Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | DEX MEDIA, INC. | |
Entity Central Index Key | 1,556,739 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 17,566,247 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Operating Revenue | $ 387 | $ 474 | $ 793 | $ 930 |
Operating Expenses | ||||
Selling | 82 | 112 | 178 | 227 |
Cost of service (exclusive of depreciation and amortization) | 124 | 146 | 265 | 296 |
General and administrative | 36 | 50 | 73 | 73 |
Depreciation and amortization | 103 | 161 | 209 | 322 |
Total Operating Expenses | 345 | 469 | 725 | 918 |
Operating Income | 42 | 5 | 68 | 12 |
Interest expense, net | 87 | 90 | 172 | 180 |
(Loss) Before Gain on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes | (45) | (85) | (104) | (168) |
Gain on early extinguishment of debt | 1 | 0 | 1 | 0 |
(Loss) Before Provision (Benefit) for Income Taxes | (44) | (85) | (103) | (168) |
Provision (benefit) for income taxes | (2) | 0 | (2) | (1) |
Net (Loss) | (42) | (85) | (101) | (167) |
Other Comprehensive (Loss) | ||||
Adjustments for pension and other post-employment benefits, net of taxes | (1) | 2 | 2 | 4 |
Comprehensive (Loss) | $ (43) | $ (83) | $ (99) | $ (163) |
Basic and diluted (loss) per common share ($ per share) | $ (2.39) | $ (4.93) | $ (5.78) | $ (9.67) |
Basic and diluted weighted-average common shares outstanding (in shares) | 17.4 | 17.3 | 17.4 | 17.3 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 191 | $ 171 |
Accounts receivable, net of allowances of $27 and $30 | 131 | 151 |
Deferred directory costs | 136 | 161 |
Prepaid expenses and other | 18 | 14 |
Total current assets | 476 | 497 |
Fixed assets and capitalized software, net | 45 | 64 |
Goodwill | 315 | 315 |
Intangible assets, net | 608 | 794 |
Pension assets | 44 | 45 |
Other non-current assets | 6 | 7 |
Total Assets | 1,494 | 1,722 |
Current Liabilities | ||
Current maturities of long-term debt | 124 | 124 |
Accounts payable and accrued liabilities | 122 | 167 |
Accrued interest | 20 | 20 |
Deferred revenue | 76 | 93 |
Total current liabilities | 342 | 404 |
Long-term debt | 2,211 | 2,272 |
Employee benefit obligations | 118 | 127 |
Deferred tax liabilities | 28 | 30 |
Unrecognized tax benefits | 11 | 11 |
Other liabilities | 3 | 0 |
Shareholders' (Deficit) | ||
Common stock, par value $.001 per share, authorized – 300,000,000 shares; issued and outstanding – 17,566,247 shares at June 30, 2015 and 17,608,580 shares at December 31, 2014 | 0 | 0 |
Additional paid-in capital | 1,556 | 1,554 |
Retained (deficit) | (2,692) | (2,591) |
Accumulated other comprehensive (loss) | (83) | (85) |
Total shareholders' (deficit) | (1,219) | (1,122) |
Total Liabilities and Shareholders' (Deficit) | $ 1,494 | $ 1,722 |
Consolidated Balance Sheets (U4
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts (in $ millions) | $ 27 | $ 30 |
Shareholders' (Deficit) | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 17,566,247 | 17,608,580 |
Common stock, shares outstanding | 17,566,247 | 17,608,580 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net (loss) | $ (101) | $ (167) |
Reconciliation of net (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 209 | 322 |
Provision for deferred income taxes | (4) | (5) |
Provision for bad debts | 8 | 15 |
Non-cash interest expense | 53 | 45 |
Stock-based compensation expense | 1 | 2 |
Employee retiree benefits | 2 | (16) |
Gain on early extinguishment of debt | (1) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | 11 | 35 |
Deferred directory costs | 25 | 8 |
Other current assets | 0 | 5 |
Accounts payable and accrued liabilities | (66) | (41) |
Other items, net | (1) | (1) |
Net cash provided by operating activities | 136 | 202 |
Cash Flows from Investing Activities | ||
Additions to fixed assets and capitalized software | (9) | (9) |
Sales of fixed assets | 5 | 0 |
Net cash (used in) investing activities | (4) | (9) |
Cash Flows from Financing Activities | ||
Debt repayments | (107) | (202) |
Debt issuance costs and other financing items, net | (5) | (1) |
Net cash (used in) financing activities | (112) | (203) |
Increase (decrease) in cash and cash equivalents | 20 | (10) |
Cash and cash equivalents, beginning of year | 171 | 156 |
Cash and cash equivalents, end of period | 191 | 146 |
Supplemental Information | ||
Cash interest on debt | 122 | 138 |
Cash income taxes, net | $ 7 | $ 2 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation Business Dex Media, Inc. ("Dex Media", "we", "our", or the "Company") is a leading provider of local marketing solutions to more than 400,000 business clients across the United States. Our approximately 1,600 sales employees work directly with our clients to provide multiple local marketing solutions to help our clients connect with their customers. Our local marketing solutions are primarily sold under various “Dex” and “Super” brands, including print yellow page directories, online local search engine websites, mobile local search applications, and placement of our client’s information and advertisements on major search engine websites, with which we are affiliated. Our local marketing solutions also include website development, search engine optimization, market analysis, video development and promotion, reputation management, social media marketing, and tracking/reporting of customer leads. Our print yellow page directories are co-branded with various local telephone service providers; including Verizon Communications Inc. ("Verizon"), AT&T Inc., CenturyLink, Inc., FairPoint Communications, Inc., and Frontier Communications Corporation. We operate as the authorized publisher of print yellow page directories in some of the markets where they provide telephone service, and we hold multiple agreements governing our relationship with each company, including publishing agreements, branding agreements, and non-competition agreements. Basis of Presentation The Company prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States. Pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"), the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring items and accruals, necessary to fairly present the financial position, results of operations and cash flows of Dex Media and its subsidiaries. All inter-company transactions have been eliminated. The Company is managed as a single business segment. These unaudited interim financial statements, prepared in accordance with GAAP, do not contain all information and footnote disclosures normally included in audited annual financial statements and, as such, should be read in conjunction with the Dex Media Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the six months ended June 30, 2015 may not be indicative of results of operations for the 2015 fiscal year. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Notice of Deficiency from Nasdaq Our common stock is traded on The Nasdaq Stock Market LLC (“Nasdaq”). On June 30, 2015, the Company received a deficiency notice from Nasdaq stating that for the last 30 days the Company had not met the $15 million minimum market value of publicly held shares continued listing standard, as required by Nasdaq Listing Rule 5450(b)(3)(C). As provided in the Nasdaq rules, the Company has 180 calendar days, or until December 28, 2015 to regain compliance. In order to regain compliance, the Company’s market value of publicly held shares must be $15 million or more for a minimum of ten consecutive days at any time prior to December 28, 2015. If the Company fails to regain compliance during this period, the Company’s common stock will be subject to delisting by Nasdaq. The notification of noncompliance has no immediate effect on the listing of the Company’s common stock on The Global Select Market under the symbol “DXM”. Recent Accounting Pronouncements In June 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-10, "Technical Corrections and Improvements, " ("ASU 2015-10"). ASU 2015-10 covers a wide range of topics in the FASB Accounting Standards Codification (the "Codification"). The amendments in this update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost on most entities. Amendments that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including the adoption in an interim period. All other amendments in this update were effective June 2015. The Company does not anticipate that the adoption of this accounting guidance will have a material impact on its financial statements. In May 2015, FASB issued ASU No. 2015-08, "Business Combinations (Topic 805): Pushdown Accounting," ("ASU 2015-08"). ASU 2015-08 amends various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. ASU 2015-08 provides guidance for the measurement of certain transfers between entities under common control in the separate financial statements of each entity. The amendments in ASU 2015-08 became effective immediately. The adoption of this accounting guidance did not have a material impact on the Company's financial statements. In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)," ("ASU 2015-07"). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. ASU 2015-07 also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using the practical expedient. The amendments in ASU 2015-07 are effective for public business entities retrospectively for fiscal years beginning after December 15, 2015, and for interim periods within those years. Early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-04, "Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets," ("ASU 2015-04"). ASU 2015-04 provides the use of a practical expedient that permits the entity to measure defined benefit plans assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. Further, if a contribution or significant event occurs between the month-end date used to measure defined benefit plan asset and obligations and an entity's fiscal year-end, the entity should adjust the measurement of defined plan assets and obligations to reflect those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan asset and obligations for other events that occur between the month-end measurement and the entity's fiscal year-end that are not caused by the entity. The amendments in ASU 2015-04 are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years beginning after December 15, 2015, and for interim periods within those years. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. In January 2015, the FASB issued ASU 2015-01, "Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items," ("ASU 2015-01"). ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary, even if they ultimately would conclude it is not. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in ASU 2015-01 are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. A reporting entity also may apply the amendments retrospectively to all periods presented in the financial statements. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 will require management for each annual and interim reporting period to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures. In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period," ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures. |
Merger
Merger | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Merger | Merger Dex Media was created as a result of the merger between Dex One Corporation (“Dex One”) and SuperMedia Inc. (“SuperMedia”) on April 30, 2013. The merger was completed pursuant to the Amended and Restated Agreement and Plan of Merger dated as of December 5, 2012 (the "Merger Agreement"), which provided, among other things, that if either Dex One or SuperMedia were unable to obtain the requisite consents to the merger from their respective stockholders and to the contemplated amendments to their respective financing agreements from their senior secured lenders to consummate the transactions on an out-of-court basis, the merger could be effected through voluntary pre-packaged plans of reorganization ("the Prepackaged Plans") under Chapter 11 of Title 11 of the United States Code ("Chapter 11"). Because neither Dex One nor SuperMedia were able to obtain the requisite consents to complete the merger out of court, each of Dex One and SuperMedia and all of their domestic subsidiaries voluntarily filed pre-packaged bankruptcy petitions under Chapter 11 on March 18, 2013, in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). On April 29, 2013, the Bankruptcy Court entered separate orders confirming each of the Prepackaged Plans. On April 30, 2013, Dex One and SuperMedia consummated the merger and other transactions contemplated by the Merger Agreement and emerged from Chapter 11 protection. Effective with the emergence from bankruptcy and the consummation of the merger, each share of Dex One common stock was converted into 0.2 shares of common stock of Dex Media and each share of SuperMedia common stock was converted into 0.4386 shares of common stock of Dex Media. We accounted for the business combination using the acquisition method of accounting in accordance with ASC 805, "Business Combinations" , with Dex One identified as the acquiring entity for accounting purposes. Dex One was considered the acquiring entity for accounting purposes based on certain criteria including, but not limited to, the fact that (1) upon consummation of the merger, Dex One shareholders held approximately 60% of the common stock of Dex Media as compared to approximately 40% held by SuperMedia shareholders and (2) Dex One's chairman of the board of directors continued as the chairman of the board of directors of Dex Media. Prior to the merger with Dex One, SuperMedia had $386 million of deferred revenue and $122 million of deferred directory costs on its consolidated balance sheet. As a result of acquisition accounting, the fair value of deferred revenue at April 30, 2013 for SuperMedia was determined to have no value, equating to $386 million of revenue that would have been amortized by SuperMedia from May 2013 through April 2014, that was not recognized by Dex Media. SuperMedia had minimal, if any, remaining performance obligations related to its clients who previously contracted for advertising, thus, no value was assigned to its deferred revenue. The fair value of deferred directory costs as of April 30, 2013 for SuperMedia was determined to have no value, other than paper held in inventory and prepayments associated with future publications. These costs did not have any future value since SuperMedia has already incurred the costs to produce the clients' advertising and did not anticipate to incur any significant additional costs associated with those published directories. This equated to $93 million of cost that would have been amortized by SuperMedia from May 2013 through April 2014, that was not recognized by Dex Media. As a result, our financial results for the six months ended June 30, 2014 excluded revenue of approximately $30 million and net income of approximately $14 million , which would have been recognized absent the effect of acquisition accounting. The exclusion of these results from the consolidated statements of comprehensive (loss) of Dex Media, did not impact our cash flows. Associated with the integration of the two companies, we incurred merger integration costs. Merger integration costs represent costs incurred to achieve synergies related to the merger of Dex One and SuperMedia. These costs include severance, professional fees and contract services. As part of the merger, there were a large number of processes, policies, procedures, operations, technologies and systems to be integrated. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive (loss). During the three and six months ended June 30, 2014 the Company incurred $8 million and $26 million , respectively, of merger integration costs, of which $3 million and $13 million , respectively, represents severance costs. The Company will not incur any merger integration costs in 2015. |
Business Transformation Costs
Business Transformation Costs | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Transformation Costs | Business Transformation Costs On December 11, 2014, the Company announced an organizational restructuring program, the costs of which the Company has identified as business transformation costs. The program is designed to reorganize and strategically refocus the Company. The program includes the launch of virtual sales offices, enabling the Company to eliminate field sales offices, the automation of the sales process, integration of systems to eliminate duplicative systems and workforce reductions. The Company expects charges associated with the program to range from $70 million to $100 million . Inception to date, the Company has incurred costs of $67 million associated with the program. During the three and six months ended June 30, 2015 , the Company recorded $15 million and $24 million of business transformation costs, respectively. The Company did not record any business transformation costs during the six months ended June 30, 2014 . Business transformation costs are recorded as general and administrative expense in our consolidated statements of comprehensive (loss). The following tables set forth the components of the Company's business transformation costs for the three and six months ended June 30, 2015 . Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (in millions) Severance costs $ 2 $ 2 Lease related costs 7 12 System consolidation costs 5 8 Other costs 1 2 Total business transformation costs $ 15 $ 24 During the three months ended June 30, 2015 , the Company sold land and a building for $5 million , resulting in a loss of less than $1 million which is included in other costs in the table above. The following table reflects the liability associated with the program as of June 30, 2015. Beginning Balance Ending Balance January 1, 2015 Expense Payments June 30, 2015 (in millions) Severance costs $ 38 $ 2 $ (26 ) $ 14 Lease related costs — 12 (3 ) 9 System consolidation costs — 8 (8 ) — Other costs — 2 (2 ) — Total business transformation costs $ 38 $ 24 $ (39 ) $ 23 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The following table sets forth the calculation of the Company’s basic and diluted (loss) per share for the three and six months ended June 30, 2015 and 2014 . Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in millions, except per share amounts) Net (loss) $ (42 ) $ (85 ) $ (101 ) $ (167 ) Basic and diluted weighted-average common shares outstanding 17.4 17.3 17.4 17.3 Basic and diluted (loss) per common share $ (2.39 ) $ (4.93 ) $ (5.78 ) $ (9.67 ) Basic earnings (loss) per share are computed by dividing net income (loss) by the number of weighted-average common shares outstanding during the reported period. Diluted earnings per share are calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. Due to the Company's reported net (loss) for the three and six months ended June 30, 2015 and 2014 , the effect of all stock-based awards was anti-dilutive and therefore not included in the calculation of earnings per share. For both the three and six months ended June 30, 2015 and 2014, there were 0.6 million shares and 0.4 million shares of the Company’s stock-based awards, respectively, that had exercise prices that exceeded the average market price of the Company’s common stock. These shares were not included in our weighted average diluted shares outstanding. Certain employees were granted restricted stock awards, which entitles those participants to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of the Company’s common stock. As such, these unvested restricted stock awards meet the definition of a participating security. Participating securities are defined as unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) and are included in the computation of earnings per share pursuant to the two-class method. At June 30, 2015 and June 30, 2014 there were 0.1 million and 0.3 million of such participating securities outstanding, respectively. Under the two-class method, all earnings, whether distributed or undistributed, are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. However, the net (loss) from continuing operations for the three and six months ended June 30, 2015 and 2014 was not allocated to these participating securities, as these awards do not share in any loss generated by the Company. |
Additional Financial Informatio
Additional Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Additional Financial Information | Additional Financial Information Consolidated Statements of Comprehensive (Loss) General and administrative expense The Company’s general and administrative expense for the six months ended June 30, 2014 includes certain one-time credits to expense. The Company recorded a $13 million credit to expense associated with plan amendments to its other post-employment benefits, which eliminated the Company’s obligation to provide a subsidy for retiree health care. The Company also recorded a $10 million credit to expense associated with the settlement of a liability under a publishing agreement. Additionally, the Company recorded $5 million in credits to expense associated with the reduction of certain operating tax liabilities. Depreciation and amortization The following tables set forth the components of the Company's depreciation and amortization expense for the three and six months ended June 30, 2015 and 2014 . Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in millions) Amortization of intangible assets $ 93 $ 146 $ 186 $ 293 Amortization of capitalized software 6 10 13 20 Depreciation of fixed assets 4 5 10 9 Total depreciation and amortization $ 103 $ 161 $ 209 $ 322 Interest expense, net The Company recorded interest expense, net of $ 87 million and $172 million for the three and six months ended June 30, 2015 , respectively, compared to $ 90 million and $180 million for the three and six months ended June 30, 2014 , respectively. Interest expense, net consists primarily of interest expense associated with our debt obligations, non-cash interest expense associated with the amortization of debt fair value adjustments, amortization of debt discounts, non-cash interest expense associated with payment-in-kind interest related to our senior subordinated notes, and non-cash interest expense associated with the amortization of deferred financing cost, offset by interest income. Non-cash interest expense was $28 million and $53 million for the three and six months ended June 30, 2015 , respectively, compared to $23 million and $45 million for three and six months ended June 30, 2014 , respectively. Other comprehensive (loss) The following tables set forth the components of the Company's comprehensive (loss) adjustments for pension and other post-employment benefits for the three and six months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 2014 Gross Taxes Net Gross Taxes Net (in millions) Net (loss) $ (42 ) $ (85 ) Adjustments for pension and other post-employment benefits: Accumulated actuarial gains (losses) of benefit plans $ (3 ) $ 1 (2 ) $ 3 $ (1 ) 2 Reclassifications included in net (loss): Amortization of actuarial losses 2 (1 ) 1 — — — Settlement losses 1 (1 ) — 1 (1 ) — Total reclassifications included in net (loss) 3 (2 ) 1 1 (1 ) — Adjustments for pension and other post-employment benefits $ — $ (1 ) (1 ) $ 4 $ (2 ) 2 Total comprehensive (loss) $ (43 ) $ (83 ) Six Months Ended June 30, 2015 2014 Gross Taxes Net Gross Taxes Net (in millions) Net (loss) $ (101 ) $ (167 ) Adjustments for pension and other post-employment benefits: Accumulated actuarial gains (losses) of benefit plans $ (1 ) $ — (1 ) $ 19 $ (7 ) 12 Reclassifications included in net (loss): Amortization of actuarial losses 3 (1 ) 2 — — — Settlement losses 2 (1 ) 1 1 (1 ) — Plan amendments — — — (13 ) 5 (8 ) Total reclassifications included in net (loss) 5 (2 ) 3 (12 ) 4 (8 ) Adjustments for pension and other post-employment benefits $ 4 $ (2 ) 2 $ 7 $ (3 ) 4 Total comprehensive (loss) $ (99 ) $ (163 ) The following table sets forth the balance of the Company's accumulated other comprehensive (loss). All balances in accumulated other comprehensive (loss) are related to pension benefits. Gross Taxes Net (in millions) Accumulated other comprehensive (loss) - December 31, 2014 $ (82 ) $ (3 ) $ (85 ) Adjustments for pension benefits 4 (2 ) 2 Accumulated other comprehensive (loss) - June 30, 2015 $ (78 ) $ (5 ) $ (83 ) Balance Sheet Accounts payable and accrued liabilities The following table sets forth additional financial information related to the Company's accounts payable and accrued liabilities at June 30, 2015 and December 31, 2014. At June 30, 2015 At December 31, 2014 (in millions) Accounts payable $ 13 $ 14 Accrued salaries and wages 30 48 Accrued severance 14 39 Accrued taxes 16 16 Accrued expenses 25 31 Customer refunds, advance payments and other 24 19 Total accounts payable and accrued liabilities $ 122 $ 167 Fair Value of Financial Instruments The Company's financial assets or liabilities required to be measured at fair value on a recurring basis include cash and cash equivalents held in money market funds of $38 million and $41 million as of June 30, 2015 and December 31, 2014 , respectively. These money market funds have been recorded at fair value using Level 2 inputs. The Company also had $8 million held in certificates of deposit and mutual funds as of June 30, 2015 and December 31, 2014 , that serve as collateral against letters of credit held primarily with our insurance carriers. These certificates of deposit and mutual funds are classified as prepaid expenses and other on the Company's consolidated balance sheets and are valued using Level 2 inputs. The fair value of accounts receivable and accounts payable approximate their carrying amounts due to their short-term nature. The fair values of debt instruments are determined based on the observable market data of a private exchange. The following table sets forth the carrying amount and fair value using Level 2 inputs of the Company’s debt obligations at June 30, 2015 and December 31, 2014 . At June 30, 2015 At December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Senior secured credit facilities SuperMedia Inc. $ 843 $ 633 $ 841 $ 829 R.H. Donnelly Inc. 596 316 612 435 Dex Media East, Inc. 332 233 354 281 Dex Media West, Inc. 303 213 337 293 Senior subordinated notes 261 14 252 112 Total debt obligations $ 2,335 $ 1,409 $ 2,396 $ 1,950 The par value of SuperMedia's debt obligation at June 30, 2015 was $1,004 million . The par value of Dex Media West, Inc. ("DMW") debt obligations at June 30, 2015 was $307 million . For additional information on our outstanding debt obligations, see Note 7 - Long-Term Debt. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has goodwill of $315 million and definite-lived intangible assets of $608 million at June 30, 2015. The Company has four reporting units, which represent the lowest level of identifiable cash flows; R.H. Donnelley Inc. ("RHD"), Dex Media East, Inc. ("DME"), Dex Media West, Inc. ("DMW"), and SuperMedia. All four reporting units have intangible assets; however, only the SuperMedia reporting unit has goodwill. The Company performs its annual impairment test of goodwill as of October 1, unless events and circumstances in interim periods indicate that impairment may exist. Additionally, the Company reviews its definite-lived intangible assets whenever events or circumstances indicate that their carrying value may not be recoverable. As a result of declining security prices associated with the Company’s equity, its senior secured credit facilities and senior subordinated notes, and a revised forecast, during the second quarter of 2015, the Company determined there were events and circumstances indicating the possibility of impairment of its goodwill and/or its intangible assets, and therefore performed an interim goodwill and intangible assets impairment analysis. The fair value estimates used in the goodwill and intangible assets impairment analysis require numerous assumptions and significant judgment. Accordingly, the Company’s fair value estimates for purposes of assessing goodwill and intangible assets for impairment are considered Level 3 fair value measurements. The fair value estimates are based on current assumptions of future revenue, operating margins, business plans and the competitive environment of our business, among other things. Our current estimates assume revenue will continue to decline into the foreseeable future. Due to the number and sensitivities of our estimates and assumptions, there can be no assurances that our estimates and assumptions will prove to be accurate predictions of the future. If our estimates and assumptions are not correct, we may be required to record goodwill and intangible assets impairment charges in the future. 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 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 as of June 30, 2015. 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 14.8% . 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, various market multiples ratios were considered based on 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. A market multiple was then selected based on consideration of risk, growth and profitability differences between the Company and the guideline companies. The selected market multiple was then multiplied by the Company’s 2015 forecasted earnings to arrive at an estimate of fair value for the Company. Intangible Assets The Company has definite-lived intangible assets of $608 million as of June 30, 2015. 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. During the second quarter of 2015, the Company evaluated its definite-lived assets for potential impairment and determined they were not impaired as of June 30, 2015. 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 over the remaining useful life of the primary asset of the asset group. 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 determined that its intangible assets were not impaired as of June 30, 2015. The following table sets forth the details of the Company's intangible assets at June 30, 2015 and December 31, 2014. At June 30, 2015 At December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Directory services agreements $ 666 $ 377 $ 289 $ 666 $ 307 $ 359 Client relationships 924 736 188 924 649 275 Trademarks and domain names 222 114 108 222 91 131 Patented technologies 42 21 21 42 16 26 Advertising commitment 11 9 2 11 8 3 Total intangible assets $ 1,865 $ 1,257 $ 608 $ 1,865 $ 1,071 $ 794 Amortization expense for intangible assets was $93 million and $186 million for the three and six months ended June 30, 2015 , respectively, compared to $146 million and $293 million for the three and six months ended June 30, 2014 , respectively. The annual amortization expense for intangible assets is estimated to be $373 million in 2015, $237 million in 2016, $103 million in 2017 and $81 million in 2018. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table sets forth the Company's outstanding debt obligations on the consolidated balance sheets at June 30, 2015 and December 31, 2014 . Interest Rates Carrying Value Maturity At June 30, 2015 At December 31, 2014 At June 30, At December 31, (in millions) Senior secured credit facilities SuperMedia Inc. December 31, 2016 11.6 % 11.6 % $ 843 $ 841 R.H. Donnelly Inc. December 31, 2016 9.75 % 9.75 % 596 612 Dex Media East, Inc. December 31, 2016 6.0 % 6.0 % 332 354 Dex Media West, Inc. December 31, 2016 8.0 % 8.0 % 303 337 Senior subordinated notes January 29, 2017 14.0 % 14.0 % 261 252 Total debt 2,335 2,396 Less: current maturities of long-term debt 124 124 Long-term debt $ 2,211 $ 2,272 As a result of the merger and adoption of acquisition accounting on April 30, 2013, SuperMedia's debt obligation was recorded at its fair value of $1,082 million , from its face value of $1,442 million , resulting in a discount of $360 million . This debt fair value adjustment is being amortized as an increase to interest expense over the remaining term of the SuperMedia debt obligation using the effective interest method and does not impact future interest or principal payments. Amortization of the SuperMedia debt fair value adjustment of $22 million and $42 million was included in interest expense during the three and six months ended June 30, 2015 , respectively, compared to $19 million and $36 million for the three and six months ended June 30, 2014 , respectively. The unamortized portion of the SuperMedia discount as of June 30, 2015 was $161 million . The par value of SuperMedia's debt obligation at June 30, 2015 was $1,004 million . Effective March 10, 2015, the Company obtained an amendment to the DMW senior secured credit facility to permit the exclusion of one-time, nonrecurring cash expenditures associated with our business transformation program from the definition of earnings before interest, taxes, depreciation and amortization ("EBITDA") that is used for the leverage ratio covenant measure. An amendment fee of $5 million was paid and recorded as a discount on the DMW senior secured credit facility. The debt discount is being amortized as an increase to interest expense over the remaining term of the DMW debt obligation using the effective interest method and does not impact future interest or principal payments. Amortization of the DMW discount of $1 million was included in interest expense during the three and six months ended June 30, 2015 . The unamortized portion of the DMW debt discount at June 30, 2015 was $4 million . The par value of DMW's debt obligations at June 30, 2015 was $307 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 June 30, 2015 , the Company has deferred debt issuance costs of $3 million on its consolidated balance sheet. These costs are amortized to interest expense over the remaining term of the related senior secured credit facilities using the effective interest method. Senior Secured Credit Facilities In connection with the consummation of the Prepackaged Plans and the merger between Dex One and SuperMedia on April 30, 2013, Dex Media entered into an amended and restated loan agreement for SuperMedia and three amended and restated credit agreements for each of DME, DMW and RHD (collectively, the "senior secured credit facilities"), with named financial institutions and JPMorgan Chase Bank, N.A. as administrative agent and collateral agent under the SuperMedia, DME and DMW senior secured credit facilities, and Deutsche Bank Trust Company Americas as administrative agent and collateral agent under the RHD senior secured credit facility. SuperMedia Senior Secured Credit Facility The SuperMedia senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing, at SuperMedia's option, at either: • With respect to base rate loans, the highest (subject to a floor of 4.00% ) of (1) the prime rate, (2) the federal funds effective rate plus 0.50% , or (3) adjusted London Inter-Bank Offered Rate ("LIBOR") plus 1.00% , plus an interest rate margin of 7.60% , or • With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00% , plus an interest rate margin of 8.60% . SuperMedia may elect interest periods of one , two or three months for Eurodollar borrowings. RHD Senior Secured Credit Facility The RHD senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at RHD's option, at either: • With respect to base rate loans, the highest (subject to a floor of 4.00% ) of (1) the prime rate, (2) the federal funds effective rate plus 0.50% , or (3) adjusted LIBOR plus 1.00% , plus an interest rate margin of 5.75% , or • With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00% , plus an interest rate margin of 6.75% . RHD may elect interest periods of one , two , three or six months for Eurodollar borrowings. DME Senior Secured Credit Facility The DME senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at DME's option, at either: • With respect to base rate loans, the highest (subject to a floor of 4.00% ) of (1) the prime rate, (2) the federal funds effective rate plus 0.50% , or (3) adjusted LIBOR plus 1.00% , plus an interest rate margin of 2.00% , or • With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00% , plus an interest rate margin of 3.00% . DME may elect interest periods of one , two , three or six months for Eurodollar borrowings. DMW Senior Secured Credit Facility The DMW senior secured credit facility interest is paid (1) with respect to any base rate loan, quarterly, and (2) with respect to any Eurodollar loan, on the last day of the interest period applicable to such borrowing (with certain exceptions for interest periods of more than three months), at DMW's option, at either: • With respect to base rate loans, the highest (subject to a floor of 4.00% ) of (1) the prime rate, (2) the federal funds effective rate, plus 0.50% , or (3) adjusted LIBOR, plus 1.00% , plus an interest rate margin of 4.00% , or • With respect to Eurodollar loans, the higher of (1) adjusted LIBOR or (2) 3.00% , plus an interest rate margin of 5.00% . DMW may elect interest periods of one , two , three or six months for Eurodollar borrowings. Senior Subordinated Notes The Company's senior subordinated notes require interest payments, payable semi-annually on March 31 and September 30 of each year. The senior subordinated notes accrue interest at 12% for cash interest payments and 14% for payments-in-kind ("PIK") interest. PIK interest represents additional indebtedness and increases the aggregate principal amount owed. The Company is required to make interest payments of 50% in cash and 50% in PIK interest until maturity of the senior secured credit facilities on December 31, 2016. For the semi-annual interest period ended March 31, 2015, the Company made interest payments of 50% in cash and 50% in PIK interest resulting in the issuance of an additional $9 million of senior subordinated notes. The Company is restricted from making open market repurchases of its senior subordinated notes until maturity of the senior secured credit facilities on December 31, 2016. The senior subordinated notes mature on January 29, 2017. Principal Payment Terms for Senior Secured Credit Facilities The Company has mandatory debt principal payments due after each quarter prior to the December 31, 2016 maturity date on its outstanding senior secured credit facilities. RHD, DME and DMW are required to pay scheduled amortization payments, plus additional prepayments at par equal to each borrower's respective Excess Cash Flow ("ECF"), multiplied by the applicable ECF Sweep Percentage as defined in the respective senior secured credit facility ( 60% for RHD, 50% for DMW, and 70% in 2013 and 2014 and 60% in 2015 and 2016 for DME). SuperMedia is required to make prepayments at par in an amount equal to 67.5% of any increase in Available Cash, as defined in its senior secured credit facility. In addition to these principal payments, the Company may on one or more occasions use another portion of ECF or the increase in Available Cash, as applicable, to repurchase debt at market prices ("Voluntary Prepayments") at a discount of face value, as defined in the respective senior secured credit facility ( 12.5% for SuperMedia, 20% for RHD, 30% for DMW, and 15% in 2013 and 2014 and 20% in 2015 and 2016 for DME) as determined following the end of each quarter. These Voluntary Prepayments must be made within 180 days after the date on which financial statements are delivered to the administrative agents. If a borrower does not make such Voluntary Prepayments within the 180 -day period, the Company must make a prepayment at par at the end of the quarter during which such 180 -day period expires. Any remaining portion of ECF or Available Cash, may be used at the Company's discretion, subject to certain restrictions specified in each senior secured credit facility agreement. 2015 and 2014 Principal Payments During the six months ended June 30, 2015 , the Company retired debt obligations of $108 million under its senior secured credit facilities utilizing cash of $107 million . The Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $100 million . Accelerated principal payments consist of prepayments of cash flow sweeps required under our senior secured credit facilities. In addition, on April 8, 2015 the Company repurchased and retired debt of $8 million utilizing cash of $7 million in accordance with the terms and conditions of its senior secured credit facilities. This transaction resulted in a gain of $1 million being recorded by the Company ( $1 million gain offset by less than $1 million in administrative fees and other adjustments). These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $9 million , on the Company's senior subordinated notes. During the six months ended June 30, 2014 , the Company retired debt obligations of $210 million under its senior secured credit facilities utilizing cash of $202 million . The Company made mandatory and accelerated principal payments on its senior secured credit facilities, at par, of $156 million . In addition, 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 (gain of $8 million offset by a $7 million write-off of SuperMedia's unamortized debt fair value adjustment and $1 million in administrative fees). These debt retirements were partially offset by additional indebtedness from payment-in-kind interest of $8 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 and mergers, liquidations and consolidations. For each senior secured credit facility, we are required to maintain compliance with a consolidated leverage ratio covenant and a consolidated interest coverage ratio covenant (the “Financial Covenants”). Each of the senior secured credit facilities also contain certain covenants that, subject to exceptions, limit or restrict Dex Media's incurrence of liens, indebtedness, ownership of assets, sales of assets, payment of dividends or distributions or modifications of the senior subordinated notes. The senior subordinated notes contain certain covenants that, subject to certain exceptions, among other things, limit or restrict the Company's (and, in certain cases, the Company's restricted subsidiaries) incurrence of indebtedness, making of certain restricted payments, incurrence of liens, entry into transactions with affiliates, conduct of its business, mergers, and consolidation or sale of all or substantially all of its property. As of June 30, 2015 , the Company was in compliance with all of the Financial Covenants associated with its senior secured credit facilities. Management also evaluated compliance with its Financial Covenants associated with its senior secured credit facilities for the remainder of 2015 and 2016, using management’s most recent financial forecast. Based on its evaluation, management believes there is a risk that the Company may not be in compliance with its Financial Covenants in the latter half of 2015 for two of its senior secured credit facilities, and in 2016 for a third senior secured credit facility. In addition, all of the senior secured credit facilities mature on December 31, 2016 and the senior subordinated notes mature on January 29, 2017. Because the Company may not be in compliance with its Financial Covenants and it 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, an amendment or refinancing of its debt, or if necessary, pursue additional debt or equity offerings, in advance of its debt becoming due. If we are unable to restructure our capital structure, we may consider filing voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. Accordingly, and as announced by the Company on July 10, 2015, the Company has retained financial advisors Moelis & Company LLC and Alvarez & Marsal North America, LLC and legal advisors Kirkland & Ellis LLP to advise management and the board of directors in their evaluation of the Company’s capital structure, among other things. Guarantees Each of the senior secured credit facilities are separate facilities secured by the assets of each respective entity. There are no cross guarantees or collateralization provision among the entities, subject to certain exceptions. The Shared Guarantee and Collateral agreement has certain guarantee and collaterization provisions supporting SuperMedia, RHD, DME and DMW. However, an event of default by one of the entities could trigger a call on the applicable guarantor. An event of default by a guarantor on a guarantee obligation could be an event of default under the applicable credit facility, and if demand is made under the guarantee and the creditor accelerates the indebtedness, failure to satisfy such claims in full would in turn trigger a default under all of the other credit facilities. A subordinated guarantee also provides that SuperMedia, RHD, DME and DMW guarantee the obligations of the other such entities, including SuperMedia, provided that no claim may be made on such guarantee until the senior secured debt of such entity is satisfied and discharged. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits Pension The Company has non-contributory defined benefit pension plans that provide pension benefits to certain of its employees. The accounting for pension benefits reflects the recognition of these benefit costs over the employee’s approximate service period based on the terms of the plan and the investment and funding decisions made. The determination of the benefit obligation and the net periodic pension cost requires management to make actuarial assumptions, including the discount rate and expected return on plan assets. For these assumptions, management consults with actuaries, monitors plan provisions and demographics, and reviews public market data and general economic information. Changes in these assumptions can have a significant impact on the projected benefit obligation, funding requirement and net periodic benefit cost. The pension plans include the Dex One Retirement Account, the Dex Media, Inc. Pension Plan, the SuperMedia Pension Plan for Management Employees and the SuperMedia Pension Plan for Collectively Bargained Employees. The Company also maintains two non-qualified pension plans for certain executives, the Dex One Pension Benefit Equalization Plan and the SuperMedia Excess Pension Plan. Pension assets related to the Company's qualified pension plans, which are held in master trusts and recorded on the Company's consolidated balance sheet, are valued in accordance with applicable accounting guidance on fair value measurements. No employees accrue future pension benefits under any of the pension plans. Net Periodic Cost (Income) The following table sets forth the net periodic cost (income) related to the Company's pension plans for the three and six months ended June 30, 2015 and 2014 . Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in millions) Interest cost $ 6 $ 7 $ 13 $ 14 Expected return on plan assets (8 ) (9 ) (16 ) (18 ) Amortization of net loss 2 — 3 — Settlement losses 1 1 2 1 Net periodic cost (income) $ 1 $ (1 ) $ 2 $ (3 ) For the three and six months ended June 30, 2015 , the Company recorded pension settlement losses of $1 million and $2 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. The Company made cash contributions to its qualified pension plans of $1 million and $2 million during the three and six months ended June 30, 2015 , respectively, compared to $2 million and $3 million in the three and six months ended June 30, 2014 , respectively. We expect to make total contributions of approximately $4 million to our qualified pension plans in 2015. Other Post-Employment Benefits During the six months ended June 30, 2014 , the Company recorded a $13 million credit to general and administrative expense in its consolidated statement of comprehensive (loss) associated with the settlement of plan amendments to its other post-employment benefits, which eliminated the Company’s obligation to provide a subsidy for retiree health care. Savings Plans Benefits The Company sponsors defined contribution savings plans to provide opportunities for eligible employees to save for retirement. The savings plans include the Dex Media, Inc. Savings Plan and the Dex One Restoration Plan. Substantially all of the Company's employees are eligible to participate in the plans. Participant contributions may be made on a pre-tax, after-tax, or Roth basis. Under the plans, a certain percentage of eligible employee contributions are matched with Company cash contributions that are allocated to the participants' current investment elections. The Company recognizes its contributions as savings plan expense based on its matching obligation to participating employees. The Company recorded total savings plan expense of $2 million and $6 million for the three and six months ended June 30, 2015 , respectively, compared to $3 million and $7 million in the three and six months ended June 30, 2014 , respectively. |
Long-Term Incentive Compensatio
Long-Term Incentive Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Compensation | Long-Term Incentive Compensation The Dex Media, Inc. Equity Incentive Plan, the Dex Media, Inc. Amended and Restated Long-Term Plan, the Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan and the Value Creation Program provide the opportunity to earn long term incentive compensation for non-management directors, designated eligible employees and other service providers, as applicable. Stock-Based Compensation The Dex Media, Inc. Equity Incentive Plan and the Dex Media, Inc. Amended and Restated Long-Term Incentive Plan ("Stock-Based Plans") provide for several forms of incentive awards to be granted to designated eligible employees, non-management directors, consultants and independent contractors providing services to the Company. The maximum number of shares of Dex Media common stock authorized for issuance under the Stock-Based Plans is 1,264,911 . During 2015 and 2014, the Company granted equity awards under the Stock-Based Plans. Restricted Stock The Stock-Based Plans provide for grants of restricted stock. These awards are classified as equity awards based on the criteria established by the applicable accounting rules for stock-based compensation. The fair value of the restricted stock awards was determined based on the price of Dex Media common stock on the date of grant. No restricted stock awards have been granted during 2015. During 2014 and 2013, certain employees were granted restricted stock awards that cliff vest on December 31, 2015. 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 six months ended June 30, 2015 . Restricted Stock Awards Weighted-Average Grant Date Fair Value Outstanding restricted stock awards at January 1, 2015 213,246 $ 10.01 Granted — $ — Vested (8,511 ) $ 10.55 Forfeitures (60,981 ) $ 10.02 Outstanding restricted stock awards at June 30, 2015 143,754 $ 10.00 Stock Options The Stock-Based Plans provide for grants of stock options. These awards are classified as equity awards based on the criteria established by the applicable accounting rules for stock-based compensation. During 2015, the Company granted stock option awards that vest on December 31, 2017 and have a 10 year term from the date of grant. In connection with Mr. Walsh’s appointment as President and Chief Executive Officer, on October 14, 2014, the Company granted Mr. Walsh stock options to purchase 271,000 shares of Dex Media common stock at an exercise price of $7.54 , which vest on December 31, 2017. The stock options were granted on a stand-alone basis, outside the Stock-Based Plans, as inducements to employment. During 2014 and 2013 certain employees were granted stock option awards that vest over four years in equal annual installments beginning on March 31 following the grant date and have a 10 year term from the date of grant. Other stock option awards granted in 2014 vest on December 31, 2017. The stock option awards granted on January 2, 2014 were priced at a premium, with an exercise price of $10.25 per share, while all other stock option awards had an exercise price equal to the market price of the Company's common stock on the date of grant. A stock option holder may pay the option exercise price in cash, by delivering unrestricted shares to the Company having a value at the time of exercise equal to the exercise price, by a cashless broker-assisted exercise, by a combination of these methods or by any other method approved by the Compensation and Benefits Committee of the Company's Board of Directors. Stock option awards may not be re-priced without the approval of the Company's shareholders. Any unvested portion of the stock option award will be forfeited upon the employee’s termination of employment with the Company for any reason before the date the option vests, except that the Compensation and Benefits Committee of the Company, at its sole option and election, may provide for the accelerated vesting of the stock option award. If the Company terminates the employee without cause or the employee resigns for good reason, then the employee is eligible to exercise the stock options that vested on or before the effective date of such termination or resignation. If the Company terminates the employee for cause, then the employee's stock options, whether or not vested, shall terminate immediately upon termination of employment. In the event the employee is terminated by the Company without cause or the employee resigns for good reason within six months prior to or two years following a change in control, any unvested portion of such employee's stock options shall become fully vested on the date of such termination or the date of the change in control, if such termination occurs within six months prior to such change in control. The fair value of each stock option award is estimated on the grant date using the Black-Scholes option pricing model. The model incorporates assumptions regarding inputs as follows: • Expected volatility is a blend of the implied volatility of Dex Media common stock as of the grant date, the historical volatility of Dex Media common stock over its history, and the historical volatility of Dex Media's peer companies; • Expected life is calculated based on the average life of the vesting term and the contractual life of each award; and • The risk-free interest rate is determined using the U.S. Treasury zero-coupon issue with a remaining term equal to the expected life of the option. Weighted average stock option fair values and assumptions for the six months ended June 30, 2015 are disclosed in the following table. Six Months Ended June 30, 2015 Weighted average fair value $ 4.50 Dividend yield — Volatility 55.35 % Risk-free interest rate 1.67 % Expected life (in years) 6.49 Changes in the Company's outstanding stock option awards were as follows for the six months ended June 30, 2015 . Number of Stock Option Awards Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding stock option awards at January 1, 2015 909,799 $ 9.17 9.31 $ 408,757 Granted 30,972 $ 8.25 10.00 — Exercises — $ — — — Forfeitures/expirations (307,761 ) $ 10.09 8.36 — Outstanding stock option awards at June 30, 2015 633,010 $ 8.67 9.06 $ — Stock-Based Compensation Expense The following table sets forth stock-based compensation expense recognized for the three and six months ended June 30, 2015 and 2014. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive (loss). Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in millions) Stock-based compensation expense $ — $ 1 $ 1 $ 2 As of June 30, 2015 , unrecognized stock-based compensation expense related to the unvested portion of the Company's restricted stock and stock option awards was approximately $2 million , and is expected to be recognized over a weighted-average period of approximately 2.1 years. Cash Long-Term Incentive Plan The Dex Media, Inc. 2013-2015 Cash Long-Term Incentive Plan provided to designated eligible employees the opportunity to earn an incentive cash payment based upon the achievement of the performance goals established for each of the measurement periods, with each of the respective fiscal years representing one measurement period. Following the introduction of the Value Creation Program in the fourth quarter of 2014, the Company did not grant any awards under this plan for the 2015 measurement period. These awards are classified as liability awards based on the criteria established by the applicable accounting rules. During the three and six months ended June 30, 2014 the Company recorded $1 million and $3 million , respectively, related to the Cash Long-Term Incentive Plan. Value Creation Programs Effective October 14, 2014, the Company adopted the Value Creation Program (“VCP”). The VCP enables the Company to retain and award designated executive employees by providing an opportunity to receive long-term compensation based on the net value creation in the Company. The bonus pool under the VCP represents 7% of the total “Value Creation” under the program and is comprised of 700,000 award units. To the extent not all of the units are awarded by the end of the performance period, the unallocated units will be allocated to the participating executives in proportion to the number of units awarded each executive. As of June 30, 2015 , participating executives had been granted 645,000 units. During 2015, the Company implemented the Value Creation Program Two ("VCP2"), to provide certain other employees with an opportunity to receive long-term compensation based on the same net value creation in the Company as defined in the VCP. As of June 30, 2015 , participating employees had been granted 33,590 units. Each unit under the VCP2 is equivalent in value to a unit under the VCP. Under the VCP2, additional units can be awarded in future periods. Value creation is measured as the net change over the performance period commencing October 14, 2014 and ending December 31, 2017 in the fair market value of the Company’s total invested capital, including equity securities, debt securities, and bank debt; plus cash dividends and cash payments (interest and principal) to debt, but reduced by any net value contributed from external sources, in each case as determined in the manner provided by the VCP. The VCP specifies that the fair market value of total invested capital at the beginning of the performance period (October 14, 2014) and the end of the performance period (December 31, 2017) is to be determined based on the average trading prices of equity securities, debt securities, and bank debt for the 20 days preceding each date. The fair market value of total invested capital at the beginning of the performance period was $2,290 million . The fair value of the awards was estimated using a Monte Carlo simulation. A Monte Carlo simulation is a type of option pricing model. The assumptions used in the Monte Carlo simulation, when estimating the fair value of the awards, are summarized below. The expected volatility is based on the historical volatility of the Company's total invested capital over the period since the merger of the Company's predecessor companies, Dex One and SuperMedia. At October 14, 2014 At June 30, 2015 ($ in millions) Value creation programs fair value $ 12 $ 2 Expected volatility 11.93 % 13.64 % Remaining contractual term 3.21 years 2.50 years Expected dividend yield 0.00 % 0.00 % Risk free rate 0.87 % 0.83 % The fair value of the awards will be estimated each reporting period. The Company recognizes the fair value of the awards as compensation expense ratably over the remaining performance period. During the three and six months ended June 30, 2015 , the Company recorded ($1) million and less than $1 million of compensation expense related to these awards, respectively. As of June 30, 2015 , the aggregate unamortized compensation expense was $1 million , which will be recognized over the remaining 2.50 years of the performance measurement period. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes have been provided for in the accompanying consolidated financial statements on the basis of an estimated annual effective tax rate, adjusted for the items considered discrete for the periods presented. The Company recorded income taxes based on an estimated annual effective tax rate, including the impact of discrete tax items, of approximately 1.3% and (0.1)% for 2015 and 2014, respectively. The 2015 estimated annual effective tax rate, inclusive of recorded discrete tax items, differs from the statutory rate primarily due to the increase in the recorded valuation allowances and permanently disallowed expenses (such as non-deductible interest), partially offset by state taxes. Excluding the impact of these items, our estimated annual effective tax rate, inclusive of discrete items, would approximate 35% for 2015. The estimated annual effective tax rate used for the six months ended June 30, 2014, inclusive of recorded discrete tax items, differs from the statutory rate primarily due to increases in the recorded valuation allowances. Our estimated annual effective tax rate for 2015 may be subject to change in future periods. During the remainder of 2015, we anticipate recording an additional benefit associated with the lapsing of uncertain tax positions due to expiration of the statute of limitations in certain jurisdictions. Considering this benefit, our anticipated annual effective tax rate, including the impact of discrete tax items, would be approximately 2.6% . The actual annual effective tax rate of (3.6)% for the year ended December 31, 2014 differed from the statutory rate primarily due to an increase in recorded valuation allowances, changes in estimates for state taxes, changes in state tax laws and apportionment, and the lapsing of various uncertain tax positions due to the expiration of the statute of limitations in federal and various state jurisdictions. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation The Company is subject to various lawsuits and other claims in the normal course of business. In addition, from time to time, the Company receives communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which the Company operates. The Company establishes reserves for the estimated losses on specific contingent liabilities, for regulatory and legal actions where the Company deems a loss to be probable and the amount of the loss can be reasonably estimated. In other instances, the Company is not able to make a reasonable estimate of liability because of the uncertainties related to the outcome or the amount or range of potential loss. The Company does not expect that the ultimate resolution of pending regulatory and legal matters in future periods, including the matters described below, will have a material adverse effect on its consolidated statements of comprehensive (loss). Murphy, Noe & Palmer v. Verizon Communications, et.al.; Civil Action No.3:09-cv-2262-G. - On November 25, 2009, three retirees, Philip A., Murphy, Jr., Sandra R. Noe, and Claire M. Palmer, 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. Plaintiffs allege that Verizon transferred them against their will from the Verizon pension plans to SuperMedia pension plans at or near the time of SuperMedia's spin-off from Verizon. They allege that both the Verizon and SuperMedia defendants failed to provide requested plan documents, which would entitle the Plaintiffs to statutory penalties under 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. Plaintiffs sought 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 dismissed all claims against the SuperMedia pension plans and all 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, 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 Circuit Court of Appeals for the Fifth Circuit, Oral argument was held on September 4, 2014. On October 14, 2014, the appellate court affirmed the decision of the District Court. Plaintiffs filed a Petition for Writ for Certiorari to the U.S. Supreme Court on February 17, 2015, which was denied on June 1, 2015. This matter is now concluded. Bruce Fulmer, et. al. v. Scott W. Klein, Donald B. Reed, Stephen L. Robertson, Thomas S. Rogers, Paul E. Weaver, John J. Mueller, Jerry V. Elliott, Samuel D. Jones, Katherine J. Harless, The Employee Benefits Committee, Georgia Scaife, William Gist, Steven Garberich, Clifford Wilson, Bill Mundy, Andrew Coticchio, the Human Resources Committee and John Does 1-20; Case No. 3:09-cv-2354-N - On December 10, 2009, Bruce Fulmer, a former Idearc Media employee who has a history of litigation against the Company, individually and behalf of others allegedly similarly situated (“Plaintiff”), filed a putative class action in the United States District Court for the Northern District of Texas (Dallas Division), against certain officers, directors and members of the Company’s Executive Benefits Committee (“Defendants”). Plaintiff claims Defendants breached fiduciary duties in violation of ERISA in administrating various savings plans from November 17, 2006 to March 31, 2009 and seeks to recover losses to the plans. On April 1, 2010, Randy Kopp, another former Idearc Media employee filed a similar case, which has been consolidated with the Fulmer matter. Plaintiffs originally alleged, among other claims, that Defendants breached a duty of prudence, duty of loyalty, and duty to monitor by wrongfully allowing all the plans to invest in Idearc’s common stock. On March 16, 2011, the Court granted the Defendants’ Motion to Dismiss the consolidated Complaint, and on March 15, 2012, following amendment, the Court again granted the Defendants’ Motion to Dismiss. On July 9, 2013, the U.S. Court of Appeals for the Fifth Circuit affirmed the dismissal. On July 1, 2014, the U.S. Supreme Court granted Plaintiffs’ petition for certiorari, vacated the judgment, and remanded for further consideration. On August 7, 2014, the Court of Appeals for the Fifth Circuit remanded to the District Court. On February 17, 2015, Plaintiffs filed a Second Amended Consolidated Complaint, reasserting claims based on allowing plans to invest in Idearc common stock. Plaintiffs seek unspecified compensatory damages and reimbursement for litigation expenses. On April 1, 2015, Defendants moved to dismiss the Amended Complaint, which is currently pending before the District Court. SuperMedia intends to honor its indemnification obligations and vigorously defend the allegations on behalf of Defendants. U.S. Bank National Association v. Andrew Coticchio and Verizon Communications, Inc. - On March 29, 2013, a former unsecured note holder that was impacted by the bankruptcy of SuperMedia in 2009, filed suit against Verizon Communications and SuperMedia’s former Chief Financial Officer (“Defendants”) in the Supreme Court of the State of New York, New York County. Plaintiff alleges that Verizon Communications improperly formed SuperMedia prior to the spin-off from Verizon by not having the requisite number of directors under Delaware law and that since SuperMedia was improperly formed, the former CFO did not have authority to execute its note on behalf of SuperMedia. Plaintiff seeks unpaid principal and interest from when the notes were impacted by the bankruptcy. SuperMedia plans to honor its indemnification obligation and vigorously defend the allegations on behalf of the Defendants. |
Business and Basis of Present17
Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Company prepares its financial statements in accordance with generally accepted accounting principles ("GAAP") in the United States. Pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC"), the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal recurring items and accruals, necessary to fairly present the financial position, results of operations and cash flows of Dex Media and its subsidiaries. All inter-company transactions have been eliminated. The Company is managed as a single business segment. These unaudited interim financial statements, prepared in accordance with GAAP, do not contain all information and footnote disclosures normally included in audited annual financial statements and, as such, should be read in conjunction with the Dex Media Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the six months ended June 30, 2015 may not be indicative of results of operations for the 2015 fiscal year. The preparation of these financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-10, "Technical Corrections and Improvements, " ("ASU 2015-10"). ASU 2015-10 covers a wide range of topics in the FASB Accounting Standards Codification (the "Codification"). The amendments in this update represent changes to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost on most entities. Amendments that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including the adoption in an interim period. All other amendments in this update were effective June 2015. The Company does not anticipate that the adoption of this accounting guidance will have a material impact on its financial statements. In May 2015, FASB issued ASU No. 2015-08, "Business Combinations (Topic 805): Pushdown Accounting," ("ASU 2015-08"). ASU 2015-08 amends various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. ASU 2015-08 provides guidance for the measurement of certain transfers between entities under common control in the separate financial statements of each entity. The amendments in ASU 2015-08 became effective immediately. The adoption of this accounting guidance did not have a material impact on the Company's financial statements. In May 2015, the FASB issued ASU No. 2015-07, "Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)," ("ASU 2015-07"). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. ASU 2015-07 also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using the practical expedient. The amendments in ASU 2015-07 are effective for public business entities retrospectively for fiscal years beginning after December 15, 2015, and for interim periods within those years. Early adoption is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-04, "Compensation - Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets," ("ASU 2015-04"). ASU 2015-04 provides the use of a practical expedient that permits the entity to measure defined benefit plans assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. Further, if a contribution or significant event occurs between the month-end date used to measure defined benefit plan asset and obligations and an entity's fiscal year-end, the entity should adjust the measurement of defined plan assets and obligations to reflect those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan asset and obligations for other events that occur between the month-end measurement and the entity's fiscal year-end that are not caused by the entity. The amendments in ASU 2015-04 are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. In April 2015, the FASB issued ASU No. 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years beginning after December 15, 2015, and for interim periods within those years. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. In January 2015, the FASB issued ASU 2015-01, "Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items," ("ASU 2015-01"). ASU 2015-01 eliminates from GAAP the concept of extraordinary items. Eliminating the concept of extraordinary items will save time and reduce costs for preparers because they will not have to assess whether a particular event or transaction event is extraordinary, even if they ultimately would conclude it is not. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in ASU 2015-01 are effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. A reporting entity also may apply the amendments retrospectively to all periods presented in the financial statements. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 will require management for each annual and interim reporting period to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures. In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period," ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is permitted for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures. |
Business Transformation Costs (
Business Transformation Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Restructuring and Related Costs | The following tables set forth the components of the Company's business transformation costs for the three and six months ended June 30, 2015 . Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (in millions) Severance costs $ 2 $ 2 Lease related costs 7 12 System consolidation costs 5 8 Other costs 1 2 Total business transformation costs $ 15 $ 24 |
Schedule of Restructuring Reserve by Type of Cost | The following table reflects the liability associated with the program as of June 30, 2015. Beginning Balance Ending Balance January 1, 2015 Expense Payments June 30, 2015 (in millions) Severance costs $ 38 $ 2 $ (26 ) $ 14 Lease related costs — 12 (3 ) 9 System consolidation costs — 8 (8 ) — Other costs — 2 (2 ) — Total business transformation costs $ 38 $ 24 $ (39 ) $ 23 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of the Company’s basic and diluted (loss) per share for the three and six months ended June 30, 2015 and 2014 . Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in millions, except per share amounts) Net (loss) $ (42 ) $ (85 ) $ (101 ) $ (167 ) Basic and diluted weighted-average common shares outstanding 17.4 17.3 17.4 17.3 Basic and diluted (loss) per common share $ (2.39 ) $ (4.93 ) $ (5.78 ) $ (9.67 ) |
Additional Financial Informat20
Additional Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Depreciation and amortization | The following tables set forth the components of the Company's depreciation and amortization expense for the three and six months ended June 30, 2015 and 2014 . Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in millions) Amortization of intangible assets $ 93 $ 146 $ 186 $ 293 Amortization of capitalized software 6 10 13 20 Depreciation of fixed assets 4 5 10 9 Total depreciation and amortization $ 103 $ 161 $ 209 $ 322 |
Schedule of comprehensive income adjustments for pension and post-employment benefits | The following tables set forth the components of the Company's comprehensive (loss) adjustments for pension and other post-employment benefits for the three and six months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 2014 Gross Taxes Net Gross Taxes Net (in millions) Net (loss) $ (42 ) $ (85 ) Adjustments for pension and other post-employment benefits: Accumulated actuarial gains (losses) of benefit plans $ (3 ) $ 1 (2 ) $ 3 $ (1 ) 2 Reclassifications included in net (loss): Amortization of actuarial losses 2 (1 ) 1 — — — Settlement losses 1 (1 ) — 1 (1 ) — Total reclassifications included in net (loss) 3 (2 ) 1 1 (1 ) — Adjustments for pension and other post-employment benefits $ — $ (1 ) (1 ) $ 4 $ (2 ) 2 Total comprehensive (loss) $ (43 ) $ (83 ) Six Months Ended June 30, 2015 2014 Gross Taxes Net Gross Taxes Net (in millions) Net (loss) $ (101 ) $ (167 ) Adjustments for pension and other post-employment benefits: Accumulated actuarial gains (losses) of benefit plans $ (1 ) $ — (1 ) $ 19 $ (7 ) 12 Reclassifications included in net (loss): Amortization of actuarial losses 3 (1 ) 2 — — — Settlement losses 2 (1 ) 1 1 (1 ) — Plan amendments — — — (13 ) 5 (8 ) Total reclassifications included in net (loss) 5 (2 ) 3 (12 ) 4 (8 ) Adjustments for pension and other post-employment benefits $ 4 $ (2 ) 2 $ 7 $ (3 ) 4 Total comprehensive (loss) $ (99 ) $ (163 ) |
Schedule of accumulated other comprehensive income | The following table sets forth the balance of the Company's accumulated other comprehensive (loss). All balances in accumulated other comprehensive (loss) are related to pension benefits. Gross Taxes Net (in millions) Accumulated other comprehensive (loss) - December 31, 2014 $ (82 ) $ (3 ) $ (85 ) Adjustments for pension benefits 4 (2 ) 2 Accumulated other comprehensive (loss) - June 30, 2015 $ (78 ) $ (5 ) $ (83 ) |
Schedule of additional information on the Company's accounts payable and accrued liabilities | The following table sets forth additional financial information related to the Company's accounts payable and accrued liabilities at June 30, 2015 and December 31, 2014. At June 30, 2015 At December 31, 2014 (in millions) Accounts payable $ 13 $ 14 Accrued salaries and wages 30 48 Accrued severance 14 39 Accrued taxes 16 16 Accrued expenses 25 31 Customer refunds, advance payments and other 24 19 Total accounts payable and accrued liabilities $ 122 $ 167 |
Schedule of carrying amount and fair value for total debt obligations | The following table sets forth the carrying amount and fair value using Level 2 inputs of the Company’s debt obligations at June 30, 2015 and December 31, 2014 . At June 30, 2015 At December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Senior secured credit facilities SuperMedia Inc. $ 843 $ 633 $ 841 $ 829 R.H. Donnelly Inc. 596 316 612 435 Dex Media East, Inc. 332 233 354 281 Dex Media West, Inc. 303 213 337 293 Senior subordinated notes 261 14 252 112 Total debt obligations $ 2,335 $ 1,409 $ 2,396 $ 1,950 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table sets forth the details of the Company's intangible assets at June 30, 2015 and December 31, 2014. At June 30, 2015 At December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in millions) Directory services agreements $ 666 $ 377 $ 289 $ 666 $ 307 $ 359 Client relationships 924 736 188 924 649 275 Trademarks and domain names 222 114 108 222 91 131 Patented technologies 42 21 21 42 16 26 Advertising commitment 11 9 2 11 8 3 Total intangible assets $ 1,865 $ 1,257 $ 608 $ 1,865 $ 1,071 $ 794 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt obligations | The following table sets forth the Company's outstanding debt obligations on the consolidated balance sheets at June 30, 2015 and December 31, 2014 . Interest Rates Carrying Value Maturity At June 30, 2015 At December 31, 2014 At June 30, At December 31, (in millions) Senior secured credit facilities SuperMedia Inc. December 31, 2016 11.6 % 11.6 % $ 843 $ 841 R.H. Donnelly Inc. December 31, 2016 9.75 % 9.75 % 596 612 Dex Media East, Inc. December 31, 2016 6.0 % 6.0 % 332 354 Dex Media West, Inc. December 31, 2016 8.0 % 8.0 % 303 337 Senior subordinated notes January 29, 2017 14.0 % 14.0 % 261 252 Total debt 2,335 2,396 Less: current maturities of long-term debt 124 124 Long-term debt $ 2,211 $ 2,272 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic cost (income) | The following table sets forth the net periodic cost (income) related to the Company's pension plans for the three and six months ended June 30, 2015 and 2014 . Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in millions) Interest cost $ 6 $ 7 $ 13 $ 14 Expected return on plan assets (8 ) (9 ) (16 ) (18 ) Amortization of net loss 2 — 3 — Settlement losses 1 1 2 1 Net periodic cost (income) $ 1 $ (1 ) $ 2 $ (3 ) |
Long-Term Incentive Compensat24
Long-Term Incentive Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of changes in outstanding restricted stock awards | Changes in the Company's outstanding restricted stock awards were as follows for the six months ended June 30, 2015 . Restricted Stock Awards Weighted-Average Grant Date Fair Value Outstanding restricted stock awards at January 1, 2015 213,246 $ 10.01 Granted — $ — Vested (8,511 ) $ 10.55 Forfeitures (60,981 ) $ 10.02 Outstanding restricted stock awards at June 30, 2015 143,754 $ 10.00 |
Schedule of weighted average option fair values and assumptions | Weighted average stock option fair values and assumptions for the six months ended June 30, 2015 are disclosed in the following table. Six Months Ended June 30, 2015 Weighted average fair value $ 4.50 Dividend yield — Volatility 55.35 % Risk-free interest rate 1.67 % Expected life (in years) 6.49 |
Schedule of changes in outstanding stock option awards | Changes in the Company's outstanding stock option awards were as follows for the six months ended June 30, 2015 . Number of Stock Option Awards Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding stock option awards at January 1, 2015 909,799 $ 9.17 9.31 $ 408,757 Granted 30,972 $ 8.25 10.00 — Exercises — $ — — — Forfeitures/expirations (307,761 ) $ 10.09 8.36 — Outstanding stock option awards at June 30, 2015 633,010 $ 8.67 9.06 $ — |
Schedule of stock-based compensation expense | The following table sets forth stock-based compensation expense recognized for the three and six months ended June 30, 2015 and 2014. These costs were recorded as part of general and administrative expense on the Company's consolidated statements of comprehensive (loss). Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (in millions) Stock-based compensation expense $ — $ 1 $ 1 $ 2 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of weighted average option fair values and assumptions | The expected volatility is based on the historical volatility of the Company's total invested capital over the period since the merger of the Company's predecessor companies, Dex One and SuperMedia. At October 14, 2014 At June 30, 2015 ($ in millions) Value creation programs fair value $ 12 $ 2 Expected volatility 11.93 % 13.64 % Remaining contractual term 3.21 years 2.50 years Expected dividend yield 0.00 % 0.00 % Risk free rate 0.87 % 0.83 % |
Business and Basis of Present25
Business and Basis of Presentation - Narrative (Details) - 6 months ended Jun. 30, 2015 client in Millions | clientemployee |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business clients (approx.) | client | 0.4 |
Number of sales employees (approx.) | 1,600 |
Merger (Details)
Merger (Details) - USD ($) $ in Millions | Apr. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
Business Acquisition [Line Items] | |||
Net income excluded | $ 14 | ||
Super Media, Inc. | |||
Business Acquisition [Line Items] | |||
Ownership interest of pre-merger shareholders in combined company | 40.00% | ||
Deferred Revenue | $ 386 | ||
Deferred Costs | $ 122 | ||
Merger integration costs | $ 8 | 26 | |
Dex One | |||
Business Acquisition [Line Items] | |||
Ownership interest of pre-merger shareholders in combined company | 60.00% | ||
Severance costs | Super Media, Inc. | |||
Business Acquisition [Line Items] | |||
Merger integration costs | $ 3 | 13 | |
Dex Media, Inc. | |||
Business Acquisition [Line Items] | |||
Deferred revenue not to be recognized | $ 386 | $ 30 | |
Deferred costs not to be recognized | $ 93 | ||
Super Media, Inc. | Newdex, Inc. | |||
Business Acquisition [Line Items] | |||
Conversion ratio (shares) | 0.4386 | ||
Dex One | Newdex, Inc. | |||
Business Acquisition [Line Items] | |||
Conversion ratio (shares) | 0.2 |
Business Transformation Costs27
Business Transformation Costs (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Restructuring Cost and Reserve [Line Items] | ||
Incurred cost | $ 67 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 38 | |
Expense | $ 15 | 24 |
Payments | (39) | |
Restructuring Reserve | 23 | 23 |
Proceeds from sale of property | 5 | |
Loss from sale of property | 1 | |
Severance costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 38 | |
Expense | 2 | |
Payments | (26) | |
Restructuring Reserve | 14 | 14 |
Lease related costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 0 | |
Expense | 12 | |
Payments | (3) | |
Restructuring Reserve | 9 | 9 |
System consolidation costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 0 | |
Expense | 8 | |
Payments | (8) | |
Restructuring Reserve | 0 | 0 |
Other costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 0 | |
Expense | 2 | |
Payments | (2) | |
Restructuring Reserve | 0 | 0 |
Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 70 | 70 |
Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 100 | 100 |
General and Administrative Expense | ||
Restructuring Reserve [Roll Forward] | ||
Expense | 15 | 24 |
General and Administrative Expense | Severance costs | ||
Restructuring Reserve [Roll Forward] | ||
Expense | 2 | 2 |
General and Administrative Expense | Lease related costs | ||
Restructuring Reserve [Roll Forward] | ||
Expense | 7 | 12 |
General and Administrative Expense | System consolidation costs | ||
Restructuring Reserve [Roll Forward] | ||
Expense | 5 | 8 |
General and Administrative Expense | Other costs | ||
Restructuring Reserve [Roll Forward] | ||
Expense | $ 1 | $ 2 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Sahre, Basic and Diluted [Abstract] | ||||
Net (loss) | $ (42) | $ (85) | $ (101) | $ (167) |
Basic and diluted weighted-average common shares outstanding (in shares) | 17.4 | 17.3 | 17.4 | 17.3 |
Basic and diluted (loss) per common share ($ per share) | $ (2.39) | $ (4.93) | $ (5.78) | $ (9.67) |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares excluded from computation of weighted average diluted shares outstanding (shares) | 0.6 | 0.4 | 0.6 | 0.4 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Participating securities outstanding (shares) | 0.1 | 0.3 | 0.1 | 0.3 |
Additional Financial Informat30
Additional Financial Information - Depreciation and Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Total depreciation and amortization | $ 103 | $ 161 | $ 209 | $ 322 |
Amortization of intangible assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation and amortization | 93 | 146 | 186 | 293 |
Amortization of capitalized software | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation and amortization | 6 | 10 | 13 | 20 |
Depreciation of fixed assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation and amortization | $ 4 | $ 5 | $ 10 | $ 9 |
Additional Financial Informat31
Additional Financial Information - Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Comprehensive Income (loss) Adjustments | ||||
Net (loss) | $ (42) | $ (85) | $ (101) | $ (167) |
Gross | ||||
Accumulated actuarial gains (losses) of benefit plans | (3) | 3 | (1) | 19 |
Amortization of actuarial losses | 2 | 0 | 3 | 0 |
Settlement losses | 1 | 1 | 2 | 1 |
Plan amendments | 0 | (13) | ||
Total reclassifications included in net (loss) | 3 | 1 | 5 | (12) |
Adjustments for pension and other post-employment benefits | 0 | 4 | 4 | 7 |
Taxes | ||||
Accumulated actuarial gains (losses) of benefit plans | 1 | (1) | 0 | (7) |
Amortization of actuarial losses | (1) | 0 | (1) | 0 |
Settlement losses | (1) | (1) | (1) | (1) |
Plan amendments | 0 | 5 | ||
Total reclassifications included in net (loss) | (2) | (1) | (2) | 4 |
Adjustments for pension and other post-employment benefits | (1) | (2) | (2) | (3) |
Net | ||||
Accumulated actuarial gains (losses) of benefit plans | (2) | 2 | (1) | 12 |
Amortization of actuarial losses | 1 | 0 | 2 | 0 |
Settlement losses | 0 | 0 | 1 | 0 |
Plan amendments | 0 | (8) | ||
Total reclassifications included in net (loss) | 1 | 0 | 3 | (8) |
Adjustments for pension benefits | (1) | 2 | 2 | 4 |
Comprehensive (Loss) | $ (43) | $ (83) | $ (99) | $ (163) |
Additional Financial Informat32
Additional Financial Information - Accumulated Other Comprehensive (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Gross | ||||
Accumulated other comprehensive (loss) - December 31, 2014 | $ (82) | |||
Adjustments for pension benefits | $ 0 | $ 4 | 4 | $ 7 |
Accumulated other comprehensive (loss) - June 30, 2015 | (78) | (78) | ||
Taxes | ||||
Accumulated other comprehensive (loss) - December 31, 2014 | (3) | |||
Adjustments for pension benefits | (1) | (2) | (2) | (3) |
Accumulated other comprehensive (loss) - June 30, 2015 | (5) | (5) | ||
Net | ||||
Accumulated other comprehensive (loss) - December 31, 2014 | (85) | |||
Adjustments for pension benefits | (1) | $ 2 | 2 | $ 4 |
Accumulated other comprehensive (loss) - June 30, 2015 | $ (83) | $ (83) |
Additional Financial Informat33
Additional Financial Information - Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 13 | $ 14 |
Accrued salaries and wages | 30 | 48 |
Accrued severance | 14 | 39 |
Accrued taxes | 16 | 16 |
Accrued expenses | 25 | 31 |
Customer refunds, advance payments and other | 24 | 19 |
Total accounts payable and accrued liabilities | $ 122 | $ 167 |
Additional Financial Informat34
Additional Financial Information - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Apr. 30, 2013 |
Fair Values of Financial Instruments | |||
Total debt obligations, carrying value | $ 2,335 | $ 2,396 | |
Carrying Amount | |||
Fair Values of Financial Instruments | |||
Total debt obligations, carrying value | 2,335 | 2,396 | |
Fair Value | |||
Fair Values of Financial Instruments | |||
Total debt obligations, fair value | 1,409 | 1,950 | |
Senior subordinated notes | Carrying Amount | |||
Fair Values of Financial Instruments | |||
Total debt obligations, carrying value | 261 | 252 | |
Senior subordinated notes | Fair Value | |||
Fair Values of Financial Instruments | |||
Total debt obligations, fair value | 14 | 112 | |
Super Media Amended and Restated Credit Facility | Amended and Restated Credit Facility | |||
Fair Values of Financial Instruments | |||
Total debt obligations, fair value | $ 1,082 | ||
Super Media Amended and Restated Credit Facility | Amended and Restated Credit Facility | Carrying Amount | |||
Fair Values of Financial Instruments | |||
Total debt obligations, carrying value | 843 | 841 | |
Super Media Amended and Restated Credit Facility | Amended and Restated Credit Facility | Fair Value | |||
Fair Values of Financial Instruments | |||
Total debt obligations, fair value | 633 | 829 | |
R.H. Donnelly Inc. | Amended and Restated Credit Facility | Carrying Amount | |||
Fair Values of Financial Instruments | |||
Total debt obligations, carrying value | 596 | 612 | |
R.H. Donnelly Inc. | Amended and Restated Credit Facility | Fair Value | |||
Fair Values of Financial Instruments | |||
Total debt obligations, fair value | 316 | 435 | |
Dex Media East, Inc. | Amended and Restated Credit Facility | Carrying Amount | |||
Fair Values of Financial Instruments | |||
Total debt obligations, carrying value | 332 | 354 | |
Dex Media East, Inc. | Amended and Restated Credit Facility | Fair Value | |||
Fair Values of Financial Instruments | |||
Total debt obligations, fair value | 233 | 281 | |
Dex Media West Amended and Restated Credit Facility | Amended and Restated Credit Facility | Carrying Amount | |||
Fair Values of Financial Instruments | |||
Total debt obligations, carrying value | 303 | 337 | |
Dex Media West Amended and Restated Credit Facility | Amended and Restated Credit Facility | Fair Value | |||
Fair Values of Financial Instruments | |||
Total debt obligations, fair value | $ 213 | $ 293 |
Additional Financial Informat35
Additional Financial Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Apr. 30, 2013 | |
Business Acquisition [Line Items] | ||||||
Interest expense, net | $ 87,000,000 | $ 90,000,000 | $ 172,000,000 | $ 180,000,000 | ||
Non-cash interest expense | 28,000,000 | $ 23,000,000 | 53,000,000 | 45,000,000 | ||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Par value | 1,004,000,000 | 1,004,000,000 | $ 1,442,000,000 | |||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Par value | 307,000,000 | 307,000,000 | ||||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||||
Business Acquisition [Line Items] | ||||||
Money market funds | 38,000,000 | 38,000,000 | $ 41,000,000 | |||
Certificates of deposit | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | |||
General and Administrative Expense | ||||||
Business Acquisition [Line Items] | ||||||
Credit to expense associated with settlement of liability under publishing agreement | 10,000,000 | |||||
Credit to expense associated with reduction of certain operating tax liabilities | 5,000,000 | |||||
General and Administrative Expense | Health Care and Life | ||||||
Business Acquisition [Line Items] | ||||||
Credit a result of plan amendments | $ 13,000,000 |
Intangible Assets (Details)
Intangible Assets (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)reporting_unit | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 315 | $ 315 | $ 315 | ||
Gross | 1,865 | $ 1,865 | 1,865 | ||
Number of reporting units | reporting_unit | 4 | ||||
Accumulated Amortization | 1,257 | $ 1,257 | 1,071 | ||
Net | 608 | 608 | 794 | ||
Depreciation and amortization | 103 | $ 161 | 209 | $ 322 | |
Estimated amortization expense | |||||
2,015 | 373 | 373 | |||
2,016 | 237 | 237 | |||
2,017 | 103 | 103 | |||
2,018 | 81 | 81 | |||
Directory services agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross | 666 | 666 | 666 | ||
Accumulated Amortization | 377 | 377 | 307 | ||
Net | 289 | 289 | 359 | ||
Client relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross | 924 | 924 | 924 | ||
Accumulated Amortization | 736 | 736 | 649 | ||
Net | 188 | 188 | 275 | ||
Trademarks and domain names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross | 222 | 222 | 222 | ||
Accumulated Amortization | 114 | 114 | 91 | ||
Net | 108 | 108 | 131 | ||
Patented technologies | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross | 42 | 42 | 42 | ||
Accumulated Amortization | 21 | 21 | 16 | ||
Net | 21 | 21 | 26 | ||
Advertising commitment | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross | 11 | 11 | 11 | ||
Accumulated Amortization | 9 | 9 | 8 | ||
Net | 2 | 2 | $ 3 | ||
Amortization of intangible assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Depreciation and amortization | $ 93 | $ 146 | $ 186 | $ 293 | |
Income Approach Valuation Technique | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost of capital | 14.80% |
Long-Term Debt - Schedule of Ca
Long-Term Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 2,335 | $ 2,396 |
Current maturities of long-term debt | 124 | 124 |
Long-term debt | $ 2,211 | $ 2,272 |
Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Debt stated percentage interest rate | 14.00% | 14.00% |
SuperMedia Inc. | Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 11.60% | 11.60% |
R.H. Donnelly Inc. | Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 9.75% | 9.75% |
Dex Media East, Inc. | Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 6.00% | 6.00% |
Dex Media West, Inc. | Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 8.00% | 8.00% |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 2,335 | $ 2,396 |
Carrying Value | Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | 261 | 252 |
Carrying Value | SuperMedia Inc. | Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | 843 | 841 |
Carrying Value | R.H. Donnelly Inc. | Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | 596 | 612 |
Carrying Value | Dex Media East, Inc. | Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | 332 | 354 |
Carrying Value | Dex Media West, Inc. | Amended and Restated Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying value | $ 303 | $ 337 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Apr. 08, 2015 | Jun. 16, 2014 | Apr. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 10, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||||||
Non-cash interest expense | $ 53,000,000 | $ 45,000,000 | |||||||
Total debt principal payments | 107,000,000 | 202,000,000 | |||||||
Amended and Restated Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized debt issuance expense | $ 3,000,000 | $ 3,000,000 | |||||||
Repurchase debt, maximum period to repurchase debt | 180 days | ||||||||
Total debt principal payments | $ 107,000,000 | 202,000,000 | |||||||
Principal repayments at par | 100,000,000 | 156,000,000 | |||||||
Administrative fees | $ 1,000,000 | ||||||||
Repurchase amount | 108,000,000 | 210,000,000 | |||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Total debt obligations, fair value | $ 1,082,000,000 | ||||||||
Additional senior subordinated notes | 1,442,000,000 | 1,004,000,000 | 1,004,000,000 | ||||||
Liabilities, Fair Value Adjustment | $ 360,000,000 | ||||||||
Non-cash interest expense | 22,000,000 | $ 19,000,000 | 42,000,000 | 36,000,000 | |||||
Unamortized discount | $ 161,000,000 | $ 161,000,000 | |||||||
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] | |||||||||
Variable interest rate floor percentage | 4.00% | 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] | |||||||||
Basis spread | 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 interest rate | 3.00% | 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] | |||||||||
Basis spread | 8.60% | ||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 1 month | ||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 2 months | ||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 3 months | ||||||||
Amended and Restated Credit Facility | Super Media Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | London Interbank Offered Rate LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 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] | |||||||||
Basis spread | 7.60% | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | |||||||||
Debt Instrument [Line Items] | |||||||||
Mandatory debt principal payments, excess cash flow sweep percentage | 60.00% | ||||||||
Repurchase debt, face value discount percent | 20.00% | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Principal and Interest Payments Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate floor percentage | 4.00% | 4.00% | |||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 0.50% | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt stated percentage interest rate | 3.00% | 3.00% | |||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 6.75% | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 1 month | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 2 months | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 3 months | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Four | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 6 months | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Three | Principal and Interest Payments Option One | London Interbank Offered Rate LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 1.00% | ||||||||
Amended and Restated Credit Facility | R.H. Donnelly Inc. | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 5.75% | ||||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | 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, Inc. | 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, Inc. | Principal and Interest Payments Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate floor percentage | 4.00% | 4.00% | |||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option One | Federal Funds Effective Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 0.50% | ||||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt stated percentage interest rate | 3.00% | 3.00% | |||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Eurodollar | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 3.00% | ||||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 1 month | ||||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 2 months | ||||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 3 months | ||||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Four | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 6 months | ||||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Three | Principal and Interest Payments Option One | London Interbank Offered Rate LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 1.00% | ||||||||
Amended and Restated Credit Facility | Dex Media East, Inc. | Variable Interest Rate Option Three | Principal and Interest Payments Option One | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 2.00% | ||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional senior subordinated notes | $ 307,000,000 | $ 307,000,000 | |||||||
Non-cash interest expense | 1,000,000 | 1,000,000 | |||||||
Unamortized discount | $ 4,000,000 | $ 4,000,000 | $ 5,000,000 | ||||||
Mandatory debt principal payments, excess cash flow sweep percentage | 50.00% | ||||||||
Repurchase debt, face value discount percent | 30.00% | ||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Principal and Interest Payments Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate floor percentage | 4.00% | 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] | |||||||||
Basis spread | 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 interest rate | 3.00% | 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] | |||||||||
Basis spread | 5.00% | ||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option One | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 1 month | ||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 2 months | ||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Three | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 3 months | ||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Two | Principal and Interest Payments Option Two | Interest Period Option Four | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest period | 6 months | ||||||||
Amended and Restated Credit Facility | Dex Media West Amended and Restated Credit Facility | Variable Interest Rate Option Three | Principal and Interest Payments Option One | London Interbank Offered Rate LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 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] | |||||||||
Basis spread | 4.00% | ||||||||
Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt stated percentage interest rate | 14.00% | 14.00% | 14.00% | ||||||
Total debt principal payments | 7,000,000 | $ 46,000,000 | |||||||
Gain on debt extinguishment | 1,000,000 | 8,000,000 | |||||||
Write-off of unamortized debt fair value adjustment | 7,000,000 | ||||||||
Administrative fees | 1,000,000 | ||||||||
Paid-in-kind interest | $ 9,000,000 | $ 8,000,000 | |||||||
Repurchase amount | $ 8,000,000 | $ 54,000,000 | |||||||
Senior Subordinated Notes | Dex One Senior Subordinated Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional senior subordinated notes | $ 9,000,000 | $ 9,000,000 | |||||||
Debt stated percentage interest rate | 12.00% | 12.00% | |||||||
Maximum stated rate | 14.00% | ||||||||
Percentage required in cash | 50.00% | ||||||||
Percentage required in PIK interest | 50.00% | ||||||||
Senior Subordinated Notes | Dex One Senior Subordinated Notes | Semi-Annual Interest Period | |||||||||
Debt Instrument [Line Items] | |||||||||
Percent of interest payments made in cash | 50.00% | ||||||||
Percent of interest payments made with payments-in-kind interest | 50.00% |
Employee Benefits (Details)
Employee Benefits (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)plan | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)plan | Jun. 30, 2014USD ($) | |
Components of net periodic cost (income) | ||||
Savings plan expenses | $ 2 | $ 3 | $ 6 | $ 7 |
Pension | ||||
Components of net periodic cost (income) | ||||
Interest cost | 6 | 7 | 13 | 14 |
Expected return on plan assets | (8) | (9) | (16) | (18) |
Amortization of net loss | 2 | 0 | 3 | 0 |
Settlement losses | 1 | 1 | 2 | 1 |
Net periodic cost (income) | $ 1 | (1) | $ 2 | (3) |
Non Qualified Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of pension plans | plan | 2 | 2 | ||
Qualified Pension Plan | ||||
Components of net periodic cost (income) | ||||
Cash contributions | $ 1 | $ 2 | $ 2 | 3 |
Estimated employer contributions in current year | $ 4 | |||
Health Care and Life | General and Administrative Expense | ||||
Components of net periodic cost (income) | ||||
Credit a result of plan amendments | $ 13 |
Long-Term Incentive Compensat40
Long-Term Incentive Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 14, 2014 | Jan. 02, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (shares) | 30,972 | ||||||
Options granted strike price ($ per share) | $ 10.25 | $ 8.25 | |||||
Unrecognized compensation expense related to restricted stock and stock option awards | $ 2 | $ 2 | |||||
Unrecognized compensation expense, period for recognition | 2 years 01 month | ||||||
Long-term compensation expense | $ 1 | $ 3 | |||||
Invested Capital | $ 2,290 | ||||||
Period to determine average trading prices for invested capital | 20 days | ||||||
Stock-based compensation expense | $ 0 | $ 1 | $ 1 | $ 2 | |||
Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (shares) | 271,000 | ||||||
Options granted strike price ($ per share) | $ 7.54 | ||||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares of common stock authorized for issuance under the incentive plan (in shares) | 1,264,911 | 1,264,911 | |||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award agreement triggering award to fully vest on date of change in control, period prior to change in control date | 6 months | ||||||
Award agreement triggering award to fully vest on date of employee service termination, period following change in control date | 2 years | ||||||
Outstanding units (in shares) | 143,754 | 143,754 | 213,246 | ||||
Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award agreement triggering award to fully vest on date of change in control, period prior to change in control date | 6 months | ||||||
Award agreement triggering award to fully vest on date of employee service termination, period following change in control date | 2 years | ||||||
Stock options awards expiration period | 10 years | ||||||
Award vesting period | 4 years | ||||||
Expected life (in years) | 6 years 5 months 27 days | ||||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ (1) | $ 1 | |||||
Unrecognized compensation expense | $ 1 | $ 1 | |||||
Expected life (in years) | 3 years 2 months 16 days | 2 years 6 months | |||||
Performance Shares | Value Creation Program (VCP) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares of common stock authorized for issuance under the incentive plan (in shares) | 700,000 | ||||||
Amount authorized as a percentage of value creation | 7.00% | ||||||
Outstanding units (in shares) | 645,000 | 645,000 | |||||
Performance Shares | Value Creation Program Two (VCP2) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Outstanding units (in shares) | 33,590 | 33,590 |
Long-Term Incentive Compensat41
Long-Term Incentive Compensation - Restricted Stock (Details) - 6 months ended Jun. 30, 2015 - Restricted Stock - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding restricted stock (in shares) | 213,246 |
Granted (in shares) | 0 |
Vested (in shares) | (8,511) |
Forfeitures (in shares) | (60,981) |
Outstanding restricted stock (in shares) | 143,754 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding restricted stock (in dollars per share) | $ 10.01 |
Granted (in dollars per share) | 0 |
Vested (in dollars per share) | 10.55 |
Forfeitures (in dollars per share) | 10.02 |
Outstanding restricted stock (in dollars per share) | $ 10 |
Long-Term Incentive Compensat42
Long-Term Incentive Compensation - Stock Options Valuation Assumptions (Details) - 6 months ended Jun. 30, 2015 - Stock Option - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average fair value | $ 4.50 |
Dividend yield | 0.00% |
Volatility | 55.35% |
Risk-free interest rate | 1.67% |
Expected life (in years) | 6 years 5 months 27 days |
Long-Term Incentive Compensat43
Long-Term Incentive Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 02, 2014 | Jun. 30, 2015 | Dec. 31, 2014 |
Number of Stock Option Awards (in shares) [Roll Forward]: | |||
Beginning balance | 909,799 | ||
Granted | 30,972 | ||
Exercises | 0 | ||
Forfeitures/expirations | (307,761) | ||
Ending balance | 633,010 | 909,799 | |
Weighted-Average Exercise Price (in dollars per share): | |||
Beginning balance | $ 9.17 | ||
Granted | $ 10.25 | 8.25 | |
Exercises | 0 | ||
Forfeitures/expirations | 10.09 | ||
Ending balance | $ 8.67 | $ 9.17 | |
Weighted-Average Remaining Contractual Term (in years): | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 9 years 23 days | 9 years 3 months 22 days | |
Granted | 10 years | ||
Forfeitures/expirations | 8 years 133 days | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 9 years 23 days | 9 years 3 months 22 days | |
Intrinsic Value | $ 0 | $ 408,757 |
Long-Term Incentive Compensat44
Long-Term Incentive Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 0 | $ 1 | $ 1 | $ 2 |
Long-Term Incentive Compensat45
Long-Term Incentive Compensation - Value Creation Program (Details) - Performance Shares - USD ($) $ in Millions | Oct. 14, 2014 | Jun. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Value creation programs fair value | $ 12 | $ 2 |
Volatility | 11.93% | 13.64% |
Expected life (in years) | 3 years 2 months 16 days | 2 years 6 months |
Dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 0.87% | 0.83% |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Rate [Line Items] | ||||
Anticipated effective income tax rate | 1.30% | (0.10%) | ||
Effective tax rate less valuation allowance reduction | 2.60% | |||
Effective income tax rate | (3.60%) | |||
Scenario, Forecast | ||||
Income Tax Rate [Line Items] | ||||
Anticipated effective income tax rate | 35.00% |
Contingencies (Details)
Contingencies (Details) - Retirees Vs Verizon and Company Employee Benefits Committee and Pension Plans | Nov. 04, 2010claim | Nov. 25, 2009plaintiff |
Loss Contingencies [Line Items] | ||
Number of plaintiffs | plaintiff | 3 | |
Number of claims for which motion was filed for dismissal | 1 | |
Number of remaining procedural ERISA claims | 2 |