Business and Basis of Presentation

The consolidated financial statements include the accounts of Dex One Corporation and its direct and indirect wholly-owned subsidiaries (“Dex One,” “Successor Company,” “Company,” “Parent Company,” “we,” “us” and “our”) subsequent to the Effective Date, which is defined below. As of December 31, 2011, R.H. Donnelley Corporation, R.H. Donnelley Inc. (“RHDI” or “RHD Inc.”), Dex Media, Inc. (“Dex Media”), Dex One Digital, Inc. (“Dex One Digital”), formally known as Business.com, Inc. (“Business.com”) and Dex One Service, Inc. (“Dex One Service”) were our only direct wholly-owned subsidiaries. The financial information set forth in this Annual Report, unless otherwise indicated or as the context may otherwise indicate, reflects the consolidated results of operations and financial position of Dex One as of and for the year ended December 31, 2011 and eleven months ended December 31, 2010. All intercompany transactions and balances have been eliminated.

Dex One became the successor registrant to R.H. Donnelley Corporation (“RHD” or the “Predecessor Company,” “we,” “us” and “our” for operations prior to January 29, 2010, the “Effective Date”) upon emergence from Chapter 11 proceedings under Title 11 of the United States Code (“Chapter 11”) on the Effective Date. The financial information set forth in this Annual Report, unless otherwise indicated or as the context may otherwise indicate, reflects the consolidated results of operations and financial position of RHD as of and for the one month ended January 31, 2010 and year ended December 31, 2009. See Note 3, “Fresh Start Accounting and Reorganization Items, Net” for information on the impact our emergence from reorganization and adoption of fresh start accounting had on our financial position and results of operations.

Business Overview

We are a marketing solutions company that helps local businesses and consumers connect with each other. Our proprietary and affiliate provided marketing solutions combine multiple media platforms, which help drive large volumes of consumer leads to our customers, and assist our customers in managing their presence among those consumers. Our marketing consultants strive to be trusted advisors and offer local businesses personalized marketing consulting services and exposure across leading media platforms used by consumers searching for local businesses. These platforms include online and mobile local search solutions, major search engines, and print directories.

Our proprietary marketing solutions include our Dex published yellow pages directories, which we co-brand with other recognizable brands in the industry such as CenturyLink and AT&T, our Internet yellow pages site, DexKnows.com and our mobile applications, Dex Mobile and CityCentral. Our growing list of marketing solutions also includes local business and market analysis, message and image creation, target market identification, advertising and digital profile creation, web sites, mobile web sites, reputation management, online video development and promotion, keyword optimization strategies and programs, distribution strategies, social strategies and tracking and reporting. Our digital lead generation solutions are powered by our search engine marketing product, DexNet, which extends our customers’ reach to our leading Internet and mobile partners to attract consumers searching for local businesses, products and services within our markets.

Chapter 11 and Emergence from Bankruptcy

On May 28, 2009, the Predecessor Company and its subsidiaries filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). On January 12, 2010, the Bankruptcy Court entered the Findings of Fact, Conclusions of Law, and Order Confirming the Joint Plan of Reorganization for the Predecessor Company and its subsidiaries (the “Plan”). The Plan became effective in accordance with its terms on the Effective Date.

See our Annual Report on Form 10-K for the year ended December 31, 2010 for detailed information on the following matters associated with the Chapter 11 proceedings:


•	The Predecessor Company’s filing of voluntary positions in Chapter 11;


•	The confirmed Plan and our emergence from the Chapter 11 proceedings;


•	Restructuring conducted in connection with our emergence from the Chapter 11 proceedings;


•	Consummation of the Plan;


•	Impact on long-term debt upon emergence from the Chapter 11 proceedings; and


•	Accounting matters resulting from the Chapter 11 proceedings.

Reclassifications

In conjunction with our restructuring plan that commenced during the fourth quarter of 2010 and the resulting changes in our organizational structure, certain prior period amounts included in the consolidated statements of operations have been reclassified to conform to the current period’s presentation. See Note 4, “Restructuring Charges” for additional information. These reclassifications had no impact on operating income (loss) or net income (loss) for the eleven months ended December 31, 2010, one month ended January 31, 2010 or year ended December 31, 2009.

Labor Unions

Approximately 31% of our employees are represented by labor unions covered by two collective bargaining agreements with Dex Media. The unionized employees are represented by either the International Brotherhood of Electrical Workers of America (“IBEW”) or the Communication Workers of America (“CWA”). Dex Media’s collective bargaining agreement with the IBEW expires in May 2012 and Dex Media’s collective bargaining agreement with the CWA expires in September 2012.

Other

In April 2011, CenturyLink Inc. (“CenturyLink”) completed its acquisition of Qwest Communications International, Inc. (“Qwest”). Historically, we have co-branded our directories under directory publishing agreements and have been bound by other commercial arrangements with each of CenturyLink and Qwest. For purposes of defining markets in which CenturyLink and Qwest provided local telephone service prior to the acquisition, legacy CenturyLink markets are hereby referred to as “CenturyLink East” markets and legacy Qwest markets as “CenturyLink West” markets. The directory publishing agreement and other commercial arrangements that the Company had entered into with Qwest remain contractual obligations of Qwest, and there have been no substantive revisions or amendments made to the terms and conditions of such arrangements.