The following table displays the details of reorganization items for the one month ended January 31, 2010:



	Predecessor Company
	One Month Ended January 31, 2010
Liabilities subject to compromise ⁽¹⁾	$	6,352,813
Issuance of new Dex One common stock (par value)⁽²⁾	(50		)
Dex One additional paid-in capital established in fresh start accounting ⁽²⁾	(1,450,734		)
Issuance of Dex One Senior Subordinated Notes ⁽³⁾	(300,000		)
Reclassified into other balance sheet liability accounts ⁽⁴⁾	(39,471		)
Professional fees and other ⁽⁵⁾	(38,403		)
Gain on reorganization / settlement of liabilities subject to compromise	4,524,155

Fresh start accounting adjustments:
Goodwill ⁽⁶⁾	2,097,124
Write off of deferred revenue and deferred directory costs ⁽⁷⁾	655,555
Fair value adjustment to intangible assets ⁽⁸⁾	415,132
Fair value adjustment to the amended and restated credit facilities ⁽⁹⁾	120,245
Fair value adjustment to fixed assets and computer software ⁽⁸⁾	49,814
Write-off of deferred financing costs ⁽¹⁰⁾	(48,443		)
Other fresh start accounting adjustments ⁽¹¹⁾	(20,450		)
Total fresh start accounting adjustments	3,268,977
Total reorganization items, net	$	7,793,132

⁽¹⁾

Liabilities subject to compromise generally refer to pre-petition obligations, secured or unsecured, that may be impaired by a plan of reorganization. FASB ASC 852 requires such liabilities, including those that became known after filing the Chapter 11 petitions, be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. The table below identifies the principal categories of liabilities subject to compromise at January 31, 2010, which subsequently were discharged under the Plan:



Predecessor Company senior notes, senior discount notes and senior subordinated notes (“Notes in Default”)	$	6,071,756
Accrued interest	241,585
Tax related liabilities	28,845
Accounts payable and accrued liabilities	10,627
Total liabilities subject to compromise	$	6,352,813


⁽²⁾	On the Effective Date, the Company issued an aggregate amount of 50.0 million shares of new common stock, par value $.001 per share, and established additional paid-in capital of $1.5 billion based on the fair value of equity less the par value of Dex One common stock.


⁽³⁾	On the Effective Date and in accordance with the Plan, we issued the Dex One Senior Subordinated Notes to the holders of the Dex Media West 8.5% Senior Notes due 2010 and 5.875% Senior Notes due 2011 on a pro rata basis in addition to their share of the reorganized Dex One equity.


⁽⁴⁾	Represents liabilities originally classified as liabilities subject to compromise that were assumed under the Plan and reclassified to liabilities not subject to compromise.

⁽⁵⁾

The Predecessor Company incurred professional fees associated with filing the Chapter 11 petitions of $30.6 million during the one month ended January 31, 2010, of which $22.7 million were paid in cash during the one month ended January 31, 2010. Professional fees included financial, legal and valuation services directly associated with the reorganization process. During the one month ended January 31, 2010, the Predecessor Company did not receive any operating cash receipts resulting from the filing of the Chapter 11 petitions.


⁽⁶⁾	The excess reorganization value over the fair value of identified tangible and intangible assets of $2.1 billion was recorded as goodwill. See “Enterprise Value / Reorganization Value Determination” below for additional information.

⁽⁷⁾

The adoption of fresh start accounting had a significant impact on the results of operations of the Company commencing on the Fresh Start Reporting Date. As a result of the deferral and amortization method of revenue recognition, recognized advertising revenues reflect the amortization of advertising sales consummated in prior periods as well as in the current period. Fresh start accounting precluded us from recognizing substantially all of our deferred advertising revenue of $791.0 million and all of the related deferred directory costs of $135.5 million based on the minimal obligations we had subsequent to the Fresh Start Reporting Date associated with advertising sales fulfilled prior to the Fresh Start Reporting Date.

⁽⁸⁾

The determination of the fair value of our intangible assets resulted in a $415.1 million net increase in intangible assets on the reorganized condensed consolidated balance sheet at January 31, 2010. The determination of the fair value of our fixed assets and computer software resulted in a $49.8 million net increase in fixed assets and computer software on the reorganized condensed consolidated balance sheet at January 31, 2010.

⁽⁹⁾

In conjunction with our adoption of fresh start accounting, an adjustment was established to record our outstanding debt at fair value on the Fresh Start Reporting Date. A total discount of $120.2 million was recorded upon adoption of fresh start accounting associated with our Credit Facilities. See Note 2, “Summary of Significant Accounting Policies – Interest Expense and Deferred Financing Costs” and Note 5, “Long-Term Debt” for additional information.


⁽¹⁰⁾	As a result of fresh start accounting, deferred financing costs of $48.4 million associated with the Predecessor Company’s existing credit facilities were eliminated.


⁽¹¹⁾	Represents various other fresh start accounting adjustments including adjustments to deferred rent and prepaid expenses and other current assets.