in cash, by delivering unrestricted shares to the Company having a value at the time of exercise equal to the exercise price, by a cashless broker-assisted exercise, by a combination of these methods or by any other method approved by the Compensation and Benefits Committee of the Company's Board of Directors. Stock option awards may not be re-priced without the approval of the Company's shareholders.

Any unvested portion of the stock option award will be forfeited upon the employee’s termination of employment with the Company for any reason before the date the option vests, except that the Compensation and Benefits Committee of the Company, at its sole option and election, may provide for the accelerated vesting of the stock option award. If the Company terminates the employee without cause or the employee resigns for good reason, then the employee is eligible to exercise the stock options that vested on or before the effective date of such termination or resignation. If the Company terminates the employee for cause, then the employee's stock options, whether or not vested, shall terminate immediately upon termination of employment. In the event the employee is terminated by the Company without cause or the employee resigns for good reason within six months prior to or two years following a change in control, any unvested portion of such employee's stock options shall become fully vested on the date of such termination or the date of the change in control, if such termination occurs within six months prior to such change in control.

The fair value of each stock option award is estimated on the grant date using the Black-Scholes option pricing model. The model incorporates assumptions regarding inputs as follows:

• Expected volatility is a blend of the implied volatility of Dex Media common stock as of the grant date, the historical volatility of Dex Media common stock over its history, and the historical volatility of Dex Media's peer companies;

• Expected life is calculated based on the average life of the vesting term and the contractual life of each award; and

• The risk-free interest rate is determined using the U.S. Treasury zero-coupon issue with a remaining term equal to the expected life of the option. 

Weighted average stock option fair values and assumptions for the three months ended March 31, 2015 are disclosed in the following table.

	Three Months Ended
	March 31, 2015
Weighted average fair value	$	4.50
Dividend yield	—
Volatility	55.35		%
Risk-free interest rate	1.67		%
Expected life (in years)	6.49

Changes in the Company's outstanding stock option awards were as follows for the three months ended March 31, 2015.

	Number of Stock Option Awards		Weighted- Average Exercise Price			Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding stock option awards at January 1, 2015	909,799		$		9.17	9.31	$	408,757
Granted	30,972		$	8.25		10.00	—
Exercises	—		$		—	—	—
Forfeitures/expirations	(1,000	)	$	6.30		7.00	—
Outstanding stock option awards at March 31, 2015	939,771		$		9.14	9.08	$	—

Stock-Based Compensation Expense

The following table sets forth stock-based compensation expense recognized for the three months ended March 31, 2015 and 2014. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive (loss).

	Three Months Ended March 31,
	2015		2014
	(in millions)
Stock-based compensation expense	$	1	$	1

As of March 31, 2015, unrecognized stock-based compensation expense related to the unvested portion of the Company's restricted stock and stock option awards was approximately $3 million, and is expected to be recognized over a weighted-average period of approximately 2.2 years.

Cash Long-Term Incentive Plan

The Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan provided to designated eligible employees the opportunity to earn an incentive cash payment based upon the achievement of the performance goals established for each of the measurement periods, with each of the respective fiscal years representing one measurement period. Following the introduction of the Value Creation Program in the fourth quarter of 2014, the Company did not grant any awards under this plan for the 2015 measurement period. These awards are classified as liability awards based on the criteria established by the applicable accounting rules. During the three months ended March 31, 2014 the Company recorded $2 million related to the Cash Long-Term Incentive Plan.

Value Creation Programs

Effective October 14, 2014, the Company adopted the Value Creation Program (“VCP”). The VCP enables the Company to retain and award designated executive employees by providing an opportunity to receive long-term compensation based on the net value creation in the Company. The bonus pool under the VCP represents 7% of the total “Value Creation” under the program and is comprised of 700,000 award units. To the extent not all of the units are awarded by the end of the performance period, the unallocated units will be allocated to the participating executives in proportion to the number of units awarded each executive. As of March 31, 2015, participating executives had been granted 645,000 units.

During 2015, the Company implemented the Value Creation Program Two ("VCP2"), to provide certain other employees with an opportunity to receive long-term compensation based on the same net value creation in the Company as defined in the VCP. As of March 31, 2015, participating employees had been granted 34,390 units. Each unit under the VCP2 is equivalent in value to a unit under the VCP. Under the VCP2, additional units can be awarded in future periods.

Value creation is measured as the net change over the performance period commencing October 14, 2014 and ending December 31, 2017 in the fair market value of the Company’s total invested capital, including equity securities, debt securities, and bank debt; plus cash dividends and cash payments (interest and principal) to debt, but reduced by any net value contributed from external sources, in each case as determined in the manner provided by the VCP. The VCP specifies that the fair market value of total invested capital at the beginning of the performance period (October 14, 2014) and the end of the performance period (December 31, 2017) is to be determined based on the average trading prices of equity securities, debt securities, and bank debt for the 20 days preceding each date. The fair market value of total invested capital at the beginning of the performance period was $2,290 million.

The fair value of the awards was estimated using a Monte Carlo simulation. A Monte Carlo simulation is a type of option pricing model. The assumptions used in the Monte Carlo simulation, when estimating the fair value of the awards, are summarized below. The expected volatility is based on the historical volatility of the Company's total invested capital over the period since the merger of the Company's predecessor companies, Dex One and SuperMedia.

	At October 14, 2014			At March 31, 2015
	($ in millions)
Value creation programs fair value	$	12		$	13
Expected volatility	11.93		%	11.42		%
Remaining contractual term	3.21 years			2.75 years
Expected dividend yield	0.00		%	0.00		%
Risk free rate	0.87		%	0.81		%

The fair value of the awards will be estimated each reporting period. The Company recognizes the fair value of the awards as compensation expense ratably over the remaining performance period. During the three months ended March 31, 2015, the Company recorded $1 million of compensation expense related to these awards. As of March 31, 2015, the aggregate unamortized compensation expense was $11 million, which will be recognized over the remaining 2.75 years of the performance measurement period.

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Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Litigation

The Company is subject to various lawsuits and other claims in the normal course of business. In addition, from time to time, the Company receives communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which the Company operates.

The Company establishes reserves for the estimated losses on specific contingent liabilities, for regulatory and legal actions where the Company deems a loss to be probable and the amount of the loss can be reasonably estimated. In other instances, the Company is not able to make a reasonable estimate of liability because of the uncertainties related to the outcome or the amount or range of potential loss. The Company does not expect that the ultimate resolution of pending regulatory and legal matters in future periods, including the matters described below will have a material adverse effect on its statements of comprehensive (loss).

On November 25, 2009, three retirees brought a putative class action lawsuit in the U.S. District Court for the Northern District of Texas, Dallas Division, against both the employee benefits committee and pension plans of Verizon and the employee benefits committee ("EBC") and pension plans of SuperMedia.  All three named plaintiffs are receiving the single life monthly annuity pension benefits. All complain that Verizon transferred them against their will from the Verizon pension plans to SuperMedia pension plans at or near the SuperMedia's spin-off from Verizon.  The complaint alleges that both the Verizon and SuperMedia defendants failed to provide requested plan documents, which would entitle the plaintiffs to statutory penalties under the Employee Retirement Income Securities Act ("ERISA"); that both the Verizon and SuperMedia defendants breached their fiduciary duty for refusal to disclose pension plan information; and other class action counts aimed solely at the Verizon defendants. The plaintiffs seek class action status, statutory penalties, damages and a reversal of the employee transfers.  The SuperMedia defendants filed their motion to dismiss the entire complaint on March 10, 2010. On October 18, 2010, the court ruled on the pending motion dismissing all the claims against the SuperMedia pension plans and all of the claims against SuperMedia's EBC relating to the production of documents and statutory penalties for failure to produce same. The only claims that remained against SuperMedia were procedural ERISA claims against SuperMedia's EBC. On November 1, 2010, SuperMedia's EBC filed its answer to the complaint. On November 4, 2010, SuperMedia's EBC filed a motion to dismiss one of the two remaining procedural ERISA claims against the EBC. Pursuant to an agreed order, the plaintiffs obtained class certification against the Verizon defendants. After obtaining permission from the court, the plaintiffs filed another amendment to the complaint, alleging a new count against SuperMedia's EBC. SuperMedia's EBC filed another motion to dismiss the amended complaint and filed a summary judgment motion before the deadline set by the scheduling order. On March 26, 2012, the court denied SuperMedia's EBC's motion to dismiss. On September 16, 2013, the court granted the defendants’ summary judgments, denied the plaintiffs’ summary judgment, and entered a take nothing judgment in favor of the SuperMedia EBC. Plaintiffs filed an appeal to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held on September 4, 2014. On October 14, 2014, the Court of Appeals affirmed the decision of the trial court. Plaintiffs filed a petition for a writ of certiorari to the U.S. Supreme Court on February 17, 2015. The Company plans to honor its indemnification obligations and vigorously defend the lawsuit on the defendants' behalf.

On December 10, 2009, a former employee with a history of litigation against SuperMedia, filed a putative class action lawsuit in the U.S. District Court for the Northern District of Texas, Dallas Division, against certain of SuperMedia's current and former officers, directors and members of SuperMedia's EBC. The complaint attempts to recover alleged losses to the various savings plans that were allegedly caused by the breach of fiduciary duties in violation of ERISA by the defendants in administrating the plans from November 17, 2006 to March 31, 2009. The complaint alleges that: (i) the defendants wrongfully allowed all the plans to invest in Idearc common stock, (ii) the defendants made material misrepresentations regarding SuperMedia's financial performance and condition, (iii) the defendants had divided loyalties, (iv) the defendants mismanaged the plan assets, and (v) certain defendants breached their duty to monitor and inform the EBC of required disclosures. The plaintiffs are seeking unspecified compensatory damages and reimbursement for litigation expenses. At this time, a class has not been certified. The plaintiffs filed a consolidated complaint. SuperMedia filed a motion to dismiss the entire complaint on June 22, 2010. On March 16, 2011, the court granted the SuperMedia defendants' motion to dismiss the entire complaint; however, the plaintiffs have repleaded their complaint. SuperMedia's defendants filed another motion to dismiss the new complaint. On March 15, 2012, the court granted the SuperMedia defendants' second motion dismissing the case with prejudice. The plaintiffs appealed the dismissal. On July 9, 2013, the U.S. Court of Appeals for the Fifth Circuit issued a decision affirming the dismissal of the trial court. On July 23, 2013, plaintiffs filed a petition to the Court of Appeals for a rehearing en banc which was denied. The plaintiffs filed a petition for a writ of certiorari to the United States Supreme Court. After the Supreme Court’s decision in Fifth Third Bancorp v. Dudenhoeffer, the court granted plaintiffs’ writ, vacated the Court of Appeals opinion and remanded the case to the Court of Appeals to rule in conformity with the Fifth Third opinion. Subsequently, the case was remanded to the trial court. On February 17, 2015, the plaintiffs filed an amended complaint. On April 1, 2015, SuperMedia filed a motion to dismiss the amended complaint. The Company plans to honor its indemnification obligations and vigorously defend the lawsuit on the defendants' behalf.

On March 29, 2013, a former unsecured note holder that was impacted by the bankruptcy of SuperMedia, in 2009, filed a notice and summons against Verizon Communications and the former chief financial officer ("CFO") of SuperMedia in the Supreme Court of the State of New York, New York County. The filing alleges that Verizon improperly formed SuperMedia prior to the spin-off by not having the requisite number of directors under Delaware law. The plaintiff alleges that since SuperMedia was improperly formed, the former CFO did not have the authority to execute the note on behalf of SuperMedia and accordingly both Verizon and the former CFO are liable for the unpaid principal and interest when the notes were impacted by the bankruptcy. The Company plans to honor its indemnification obligation and vigorously defend the lawsuit on the defendant's behalf.

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Additional Financial Information (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Apr. 30, 2013
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accounts payable	$ 14,000,000		$ 14,000,000
Accrued salaries and wages	36,000,000		48,000,000
Accrued severance	16,000,000		39,000,000
Accrued taxes	17,000,000		16,000,000
Accrued expenses	29,000,000		31,000,000
Customer refunds, advance payments and other	20,000,000		19,000,000
Total accounts payable and accrued liabilities	132,000,000		167,000,000
Business Acquisition [Line Items]
Interest expense, net	85,000,000	90,000,000
Non-cash interest expense	25,000,000	22,000,000
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility
Business Acquisition [Line Items]
Par value	1,035,000,000			1,442,000,000
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility
Business Acquisition [Line Items]
Par value	326,000,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Business Acquisition [Line Items]
Money market funds	41,000,000		41,000,000
Certificates of deposit	7,000,000		8,000,000
General and Administrative Expense
Business Acquisition [Line Items]
Credit to expense associated with settlement of liability under publishing agreement		10,000,000
Credit to expense associated with reduction of certain operating tax liabilities		5,000,000
General and Administrative Expense | Health Care and Life
Business Acquisition [Line Items]
Expense (credit) a result of plan amendments	$ 13,000,000	$ 13,000,000

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Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2015

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of Finite-Lived Intangible Assets

The following table sets forth the details of the Company's intangible assets at March 31, 2015 and December 31, 2014.

	At March 31, 2015						At December 31, 2014
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in millions)
Directory services agreements	$	666	$	342	$	324	$	666	$	307	$	359
Client relationships	924		693		231		924		649		275
Trademarks and domain names	222		102		120		222		91		131
Patented technologies	42		19		23		42		16		26
Advertising commitment	11		8		3		11		8		3
Total intangible assets	$	1,865	$	1,164	$	701	$	1,865	$	1,071	$	794

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Merger (Details) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended	3 Months Ended
	Apr. 30, 2013	Mar. 31, 2014
Business Acquisition [Line Items]
Net income excluded		$ 14
Super Media, Inc.
Business Acquisition [Line Items]
Ownership interest of pre-merger shareholders in combined company	40.00%
Deferred Revenue	386
Deferred Costs	122
Merger integration costs		18
Dex One
Business Acquisition [Line Items]
Ownership interest of pre-merger shareholders in combined company	60.00%
Employee Severance | Super Media, Inc.
Business Acquisition [Line Items]
Merger integration costs		10
Dex Media, Inc.
Business Acquisition [Line Items]
Deferred revenue not to be recognized	386	30
Deferred costs not to be recognized	$ 93
Super Media, Inc. | Newdex, Inc.
Business Acquisition [Line Items]
Conversion ratio (shares)	0.4386
Dex One | Newdex, Inc.
Business Acquisition [Line Items]
Conversion ratio (shares)	0.2

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Long-Term Incentive Compensation - Stock Options Valuation Assumptions (Details) (Stock Option, USD $)	3 Months Ended
	Mar. 31, 2015
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value	$ 4.50
Dividend yield	0.00%
Volatility	55.35%
Risk-free interest rate	1.67%
Expected life (in years)	6 years 5 months 27 days

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash Flows from Operating Activities
Net (loss)	$ (59)	$ (82)
Reconciliation of net (loss) to net cash provided by operating activities:
Depreciation and amortization	106	161
Provision for deferred income taxes	(3)	(3)
Provision for bad debts	5	6
Non-cash interest expense	25	22
Stock-based compensation expense	1	1
Employee retiree benefits	1	(15)
Changes in assets and liabilities:
Accounts receivable	4	37
Deferred directory costs	11	5
Other current assets	2	5
Accounts payable and accrued liabilities	(47)	(40)
Other items, net	0	3
Net cash provided by operating activities	46	100
Cash Flows from Investing Activities
Additions to fixed assets and capitalized software	(3)	(3)
Net cash (used in) investing activities	(3)	(3)
Cash Flows from Financing Activities
Debt repayments	(38)	(74)
Debt issuance costs and other financing items, net	(5)	0
Net cash (used in) financing activities	(43)	(74)
Increase in cash and cash equivalents	0	23
Cash and cash equivalents, beginning of year	171	156
Cash and cash equivalents, end of period	171	179
Supplemental Information
Cash interest on debt	66	74
Cash income taxes, net	$ 3	$ 0

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Additional Financial Information

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Financial Information

Additional Financial Information

Consolidated Statements of Comprehensive (Loss)

General and administrative expense

The Company’s general and administrative expense for the three months ended March 31, 2014 includes certain one-time credits to expense. The Company recorded a $13 million credit to expense associated with plan amendments to its other post-employment benefits, which eliminated the Company’s obligation to provide a subsidy for retiree health care. The Company also recorded a $10 million credit to expense associated with the settlement of a liability under a publishing agreement. Additionally, the Company recorded $5 million in credits to expense associated with the reduction of certain operating tax liabilities.

Depreciation and amortization

The following tables set forth the components of the Company's depreciation and amortization expense for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015		2014
	(in millions)
Amortization of intangible assets	$	93	$	147
Amortization of capitalized software	7		10
Depreciation of fixed assets	6		4
Total depreciation and amortization	$	106	$	161

Interest expense, net

The Company recorded interest expense, net of $85 million and $90 million for the three months ended March 31, 2015 and 2014, respectively. Interest expense, net consists primarily of interest expense associated with our debt obligations, non-cash interest expense associated with the amortization of debt fair value adjustments, amortization of debt discounts, non-cash interest expense associated with payment-in-kind interest related to our senior subordinated notes, and non-cash interest expense associated with the amortization of deferred financing cost, offset by interest income. Non-cash interest expense was $25 million for the three months ended March 31, 2015, compared to $22 million for the three months ended March 31, 2014.

Other comprehensive (loss)

The following table sets forth the components of the Company's comprehensive (loss) adjustments for pension and other post-employment benefits for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015								2014
	Gross		Taxes			Net			Gross			Taxes			Net
	(in millions)
Net (loss)						$	(59	)							$	(82	)
Adjustments for pension and other post-employment benefits:
Accumulated actuarial gains (losses) of benefit plans	$	2	$	(1	)	1			$	16		$	(6	)	10
Reclassifications included in net (loss):
Amortization of actuarial losses	1		—			1			—			—			—
Settlement losses	1		—			1			—			—			—
Settlement of plan amendments	—		—			—			(13		)	5			(8		)
Total reclassifications included in net (loss)	2		—			2			(13		)	5			(8		)
Adjustments for pension and other post-employment benefits	$	4	$	(1	)	3			$	3		$	(1	)	2
Total comprehensive (loss)						$	(56	)							$	(80	)

The following table sets forth the balance of the Company's accumulated other comprehensive (loss). All balances in accumulated other comprehensive (loss) are related to pension benefits.

	Gross			Taxes			Net
	(in millions)
Accumulated other comprehensive (loss) - December 31, 2014	$	(82	)	$	(3	)	$	(85	)
Adjustments for pension benefits	4			(1		)	3
Accumulated other comprehensive (loss) - March 31, 2015	$	(78	)	$	(4	)	$	(82	)

Balance Sheet

Accounts payable and accrued liabilities

The following table sets forth additional financial information related to the Company's accounts payable and accrued liabilities at March 31, 2015 and December 31, 2014.

	At March 31, 2015		At December 31, 2014
	(in millions)
Accounts payable	$	14	$	14
Accrued salaries and wages	36		48
Accrued severance	16		39
Accrued taxes	17		16
Accrued expenses	29		31
Customer refunds, advance payments and other	20		19
Total accounts payable and accrued liabilities	$	132	$	167

Fair Value of Financial Instruments

The Company's financial assets or liabilities required to be measured at fair value on a recurring basis include cash and cash equivalents held in money market funds of $41 million as of March 31, 2015 and December 31, 2014. These money market funds have been recorded at fair value using Level 2 inputs.  The Company also had $7 million and $8 million held in certificates of deposit and mutual funds as of March 31, 2015 and December 31, 2014, respectively, that serve as collateral against letters of credit held primarily with our insurance carriers.  These certificates of deposit and mutual funds are classified as prepaid expenses and other on the Company's consolidated balance sheets and are valued using Level 2 inputs. The fair value of accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. The fair values of debt instruments are determined based on the observable market data of a private exchange.

The following table sets forth the carrying amount and fair value using Level 2 inputs of the Company’s debt obligations at March 31, 2015 and December 31, 2014.

	At March 31, 2015				At December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Senior secured credit facilities
SuperMedia Inc.	$	852	$	855	$	841	$	829
R.H. Donnelly Inc.	605		452		612		435
Dex Media East, Inc.	343		276		354		281
Dex Media West, Inc.	321		274		337		293
Senior subordinated notes	261		115		252		112
Total debt obligations	$	2,382	$	1,972	$	2,396	$	1,950

The par value of SuperMedia's debt obligation at March 31, 2015 was $1,035 million. The par value of Dex Media West, Inc. ("DMW") debt obligations at March 31, 2015 was $326 million.

For additional information on our outstanding debt obligations, see Note 7 - Long-Term Debt.

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Business Transformation Costs (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
Incurred cost		$ 52
Restructuring Reserve [Roll Forward]
Restructuring Reserve	38
Expense	9
Payments	(28)
Restructuring Reserve	19	19
Employee Severance
Restructuring Reserve [Roll Forward]
Restructuring Reserve	38
Expense	0
Payments	(23)
Restructuring Reserve	15	15
Lease Costs
Restructuring Reserve [Roll Forward]
Restructuring Reserve	0
Expense	5
Payments	(1)
Restructuring Reserve	4	4
System Consolidation Costs
Restructuring Reserve [Roll Forward]
Restructuring Reserve	0
Expense	3
Payments	(3)
Restructuring Reserve	0	0
Other Restructuring
Restructuring Reserve [Roll Forward]
Restructuring Reserve	0
Expense	1
Payments	(1)
Restructuring Reserve	0	0
Minimum
Restructuring Cost and Reserve [Line Items]
Expected costs	70	70
Maximum
Restructuring Cost and Reserve [Line Items]
Expected costs	$ 100	$ 100

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Employee Benefits (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Components of net periodic cost (income)
Savings plan expenses	$ 4	$ 4
Pension
Components of net periodic cost (income)
Interest cost	7	7
Expected return on plan assets	(8)	(9)
Amortization of net loss	1	0
Settlement losses	1	0
Net periodic cost (income)	1	(2)
Non Qualified Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Number of pension plans	2
Qualified Pension Plan
Components of net periodic cost (income)
Cash contributions	1	1
Estimated employer contributions in current year	4
Health Care and Life | General and Administrative Expense
Components of net periodic cost (income)
Credit a result of plan amendments	$ 13	$ 13

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Additional Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Depreciation and amortization

The following tables set forth the components of the Company's depreciation and amortization expense for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015		2014
	(in millions)
Amortization of intangible assets	$	93	$	147
Amortization of capitalized software	7		10
Depreciation of fixed assets	6		4
Total depreciation and amortization	$	106	$	161

Schedule of comprehensive income adjustments for pension and post-employment benefits

The following table sets forth the components of the Company's comprehensive (loss) adjustments for pension and other post-employment benefits for the three months ended March 31, 2015 and 2014.

	Three Months Ended March 31,
	2015								2014
	Gross		Taxes			Net			Gross			Taxes			Net
	(in millions)
Net (loss)						$	(59	)							$	(82	)
Adjustments for pension and other post-employment benefits:
Accumulated actuarial gains (losses) of benefit plans	$	2	$	(1	)	1			$	16		$	(6	)	10
Reclassifications included in net (loss):
Amortization of actuarial losses	1		—			1			—			—			—
Settlement losses	1		—			1			—			—			—
Settlement of plan amendments	—		—			—			(13		)	5			(8		)
Total reclassifications included in net (loss)	2		—			2			(13		)	5			(8		)
Adjustments for pension and other post-employment benefits	$	4	$	(1	)	3			$	3		$	(1	)	2
Total comprehensive (loss)						$	(56	)							$	(80	)

Schedule of accumulated other comprehensive income

The following table sets forth the balance of the Company's accumulated other comprehensive (loss). All balances in accumulated other comprehensive (loss) are related to pension benefits.

	Gross			Taxes			Net
	(in millions)
Accumulated other comprehensive (loss) - December 31, 2014	$	(82	)	$	(3	)	$	(85	)
Adjustments for pension benefits	4			(1		)	3
Accumulated other comprehensive (loss) - March 31, 2015	$	(78	)	$	(4	)	$	(82	)

Schedule of additional information on the Company's accounts payable and accrued liabilities

The following table sets forth additional financial information related to the Company's accounts payable and accrued liabilities at March 31, 2015 and December 31, 2014.

	At March 31, 2015		At December 31, 2014
	(in millions)
Accounts payable	$	14	$	14
Accrued salaries and wages	36		48
Accrued severance	16		39
Accrued taxes	17		16
Accrued expenses	29		31
Customer refunds, advance payments and other	20		19
Total accounts payable and accrued liabilities	$	132	$	167

Schedule of carrying amount and fair value for total debt obligations

The following table sets forth the carrying amount and fair value using Level 2 inputs of the Company’s debt obligations at March 31, 2015 and December 31, 2014.

	At March 31, 2015				At December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in millions)
Senior secured credit facilities
SuperMedia Inc.	$	852	$	855	$	841	$	829
R.H. Donnelly Inc.	605		452		612		435
Dex Media East, Inc.	343		276		354		281
Dex Media West, Inc.	321		274		337		293
Senior subordinated notes	261		115		252		112
Total debt obligations	$	2,382	$	1,972	$	2,396	$	1,950