Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 02, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DEX MEDIA, INC. | ||
Entity Central Index Key | 1556739 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 17,626,139 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $136,224,253 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Operating Revenue | $1,815 | $1,444 | $1,278 |
Operating Expenses | |||
Selling | 436 | 383 | 280 |
Cost of service (exclusive of depreciation and amortization) | 576 | 479 | 358 |
General and administrative | 164 | 209 | 118 |
Depreciation and amortization | 643 | 765 | 419 |
Impairment charge | 0 | 458 | 0 |
Total Operating Expenses | 1,819 | 2,294 | 1,175 |
Operating Income (Loss) | -4 | -850 | 103 |
Interest expense, net | 356 | 316 | 196 |
(Loss) Before Reorganization Items, Gains on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes | -360 | -1,166 | -93 |
Reorganization items | 0 | 38 | 0 |
Gains on early extinguishment of debt | 2 | 9 | 140 |
Income (Loss) Before Provision (Benefit) for Income Taxes | -358 | -1,195 | 47 |
Provision (benefit) for income taxes | 13 | -376 | 6 |
Net Income (Loss) | -371 | -819 | 41 |
Other Comprehensive Income (Loss) | |||
Adjustments for pension and other post-employment benefits, net of taxes | -51 | 10 | -16 |
Comprehensive Income (Loss) | ($422) | ($809) | $25 |
Basic and diluted earnings (loss) per common share (in dollars per share) | ($21.43) | ($54.89) | $4.09 |
Basic and diluted weighted average common shares outstanding (in shares) | 17.3 | 14.9 | 10.1 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $171 | $156 |
Accounts receivable, net of allowances of $30 and $26 | 151 | 218 |
Deferred directory costs | 161 | 183 |
Deferred tax assets | 0 | 9 |
Prepaid expenses and other | 14 | 27 |
Assets held for sale | 0 | 16 |
Total current assets | 497 | 609 |
Fixed assets and capitalized software, net | 64 | 106 |
Goodwill | 315 | 315 |
Intangible assets, net | 794 | 1,381 |
Pension assets | 45 | 41 |
Other non‑current assets | 7 | 12 |
Total Assets | 1,722 | 2,464 |
Current Liabilities | ||
Current maturities of long-term debt | 124 | 154 |
Accounts payable and accrued liabilities | 167 | 166 |
Accrued interest | 20 | 20 |
Deferred revenue | 93 | 126 |
Total current liabilities | 404 | 466 |
Long-term debt | 2,272 | 2,521 |
Employee benefit obligations | 127 | 132 |
Deferred tax liabilities | 30 | 28 |
Unrecognized tax benefits | 11 | 19 |
Other liabilities | 0 | 1 |
Shareholders' (Deficit) | ||
Common stock, par value $.001 per share, authorized – 300,000,000 shares; issued and outstanding – 17,608,580 shares at December 31, 2014 and 17,601,520 shares at December 31, 2013 | 0 | 0 |
Additional paid-in capital | 1,554 | 1,551 |
Retained (deficit) | -2,591 | -2,220 |
Accumulated other comprehensive (loss) | -85 | -34 |
Total shareholders' (deficit) | -1,122 | -703 |
Total Liabilities and Shareholders' (Deficit) | $1,722 | $2,464 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, except Share data, unless otherwise specified | ||||
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts receivable | $30 | $26 | $20 | $36 |
Shareholders' (Deficit) | ||||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | ||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | ||
Common stock, shares issued (in shares) | 17,608,580 | 17,601,520 | ||
Common stock, shares outstanding (in shares) | 17,608,580 | 17,601,520 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes In Shareholders' Equity (Deficit) (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive (Income) Loss |
In Millions, unless otherwise specified | |||||
Beginning balance at Dec. 31, 2011 | ($10) | $0 | $1,460 | ($1,442) | ($28) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 41 | 41 | |||
Issuance of equity based awards | 5 | 5 | |||
Other comprehensive income (loss), net of tax | -16 | -16 | |||
Ending balance at Dec. 31, 2012 | 20 | 0 | 1,465 | -1,401 | -44 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Acquisition of SuperMedia | 82 | 82 | |||
Net income (loss) | -819 | -819 | |||
Issuance of equity based awards | 4 | 4 | |||
Other comprehensive income (loss), net of tax | 10 | 10 | |||
Ending balance at Dec. 31, 2013 | -703 | 0 | 1,551 | -2,220 | -34 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | -371 | -371 | |||
Issuance of equity based awards | 3 | 3 | |||
Other comprehensive income (loss), net of tax | -51 | -51 | |||
Ending balance at Dec. 31, 2014 | ($1,122) | $0 | $1,554 | ($2,591) | ($85) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net income (loss) | ($371) | ($819) | $41 |
Reconciliation of net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 643 | 765 | 419 |
Provision for deferred income taxes | 11 | -351 | 6 |
Provision for unrecognized tax benefits | -8 | -32 | 0 |
Provision for bad debts | 26 | 23 | 33 |
Non-cash interest expense | 93 | 69 | 40 |
Stock-based compensation expense | 4 | 4 | 5 |
Impairment charge | 0 | 458 | 0 |
Employee retiree benefits | -8 | -3 | 2 |
Employee benefit plan amendments | -42 | 0 | 0 |
Gains on early extinguishment of debt | -2 | -9 | -140 |
Non-cash reorganization items | 0 | 32 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | 41 | 291 | -11 |
Deferred directory costs | 26 | -46 | 33 |
Other current assets | 11 | 11 | 15 |
Accounts payable and accrued liabilities | -27 | -32 | -87 |
Other items, net | -9 | -1 | -7 |
Net cash provided by operating activities | 388 | 360 | 349 |
Cash Flows from Investing Activities | |||
Additions to fixed assets and capitalized software | -18 | -24 | -23 |
Cash acquired in acquisition | 0 | 154 | 0 |
Proceeds from sale of building | 13 | 0 | 0 |
Net cash provided by (used in) investing activities | -5 | 130 | -23 |
Cash Flows from Financing Activities | |||
Debt repayments | -367 | -505 | -401 |
Debt issuance costs and other financing items, net | -1 | -1 | -11 |
Net cash (used in) financing activities | -368 | -506 | -412 |
Increase (decrease) in cash and cash equivalents | 15 | -16 | -86 |
Cash and cash equivalents, beginning of year | 156 | 172 | 258 |
Cash and cash equivalents, end of year | 171 | 156 | 172 |
Supplemental Information | |||
Cash interest on debt | 269 | 254 | 165 |
Cash income taxes, net | $4 | $14 | $2 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies | |||||||||||||
General | ||||||||||||||
Dex Media, Inc. (“Dex Media”, “we”, “our”, or the “Company”) is a leading provider of local marketing solutions to over 490,000 business clients across the United States. Our approximately 1,900 sales employees work directly with our clients to provide multiple local marketing solutions that 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. | ||||||||||||||
In 2014, we published more than 1,700 distinct directory titles in 42 states and distributed approximately 100 million directories to businesses and residences in the United States. In 2014, our top ten directories, as measured by revenue, accounted for approximately 5% of our revenue and no single directory or local client accounted for more than 1% of our revenue. | ||||||||||||||
Dex Media was created as a result of the merger between Dex One Corporation (“Dex One”) and SuperMedia Inc. (“SuperMedia”) on April 30, 2013. Dex One was the acquiring company. | ||||||||||||||
Dex One became the successor registrant to R.H. Donnelley Corporation ("RHDC") upon emergence from Chapter 11 proceedings on January 29, 2010. RHDC was formed on February 6, 1973 as a Delaware corporation. In November 1996, RHDC, then known as The Dun & Bradstreet Corporation, separated through a spin-off into three separate public companies: The Dun and Bradstreet Corporation, ACNielsen Corporation, and Cognizant Corporation. In June 1998, The Dun & Bradstreet Corporation separated through a spin-off into two separate public companies: RHDC (formerly The Dun & Bradstreet Corporation) and a new company that changed its name to The Dun & Bradstreet Corporation. In January 2003, RHDC acquired the directory business of Sprint Corporation (formerly known as Sprint Nextel Corporation). In September 2004, RHDC completed the acquisition of the directory publishing business of AT&T, Inc. (formerly known as SBC Communications, Inc.) in Illinois and Northwest Indiana, including AT&T's interest in the DonTech II Partnership ("DonTech"), a 50/50 general partnership between RHDC and AT&T. In January 2006, RHDC acquired the exclusive publisher of the directories for Qwest Communications International Inc. ("Qwest") where Qwest was the primary local telephone service provider. | ||||||||||||||
SuperMedia became the successor company to Idearc, Inc. upon emergence from Chapter 11 bankruptcy proceedings on December 31, 2009. Idearc Inc. was created in November 2006 when Verizon spun-off its domestic directory business. | ||||||||||||||
Merger and Related Bankruptcy Filing of Dex One and SuperMedia | ||||||||||||||
On December 5, 2012, Dex One entered into an Amended and Restated Agreement and Plan of Merger (the "Merger Agreement") with SuperMedia, Newdex Inc. ("Newdex"), and Spruce Acquisition Sub, Inc., a direct wholly owned subsidiary of Newdex ("Merger Sub"). The Merger Agreement provided that, upon the terms and subject to the conditions set forth therein, (i) Dex One would merge with and into Newdex, with Newdex as the surviving entity and (ii) immediately thereafter, Merger Sub would merge with and into SuperMedia, with SuperMedia as the surviving entity, and become a direct wholly owned subsidiary of Newdex (the "Merger"). As a result of the Merger, Newdex, as successor to Dex One, would be renamed Dex Media, Inc. and become a newly listed company. The Merger Agreement further provided 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 under Chapter 11 of Title 11 of the United States Code ("Chapter 11" or the "Bankruptcy Code"). 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") and requested confirmation of their respective joint pre-packaged Chapter 11 plans (the "Prepackaged Plans"), seeking to effect the Merger and related transactions contemplated by the Merger Agreement. | ||||||||||||||
On April 29, 2013, the Bankruptcy Court held a hearing and 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. The common stock of Dex Media is listed on the NASDAQ Stock Market. | ||||||||||||||
Departure/Appointment of Certain Officers | ||||||||||||||
On October 14, 2014, the Company announced the appointment of Joseph A. Walsh as President and Chief Executive Officer of the Company and his election to the Company’s Board of Directors. Mr. Walsh succeeds Peter J. McDonald, who retired as the Company’s Chief Executive Officer and Director, effective October 14, 2014. To ensure a smooth transition of his responsibilities, the Company and Mr. McDonald entered into a twelve month consulting services agreement. | ||||||||||||||
In November 2014, the Company announced the appointment of several new executive team members, including Mr. Paul D. Rouse, who became the Company’s Executive Vice President - Chief Financial Officer and Treasurer, effective upon the resignation of Mr. Samuel D. Jones as the Executive Vice President - Chief Financial Officer and Treasurer of the Company, on November 14, 2014. | ||||||||||||||
The Company also announced the resignation of Frank P. Gatto, the Company’s Executive Vice President - Operations. To ensure a smooth transition of their responsibilities, each of Mr. Jones and Mr. Gatto entered into a twelve month consulting services agreement with the Company. | ||||||||||||||
Business Transformation Program | ||||||||||||||
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, and to be incurred in 2014 and throughout 2015. | ||||||||||||||
During the year ended December 31, 2014, the Company recorded a severance charge associated with the business transformation program of $43 million, which includes severance associated with our former President and Chief Executive Officer, our former Executive Vice President - Chief Financial Officer and Treasurer, and our former Executive Vice President - Operations of $10 million. The total severance charge was recorded in accordance with the Company’s existing severance program, without enhancement, and represents the cost of the Company's workforce reduction plan to lay off approximately 1,000 employees, beginning in the fourth quarter of 2014 and continuing through 2015. | ||||||||||||||
Business transformation costs are recorded as general and administrative expense in our 2014 consolidated statement of comprehensive income (loss). | ||||||||||||||
Additional charges associated with lease terminations, costs associated with system consolidations and relocation costs will be incurred beginning in 2015. | ||||||||||||||
For additional information regarding business transformation costs, see Note 5. | ||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||
Basis of Presentation | ||||||||||||||
The Company prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States. The consolidated financial statements include the financial statements of Dex Media and its wholly owned subsidiaries. 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 assets and liabilities at the date of the financial statements. All inter-company accounts and transactions have been eliminated. The Company is managed as a single business segment. | ||||||||||||||
In the periods subsequent to filing for bankruptcy on March 18, 2013 and until emergence from bankruptcy on April 30, 2013, Accounting Standards Codification ("ASC") 852 “Reorganizations" ("ASC 852") was applied in preparing the consolidated financial statements of Dex One. ASC 852 requires that the financial statements distinguish transactions and events that are directly associated with the bankruptcy reorganization from the ongoing operations of the business. Accordingly, certain expenses including professional fees, realized gains and losses and provisions for losses that are realized from the reorganization and restructuring process have been classified as reorganization items on the Company's consolidated statements of comprehensive income (loss). | ||||||||||||||
The Company accounted for the merger of Dex One and SuperMedia creating Dex Media on April 30, 2013, using the acquisition method of accounting in accordance with ASC 805 “Business Combinations” (“ASC 805”). As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. For additional information regarding the merger and acquisition accounting, see Note 2. | ||||||||||||||
Certain prior period amounts on our consolidated financial statements have been reclassified to conform to current year presentation. | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of the Company’s financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. | ||||||||||||||
Examples of significant estimates include the allowance for doubtful accounts, the recoverability and fair value determination of property, plant and equipment, goodwill, intangible assets and other long-lived assets, pension assumptions and estimates of selling prices that are used for multiple element arrangements. | ||||||||||||||
Revenue Recognition | ||||||||||||||
Revenue is earned from the sale of advertising. We are not generally affected by seasonality given our revenue is largely recognized on a straight-line basis over twelve month contract periods. | ||||||||||||||
The sale of advertising in print directories is our primary source of revenue. We recognize revenue from print directory advertising ratably over the life of each directory which is typically twelve months, using the deferral and amortization method of accounting, with revenue recognition commencing in the month of publication. | ||||||||||||||
Revenue derived from digital advertising is earned primarily from two sources: fixed-fee and performance-based advertising. Fixed-fee advertising includes advertisement placement on our and other local search websites, website development and website hosting for client advertisers. Revenue from fixed-fee advertising is recognized ratably over the life of the advertising service. Performance-based advertising revenue is earned when consumers connect with client advertisers by a "click" or “action” on their digital advertising or a phone call to their business. Performance-based advertising revenue is recognized when there is evidence that qualifying transactions have occurred or over the service period of the arrangement, as applicable. | ||||||||||||||
We also offer multiple-deliverable revenue arrangements with our customers that may include a combination of our print and digital marketing solutions. The timing of delivery or fulfillment of our marketing solutions in a multiple-deliverable arrangement may differ, whereby the fulfillment of a digital marketing solutions precedes delivery of our print marketing solutions due to the length of time required to produce the final print product. In addition, multiple print directories included in a multiple-deliverable arrangement may be published at different times throughout the year. We limit the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery or fulfillment of other marketing solutions included in a multiple-deliverable arrangement. | ||||||||||||||
We evaluate each deliverable in a multiple-deliverable revenue arrangement to determine whether they represent separate units of accounting using the following criteria: | ||||||||||||||
• | The delivered item(s) has value to the customer on a stand-alone basis; and | |||||||||||||
• | If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. | |||||||||||||
All of our print and digital marketing solutions qualify as separate units of accounting since they are sold on a stand-alone basis and we allocate multiple-deliverable arrangement consideration to each deliverable based on its estimated selling price. Our sales contracts generally do not include any provisions for cancellation, termination, right of return or refunds that would significantly impact recognized revenue. In determining our estimated selling prices, we require that a substantial majority of our selling prices are consistent with our normal pricing and discounting policies, which have been established by management having relevant authority. | ||||||||||||||
Expense Recognition | ||||||||||||||
Costs directly attributable to producing directories are amortized over the life of the directories, which is usually twelve months, under the deferral and amortization method of accounting. Direct costs include paper, printing, initial distribution and sales commissions. All other costs are recognized as incurred. | ||||||||||||||
Barter Transactions | ||||||||||||||
Occasionally, the Company may enter into certain transactions where a third party provides directory placement arrangements, sponsorships or other media advertising in exchange for comparable advertising with the Company. It is the Company's policy to not recognize revenue and expense from these transactions on the Company’s consolidated statements of comprehensive income (loss). If recognized, revenue associated with barter transactions would be less than 2% of total revenue. | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
Highly liquid investments with a maturity of 90 days or less when purchased are considered to be cash equivalents. Cash and cash equivalents consist of bank deposits and money market funds. Cash equivalents are stated at cost, which approximates market value. As of December 31, 2014, the Company's cash and cash equivalents are valued at $171 million. | ||||||||||||||
Accounts Receivable | ||||||||||||||
At December 31, 2014, the Company’s consolidated balance sheet has accounts receivables of $151 million, which is net of an allowance for doubtful accounts of $30 million, and includes unbilled receivables of $1 million. Unbilled receivables represent amounts that are not billable at the balance sheet date but are billed over the remaining life of the clients’ advertising contracts. | ||||||||||||||
Receivables are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is calculated using a percentage of sales method based upon collection history, and an estimate of uncollectible accounts. Judgment is exercised in adjusting the provision as a consequence of known items, such as current economic factors and credit trends. Accounts receivable adjustments are recorded against the allowance for doubtful accounts. | ||||||||||||||
Concentrations of Credit Risk | ||||||||||||||
Financial instruments subject to concentrations of credit risk consist primarily of temporary cash investments, short-term investments, trade receivables, and debt. Company policy requires the deposit of temporary cash investments with major financial institutions. | ||||||||||||||
Approximately 86% of the Company’s 2014 revenue is derived from the sale of advertising to local small and medium sized businesses that advertise in limited geographical areas. These advertisers are usually billed in monthly installments after the advertising has been published and, in turn, make monthly payments, requiring the Company to extend credit to these customers. This practice is widely accepted within the industry. While most new advertisers and those wanting to expand their current media solutions are subject to a credit review, the default rates of small and medium sized companies are generally higher than those of larger companies. | ||||||||||||||
The remaining 14% of the Company’s 2014 revenue is derived from the sale of advertising to larger businesses that advertise regionally or nationally. Contracted certified marketing representatives ("CMRs") purchase advertising on behalf of these advertisers. Payment for advertising is due when the advertising is published and is received directly from the CMRs, net of the CMRs' commission. The CMRs are responsible for billing and collecting from the advertisers. While the Company still has exposure to credit risks, historically, the losses from this client set have been less than that of local advertisers. | ||||||||||||||
Fixed Assets and Capitalized Software | ||||||||||||||
The cost of additions and improvements associated with fixed assets are capitalized if they have a useful life in excess of one year. Expenditures for repairs and maintenance, including the cost of replacing minor items not considered substantial betterments, are expensed as incurred. When fixed assets are sold or retired, the related cost and accumulated depreciation are deducted from the accounts and any gains or losses on disposition are recognized in income. Fixed assets are reviewed for impairment whenever events or changes in circumstances may indicate that the carrying amount of an asset may not be recoverable. | ||||||||||||||
Costs associated with internal use software are capitalized if they have a useful life in excess of one year. Subsequent additions, modifications or upgrades to internal use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Capitalized software is reviewed for impairment whenever events or changes in circumstances may indicate that the carrying amount of an asset may not be recoverable. | ||||||||||||||
Fixed assets and capitalized software are depreciated on a straight-line basis over the estimated useful lives of the assets, which are presented in the following table. | ||||||||||||||
Estimated Useful Lives | ||||||||||||||
Buildings and building improvements | 8-30 years | |||||||||||||
Leasehold improvements | 3-8 years | |||||||||||||
Computer and data processing equipment | 3 years | |||||||||||||
Furniture and fixtures | 7 years | |||||||||||||
Capitalized software | 3 years | |||||||||||||
Other | 3-7 years | |||||||||||||
For additional information related to fixed assets and capitalized software, see Note 7. | ||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||
The Company has goodwill of $315 million and intangible assets of $794 million on the consolidated balance sheet as of December 31, 2014 | ||||||||||||||
Goodwill | ||||||||||||||
In accordance with GAAP, impairment testing for goodwill is to be performed at least annually unless indicators of impairment exist in interim periods. The impairment test for goodwill uses a two-step approach, which is performed at the reporting unit level. The Company has four reporting units, R.H. Donnelley Inc. ("RHD"), Dex Media East, Inc. ("DME"), Dex Media West, Inc. ("DMW") and SuperMedia, however, only the SuperMedia reporting unit has goodwill. Step one compares the fair value of the reporting unit to its carrying value. In performing step one of the impairment test, the Company estimated the fair value of the reporting unit using a combination of the income and market approaches with greater emphasis placed on the income approach, for purposes of estimating the total enterprise value of the Company. If the carrying value exceeds the fair value, there is a potential impairment and step two must be performed. Step two compares the carrying value of the reporting unit's goodwill to its implied fair value (i.e., the fair value of the reporting unit less the fair value of the unit's assets and liabilities, including identifiable intangible assets). If the carrying value of goodwill exceeds its implied fair value, the excess is required to be recorded as an impairment. | ||||||||||||||
The Company performed its annual impairment test of goodwill as of October 1, 2014. The Company determined the fair value of the SuperMedia reporting unit exceeded the carrying value of the reporting unit; therefore there was no impairment of goodwill. | ||||||||||||||
When the Company performed its annual impairment test of goodwill as of October 1, 2013 on the SuperMedia reporting unit, it was determined that the carrying value of the SuperMedia reporting unit including goodwill exceeded the fair value of the SuperMedia reporting unit, requiring the Company to perform step two of the goodwill impairment test to determine the amount of impairment loss, if any. This test resulted in a goodwill impairment of $74 million, which was recognized in the Company’s consolidated statement of comprehensive income (loss) for the year ended December 31, 2013. | ||||||||||||||
Intangible Assets | ||||||||||||||
Intangible assets are recorded separately from goodwill if they meet certain criteria. All of the Company’s intangible assets are classified as definite-lived intangible assets. Intangible assets have been recorded to each of our four reporting units. The Company reviews its definite-lived intangible assets whenever events or circumstances indicate that their carrying value may not be recoverable. Our intangible assets are amortized using the income forecast method over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The recoverability analysis includes estimates of future cash flows directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the definite-lived intangible asset. An impairment loss is measured as the amount by which the carrying amount of the definite-lived intangible asset exceeds its fair value. The Company evaluated its definite-lived assets for potential impairment and determined they were not impaired as of December 31, 2014. | ||||||||||||||
The Company evaluated its definite-lived intangible assets for potential impairment and determined there were indicators of impairment as of October 1, 2013. As a result, the Company recorded an impairment of $384 million which was recognized in the Company’s consolidated statement of comprehensive income (loss) for the year ended December 31, 2013. | ||||||||||||||
The Company’s intangible assets and their estimated remaining useful lives are presented in the table below. | ||||||||||||||
Estimated Remaining Useful Lives | ||||||||||||||
Directory service agreements | 4 years | |||||||||||||
Client relationships | 2 years | |||||||||||||
Trademarks and domain names | 4 years | |||||||||||||
Patented technologies | 3 years | |||||||||||||
Advertising commitment | 2 years | |||||||||||||
For additional information related to goodwill and intangible assets and related impairments, see Note 3. | ||||||||||||||
Pension and Other Post-Employment 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. New mortality tables were published in the fourth quarter of 2014 which reflect improved life expectancies. The Company has adopted these tables resulting in an increase to our pension obligation of approximately $38 million. | ||||||||||||||
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. On January 25, 2014, the Company reached an agreement with certain unions to freeze the SuperMedia Pension Plan for Collectively Bargained Employees. Accordingly, effective April 1, 2014, no employees accrue future pension benefits under any of the pension plans. The Company recorded a curtailment gain of $2 million in 2014 associated with the Union pension plan freeze. | ||||||||||||||
Other Post-Employment Benefits | ||||||||||||||
Prior to January 25, 2014, the Company was obligated to provide other post-employment benefits ("OPEB"), which included post-employment health care and life insurance plans for certain of the Company's retirees. On January 25, 2014, the Company enacted plan amendments to its OPEB plans, and reached an agreement with certain unions to eliminate the Company's obligation as of April 1, 2014. As a result of the settlement of these plan amendments, the Company recorded a credit of $13 million to general and administrative expense in its consolidated statement of comprehensive income (loss) during the year ended December 31, 2014. | ||||||||||||||
For additional information related to pension and other post-employment benefits, see Note 10. | ||||||||||||||
Income Taxes | ||||||||||||||
We account for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes (“ASC 740”). | ||||||||||||||
Deferred tax assets or liabilities are recorded to reflect the expected future tax consequences of temporary differences between the financial reporting basis of assets and liabilities and their tax basis at each year-end. These amounts are adjusted as appropriate to reflect enacted changes in tax rates expected to be in effect when the temporary differences reverse. | ||||||||||||||
The likelihood that deferred tax assets can be recovered must be assessed. If recovery is not likely, the provision for taxes must be increased by recording a reserve in the form of a valuation allowance for deferred tax assets that are estimated not to be ultimately recoverable. In this process, certain relevant criteria are evaluated, including the existence of deferred tax liabilities that can be used to absorb deferred tax assets and taxable income in future years. A valuation allowance is established to offset any deferred income tax assets if, based on the available evidence, it is more likely than not that some or all of the deferred income tax assets will not be realized. The Company has netted deferred tax assets for net operating losses with related uncertain tax positions if such settlement is required or expected in the event the uncertain tax position is disallowed. | ||||||||||||||
The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. For additional information regarding our provision (benefit) for income taxes, see Note 12. | ||||||||||||||
Advertising Costs | ||||||||||||||
Advertising costs, which includes media, promotional, branding and on-line advertising, are included in selling expense in the Company’s consolidated statements of comprehensive income (loss), and are expensed as incurred. Advertising costs for the years ended December 31, 2014, 2013 and 2012 were $4 million, $7 million and $8 million, respectively. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including advertising costs, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||
Capital Stock | ||||||||||||||
The Company has authority to issue 310 million shares of capital stock, of which 300 million shares are common stock, with a par of value $.001 per share, and 10 million shares are preferred stock, with a par value of $.001 per share. As of December 31, 2014, the Company has 17,608,580 shares of common stock outstanding. The Company has not issued any shares of preferred stock. | ||||||||||||||
Earnings (Loss) Per Share | ||||||||||||||
The following table sets forth the calculation of the Company’s basic and diluted earnings (loss) per share for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in millions, except per share amounts) | ||||||||||||||
Net income (loss) | $ | (371 | ) | $ | (819 | ) | $ | 41 | ||||||
Basic and diluted weighted-average common shares outstanding | 17.3 | 14.9 | 10.1 | |||||||||||
Basic and diluted earnings (loss) per common share | $ | (21.43 | ) | $ | (54.89 | ) | $ | 4.09 | ||||||
The weighted average shares outstanding for periods prior to April 30, 2013 have been adjusted to reflect the 1-for-5 reverse stock split of Dex One common stock. | ||||||||||||||
Basic earnings (loss) per share are computed by dividing net income (loss) by the number of weighted-average common shares outstanding during the reporting 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 years ended December 31, 2014 and 2013, the effect of all stock-based awards was anti-dilutive and therefore not included in the calculation of earnings per share. The effect of potentially dilutive common shares for the year ended December 31, 2012 was not material. For the year ended December 31, 2014, 2013 and 2012, 0.4 million, 0.4 million and 0.5 million shares of the Company’s stock-based awards had exercise prices that exceeded the average market price of the Company’s common stock for the respective period. 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 stock-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 December 31, 2014 and 2013 there were 0.2 million and 0.3 million, respectively, of such participating securities outstanding. 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 year ended December 31, 2014 and 2013 was not allocated to these participating securities, as these awards do not share in any loss generated by the Company. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company grants awards to certain employees and certain non-management directors under stock-based compensation plans. The 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 awards are classified as either liability or equity awards based on the criteria established by the applicable accounting rules for stock-based compensation. Stock-based compensation expense related to incentive compensation awards is recognized on a straight-line basis over the minimum service period required for vesting of the award. | ||||||||||||||
For additional information related to stock-based compensation, see Note 11. | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value. | ||||||||||||||
Level 1 - Valuations based on quoted prices for identical assets and liabilities in active markets; | ||||||||||||||
Level 2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and | ||||||||||||||
Level 3 - Valuations based on unobservable inputs reflecting our own assumptions. These valuations require significant judgment. | ||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When there is more than one input at different levels within the hierarchy, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assessment of the significance of a particular input, to the fair value measurement in its entirety, requires substantial judgment and consideration of factors specific to the asset or liability. The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach or cost approach. | ||||||||||||||
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 December 31, 2014 and 2013. These money market funds have been recorded at fair value using Level 2 inputs. The Company also had $8 million and $9 million held in certificates of deposit and mutual funds as of December 31, 2014 and 2013, 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 assets held for sale of $16 million as of December 31, 2013 were recorded at fair value using Level 3 inputs and were sold during the year ended December 31, 2014. The fair values of trade receivables and accounts payable approximate their carrying amounts due to their short-term nature. The fair values of benefit plan assets and the related disclosure are included in Note 10. 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 as of December 31, 2014 and 2013. | ||||||||||||||
At December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Debt obligations | (in millions) | |||||||||||||
Senior secured credit facilities | ||||||||||||||
SuperMedia Inc. | $ | 841 | $ | 829 | $ | 935 | $ | 912 | ||||||
R.H. Donnelley Inc. | 612 | 435 | 685 | 414 | ||||||||||
Dex Media East, Inc. | 354 | 281 | 426 | 289 | ||||||||||
Dex Media West, Inc. | 337 | 293 | 393 | 307 | ||||||||||
Senior subordinated notes | 252 | 112 | 236 | 123 | ||||||||||
Total debt obligations | $ | 2,396 | $ | 1,950 | $ | 2,675 | $ | 2,045 | ||||||
The Company detected an immaterial mathematical error in its calculation of the estimated fair value for the debt obligations of its SuperMedia Inc. subsidiary as disclosed in Dex Media’s 2013 Annual Report on Form 10-K and the first quarter 2014 report on Form 10-Q. The correct estimated debt fair values for SuperMedia Inc. were $912 million at December 31, 2013 ($697 million previously reported) and $897 million at March 31, 2014 ($695 million previously reported). The table above reflects the corrected estimated fair value amounts at December 31, 2013. | ||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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 our 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. |
Acquisition_Accounting
Acquisition Accounting | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Acquisition Accounting | Acquisition Accounting | ||||||
On April 30, 2013, the merger of Dex One and SuperMedia was consummated, with 100% of the equity of SuperMedia being exchanged for 6.9 million Dex Media common shares that were issued to former SuperMedia shareholders at the converted $11.90 per share price, which equated to a fair value of common stock issued of $82 million. | |||||||
We accounted for the merger using the acquisition method of accounting in accordance with ASC 805, 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. | |||||||
We prepared the appraisals necessary to assess the fair values of the SuperMedia tangible and intangible assets acquired and liabilities assumed, and goodwill, which represented the excess of the purchase price over the fair value of the net tangible and intangible assets acquired, recognized as of the acquisition date. The income approach was utilized in determining the fair value of the intangible assets, which consist of directory services agreements with certain local telephone service providers, client relationships, trademarks and domain names, and patented technologies. The market approach was utilized to determine the fair value of SuperMedia's debt obligations. As of March 31, 2014, the measurement period for the acquisition was finalized. | |||||||
Purchase Price Allocation | |||||||
(in millions) | |||||||
Fair value of assets acquired | |||||||
Cash and cash equivalents | $ | 154 | |||||
Accounts receivable | 111 | ||||||
Unbilled accounts receivable | 316 | ||||||
Other current assets | 64 | ||||||
Fixed assets and capitalized software | 42 | ||||||
Intangible assets | 635 | ||||||
Goodwill | 389 | ||||||
Pension assets | 58 | ||||||
Other non-current assets | 4 | ||||||
Total fair value of assets acquired | $ | 1,773 | |||||
Fair value of liabilities acquired | |||||||
Accounts payable and accrued liabilities | $ | 114 | |||||
Long-term debt (including current maturities) | 1,082 | ||||||
Employee benefit obligations | 99 | ||||||
Unrecognized tax benefits | 45 | ||||||
Deferred tax liabilities | 351 | ||||||
Total fair value of liabilities acquired | $ | 1,691 | |||||
Total allocable purchase price | $ | 82 | |||||
Common Stock | |||||||
The Merger Agreement provided that each issued and outstanding share of SuperMedia common stock be converted into the right to receive 0.4386 shares of Dex Media common stock. As of April 30, 2013, 15.6 million shares of SuperMedia common stock were issued and outstanding, which resulted in the issuance of 6.9 million shares of Dex Media common stock. Dex One shareholders received 0.2 shares of Dex Media common stock for each share of Dex One common stock that they owned, which reflects a 1-for-5 reverse stock split of Dex One common stock. The closing trading price of Dex One common stock on April 30, 2013 of $2.38, when adjusted for the 1-for-5 reverse stock split equated to a Dex Media common stock value of $11.90 per share. The 6.9 million Dex Media shares issued to former SuperMedia shareholders at the converted $11.90 per share price equated to a fair value of common stock issued of $82 million. | |||||||
Long-term debt including current maturities | |||||||
As a result of acquisition accounting, SuperMedia's outstanding debt was adjusted to a fair value of $1,082 million, from its face value of $1,442 million, resulting in a discount of $360 million being recognized. The discount is being amortized to interest expense over the remaining term of the SuperMedia senior secured credit facilities using the effective interest method. For additional information on debt, see Note 8. | |||||||
Goodwill and Intangible Assets | |||||||
The goodwill of $389 million that was recorded as part of the acquisition represents the expected synergies and residual benefits that Dex Media believes will result from the combined operations. The Company determined that the $389 million of acquired goodwill is not deductible for tax purposes. Subsequent to the merger, as disclosed in our 2013 Annual Report on Form 10-K, the Company recorded a $74 million goodwill impairment charge. For additional information on goodwill and intangible assets, see Note 3. | |||||||
The fair value of intangible assets acquired of $635 million was determined using valuation techniques consistent with the income approach to measure fair value. The directory services agreements with certain local telephone service providers and client relationships were valued utilizing the excess earnings approach. The excess earnings attributable to the directory services agreements and client relationships were discounted utilizing a weighted average cost of capital of 21%. The trademark and domain names and patented technologies were valued utilizing the relief from royalty approach. The estimated remaining useful lives were estimated based on the future economic benefit to be received from the assets. The intangible assets are being amortized utilizing the income forecast method, which is an accelerated amortization method that assumes the value derived from these intangible assets is greater in the earlier years and steadily declines over time based on expected future cash flows. | |||||||
The following table sets forth the components of the intangible assets acquired. | |||||||
Fair Value | Estimated Useful Lives | ||||||
(in millions) | |||||||
Directory services agreements | $ | 145 | 5 years | ||||
Client relationships | 420 | 3 years | |||||
Trademarks and domain names | 60 | 5 years | |||||
Patented technologies | 10 | 4 years | |||||
Total fair value of intangible assets acquired | $ | 635 | |||||
Deferred Revenue, Deferred Directory Costs, and Unbilled Accounts Receivable | |||||||
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 do not have any future value since SuperMedia has already incurred the costs to produce the clients' advertising and does 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. The exclusion of these results from the consolidated statements of comprehensive income (loss) of Dex Media, did not impact our cash flows. | |||||||
In connection with acquisition accounting, the fair value of SuperMedia's unbilled accounts receivable was determined to be $316 million. Unbilled accounts receivable represents amounts that are not billable at the balance sheet date, but are billed over the remaining life of the clients' advertising contracts. | |||||||
Results of SuperMedia | |||||||
As a result of acquisition accounting, SuperMedia's historical results through April 30, 2013 have not been included in the Company's consolidated results. | |||||||
Merger Transaction Costs | |||||||
The Company cumulatively incurred $42 million of merger transaction costs. Of this amount, $8 million represents deferred financing costs associated with the amendments of Dex One's senior secured credit facilities. This amount was recorded to other assets on the Company's consolidated balance sheet and will be amortized to interest expense over the remaining term of the related Dex One senior secured credit facilities using the effective interest method. The remainder of these costs, which include one-time costs associated with investment bankers, legal, and professional fees, were expensed as part of general and administrative expense on the Company's consolidated statements of comprehensive income (loss). Of these costs, $22 million and $12 million were incurred and expensed during the years ended December 31, 2013 and 2012, respectively. No merger transaction costs were incurred during the year ended December 31, 2014. For additional information on merger related costs, see Note 4. | |||||||
Pro Forma Information | |||||||
The unaudited pro forma information below presents the combined operating results of Dex Media, with results prior to the acquisition date adjusted, as if the transaction had occurred January 1, 2012. These pro forma adjustments include adjustments associated with the amortization of the acquired intangible assets, the elimination of merger transaction costs, the impacts of the adjustment to interest expense to reflect the incremental change in interest rates associated with credit facility interest rate amendments, the amortization of deferred financing costs associated with Dex One and the amortization of the long-term debt fair value adjustment to SuperMedia's senior secured credit facility. The 2012 pro forma results have also been adjusted to exclude the estimated impact to revenue and expense of SuperMedia's deferred revenue and deferred directory costs and bad debt provision associated with directories published prior to the transaction that, due to acquisition accounting, would not have been recognized during 2012 assuming the transaction had occurred on January 1, 2012. The 2013 pro forma results have been adjusted to include the operating results of SuperMedia from January 1, 2013 to April 30, 2013 and the impact to revenue and expense associated with SuperMedia's deferred revenue and deferred directory cost estimates associated with directories published between January 1, 2013 and April 30, 2013, which were written off as a result of acquisition accounting as of April 30, 2013 and thus not recognized in our GAAP operating results. | |||||||
The historical financial information has been adjusted to give effect to pro forma events that are (1) directly attributable to the acquisition, (2) factually supportable and (3) expected to have a continuing impact on the combined results of Dex One and SuperMedia. The unaudited pro forma results below are presented for illustrative purposes only and do not reflect the realization of potential cost savings. These pro forma results do not purport to be indicative of the results that would have actually been obtained if the merger had occurred on January 1, 2012, nor does the pro forma data intend to be a projection of results that may be obtained in the future. | |||||||
Unaudited Pro Forma Results | |||||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Operating revenue | $ | 2,184 | $ | 2,070 | |||
Net (loss) | $ | (621 | ) | $ | (141 | ) |
Goodwill_Intangible_Assets_and
Goodwill, Intangible Assets and Impairment | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill, Intangible Assets and Impairment | Goodwill, Intangible Assets and Impairment | |||||||||||||||||||
Goodwill | ||||||||||||||||||||
The Company has goodwill of $315 million at December 31, 2014. The Company has four reporting units, R.H. Donnelley Inc. ("RHD"), Dex Media East, Inc. ("DME"), Dex Media West, Inc. ("DMW"), and SuperMedia, however, only the SuperMedia reporting unit has goodwill. The Company performed its annual impairment test of goodwill as of October 1, 2014. The Company determined the fair value of the SuperMedia reporting unit exceeded the carrying value of the reporting unit; therefore there was no impairment of goodwill. | ||||||||||||||||||||
In performing step one of the impairment test, the Company estimated the fair value of the SuperMedia reporting unit using a combination of the income and market approaches with greater emphasis placed on the income approach, for purposes of estimating the total enterprise value of the SuperMedia reporting unit. | ||||||||||||||||||||
The income approach was based on a discounted cash flow analysis and calculated the fair value of the reporting unit by estimating the after-tax cash flows attributable to the reporting unit and then discounting the after-tax cash flows to a present value, using the weighted average cost of capital (“WACC”). The WACC utilized in the Company’s analysis using the income approach was 17.5%. The WACC is an estimate of the overall after-tax rate of return required for equity and debt holders of a business enterprise. The reporting unit’s cost of equity and debt was developed based on data and factors relevant to the economy, the industry and the reporting unit. The cost of equity was estimated using the capital asset pricing model (“CAPM”). The CAPM uses a risk-free rate of return and an appropriate market risk premium for equity investments and the specific risks of the investment. The analysis also included comparisons to a group of guideline companies engaged in the same or similar businesses. The cost of debt was estimated using the current after-tax average borrowing cost that a market participant would expect to pay to obtain its debt financing assuming the target capital structure. | ||||||||||||||||||||
To determine the fair value of the SuperMedia reporting unit based on the market approach, the Company utilized the guideline publicly traded company method. Under the guideline publicly traded company method, market multiples ratios were applied to the reporting unit’s earnings with consideration given to the Company’s size, product offerings, growth and other relevant factors compared to those guideline companies. The guideline companies selected were engaged in the same or similar line of business as the Company. Market multiples were then selected based on consideration of risk, growth and profitability differences between the Company and the guideline companies. The selected market multiples were then multiplied by the Company’s 2015 forecasted earnings to arrive at an estimate of fair value for the Company. | ||||||||||||||||||||
The fair value estimates used in the goodwill impairment analysis required significant judgment. The Company’s fair value estimates for purposes of assessing goodwill for impairment are considered Level 3 fair value measurements. We based our fair value estimates on assumptions of future revenues and operating margins and assumptions about the overall economic climate and the competitive environment of our business. Our estimates assume revenue will decline into the foreseeable future. There can be no assurances that our estimates and assumptions will prove to be accurate predictions of the future. If our assumptions regarding business plans, competitive environments or anticipated operating results are not correct, we may be required to record goodwill impairment charges in the future. | ||||||||||||||||||||
When the Company performed its annual impairment test of goodwill as of October 1, 2013 on the SuperMedia reporting unit, it was determined that the carrying value of the SuperMedia reporting unit including goodwill exceeded the fair value of the SuperMedia reporting unit, requiring the Company to perform step two of the goodwill impairment test to determine the amount of impairment loss, if any. In performing step two of the goodwill impairment test, the Company compared the implied fair value of the SuperMedia reporting unit’s goodwill to its carrying value of goodwill. This test resulted in a goodwill impairment of $74 million, which was recognized as impairment charge in the Company’s consolidated statement of comprehensive income (loss) for the year ended December 31, 2013. This charge had no impact on our cash flows or on our compliance with debt covenants. | ||||||||||||||||||||
The following table sets forth the balance of the Company’s goodwill and accumulated impairment losses as of December 31, 2014 and 2013. | ||||||||||||||||||||
Goodwill | Accumulated | Goodwill | ||||||||||||||||||
Gross | Impairment Losses | Net | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Beginning balance at January 1, 2013 | $ | — | $ | — | $ | — | ||||||||||||||
Additions | 389 | — | 389 | |||||||||||||||||
Impairments | — | (74 | ) | (74 | ) | |||||||||||||||
Ending balance at December 31, 2013 | 389 | (74 | ) | 315 | ||||||||||||||||
Additions | — | — | — | |||||||||||||||||
Impairments | — | — | — | |||||||||||||||||
Ending balance at December 31, 2014 | $ | 389 | $ | (74 | ) | $ | 315 | |||||||||||||
Goodwill of $389 million was established as a result of the merger with SuperMedia on April 30, 2013, and represented the expected synergies and residual benefits that Dex Media believes will result from the combined operations. The Company determined that the $389 million of acquired goodwill is not deductible for tax purposes. For additional information related to goodwill and the merger with SuperMedia, see Note 2. | ||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||
The Company has definite-lived intangible assets of $794 million as of December 31, 2014. Intangible assets are recorded separately from goodwill if they meet certain criteria. The Company reviews its definite-lived intangible assets whenever events or circumstances indicate that their carrying value may not be recoverable. The Company evaluated its definite-lived assets for potential impairment and determined they were not impaired as of December 31, 2014. | ||||||||||||||||||||
For the impairment test, the Company’s definite-lived intangible assets were evaluated for each reporting unit, which is the lowest level of identifiable cash flows. The impairment test was performed by comparing the carrying value of each reporting unit, including goodwill with the undiscounted expected future cash flows associated with each respective reporting unit. The undiscounted expected future cash flows were computed utilizing the income approach. For reporting units where the carrying value of the reporting unit exceeded the undiscounted expected future cash flows of the respective reporting unit, the Company then compared the carrying value of each of the reporting units to the fair value of each impacted reporting unit. The Company estimated the fair value of the impacted reporting units using a combination of the income and market approaches with greater emphasis placed on the income approach, for purposes of estimating the total enterprise value of the reporting unit. The Company’s fair value estimates for purposes of assessing intangible assets for impairment are considered Level 3 fair value measurements. | ||||||||||||||||||||
The Company evaluated its definite-lived intangible assets for potential impairment and determined there were indicators of impairment as of October 1, 2013. As a result, the Company recorded an impairment of $384 million for the year ended December 31, 2013 and is shown as impairment charge on the Company's consolidated statement of comprehensive income (loss). The impairment reduced the carrying value of the definite-lived assets of each of the impacted reporting units on a pro rata basis using the relative carrying amounts of those assets. None of the carrying amounts were reduced below their respective fair value. | ||||||||||||||||||||
The following table sets forth the Company's 2013 impairment charge by type of intangible asset. | ||||||||||||||||||||
Impairment Charge | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Directory services agreements | $ | 253 | ||||||||||||||||||
Client relationships | 38 | |||||||||||||||||||
Trademarks and domain names | 86 | |||||||||||||||||||
Patented technologies | 7 | |||||||||||||||||||
Total impairment charge | $ | 384 | ||||||||||||||||||
The following table sets forth the details of the Company's intangible assets at December 31, 2014 and 2013. | ||||||||||||||||||||
At December 31, 2014 | At December 31, 2013 | |||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||
(in millions) | ||||||||||||||||||||
Directory services agreements | $ | 666 | $ | 307 | $ | 359 | $ | 666 | $ | 97 | $ | 569 | ||||||||
Client relationships | 924 | 649 | 275 | 924 | 348 | 576 | ||||||||||||||
Trademarks and domain names | 222 | 91 | 131 | 222 | 29 | 193 | ||||||||||||||
Patented technologies | 42 | 16 | 26 | 42 | 4 | 38 | ||||||||||||||
Advertising commitment | 11 | 8 | 3 | 11 | 6 | 5 | ||||||||||||||
Total intangible assets | $ | 1,865 | $ | 1,071 | $ | 794 | $ | 1,865 | $ | 484 | $ | 1,381 | ||||||||
The Company evaluated the estimated remaining useful lives of its intangible assets as of December 31, 2014 and concluded that the estimated remaining lives were appropriate. | ||||||||||||||||||||
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. | ||||||||||||||||||||
On October 1, 2013, the Company evaluated the estimated remaining useful lives of its intangible assets and concluded that the estimated remaining useful lives needed to be shortened to properly reflect the remaining period that each intangible life would contribute to future cash flows. | ||||||||||||||||||||
Amortization expense for intangible assets for the years ended December 31, 2014, 2013 and 2012 was $587 million, $703 million and $350 million respectively. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including amortization expense for intangible assets, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||||||
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. |
Merger_Transaction_and_Integra
Merger Transaction and Integration Costs | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Business Combinations [Abstract] | ||||||||||
Merger Transaction and Integration Costs | Merger Transaction and Integration Costs | |||||||||
Merger transaction costs represent costs associated with completing the merger between Dex One and SuperMedia. | ||||||||||
The Company cumulatively incurred $42 million of merger transaction costs. Of this amount, $8 million represents deferred financing costs associated with the amendments of Dex One's senior secured credit facilities. This amount was recorded to other assets on the Company's consolidated balance sheet and will be amortized to interest expense over the remaining term of the related Dex One senior secured credit facilities using the effective interest method. The remainder of these costs, which include one-time costs associated with investment bankers, legal, and professional fees, were expensed as part of general and administrative expense on the Company's consolidated statements of comprehensive income (loss). Of these costs, $22 million and $12 million were incurred and expensed during the years ended December 31, 2013 and 2012, respectively, and were reflected as general and administrative expense on the Company's consolidated statements of comprehensive income (loss). No merger transaction costs were incurred during the year ended December 31, 2014. | ||||||||||
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 income (loss). During the years ended December 31, 2014 and 2013, the Company incurred $41 million and $54 million, respectively, of merger integration costs, of which $13 and $32 million, respectively, represents severance costs. | ||||||||||
The following table sets forth merger transaction and merger integration costs recognized for the years ended December 31, 2014, 2013 and 2012. | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Merger transaction costs | $ | — | $ | 22 | $ | 12 | ||||
Merger integration costs | 41 | 54 | — | |||||||
Total merger related costs | $ | 41 | $ | 76 | $ | 12 | ||||
As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including merger transaction and integration costs, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. |
Business_Transformation_Costs
Business Transformation Costs | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [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, and to be incurred in 2014 and throughout 2015. | |||||||||||||
During the year ended December 31, 2014, the Company recorded a severance charge associated with the business transformation program of $43 million, which includes severance associated with our former President and Chief Executive Officer, our former Executive Vice President - Chief Financial Officer and Treasurer, and our former Executive Vice President - Operations of $10 million. The total severance charge was recorded in accordance with the Company’s existing severance program, without enhancement, and represents the cost of the Company's workforce reduction plan to lay off approximately 1,000 employees, beginning in the fourth quarter of 2014 and continuing through 2015. | |||||||||||||
Business transformation costs are recorded as general and administrative expense in our 2014 consolidated statement of comprehensive income (loss). | |||||||||||||
The following table reflects the severance liability associated with the program as of December 31, 2014. | |||||||||||||
Beginning Balance | Ending Balance | ||||||||||||
1-Jan-14 | Expense | Payments | 31-Dec-14 | ||||||||||
(in millions) | |||||||||||||
Severance | $ | — | $ | 43 | $ | (5 | ) | $ | 38 | ||||
Additional charges associated with lease terminations, costs associated with system consolidations and relocation costs will be incurred beginning in 2015. |
Additional_Financial_Informati
Additional Financial Information | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||
Additional Financial Information | Additional Financial Information | |||||||||||||||||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
General and administrative expense | ||||||||||||||||||||||||||||||
The Company’s general and administrative expense for the year ended December 31, 2014 includes certain charges and one-time credits to expense. During the year ended December 31, 2014 , the Company recorded a $29 million credit to expense associated with plan amendments that reduced benefits associated with the Company's long-term disability plans. Also during the year ended December 31, 2014, the Company recorded a $13 million credit to expense associated with the settlement of plan amendments related to other post-employment benefits ("OPEB"), which eliminated the Company's obligation to provide a subsidy for retiree health care. Additionally, during the year ended December 31, 2014, the Company recorded a $10 million credit to expense associated with the settlement of a liability under a publishing agreement and $5 million in credits to expense associated with the reduction of certain operating tax liabilities. | ||||||||||||||||||||||||||||||
The Company recorded severance costs of $56 million, $32 million and $5 million during the years ended December 31, 2014, 2013 and 2012, respectively. Of the $56 million incurred in the year ended December 31, 2014, $43 million was included as part of our business transformation costs and $13 million was included as part of our merger integration costs. The $32 million incurred in the year ended December 31, 2013, was included as part of our merger integration costs. | ||||||||||||||||||||||||||||||
Sale of assets held for sale | ||||||||||||||||||||||||||||||
The Company sold its land and a building in Los Alamitos, CA in the fourth quarter of 2014 for $13 million, which resulted in a gain of $1 million. These assets were reported as assets held for sale on the Company's consolidated balance sheet as of December 31, 2013. During the years ended December 31, 2014 and 2013, the Company recorded a $3 million and $5 million charge, respectively, to adjust the property to its fair value. These charges and the gain associated with the sale of the property in Los Alamitos, CA were recorded to general and administrative expense in the Company's consolidated statement of comprehensive income (loss). | ||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||
The following tables set forth the components of the Company's depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Amortization of intangible assets | $ | 587 | $ | 703 | $ | 350 | ||||||||||||||||||||||||
Amortization of capitalized software | 38 | 43 | 53 | |||||||||||||||||||||||||||
Depreciation of fixed assets | 18 | 19 | 16 | |||||||||||||||||||||||||||
Total depreciation and amortization | $ | 643 | $ | 765 | $ | 419 | ||||||||||||||||||||||||
As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including depreciation and amortization expense, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||||||
The Company recorded interest expense, net of $356 million, $316 million and $196 million for the years ended December 31, 2014, 2013 and 2012, respectively. Interest expense, net consists primarily of interest expense associated with our debt obligations, non-cash interest expense associated with the amortization of debt discount, 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 $93 million, $69 million and $40 million for the years ended December 31, 2014, 2013 and 2012, respectively. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including interest expense, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||||||||||||||||
Reorganization items | ||||||||||||||||||||||||||||||
In accordance with ASC 852 “Reorganizations" ("ASC 852"), reorganization items represent charges that are directly associated with the process of reorganizing the business under Chapter 11 of the Bankruptcy Code. For the year ended December 31, 2013, the Company recorded $38 million of reorganization items on the consolidated statement of comprehensive income (loss) of which $32 million relates to the write off of the remaining unamortized debt fair value adjustment associated with Dex One debt obligations and $6 million of professional fees. | ||||||||||||||||||||||||||||||
In conjunction with Dex One's adoption of fresh start accounting, after bankruptcy emergence on February 1, 2010, an adjustment was recorded to reflect Dex One's outstanding debt obligations at their fair value. A total discount of $120 million was recorded and was amortized as an increase to interest expense, until our filing for bankruptcy on March 18, 2013, to effectuate the merger. The write-off of remaining unamortized debt fair value adjustment of $32 million is associated with Dex One's debt obligations, which were classified as liabilities subject to compromise at March 31, 2013. ASC 852 specifies that when debt classified as liabilities subject to compromise is an allowed claim, and the allowed claim differs from the net carrying amount of the debt, the carrying amount shall be adjusted to the amount of the allowed claim. The gain or loss resulting from this adjustment shall be recognized as a reorganization item. Based on our plan of reorganization and approved first-day motions of the Bankruptcy Court, the allowed debt holder claims equaled the outstanding face value of debt obligations and excluded the unamortized debt fair value adjustment associated with Dex One's debt obligations. Therefore, we recognized the remaining unamortized debt fair value adjustment as a reorganization item during the year ended December 31, 2013, which resulted in the adjustment of the carrying amount of Dex One's debt obligations to their face value. | ||||||||||||||||||||||||||||||
Balance Sheet | ||||||||||||||||||||||||||||||
The following table sets forth additional financial information related to the Company's allowance for doubtful accounts at December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 26 | $ | 20 | $ | 36 | ||||||||||||||||||||||||
Additions charged to revenue/expense (1) | 51 | 37 | 46 | |||||||||||||||||||||||||||
Deductions (2) | (47 | ) | (39 | ) | (62 | ) | ||||||||||||||||||||||||
Charged to other account | — | 8 | — | |||||||||||||||||||||||||||
Ending balance at December 31 | $ | 30 | $ | 26 | $ | 20 | ||||||||||||||||||||||||
(1) - Includes bad debt expense and sales allowance (recorded as contra revenue). | ||||||||||||||||||||||||||||||
(2) - Amounts written off as uncollectible, net of recoveries and sales adjustments. | ||||||||||||||||||||||||||||||
As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including allowance for doubtful accounts activity, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||||||||||||||||||
The following table sets forth additional financial information related to the Company's accounts payable and accrued liabilities at December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Accounts payable | $ | 14 | $ | 20 | ||||||||||||||||||||||||||
Accrued salaries and wages | 48 | 44 | ||||||||||||||||||||||||||||
Accrued severance | 39 | 5 | ||||||||||||||||||||||||||||
Accrued taxes | 16 | 21 | ||||||||||||||||||||||||||||
Accrued expenses | 31 | 56 | ||||||||||||||||||||||||||||
Customer refunds, advance payments and other | 19 | 20 | ||||||||||||||||||||||||||||
Total accounts payable and accrued liabilities | $ | 167 | $ | 166 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||
The following tables set forth the components of the Company's comprehensive income (loss) adjustments for pension and other post-employment benefits for the years ended December 31, 2014, 2013 and 2012. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Gross | Taxes | Net | Gross | Taxes | Net | Gross | Taxes | Net | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Net income (loss) | $ | (371 | ) | $ | (819 | ) | $ | 41 | ||||||||||||||||||||||
Adjustments for pension and other post-employment benefits: | ||||||||||||||||||||||||||||||
Accumulated actuarial losses of benefit plans | $ | (39 | ) | $ | (4 | ) | (43 | ) | $ | 11 | $ | (4 | ) | 7 | $ | (21 | ) | $ | — | (21 | ) | |||||||||
Reclassifications included in net income (loss): | ||||||||||||||||||||||||||||||
Amortization of actuarial losses | — | — | — | 3 | (1 | ) | 2 | 1 | — | 1 | ||||||||||||||||||||
Settlement losses | 1 | (1 | ) | — | 2 | (1 | ) | 1 | 4 | — | 4 | |||||||||||||||||||
Settlement of plan amendments | (13 | ) | 5 | (8 | ) | — | — | — | — | — | — | |||||||||||||||||||
Total reclassifications included in net income (loss) | (12 | ) | 4 | (8 | ) | 5 | (2 | ) | 3 | 5 | — | 5 | ||||||||||||||||||
Adjustments for pension and other post-employment benefits | $ | (51 | ) | $ | — | (51 | ) | $ | 16 | $ | (6 | ) | 10 | $ | (16 | ) | $ | — | (16 | ) | ||||||||||
Total comprehensive income (loss) | $ | (422 | ) | $ | (809 | ) | $ | 25 | ||||||||||||||||||||||
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 and other post-employment benefits. | ||||||||||||||||||||||||||||||
Gross | Taxes | Net | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Accumulated other comprehensive (loss) - December 31, 2012 | $ | (47 | ) | $ | 3 | $ | (44 | ) | ||||||||||||||||||||||
Adjustments for pension and other post-employment benefits, net of amortization | 16 | (6 | ) | 10 | ||||||||||||||||||||||||||
Accumulated other comprehensive (loss) - December 31, 2013 | $ | (31 | ) | $ | (3 | ) | $ | (34 | ) | |||||||||||||||||||||
Adjustments for pension and other post-employment benefits, net of amortization | (51 | ) | — | (51 | ) | |||||||||||||||||||||||||
Accumulated other comprehensive (loss) - December 31, 2014 | $ | (82 | ) | $ | (3 | ) | $ | (85 | ) | |||||||||||||||||||||
The taxes recorded in accumulated other comprehensive (loss) includes a valuation allowance of $34 million and $14 million, at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||
Cash Flow | ||||||||||||||||||||||||||||||
Cash interest paid on our debt obligations were $269 million, $254 million and $165 million for the years ended December 31, 2014, 2013 and 2012, respectively. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including cash interest paid, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. |
Fixed_Assets_and_Capitalized_S
Fixed Assets and Capitalized Software | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Fixed Assets and Capitalized Software | Fixed Assets and Capitalized Software | ||||||
The following table sets forth the details of the Company's fixed assets and capitalized software as of December 31, 2014 and 2013. | |||||||
At December 31, | |||||||
2014 | 2013 | ||||||
(in millions) | |||||||
Land, buildings and building improvements | $ | 14 | $ | 14 | |||
Leasehold improvements | 13 | 21 | |||||
Computer and data processing equipment | 46 | 37 | |||||
Furniture and fixtures | 18 | 20 | |||||
Capitalized software | 225 | 222 | |||||
Other | 1 | 1 | |||||
Fixed assets and capitalized software | 317 | 315 | |||||
Less accumulated depreciation and amortization | 253 | 209 | |||||
Fixed assets and capitalized software, net | $ | 64 | $ | 106 | |||
Depreciation and amortization expense associated with fixed assets and capitalized software for the years ended December 31, 2014, 2013 and 2012 was $56 million, $62 million and $69 million, respectively. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including depreciation and amortization expense, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
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 December 31, 2014 and 2013. | ||||||||||||||
Interest Rates | Carrying Value | |||||||||||||
At December 31, | At December 31, | |||||||||||||
Maturity | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | ||||||||||||||
Senior secured credit facilities | ||||||||||||||
SuperMedia Inc. | 31-Dec-16 | 11.6 | % | 11.6 | % | $ | 841 | $ | 935 | |||||
R.H. Donnelly Inc. | 31-Dec-16 | 9.75 | % | 9.75 | % | 612 | 685 | |||||||
Dex Media East, Inc. | 31-Dec-16 | 6 | % | 6 | % | 354 | 426 | |||||||
Dex Media West, Inc. | 31-Dec-16 | 8 | % | 8 | % | 337 | 393 | |||||||
Senior subordinated notes | 29-Jan-17 | 14 | % | 14 | % | 252 | 236 | |||||||
Total debt | 2,396 | 2,675 | ||||||||||||
Less: current maturities of long-term debt | 124 | 154 | ||||||||||||
Long-term debt | $ | 2,272 | $ | 2,521 | ||||||||||
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. The unamortized portion of the SuperMedia discount as of December 31, 2014 was $203 million. The SuperMedia fair value adjustment reduction was the result of non-cash interest amortization expense of $74 million and $46 million for the years ended December 31, 2014 and 2013, respectively, and reductions of $11 million and $26 million recorded as an offset to the gain on early extinguishment of debt associated with the repurchase of SuperMedia debt below par value during the years ended December 31, 2014 and 2013, respectively. The par value of SuperMedia's debt obligation at December 31, 2014 was $1,044 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 December 31, 2014, the Company has deferred debt issuance costs of $4 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 agreements for each of Dex Media East, Inc. (“DME”), Dex Media West, Inc. (“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, 2014 and September 30, 2014, the Company made interest payments of 50% in cash and 50% in PIK interest resulting in the issuance of an additional $16 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. | ||||||||||||||
Future Principal Payments | ||||||||||||||
Future principal payments on debt obligations are as follows. | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2015 | 2016 | 2017 | ||||||||||||
(in millions) | ||||||||||||||
Future principal payments | $ | 124 | $ | 2,223 | $ | 252 | ||||||||
The amounts shown in the table above represent the required amortization payments for RHD, DME and DMW for 2015 and any unpaid sweep obligations from 2014. No estimate has been made for future sweep obligations for these periods as these payments cannot be reasonably estimated. Payments in 2016 include the remaining principal payments upon maturity of the senior secured credit facilities. Payments in 2017 represent the payment of the senior subordinated notes upon their maturity based on the December 31, 2014 principal amount due. All principal amounts in the table reflect the face value of the debt instruments. | ||||||||||||||
2014 and 2013 Principal Payments | ||||||||||||||
During the year ended December 31, 2014, the Company retired debt obligations of $381 million, under its senior secured credit facilities utilizing cash of $367 million. The Company made mandatory and accelerated principal payments, at par, of $292 million. On June 16, 2014 the Company repurchased and retired debt of $54 million utilizing cash of $46 million in accordance with the terms and conditions of its senior secured credit facilities. This transaction resulted in no gain/(loss) being recorded by the Company ($8 million gain offset by a $7 million write-off of SuperMedia's unamortized debt fair value adjustment and $1 million in administrative fees). In addition, on September 16, 2014 the Company repurchased and retired debt of $35 million utilizing cash of $29 million in accordance with the terms and conditions of its senior secured credit facilities. This transaction resulted in a gain of $2 million being recorded by the Company ($6 million gain offset by a $4 million write-off of SuperMedia's unamortized debt fair value adjustment and less than $1 million in administrative fees). These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $16 million, on the Company's senior subordinated notes. | ||||||||||||||
During the year ended December 31, 2013, the Company retired debt obligations of $541 million, under its senior secured credit facilities utilizing cash of $505 million. The Company made mandatory and accelerated principal payments, at par, of $404 million. On November 25, 2013 the Company repurchased and retired debt of $137 million utilizing cash of $101 million in accordance with the terms and conditions of its senior secured credit facilities. This transaction resulted in the Company recording a gain of $9 million ($36 million gain offset by a $26 million write-off of SuperMedia's unamortized debt fair value adjustment and $1 million in administrative fees and other adjustments). These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $16 million, on the Company's senior subordinated notes. | ||||||||||||||
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, 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 and the merger, consolidation or sale of all or substantially all of its property. | ||||||||||||||
As of December 31, 2014, the Company was in compliance with all of the Financial Covenants in 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. | ||||||||||||||
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 EBITDA that is used for the leverage ratio covenant measure. This amendment permits the exclusion of these cash expenditures up to $15 million in 2015 and $5 million in 2016. | ||||||||||||||
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 collateralization 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. |
Commitments
Commitments | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments | Commitments | |||
We lease office facilities and equipment under operating leases with non-cancelable lease terms expiring at various dates through 2019. Rent and lease expense of the Company for the years ended December 31, 2014, 2013 and 2012 was $25 million, $26 million and $19 million, respectively. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including rent and lease expense, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||
The future non-cancelable minimum rental obligations applicable to operating leases at December 31, 2014 are as follows. | ||||
Minimum Rental Obligations | ||||
(in millions) | ||||
2015 | $ | 21 | ||
2016 | 17 | |||
2017 | 13 | |||
2018 | 9 | |||
2019 | 2 | |||
Thereafter | — | |||
Total | $ | 62 | ||
We are obligated to pay an outsource service provider approximately $27 million over the years 2012 through 2017 for data center/server assessment, migration and ongoing management and administration services. As of December 31, 2014, approximately $10 million remains outstanding under this obligation. |
Employee_Benefits
Employee Benefits | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||
Employee Benefits | Employee Benefits | |||||||||||||||||||
Pension and Other Post-Employment 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. New mortality tables were published in the fourth quarter of 2014 which reflect improved life expectancies. The Company has adopted these tables resulting in an increase to our pension obligation of approximately $38 million. | ||||||||||||||||||||
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. On January 25, 2014, the Company reached an agreement with certain unions to freeze the SuperMedia Pension Plan for Collectively Bargained Employees. Accordingly, effective April 1, 2014, no employees accrue future pension benefits under any of the pension plans. The Company recorded a curtailment gain of $2 million in 2014 associated with the Union pension plan freeze. | ||||||||||||||||||||
Other Post-Employment Benefits | ||||||||||||||||||||
Prior to January 25, 2014, the Company was obligated to provide other post-employment benefits ("OPEB"), which included post-employment health care and life insurance plans for certain of the Company's retirees. On January 25, 2014, the Company enacted plan amendments to its OPEB plans, and reached an agreement with certain unions to eliminate the Company's obligation as of April 1, 2014. As a result of the settlement of these plan amendments, the Company recorded a credit of $13 million to general and administrative expense in its consolidated statement of comprehensive (loss) during the year ended December 31, 2014. | ||||||||||||||||||||
Components of Net Periodic Cost (Income) | ||||||||||||||||||||
The net periodic cost (income) of the pension plans and post-employment health care and life for the years ended December 31, 2014, 2013 and 2012 are shown in the following table. | ||||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Service cost | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | ||||||||
Interest cost | 28 | 22 | 11 | — | 1 | — | ||||||||||||||
Expected return on assets | (37 | ) | (31 | ) | (14 | ) | — | — | — | |||||||||||
Actuarial loss, net | — | 3 | 1 | — | — | — | ||||||||||||||
Prior service cost | — | — | — | — | — | — | ||||||||||||||
Settlement (gains) losses | 1 | 2 | 4 | (13 | ) | — | — | |||||||||||||
Net periodic cost (income) | $ | (8 | ) | $ | (3 | ) | $ | 2 | $ | (13 | ) | $ | 1 | $ | — | |||||
As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including net periodic cost (income), of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||||||
For the years ended December 31, 2014, 2013, and 2012, the Company recorded pension settlement losses of $1 million, $2 million and $4 million, respectively, 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. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including pension settlement (gains) losses, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||||||
For the year ended December 31, 2014, the Company recorded a $13 million credit to expense 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. | ||||||||||||||||||||
The following table shows the weighted-average assumptions used for determining net periodic benefit cost (income), for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.77 | % | 3.85 | % | 4.8 | % | — | % | 4.18 | % | — | |||||||||
Expected return on plan assets | 6.47 | % | 6.47 | % | 7.5 | % | — | — | — | |||||||||||
Rate of compensation increase | 3.5 | % | 3.5 | % | — | — | % | 3.5 | % | — | ||||||||||
Initial trend rate-pre Medicare | — | — | — | — | % | 8.25 | % | — | ||||||||||||
Initial trend rate-post Medicare | — | — | — | — | % | 7.25 | % | — | ||||||||||||
Ultimate trend rate | — | — | — | — | % | 5 | % | — | ||||||||||||
Year attained | — | — | — | — | 2020 | — | ||||||||||||||
Effective January 1, 2012, Dex One eliminated its OPEB liability and therefore, no assumptions were required in 2012. With the merger, SuperMedia's OPEB liability was acquired on April 30, 2013. Effective, April 1, 2014, the Company eliminated all remaining OPEB liabilities and any associated assumptions. | ||||||||||||||||||||
Benefit Obligations and Plan Assets | ||||||||||||||||||||
The following table summarizes the benefit obligations, plan assets and funded status associated with pension and other post-employment benefit plans for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Change in Benefit Obligations | ||||||||||||||||||||
At January 1 | $ | 645 | $ | 256 | $ | 15 | $ | — | ||||||||||||
Acquisition of SuperMedia plans on April 30, 2013 | — | 506 | — | 22 | ||||||||||||||||
Service cost | — | 1 | — | — | ||||||||||||||||
Interest cost | 28 | 22 | — | 1 | ||||||||||||||||
Actuarial loss (gain), net | 115 | (59 | ) | 1 | 2 | |||||||||||||||
Benefits paid | (81 | ) | (81 | ) | — | (10 | ) | |||||||||||||
Curtailment (gain) | (2 | ) | — | — | — | |||||||||||||||
Settlement of plan amendments (gain) | — | — | (16 | ) | — | |||||||||||||||
Benefit obligations at December 31 | $ | 705 | $ | 645 | $ | — | $ | 15 | ||||||||||||
Change in Plan Assets | ||||||||||||||||||||
At January 1 | $ | 618 | $ | 178 | $ | — | $ | — | ||||||||||||
SuperMedia assets received on April 30, 2013 | — | 531 | — | — | ||||||||||||||||
Plan contributions | 9 | 5 | — | — | ||||||||||||||||
Actual return (loss) on plan assets | 96 | (15 | ) | — | — | |||||||||||||||
Benefits paid | (81 | ) | (81 | ) | — | — | ||||||||||||||
Plan assets at December 31 | $ | 642 | $ | 618 | $ | — | $ | — | ||||||||||||
Funded Status at December 31 (plan assets less benefit obligations) | $ | (63 | ) | $ | (27 | ) | $ | — | $ | (15 | ) | |||||||||
The accumulated benefit obligation for all defined benefit pension plans was $705 million and $643 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company made cash contributions of $7 million and $4 million, respectively, to qualified pension plans as required under pension accounting guidelines. | ||||||||||||||||||||
Contributions to plan assets for non-qualified pension plans and associated payments were $2 million for the year ended December 31, 2014, and $1 million for the year ended December 31,2013. | ||||||||||||||||||||
The following table sets forth the amounts recognized in the Company’s consolidated balance sheets at December 31, 2014 and 2013. | ||||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
At December 31, | At December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Non-current assets | $ | 45 | $ | 41 | $ | — | $ | — | ||||||||||||
Current liabilities | (1 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Non-current liabilities | (107 | ) | (67 | ) | — | (14 | ) | |||||||||||||
Net asset (liability) at December 31 | $ | (63 | ) | $ | (27 | ) | $ | — | $ | (15 | ) | |||||||||
Identified below are amounts associated with the pension plans that have an accumulated benefit obligation greater than plan assets as of December 31, 2014 and 2013. | ||||||||||||||||||||
At December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Accumulated benefit obligation | $ | 428 | $ | 386 | ||||||||||||||||
Projected benefit obligation | 428 | 389 | ||||||||||||||||||
Plan assets | 320 | 321 | ||||||||||||||||||
The unrecognized net actuarial losses (pre-tax) recorded in accumulated other comprehensive income (loss), for the years ended December 31, 2014 and 2013, are shown below. | ||||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Unrecognized actuarial (loss), net | $ | (82 | ) | $ | (29 | ) | $ | — | $ | (2 | ) | |||||||||
The unrecognized actuarial (loss) related to the pension plans that will be amortized from accumulated other comprehensive(loss) into net periodic benefit cost (income) over the next fiscal year is approximately $5 million. Unrecognized actuarial (losses) are amortized over the average remaining service of current participants when the loss exceeds a 10% corridor of the greater of the projected benefit obligation or the market-related value of assets. | ||||||||||||||||||||
The following table sets forth the weighted-average assumptions used for determining the benefit obligations for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 3.86 | % | 4.77 | % | — | % | 5.01 | % | ||||||||||||
Rate of compensation increase | — | % | 3.5 | % | — | % | 3.5 | % | ||||||||||||
Initial trend rate pre-Medicare | — | — | — | % | 8 | % | ||||||||||||||
Initial trend rate Medicare | — | — | — | % | 7.5 | % | ||||||||||||||
Ultimate trend rate | — | — | — | % | 5 | % | ||||||||||||||
Year attained | — | — | — | 2024 | ||||||||||||||||
The discount rate reflects the current rate at which the projected benefit obligations could be settled or paid out to participants at the end of the year. We determine our discount rate based on a range of factors, including a yield curve comprised of the rates of return on several hundred high-quality, fixed-income corporate bonds available on the measurement date for the related expected duration for the obligations. | ||||||||||||||||||||
Expected Cash Flows | ||||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company made cash contributions of $7 million and $4 million, respectively, to qualified pension plans as required under pension accounting guidelines. In 2015, the Company anticipates making cash contributions of $4 million to its qualified pension plans. | ||||||||||||||||||||
The following table sets forth the expected future pension benefit payments. | ||||||||||||||||||||
Expected Pension Benefit Payments | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2015 | $ | 71 | ||||||||||||||||||
2016 | 60 | |||||||||||||||||||
2017 | 56 | |||||||||||||||||||
2018 | 53 | |||||||||||||||||||
2019 | 51 | |||||||||||||||||||
2020 to 2024 | 219 | |||||||||||||||||||
Pension Plan Assets | ||||||||||||||||||||
The Company's overall investment strategy is to achieve a mix of assets, which allows us to meet projected benefits payments while taking into consideration risk and return. Depending on perceived market pricing and various other factors, we use both active and passive management approaches. | ||||||||||||||||||||
The fair values of the Company’s pension plan assets as of December 31, 2014 by asset category are as follows. | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(quoted prices in active markets) | (significant observable input) | (significant unobservable inputs) | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Cash and cash equivalents | $ | 50 | $ | 7 | $ | 43 | $ | — | ||||||||||||
Equity funds | 92 | — | 92 | — | ||||||||||||||||
U.S. treasuries and agencies | 228 | — | 228 | — | ||||||||||||||||
Corporate bonds | 16 | — | 16 | — | ||||||||||||||||
Other fixed income | 29 | — | 29 | — | ||||||||||||||||
Hedge funds | 227 | — | — | 227 | ||||||||||||||||
Total | $ | 642 | $ | 7 | $ | 408 | $ | 227 | ||||||||||||
The fair values of the Company’s pension plan assets as of December 31, 2013 by asset category are as follows. | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(quoted prices in active markets) | (significant observable input) | (significant unobservable inputs) | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Cash and cash equivalents | $ | 22 | $ | 4 | $ | 18 | $ | — | ||||||||||||
Equity funds | 96 | — | 96 | — | ||||||||||||||||
Equity securities | 20 | 20 | — | — | ||||||||||||||||
U.S. treasuries and agencies | 180 | — | 180 | — | ||||||||||||||||
Corporate bonds | 16 | — | 16 | — | ||||||||||||||||
Other fixed income | 26 | — | 26 | — | ||||||||||||||||
Hedge funds | 258 | — | — | 258 | ||||||||||||||||
Total | $ | 618 | $ | 24 | $ | 336 | $ | 258 | ||||||||||||
Cash and cash equivalents are comprised of cash and high-grade money market instruments with short-term maturities. Equity funds include two index funds; one domestic focused and one international focused. Equity securities are investments in public company stock. U.S. treasuries and agencies are fixed income investments in U.S. government or agency securities. Corporate bonds are investments in corporate debt. Other fixed income includes a fixed income mutual fund, fixed income investment in non-U.S. agencies, investments in asset backed securities, swaps and offsetting swap collateral. Fixed income investments are intended to protect the invested principal while paying out a regular income. The Company uses derivatives, such as swaps and futures, to mitigate interest rate risk in its pension plans. | ||||||||||||||||||||
Pension Plan Hedge Fund Investments | ||||||||||||||||||||
Hedge funds are private investment vehicles that manage portfolios of securities and use a variety of investment strategies with the objective to provide positive total returns regardless of market performance. Additionally, and when appropriate, derivatives are used to match a specific benchmark thus keeping assets fully invested. | ||||||||||||||||||||
The Company uses net asset value (“NAV”) to determine the fair value of all the underlying investments which do not have a readily determinable value, and either have the attributes of an investment company or prepare their financial statements consistent with the measurement principles of an investment company. As of December 31, 2014, the Company used NAV to value its hedge fund investments (Level 3 investments). These investments do not have readily available market values. | ||||||||||||||||||||
The following table sets forth the change in fair value of our hedge fund investments (Level 3 investments) for the year ended December 31, 2014. | ||||||||||||||||||||
Pension Plan Hedge Fund | ||||||||||||||||||||
Investments | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Ending Balance as of December 31, 2013 | $ | 258 | ||||||||||||||||||
Return on plan assets | 16 | |||||||||||||||||||
Purchases and sales | (47 | ) | ||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||
Ending Balance at December 31, 2014 | $ | 227 | ||||||||||||||||||
Our hedge fund investments are made through limited partnership interests in various hedge funds that employ different trading strategies. The Company has no unfunded commitments to these investments and has redemption rights with respect to its investments that range up to three years. As of December 31, 2014, no single hedge fund made up more that 3% of total pension plan assets. Examples of strategies followed by our hedge funds include directional strategies, relative value strategies and event driven strategies. A directional strategy entails taking a net long or short position in a market. Relative value seeks to take advantage of mispricing between two related and often correlated securities with the expectation that the pricing discrepancy will be resolved over time. Relative value strategies typically involve buying and selling related securities. An event driven strategy uses different investment approaches to profit from reactions to various events. Typically events can include acquisitions, divestitures or restructurings that are expected to affect individual companies and may include long and short positions in common and preferred stocks, as well as debt securities and options. | ||||||||||||||||||||
The weighted asset allocation percentages for the pension plans by asset category are shown in the table below, as of December 31, 2014 and 2013. | ||||||||||||||||||||
At December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Cash and cash equivalents | 7.7 | % | 3.4 | % | ||||||||||||||||
Fixed income investments | 42.5 | 35.9 | ||||||||||||||||||
Equity investments | 14.4 | 18.9 | ||||||||||||||||||
Hedge funds | 35.4 | 41.8 | ||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||
Prospective Pension Plan Investment Strategy | ||||||||||||||||||||
The Company is transitioning the asset allocation for the Dex One Retirement Account and the Dex Media, Inc. Pension Plan to a liability driven investment allocation. As of December 31, 2014 the Dex One Retirement Account and the Dex Media, Inc. Pension Plan assets were invested 50% in equities and 50% in fixed income investments. The target asset allocation for the SuperMedia Pension Plan for Management Employees and the SuperMedia Pension Plan for Collectively Bargained Employees is a range of 45-55% hedge fund investments, 40-55% fixed income investments and 0-15% cash and cash equivalents. While target allocation percentages will vary over time, the Company's overall investment strategy is to achieve a mix of assets, which allows us to meet projected benefits payments while taking into consideration risk and return. | ||||||||||||||||||||
Expected Rate of Return for Pension Assets | ||||||||||||||||||||
The expected rate of return for the pension assets represents the average rate of return to be earned on plan assets over the period the benefits are expected to be paid. The expected rate of return on the plan assets is developed from the expected future return on each asset class, weighted by the expected allocation of pension assets to that asset class. Historical performance is considered for the types of assets in which the plan invests. Independent market forecasts and economic and capital market considerations are also utilized. The 2015 expected rate of return for the Dex One Retirement Account and the Dex Media, Inc. Pension Plan is 7.0%. The 2015 expected rate of return for the SuperMedia Pension Plan for Management Employees and the SuperMedia Pension Plan for Collectively Bargained Employees is 6.0%. The expected rates of return used in 2014 and 2013 for the Dex One Retirement Account and the Dex Media, Inc. Pension Plans was 7.5% in both years. The actual rate of return on assets during 2014 and 2013 for the Dex One Retirement Account and the Dex Media, Inc. Pension Plan was 6.9% and 17.2%, respectively. The actual rate of return on assets during 2014 and for the eight months ending December 31, 2013 for the SuperMedia Pension Plan for Management Employees and for the SuperMedia Pension Plan for Collectively Bargained Employees was 22.5% and (8.0)%, respectively. | ||||||||||||||||||||
Employee Benefits - Long-Term Disability | ||||||||||||||||||||
During the year ended December 31, 2014, the Company recorded a $29 million credit to expense associated with plan amendments that reduced benefits associated with the Company's long-term disability plans. As of December 31, 2014, the employee benefit liability associated with our long-term disability plans was $19 million. | ||||||||||||||||||||
Savings Plans | ||||||||||||||||||||
The Company sponsors defined contribution savings plans to provide opportunities for eligible employees to save for retirement. The savings plans include the Dex One 401(k) Savings Plan, the Dex One Restoration Plan and the Super Media, Savings 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. For the years ended December 31, 2014, 2013 and 2012, the Company recorded total savings plan expense of $11 million, $12 million and $10 million, respectively. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including savings plan expense, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. On December 31, 2014 the Company merged the Dex One 401(k) Savings Plan and the SuperMedia Savings Plan to form Dex Media Inc, Savings Plan. |
Long_term_incentive_compensati
Long term incentive compensation | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
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 provides 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 Plans is 1,264,911. During 2014 and 2013, 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. | |||||||||||||||
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 year ended December 31, 2014. | |||||||||||||||
Restricted | Weighted-Average Grant Date Fair Value | ||||||||||||||
Stock Awards | |||||||||||||||
Outstanding restricted stock awards at January 1, 2014 | 356,138 | $ | 10.28 | ||||||||||||
Granted | 20,360 | $ | 8.29 | ||||||||||||
Vested | (157,292 | ) | $ | 10.37 | |||||||||||
Forfeitures | (5,960 | ) | $ | 10.61 | |||||||||||
Outstanding restricted stock awards at December 31, 2014 | 213,246 | $ | 10.01 | ||||||||||||
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 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 cliff 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. | |||||||||||||||
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 as inducements to employment without stockholder approval pursuant to NASDAQ Market Place Rule 5635(c)(4) and was approved by all of the Company’s independent directors and the Company’s Compensation and Benefits Committee. The grant will be subject to the terms and conditions of the Dex Media, Inc. Equity Incentive Plan. These options are included in the stock option award amounts provided in the table below. | |||||||||||||||
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 years ended December 31, 2014 and 2013 are disclosed in the following table. | |||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Weighted average fair value | $4.49 | $5.63 | |||||||||||||
Dividend yield | — | — | |||||||||||||
Volatility | 55.67% | 55.95% | |||||||||||||
Risk-free interest rate | 1.82% | 2.23% | |||||||||||||
Expected life (in years) | 6.52 | 6.25 | |||||||||||||
Changes in the Company's outstanding stock option awards were as follows for the year ended December 31, 2014. | |||||||||||||||
Number of | Weighted- | Weighted- | Aggregate Intrinsic Value | ||||||||||||
Stock Option | Average | Average | |||||||||||||
Awards | Exercise Price | Remaining | |||||||||||||
Contractual | |||||||||||||||
Term (years) | |||||||||||||||
Outstanding stock option awards at January 1, 2014 | 442,133 | $ | 10.15 | 9.64 | $ | 5,422 | |||||||||
Granted | 521,249 | $ | 8.42 | 10 | — | ||||||||||
Exercises | (1,248 | ) | $ | 6.3 | 7.25 | — | |||||||||
Forfeitures/expirations | (52,335 | ) | $ | 10.07 | 8.62 | — | |||||||||
Outstanding stock option awards at December 31, 2014 | 909,799 | $ | 9.17 | 9.31 | $ | 408,757 | |||||||||
Stock-Based Compensation Expense | |||||||||||||||
The following table sets forth stock-based compensation expense recognized for the years ended December 31, 2014, 2013 and 2012. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive income (loss). During the three months ended June 30, 2013, as a result of merger related stock transactions, the Company accelerated $2 million of expense related to these awards (included as part of merger transaction costs) and is reflected in the amount shown below. | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(in millions) | |||||||||||||||
Stock-based compensation expense | $ | 4 | $ | 4 | $ | 5 | |||||||||
As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results, including stock-based compensation expense, of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | |||||||||||||||
As of December 31, 2014, unrecognized stock-based compensation expense related to the unvested portion of the Company's restricted stock and stock option awards was approximately $4 million, and is expected to be recognized over a weighted-average period of approximately 2.3 years. | |||||||||||||||
Cash Long-Term Incentive Plan | |||||||||||||||
The Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan provides 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. These awards are classified as liability awards based on the criteria established by the applicable accounting rules. During the years ended December 31, 2014 and 2013, the Company recorded $5 million and $7 million, respectively, related to the Cash Long-Term Incentive Plan. There was no cash long-term incentive plan in 2012. | |||||||||||||||
Value Creation Program | |||||||||||||||
Effective October 14, 2014, the Company adopted the Value Creation Program (“VCP”). The VCP enables the Company to retain and award designated participating 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 December 31, 2014, participating executives had been granted 645,000 units. | |||||||||||||||
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 $2,290 million. | |||||||||||||||
The fair value of the VCP was estimated using a Monte Carlo simulation. A Monte Carlo simulation is a type of option pricing model. The assumptions used in the Monte Carlo simulation, when estimating the fair value of the VCP, are summarized below. The expected volatility is based on the historical volatility of the Company's total invested capital over the period since the merger of the Company's predecessor companies, Dex One and SuperMedia. | |||||||||||||||
At October 14, 2014 | At December 31, 2014 | ||||||||||||||
($ in millions) | |||||||||||||||
Value Creation Program fair value | $ | 12 | $ | 12 | |||||||||||
Expected volatility | 11.93 | % | 11.7 | % | |||||||||||
Remaining contractual term | 3.21 years | 3.00 years | |||||||||||||
Expected dividend yield | 0 | % | 0 | % | |||||||||||
Risk free rate | 0.87 | % | 1.1 | % | |||||||||||
The fair value of the VCP will be estimated each reporting period. The Company recognizes the fair value of the VCP as compensation expense ratably over the remaining performance period. During the year ended December 31, 2014, the Company recorded $1 million of compensation expense related to these awards. As of December 31, 2014, the aggregate unamortized compensation expense was $11 million, which will be recognized over the remaining three years of the performance measurement period. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Income Taxes | Income Taxes | |||||||||
The components of the Company’s provision (benefit) for income taxes for the years ended December 31, 2014, 2013 and 2012 are shown in the table below. | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Current | (in millions) | |||||||||
Federal | $ | 3 | $ | (22 | ) | $ | (5 | ) | ||
State and local | (1 | ) | (3 | ) | 5 | |||||
2 | (25 | ) | — | |||||||
Deferred | ||||||||||
Federal | 14 | (319 | ) | 4 | ||||||
State and local | (3 | ) | (32 | ) | 2 | |||||
11 | (351 | ) | 6 | |||||||
Total provision (benefit) for income taxes | $ | 13 | $ | (376 | ) | $ | 6 | |||
The following table shows the principal reasons for the differences between the effective income tax rate and the statutory federal income tax rate for the years ended December 31, 2014, 2013 and 2012. | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Statutory federal tax rate | 35 | % | 35 | % | 35 | % | ||||
State and local taxes, net of federal tax benefit | 2.8 | 2.2 | 4.3 | |||||||
Non-deductible interest expenses | (1.4 | ) | (0.4 | ) | 11.8 | |||||
Non-deductible goodwill impairment charge | — | (2.2 | ) | — | ||||||
Tax attribution reduction | — | (0.1 | ) | (4.3 | ) | |||||
Subsidiary basis adjustment | 0.8 | 1.3 | 19.1 | |||||||
Change in valuation allowance | (34.9 | ) | (5.9 | ) | (63.8 | ) | ||||
Change in unrecognized tax benefits | 2.2 | 2.4 | — | |||||||
Change in state tax laws and deferred items | (7.3 | ) | (0.2 | ) | 4.3 | |||||
Other, net | (0.8 | ) | (0.6 | ) | 6.4 | |||||
Effective tax rate | (3.6 | )% | 31.5 | % | 12.8 | % | ||||
The effective tax rate for 2014 is primarily impacted by the 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 expiration of the statute of limitations in federal and various state jurisdictions. | ||||||||||
The effective tax rate for 2013 is primarily impacted by the increase in recorded valuation allowances, the non-deductible component of the goodwill impairment charge and the lapsing of various uncertain tax positions due to expiration of the statute of limitations in federal and various state jurisdictions. | ||||||||||
The effective tax rate for 2012 is primarily impacted by changes in recorded valuation allowances, changes in certain deferred tax liabilities associated with subsidiary basis adjustments, the impact of a non-deductible component of interest expense related to our debt obligations, and the impact of state income taxes. | ||||||||||
Deferred Taxes | ||||||||||
Deferred taxes arise because of differences in the book and tax basis of certain assets and liabilities. A valuation allowance is recognized to reduce gross deferred tax assets to the amount that will more likely than not be realized. Significant components of deferred income tax assets and liabilities as of December 31, 2014 and 2013 are shown in the following table. | ||||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
(in millions) | ||||||||||
Deferred tax assets | ||||||||||
Deferred revenue | $ | — | $ | 4 | ||||||
Allowance for doubtful accounts | 6 | 7 | ||||||||
Deferred and other compensation | 17 | 13 | ||||||||
Capital investments | 6 | 6 | ||||||||
Debt, capitalized fees, and other interest | 104 | 148 | ||||||||
Pension and other post-employment benefits | 31 | 34 | ||||||||
Restructuring reserve | 15 | — | ||||||||
Net operating loss and credit carryforwards | 332 | 341 | ||||||||
Other, net | 16 | 21 | ||||||||
Total deferred tax assets | 527 | 574 | ||||||||
Valuation allowance | (353 | ) | (208 | ) | ||||||
Net deferred tax assets | $ | 174 | $ | 366 | ||||||
Deferred tax liabilities | ||||||||||
Fixed assets and capitalized software | $ | (13 | ) | $ | (33 | ) | ||||
Goodwill and intangible assets | (137 | ) | (285 | ) | ||||||
Deferred directory costs | (30 | ) | (35 | ) | ||||||
Investment in subsidiaries | (8 | ) | (10 | ) | ||||||
Gain on debt retirement | (16 | ) | (22 | ) | ||||||
Total deferred tax liabilities | $ | (204 | ) | $ | (385 | ) | ||||
Net deferred tax liability | $ | (30 | ) | $ | (19 | ) | ||||
The decrease in total deferred tax assets was primarily associated with reductions to debt, capitalized fees, and other interest attributable to tax amortization deductions and the utilization and expiration of net operating loss and credit carryforwards. These decreases were offset by the establishment of a deferred tax asset for the restructuring reserve that was established for the Company's business transformation program. | ||||||||||
After assessing the total deferred tax assets that are more likely than not to be realized, the Company established a valuation allowance of $353 million and $208 million for the years ended December 31, 2014 and 2013, respectively. The valuation allowance represents the extent to which deferred tax assets are not supported by future reversals of existing deferred tax liabilities. The increase in the valuation allowance was primarily offset by the reduction in deferred tax liabilities, which decreased due to nondeductible amortization of intangible assets. | ||||||||||
At December 31, 2014, the Company had pre-tax net operating loss carryforwards of $732 million for federal income tax purposes and $1,798 million for state income tax purposes, which will begin to expire in 2029 and 2015, respectively. | ||||||||||
The Company files its income tax returns with federal and various state jurisdictions within the United States. Tax years 2011 through 2013 are subject to examination by the Internal Revenue Service. State tax returns are open for examination for an average of three years; however, certain jurisdictions remain open to examination longer than three years due to the existence of net operating loss carryforwards. The Company currently does not have any significant federal, state or local examinations in process. | ||||||||||
Unrecognized Tax Benefits | ||||||||||
The Company records unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns. | ||||||||||
The following table shows changes to and balances of unrecognized tax benefits for the years ended December 31, 2014 and 2013. | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | |||||||||
(in millions) | ||||||||||
Balance at beginning of period | $ | 19 | $ | 6 | ||||||
Gross additions for tax positions related to SuperMedia acquisition | — | 45 | ||||||||
Gross additions for tax positions related to the current year | — | 1 | ||||||||
Gross additions for tax positions related to prior years | 3 | — | ||||||||
Gross reductions for tax positions related to the lapse of applicable statute of limitations | (11 | ) | (33 | ) | ||||||
Settlements | — | — | ||||||||
Balance at end of period | $ | 11 | $ | 19 | ||||||
For the year ended December 31, 2014, the Company's unrecognized tax benefits decreased $8 million. This decrease was primarily due to the expiration in the statute of limitations in various jurisdictions of ($11) million, most of which related to federal tax issues offset by additional unrecognized tax benefits of $3 million associated with various state tax positions. | ||||||||||
For the year ended December 31, 2013, the Company's unrecognized tax benefits increased $13 million. The increase was primarily driven by the recording of $46 million of additional unrecognized tax benefits, of which $45 million related to the acquisition of SuperMedia, associated with various federal and state issues. The increase was offset by the expiration in the statute of limitations in various jurisdictions of ($33) million, most of which related to federal tax issues. | ||||||||||
For the years ended December 31, 2014 and 2013, the Company had $10 million and $12 million, respectively, of unrecognized tax benefits that, if recognized, would impact the effective tax rate. The Company recorded interest and penalties related to unrecognized tax benefits as part of the provision (benefit) for income taxes on the Company’s consolidated statements of comprehensive income (loss). During the tax years ended December 31, 2014, 2013 and 2012, the Company recognized less than ($1) million, ($3) million and less than $1 million in tax provision (benefit) associated with interest, respectively, on the Company’s consolidated statements of comprehensive income (loss). Unrecognized tax benefits include $1 million of accrued interest as of December 31, 2014 and 2013. | ||||||||||
It is reasonably possible that up to $3 million of unrecognized tax benefits could decrease within the next twelve months, due to expiration of the statute of limitations in various jurisdictions. | ||||||||||
Deferred Income Tax Asset Valuation Allowance | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Balance at beginning of period | $ | 208 | 133 | $ | 157 | |||||
Net additions charged to revenue and expense | 125 | 75 | (24 | ) | ||||||
Net charges to other balance sheet accounts | 20 | — | — | |||||||
Balance at end of period | $ | 353 | $ | 208 | $ | 133 | ||||
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Loss Contingency [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 April 20, 2009, a lawsuit was filed in the district court of Tarrant County, Texas, against certain officers and directors of SuperMedia (but not against SuperMedia or its subsidiaries) on behalf of Jack B. Corwin as Trustee of The Jack B. Corwin Revocable Trust, and Charitable Remainder Stewardship Company of Nevada, and as Trustee of the Jack B. Corwin 2006 Charitable Remainder Unitrust (the "Corwin" case). The Corwin case generally alleges that at various times in 2008 and 2009, the named SuperMedia officers and directors made false and misleading representations, or failed to state material facts, which made their statements misleading regarding SuperMedia's financial performance and condition. The suit brings fraud and negligent misrepresentation claims and alleges violations of the Texas Securities Act and Section 27 of the Texas Business Commerce Code. The plaintiffs seek unspecified compensatory damages, exemplary damages, and reimbursement for litigation expenses. On June 3, 2009, the plaintiffs filed an amended complaint with the same allegations adding two additional SuperMedia directors as party defendants. On June 10, 2010, the court in the Buettgen case (a separate case involving SuperMedia, now settled) granted SuperMedia's motion staying discovery in the Corwin case pursuant to the provisions of the Private Securities Litigation Reform Act. After plaintiffs replaced their counsel, the plaintiffs filed several amendments to the complaint. All the SuperMedia defendants refiled motions for summary judgment claiming that there is no evidence of any wrongdoing elicited during the discovery phase and that the plaintiffs lack standing. Those motions were denied. After a four week jury trial, the jury returned a unanimous defense verdict. A final take nothing judgment in favor of all the defendants was entered on December 19, 2014, and no appeal was filed. | |
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 5th U.S. Circuit Court of Appeals. The briefing is complete and oral argument was held on September 4, 2014. On October 14, 2014, the 5th Circuit 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 5th U.S. Circuit Court of Appeals issued a decision affirming the dismissal of the trial court. On July 23, 2013, plaintiffs filed a Petition to the 5th U.S. Circuit Court of Appeals for a rehearing en banc which has been denied. The plaintiffs filed a Petition for 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 5th U.S. Circuit Court of Appeals opinion and remanded the case to the 5th U.S. Circuit Court of Appeals to rule in conformity with the Fifth Third opinion. Subsequently, the case has been remanded to the trial court. On February 17, 2015, the plaintiffs filed their second amended complaint with the same basic allegations as the first complaint. The Company plans to honor its indemnification obligations and vigorously defend the lawsuit on the defendants' behalf. | |
On July 1, 2011, several former employees filed a Fair Labor Standards Act ("FLSA") collective action against SuperMedia, all its subsidiaries, the current chief executive officer and the former chief executive officer in the U.S. District Court, Northern District of Texas, Dallas Division. The complaint alleges that SuperMedia improperly calculated the rate of pay when it paid overtime to its hourly sales employees. On July 29, 2011, SuperMedia filed a motion to dismiss the complaint. In response, the plaintiffs amended their complaint to allege that the individual defendants had "off-the-clock" claims for unpaid overtime. Subsequently, SuperMedia amended its motion to dismiss in light of the new allegations. On October 25, 2011, the Plaintiffs filed a motion to conditionally certify a collective action and to issue notice. On March 29, 2012, the court denied the SuperMedia's motion to dismiss and granted the plaintiffs' motion to conditionally certify the class. SuperMedia's motion seeking permission to file an interlocutory appeal of the order was denied and a notice has been sent to SuperMedia's former and current employees. The time for opting into the class has expired. On February 24, 2014, SuperMedia filed a motion to decertify. The plaintiffs that failed to file their opt-ins on time have filed a companion case with the same allegations. In early August, 2014, terms of a tentative settlement were reached by the parties; the settlement has been approved by the court, distribution to the class has been made, and the matter has been dismissed with prejudice. | |
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. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) | |||||||||||||||
The following tables set forth the Company's quarterly results of operations for the years ended December 31, 2014 and 2013. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||
Quarter Ended | ||||||||||||||||
31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 31-Dec-14 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Operating revenue | $ | 456 | $ | 474 | $ | 452 | $ | 433 | ||||||||
Operating income (loss) | $ | 7 | $ | 5 | $ | 25 | $ | (41 | ) | |||||||
Net (loss) | $ | (82 | ) | $ | (85 | ) | $ | (59 | ) | $ | (145 | ) | ||||
Comprehensive income (loss) | $ | (80 | ) | $ | (83 | ) | $ | (54 | ) | $ | (205 | ) | ||||
Basic and diluted earnings (loss) per share | $ | (4.74 | ) | $ | (4.93 | ) | $ | (3.41 | ) | $ | (8.35 | ) | ||||
During the quarter ended March 31, 2014, the Company recorded a $13 million credit to expense associated with the settlement of plan amendments to its other post-employment benefits, which eliminated the Company’s obligation to provide a subsidy for other post-employment benefits. | ||||||||||||||||
During the quarter ended September 30, 2014, the Company recorded a $29 million credit to expense associated with plan amendments that reduced benefits associated with the Company's long-term disability plans. | ||||||||||||||||
During the quarter ended September 30, 2014, the Company recognized a gain on early extinguishment of debt of $2 million. For additional information related to gains on early extinguishment of debt, see Note 8. | ||||||||||||||||
During the quarter ended December 31, 2014, the Company recorded a severance charge associated with the business transformation program of $43 million, which included severance associated with our former President and Chief Executive Officer, our former Executive Vice President - Chief Financial Officer and Treasurer, and our former Executive Vice President - Operations of $10 million. | ||||||||||||||||
Quarter Ended | ||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Operating revenue | $ | 288 | $ | 335 | $ | 392 | $ | 429 | ||||||||
Operating income | $ | 19 | $ | (146 | ) | $ | (147 | ) | $ | (576 | ) | |||||
Net income (loss) | $ | (59 | ) | $ | (69 | ) | $ | (135 | ) | $ | (556 | ) | ||||
Comprehensive income (loss) | $ | (58 | ) | $ | (76 | ) | $ | (139 | ) | $ | (536 | ) | ||||
Basic and diluted earnings (loss) per share | $ | (5.84 | ) | $ | (4.58 | ) | $ | (7.85 | ) | $ | (32.29 | ) | ||||
The quarter ended December 31, 2013 includes a non-cash impairment charge of $458 million associated with the write down of goodwill of $74 million and intangible assets of $384 million. | ||||||||||||||||
During the quarter ended December 31, 2013, the Company recognized a gain on early extinguishment of debt of $9 million. For additional information related to gains on early extinguishment of debt, see Note 8. | ||||||||||||||||
The weighted average shares outstanding for periods prior to April 30, 2013 have been adjusted to reflect the 1-for-5 reverse stock split of Dex One common stock associated with the merger of Dex One and SuperMedia. |
Dex_Media_Incs_Parent_Company_
Dex Media, Inc.'s Parent Company Financial Statements | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||
Dex Media, Inc.'s Parent Company Financial Statements | Dex Media, Inc.'s Parent Company Financial Statements | |||||||||
As provided for in our senior secured credit facilities, each of the Company’s operating subsidiaries, with the exception of SuperMedia, are to fund their share of Dex Media, Inc.'s Parent Company’s interest obligations associated with its senior subordinated notes. Each of our operating subsidiaries fund on a proportionate basis of those expenses paid by Dex Media, Inc.'s Parent Company to fund the daily operations of our operating subsidiaries. Except for certain limited situations, including those noted above, the senior secured credit facilities restrict the ability of the Company and its subsidiaries to dividend assets to any third party and of our subsidiaries to pay dividends, loans or advances to Dex Media, Inc.'s Parent Company. For further information about our debt instruments, see Note 8. | ||||||||||
Condensed Parent Company Statements of Comprehensive Income (Loss) | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Expenses | $ | 24 | $ | 22 | $ | 13 | ||||
Partnership and equity (income) loss | 329 | 800 | (47 | ) | ||||||
Operating income (loss) | (353 | ) | (822 | ) | 34 | |||||
Interest expense, net | 34 | 32 | 34 | |||||||
Income (loss) before gains on early extinguishment of debt and provision (benefit) for income taxes | (387 | ) | (854 | ) | — | |||||
Gains on early extinguishment of debt | — | — | 71 | |||||||
Income (loss) before provision (benefit) for income taxes | (387 | ) | (854 | ) | 71 | |||||
Provision (benefit) for income taxes | (16 | ) | (35 | ) | 30 | |||||
Net income (loss) | (371 | ) | (819 | ) | 41 | |||||
Other comprehensive income (loss) | (51 | ) | 10 | (16 | ) | |||||
Comprehensive income (loss) | $ | (422 | ) | $ | (809 | ) | $ | 25 | ||
Condensed Parent Company Balance Sheets | ||||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
(in millions) | ||||||||||
Assets | ||||||||||
Current Assets | ||||||||||
Cash and cash equivalents | $ | 3 | $ | 3 | ||||||
Accrued tax receivable | 34 | 17 | ||||||||
Deferred tax assets | 3 | 1 | ||||||||
Total current assets | 40 | 21 | ||||||||
Deferred tax assets | 1 | — | ||||||||
Total Assets | $ | 41 | $ | 21 | ||||||
Liabilities and Shareholders’ (Deficit) | ||||||||||
Current Liabilities | ||||||||||
Affiliates payable, net | $ | 50 | $ | 15 | ||||||
Accounts payable and accrued liabilities | 7 | 2 | ||||||||
Accrued interest | 9 | 8 | ||||||||
Total current liabilities | 66 | 25 | ||||||||
Long-term debt | 252 | 236 | ||||||||
Unrecognized tax benefits | 2 | — | ||||||||
Investment in subsidiaries | 843 | 463 | ||||||||
Total shareholders' (deficit) | (1,122 | ) | (703 | ) | ||||||
Total Liabilities and Shareholders' (Deficit) | $ | 41 | $ | 21 | ||||||
Condensed Parent Company Statements of Cash Flows | ||||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Cash flows from operating activities | $ | — | $ | — | $ | 2 | ||||
Cash flow from investing activities | ||||||||||
Additions to fixed assets and capitalized software | — | — | — | |||||||
Contributions to subsidiaries | — | — | — | |||||||
Intercompany loan | — | — | — | |||||||
Net cash (used) in investing activities | — | — | — | |||||||
Cash flow from financing activities | ||||||||||
Debt repayments | — | — | (27 | ) | ||||||
Net cash (used) in financing activities | — | — | (27 | ) | ||||||
Increase (decrease) in cash and cash equivalents | — | — | (25 | ) | ||||||
Cash and cash equivalents, beginning of year | 3 | 3 | 28 | |||||||
Cash and cash equivalents, end of year | $ | 3 | $ | 3 | $ | 3 | ||||
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
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. The consolidated financial statements include the financial statements of Dex Media and its wholly owned subsidiaries. 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 assets and liabilities at the date of the financial statements. All inter-company accounts and transactions have been eliminated. The Company is managed as a single business segment. | ||
In the periods subsequent to filing for bankruptcy on March 18, 2013 and until emergence from bankruptcy on April 30, 2013, Accounting Standards Codification ("ASC") 852 “Reorganizations" ("ASC 852") was applied in preparing the consolidated financial statements of Dex One. ASC 852 requires that the financial statements distinguish transactions and events that are directly associated with the bankruptcy reorganization from the ongoing operations of the business. Accordingly, certain expenses including professional fees, realized gains and losses and provisions for losses that are realized from the reorganization and restructuring process have been classified as reorganization items on the Company's consolidated statements of comprehensive income (loss). | ||
The Company accounted for the merger of Dex One and SuperMedia creating Dex Media on April 30, 2013, using the acquisition method of accounting in accordance with ASC 805 “Business Combinations” (“ASC 805”). As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. For additional information regarding the merger and acquisition accounting, see Note 2. | ||
Certain prior period amounts on our consolidated financial statements have been reclassified to conform to current year presentation. | ||
Use of Estimates | Use of Estimates | |
The preparation of the Company’s financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. | ||
Examples of significant estimates include the allowance for doubtful accounts, the recoverability and fair value determination of property, plant and equipment, goodwill, intangible assets and other long-lived assets, pension assumptions and estimates of selling prices that are used for multiple element arrangements. | ||
Revenue Recognition | Revenue Recognition | |
Revenue is earned from the sale of advertising. We are not generally affected by seasonality given our revenue is largely recognized on a straight-line basis over twelve month contract periods. | ||
The sale of advertising in print directories is our primary source of revenue. We recognize revenue from print directory advertising ratably over the life of each directory which is typically twelve months, using the deferral and amortization method of accounting, with revenue recognition commencing in the month of publication. | ||
Revenue derived from digital advertising is earned primarily from two sources: fixed-fee and performance-based advertising. Fixed-fee advertising includes advertisement placement on our and other local search websites, website development and website hosting for client advertisers. Revenue from fixed-fee advertising is recognized ratably over the life of the advertising service. Performance-based advertising revenue is earned when consumers connect with client advertisers by a "click" or “action” on their digital advertising or a phone call to their business. Performance-based advertising revenue is recognized when there is evidence that qualifying transactions have occurred or over the service period of the arrangement, as applicable. | ||
We also offer multiple-deliverable revenue arrangements with our customers that may include a combination of our print and digital marketing solutions. The timing of delivery or fulfillment of our marketing solutions in a multiple-deliverable arrangement may differ, whereby the fulfillment of a digital marketing solutions precedes delivery of our print marketing solutions due to the length of time required to produce the final print product. In addition, multiple print directories included in a multiple-deliverable arrangement may be published at different times throughout the year. We limit the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery or fulfillment of other marketing solutions included in a multiple-deliverable arrangement. | ||
We evaluate each deliverable in a multiple-deliverable revenue arrangement to determine whether they represent separate units of accounting using the following criteria: | ||
• | The delivered item(s) has value to the customer on a stand-alone basis; and | |
• | If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Company. | |
All of our print and digital marketing solutions qualify as separate units of accounting since they are sold on a stand-alone basis and we allocate multiple-deliverable arrangement consideration to each deliverable based on its estimated selling price. Our sales contracts generally do not include any provisions for cancellation, termination, right of return or refunds that would significantly impact recognized revenue. In determining our estimated selling prices, we require that a substantial majority of our selling prices are consistent with our normal pricing and discounting policies, which have been established by management having relevant authority. | ||
Expense Recognition | Expense Recognition | |
Costs directly attributable to producing directories are amortized over the life of the directories, which is usually twelve months, under the deferral and amortization method of accounting. Direct costs include paper, printing, initial distribution and sales commissions. All other costs are recognized as incurred. | ||
Barter Transactions | Barter Transactions | |
Occasionally, the Company may enter into certain transactions where a third party provides directory placement arrangements, sponsorships or other media advertising in exchange for comparable advertising with the Company. It is the Company's policy to not recognize revenue and expense from these transactions on the Company’s consolidated statements of comprehensive income (loss). If recognized, revenue associated with barter transactions would be less than 2% of total revenue. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Highly liquid investments with a maturity of 90 days or less when purchased are considered to be cash equivalents. Cash and cash equivalents consist of bank deposits and money market funds. Cash equivalents are stated at cost, which approximates market value. | ||
Accounts Receivable | Unbilled receivables represent amounts that are not billable at the balance sheet date but are billed over the remaining life of the clients’ advertising contracts. | |
Receivables are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is calculated using a percentage of sales method based upon collection history, and an estimate of uncollectible accounts. Judgment is exercised in adjusting the provision as a consequence of known items, such as current economic factors and credit trends. Accounts receivable adjustments are recorded against the allowance for doubtful accounts. | ||
Concentration of Credit Risk | Concentrations of Credit Risk | |
Financial instruments subject to concentrations of credit risk consist primarily of temporary cash investments, short-term investments, trade receivables, and debt. Company policy requires the deposit of temporary cash investments with major financial institutions. | ||
Approximately 86% of the Company’s 2014 revenue is derived from the sale of advertising to local small and medium sized businesses that advertise in limited geographical areas. These advertisers are usually billed in monthly installments after the advertising has been published and, in turn, make monthly payments, requiring the Company to extend credit to these customers. This practice is widely accepted within the industry. While most new advertisers and those wanting to expand their current media solutions are subject to a credit review, the default rates of small and medium sized companies are generally higher than those of larger companies. | ||
The remaining 14% of the Company’s 2014 revenue is derived from the sale of advertising to larger businesses that advertise regionally or nationally. Contracted certified marketing representatives ("CMRs") purchase advertising on behalf of these advertisers. Payment for advertising is due when the advertising is published and is received directly from the CMRs, net of the CMRs' commission. The CMRs are responsible for billing and collecting from the advertisers. While the Company still has exposure to credit risks, historically, the losses from this client set have been less than that of local advertisers. | ||
Fixed Assets and Capitalized Software | Fixed Assets and Capitalized Software | |
The cost of additions and improvements associated with fixed assets are capitalized if they have a useful life in excess of one year. Expenditures for repairs and maintenance, including the cost of replacing minor items not considered substantial betterments, are expensed as incurred. When fixed assets are sold or retired, the related cost and accumulated depreciation are deducted from the accounts and any gains or losses on disposition are recognized in income. Fixed assets are reviewed for impairment whenever events or changes in circumstances may indicate that the carrying amount of an asset may not be recoverable. | ||
Costs associated with internal use software are capitalized if they have a useful life in excess of one year. Subsequent additions, modifications or upgrades to internal use software are capitalized only to the extent that they allow the software to perform a task it previously did not perform. Capitalized software is reviewed for impairment whenever events or changes in circumstances may indicate that the carrying amount of an asset may not be recoverable. | ||
Goodwill | Goodwill | |
In accordance with GAAP, impairment testing for goodwill is to be performed at least annually unless indicators of impairment exist in interim periods. The impairment test for goodwill uses a two-step approach, which is performed at the reporting unit level. The Company has four reporting units, R.H. Donnelley Inc. ("RHD"), Dex Media East, Inc. ("DME"), Dex Media West, Inc. ("DMW") and SuperMedia, however, only the SuperMedia reporting unit has goodwill. Step one compares the fair value of the reporting unit to its carrying value. In performing step one of the impairment test, the Company estimated the fair value of the reporting unit using a combination of the income and market approaches with greater emphasis placed on the income approach, for purposes of estimating the total enterprise value of the Company. If the carrying value exceeds the fair value, there is a potential impairment and step two must be performed. Step two compares the carrying value of the reporting unit's goodwill to its implied fair value (i.e., the fair value of the reporting unit less the fair value of the unit's assets and liabilities, including identifiable intangible assets). If the carrying value of goodwill exceeds its implied fair value, the excess is required to be recorded as an impairment. | ||
The Company performed its annual impairment test of goodwill as of October 1, 2014. The Company determined the fair value of the SuperMedia reporting unit exceeded the carrying value of the reporting unit; therefore there was no impairment of goodwill. | ||
When the Company performed its annual impairment test of goodwill as of October 1, 2013 on the SuperMedia reporting unit, it was determined that the carrying value of the SuperMedia reporting unit including goodwill exceeded the fair value of the SuperMedia reporting unit, requiring the Company to perform step two of the goodwill impairment test to determine the amount of impairment loss, if any. | ||
Intangible Assets | Intangible Assets | |
Intangible assets are recorded separately from goodwill if they meet certain criteria. All of the Company’s intangible assets are classified as definite-lived intangible assets. Intangible assets have been recorded to each of our four reporting units. The Company reviews its definite-lived intangible assets whenever events or circumstances indicate that their carrying value may not be recoverable. Our intangible assets are amortized using the income forecast method over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The recoverability analysis includes estimates of future cash flows directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the definite-lived intangible asset. An impairment loss is measured as the amount by which the carrying amount of the definite-lived intangible asset exceeds its fair value. The Company evaluated its definite-lived assets for potential impairment and determined they were not impaired as of December 31, 2014. | ||
The Company evaluated its definite-lived intangible assets for potential impairment and determined there were indicators of impairment as of October 1, 2013. | ||
Pension and Other Post-employment 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. New mortality tables were published in the fourth quarter of 2014 which reflect improved life expectancies. The Company has adopted these tables resulting in an increase to our pension obligation of approximately $38 million. | ||
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. On January 25, 2014, the Company reached an agreement with certain unions to freeze the SuperMedia Pension Plan for Collectively Bargained Employees. Accordingly, effective April 1, 2014, no employees accrue future pension benefits under any of the pension plans. | ||
Income Taxes | Income Taxes | |
We account for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes (“ASC 740”). | ||
Deferred tax assets or liabilities are recorded to reflect the expected future tax consequences of temporary differences between the financial reporting basis of assets and liabilities and their tax basis at each year-end. These amounts are adjusted as appropriate to reflect enacted changes in tax rates expected to be in effect when the temporary differences reverse. | ||
The likelihood that deferred tax assets can be recovered must be assessed. If recovery is not likely, the provision for taxes must be increased by recording a reserve in the form of a valuation allowance for deferred tax assets that are estimated not to be ultimately recoverable. In this process, certain relevant criteria are evaluated, including the existence of deferred tax liabilities that can be used to absorb deferred tax assets and taxable income in future years. A valuation allowance is established to offset any deferred income tax assets if, based on the available evidence, it is more likely than not that some or all of the deferred income tax assets will not be realized. The Company has netted deferred tax assets for net operating losses with related uncertain tax positions if such settlement is required or expected in the event the uncertain tax position is disallowed. | ||
The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. For additional information regarding our provision (benefit) for income taxes, see Note 12. | ||
Advertising Costs | Advertising Costs | |
Advertising costs, which includes media, promotional, branding and on-line advertising, are included in selling expense in the Company’s consolidated statements of comprehensive income (loss), and are expensed as incurred. | ||
Earnings (Loss) Per Share | The weighted average shares outstanding for periods prior to April 30, 2013 have been adjusted to reflect the 1-for-5 reverse stock split of Dex One common stock. | |
Basic earnings (loss) per share are computed by dividing net income (loss) by the number of weighted-average common shares outstanding during the reporting 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 years ended December 31, 2014 and 2013, the effect of all stock-based awards was anti-dilutive and therefore not included in the calculation of earnings per share. The effect of potentially dilutive common shares for the year ended December 31, 2012 was not material. For the year ended December 31, 2014, 2013 and 2012, 0.4 million, 0.4 million and 0.5 million shares of the Company’s stock-based awards had exercise prices that exceeded the average market price of the Company’s common stock for the respective period. 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 stock-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 December 31, 2014 and 2013 there were 0.2 million and 0.3 million, respectively, of such participating securities outstanding. 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 year ended December 31, 2014 and 2013 was not allocated to these participating securities, as these awards do not share in any loss generated by the Company. | ||
Stock-Based Compensation | Stock-Based Compensation | |
The Company grants awards to certain employees and certain non-management directors under stock-based compensation plans. The 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 awards are classified as either liability or equity awards based on the criteria established by the applicable accounting rules for stock-based compensation. Stock-based compensation expense related to incentive compensation awards is recognized on a straight-line basis over the minimum service period required for vesting of the award. | ||
Fair Value of Financial Instruments | Fair Value Measurements | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value. | ||
Level 1 - Valuations based on quoted prices for identical assets and liabilities in active markets; | ||
Level 2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and | ||
Level 3 - Valuations based on unobservable inputs reflecting our own assumptions. These valuations require significant judgment. | ||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When there is more than one input at different levels within the hierarchy, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assessment of the significance of a particular input, to the fair value measurement in its entirety, requires substantial judgment and consideration of factors specific to the asset or liability. The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach or cost approach. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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 our 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. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||
Schedule of Fixed Assets and Computer Software, Estimated Useful Lives | Fixed assets and capitalized software are depreciated on a straight-line basis over the estimated useful lives of the assets, which are presented in the following table. | |||||||||||||
Estimated Useful Lives | ||||||||||||||
Buildings and building improvements | 8-30 years | |||||||||||||
Leasehold improvements | 3-8 years | |||||||||||||
Computer and data processing equipment | 3 years | |||||||||||||
Furniture and fixtures | 7 years | |||||||||||||
Capitalized software | 3 years | |||||||||||||
Other | 3-7 years | |||||||||||||
Schedule of Intangible Assets Useful Lives | The Company’s intangible assets and their estimated remaining useful lives are presented in the table below. | |||||||||||||
Estimated Remaining Useful Lives | ||||||||||||||
Directory service agreements | 4 years | |||||||||||||
Client relationships | 2 years | |||||||||||||
Trademarks and domain names | 4 years | |||||||||||||
Patented technologies | 3 years | |||||||||||||
Advertising commitment | 2 years | |||||||||||||
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of the Company’s basic and diluted earnings (loss) per share for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(in millions, except per share amounts) | ||||||||||||||
Net income (loss) | $ | (371 | ) | $ | (819 | ) | $ | 41 | ||||||
Basic and diluted weighted-average common shares outstanding | 17.3 | 14.9 | 10.1 | |||||||||||
Basic and diluted earnings (loss) per common share | $ | (21.43 | ) | $ | (54.89 | ) | $ | 4.09 | ||||||
Schedule of Carrying Values and Estimated Fair Values of Debt Obligations | The following table sets forth the carrying amount and fair value using Level 2 inputs of the Company’s debt obligations as of December 31, 2014 and 2013. | |||||||||||||
At December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Debt obligations | (in millions) | |||||||||||||
Senior secured credit facilities | ||||||||||||||
SuperMedia Inc. | $ | 841 | $ | 829 | $ | 935 | $ | 912 | ||||||
R.H. Donnelley Inc. | 612 | 435 | 685 | 414 | ||||||||||
Dex Media East, Inc. | 354 | 281 | 426 | 289 | ||||||||||
Dex Media West, Inc. | 337 | 293 | 393 | 307 | ||||||||||
Senior subordinated notes | 252 | 112 | 236 | 123 | ||||||||||
Total debt obligations | $ | 2,396 | $ | 1,950 | $ | 2,675 | $ | 2,045 | ||||||
Acquisition_Accounting_Tables
Acquisition Accounting (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Schedule of Recognized Identifiable Assets and Liabilities Assumed | Purchase Price Allocation | ||||||
(in millions) | |||||||
Fair value of assets acquired | |||||||
Cash and cash equivalents | $ | 154 | |||||
Accounts receivable | 111 | ||||||
Unbilled accounts receivable | 316 | ||||||
Other current assets | 64 | ||||||
Fixed assets and capitalized software | 42 | ||||||
Intangible assets | 635 | ||||||
Goodwill | 389 | ||||||
Pension assets | 58 | ||||||
Other non-current assets | 4 | ||||||
Total fair value of assets acquired | $ | 1,773 | |||||
Fair value of liabilities acquired | |||||||
Accounts payable and accrued liabilities | $ | 114 | |||||
Long-term debt (including current maturities) | 1,082 | ||||||
Employee benefit obligations | 99 | ||||||
Unrecognized tax benefits | 45 | ||||||
Deferred tax liabilities | 351 | ||||||
Total fair value of liabilities acquired | $ | 1,691 | |||||
Total allocable purchase price | $ | 82 | |||||
Components of Intangible Assets | The following table sets forth the components of the intangible assets acquired. | ||||||
Fair Value | Estimated Useful Lives | ||||||
(in millions) | |||||||
Directory services agreements | $ | 145 | 5 years | ||||
Client relationships | 420 | 3 years | |||||
Trademarks and domain names | 60 | 5 years | |||||
Patented technologies | 10 | 4 years | |||||
Total fair value of intangible assets acquired | $ | 635 | |||||
Pro Forma Information | Unaudited Pro Forma Results | ||||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Operating revenue | $ | 2,184 | $ | 2,070 | |||
Net (loss) | $ | (621 | ) | $ | (141 | ) |
Goodwill_Intangible_Assets_and1
Goodwill, Intangible Assets and Impairment (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Goodwill | The following table sets forth the balance of the Company’s goodwill and accumulated impairment losses as of December 31, 2014 and 2013. | |||||||||||||||||||
Goodwill | Accumulated | Goodwill | ||||||||||||||||||
Gross | Impairment Losses | Net | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Beginning balance at January 1, 2013 | $ | — | $ | — | $ | — | ||||||||||||||
Additions | 389 | — | 389 | |||||||||||||||||
Impairments | — | (74 | ) | (74 | ) | |||||||||||||||
Ending balance at December 31, 2013 | 389 | (74 | ) | 315 | ||||||||||||||||
Additions | — | — | — | |||||||||||||||||
Impairments | — | — | — | |||||||||||||||||
Ending balance at December 31, 2014 | $ | 389 | $ | (74 | ) | $ | 315 | |||||||||||||
Schedule of Impaired Intangible Assets | The following table sets forth the Company's 2013 impairment charge by type of intangible asset. | |||||||||||||||||||
Impairment Charge | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Directory services agreements | $ | 253 | ||||||||||||||||||
Client relationships | 38 | |||||||||||||||||||
Trademarks and domain names | 86 | |||||||||||||||||||
Patented technologies | 7 | |||||||||||||||||||
Total impairment charge | $ | 384 | ||||||||||||||||||
Schedule of Intangible Assets | The following table sets forth the details of the Company's intangible assets at December 31, 2014 and 2013. | |||||||||||||||||||
At December 31, 2014 | At December 31, 2013 | |||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||
(in millions) | ||||||||||||||||||||
Directory services agreements | $ | 666 | $ | 307 | $ | 359 | $ | 666 | $ | 97 | $ | 569 | ||||||||
Client relationships | 924 | 649 | 275 | 924 | 348 | 576 | ||||||||||||||
Trademarks and domain names | 222 | 91 | 131 | 222 | 29 | 193 | ||||||||||||||
Patented technologies | 42 | 16 | 26 | 42 | 4 | 38 | ||||||||||||||
Advertising commitment | 11 | 8 | 3 | 11 | 6 | 5 | ||||||||||||||
Total intangible assets | $ | 1,865 | $ | 1,071 | $ | 794 | $ | 1,865 | $ | 484 | $ | 1,381 | ||||||||
Merger_Transaction_and_Integra1
Merger Transaction and Integration Costs (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Business Combinations [Abstract] | ||||||||||
Merger Transaction and Integration Costs | The following table sets forth merger transaction and merger integration costs recognized for the years ended December 31, 2014, 2013 and 2012. | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Merger transaction costs | $ | — | $ | 22 | $ | 12 | ||||
Merger integration costs | 41 | 54 | — | |||||||
Total merger related costs | $ | 41 | $ | 76 | $ | 12 | ||||
Business_Transformation_Costs_
Business Transformation Costs (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table reflects the severance liability associated with the program as of December 31, 2014. | ||||||||||||
Beginning Balance | Ending Balance | ||||||||||||
1-Jan-14 | Expense | Payments | 31-Dec-14 | ||||||||||
(in millions) | |||||||||||||
Severance | $ | — | $ | 43 | $ | (5 | ) | $ | 38 | ||||
Additional_Financial_Informati1
Additional Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Amortization of intangible assets | $ | 587 | $ | 703 | $ | 350 | ||||||||||||||||||||||||
Amortization of capitalized software | 38 | 43 | 53 | |||||||||||||||||||||||||||
Depreciation of fixed assets | 18 | 19 | 16 | |||||||||||||||||||||||||||
Total depreciation and amortization | $ | 643 | $ | 765 | $ | 419 | ||||||||||||||||||||||||
Schedule of Allowance for Doubtful Accounts Receivable | Allowance for doubtful accounts | |||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 26 | $ | 20 | $ | 36 | ||||||||||||||||||||||||
Additions charged to revenue/expense (1) | 51 | 37 | 46 | |||||||||||||||||||||||||||
Deductions (2) | (47 | ) | (39 | ) | (62 | ) | ||||||||||||||||||||||||
Charged to other account | — | 8 | — | |||||||||||||||||||||||||||
Ending balance at December 31 | $ | 30 | $ | 26 | $ | 20 | ||||||||||||||||||||||||
(1) - Includes bad debt expense and sales allowance (recorded as contra revenue). | ||||||||||||||||||||||||||||||
(2) - Amounts written off as uncollectible, net of recoveries and sales adjustments. | ||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | The following table sets forth additional financial information related to the Company's accounts payable and accrued liabilities at December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Accounts payable | $ | 14 | $ | 20 | ||||||||||||||||||||||||||
Accrued salaries and wages | 48 | 44 | ||||||||||||||||||||||||||||
Accrued severance | 39 | 5 | ||||||||||||||||||||||||||||
Accrued taxes | 16 | 21 | ||||||||||||||||||||||||||||
Accrued expenses | 31 | 56 | ||||||||||||||||||||||||||||
Customer refunds, advance payments and other | 19 | 20 | ||||||||||||||||||||||||||||
Total accounts payable and accrued liabilities | $ | 167 | $ | 166 | ||||||||||||||||||||||||||
Comprehensive Income (Loss) | The following tables set forth the components of the Company's comprehensive income (loss) adjustments for pension and other post-employment benefits for the years ended December 31, 2014, 2013 and 2012. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | |||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Gross | Taxes | Net | Gross | Taxes | Net | Gross | Taxes | Net | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Net income (loss) | $ | (371 | ) | $ | (819 | ) | $ | 41 | ||||||||||||||||||||||
Adjustments for pension and other post-employment benefits: | ||||||||||||||||||||||||||||||
Accumulated actuarial losses of benefit plans | $ | (39 | ) | $ | (4 | ) | (43 | ) | $ | 11 | $ | (4 | ) | 7 | $ | (21 | ) | $ | — | (21 | ) | |||||||||
Reclassifications included in net income (loss): | ||||||||||||||||||||||||||||||
Amortization of actuarial losses | — | — | — | 3 | (1 | ) | 2 | 1 | — | 1 | ||||||||||||||||||||
Settlement losses | 1 | (1 | ) | — | 2 | (1 | ) | 1 | 4 | — | 4 | |||||||||||||||||||
Settlement of plan amendments | (13 | ) | 5 | (8 | ) | — | — | — | — | — | — | |||||||||||||||||||
Total reclassifications included in net income (loss) | (12 | ) | 4 | (8 | ) | 5 | (2 | ) | 3 | 5 | — | 5 | ||||||||||||||||||
Adjustments for pension and other post-employment benefits | $ | (51 | ) | $ | — | (51 | ) | $ | 16 | $ | (6 | ) | 10 | $ | (16 | ) | $ | — | (16 | ) | ||||||||||
Total comprehensive income (loss) | $ | (422 | ) | $ | (809 | ) | $ | 25 | ||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) Rollforward | 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 and other post-employment benefits. | |||||||||||||||||||||||||||||
Gross | Taxes | Net | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Accumulated other comprehensive (loss) - December 31, 2012 | $ | (47 | ) | $ | 3 | $ | (44 | ) | ||||||||||||||||||||||
Adjustments for pension and other post-employment benefits, net of amortization | 16 | (6 | ) | 10 | ||||||||||||||||||||||||||
Accumulated other comprehensive (loss) - December 31, 2013 | $ | (31 | ) | $ | (3 | ) | $ | (34 | ) | |||||||||||||||||||||
Adjustments for pension and other post-employment benefits, net of amortization | (51 | ) | — | (51 | ) | |||||||||||||||||||||||||
Accumulated other comprehensive (loss) - December 31, 2014 | $ | (82 | ) | $ | (3 | ) | $ | (85 | ) |
Fixed_Assets_and_Capitalized_S1
Fixed Assets and Capitalized Software (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Schedule of Fixed Assets and Computer Software | The following table sets forth the details of the Company's fixed assets and capitalized software as of December 31, 2014 and 2013. | ||||||
At December 31, | |||||||
2014 | 2013 | ||||||
(in millions) | |||||||
Land, buildings and building improvements | $ | 14 | $ | 14 | |||
Leasehold improvements | 13 | 21 | |||||
Computer and data processing equipment | 46 | 37 | |||||
Furniture and fixtures | 18 | 20 | |||||
Capitalized software | 225 | 222 | |||||
Other | 1 | 1 | |||||
Fixed assets and capitalized software | 317 | 315 | |||||
Less accumulated depreciation and amortization | 253 | 209 | |||||
Fixed assets and capitalized software, net | $ | 64 | $ | 106 | |||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
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 December 31, 2014 and 2013. | |||||||||||||
Interest Rates | Carrying Value | |||||||||||||
At December 31, | At December 31, | |||||||||||||
Maturity | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | ||||||||||||||
Senior secured credit facilities | ||||||||||||||
SuperMedia Inc. | 31-Dec-16 | 11.6 | % | 11.6 | % | $ | 841 | $ | 935 | |||||
R.H. Donnelly Inc. | 31-Dec-16 | 9.75 | % | 9.75 | % | 612 | 685 | |||||||
Dex Media East, Inc. | 31-Dec-16 | 6 | % | 6 | % | 354 | 426 | |||||||
Dex Media West, Inc. | 31-Dec-16 | 8 | % | 8 | % | 337 | 393 | |||||||
Senior subordinated notes | 29-Jan-17 | 14 | % | 14 | % | 252 | 236 | |||||||
Total debt | 2,396 | 2,675 | ||||||||||||
Less: current maturities of long-term debt | 124 | 154 | ||||||||||||
Long-term debt | $ | 2,272 | $ | 2,521 | ||||||||||
Schedule of Maturities of Long-term Debt | Future principal payments on debt obligations are as follows. | |||||||||||||
Years Ended December 31, | ||||||||||||||
2015 | 2016 | 2017 | ||||||||||||
(in millions) | ||||||||||||||
Future principal payments | $ | 124 | $ | 2,223 | $ | 252 | ||||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Non-Cancelable Minimum Rental Payments for Operating Leases | The future non-cancelable minimum rental obligations applicable to operating leases at December 31, 2014 are as follows. | |||
Minimum Rental Obligations | ||||
(in millions) | ||||
2015 | $ | 21 | ||
2016 | 17 | |||
2017 | 13 | |||
2018 | 9 | |||
2019 | 2 | |||
Thereafter | — | |||
Total | $ | 62 | ||
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||
Schedule of net periodic cost (income) | The net periodic cost (income) of the pension plans and post-employment health care and life for the years ended December 31, 2014, 2013 and 2012 are shown in the following table. | |||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Service cost | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | ||||||||
Interest cost | 28 | 22 | 11 | — | 1 | — | ||||||||||||||
Expected return on assets | (37 | ) | (31 | ) | (14 | ) | — | — | — | |||||||||||
Actuarial loss, net | — | 3 | 1 | — | — | — | ||||||||||||||
Prior service cost | — | — | — | — | — | — | ||||||||||||||
Settlement (gains) losses | 1 | 2 | 4 | (13 | ) | — | — | |||||||||||||
Net periodic cost (income) | $ | (8 | ) | $ | (3 | ) | $ | 2 | $ | (13 | ) | $ | 1 | $ | — | |||||
Schedule of weighted average assumptions used for determining net periodic benefit expense (income) | The following table shows the weighted-average assumptions used for determining net periodic benefit cost (income), for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.77 | % | 3.85 | % | 4.8 | % | — | % | 4.18 | % | — | |||||||||
Expected return on plan assets | 6.47 | % | 6.47 | % | 7.5 | % | — | — | — | |||||||||||
Rate of compensation increase | 3.5 | % | 3.5 | % | — | — | % | 3.5 | % | — | ||||||||||
Initial trend rate-pre Medicare | — | — | — | — | % | 8.25 | % | — | ||||||||||||
Initial trend rate-post Medicare | — | — | — | — | % | 7.25 | % | — | ||||||||||||
Ultimate trend rate | — | — | — | — | % | 5 | % | — | ||||||||||||
Year attained | — | — | — | — | 2020 | — | ||||||||||||||
Schedule of benefit obligations, plan assets and funded status | The following table summarizes the benefit obligations, plan assets and funded status associated with pension and other post-employment benefit plans for the years ended December 31, 2014 and 2013. | |||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Change in Benefit Obligations | ||||||||||||||||||||
At January 1 | $ | 645 | $ | 256 | $ | 15 | $ | — | ||||||||||||
Acquisition of SuperMedia plans on April 30, 2013 | — | 506 | — | 22 | ||||||||||||||||
Service cost | — | 1 | — | — | ||||||||||||||||
Interest cost | 28 | 22 | — | 1 | ||||||||||||||||
Actuarial loss (gain), net | 115 | (59 | ) | 1 | 2 | |||||||||||||||
Benefits paid | (81 | ) | (81 | ) | — | (10 | ) | |||||||||||||
Curtailment (gain) | (2 | ) | — | — | — | |||||||||||||||
Settlement of plan amendments (gain) | — | — | (16 | ) | — | |||||||||||||||
Benefit obligations at December 31 | $ | 705 | $ | 645 | $ | — | $ | 15 | ||||||||||||
Change in Plan Assets | ||||||||||||||||||||
At January 1 | $ | 618 | $ | 178 | $ | — | $ | — | ||||||||||||
SuperMedia assets received on April 30, 2013 | — | 531 | — | — | ||||||||||||||||
Plan contributions | 9 | 5 | — | — | ||||||||||||||||
Actual return (loss) on plan assets | 96 | (15 | ) | — | — | |||||||||||||||
Benefits paid | (81 | ) | (81 | ) | — | — | ||||||||||||||
Plan assets at December 31 | $ | 642 | $ | 618 | $ | — | $ | — | ||||||||||||
Funded Status at December 31 (plan assets less benefit obligations) | $ | (63 | ) | $ | (27 | ) | $ | — | $ | (15 | ) | |||||||||
Schedule of amounts recognized in the consolidated balance sheet | The following table sets forth the amounts recognized in the Company’s consolidated balance sheets at December 31, 2014 and 2013. | |||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
At December 31, | At December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Non-current assets | $ | 45 | $ | 41 | $ | — | $ | — | ||||||||||||
Current liabilities | (1 | ) | (1 | ) | — | (1 | ) | |||||||||||||
Non-current liabilities | (107 | ) | (67 | ) | — | (14 | ) | |||||||||||||
Net asset (liability) at December 31 | $ | (63 | ) | $ | (27 | ) | $ | — | $ | (15 | ) | |||||||||
Schedule of amounts associated with pension plans with accumulated benefit obligations in greater than plan assets | Identified below are amounts associated with the pension plans that have an accumulated benefit obligation greater than plan assets as of December 31, 2014 and 2013. | |||||||||||||||||||
At December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||
Accumulated benefit obligation | $ | 428 | $ | 386 | ||||||||||||||||
Projected benefit obligation | 428 | 389 | ||||||||||||||||||
Plan assets | 320 | 321 | ||||||||||||||||||
Schedule of the unrecognized prior service costs credits recognized in accumulated other comprehensive income (loss), (pre-tax) | The unrecognized net actuarial losses (pre-tax) recorded in accumulated other comprehensive income (loss), for the years ended December 31, 2014 and 2013, are shown below. | |||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Unrecognized actuarial (loss), net | $ | (82 | ) | $ | (29 | ) | $ | — | $ | (2 | ) | |||||||||
Schedule of weighted average assumptions used in calculating benefit obligations | The following table sets forth the weighted-average assumptions used for determining the benefit obligations for the years ended December 31, 2014 and 2013. | |||||||||||||||||||
Pension | Other Post-Employment Benefits | |||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Discount rate | 3.86 | % | 4.77 | % | — | % | 5.01 | % | ||||||||||||
Rate of compensation increase | — | % | 3.5 | % | — | % | 3.5 | % | ||||||||||||
Initial trend rate pre-Medicare | — | — | — | % | 8 | % | ||||||||||||||
Initial trend rate Medicare | — | — | — | % | 7.5 | % | ||||||||||||||
Ultimate trend rate | — | — | — | % | 5 | % | ||||||||||||||
Year attained | — | — | — | 2024 | ||||||||||||||||
Schedule of expected future benefit payments | The following table sets forth the expected future pension benefit payments. | |||||||||||||||||||
Expected Pension Benefit Payments | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
2015 | $ | 71 | ||||||||||||||||||
2016 | 60 | |||||||||||||||||||
2017 | 56 | |||||||||||||||||||
2018 | 53 | |||||||||||||||||||
2019 | 51 | |||||||||||||||||||
2020 to 2024 | 219 | |||||||||||||||||||
Schedule of allocation of plan assets | The fair values of the Company’s pension plan assets as of December 31, 2014 by asset category are as follows. | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(quoted prices in active markets) | (significant observable input) | (significant unobservable inputs) | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Cash and cash equivalents | $ | 50 | $ | 7 | $ | 43 | $ | — | ||||||||||||
Equity funds | 92 | — | 92 | — | ||||||||||||||||
U.S. treasuries and agencies | 228 | — | 228 | — | ||||||||||||||||
Corporate bonds | 16 | — | 16 | — | ||||||||||||||||
Other fixed income | 29 | — | 29 | — | ||||||||||||||||
Hedge funds | 227 | — | — | 227 | ||||||||||||||||
Total | $ | 642 | $ | 7 | $ | 408 | $ | 227 | ||||||||||||
The fair values of the Company’s pension plan assets as of December 31, 2013 by asset category are as follows. | ||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(quoted prices in active markets) | (significant observable input) | (significant unobservable inputs) | ||||||||||||||||||
(in millions) | ||||||||||||||||||||
Cash and cash equivalents | $ | 22 | $ | 4 | $ | 18 | $ | — | ||||||||||||
Equity funds | 96 | — | 96 | — | ||||||||||||||||
Equity securities | 20 | 20 | — | — | ||||||||||||||||
U.S. treasuries and agencies | 180 | — | 180 | — | ||||||||||||||||
Corporate bonds | 16 | — | 16 | — | ||||||||||||||||
Other fixed income | 26 | — | 26 | — | ||||||||||||||||
Hedge funds | 258 | — | — | 258 | ||||||||||||||||
Total | $ | 618 | $ | 24 | $ | 336 | $ | 258 | ||||||||||||
Schedule of change in fair value of Level 3 investments | The following table sets forth the change in fair value of our hedge fund investments (Level 3 investments) for the year ended December 31, 2014. | |||||||||||||||||||
Pension Plan Hedge Fund | ||||||||||||||||||||
Investments | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Ending Balance as of December 31, 2013 | $ | 258 | ||||||||||||||||||
Return on plan assets | 16 | |||||||||||||||||||
Purchases and sales | (47 | ) | ||||||||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||||||||
Ending Balance at December 31, 2014 | $ | 227 | ||||||||||||||||||
Schedule of asset allocation percentages for the pension plans by asset category | The weighted asset allocation percentages for the pension plans by asset category are shown in the table below, as of December 31, 2014 and 2013. | |||||||||||||||||||
At December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Cash and cash equivalents | 7.7 | % | 3.4 | % | ||||||||||||||||
Fixed income investments | 42.5 | 35.9 | ||||||||||||||||||
Equity investments | 14.4 | 18.9 | ||||||||||||||||||
Hedge funds | 35.4 | 41.8 | ||||||||||||||||||
Total | 100 | % | 100 | % |
Long_term_incentive_compensati1
Long term incentive compensation (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
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 year ended December 31, 2014. | ||||||||||||||
Restricted | Weighted-Average Grant Date Fair Value | ||||||||||||||
Stock Awards | |||||||||||||||
Outstanding restricted stock awards at January 1, 2014 | 356,138 | $ | 10.28 | ||||||||||||
Granted | 20,360 | $ | 8.29 | ||||||||||||
Vested | (157,292 | ) | $ | 10.37 | |||||||||||
Forfeitures | (5,960 | ) | $ | 10.61 | |||||||||||
Outstanding restricted stock awards at December 31, 2014 | 213,246 | $ | 10.01 | ||||||||||||
Schedule of weighted average option fair values and assumptions | Weighted average stock option fair values and assumptions for the years ended December 31, 2014 and 2013 are disclosed in the following table. | ||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Weighted average fair value | $4.49 | $5.63 | |||||||||||||
Dividend yield | — | — | |||||||||||||
Volatility | 55.67% | 55.95% | |||||||||||||
Risk-free interest rate | 1.82% | 2.23% | |||||||||||||
Expected life (in years) | 6.52 | 6.25 | |||||||||||||
Schedule of changes in outstanding stock option awards | Changes in the Company's outstanding stock option awards were as follows for the year ended December 31, 2014. | ||||||||||||||
Number of | Weighted- | Weighted- | Aggregate Intrinsic Value | ||||||||||||
Stock Option | Average | Average | |||||||||||||
Awards | Exercise Price | Remaining | |||||||||||||
Contractual | |||||||||||||||
Term (years) | |||||||||||||||
Outstanding stock option awards at January 1, 2014 | 442,133 | $ | 10.15 | 9.64 | $ | 5,422 | |||||||||
Granted | 521,249 | $ | 8.42 | 10 | — | ||||||||||
Exercises | (1,248 | ) | $ | 6.3 | 7.25 | — | |||||||||
Forfeitures/expirations | (52,335 | ) | $ | 10.07 | 8.62 | — | |||||||||
Outstanding stock option awards at December 31, 2014 | 909,799 | $ | 9.17 | 9.31 | $ | 408,757 | |||||||||
Schedule of stock-based compensation expense | The following table sets forth stock-based compensation expense recognized for the years ended December 31, 2014, 2013 and 2012. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive income (loss). During the three months ended June 30, 2013, as a result of merger related stock transactions, the Company accelerated $2 million of expense related to these awards (included as part of merger transaction costs) and is reflected in the amount shown below. | ||||||||||||||
Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(in millions) | |||||||||||||||
Stock-based compensation expense | $ | 4 | $ | 4 | $ | 5 | |||||||||
Performance Shares | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Schedule of weighted average option fair values and assumptions | The assumptions used in the Monte Carlo simulation, when estimating the fair value of the VCP, 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 December 31, 2014 | ||||||||||||||
($ in millions) | |||||||||||||||
Value Creation Program fair value | $ | 12 | $ | 12 | |||||||||||
Expected volatility | 11.93 | % | 11.7 | % | |||||||||||
Remaining contractual term | 3.21 years | 3.00 years | |||||||||||||
Expected dividend yield | 0 | % | 0 | % | |||||||||||
Risk free rate | 0.87 | % | 1.1 | % |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Components of (Provision) Benefit for Income Taxes | The components of the Company’s provision (benefit) for income taxes for the years ended December 31, 2014, 2013 and 2012 are shown in the table below. | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Current | (in millions) | |||||||||
Federal | $ | 3 | $ | (22 | ) | $ | (5 | ) | ||
State and local | (1 | ) | (3 | ) | 5 | |||||
2 | (25 | ) | — | |||||||
Deferred | ||||||||||
Federal | 14 | (319 | ) | 4 | ||||||
State and local | (3 | ) | (32 | ) | 2 | |||||
11 | (351 | ) | 6 | |||||||
Total provision (benefit) for income taxes | $ | 13 | $ | (376 | ) | $ | 6 | |||
Reconciliation of Statutory Federal Tax Rate to Effective Tax Rate | The following table shows the principal reasons for the differences between the effective income tax rate and the statutory federal income tax rate for the years ended December 31, 2014, 2013 and 2012. | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Statutory federal tax rate | 35 | % | 35 | % | 35 | % | ||||
State and local taxes, net of federal tax benefit | 2.8 | 2.2 | 4.3 | |||||||
Non-deductible interest expenses | (1.4 | ) | (0.4 | ) | 11.8 | |||||
Non-deductible goodwill impairment charge | — | (2.2 | ) | — | ||||||
Tax attribution reduction | — | (0.1 | ) | (4.3 | ) | |||||
Subsidiary basis adjustment | 0.8 | 1.3 | 19.1 | |||||||
Change in valuation allowance | (34.9 | ) | (5.9 | ) | (63.8 | ) | ||||
Change in unrecognized tax benefits | 2.2 | 2.4 | — | |||||||
Change in state tax laws and deferred items | (7.3 | ) | (0.2 | ) | 4.3 | |||||
Other, net | (0.8 | ) | (0.6 | ) | 6.4 | |||||
Effective tax rate | (3.6 | )% | 31.5 | % | 12.8 | % | ||||
Components of Deferred Tax Assets and Liabilities | Significant components of deferred income tax assets and liabilities as of December 31, 2014 and 2013 are shown in the following table. | |||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
(in millions) | ||||||||||
Deferred tax assets | ||||||||||
Deferred revenue | $ | — | $ | 4 | ||||||
Allowance for doubtful accounts | 6 | 7 | ||||||||
Deferred and other compensation | 17 | 13 | ||||||||
Capital investments | 6 | 6 | ||||||||
Debt, capitalized fees, and other interest | 104 | 148 | ||||||||
Pension and other post-employment benefits | 31 | 34 | ||||||||
Restructuring reserve | 15 | — | ||||||||
Net operating loss and credit carryforwards | 332 | 341 | ||||||||
Other, net | 16 | 21 | ||||||||
Total deferred tax assets | 527 | 574 | ||||||||
Valuation allowance | (353 | ) | (208 | ) | ||||||
Net deferred tax assets | $ | 174 | $ | 366 | ||||||
Deferred tax liabilities | ||||||||||
Fixed assets and capitalized software | $ | (13 | ) | $ | (33 | ) | ||||
Goodwill and intangible assets | (137 | ) | (285 | ) | ||||||
Deferred directory costs | (30 | ) | (35 | ) | ||||||
Investment in subsidiaries | (8 | ) | (10 | ) | ||||||
Gain on debt retirement | (16 | ) | (22 | ) | ||||||
Total deferred tax liabilities | $ | (204 | ) | $ | (385 | ) | ||||
Net deferred tax liability | $ | (30 | ) | $ | (19 | ) | ||||
Reconciliation of Gross Unrecognized Tax Benefits | The following table shows changes to and balances of unrecognized tax benefits for the years ended December 31, 2014 and 2013. | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | |||||||||
(in millions) | ||||||||||
Balance at beginning of period | $ | 19 | $ | 6 | ||||||
Gross additions for tax positions related to SuperMedia acquisition | — | 45 | ||||||||
Gross additions for tax positions related to the current year | — | 1 | ||||||||
Gross additions for tax positions related to prior years | 3 | — | ||||||||
Gross reductions for tax positions related to the lapse of applicable statute of limitations | (11 | ) | (33 | ) | ||||||
Settlements | — | — | ||||||||
Balance at end of period | $ | 11 | $ | 19 | ||||||
Schedule of Valuation and Qualifying Accounts | Deferred Income Tax Asset Valuation Allowance | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Balance at beginning of period | $ | 208 | 133 | $ | 157 | |||||
Net additions charged to revenue and expense | 125 | 75 | (24 | ) | ||||||
Net charges to other balance sheet accounts | 20 | — | — | |||||||
Balance at end of period | $ | 353 | $ | 208 | $ | 133 | ||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||
Quarter Ended | ||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Operating revenue | $ | 288 | $ | 335 | $ | 392 | $ | 429 | ||||||||
Operating income | $ | 19 | $ | (146 | ) | $ | (147 | ) | $ | (576 | ) | |||||
Net income (loss) | $ | (59 | ) | $ | (69 | ) | $ | (135 | ) | $ | (556 | ) | ||||
Comprehensive income (loss) | $ | (58 | ) | $ | (76 | ) | $ | (139 | ) | $ | (536 | ) | ||||
Basic and diluted earnings (loss) per share | $ | (5.84 | ) | $ | (4.58 | ) | $ | (7.85 | ) | $ | (32.29 | ) | ||||
The following tables set forth the Company's quarterly results of operations for the years ended December 31, 2014 and 2013. As a result of using the acquisition method of accounting to record the merger of Dex One and SuperMedia, the financial results of SuperMedia prior to April 30, 2013 have been excluded from our consolidated financial results. | ||||||||||||||||
Quarter Ended | ||||||||||||||||
31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 31-Dec-14 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Operating revenue | $ | 456 | $ | 474 | $ | 452 | $ | 433 | ||||||||
Operating income (loss) | $ | 7 | $ | 5 | $ | 25 | $ | (41 | ) | |||||||
Net (loss) | $ | (82 | ) | $ | (85 | ) | $ | (59 | ) | $ | (145 | ) | ||||
Comprehensive income (loss) | $ | (80 | ) | $ | (83 | ) | $ | (54 | ) | $ | (205 | ) | ||||
Basic and diluted earnings (loss) per share | $ | (4.74 | ) | $ | (4.93 | ) | $ | (3.41 | ) | $ | (8.35 | ) |
Parent_Company_Financial_State
Parent Company Financial Statements (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||
Schedule of Condensed Comprehensive Income (Loss) Statement | Condensed Parent Company Statements of Comprehensive Income (Loss) | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Expenses | $ | 24 | $ | 22 | $ | 13 | ||||
Partnership and equity (income) loss | 329 | 800 | (47 | ) | ||||||
Operating income (loss) | (353 | ) | (822 | ) | 34 | |||||
Interest expense, net | 34 | 32 | 34 | |||||||
Income (loss) before gains on early extinguishment of debt and provision (benefit) for income taxes | (387 | ) | (854 | ) | — | |||||
Gains on early extinguishment of debt | — | — | 71 | |||||||
Income (loss) before provision (benefit) for income taxes | (387 | ) | (854 | ) | 71 | |||||
Provision (benefit) for income taxes | (16 | ) | (35 | ) | 30 | |||||
Net income (loss) | (371 | ) | (819 | ) | 41 | |||||
Other comprehensive income (loss) | (51 | ) | 10 | (16 | ) | |||||
Comprehensive income (loss) | $ | (422 | ) | $ | (809 | ) | $ | 25 | ||
Schedule of Condensed Balance Sheet | Condensed Parent Company Balance Sheets | |||||||||
At December 31, | ||||||||||
2014 | 2013 | |||||||||
(in millions) | ||||||||||
Assets | ||||||||||
Current Assets | ||||||||||
Cash and cash equivalents | $ | 3 | $ | 3 | ||||||
Accrued tax receivable | 34 | 17 | ||||||||
Deferred tax assets | 3 | 1 | ||||||||
Total current assets | 40 | 21 | ||||||||
Deferred tax assets | 1 | — | ||||||||
Total Assets | $ | 41 | $ | 21 | ||||||
Liabilities and Shareholders’ (Deficit) | ||||||||||
Current Liabilities | ||||||||||
Affiliates payable, net | $ | 50 | $ | 15 | ||||||
Accounts payable and accrued liabilities | 7 | 2 | ||||||||
Accrued interest | 9 | 8 | ||||||||
Total current liabilities | 66 | 25 | ||||||||
Long-term debt | 252 | 236 | ||||||||
Unrecognized tax benefits | 2 | — | ||||||||
Investment in subsidiaries | 843 | 463 | ||||||||
Total shareholders' (deficit) | (1,122 | ) | (703 | ) | ||||||
Total Liabilities and Shareholders' (Deficit) | $ | 41 | $ | 21 | ||||||
Schedule of Condensed Cash Flow Statement | Condensed Parent Company Statements of Cash Flows | |||||||||
Years Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in millions) | ||||||||||
Cash flows from operating activities | $ | — | $ | — | $ | 2 | ||||
Cash flow from investing activities | ||||||||||
Additions to fixed assets and capitalized software | — | — | — | |||||||
Contributions to subsidiaries | — | — | — | |||||||
Intercompany loan | — | — | — | |||||||
Net cash (used) in investing activities | — | — | — | |||||||
Cash flow from financing activities | ||||||||||
Debt repayments | — | — | (27 | ) | ||||||
Net cash (used) in financing activities | — | — | (27 | ) | ||||||
Increase (decrease) in cash and cash equivalents | — | — | (25 | ) | ||||||
Cash and cash equivalents, beginning of year | 3 | 3 | 28 | |||||||
Cash and cash equivalents, end of year | $ | 3 | $ | 3 | $ | 3 | ||||
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 1998 | Nov. 30, 1996 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2011 | Apr. 30, 2013 | Sep. 30, 2014 |
segment | Company | Company | plan | ||||||||
source | |||||||||||
Directory | |||||||||||
client | |||||||||||
employee | |||||||||||
state | |||||||||||
General: | |||||||||||
Number of business clients (more than 490,000) | 490,000 | ||||||||||
Number of Sales Employees | 1,900 | ||||||||||
Number of directories published (more than 1,700) | 1,700 | ||||||||||
Number of states in which directories are published | 42 | 42 | |||||||||
Number of directories distributed to businesses and residences in US | 100,000,000 | ||||||||||
Number of directories accounting for more than 1% of revenue | 0 | ||||||||||
Number of employees expected to be laid-off | 1,000 | ||||||||||
Revenue Recognition: | |||||||||||
Service contract period | 12 months | ||||||||||
Directory useful life | 12 months | ||||||||||
Number of sources for digital advertising revenue | 2 | ||||||||||
Barter Transactions [Abstract] | |||||||||||
Maximum revenue associated with barter transactions as a percentage of total revenue | 2.00% | ||||||||||
Cash and Cash Equivalents: | |||||||||||
Cash and cash equivalents | $156 | $171 | $156 | $172 | $171 | $258 | |||||
Accounts Receivable: | |||||||||||
Accounts receivable, net | 218 | 151 | 218 | 151 | |||||||
Allowance for doubtful accounts receivable | 26 | 30 | 26 | 20 | 30 | 36 | |||||
Unbilled receivables | 1 | 1 | |||||||||
Goodwill and Intangible Assets: | |||||||||||
Goodwill | 315 | 315 | 315 | 0 | 315 | ||||||
Intangible assets, net | 1,381 | 794 | 1,381 | 794 | |||||||
Number of reporting units | 4 | ||||||||||
Goodwill impairment | 74 | 0 | 74 | ||||||||
Impairment charge of intangible assets | 384 | 384 | 384 | ||||||||
Advertising Costs: | |||||||||||
Advertising expense | 4 | 7 | 8 | ||||||||
Capital Stock: | |||||||||||
Capital stock authorized | 310,000,000 | 310,000,000 | |||||||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | |||||||
Preferred stock, share authorized (in shares) | 10,000,000 | 10,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | |||||||||
Common stock, shares outstanding (in shares) | 17,601,520 | 17,608,580 | 17,601,520 | 17,608,580 | |||||||
Earnings Per Share [Abstract] | |||||||||||
Outstanding (in shares) | 356,138 | 356,138 | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||||||||||
Debt Instrument, Fair Value Disclosure | 1,082 | ||||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Total | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||||||||||
Debt Instrument, Fair Value Disclosure | 912 | 912 | 897 | ||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Total | Scenario, Previously Reported | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||||||||||
Debt Instrument, Fair Value Disclosure | 697 | 697 | 695 | ||||||||
Recurring | Level 2 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||||||||||
Money market funds | 41 | 41 | 41 | 41 | |||||||
Certificates of deposit | 9 | 8 | 9 | 8 | |||||||
Recurring | Level 3 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||||||||||
Assets held-for-sale | 16 | 16 | |||||||||
Stock Compensation Plan | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Antidilutive securities (shares) | 400,000 | 400,000 | 500,000 | ||||||||
Capitalized software | |||||||||||
Accounts Receivable: | |||||||||||
Useful life for capitalization | 1 year | ||||||||||
Newdex, Inc. | Dex One | |||||||||||
Bankruptcy Filing and Merger of Dex One and SuperMedia: | |||||||||||
Merger, number of shares of acquiree common stock to be converted to acquirer common stock | 0.2 | ||||||||||
Newdex, Inc. | Super Media, Inc. | |||||||||||
Bankruptcy Filing and Merger of Dex One and SuperMedia: | |||||||||||
Merger, number of shares of acquiree common stock to be converted to acquirer common stock | 0.4386 | ||||||||||
Top Ten Directories | Sales Revenue | |||||||||||
General: | |||||||||||
Concentration risk percentage | 5.00% | ||||||||||
Credit Concentration Risk | Advertising Revenue Local Businesses | |||||||||||
General: | |||||||||||
Concentration risk percentage | 86.00% | ||||||||||
Credit Concentration Risk | Advertising Revenue Large Regional Chains | |||||||||||
General: | |||||||||||
Concentration risk percentage | 14.00% | ||||||||||
The Dun & Bradstreet Corporation | |||||||||||
General: | |||||||||||
Spin-off, number of separate public companies | 2 | 3 | |||||||||
Pension | |||||||||||
Pension and Other Post-Employment Benefits | |||||||||||
Increase to pension obligation | 38 | ||||||||||
Curtailment gain | 2 | ||||||||||
Non Qualified Pension Plan | |||||||||||
Pension and Other Post-Employment Benefits | |||||||||||
Number of non-qualified pension plans | 2 | ||||||||||
Other Postretirement Benefit Plan | |||||||||||
Pension and Other Post-Employment Benefits | |||||||||||
Credit to expense related to plan amendments | 13 | 13 | |||||||||
Minimum | |||||||||||
General: | |||||||||||
Expected charges | 70 | 70 | |||||||||
Maximum | |||||||||||
General: | |||||||||||
Expected charges | 100 | 100 | |||||||||
Employee Severance | |||||||||||
General: | |||||||||||
Expense | 43 | 43 | |||||||||
Executive Officer | Employee Severance | |||||||||||
General: | |||||||||||
Expense | 10 | ||||||||||
General and Administrative Expense | Other Postretirement Benefit Plan | |||||||||||
Pension and Other Post-Employment Benefits | |||||||||||
Credit to expense related to plan amendments | $13 |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies - Fixed Assets and Computer Software, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building and building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Building and building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Computer and data processing equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Capitalized software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies - Finite-Lived Intangible Assets, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Directory services agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated remaining useful lives | 4 years |
Client relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated remaining useful lives | 2 years |
Trademarks and domain names | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated remaining useful lives | 4 years |
Patented technologies | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated remaining useful lives | 3 years |
Advertising commitment | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated remaining useful lives | 2 years |
Description_of_Business_and_Su6
Description of Business and Summary of Significant Accounting Policies - Earnings Per Share, Basic and Diluted (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Net income (loss) | ($145) | ($59) | ($85) | ($82) | ($556) | ($135) | ($69) | ($59) | ($371) | ($819) | $41 |
Basic and diluted weighted average common shares outstanding (in shares) | 17.3 | 14.9 | 10.1 | ||||||||
Basic and diluted earnings (loss) per common share (in dollars per share) | ($8.35) | ($3.41) | ($4.93) | ($4.74) | ($32.29) | ($7.85) | ($4.58) | ($5.84) | ($21.43) | ($54.89) | $4.09 |
Description_of_Business_and_Su7
Description of Business and Summary of Significant Accounting Policies - Carrying Values and Estimated Fair Values of Debt Obligations (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $2,396 | $2,675 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 2,396 | 2,675 |
Long-term Debt, Fair Value | 1,950 | 2,045 |
Senior secured credit facilities | SuperMedia Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 841 | 935 |
Senior secured credit facilities | SuperMedia Inc. | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 841 | 935 |
Long-term Debt, Fair Value | 829 | 912 |
Senior secured credit facilities | R.H. Donnelley Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 612 | 685 |
Senior secured credit facilities | R.H. Donnelley Inc. | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 612 | 685 |
Long-term Debt, Fair Value | 435 | 414 |
Senior secured credit facilities | Dex Media East, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 354 | 426 |
Senior secured credit facilities | Dex Media East, Inc. | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 354 | 426 |
Long-term Debt, Fair Value | 281 | 289 |
Senior secured credit facilities | Dex Media West, Inc. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 337 | 393 |
Senior secured credit facilities | Dex Media West, Inc. | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 337 | 393 |
Long-term Debt, Fair Value | 293 | 307 |
Senior subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 252 | 236 |
Senior subordinated notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 252 | 236 |
Long-term Debt, Fair Value | $112 | $123 |
Acquisition_Accounting_Purchas
Acquisition Accounting - Purchase Price Allocation (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Apr. 30, 2013 |
In Millions, unless otherwise specified | |||||
Fair value of assets acquired | |||||
Goodwill | $315 | $315 | $0 | ||
Super Media, Inc. | |||||
Fair value of assets acquired | |||||
Cash and cash equivalents | 154 | ||||
Accounts receivable | 111 | ||||
Unbilled accounts receivable | 316 | 316 | |||
Other current assets | 64 | ||||
Fixed assets and capitalized software | 42 | ||||
Intangible assets | 635 | 635 | |||
Goodwill | 389 | 389 | |||
Pension assets | 58 | ||||
Other non-current assets | 4 | ||||
Total fair value of assets acquired | 1,773 | ||||
Fair value of liabilities acquired | |||||
Accounts payable and accrued liabilities | 114 | ||||
Long-term debt (including current maturities) | 1,082 | ||||
Employee benefit obligations | 99 | ||||
Unrecognized tax benefits | 45 | ||||
Deferred tax liabilities | 351 | ||||
Total fair value of liabilities acquired | 1,691 | ||||
Total allocable purchase price | $82 |
Acquisition_Accounting_Compone
Acquisition Accounting - Components of Intangible Assets (Details) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2013 | Mar. 31, 2014 |
Directory services agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated remaining useful lives | 5 years | |
Client relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated remaining useful lives | 3 years | |
Trademarks and domain names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated remaining useful lives | 5 years | |
Patented technologies | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated remaining useful lives | 4 years | |
Super Media, Inc. | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value of intangible assets | 635 | $635 |
Super Media, Inc. | Directory services agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value of intangible assets | 145 | |
Super Media, Inc. | Client relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value of intangible assets | 420 | |
Super Media, Inc. | Trademarks and domain names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value of intangible assets | 60 | |
Super Media, Inc. | Patented technologies | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value of intangible assets | 10 |
Acquisition_Accounting_Pro_For
Acquisition Accounting - Pro Forma Information (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition, Pro Forma Information [Abstract] | ||
Operating revenue | $2,184 | $2,070 |
Net (loss) | ($621) | ($141) |
Acquisition_Accounting_Additio
Acquisition Accounting - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||
Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ||||||
Stock issued for acquisition (shares) | 6,900,000 | |||||
Share price before adjustment for reverse stock split ($ per share) | $11.90 | |||||
Common stock, shares issued (in shares) | 17,601,520 | 17,608,580 | 17,601,520 | |||
Fair value of common stock issued | $82,000,000 | $82,000,000 | ||||
Goodwill | 315,000,000 | 315,000,000 | 315,000,000 | 0 | ||
Goodwill, Impairment Loss | 74,000,000 | 0 | 74,000,000 | |||
Intangible assets excess earnings discount rate | 17.50% | |||||
Accumulated merger transaction costs | 42,000,000 | |||||
Merger transaction costs | 0 | 22,000,000 | 12,000,000 | |||
General and Administrative Expense | ||||||
Business Acquisition [Line Items] | ||||||
Merger transaction costs | 0 | 22,000,000 | 12,000,000 | |||
Dex Media, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Deferred revenue, revenue not to be recognized | 386,000,000 | |||||
Deferred costs, cost not to be recognized | 93,000,000 | |||||
Accumulated merger transaction costs | 42,000,000 | |||||
Merger transaction costs | 22,000,000 | 12,000,000 | ||||
Super Media, Inc. | Dex Media, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Merger, number of shares of acquiree common stock to be converted to acquirer common stock | 0.4386 | |||||
Reverse stock split ratio | 0.2 | |||||
Directory services agreements | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets excess earnings discount rate | 21.00% | |||||
Super Media, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Current shareholders' ownership interest in the post-merger combined company (as a percent) | 40.00% | |||||
Common stock, shares issued (in shares) | 15,600,000 | |||||
Outstanding debt, fair value | 1,082,000,000 | |||||
Outstanding debt, face amount | 1,442,000,000 | |||||
Outstanding debt, discount | 360,000,000 | |||||
Goodwill | 389,000,000 | 389,000,000 | ||||
Fair value of intangible assets | 635,000,000 | 635,000,000 | ||||
Deferred revenue | 386,000,000 | |||||
Deferred costs | 122,000,000 | |||||
Unbilled accounts receivable | 316,000,000 | 316,000,000 | ||||
Super Media, Inc. | Directory services agreements | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of intangible assets | 145,000,000 | |||||
Super Media, Inc. | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity acquired | 100.00% | |||||
Value of equity issued | 82,000,000 | |||||
Dex One | ||||||
Business Acquisition [Line Items] | ||||||
Current shareholders' ownership interest in the post-merger combined company (as a percent) | 60.00% | |||||
Share price ($ per share) | $2.38 | |||||
Deferred financing costs | $8,000,000 |
Goodwill_Intangible_Assets_and2
Goodwill, Intangible Assets and Impairment - Schedule of Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | |||
Goodwill Gross, beginning of period | $389 | $0 | |
Accumulated Impairment Losses, beginning of period | -74 | 0 | |
Goodwill Net , beginning of period | 315 | 0 | |
Additions | 0 | 389 | |
Impairments | -74 | 0 | -74 |
Goodwill Gross, end of period | 389 | 389 | 389 |
Accumulated Impairment Losses, end of period | -74 | -74 | -74 |
Goodwill Net, end of period | $315 | $315 | $315 |
Goodwill_Intangible_Assets_and3
Goodwill, Intangible Assets and Impairment - Impairment Charge by Intangible Asset (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge of intangible assets | $384 | $384 | $384 |
Directory services agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge of intangible assets | 253 | ||
Client relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge of intangible assets | 38 | ||
Trademarks and domain names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge of intangible assets | 86 | ||
Patented technologies | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge of intangible assets | $7 |
Goodwill_Intangible_Assets_and4
Goodwill, Intangible Assets and Impairment - Schedule of Finite-Lived Intangible Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $1,865 | $1,865 |
Accumulated Amortization | 1,071 | 484 |
Net | 794 | 1,381 |
Directory services agreements | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 666 | 666 |
Accumulated Amortization | 307 | 97 |
Net | 359 | 569 |
Client relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 924 | 924 |
Accumulated Amortization | 649 | 348 |
Net | 275 | 576 |
Trademarks and domain names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 222 | 222 |
Accumulated Amortization | 91 | 29 |
Net | 131 | 193 |
Patented technologies | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 42 | 42 |
Accumulated Amortization | 16 | 4 |
Net | 26 | 38 |
Advertising commitment | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 11 | 11 |
Accumulated Amortization | 8 | 6 |
Net | $3 | $5 |
Goodwill_Intangible_Assets_and5
Goodwill, Intangible Assets and Impairment - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | Mar. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $315 | $315 | $315 | $0 | ||
WACC utilized in the company's analysis using the income approach (as a percentage) | 17.50% | |||||
Goodwill impairment | 74 | 0 | 74 | |||
Goodwill additions | 0 | 389 | ||||
Definite-lived intangible assets | 1,381 | 794 | 1,381 | |||
Impairment of definite-lived intangible assets | 384 | 384 | 384 | |||
Amortization of intangible assets | 587 | 703 | 350 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
2015 | 373 | |||||
2016 | 237 | |||||
2017 | 103 | |||||
2018 | 81 | |||||
Super Media, Inc. | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 389 | 389 | ||||
Goodwill additions | $389 |
Merger_Transaction_and_Integra2
Merger Transaction and Integration Costs (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||
Accumulated merger transaction costs | $42,000,000 | ||
Merger transaction costs | 0 | 22,000,000 | 12,000,000 |
Merger integration costs | 41,000,000 | 54,000,000 | 0 |
Total merger related costs | 41,000,000 | 76,000,000 | 12,000,000 |
General and Administrative Expense | |||
Business Acquisition [Line Items] | |||
Merger transaction costs | 0 | 22,000,000 | 12,000,000 |
Employee Severance | |||
Business Acquisition [Line Items] | |||
Merger integration costs | 13,000,000 | 32,000,000 | |
Dex One | |||
Business Acquisition [Line Items] | |||
Deferred financing costs | $8,000,000 |
Business_Transformation_Costs_1
Business Transformation Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Number of employees expected to be laid-off | 1,000 | |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Expense | $43 | $43 |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve, beginning balance | 0 | |
Expense | 43 | 43 |
Payments | -5 | |
Restructuring Reserve, ending balance | 38 | 38 |
Executive Officer | Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Expense | 10 | |
Restructuring Reserve [Roll Forward] | ||
Expense | 10 | |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected charges | 70 | 70 |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected charges | $100 | $100 |
Additional_Financial_Informati2
Additional Financial Information - Depreciation and Amortization (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | $643 | $765 | $419 |
Amortization of intangible assets | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | 587 | 703 | 350 |
Amortization of capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | 38 | 43 | 53 |
Depreciation of fixed assets | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | $18 | $19 | $16 |
Additional_Financial_Informati3
Additional Financial Information - Allowance For Doubtful Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Balance at beginning of period | $26 | $20 | $36 | |||
Additions charged to revenue/expense | 51 | [1] | 37 | [1] | 46 | [1] |
Deductions | -47 | [2] | -39 | [2] | -62 | [2] |
Charged to other account | 0 | 8 | 0 | |||
Ending balance at December 31 | $30 | $26 | $20 | |||
[1] | Includes bad debt expense and sales allowance (recorded as contra revenue). | |||||
[2] | Amounts written off as uncollectible, net of recoveries and sales adjustments. |
Additional_Financial_Informati4
Additional Financial Information - Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $14 | $20 |
Accrued salaries and wages | 48 | 44 |
Accrued severance | 39 | 5 |
Accrued taxes | 16 | 21 |
Accrued expenses | 31 | 56 |
Customer refunds, advance payments and other | 19 | 20 |
Total accounts payable and accrued liabilities | $167 | $166 |
Additional_Financial_Informati5
Additional Financial Information - Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Net income (loss) | ($145) | ($59) | ($85) | ($82) | ($556) | ($135) | ($69) | ($59) | ($371) | ($819) | $41 |
Adjustments for pension and other post-employment benefits: Gross | |||||||||||
Accumulated actuarial losses of benefit plans | -39 | 11 | -21 | ||||||||
Reclassifications included in net income (loss): | |||||||||||
Amortization of actuarial losses | 0 | 3 | 1 | ||||||||
Settlement losses | 1 | 2 | 4 | ||||||||
Settlement of plan amendments | -13 | 0 | 0 | ||||||||
Total reclassifications included in net income (loss) | -12 | 5 | 5 | ||||||||
Adjustments for pension and other post-employment benefits | -51 | 16 | -16 | ||||||||
Adjustments for pension and other post-employment benefits: Taxes | |||||||||||
Accumulated actuarial losses of benefit plans | -4 | -4 | 0 | ||||||||
Reclassifications included in net income (loss): | |||||||||||
Amortization of actuarial losses | 0 | -1 | 0 | ||||||||
Settlement losses | -1 | -1 | 0 | ||||||||
Settlement of plan amendments | 5 | 0 | 0 | ||||||||
Total reclassifications included in net income (loss) | 4 | -2 | 0 | ||||||||
Adjustments for pension and other post-employment benefits | 0 | -6 | 0 | ||||||||
Adjustments for pension and other post-employment benefits: Net | |||||||||||
Accumulated actuarial losses of benefit plans | -43 | 7 | -21 | ||||||||
Reclassifications included in net income (loss): | |||||||||||
Amortization of actuarial losses | 0 | 2 | 1 | ||||||||
Settlement losses | 0 | 1 | 4 | ||||||||
Settlement of plan amendments | -8 | 0 | 0 | ||||||||
Total reclassifications included in net income (loss) | -8 | 3 | 5 | ||||||||
Adjustments for pension and other post-employment benefits | -51 | 10 | -16 | ||||||||
Total comprehensive income (loss) | ($422) | ($809) | $25 |
Additional_Financial_Informati6
Additional Financial Information - Accumulated Other Comprehensive (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in accumulated other comprehensive income, gross | |||
Accumulated other comprehensive income, beginning balance | ($47) | ||
Accumulated other comprehensive income, beginning balance | -82 | -31 | -47 |
Changes in accumulated other comprehensive income, tax | |||
Accumulated other comprehensive income, beginning balance | 3 | ||
Accumulated other comprehensive income, beginning balance | -3 | -3 | 3 |
Changes in accumulated other comprehensive income, net | |||
Accumulated other comprehensive income, beginning balance | -44 | ||
Accumulated other comprehensive income, ending balance | -85 | -34 | -44 |
Accumulated Defined Benefit Plans Adjustment | |||
Changes in accumulated other comprehensive income, gross | |||
Adjustments for pension and other post-employment benefits, net of amortization | -51 | 16 | |
Changes in accumulated other comprehensive income, tax | |||
Adjustments for pension and other post-employment benefits, net of amortization | 0 | -6 | |
Changes in accumulated other comprehensive income, net | |||
Adjustments for pension and other post-employment benefits, net of amortization | ($51) | $10 |
Additional_Financial_Informati7
Additional Financial Information - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Mar. 31, 2014 | Feb. 01, 2010 |
Business Acquisition [Line Items] | |||||||
Severance Costs | $56 | $32 | $5 | ||||
Merger integration costs | 41 | 54 | 0 | ||||
Proceeds from sale of land and building | 13 | 13 | 0 | 0 | |||
Gain on sale of land and building | 1 | ||||||
Interest expense, net | 356 | 316 | 196 | ||||
Non-cash interest expense | 93 | 69 | 40 | ||||
Reorganization items | 0 | 38 | 0 | ||||
Write-off of remaining unamortized debt fair value adjustment | 32 | 32 | |||||
Professional fees | 6 | ||||||
Tax valuation allowance recorded in accumulated other comprehensive loss | 34 | 34 | 14 | ||||
Interest Paid, Net | 269 | 254 | 165 | ||||
Revaluation of Liabilities | |||||||
Business Acquisition [Line Items] | |||||||
Discount | 120 | ||||||
Employee Severance | |||||||
Business Acquisition [Line Items] | |||||||
Expense | 43 | 43 | |||||
Merger integration costs | 13 | 32 | |||||
Long-Term Disability Plan | |||||||
Business Acquisition [Line Items] | |||||||
Credit to expense related to plan amendments | 29 | ||||||
Other Post-Employment Benefits | |||||||
Business Acquisition [Line Items] | |||||||
Credit to expense related to plan amendments | 13 | 13 | |||||
General and Administrative Expense | |||||||
Business Acquisition [Line Items] | |||||||
Credit to expense related to publishing agreement liability settlement | 10 | ||||||
Credit to expense associated with reduction of operating tax liabilities | 5 | ||||||
Impairment loss on property | 3 | 5 | |||||
General and Administrative Expense | Long-Term Disability Plan | |||||||
Business Acquisition [Line Items] | |||||||
Credit to expense related to plan amendments | 29 | 29 | |||||
General and Administrative Expense | Other Post-Employment Benefits | |||||||
Business Acquisition [Line Items] | |||||||
Credit to expense related to plan amendments | $13 |
Fixed_Assets_and_Capitalized_S2
Fixed Assets and Capitalized Software (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets and capitalized software | $317 | $315 |
Less accumulated depreciation and amortization | 253 | 209 |
Fixed assets and capitalized software, net | 64 | 106 |
Land, buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets and capitalized software | 14 | 14 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets and capitalized software | 13 | 21 |
Computer and data processing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets and capitalized software | 46 | 37 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets and capitalized software | 18 | 20 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets and capitalized software | 225 | 222 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets and capitalized software | $1 | $1 |
Fixed_Assets_and_Capitalized_S3
Fixed Assets and Capitalized Software - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $643 | $765 | $419 |
Fixed Assets and Computer Software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $56 | $62 | $69 |
LongTerm_Debt_Schedule_of_Outs
Long-Term Debt - Schedule of Outstanding Debt Obligations (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $2,396 | $2,675 |
Less: current maturities of long-term debt | 124 | 154 |
Long-term debt | 2,272 | 2,521 |
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt interest rate at period end | 11.60% | 11.60% |
Total debt | 841 | 935 |
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt interest rate at period end | 9.75% | 9.75% |
Total debt | 612 | 685 |
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt interest rate at period end | 6.00% | 6.00% |
Total debt | 354 | 426 |
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt interest rate at period end | 8.00% | 8.00% |
Total debt | 337 | 393 |
Senior subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt stated percentage | 14.00% | 14.00% |
Total debt | $252 | $236 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | Nov. 23, 2013 | Apr. 30, 2013 | Sep. 16, 2014 | Jun. 16, 2014 | |
Debt Instrument [Line Items] | ||||||||||
Total debt principal payments | $367,000,000 | $505,000,000 | $401,000,000 | |||||||
Gains on early extinguishment of debt | 2,000,000 | 9,000,000 | 2,000,000 | 9,000,000 | 140,000,000 | |||||
Permitted cash expenditure | 15,000,000 | |||||||||
Scenario, Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Permitted cash expenditure | 5,000,000 | |||||||||
Amended and Restated Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred debt issuance costs | 4,000,000 | |||||||||
Covenant, repurchase debt, maximum period to repurchase debt | 180 days | |||||||||
Total debt principal payments | 367,000,000 | 505,000,000 | 101,000,000 | |||||||
Mandatory and optional principal payments at par | 292,000,000 | 404,000,000 | ||||||||
Amount of debt prepaid | 381,000,000 | 541,000,000 | 137,000,000 | |||||||
Gains on early extinguishment of debt | 9,000,000 | |||||||||
Non-taxable gain on early extinguishment of debt before offsetting administrative fees | 36,000,000 | |||||||||
Debt extinguishment costs | 1,000,000 | |||||||||
Write off of debt discount associated with repurchase of debt | 26,000,000 | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt fair value | 1,082,000,000 | |||||||||
Outstanding debt, face amount | 1,044,000,000 | 1,442,000,000 | ||||||||
Liabilities fair value adjustment | 360,000,000 | |||||||||
Amortization of debt discount | 74,000,000 | 46,000,000 | ||||||||
Loss on repurchase of debt | 11,000,000 | 26,000,000 | ||||||||
Debt unamortized discount | 203,000,000 | |||||||||
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 | Super Media Amended and Restated Credit Facility | Principal and Interest Payments Option One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt variable interest rate floor percentage | 4.00% | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 0.50% | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt stated percentage | 3.00% | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 8.60% | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 1.00% | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 7.60% | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Interest Period Option One | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 1 month | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Interest Period Option Two | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 2 months | |||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Interest Period Option Three | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 3 months | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | ||||||||||
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 | RHDI Amended and Restated Credit Facility | Principal and Interest Payments Option One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt variable interest rate floor percentage | 4.00% | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 0.50% | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt stated percentage | 3.00% | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 6.75% | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 1.00% | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 5.75% | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Interest Period Option One | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 1 month | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Interest Period Option Two | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 2 months | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Interest Period Option Three | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 3 months | |||||||||
Amended and Restated Credit Facility | RHDI Amended and Restated Credit Facility | Interest Period Option Four | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 6 months | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | 2013 and 2014 | ||||||||||
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 | Dex Media East Amended and Restated Credit Facility | 2015 and 2016 | ||||||||||
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 East Amended and Restated Credit Facility | Principal and Interest Payments Option One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt variable interest rate floor percentage | 4.00% | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 0.50% | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt stated percentage | 3.00% | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 3.00% | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 1.00% | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 2.00% | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Interest Period Option One | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 1 month | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Interest Period Option Two | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 2 months | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Interest Period Option Three | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 3 months | |||||||||
Amended and Restated Credit Facility | Dex Media East Amended and Restated Credit Facility | Interest Period Option Four | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 6 months | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
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 | Principal and Interest Payments Option One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt variable interest rate floor percentage | 4.00% | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 0.50% | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt stated percentage | 3.00% | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 5.00% | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 1.00% | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt basis spread on variable rate | 4.00% | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Interest Period Option One | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 1 month | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Interest Period Option Two | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 2 months | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Interest Period Option Three | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 3 months | |||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Interest Period Option Four | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest period | 6 months | |||||||||
Senior subordinated notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt stated percentage | 14.00% | 14.00% | 14.00% | |||||||
Total debt principal payments | 29,000,000 | 46,000,000 | ||||||||
Amount of debt prepaid | 35,000,000 | 54,000,000 | ||||||||
Gains on early extinguishment of debt | 2,000,000 | |||||||||
Debt extinguishment costs | 1,000,000 | 1,000,000 | ||||||||
Paid-in-kind interest | 16,000,000 | 16,000,000 | ||||||||
Gain on extinguishment of debt | 6,000,000 | 8,000,000 | ||||||||
Write-off of unamortized debt fair value adjustment | 4,000,000 | 7,000,000 | ||||||||
Senior subordinated notes | Dex One Senior Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding debt, face amount | $16,000,000 | |||||||||
Debt stated percentage | 12.00% | |||||||||
Maximum stated interest rate percentage | 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 Ending March 31, 2014 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of interest payments made in cash | 50.00% | |||||||||
Percentage of interest payments made with PIK interest | 50.00% | |||||||||
Senior subordinated notes | Dex One Senior Subordinated Notes | Semi-Annual Interest Period Ending September 30, 2014 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of interest payments made in cash | 50.00% | |||||||||
Percentage of interest payments made with PIK interest | 50.00% |
LongTerm_Debt_Schedule_of_Futu
Long-Term Debt - Schedule of Future Principal Payments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Future principal payments 2015 | $124 |
Future principal payments 2016 | 2,223 |
Future principal payments 2017 | $252 |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Obligations [Line Items] | |||
Rent and lease expense | $25 | $26 | $19 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | 21 | ||
2016 | 17 | ||
2017 | 13 | ||
2018 | 9 | ||
2019 | 2 | ||
Thereafter | 0 | ||
Total | 62 | ||
Datacenter and Server Assessment, Migration and Ongoing Management and Administration Services | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Purchase obligation, initial amount | 27 | ||
Purchase obligation, outstanding | $10 |
Employee_Benefits_Net_Periodic
Employee Benefits - Net Periodic Benefit Expense (Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $0 | $1 | $0 |
Interest cost | 28 | 22 | 11 |
Expected return on assets | -37 | -31 | -14 |
Actuarial loss, net | 0 | 3 | 1 |
Prior service cost | 0 | 0 | 0 |
Settlement (gains) losses | 1 | 2 | 4 |
Net periodic cost (income) | -8 | -3 | 2 |
Other Post-Employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 1 | 0 |
Expected return on assets | 0 | 0 | 0 |
Actuarial loss, net | 0 | 0 | 0 |
Prior service cost | 0 | 0 | 0 |
Settlement (gains) losses | -13 | 0 | 0 |
Net periodic cost (income) | ($13) | $1 | $0 |
Employee_Benefits_Assumptions_
Employee Benefits - Assumptions Used in Determining Net Periodic Benefit Expense (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.77% | 3.85% | 4.80% |
Expected return on plan assets | 6.47% | 6.47% | 7.50% |
Rate of compensation increase | 3.50% | 3.50% | 0.00% |
Other Post-Employment Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 0.00% | 4.18% | 0.00% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 3.50% | 0.00% |
Initial trend rate-pre Medicare | 0.00% | 8.25% | 0.00% |
Initial trend rate-post Medicare | 0.00% | 7.25% | 0.00% |
Ultimate trend rate | 0.00% | 5.00% | 0.00% |
Employee_Benefits_Funded_Statu
Employee Benefits - Funded Status (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension | |||
Change in Benefit Obligations | |||
At January 1 | $645 | $256 | |
Acquisition of SuperMedia plans on April 30, 2013 | 0 | 506 | |
Service cost | 0 | 1 | 0 |
Interest cost | 28 | 22 | 11 |
Actuarial loss (gain), net | 115 | -59 | |
Benefits paid | -81 | -81 | |
Curtailment (gain) | -2 | 0 | |
Settlement of plan amendments (gain) | 0 | 0 | |
Benefit obligations at December 31 | 705 | 645 | 256 |
Change in Plan Assets | |||
At January 1 | 618 | 178 | |
SuperMedia assets received on April 30, 2013 | 0 | 531 | |
Plan contributions | 9 | 5 | |
Actual return (loss) on plan assets | 96 | -15 | |
Benefits paid | -81 | -81 | |
Plan assets at December 31 | 642 | 618 | 178 |
Funded Status at December 31 (plan assets less benefit obligations) | -63 | -27 | |
Other Post-Employment Benefits | |||
Change in Benefit Obligations | |||
At January 1 | 15 | 0 | |
Acquisition of SuperMedia plans on April 30, 2013 | 0 | 22 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 1 | 0 |
Actuarial loss (gain), net | 1 | 2 | |
Benefits paid | 0 | -10 | |
Curtailment (gain) | 0 | 0 | |
Settlement of plan amendments (gain) | -16 | 0 | |
Benefit obligations at December 31 | 0 | 15 | 0 |
Change in Plan Assets | |||
Benefits paid | 0 | -10 | |
Funded Status at December 31 (plan assets less benefit obligations) | $0 | ($15) |
Employee_Benefits_Amounts_Reco
Employee Benefits - Amounts Recognized in Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ||
Non-current liabilities | ($127) | ($132) |
Pension | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ||
Non-current assets | 45 | 41 |
Current liabilities | -1 | -1 |
Non-current liabilities | -107 | -67 |
Net asset (liability) at December 31 | -63 | -27 |
Other Post-Employment Benefits | ||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ||
Non-current assets | 0 | 0 |
Current liabilities | 0 | -1 |
Non-current liabilities | 0 | -14 |
Net asset (liability) at December 31 | $0 | ($15) |
Employee_Benefits_Accumulated_
Employee Benefits - Accumulated Benefit Obligation Greater than Plan Assets (Details) (Pension, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||
Accumulated benefit obligation | $428 | $386 |
Projected benefit obligation | 428 | 389 |
Plan assets | $320 | $321 |
Employee_Benefits_Accumulated_1
Employee Benefits - Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial (loss), net | ($82) | ($29) |
Other Post-Employment Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial (loss), net | $0 | ($2) |
Employee_Benefits_Assumptions_1
Employee Benefits - Assumptions Used In Determining Benefit Obligations (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 3.86% | 4.77% |
Rate of compensation increase | 0.00% | 3.50% |
Other Post-Employment Benefits | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate | 0.00% | 5.01% |
Rate of compensation increase | 0.00% | 3.50% |
Initial trend rate pre-Medicare | 0.00% | 8.00% |
Initial trend rate Medicare | 0.00% | 7.50% |
Ultimate trend rate | 0.00% | 5.00% |
Employee_Benefits_Estimated_Fu
Employee Benefits - Estimated Future Benefit Payments (Details) (Pension, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2015 | $71 |
2016 | 60 |
2017 | 56 |
2018 | 53 |
2019 | 51 |
2020 to 2024 | $219 |
Employee_Benefits_Pension_Plan
Employee Benefits - Pension Plan Assets by Asset Category (Details) (Pension, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $642 | $618 | $178 |
Level 1 (quoted prices in active markets) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 24 | |
Level 2 (significant observable input) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 408 | 336 | |
Level 3 (significant unobservable inputs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 227 | 258 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 22 | |
Cash and cash equivalents | Level 1 (quoted prices in active markets) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 4 | |
Cash and cash equivalents | Level 2 (significant observable input) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 43 | 18 | |
Cash and cash equivalents | Level 3 (significant unobservable inputs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 92 | 96 | |
Equity funds | Level 1 (quoted prices in active markets) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds | Level 2 (significant observable input) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 92 | 96 | |
Equity funds | Level 3 (significant unobservable inputs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | ||
Equity securities | Level 1 (quoted prices in active markets) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | ||
Equity securities | Level 2 (significant observable input) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Equity securities | Level 3 (significant unobservable inputs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. treasuries and agencies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 228 | 180 | |
U.S. treasuries and agencies | Level 1 (quoted prices in active markets) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. treasuries and agencies | Level 2 (significant observable input) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 228 | 180 | |
U.S. treasuries and agencies | Level 3 (significant unobservable inputs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16 | 16 | |
Corporate bonds | Level 1 (quoted prices in active markets) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | Level 2 (significant observable input) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16 | 16 | |
Corporate bonds | Level 3 (significant unobservable inputs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29 | 26 | |
Other fixed income | Level 1 (quoted prices in active markets) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other fixed income | Level 2 (significant observable input) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29 | 26 | |
Other fixed income | Level 3 (significant unobservable inputs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 227 | 258 | |
Hedge funds | Level 1 (quoted prices in active markets) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge funds | Level 2 (significant observable input) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge funds | Level 3 (significant unobservable inputs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $227 | $258 |
Employee_Benefits_Pension_Plan1
Employee Benefits - Pension Plan Asset Level 3 Roll Forward (Details) (Pension, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Change in Plan Assets | ||
At January 1 | $618 | $178 |
Return on plan assets | 96 | -15 |
Plan assets at December 31 | 642 | 618 |
Level 3 (significant unobservable inputs) | ||
Change in Plan Assets | ||
At January 1 | 258 | |
Return on plan assets | 16 | |
Purchases and sales | -47 | |
Transfers in and/or out of Level 3 | 0 | |
Plan assets at December 31 | $227 |
Employee_Benefits_Asset_Alloca
Employee Benefits - Asset Allocation Percentages (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation percentages | 100.00% | 100.00% |
Pension | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation percentages | 7.70% | 3.40% |
Pension | Fixed income investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation percentages | 42.50% | 35.90% |
Pension | Equity investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation percentages | 14.40% | 18.90% |
Pension | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation percentages | 35.40% | 41.80% |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Details) (USD $) | 12 Months Ended | 3 Months Ended | 8 Months Ended | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Savings plan expenses | $11,000,000 | $12,000,000 | $10,000,000 | |||||
Level 3 (significant unobservable inputs) | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Unfunded commitments to investments | 0 | |||||||
Pension | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Increase to pension obligation | 38,000,000 | |||||||
Curtailment gain | 2,000,000 | |||||||
Settlement (gains) losses | 1,000,000 | 2,000,000 | 4,000,000 | |||||
Accumulated benefit obligation | 705,000,000 | 643,000,000 | 705,000,000 | 643,000,000 | ||||
Plan contributions | 9,000,000 | 5,000,000 | ||||||
Amounts amortized from AOCI in next fiscal year | 5,000,000 | |||||||
Cash contributions to qualified pension plans in next fiscal year | 4,000,000 | |||||||
Expected return on plan assets (as a percent) | 6.47% | 6.47% | 7.50% | |||||
Employee benefit liability | 705,000,000 | 645,000,000 | 256,000,000 | 705,000,000 | 645,000,000 | |||
Pension | Hedge funds | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of single hedge fund investments in total pension assets | 0 | 0 | ||||||
Pension | Hedge funds | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Term of investments for which entity has redemption rights | 3 years | |||||||
Percentage of investment in single hedge fund as percentage of total plan assets | 3.00% | 3.00% | ||||||
Pension | Equity investments | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of index funds within equity funds | 2 | 2 | ||||||
Number of domestic funds within equity funds | 1 | 1 | ||||||
Number of international funds within equity funds | 1 | 1 | ||||||
Other Post-Employment Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Credit to expense related to plan amendments | 13,000,000 | 13,000,000 | ||||||
Settlement (gains) losses | -13,000,000 | 0 | 0 | |||||
Expected return on plan assets (as a percent) | 0.00% | 0.00% | 0.00% | |||||
Employee benefit liability | 0 | 15,000,000 | 0 | 0 | 15,000,000 | |||
Other Post-Employment Benefits | General and Administrative Expense | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Credit to expense related to plan amendments | 13,000,000 | |||||||
Qualified Pension Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Plan contributions | 7,000,000 | 4,000,000 | ||||||
Non Qualified Pension Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Plan contributions | 2,000,000 | 1,000,000 | ||||||
SuperMedia Pension Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Actual return on plan assets (as a percent) | 22.50% | -8.00% | ||||||
SuperMedia Pension Plan | Expected For 2015 | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected return on plan assets (as a percent) | 6.00% | |||||||
SuperMedia Pension Plan | Hedge funds | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Minimum target plan asset allocation | 45.00% | |||||||
Maximum target plan asset allocation | 55.00% | |||||||
SuperMedia Pension Plan | Other fixed income | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Minimum target plan asset allocation | 40.00% | |||||||
Maximum target plan asset allocation | 55.00% | |||||||
SuperMedia Pension Plan | Cash and cash equivalents | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Minimum target plan asset allocation | 0.00% | |||||||
Maximum target plan asset allocation | 15.00% | |||||||
Long-Term Disability Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Credit to expense related to plan amendments | 29,000,000 | |||||||
Employee benefit liability | 19,000,000 | 19,000,000 | ||||||
Long-Term Disability Plan | General and Administrative Expense | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Credit to expense related to plan amendments | $29,000,000 | $29,000,000 | ||||||
Dex One Retirement Plan and Dex Media Pension Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected return on plan assets (as a percent) | 7.50% | 7.50% | ||||||
Actual return on plan assets (as a percent) | 6.90% | 17.20% | ||||||
Dex One Retirement Plan and Dex Media Pension Plan | Expected For 2015 | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected return on plan assets (as a percent) | 7.00% | |||||||
Dex One Retirement Plan and Dex Media Pension Plan | Equity investments | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target plan asset allocations | 50.00% | |||||||
Dex One Retirement Plan and Dex Media Pension Plan | Other fixed income | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target plan asset allocations | 50.00% |
Long_term_incentive_compensati2
Long term incentive compensation (Details) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Oct. 14, 2014 | Jan. 02, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in dollars per share) | $10.25 | $8.42 | ||||
Granted (in shares) | 521,249 | |||||
Stock-based compensation expense recognized | $4 | $4 | $5 | |||
Unrecognized compensation expense related to the unvested portion of stock awards | 4 | |||||
Deferred compensation expense | 5 | 7 | ||||
Weighted average period for recognition of unrecognized compensation expense | 2 years 4 months 1 day | |||||
Outstanding (in shares) | 213,246 | 356,138 | ||||
Invested Capital, Period to Determine Average Trading Prices | 20 days | |||||
Invested Capital | 2,290 | |||||
Dex Media, Inc. | Dex One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense recognized | 2 | |||||
President and Chief Executive Offer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in dollars per share) | $7.54 | |||||
Granted (in shares) | 271,000 | |||||
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 | |||||
Employee 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 | |||||
Vesting period | 4 years | |||||
Term of awards from the date of grant | 10 years | |||||
Performance Shares | ||||||
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 | |||||
Stock-based compensation expense recognized | 1 | |||||
Weighted average period for recognition of unrecognized compensation expense | 3 years | |||||
Bonus pool as a percentage of value created | 7.00% | |||||
Outstanding (in shares) | 645,000 | |||||
Unamortized compensation expense | $11 |
Long_term_incentive_compensati3
Long term incentive compensation - Restricted Stock Awards (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Non-Vested Restricted Stock: | |
Outstanding (in shares) | 356,138 |
Granted (in shares) | 20,360 |
Vested (in shares) | -157,292 |
Forfeitures (in shares) | -5,960 |
Outstanding (in shares) | 213,246 |
Restricted Stock | |
Weighted Average Grant Date Fair Value Per Award: | |
Outstanding restricted stock (in dollars per share) | 10.28 |
Granted (in dollars per share) | 8.29 |
Vested (in dollars per share) | 10.37 |
Forfeitures (in dollars per share) | 10.61 |
Outstanding restricted stock (in dollars per share) | 10.01 |
Long_term_incentive_compensati4
Long term incentive compensation - Assumptions Used to Determine Fair Value (Details) (Stock Option, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value ($ per share) | $4.49 | $5.63 |
Dividend yield | 0.00% | 0.00% |
Volatility | 55.67% | 55.95% |
Risk-free interest rate | 1.82% | 2.23% |
Expected life (in years) | 6 years 6 months 7 days | 6 years 3 months |
Long_term_incentive_compensati5
Long term incentive compensation - Stock Options (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jan. 02, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Number of Stock Option Awards | |||
Outstanding stock option awards (in shares) | 442,133 | 442,133 | |
Granted (in shares) | 521,249 | ||
Exercises (in shares) | -1,248 | ||
Forfeitures/expirations (in shares) | -52,335 | ||
Outstanding stock option awards (in shares) | 909,799 | 442,133 | |
Weighted Average Exercise Price | |||
Outstanding Stock Option Awards (in dollars per share) | $10.15 | $10.15 | |
Granted (in dollars per share) | $10.25 | $8.42 | |
Exercises (in dollars per share) | $6.30 | ||
Forfeitures/expirations (in dollars per share) | $10.07 | ||
Outstanding Stock Option Awards (in dollars per share) | $9.17 | $10.15 | |
Weighted Average Remaining Contractual Term | |||
Outstanding stock options awards | 9 years 3 months 22 days | 9 years 7 months 21 days | |
Granted | 10 years | ||
Exercises | 7 years 3 months | ||
Forfeitures/expirations | 8 years 7 months 13 days | ||
Outstanding stock options awards | 9 years 3 months 22 days | 9 years 7 months 21 days | |
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value | $408,757 | $5,422 |
Long_term_incentive_compensati6
Long term incentive compensation - Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation expense recognized | $4 | $4 | $5 |
Long_term_incentive_compensati7
Long term incentive compensation - Value Creation Program (Details) (Performance Shares, USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Oct. 14, 2014 | Dec. 31, 2014 | Oct. 14, 2014 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value Creation Program fair value | $12 | $12 | $12 |
Volatility | 11.93% | 11.70% | |
Expected life (in years) | 3 years 2 months 16 days | 3 years | |
Dividend yield | 0.00% | 0.00% | |
Risk-free interest rate | 0.87% | 1.10% |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Provision (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Federal | $3 | ($22) | ($5) |
State and local | -1 | -3 | 5 |
Total current provision (benefit) | 2 | -25 | 0 |
Deferred | |||
Federal | 14 | -319 | 4 |
State and local | -3 | -32 | 2 |
Total deferred provision (benefit) | 11 | -351 | 6 |
Total provision (benefit) for income taxes | $13 | ($376) | $6 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Statutory Federal Tax Rate to Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes, net of federal tax benefit | 2.80% | 2.20% | 4.30% |
Non-deductible interest expenses | -1.40% | -0.40% | 11.80% |
Non-deductible goodwill impairment charge | 0.00% | -2.20% | 0.00% |
Tax attribution reduction | 0.00% | -0.10% | -4.30% |
Subsidiary basis adjustment | 0.80% | 1.30% | 19.10% |
Change in valuation allowance | -34.90% | -5.90% | -63.80% |
Change in unrecognized tax benefits | 2.20% | 2.40% | 0.00% |
Change in state tax laws and deferred items | -7.30% | -0.20% | 4.30% |
Other, net | -0.80% | -0.60% | 6.40% |
Effective tax rate | -3.60% | 31.50% | 12.80% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets | ||
Deferred revenue | $0 | $4 |
Allowance for doubtful accounts | 6 | 7 |
Deferred and other compensation | 17 | 13 |
Capital investments | 6 | 6 |
Debt, capitalized fees, and other interest | 104 | 148 |
Pension and other post-employment benefits | 31 | 34 |
Restructuring reserve | 15 | 0 |
Net operating loss and credit carryforwards | 332 | 341 |
Other, net | 16 | 21 |
Total deferred tax assets | 527 | 574 |
Valuation allowance | -353 | -208 |
Net deferred tax assets | 174 | 366 |
Deferred tax liabilities | ||
Fixed assets and capitalized software | -13 | -33 |
Goodwill and intangible assets | -137 | -285 |
Deferred directory costs | -30 | -35 |
Investment in subsidiaries | -8 | -10 |
Gain on debt retirement | -16 | -22 |
Total deferred tax liabilities | -204 | -385 |
Net deferred tax liability | ($30) | ($19) |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $19 | $6 |
Gross additions for tax positions related to SuperMedia acquisition | 0 | 45 |
Gross additions for tax positions related to the current year | 0 | 1 |
Gross additions for tax positions related to prior years | 3 | 0 |
Gross reductions for tax positions related to the lapse of applicable statute of limitations | -11 | -33 |
Settlements | 0 | 0 |
Balance at end of period | $11 | $19 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance [Line Items] | |||
Valuation allowance on deferred tax assets | $353 | $208 | |
Increase (decrease) in unrecognized tax benefits | -8 | 13 | |
Change in unrecognized tax benefits due to expiration of the statute of limitations | -11 | -33 | |
Gross additions for tax positions related to prior years | 3 | 0 | |
Gross additions for tax positions related to the current year | 46 | ||
Gross additions for tax positions related to SuperMedia acquisition | 0 | 45 | |
Unrecognized tax benefits that would impact the effective tax rate | 10 | 12 | |
Interest expense on unrecognized tax benefits | -1 | -3 | 1 |
Accrued interest on unrecognized tax benefits | 1 | 1 | |
Amount of decrease in unrecognized tax benefits reasonably possible in the next twelve months | 3 | ||
Movement in Valuation Allowances and Reserves | |||
Net charges to other balance sheet accounts | 0 | 8 | 0 |
Deferred Income Tax Asset Valuation Allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 208 | 133 | 157 |
Net additions charged to revenue and expense | 125 | 75 | -24 |
Net charges to other balance sheet accounts | 20 | 0 | 0 |
Balance at end of period | 353 | 208 | 133 |
Internal Revenue Service (IRS) | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | 732 | ||
State and Local Jurisdiction | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | $1,798 |
Contingencies_Details
Contingencies (Details) | 0 Months Ended | ||
Jun. 03, 2009 | Nov. 04, 2010 | Nov. 25, 2009 | |
defendant | claim | plaintiff | |
Corwin Case | |||
Loss Contingencies [Line Items] | |||
Number of company directors added as party defendants | 2 | ||
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 of dismissal was filed | 1 | ||
Number of remaining procedural ERISA claims | 2 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 |
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Operating revenue | $433 | $452 | $474 | $456 | $429 | $392 | $335 | $288 | $1,815 | $1,444 | $1,278 | |
Operating income (loss) | -41 | 25 | 5 | 7 | -576 | -147 | -146 | 19 | -4 | -850 | 103 | |
Net income (loss) | -145 | -59 | -85 | -82 | -556 | -135 | -69 | -59 | -371 | -819 | 41 | |
Comprehensive income (loss) | -205 | -54 | -83 | -80 | -536 | -139 | -76 | -58 | -422 | -809 | 25 | |
Basic and diluted earnings (loss) per common share (in dollars per share) | ($8.35) | ($3.41) | ($4.93) | ($4.74) | ($32.29) | ($7.85) | ($4.58) | ($5.84) | ($21.43) | ($54.89) | $4.09 | |
Impairment charge | 458 | 0 | 458 | 0 | ||||||||
Goodwill impairment | 74 | 0 | 74 | |||||||||
Impairment charge of intangible assets | 384 | 384 | 384 | |||||||||
Gains on early extinguishment of debt | 2 | 9 | 2 | 9 | 140 | |||||||
Super Media, Inc. | Dex Media, Inc. | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Reverse stock split ratio | 0.2 | |||||||||||
Employee Severance | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Expense | 43 | 43 | ||||||||||
Executive Officer | Employee Severance | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Expense | 10 | |||||||||||
Other Postretirement Benefit Plan | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Credit to expense related to plan amendments | 13 | 13 | ||||||||||
Long-Term Disability Plan | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Credit to expense related to plan amendments | 29 | |||||||||||
General and Administrative Expense | Other Postretirement Benefit Plan | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Credit to expense related to plan amendments | 13 | |||||||||||
General and Administrative Expense | Long-Term Disability Plan | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Credit to expense related to plan amendments | $29 | $29 |
Condensed_Parent_Company_State
Condensed Parent Company Statements of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Expenses | $1,819 | $2,294 | $1,175 | ||||||||
Operating Income (Loss) | -41 | 25 | 5 | 7 | -576 | -147 | -146 | 19 | -4 | -850 | 103 |
Interest expense, net | 356 | 316 | 196 | ||||||||
(Loss) Before Reorganization Items, Gains on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes | -360 | -1,166 | -93 | ||||||||
Gains on early extinguishment of debt | 2 | 9 | 2 | 9 | 140 | ||||||
Income (Loss) Before Provision (Benefit) for Income Taxes | -358 | -1,195 | 47 | ||||||||
Provision (benefit) for income taxes | 13 | -376 | 6 | ||||||||
Net Income (Loss) | -145 | -59 | -85 | -82 | -556 | -135 | -69 | -59 | -371 | -819 | 41 |
Other comprehensive income (loss) | -51 | 10 | -16 | ||||||||
Comprehensive Income (Loss) | -205 | -54 | -83 | -80 | -536 | -139 | -76 | -58 | -422 | -809 | 25 |
Parent Company | |||||||||||
Expenses | 24 | 22 | 13 | ||||||||
Partnership and equity (income) loss | 329 | 800 | -47 | ||||||||
Operating Income (Loss) | -353 | -822 | 34 | ||||||||
Interest expense, net | 34 | 32 | 34 | ||||||||
(Loss) Before Reorganization Items, Gains on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes | -387 | -854 | 0 | ||||||||
Gains on early extinguishment of debt | 0 | 0 | 71 | ||||||||
Income (Loss) Before Provision (Benefit) for Income Taxes | -387 | -854 | 71 | ||||||||
Provision (benefit) for income taxes | -16 | -35 | 30 | ||||||||
Net Income (Loss) | -371 | -819 | 41 | ||||||||
Other comprehensive income (loss) | -51 | 10 | -16 | ||||||||
Comprehensive Income (Loss) | ($422) | ($809) | $25 |
Condensed_Parent_Company_Balan
Condensed Parent Company Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current Assets | ||||
Cash and cash equivalents | $171 | $156 | $172 | $258 |
Total current assets | 497 | 609 | ||
Total Assets | 1,722 | 2,464 | ||
Current Liabilities | ||||
Accounts payable and accrued liabilities | 167 | 166 | ||
Accrued interest | 20 | 20 | ||
Total current liabilities | 404 | 466 | ||
Long-term debt | 2,272 | 2,521 | ||
Unrecognized tax benefits | 11 | 19 | ||
Total shareholders' (deficit) | -1,122 | -703 | 20 | -10 |
Total Liabilities and Shareholders' (Deficit) | 1,722 | 2,464 | ||
Parent Company | ||||
Current Assets | ||||
Cash and cash equivalents | 3 | 3 | 3 | 28 |
Accrued tax receivable | 34 | 17 | ||
Deferred tax assets | 3 | 1 | ||
Total current assets | 40 | 21 | ||
Deferred tax assets | 1 | 0 | ||
Total Assets | 41 | 21 | ||
Current Liabilities | ||||
Affiliates payable, net | 50 | 15 | ||
Accounts payable and accrued liabilities | 7 | 2 | ||
Accrued interest | 9 | 8 | ||
Total current liabilities | 66 | 25 | ||
Long-term debt | 252 | 236 | ||
Unrecognized tax benefits | 2 | 0 | ||
Unrecognized tax benefits | 843 | 463 | ||
Total shareholders' (deficit) | -1,122 | -703 | ||
Total Liabilities and Shareholders' (Deficit) | $41 | $21 |
Condensed_Parent_Company_State1
Condensed Parent Company Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | $388 | $360 | $349 |
Cash flow from investing activities | |||
Additions to fixed assets and capitalized software | -18 | -24 | -23 |
Net cash provided by (used in) investing activities | -5 | 130 | -23 |
Cash flow from financing activities | |||
Debt repayments | -367 | -505 | -401 |
Net cash (used in) financing activities | -368 | -506 | -412 |
Increase (decrease) in cash and cash equivalents | 15 | -16 | -86 |
Cash and cash equivalents, beginning of year | 156 | 172 | 258 |
Cash and cash equivalents, end of year | 171 | 156 | 172 |
Parent Company | |||
Cash flows from operating activities | 0 | 0 | 2 |
Cash flow from investing activities | |||
Additions to fixed assets and capitalized software | 0 | 0 | 0 |
Contributions to subsidiaries | 0 | 0 | 0 |
Intercompany loan | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flow from financing activities | |||
Debt repayments | 0 | 0 | -27 |
Net cash (used in) financing activities | 0 | 0 | -27 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | -25 |
Cash and cash equivalents, beginning of year | 3 | 3 | 28 |
Cash and cash equivalents, end of year | $3 | $3 | $3 |
Uncategorized_Items
Uncategorized Items | ||
[us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber] | 300,000 | 200,000 |