Benefit Plans

At December 31, 2011, the Company has two defined benefit pension plans (the Dex One Retirement Plan and the Dex Media, Inc. Pension Plan, defined below), which participate in the Dex One Corporation Retirement Account Master Trust (“Master Trust”), and two defined contribution plans (the Dex One 401(k) Savings Plan and the Dex Media, Inc. Employee Savings Plan). A summary of each of these plans is provided below. The Business.com, Inc. 401(k) Plan was merged with and into the Dex One 401(k) Savings Plan effective February 1, 2011. During 2011, former employees of the Company were able to participate in two postretirement plans (the Dex One Group Benefit Plan and the Dex Media Group Benefit Plan). Effective January 1, 2011, participants who elected to continue coverage under the Dex One Group Benefit Plan became responsible for making their individual premium payments associated with this plan. Although the Dex One Group Benefit Plan remains active for these participants, the Company does not have any future benefit obligation associated with this plan. The Company terminated the Dex Media Group Benefit Plan effective January 1, 2012 and therefore we do not have any future benefit obligation associated with this plan.

Dex One Retirement Plan. The Dex One cash balance defined benefit pension plan (the “Dex One Retirement Plan” formerly the "RHD Retirement Plan") covers substantially all legacy Dex One employees with at least one year of service. The benefits to be paid to employees are based on age, years of service and a percentage of total annual compensation. The percentage of compensation allocated to a retirement account ranges from 3.0% to 12.5% depending on age and years of service (“cash balance benefit”). Benefits for certain employees who were participants in the predecessor The Dun & Bradstreet Corporation (“D&B”) defined benefit pension plan are also determined based on the participant’s average compensation and years of service (“final average pay benefit”) and benefits to be paid will equal the greater of the final average pay benefit or the cash balance benefit. Annual pension costs are determined using the projected unit credit actuarial cost method. Our funding policy is to contribute an amount at least equal to the minimum legal funding requirement. The Company was required to make contributions of $3.1 million and $1.0 million to the Dex One Retirement Plan during the year ended December 31, 2011 and eleven months ended December 31, 2010, respectively. The Predecessor Company was not required to make contributions to the Dex One Retirement Plan during the one month ended January 31, 2010. The Predecessor Company was required to make contributions of $10.2 million to the Dex One Retirement Plan during the year ended December 31, 2009. The underlying pension plan assets are invested in diversified portfolios consisting primarily of equity and debt securities. A measurement date of December 31 is used for all of our plan assets.

We also have an unfunded non-qualified defined benefit pension plan, the Pension Benefit Equalization Plan (“PBEP”), which covers senior executives and certain key employees. Benefits are based on years of service and compensation (including compensation not permitted to be taken into account under the previously mentioned defined benefit pension plan). The Company made contributions of $0.6 million and $1.9 million to the PBEP during the year ended December 31, 2011 and eleven months ended December 31, 2010, respectively. The Predecessor Company did not make any contributions to the PBEP during the one month ended January 31, 2010 and made contributions of $0.6 million during the year ended December 31, 2009.

Dex Media Pension Plan. We have a noncontributory defined benefit pension plan covering substantially all non-union and union employees within Dex Media (the “Dex Media Pension Plan”). Annual pension costs are determined using the projected unit credit actuarial cost method. Our funding policy is to contribute an amount at least equal to the minimum legal funding requirement. The Company was required to make contributions of $13.6 million and $8.8 million to the Dex Media Pension Plan during the year ended December 31, 2011 and eleven months ended December 31, 2010, respectively. The Predecessor Company was not required to make contributions to the Dex Media Pension Plan during the one month ended January 31, 2010. The Predecessor Company was required to make contributions of $39.8 million to the Dex Media Pension Plan during the year ended December 31, 2009. The underlying pension plan assets are invested in diversified portfolios consisting primarily of equity and debt securities. A measurement date of December 31 is used for all of our plan assets.

The Company has frozen the Dex Media Pension Plan covering CWA and IBEW represented employees and the Dex One Retirement Plan and Dex Media Pension Plan covering all non-union employees. In connection with the freeze, all pension plan benefit accruals for CWA and IBEW plan participants ceased as of December 31, 2009 and all pension plan benefit accruals for non-union plan participants ceased as of December 31, 2008, however, all plan balances remained intact and interest credits on participant account balances under an account balance formula, as well as service credits for vesting and retirement eligibility, continue in accordance with the terms of the plans. In addition, supplemental transition credits have been provided to certain plan participants nearing retirement who would otherwise lose a portion of their anticipated pension benefit at age 65 as a result of freezing the current plans. Similar supplemental transition credits will be provided to certain plan participants who were grandfathered under a final average pay formula when the defined benefit plans were previously converted from traditional pension plans to cash balance plans.

Savings Plans. Under each of our savings plans, we contribute 100% for each dollar contributed by participating employees, up to a maximum of 6% of each participating employee’s salary, including bonus and commissions, and contributions made by the Company are fully vested for participants who have completed one year of service with the Company. The Company made contributions to the Dex One 401(k) Savings Plan of $9.0 million and $8.7 million during the year ended December 31, 2011 and eleven months ended December 31, 2010, respectively, the Dex Media, Inc. Employee Savings Plan of $2.4 million and $4.7 million during the year ended December 31, 2011 and eleven months ended December 31, 2010, respectively, and the Business.com, Inc. 401(k) Plan of $0.3 million during the eleven months ended December 31, 2010. No contributions were made to the Business.com, Inc. 401(k) Plan during the year ended December 31, 2011. Contributions made by the Predecessor Company to the Dex One 401(k) Savings Plan were $0.5 million and $8.8 million for the one month ended January 31, 2010 and year ended December 31, 2009, respectively. Contributions made by the Predecessor Company to the Dex Media, Inc. Employee Savings Plan were $0.4 million and $2.3 million for the one month ended January 31, 2010 and year ended December 31, 2009, respectively. Contributions made by the Predecessor Company to the Business.com, Inc. 401(k) Plan were $0.1 million and $0.5 million for the one month ended January 31, 2010 and year ended December 31, 2009, respectively.

The Company maintains the Dex One 401(k) Restoration Plan for those employees with compensation in excess of the IRS annual limits. Effective January 1, 2011, the Dex One 401(k) Restoration Plan was amended to eliminate matching credits.

Other Benefits Information - Union Employees


•	All access to retiree health care and life insurance benefits has been eliminated for IBEW represented employees retiring after May 8, 2009 and for CWA represented employees retiring after October 2, 2009;


•	Retiree life insurance benefits have been eliminated effective January 1, 2010;


•	The two-year phase out of subsidized retiree health care benefits commenced January 1, 2010; and


•	Effective January 1, 2012, retiree health care benefits will be eliminated for all retirees.

Other Benefits Information – Non-Union Employees


•	All non-subsidized access to retiree health care and life insurance benefits were eliminated effective January 1, 2009;


•	Subsidized retiree health care benefits for any Medicare-eligible retirees were eliminated effective January 1, 2009; and

•

The three-year phase out of subsidized retiree health care benefits commenced January 1, 2009 (with non-union retiree health care benefits terminating December 31, 2011, except for continued non-subsidized access to retiree benefits for retirees enrolled as of December 31, 2008). With respect to the phase out of subsidized retiree health care benefits, if an eligible retiree becomes Medicare-eligible at any point in time during the phase out process noted above, such retiree will no longer be eligible for retiree health care coverage.

During the second quarter of 2010, we recognized a one-time curtailment gain of $3.8 million associated with the departure of the Company’s former Chief Executive Officer, which is included in general and administrative expenses on the consolidated statement of operations for the eleven months ended December 31, 2010.

As a result of implementing the freeze on the Dex Media Pension Plan covering CWA and IBEW represented employees, the Predecessor Company recognized a one-time net curtailment gain of $4.2 million during the year ended December 31, 2009, which was entirely offset by losses incurred on plan assets and previously unrecognized prior service costs that had been charged to accumulated other comprehensive loss. As a result of eliminating retiree health care and life insurance benefits for CWA and IBEW represented employees, the Predecessor Company recognized a one-time curtailment gain of $52.0 million, which is included in general and administrative expenses on the consolidated statement of operations for the year ended December 31, 2009. As a result of these actions, we will no longer incur funding expenses and administrative costs associated with the retiree health care and life insurance plans for CWA and IBEW represented employees.

Benefit Obligation and Funded Status

A summary of the funded status of the Company’s benefit plans at December 31, 2011 and 2010 is as follows:



	Pension Plans						Postretirement Plans
	December 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010
Change in benefit obligation
Benefit obligation, January 1, 2011	$	257,245					$	1,040
Benefit obligation, February 1, 2010				$	250,671					$	3,475
Interest cost	12,707			12,432			26			107
Actuarial loss (gain)	11,269			19,133			(727		)	(675		)
Plan curtailments	—			(3,754		)	—			—
Benefits paid	(7,769		)	(19,910		)	(339		)	(1,867		)
Plan settlements	(24,218		)	(1,327		)	—			—
Benefit obligation, end of year	$	249,234		$	257,245		$	—		$	1,040

Change in plan assets
Fair value of plan assets, January 1, 2011	$	187,327					$	—
Fair value of plan assets, February 1, 2010				$	170,859					$	—
Return on plan assets	1,689			21,664			—			—
Employer contributions	17,329			9,770			339			1,867
Benefits paid	(7,769		)	(14,966		)	(339		)	(1,867		)
Plan settlements	(24,218		)	—			—			—
Fair value of plan assets, end of year	$	174,358		$	187,327		$	—		$	—
Funded status at end of year	$	(74,876	)	$	(69,918	)	$	—		$	(1,040	)

Net amounts recognized in the Company’s consolidated balance sheet at December 31, 2011 and 2010 were as follows:



	Pension Plans						Postretirement Plans
	December 31, 2011			December 31, 2010			December 31, 2011		December 31, 2010
Current liabilities	$	(541	)	$	(357	)	$	—	$	(1,040	)
Non-current liabilities	(74,335		)	(69,561		)	—		—
Net amount recognized	$	(74,876	)	$	(69,918	)	$	—	$	(1,040	)

The accumulated benefit obligation for all qualified defined benefit pension plans of the Company was $249.2 million and $257.2 million at December 31, 2011 and 2010, respectively.

Components of Net Periodic Benefit Expense (Income)

The net periodic benefit expense (income) of the Company’s pension plans for the year ended December 31, 2011 and eleven months ended December 31, 2010 and the Predecessor Company’s pension plans for the one month ended January 31, 2010 and year ended December 31, 2009 was as follows:



	Successor Company						Predecessor Company
	Year Ended December 31, 2011			Eleven Months Ended December 31, 2010			One Month Ended January 31, 2010			Year Ended December 31, 2009
Service cost	$	—		$	—		$	—		$	4,394
Interest cost	12,707			12,432			1,124			14,481
Expected return on plan assets	(14,500		)	(12,201		)	(1,385		)	(17,899		)
Amortization of unrecognized prior service cost	—			—			81			975
Settlement loss	2,748			17			—			6,083
Curtailment gain	—			(3,754		)	—			—
Amortization of unrecognized net loss (gain)	2			—			122			(190		)
Net periodic benefit expense (income)	$	957		$	(3,506	)	$	(58	)	$	7,844

The net periodic benefit income of the Company’s postretirement plans for the year ended December 31, 2011 and eleven months ended December 31, 2010 and the Predecessor Company’s postretirement plans for the one month ended January 31, 2010 and year ended December 31, 2009 was as follows:



	Successor Company						Predecessor Company
	Year Ended December 31, 2011			Eleven Months Ended December 31, 2010			One Month Ended January 31, 2010			Year Ended December 31, 2009
Service cost	$	—		$	—		$	—		$	647
Interest cost	26			107			10			2,608
Amortization of unrecognized prior service credit	—			—			—			(6		)
Curtailment gain	—			—			—			(52,019		)
Amortization of unrecognized net gain	(1,111		)	(291		)	(21		)	(608		)
Net periodic benefit income	$	(1,085	)	$	(184	)	$	(11	)	$	(49,378	)

In accordance with fresh start accounting and reporting, unamortized amounts previously charged to accumulated other comprehensive loss of $44.7 million were eliminated on the Fresh Start Reporting Date.

As of December 31, 2011, there is approximately $1.0 million of previously unrecognized actuarial losses in accumulated other comprehensive loss expected to be recognized as net periodic benefit expense in 2012.

Amounts recognized in accumulated other comprehensive loss for the Company at December 31, 2011 and 2010 consist of the following:



	Pension Plans				Postretirement Plans
	December 31, 2011		December 31, 2010		December 31, 2011		December 31, 2010

Net actuarial loss (gain)	$	21,330	$	9,653	$	1,111	$	(384	)

Assumptions

In conjunction with our emergence from Chapter 11, the Predecessor Company performed a remeasurement of its pension and postretirement obligations as of January 31, 2010. The following assumptions were used in determining the benefit obligations for the Company’s pension plans and postretirement plans for the year ended December 31, 2011 and eleven months ended December 31, 2010 and the Predecessor Company’s pension plans and postretirement plans for the one month ended January 31, 2010.



	Successor Company		Predecessor Company
	Year Ended December 31, 2011	Eleven Months Ended December 31, 2010	One Month Ended January 31, 2010
Weighted average discount rates:
Dex One Retirement Plan	4.51%	5.30%	5.70%
Dex One Postretirement Plan	—	5.30%	5.70%
Dex Media Pension Plan	4.38%	5.06%	5.70%
Dex Media Postretirement Plan	4.95%	5.06%	5.70%

The discount rate reflects the current rate at which the pension and postretirement obligations could effectively be settled at the end of the year. For the year ended December 31, 2011, eleven months ended December 31, 2010, one month ended January 31, 2010 and year ended December 31, 2009, the Company and the Predecessor Company utilized an outsource provider’s yield curve to determine the appropriate discount rate for each of the defined benefit pension plans based on the individual plans’ expected future cash flows. Since the pension plans have been frozen, no rate of increase in future compensation was utilized to calculate the benefit obligations of the Company at December 31, 2011 and 2010.

The ratification of the freeze on the Predecessor Company’s defined benefit plans on November 6, 2009 and June 12, 2009 (“Ratification Dates”) resulted in curtailments. These curtailments required re-measurement of the plans’ liabilities and net periodic benefit expense at December 31, 2009 and July 1, 2009.

On December 31, 2011 and 2010 and May 31, 2009, settlements of Dex One’s PBEP occurred as a result of restructuring actions. At that time, lump sum payments to participants exceeded the sum of the service cost plus interest cost components of the net periodic benefit expense for the year. These settlements resulted in recognition of an actuarial loss of less than $0.1 million for both the year ended December 31, 2011 and eleven months ended December 31, 2010, respectively, and an actuarial gain of less than $0.1 million for the year ended December 31, 2009. Pension expense for Dex One’s PBEP was recomputed based on assumptions as of December 31, 2011, resulting in a decrease in the discount rate from 5.70% at December 31, 2010 to 5.30%. Pension expense for Dex One’s PBEP was recomputed based on assumptions as of December 31, 2010, resulting in an decrease in the discount rate from 6.87% at December 31, 2009 to 5.70%. Pension expense for Dex One’s PBEP was recomputed based on assumptions as of June 1, 2009, resulting in an increase in the discount rate from 5.87% to 6.87%.

On December 31, 2011, settlements of the Dex One Retirement Plan and Dex Media Pension Plan occurred as a result of restructuring actions. On May 31, 2011, December 31, 2009, June 1, 2009 and April 1, 2009, settlements of the Dex Media Pension Plan occurred as a result of restructuring actions. At that time, lump sum payments to participants exceeded the sum of the service cost plus interest cost components of the net periodic benefit expense for the year. These settlements resulted in the recognition of actuarial losses of $2.7 million and $6.1 million for the years ended December 31, 2011 and 2009, respectively. Pension expense for the Dex One Retirement Plan was recomputed based on assumptions as of December 31, 2011, resulting in a decrease in the discount rate from 5.70% at December 31, 2010 to 5.30%. Pension expense for the Dex Media Pension Plan was recomputed based on assumptions as of December 31, 2011, resulting in a decrease in the discount rate from 5.06% at May 31, 2011 to 4.95%. Pension expense for the Dex Media Pension Plan was recomputed based on assumptions as of May 31, 2011, resulting in a decrease in the discount rate from 5.70% at December 31, 2010 to 5.06%. Pension expense in 2009 was recomputed based on assumptions as of June 1, 2009 and December 31, 2009, resulting in an increase in the discount rate from 5.87% to 6.87%.

The following assumptions were used in determining the Company’s net periodic benefit expense (income) for the Dex One Retirement Plan and Dex Media Pension Plan:



	Dex One Retirement Plan		Dex Media Pension Plan
	Year Ended December 31, 2011	Eleven Months Ended December 31, 2010	June 1, 2011 through December 31, 2011	January 1, 2011 through May 31, 2011	Eleven Months Ended December 31, 2010
Weighted average discount rate	5.30%	5.70%	4.95%	5.06%	5.70%
Expected return on plan assets	8.00%	8.00%	8.00%	8.00%	8.00%

The following assumptions were used in determining the Predecessor Company’s net periodic benefit expense (income) for the Dex One Retirement Plan and Dex Media Pension Plan:



	Dex One Retirement Plan		Dex Media Pension Plan
	One Month Ended January 31, 2010	Year Ended December 31, 2009	One Month Ended January 31, 2010	June 1, 2009 through December 31, 2009	January 1, 2009 through May 31, 2009
Weighted average discount rate	5.70%	5.87%	5.70%	6.87%	5.87%
Rate of increase in future compensation	—	—	—	3.66%	3.66%
Expected return on plan assets	8.00%	8.00%	8.00%	8.00%	8.00%

The following assumptions were used in determining the Company’s net periodic benefit expense for the Dex One postretirement plan and Dex Media postretirement plan:



	Dex One Postretirement Plan		Dex Media Postretirement Plan
	Year Ended December 31, 2011	Eleven Months Ended December 31, 2010	Year Ended December 31, 2011	Eleven Months Ended December 31, 2010
Weighted average discount rate	—	5.70%	5.06%	5.70%

The elimination of the retiree health care and life insurance benefits on the Ratification Dates resulted in curtailments. These curtailments required re-measurement of the postretirement plans’ liabilities and net periodic benefit expense at June 1, 2009 and December 31, 2009. The following assumptions were used in determining the Predecessor Company’s net periodic benefit expense for the Dex One postretirement plan and Dex Media postretirement plan:



	Dex One Postretirement Plan		Dex Media Postretirement Plan
	One Month Ended January 31, 2010	Year Ended December 31, 2009	One Month Ended January 31, 2010	June 1, 2009 through December 31, 2009	January 1, 2009 through May 31, 2009
Weighted average discount rate	5.70%	5.87%	5.70%	6.87%	5.87%

Healthcare cost trend rate assumptions are no longer required since the Company has terminated its post-retirement plans. The following table reflects assumed healthcare cost trend rates used in determining the net periodic benefit expense and benefit obligations for the Predecessor Company’s postretirement plans prior to termination:



	Year Ended December 31, 2009
Healthcare cost trend rate assumed for next year:
Under 65	9.4%
65 and older	9.4%
Rate to which the cost trend rate is assumed to decline:
Under 65	5.0%
65 and older	5.0%
Year ultimate trend rate is reached	2015

Plan Assets

The fair value of the assets held in the Master Trust at December 31, 2011 and 2010, by asset category, is as follows:



	Fair Value Measurements at December 31, 2011
			Quoted Prices in Active Markets for Identical Assets		Using Significant Other Observable Inputs
	Total		(Level 1)		(Level 2)
Cash	$	15	$	15	$	—
U.S. Government securities (a)	18,686		—		18,686
Common/collective trusts (b)	66,188		—		66,188
Corporate debt (c)	21,146		—		21,146
Corporate stock (d)	18,476		18,476		—
Registered investment companies (e)	19,631		19,631		—
Real estate investment trust (f)	127		127		—
Credit default swaps and futures (g)	1,161		—		1,161
Collective Fund – Group Trust (h)	28,928		—		28,928
Total	$	174,358	$	38,249	$	136,109



	Fair Value Measurements at December 31, 2010
			Quoted Prices in Active Markets for Identical Assets		Using Significant Other Observable Inputs
	Total		(Level 1)		(Level 2)
Cash	$	460	$	460	$	—
U.S. Government securities (a)	23,210		—		23,210
Common/collective trusts (b)	67,375		—		67,375
Corporate debt (c)	19,736		—		19,736
Corporate stock (d)	19,720		19,720		—
Registered investment companies (e)	29,860		29,860		—
Real estate investment trust (f)	338		338		—
Credit default swaps and futures (g)	1,149		—		1,149
Collective Fund – Group Trust (h)	25,479		—		25,479
Total	$	187,327	$	50,378	$	136,949


(a)	This category includes investments in U.S. Government bonds, government mortgage-backed securities, index-linked government bonds, guaranteed commercial paper, short-term treasury bills and notes. Fair value for these assets is determined using a bid evaluation process of observable, market based inputs effective as of the last business day of the plan year.

(b)

This category includes investments in two common/collective funds of which 82% is invested in stocks comprising the Russell 1000 equity index and the remaining 18% is comprised of short-term investments at December 31, 2011 and 89% is invested in stocks comprising the Russell 1000 equity index and the remaining 11% is comprised of short-term investments at December 31, 2010. Fair value for these assets is calculated based upon a compilation of observable market information.


(c)	This category includes investments in corporate bonds, commercial mortgage-backed and asset-backed securities, collateralized mortgage obligations and commercial paper. Fair value for these assets is determined using a bid evaluation process of observable, market based inputs effective as of the last business day of the plan year.


(d)	This category includes investments in small cap stocks across diverse industries. Fair value for these assets is determined using quoted market prices on a recognized securities exchange at the last reported trading price on the last business day of the plan year.


(e)	This category is comprised of one mutual fund that invests in intermediate term fixed income instruments such as treasuries and high grade corporate bonds. Fair value for these assets is determined using quoted market prices on a recognized securities exchange at the last reported trading price on the last business day of the plan year.


(f)	This category is comprised of a healthcare real estate investment trust. Fair value for these assets is determined based on exchange traded market prices.


(g)	This category includes investments in a combination of 5, 10 and 20 year U.S. Treasury bond futures, equity index futures and credit default swaps. Fair value for these assets is determined based on either settlement prices, prices on a recognized securities exchange or a mid/bid evaluation process using observable, market based inputs.


(h)	This category includes investments in passively managed funds composed of international stocks across diverse industries. Fair value for these assets is calculated based upon a compilation of observable market information.

The Company’s pension plan weighted-average asset allocation in the Master Trust at December 31, 2011 and 2010 by asset category on a weighted average basis is as follows:



	December 31, 2011		December 31, 2010
	Plan Assets	Asset Allocation Target	Plan Assets	Asset Allocation Target
Equity securities	65%	65%	62%	65%
Debt securities	35%	35%	38%	35%
Total	100%	100%	100%	100%

The Asset Management Committee (“AMC”) as appointed by the Compensation and Benefits Committee of the Company’s Board of Directors is a named fiduciary of the plan in matters relating to plan investments and asset management. The AMC has the authority to appoint, retain, monitor and remove any custodian or investment manager and is responsible for establishing and maintaining a funding and investment policy for the Master Trust.

The plans’ assets are invested in accordance with investment practices that emphasize long-term investment fundamentals. The plans’ investment objective is to achieve a positive rate of return over the long term from capital appreciation and a growing stream of current income that would significantly contribute to meeting the plans’ current and future obligations. These objectives can be obtained through a well-diversified portfolio structure in a manner consistent with each plan’s investment policy statement.

The plans’ assets are invested in marketable equity and fixed income securities managed by professional investment managers. Plan assets are invested using a combination of active and passive (indexed) investment strategies. The plans’ assets are to be broadly diversified by asset class, investment style, number of issues, issue type and other factors consistent with the investment objectives outlined in each plan’s investment policy statement. The plans’ assets are to be invested with prudent levels of risk and with the expectation that long-term returns will maintain and contribute to increasing purchasing power of the plans’ assets, net of all disbursements, over the long term.

The plans’ assets in separately managed accounts may not be used for the following purposes: short sales, purchases of letter stock, private placements, leveraged transactions, commodities transactions, option strategies, investments in some limited partnerships, investments by the managers in their own securities, their affiliates or subsidiaries, investment in futures, use of margin or investments in any derivative not explicitly permitted in each plan’s investment policy statement.

The plans’ fixed income manager uses derivative financial instruments in the normal course of its investing activities to hedge against adverse changes in the fixed income market and to achieve overall investment portfolio objectives. These financial instruments include U.S. Treasury futures contracts, equity futures contracts and credit default swaps. The futures held are a combination of 5, 10 and 20 year futures and are being used to manage the duration exposure of the portfolio. The plans’ investment managers synthetically invest cash, which is primarily held to fund benefit payments, through the use of equity and fixed income index futures contracts. The use of specific futures contracts is guided by the Master Trust’s asset allocation targets. Consequently, this strategy enables the Master Trust to achieve its asset allocation targets while maintaining sufficient liquidity to meet benefit payments. The credit default swaps are held as a hedge against declines in certain bond markets and as a vehicle to take advantage of opportunities in certain segments of the fixed income market. The plans’ investment policy statements do not allow the use of derivatives to leverage the portfolio or for speculative purposes. The use of derivatives is not believed to materially increase the credit or market risk of the plans’ investments.

For both the year ended December 31, 2011 and eleven months ended December 31, 2010, the Company used a rate of 8.00% as the expected long-term rate of return assumption on the plan assets for the Dex One Retirement Plan and Dex Media Pension Plan. For both the one month ended January 31, 2010 and year ended December 31, 2009, the Predecessor Company used a rate of 8.00% as the expected long-term rate of return assumption on the plan assets for the Dex One Retirement Plan and Dex Media Pension Plan. The basis used for determining these rates was the long-term capital market return forecasts for an asset mix similar to the plans’ asset allocation target of 65% equity securities and 35% debt securities at the beginning of each such year. The basis used for determining these rates also included an opportunity for active management of the assets to add value over the long term. The active management expectation was supported by calculating historical returns for the investment managers who actively managed the plans’ assets.

Although we review our expected long-term rate of return assumption annually, our performance in any one particular year does not, by itself, significantly influence our evaluation. Our assumption is generally not revised unless there is a fundamental change in one of the factors upon which it is based, such as the target asset allocation or long-term capital market return forecasts.

Estimated Future Benefit Payments

The Company’s pension plans' benefits expected to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows:



	Pension Plans
2012	$	18,206
2013	17,987
2014	17,220
2015	17,227
2016	17,425
Years 2017-2021	83,215

We expect to make contributions of approximately $12.5 million to our pension plans in 2012.