##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM
10-K/A
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For
the fiscal year ended December 31, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 333-131626
 DEX MEDIA, INC.
  Delaware
    
    20-4059762(State or other jurisdiction of incorporation or organization)
    
    (I.R.S. Employer Identification No.)1001 Winstead Drive, Cary, N.C.
    
    27513(Address of principal executive offices)
    
    (Zip Code)
 Registrants telephone number, including area code ( 919) 297-1600
 Securities registered pursuant to Section 12(b) of the Act: None
 Securities registered pursuant to Section 12(g) of the Act: None
 o þ
 þ o
 o þ
 o
  Large accelerated filer o
Accelerated filer o
Non-accelerated filer þ(Do not check if a smaller reporting company)
Smaller reporting company o o þ
  THE REGISTRANT IS A WHOLLY-OWNED SUBSIDIARY OF R.H. DONNELLEY CORPORATION. THE REGISTRANT MEETS THE
CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS I(1)(a) AND (b) OF FORM 10-K AND IS THEREFORE FILING
THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.
  DOCUMENTS INCORPORATED BY REFERENCE
None




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##### Table of Contents



EXPLANATORY NOTE




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##### 



TABLE OF CONTENTS
 PART IIItem 8.
    
    Financial Statements and Supplementary Data
    
    
    F-1PART IVSignatures
    
    
    
    
    1EX-31.1EX-31.2EX-32.1
  2




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##### Table of Contents



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 INDEX TO FINANCIAL STATEMENTS
 PageDex Media, Inc.Managements Report on Internal Control Over Financial Reporting
    
    
    F-2Report of Independent Registered Public Accounting Firm
    
    
    F-3Consolidated Balance Sheets as of December 31, 2008 and 2007
    
    
    F-4Consolidated Statements of Operations and Comprehensive Income (Loss)
for the years ended December 31, 2008 and 2007, the eleven months
ended December 31, 2006 (Successor Company) and the one month ended
January 31, 2006 (Predecessor Company)
    
    
    F-5Consolidated Statements of Cash Flows for the years ended December
31, 2008 and 2007, the eleven months ended December 31, 2006
(Successor Company) and the one month ended January 31, 2006
(Predecessor Company)
    
    
    F-6Consolidated Statements of Changes in Shareholders (Shareholders)
Equity for the years ended December 31, 2008 and 2007, the eleven
months ended December 31, 2006 (Successor Company) and the one month
ended January 31, 2006 (Predecessor Company)
    
    
    F-7Notes to Consolidated Financial Statements
    
    
    F-8
 F-1




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##### Table of Contents



Managements Report on Internal Control Over Financial Reporting
     F-2




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
    Fair Value Measurement, Accounting for Uncertainty in Income Taxes: an Interpretation
of FASB Statement No. 109, Employers Accounting for Defined Benefit Pension and Other Postretirement
Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R),
   
 F-3




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##### Table of Contents



DEX MEDIA, INC. AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
 December 31,(in thousands, except share data)
    
    2008
    
    2007AssetsCurrent AssetsCash and cash equivalents
    
    $
    112,362
    
    
    $
    12,975Accounts receivableBilled
    
    
    188,090
    
    
    
    139,686Unbilled
    
    
    461,750
    
    
    
    509,809Allowance for doubtful billed accounts and sales claims
    
    
    (34,166
    )
    
    
    (21,816
    )Net accounts receivable
    
    
    615,674
    
    
    
    627,679Deferred directory costs
    
    
    107,392
    
    
    
    112,412Short-term deferred income taxes, net
    
    
    25,225
    
    
    
    39,044Prepaid expenses and other current assets
    
    
    52,452
    
    
    
    60,855Total current assets
    
    
    913,105
    
    
    
    852,965Fixed assets and computer software, net
    
    
    96,609
    
    
    
    83,268Other non-current assets
    
    
    64,930
    
    
    
    29,458Intangible assets, net
    
    
    7,505,200
    
    
    
    8,415,404Goodwill
    
    
    
    
    
    
    2,557,719Total assets
    
    $
    8,579,844
    
    
    $
    11,938,814Liabilities and Shareholders EquityCurrent LiabilitiesAccounts payable and accrued liabilities
    
    $
    99,688
    
    
    $
    100,990Due to parent, net
    
    
    73,391
    
    
    
    60,435Accrued interest
    
    
    69,513
    
    
    
    66,878Deferred directory revenues
    
    
    679,983
    
    
    
    739,011Current portion of long-term debt
    
    
    99,625
    
    
    
    161,007Total current liabilities
    
    
    1,022,200
    
    
    
    1,128,321Long-term debt
    
    
    4,562,206
    
    
    
    4,480,235Deferred income taxes, net
    
    
    1,017,445
    
    
    
    2,143,313Intercompany debt
    
    
    300,000
    
    
    
    300,000Other non-current liabilities
    
    
    184,402
    
    
    
    127,506Total liabilities
    
    
    7,086,253
    
    
    
    8,179,375Commitments and contingenciesShareholders EquityCommon stock, par value $.01 per share, 1,000 shares
authorized, issued and outstanding
    
    
    
    
    
    
    Additional paid-in capital
    
    
    3,580,838
    
    
    
    3,884,125Accumulated deficit
    
    
    (2,040,807
    )
    
    
    (120,902
    )Accumulated other comprehensive loss
    
    
    (46,440
    )
    
    
    (3,784
    )Total shareholders equity
    
    
    1,493,591
    
    
    
    3,759,439Total liabilities and shareholders equity
    
    $
    8,579,844
    
    
    $
    11,938,814
  F-4




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##### Table of Contents



DEX MEDIA, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 Successor Company
    
    
    Predecessor CompanyYears Ended December 31,
    
    Eleven Months Ended
    
    
    One Month Ended(in thousands)
    
    2008
    
    2007
    
    December 31, 2006
    
    
    January 31, 2006Net revenues
    
    $
    1,576,630
    
    
    $
    1,632,150
    
    
    $
    857,215
    
    
    
    $
    139,895ExpensesProduction, publication and distribution
expenses (exclusive of depreciation and
amortization shown separately below)
    
    
    230,260
    
    
    
    264,122
    
    
    
    217,720
    
    
    
    
    21,194Selling and support expenses
    
    
    403,835
    
    
    
    416,414
    
    
    
    358,526
    
    
    
    
    33,014General and administrative expenses
    
    
    57,127
    
    
    
    52,580
    
    
    
    62,277
    
    
    
    
    39,555Depreciation and amortization
    
    
    343,228
    
    
    
    332,494
    
    
    
    230,609
    
    
    
    
    26,810Impairment charges
    
    
    3,184,295
    
    
    
    
    
    
    
    
    
    
    
    
    Total expenses
    
    
    4,218,745
    
    
    
    1,065,610
    
    
    
    869,132
    
    
    
    
    120,573Operating income (loss)
    
    
    (2,642,115
    )
    
    
    566,540
    
    
    
    (11,917
    )
    
    
    
    19,322Interest expense, net
    
    
    (386,538
    )
    
    
    (359,390
    )
    
    
    (375,892
    )
    
    
    
    (37,494
    )Income (loss) before income taxes
    
    
    (3,028,653
    )
    
    
    207,150
    
    
    
    (387,809
    )
    
    
    
    (18,172
    )(Provision) benefit for income taxes
    
    
    1,108,748
    
    
    
    (87,175
    )
    
    
    147,144
    
    
    
    
    (1,872
    )Net income (loss)
    
    $
    (1,919,905
    )
    
    $
    119,975
    
    
    $
    (240,665
    )
    
    
    $
    (20,044
    )Comprehensive Income (Loss)Net income (loss)
    
    $
    (1,919,905
    )
    
    $
    119,975
    
    
    $
    (240,665
    )
    
    
    $
    (20,044
    )Unrealized (loss) gain on interest rate
swaps, net of tax (benefit) provision of
$(5,719), ($6,340), $(1,952) and $57 for
the years ended December 31, 2008 and
2007, the eleven months ended December
31, 2006, and the one month ended
January 31, 2006, respectively
    
    
    (7,768
    )
    
    
    (10,763
    )
    
    
    (3,065
    )
    
    
    
    90Benefit plans adjustment, net of tax
(benefit) provision of $(20,552) and
$3,697 for the years ended December 31,
2008 and 2007, respectively
    
    
    (34,888
    )
    
    
    6,259
    
    
    
    
    
    
    
    
    Comprehensive income (loss)
    
    $
    (1,962,561
    )
    
    $
    115,471
    
    
    $
    (243,730
    )
    
    
    $
    (19,954
    )
  F-5




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##### Table of Contents



DEX MEDIA, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 Successor Company
    
    
    Predecessor CompanyYears Ended December 31,
    
    Eleven Months Ended
    
    
    One Month Ended(in thousands)
    
    2008
    
    2007
    
    December 31, 2006
    
    
    January 31, 2006Cash Flows from Operating ActivitiesNet income (loss)
    
    $
    (1,919,905
    )
    
    $
    119,975
    
    
    $
    (240,665
    )
    
    
    $
    (20,044
    )Reconciliation of net income (loss) to net cash
provided by operating activities:Impairment charges
    
    
    3,184,295
    
    
    
    
    
    
    
    
    
    
    
    
    Depreciation and amortization
    
    
    343,228
    
    
    
    332,494
    
    
    
    230,609
    
    
    
    
    26,810Deferred income tax (benefit) provision
    
    
    (1,109,261
    )
    
    
    87,144
    
    
    
    (147,144
    )
    
    
    
    1,872Provision for bad debts
    
    
    84,520
    
    
    
    44,225
    
    
    
    33,479
    
    
    
    
    8,288Stock-based compensation expense
    
    
    15,466
    
    
    
    21,019
    
    
    
    17,507
    
    
    
    
    3,872Interest rate swap ineffectiveness
    
    
    7,992
    
    
    
    1,303
    
    
    
    550
    
    
    
    
    194Amortization of deferred financing costs
    
    
    7,372
    
    
    
    2,464
    
    
    
    2,287
    
    
    
    
    2,259Amortization of debt fair value adjustment
    
    
    (17,646
    )
    
    
    (92,127
    )
    
    
    (26,355
    )Accretion on discount notes
    
    
    54,275
    
    
    
    57,464
    
    
    
    48,435
    
    
    
    
    4,229Loss on extinguishment of debt
    
    
    2,142
    
    
    
    32,020
    
    
    
    
    
    
    
    
    Other non-cash items, net
    
    
    (55,263
    )
    
    
    (4,409
    )
    
    
    711
    
    
    
    
    Changes in assets and liabilities:(Increase) in accounts receivable, net of
provision for bad debts
    
    
    (72,516
    )
    
    
    (66,446
    )
    
    
    (47,723
    )
    
    
    
    (202
    )(Increase) decrease in other assets
    
    
    (8,945
    )
    
    
    16,836
    
    
    
    (28,097
    )
    
    
    
    4,275Increase (decrease) in accounts payable and
accrued liabilities and accrued interest
    
    
    79
    
    
    
    12,354
    
    
    
    (57,194
    )
    
    
    
    11,448(Decrease) increase in amounts due to parent
    
    
    (3,981
    )
    
    
    26,736
    
    
    
    (13,574
    )
    
    
    
    (Decrease) increase in deferred directory revenue
    
    
    (59,028
    )
    
    
    (19,576
    )
    
    
    654,264
    
    
    
    
    (3,160
    )Increase in other non-current liabilities
    
    
    55,670
    
    
    
    5,832
    
    
    
    4,084
    
    
    
    
    1,101Net cash provided by operating activities
    
    
    508,494
    
    
    
    577,308
    
    
    
    431,174
    
    
    
    
    40,942Cash Flows from Investing ActivitiesAdditions to fixed assets and computer software
    
    
    (50,116
    )
    
    
    (45,448
    )
    
    
    (24,931
    )
    
    
    
    (1,144
    )Net cash used in investing activities
    
    
    (50,116
    )
    
    
    (45,448
    )
    
    
    (24,931
    )
    
    
    
    (1,144
    )Cash Flows from Financing ActivitiesProceeds from the issuance of debt, net of costs
    
    
    
    
    
    
    1,088,822
    
    
    
    444,193
    
    
    
    
    Credit facility borrowings, net of costs
    
    
    1,035,103
    
    
    
    
    
    
    
    
    
    
    
    
    Note and credit facilities repayments
    
    
    (1,071,991
    )
    
    
    (1,817,453
    )
    
    
    (594,228
    )
    
    
    
    Revolver borrowings
    
    
    321,900
    
    
    
    403,000
    
    
    
    567,600
    
    
    
    
    Revolver repayments
    
    
    (345,950
    )
    
    
    (406,450
    )
    
    
    (552,100
    )
    
    
    
    (10,000
    )Premium paid on debt redemption
    
    
    
    
    
    
    (31,793
    )
    
    
    (2,914
    )
    
    
    
    Increase (decrease) in checks not yet presented for
payment
    
    
    5,097
    
    
    
    (8,600
    )
    
    
    6,812
    
    
    
    
    (1,224
    )Proceeds from employee stock option exercises
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,912Payment of debt refinance costs
    
    
    
    
    
    
    
    
    
    
    (1,012
    )
    
    
    
    Intercompany debt
    
    
    
    
    
    
    300,000
    
    
    
    
    
    
    
    
    Contribution by parent
    
    
    
    
    
    
    75,000
    
    
    
    22,000
    
    
    
    
    Distributions to parent
    
    
    (303,150
    )
    
    
    (150,000
    )
    
    
    (287,745
    )
    
    
    
    Common stock dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,554
    )Net cash used in financing activities
    
    
    (358,991
    )
    
    
    (547,474
    )
    
    
    (397,394
    )
    
    
    
    (21,866
    )Increase (decrease) in cash and cash equivalents
    
    
    99,387
    
    
    
    (15,614
    )
    
    
    8,849
    
    
    
    
    17,932Cash and cash equivalents, beginning of period
    
    
    12,975
    
    
    
    28,589
    
    
    
    19,740
    
    
    
    
    1,808Cash and cash equivalents, end of period
    
    $
    112,362
    
    
    $
    12,975
    
    
    $
    28,589
    
    
    
    $
    19,740Supplemental Information:Cash paid:Interest, net
    
    $
    298,951
    
    
    $
    360,995
    
    
    $
    370,398
    
    
    
    $
    15,126Income taxes, net
    
    $
    124
    
    
    $
    
    
    
    $
    
    
    
    
    $
    
  F-6




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##### Table of Contents



DEX MEDIA INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS (SHAREHOLDERS) EQUITY
 Accumulated
    
    TotalAdditional
    
    
    
    
    
    Other
    
    ShareholdersPaid-in
    
    Accumulated
    
    Comprehensive
    
    (Shareholders)Common Stock
    
    Capital
    
    Deficit
    
    (Loss) Income
    
    EquityPredecessor CompanyBalance, December 31, 2005
    
    $
    1,507
    
    
    $
    795,253
    
    
    $
    (107,133
    )
    
    $
    1,313
    
    
    $
    690,940Stock based compensation expense
    
    
    
    
    
    
    3,872
    
    
    
    
    
    
    
    
    
    
    
    3,872Common stock option exercise
    
    
    6
    
    
    
    2,906
    
    
    
    
    
    
    
    
    
    
    
    2,912Other
    
    
    
    
    
    
    62
    
    
    
    
    
    
    
    
    
    
    
    62Net loss
    
    
    
    
    
    
    
    
    
    
    (20,044
    )
    
    
    
    
    
    
    (20,044
    )Unrealized gain on interest rate
swaps, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    90
    
    
    
    90Balance, January 31, 2006
    
    $
    1,513
    
    
    $
    802,093
    
    
    $
    (127,177
    )
    
    $
    1,403
    
    
    $
    677,832Successor CompanyCapitalization at RHD Merger
    
    $
    
    
    
    $
    4,224,870
    
    
    $
    
    
    
    $
    
    
    
    $
    4,224,870Contribution by parent
    
    
    
    
    
    
    22,000
    
    
    
    
    
    
    
    
    
    
    
    22,000Distribution to parent
    
    
    
    
    
    
    (287,745
    )
    
    
    
    
    
    
    
    
    
    
    (287,745
    )Net loss
    
    
    
    
    
    
    
    
    
    
    (240,665
    )
    
    
    
    
    
    
    (240,665
    )Unrealized loss on interest rate
swaps, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,065
    )
    
    
    (3,065
    )Adjustment to initially apply SFAS
No. 158, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,785
    
    
    
    3,785Balance, December 31, 2006
    
    
    
    
    
    
    3,959,125
    
    
    
    (240,665
    )
    
    
    720
    
    
    
    3,719,180Contribution by parent
    
    
    
    
    
    
    75,000
    
    
    
    
    
    
    
    
    
    
    
    75,000Distributions to parent
    
    
    
    
    
    
    (150,000
    )
    
    
    
    
    
    
    
    
    
    
    (150,000
    )Cumulative effect of FIN No. 48
adoption
    
    
    
    
    
    
    
    
    
    
    (212
    )
    
    
    
    
    
    
    (212
    )Net income
    
    
    
    
    
    
    
    
    
    
    119,975
    
    
    
    
    
    
    
    119,975Unrealized loss on interest rate
swaps, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10,763
    )
    
    
    (10,763
    )Benefit plans adjustment, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,259
    
    
    
    6,259Balance, December 31, 2007
    
    
    
    
    
    
    3,884,125
    
    
    
    (120,902
    )
    
    
    (3,784
    )
    
    
    3,759,439Distribution to parent
    
    
    
    
    
    
    (303,150
    )
    
    
    
    
    
    
    
    
    
    
    (303,150
    )Other adjustments related to
compensatory stock awards
    
    
    
    
    
    
    (137
    )
    
    
    
    
    
    
    
    
    
    
    (137
    )Net loss
    
    
    
    
    
    
    
    
    
    
    (1,919,905
    )
    
    
    
    
    
    
    (1,919,905
    )Unrealized loss on interest rate
swaps, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,768
    )
    
    
    (7,768
    )Benefit plans adjustment, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (34,888
    )
    
    
    (34,888
    )Balance, December 31, 2008
    
    $
    
    
    
    $
    3,580,838
    
    
    $
    (2,040,807
    )
    
    $
    (46,440
    )
    
    $
    1,493,591
  F-7




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##### Table of Contents



DEX MEDIA, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (tabular amounts in thousands, except share and per share data)
 1. Business and Presentation
  ®
   Going Concern
    F-8




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##### Table of Contents



Significant Financing Developments
  F-9




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##### Table of Contents



Accounting for Derivative Instruments and Hedging
Activities
  Historical Overview
    2. Summary of Significant Accounting Policies
 Revenue Recognition
  F-10




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##### Table of Contents



Revenue
Arrangements with Multiple Deliverables.
 Deferred Directory Costs
  Cash and Cash Equivalents
 .
 Accounts Receivable
  Identifiable Intangible Assets and Goodwill
  Business Combinations Goodwill and
Other Intangible Assets
 Accounting for the Impairment or Disposal of Long-Lived Assets
 F-11




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##### Table of Contents



Local Customer
    
    National CMRRelationships
    
    Relationships
    
    TotalDex Media West
    
    $
    251,000
    
    
    $
    75,000
    
    
    $
    326,000Dex Media East
    
    
    222,000
    
    
    
    55,000
    
    
    
    277,000Total impairment
charges
    
    $
    473,000
    
    
    $
    130,000
    
    
    $
    603,000
 F-12




---



##### Table of Contents



December 31, 2008Directory
    
    Local
    
    NationalServices
    
    Customer
    
    CMR
    
    Trade
    
    AdvertisingAgreements
    
    Relationships
    
    Relationships
    
    Names
    
    Commitment
    
    TotalFair value
    
    $
    7,320,000
    
    
    $
    229,807
    
    
    $
    50,041
    
    
    $
    490,000
    
    
    $
    25,000
    
    
    $
    8,114,848Accumulated amortization
    
    
    (508,333
    )
    
    
    
    
    
    
    
    
    
    
    (95,278
    )
    
    
    (6,037
    )
    
    
    (609,648
    )Net intangible assets
    
    $
    6,811,667
    
    
    $
    229,807
    
    
    $
    50,041
    
    
    $
    394,722
    
    
    $
    18,963
    
    
    $
    7,505,200
  December 31, 2007Directory
    
    Local
    
    NationalServices
    
    Customer
    
    CMR
    
    Trade
    
    AdvertisingAgreements
    
    Relationships
    
    Relationships
    
    Names
    
    Commitment
    
    TotalFair value
    
    $
    7,320,000
    
    
    $
    875,000
    
    
    $
    205,000
    
    
    $
    490,000
    
    
    $
    25,000
    
    
    $
    8,915,000Accumulated amortization
    
    
    (334,048
    )
    
    
    (82,891
    )
    
    
    (16,053
    )
    
    
    (62,611
    )
    
    
    (3,993
    )
    
    
    (499,596
    )Net intangible assets
    
    $
    6,985,952
    
    
    $
    792,109
    
    
    $
    188,947
    
    
    $
    427,389
    
    
    $
    21,007
    
    
    $
    8,415,404
  F-13




---



##### Table of Contents



Fixed Assets and Computer Software
  F-14




---



##### Table of Contents



2008
    
    
    2007Computer software
    
    $
    125,217
    
    
    
    $
    95,999Computer equipment
    
    
    27,385
    
    
    
    
    21,185Machinery and equipment
    
    
    1,410
    
    
    
    
    1,269Furniture and fixtures
    
    
    8,429
    
    
    
    
    4,668Leasehold improvements
    
    
    21,082
    
    
    
    
    11,580Construction in Process  Computer software and equipment
    
    
    1,146
    
    
    
    
    12,189Total cost
    
    
    184,669
    
    
    
    
    146,890Less accumulated depreciation and amortization
    
    
    (88,060
    )
    
    
    
    (63,622
    )Net fixed assets and computer software
    
    $
    96,609
    
    
    
    $
    83,268
  Successor Company
    
    
    Predecessor CompanyYear Ended December 31,
    
    Eleven Months Ended
    
    
    One Month Ended2008
    
    2007
    
    December 31, 2006
    
    
    January 31, 2006Depreciation of fixed assets
    
    $
    8,312
    
    
    $
    8,488
    
    
    $
    10,545
    
    
    
    $
    789Amortization of computer software
    
    
    27,713
    
    
    
    23,755
    
    
    
    20,719
    
    
    
    
    1,738Total depreciation and
amortization on fixed assets and
computer software
    
    $
    36,025
    
    
    $
    32,243
    
    
    $
    31,264
    
    
    
    $
    2,527
  Interest Expense and Deferred Financing Costs
   F-15




---



##### Table of Contents



Advertising Expense
  Concentration of Credit Risk
     Labor Unions
  F-16




---



##### Table of Contents



Derivative Financial Instruments and Hedging Activities
 , Accounting for Certain Derivative Instruments and Certain
Hedging Activities, an Amendment of FAS 133 Amendment of Statement 133 on
Derivative Instruments and Hedging Activities.
     Pension and Postretirement Benefits
  F-17




---



##### Table of Contents



Employers Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of
FASB Statements No. 87, 88, 106, and 132(R)
  Income Taxes
 Accounting for Income Taxes
 Accounting for Uncertainty in Income Taxes: An
Interpretation of FASB Statement No. 109
  Stock-Based Awards
    F-18




---



##### Table of Contents



Share-Based Payment
  Accounting for Stock Issued to Employees
 Eleven Months EndedDecember 31, 2006As Reported
    
    Per APB No. 25Total stock-based compensation expense
    
    $
    17,507
    
    
    $
    5,418Net loss
    
    
    (240,665
    )
    
    
    (233,163
    )
    Fair Value of Financial Instruments
 Disclosures About Fair Value of Financial Instruments
 Fair Value Measurements
    F-19




---



##### Table of Contents



Fair ValueMeasurements atDecember 31, 2008Using SignificantOther ObservableDescription
    
    Inputs (Level 2)Derivatives  Liabilities
    
    $
    (41,326
    )
       Effective Date of FASB Statement No.
157
 Estimates
  F-20




---



##### Table of Contents



New Accounting Pronouncements
 Determination of the Useful Life of
Intangible Assets Business Combinations
 Disclosures about Derivative Instruments and Hedging
Activities an amendment of FASB Statement No. 133
 Business
Combinations
  3. Restructuring Charges
  2006
    
    2007
    
    2008Restructuring
    
    Restructuring
    
    RestructuringActions
    
    Actions
    
    Actions
    
    TotalBalance at January 31, 2006
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Additions to reserve charged to
goodwill
    
    
    18,914
    
    
    
    
    
    
    
    
    
    
    
    18,914Payments
    
    
    (11,299
    )
    
    
    
    
    
    
    
    
    
    
    (11,299
    )Balance at December 31, 2006
    
    
    7,615
    
    
    
    
    
    
    
    
    
    
    
    7,615Additions to reserve charged to goodwill
    
    
    96
    
    
    
    
    
    
    
    
    
    
    
    96Additions to reserve charged to earnings
    
    
    
    
    
    
    2,036
    
    
    
    
    
    
    
    2,036Payments
    
    
    (3,825
    )
    
    
    
    
    
    
    
    
    
    
    (3,825
    )Reserve reversal credited to goodwill
    
    
    (559
    )
    
    
    
    
    
    
    
    
    
    
    (559
    )Balance at December 31, 2007
    
    
    3,327
    
    
    
    2,036
    
    
    
    
    
    
    
    5,363Additions to reserve charged to earnings
    
    
    
    
    
    
    
    
    
    
    21,291
    
    
    
    21,291Payments
    
    
    (2,145
    )
    
    
    (1,952
    )
    
    
    (14,009
    )
    
    
    (18,105
    )Reserve reversal credited to earnings
    
    
    (615
    )
    
    
    (31
    )
    
    
    
    
    
    
    (646
    )Balance at December 31, 2008
    
    $
    567
    
    
    $
    53
    
    
    $
    7,282
    
    
    $
    7,903
 F-21




---



##### Table of Contents



4. Long-Term Debt, Credit Facilities and Notes
  December 31,
    
    December 31,2008
    
    2007Dex Media, Inc.8% Senior Notes due 2013
    
    $
    510,408
    
    
    $
    512,0979% Senior Discount Notes due 2013
    
    
    771,488
    
    
    
    719,112Dex Media EastCredit Facility
    
    
    1,081,500
    
    
    
    1,106,050Dex Media WestNew Credit Facility
    
    
    1,080,000
    
    
    
    Former Credit Facility
    
    
    
    
    
    
    1,071,4918.5% Senior Notes due 2010
    
    
    393,883
    
    
    
    398,7365.875% Senior Notes due 2011
    
    
    8,761
    
    
    
    8,7749.875% Senior Subordinated Notes due 2013
    
    
    815,791
    
    
    
    824,982Total Dex Media Inc. Consolidated
    
    
    4,661,831
    
    
    
    4,641,242Less: current portion
    
    
    99,625
    
    
    
    161,007Long-term debt
    
    $
    4,562,206
    
    
    $
    4,480,235
 F-22




---



##### Table of Contents



Credit Facilities
  Dex Media East
   
    
    The higher of (i) the base rate determined by the Administrative Agent, JP Morgan Chase
Bank, N.A. and (ii) the Federal Funds Effective Rate (as defined) plus 0.50%, and in each
case, plus a 0.75% (or 0.50% if leverage ratio is less than 2 to 1) margin on the Dex Media
East Revolver and Term Loan A and a 1.00% margin on Term Loan B; or
    
    The LIBOR rate plus a 1.75% (or 1.50% if leverage ratio is less than 2 to 1) margin on
the Dex Media East Revolver and Term Loan A and a 2.00% margin on Term Loan B. We may elect
interest periods of 1, 2, 3, or 6 months (or 9 or 12 months if, at the time of the
borrowing, all lenders agree to make such term available), for LIBOR borrowings.
    F-23




---



##### Table of Contents



Dex Media West
    
    
    The highest of (i) the base rate determined by the Administrative Agent, JP Morgan Chase
Bank, N.A., (ii) the Federal Funds Effective Rate (as defined) plus 0.50%, and (iii) 4.0%,
in each case, plus a 2.75% (or 2.50% if the leverage ratio is less than 3.00 to 1.00)
margin on the Dex Media West Revolver and Term Loan A and a 3.0% margin on Term Loan B; or
    
    The higher of (i) LIBOR rate and (ii) 3.0% plus a 3.75% (or 3.50% if the leverage ratio
is less than 3.00 to 1.00) margin on the Dex Media West Revolver and Term Loan A and a 4.0%
margin on Term Loan B. We may elect interest periods of 1, 2, 3, or 6 months (or 9 or 12
months if, at the time of the borrowing, all lenders agree to make such term available),
for LIBOR borrowings.
 Notes
  Dex Media, Inc.
  th th
  Redemption Year
    
    Price2009
    
    
    102.667
    %2010
    
    
    101.333
    %2011 and thereafter
    
    
    100.000
    %
 F-24




---



##### Table of Contents



th th
  Redemption Year
    
    Price2009
    
    
    103.000
    %2010
    
    
    101.500
    %2011 and thereafter
    
    
    100.000
    %
 Dex Media East
  Dex Media West
  th th
  Redemption Year
    
    Price2009 and thereafter
    
    
    100.000
    %
 th th
 F-25




---



##### Table of Contents



Redemption Year
    
    Price2009
    
    
    101.469
    %2010 and thereafter
    
    
    100.000
    %
 th th
  Redemption Year
    
    Price2009
    
    
    103.292
    %2010
    
    
    101.646
    %2011 and thereafter
    
    
    100.000
    %
  2009
    
    $
    99,6252010
    
    
    521,3752011
    
    
    155,4702012
    
    
    212,8752013
    
    
    2,302,441Thereafter
    
    
    1,283,875Total
    
    $
    4,575,661
  Impact of RHD Merger
  F-26




---



##### Table of Contents



Long-Term Debt atUnamortized Fair
    
    Long-Term Debt
    
    December 31, 2008Value Adjustment at
    
    at December 31,
    
    Excluding Unamortized FairDecember 31, 2008
    
    2008
    
    Value AdjustmentDex Media, Inc.Dex Media, Inc. 8% Senior Notes
    
    $
    10,408
    
    
    $
    510,408
    
    
    $
    500,000Dex Media, Inc. 9% Senior Discount Notes
    
    
    12,697
    
    
    
    771,488
    
    
    
    758,791Dex Media WestDex Media West 8.5% Senior Notes
    
    
    8,883
    
    
    
    393,883
    
    
    
    385,000Dex Media West 5.875% Senior Notes
    
    
    41
    
    
    
    8,761
    
    
    
    8,720Dex Media West 9.875% Senior
Subordinated Notes
    
    
    54,141
    
    
    
    815,791
    
    
    
    761,650Total Dex Media Outstanding Debt at
January 31, 2006
    
    $
    86,170
    
    
    $
    2,500,331
    
    
    $
    2,414,161
 5. Derivative Financial Instruments
  Effective Dates
    
    Notional Amount
    
    
    Pay Rates
    
    
    Maturity Dates(amounts in millions)February 14, 2006
    
    $
    200
    (2)  (4)
    
    
    4.925%  4.93%
    
    
    February 14, 2009May 25, 2006
    
    
    100
    (1)  (4)
    
    
    5.326%
    
    
    May 26, 2009May 26, 2006
    
    
    200
    (2)  (4)
    
    
    5.2725%  5.275%
    
    
    May 26, 2009June 12, 2006
    
    
    150
    (2)  (4)
    
    
    5.27%  5.279%
    
    
    June 12, 2009November 26, 2007
    
    
    600
    (3)  (5)
    
    
    4.1852%  4.604%
    
    
    November 26, 2010  November 26, 2012March 31, 2008
    
    
    100
    (1) (5)
    
    
    3.50%
    
    
    March 29, 2013September 30, 2008
    
    
    150
    (1) (5)
    
    
    3.955%
    
    
    September 30, 2011Total
    
    $
    1,500
 
 (1)
    
    Consists of one swap(2)
    
    Consists of two swaps(3)
    
    Consists of four swaps(4)
    
    Dex Media East swaps(5)
    
    Dex Media West swaps   F-27




---



##### Table of Contents



6. Stock Incentive Plans
     F-28




---



##### Table of Contents



December 31, 2008
    
    December 31, 2007
    
    December 31, 2006Expected volatility
    
    
    58.8
    %
    
    
    23.5
    %
    
    
    28.2
    %Risk-free interest rate
    
    
    2.8
    %
    
    
    4.5
    %
    
    
    4.4
    %Expected life
    
    5 Years
    
    5 Years
    
    5 yearsDividend yield
    
    
    0
    %
    
    
    0
    %
    
    
    0
    %
 Use of a Simplified
Method in Developing Expected Term of Share Options
   Weighted Average
    
    AggregateExercise/Grant
    
    IntrinsicShares
    
    Price Per Share
    
    ValueAwards outstanding, January 1, 2008
    
    
    5,863,802
    
    
    $
    48.51
    
    
    $
    3Granted
    
    
    3,700,469
    
    
    
    5.38
    
    
    
    Exercises
    
    
    (18,653
    )
    
    
    5.16
    
    
    
    (1
    )Exchanged
    
    
    (4,186,641
    )
    
    
    49.57
    
    
    
    Forfeitures
    
    
    (427,716
    )
    
    
    39.02
    
    
    
    Awards outstanding, December 31, 2008
    
    
    4,931,261
    
    
    $
    15.70
    
    
    $
    2Available for future grants at December 31, 2008
    
    
    3,279,565
  F-29




---



##### Table of Contents



Stock Awards Outstanding
    
    
    Stock Awards ExercisableWeighted
    
    
    
    
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    
    
    
    
    AverageRemaining
    
    Weighted
    
    
    
    
    
    
    Remaining
    
    WeightedRange of
    
    
    
    
    
    Contractual
    
    Average
    
    
    
    
    
    
    Contractual
    
    AverageExercise/Grant
    
    
    
    
    
    Life
    
    Exercise/Grant
    
    
    
    
    
    
    Life
    
    Exercise/GrantPrices
    
    Shares
    
    (In Years)
    
    Price Per Share
    
    
    Shares
    
    (In Years)
    
    Price Per Share$0.22  $7.11
    
    
    3,629,894
    
    
    
    6.34
    
    
    $
    5.00
    
    
    
    
    378,717
    
    
    
    6.25
    
    
    $
    6.36$10.78  $14.75
    
    
    96,859
    
    
    
    4.35
    
    
    
    10.78
    
    
    
    
    96,859
    
    
    
    4.35
    
    
    
    10.78$15.22  $19.41
    
    
    66,060
    
    
    
    6.74
    
    
    
    18.17
    
    
    
    
    34,039
    
    
    
    5.28
    
    
    
    18.12$24.75  $29.59
    
    
    337,049
    
    
    
    .89
    
    
    
    25.75
    
    
    
    
    337,049
    
    
    
    .89
    
    
    
    25.75$30.11  $39.21
    
    
    23,798
    
    
    
    4.33
    
    
    
    33.81
    
    
    
    
    13,598
    
    
    
    3.08
    
    
    
    31.81$41.10  $43.85
    
    
    192,667
    
    
    
    2.36
    
    
    
    41.42
    
    
    
    
    192,667
    
    
    
    2.36
    
    
    
    41.42$46.06  $55.25
    
    
    23,660
    
    
    
    3.32
    
    
    
    50.88
    
    
    
    
    20,160
    
    
    
    3.13
    
    
    
    50.26$56.55  $66.23
    
    
    323,865
    
    
    
    3.85
    
    
    
    63.63
    
    
    
    
    293,843
    
    
    
    3.77
    
    
    
    63.78$70.44  $80.68
    
    
    237,409
    
    
    
    5.18
    
    
    
    74.55
    
    
    
    
    147,492
    
    
    
    5.15
    
    
    
    74.464,931,261
    
    
    
    5.53
    
    
    $
    15.70
    
    
    
    
    1,514,424
    
    
    
    3.76
    
    
    $
    34.96
   WeightedNon-vested Stock
    
    Average Grant
    
    Non-Vested
    
    Weighted AverageOptions
    
    Date Exercise
    
    Restricted
    
    Grant Date Fairand SARs
    
    Price Per Award
    
    Stock
    
    Value Per AwardNon-vested at January 1, 2008
    
    
    2,088,640
    
    
    $
    63.96
    
    
    $
    151,564
    
    
    $
    62.67Granted
    
    
    3,700,469
    
    
    
    5.38
    
    
    
    767,649
    
    
    
    3.81Vested
    
    
    (976,891
    )
    
    
    45.86
    
    
    
    (170,490
    )
    
    
    18.65Unvested exchanged
    
    
    (1,035,252
    )
    
    
    66.91
    
    
    
    
    
    
    
    Forfeitures
    
    
    (360,129
    )
    
    
    40.06
    
    
    
    (39,194
    )
    
    
    41.03Non-vested at December 31, 2008
    
    
    3,416,837
    
    
    $
    7.45
    
    
    $
    709,529
    
    
    $
    10.81
   F-30




---



##### Table of Contents



.
   F-31




---



##### Table of Contents



F-32




---



##### Table of Contents



7. Income Taxes
   Successor Company
    
    
    Predecessor CompanyYear Ended December 31,
    
    Eleven Months Ended
    
    
    One Month Ended2008
    
    2007
    
    December 31, 2006
    
    
    January 31, 2006Current provisionU.S. Federal
    
    $
    (411
    )
    
    $
    (31
    )
    
    $
    
    
    
    
    $
    State and local
    
    
    (102
    )
    
    
    
    
    
    
    
    
    
    
    
    Total current provision
    
    
    (513
    )
    
    
    (31
    )
    
    
    
    
    
    
    
    Deferred benefit (provision)U.S. Federal
    
    
    984,839
    
    
    
    (61,851
    )
    
    
    137,698
    
    
    
    
    (1,553
    )State and local
    
    
    124,422
    
    
    
    (25,293
    )
    
    
    9,446
    
    
    
    
    (319
    )Total deferred benefit (provision)
    
    
    1,109,261
    
    
    
    (87,144
    )
    
    
    147,144
    
    
    
    
    (1,872
    )Benefit (provision) for income taxes
    
    $
    1,108,748
    
    
    $
    (87,175
    )
    
    $
    147,144
    
    
    
    $
    (1,872
    )
 F-33




---



##### Table of Contents



Successor Company
    
    
    Predecessor CompanyYear Ended December 31,
    
    Eleven Months Ended
    
    
    One Month Ended2008
    
    2007
    
    December 31, 2006
    
    
    January 31, 2006Statutory U.S. Federal tax rate
    
    
    35.0
    %
    
    
    35.0
    %
    
    
    35.0
    %
    
    
    
    35.0
    %State and local taxes, net of U.S.
Federal tax benefit
    
    
    2.8
    
    
    
    7.7
    
    
    
    2.4
    
    
    
    
    4.3Non-deductible goodwill impairment charge
    
    
    (1.2
    )
    
    
    
    
    
    
    
    
    
    
    
    Non-deductible expense
    
    
    
    
    
    
    0.2
    
    
    
    0.5
    
    
    
    
    (0.3
    )Valuation allowance
    
    
    
    
    
    
    0.3
    
    
    
    
    
    
    
    
    (50.1
    )Other, net
    
    
    
    
    
    
    (1.1
    )
    
    
    
    
    
    
    
    0.8Effective tax rate
    
    
    36.6
    %
    
    
    42.1
    %
    
    
    37.9
    %
    
    
    
    (10.3
    )%
  2008
    
    2007Deferred income tax assetsAllowance for doubtful accounts
    
    $
    13,273
    
    
    $
    5,022Deferred and other compensation
    
    
    24,312
    
    
    
    16,971Deferred directory revenue
    
    
    
    
    
    
    25,805Deferred financing costs
    
    
    14,987
    
    
    
    21,532Debt and other interest
    
    
    51,035
    
    
    
    47,913Pension and other retirement benefits
    
    
    48,333
    
    
    
    11,506Restructuring reserves
    
    
    3,688
    
    
    
    2,239Net operating loss and credit carryforwards
    
    
    134,877
    
    
    
    148,389Other
    
    
    1,185
    
    
    
    2,918Total deferred income tax assets
    
    
    291,690
    
    
    
    282,295Valuation allowance
    
    
    (260
    )
    
    
    (596
    )Net deferred income tax assets
    
    
    291,430
    
    
    
    281,699Deferred income tax liabilitiesFixed assets and capitalized software
    
    
    12,647
    
    
    
    4,762Purchased goodwill and intangible assets
    
    
    1,270,828
    
    
    
    2,381,206Other
    
    
    175
    
    
    
    Total deferred income tax liabilities
    
    
    1,283,650
    
    
    
    2,385,968Net deferred income tax liabilities
    
    $
    992,220
    
    
    $
    2,104,269
    F-34




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##### Table of Contents



F-35




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##### Table of Contents



Adoption of FIN No. 48
    8. Benefit Plans
      Pension Plan.
 F-36




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##### Table of Contents



Savings Plan.
 Postretirement Benefits.
 Benefit Obligations and Funded Status
  Pension Plan
    
    Postretirement Plan(in thousands)
    
    2008
    
    2007
    
    2008
    
    2007Change in benefit obligationBenefit obligation, beginning of year
    
    $
    168,943
    
    
    $
    186,992
    
    
    $
    71,977
    
    
    $
    68,732Service cost
    
    
    7,069
    
    
    
    8,225
    
    
    
    1,160
    
    
    
    1,357Interest cost
    
    
    10,142
    
    
    
    10,309
    
    
    
    4,333
    
    
    
    3,999Actuarial loss (gain)
    
    
    15,816
    
    
    
    (16,154
    )
    
    
    (1,983
    )
    
    
    1,057Benefits paid
    
    
    (1,739
    )
    
    
    (1,609
    )
    
    
    (3,490
    )
    
    
    (3,168
    )Curtailment gain
    
    
    (3,189
    )
    
    
    
    
    
    
    (17,444
    )
    
    
    Plan settlements
    
    
    (41,242
    )
    
    
    (18,820
    )
    
    
    
    
    
    
    Benefit obligation, end of year
    
    $
    155,800
    
    
    $
    168,943
    
    
    $
    54,553
    
    
    $
    71,977Change in plan assetsFair value of plan assets, beginning of year
    
    $
    133,950
    
    
    $
    134,431
    
    
    $
    
    
    
    $
    Return (loss) on plan assets
    
    
    (35,133
    )
    
    
    7,197
    
    
    
    
    
    
    
    Employer contributions
    
    
    9,560
    
    
    
    12,751
    
    
    
    3,490
    
    
    
    3,168Benefits paid
    
    
    (1,739
    )
    
    
    (1,609
    )
    
    
    (3,490
    )
    
    
    (3,168
    )Plan settlements
    
    
    (41,242
    )
    
    
    (18,820
    )
    
    
    
    
    
    
    Fair value of plan assets, end of year
    
    $
    65,396
    
    
    $
    133,950
    
    
    $
    
    
    
    $
    Funded status at end of year
    
    $
    (90,404
    )
    
    $
    (34,993
    )
    
    $
    (54,553
    )
    
    $
    (71,977
    )
  Pension Plan
    
    
    Postretirement Plan2008
    
    
    2007
    
    
    2008
    
    
    2007Current liabilities
    
    $
    
    
    
    $
    
    
    
    $
    (5,635
    )
    
    $
    (5,734
    )Non-current liabilities
    
    
    (90,404
    )
    
    
    (34,993
    )
    
    
    (48,918
    )
    
    
    (66,243
    )Net amount recognized
    
    $
    (90,404
    )
    
    $
    (34,993
    )
    
    $
    (54,553
    )
    
    $
    (71,977
    )
  F-37




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##### Table of Contents



Components of Net Periodic Benefit Expense
  Successor Company
    
    
    Predecessor CompanyYear Ended December 31,
    
    Eleven Months Ended
    
    
    One Month Ended2008
    
    2007
    
    December 31, 2006
    
    
    January 31, 2006Service cost
    
    $
    7,069
    
    
    $
    8,225
    
    
    $
    7,605
    
    
    
    $
    708Interest cost
    
    
    10,142
    
    
    
    10,309
    
    
    
    9,866
    
    
    
    
    879Expected return on plan assets
    
    
    (10,270
    )
    
    
    (10,780
    )
    
    
    (10,954
    )
    
    
    
    (1,056
    )Amortization of unrecognized net loss
    
    
    (250
    )
    
    
    
    
    
    
    
    
    
    
    
    (17
    )Settlement loss (gain)
    
    
    3,504
    
    
    
    (1,543
    )
    
    
    (982
    )
    
    
    
    Other adjustments
    
    
    
    
    
    
    (6
    )
    
    
    
    
    
    
    
    Net periodic benefit expense
    
    $
    10,195
    
    
    $
    6,205
    
    
    $
    5,535
    
    
    
    $
    514
  Successor Company
    
    
    Predecessor CompanyYear Ended December 31,
    
    Eleven Months Ended
    
    
    One Month Ended2008
    
    2007
    
    December 31, 2006
    
    
    January 31, 2006Service cost
    
    $
    1,160
    
    
    $
    1,357
    
    
    $
    1,991
    
    
    
    $
    167Interest cost
    
    
    4,333
    
    
    
    3,999
    
    
    
    3,397
    
    
    
    
    308Other adjustments
    
    
    
    
    
    
    (6
    )
    
    
    
    
    
    
    
    Amortization of unrecognized prior service cost
    
    
    (8
    )
    
    
    (8
    )
    
    
    
    
    
    
    
    (39
    )Curtailment gain
    
    
    (20,049
    )
    
    
    
    
    
    
    
    
    
    
    
    Amortization of net gain
    
    
    (37
    )
    
    
    
    
    
    
    
    
    
    
    
    Net periodic benefit expense
    
    $
    (14,601
    )
    
    $
    5,342
    
    
    $
    5,388
    
    
    
    $
    436
  Pension Plan
    
    Postretirement PlanPreviously unrecognized actuarial loss (gain) expected to be recognized in 2009
    
    $
    
    
    
    $
    Previously unrecognized prior service cost (credit) expected to be recognized in 2009
    
    $
    
    
    
    $
    (7
    )
  Pension Plan
    
    Postretirement Plan2008
    
    2007
    
    2008
    
    2007Net actuarial loss (gain)
    
    $
    40,933
    
    
    $
    (13,844
    )
    
    $
    (1,442
    )
    
    $
    (2,095
    )Prior service cost (credit)
    
    $
    
    
    
    $
    
    
    
    $
    (45
    )
    
    $
    (58
    )
 Assumptions
  Year Ended December 31,2008
    
    2007Weighted average discount rate
    
    
    5.87
    %
    
    
    6.48
    %Rate of increase in future
compensation
    
    
    3.66
    %
    
    
    3.66
    %
 F-38




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##### Table of Contents



Year Ended December 31,2008
    
    2007Weighted average discount rate
    
    
    5.87
    %
    
    
    6.48
    %
  Employers Accounting for Settlements and Curtailments of Defined Benefit
Plans and for Termination Benefits .
   Successor Company
    
    
    Predecessor CompanyNovember 1, 2008 -
    
    July 1, 2008 -
    
    January 1, 2008 -
    
    
    
    
    
    July 1, 2006 -
    
    February 1, 2006 -
    
    
    One Month EndedDecember 31, 2008
    
    October 31, 2008
    
    June 30, 2008
    
    2007
    
    December 31, 2006
    
    June 30, 2006
    
    
    January 31, 2006Weighted average
discount rate
    
    
    8.01
    %
    
    
    6.82
    %
    
    
    6.48
    %
    
    
    5.90
    %
    
    
    6.25
    %
    
    
    5.50
    %
    
    
    
    5.75
    %Rate of increase in
future compensation
    
    
    3.66
    %
    
    
    3.66
    %
    
    
    3.66
    %
    
    
    3.66
    %
    
    
    3.66
    %
    
    
    3.66
    %
    
    
    
    4.00
    %Expected return on
plan assets
    
    
    8.50
    %
    
    
    8.50
    %
    
    
    8.50
    %
    
    
    8.50
    %
    
    
    9.00
    %
    
    
    9.00
    %
    
    
    
    9.00
    %
 Employers Accounting for Postretirement
Benefits Other Than Pensions
  Successor Company
    
    
    Predecessor CompanyNovember 1, 2008 -
    
    January 1, 2008 -
    
    
    
    
    
    February 1, 2006 -
    
    
    One Month EndedDecember 31, 2008
    
    October 31, 2008
    
    2007
    
    December 31, 2006
    
    
    January 31, 2006Weighted average
    
    
    8.01
    %
    
    
    6.48
    %
    
    
    5.90
    %
    
    
    5.50
    %
    
    
    
    5.75
    %discount rate
 F-39




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##### Table of Contents



Postretirement Plan2008
    
    2007Healthcare cost trend rate assumed for next yearUnder 65
    
    
    10.00
    %
    
    
    11.00
    %65 and older
    
    
    12.00
    %
    
    
    13.00
    %Rate to which the cost trend rate is assumed to declineUnder 65
    
    
    5.00
    %
    
    
    5.00
    %65 and older
    
    
    5.00
    %
    
    
    5.00
    %Year ultimate trend rate is reached
    
    
    2014
    
    
    
    2016
  Postretirement Plan2008
    
    2007Healthcare cost trend rate assumed for next yearUnder 65
    
    
    10.00
    %
    
    
    9.00
    %65 and older
    
    
    12.00
    %
    
    
    11.00
    %Rate to which the cost trend rate is assumed to declineUnder 65
    
    
    5.00
    %
    
    
    5.00
    %65 and older
    
    
    5.00
    %
    
    
    5.00
    %Year ultimate trend rate is reached
    
    
    2014
    
    
    
    2013
  One Percent ChangeIncrease
    
    DecreaseEffect on the aggregate of the service and interest cost components of net periodic
postretirement benefit cost (Consolidated Statement of Operations)
    
    $
    102
    
    
    $
    (93
    )Effect on accumulated postretirement benefit obligation (Consolidated Balance Sheet)
    
    $
    15
    
    
    $
    (15
    )
 Plan Assets
  Plan Assets at
    
    Asset Allocation
    
    
    Plan Assets at
    
    Asset AllocationDecember 31,
    
    Target
    
    
    December 31,
    
    Target2008
    
    
    2007Equity securities
    
    
    58
    %
    
    
    65
    %
    
    
    
    64
    %
    
    
    65
    %Debt securities
    
    
    42
    %
    
    
    35
    %
    
    
    
    36
    %
    
    
    35
    %Total
    
    
    100
    %
    
    
    100
    %
    
    
    
    100
    %
    
    
    100
    %
   F-40




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##### Table of Contents



Estimated Future Benefit Payments
  Pension Plan
    
    Postretirement Plan2009
    
    $
    26,780
    
    
    $
    5,6352010
    
    
    12,176
    
    
    
    5,6742011
    
    
    12,641
    
    
    
    5,3982012
    
    
    12,918
    
    
    
    5,5182013
    
    
    13,104
    
    
    
    5,523Years 2014-2018
    
    
    68,405
    
    
    
    25,537
  Additional Information
  9. Commitments
  2009
    
    $
    18,0602010
    
    
    17,7322011
    
    
    16,3012012
    
    
    15,9352013
    
    
    14,911Thereafter
    
    
    73,206Total
    
    $
    156,145
  F-41




---



##### Table of Contents



10. Legal Proceedings
     11. Business Segments
  12. Related Party Transactions and Allocations
   F-42




---



##### Table of Contents



13. Valuation and Qualifying Accounts
 Net AdditionsBalance at
    
    Charged To
    
    Write-offs
    
    Balance atBeginning of
    
    Revenue
    
    Other and
    
    End of(in thousands
    
    Period
    
    and Expense
    
    Deductions
    
    PeriodAllowance for Doubtful Accounts and Sales ClaimsFor the year ended December 31, 2008
    
    $
    21,816
    
    
    
    117,153
    
    
    
    (104,803
    )
    
    $
    34,166For the year ended December 31, 2007
    
    $
    17,476
    
    
    
    85,536
    
    
    
    (81,196
    )
    
    $
    21,816For the eleven months ended December 31, 2006
    
    $
    57,500
    
    
    
    68,144
    
    
    
    (108,168
    )
    
    $
    17,476Deferred Income Tax Asset Valuation AllowanceFor the year ended December 31, 2008
    
    $
    596
    
    
    
    
    
    
    
    (336
    )
    
    $
    260For the year ended December 31, 2007
    
    $
    
    
    
    
    596
    
    
    
    
    
    
    $
    596
 14. Subsequent Events
  Form 10-Q
 F-43




---



##### Table of Contents



PART IV
 
 SIGNATURES
  DEX MEDIA, INC.By:
    /s/ Steven M. BlondySteven M. BlondyExecutive Vice President,
Chief Financial Officer and Director
(Principal Financial Officer)   /s/ David C. Swanson

(David C. Swanson)
    
    Chairman of the Board of Directors

and Chief Executive Officer
(Principal Executive Officer)
    
    December 11, 2009/s/ Steven M. Blondy

(Steven M. Blondy)
    
    Executive Vice President, 
Chief Financial Officer and Director
(Principal Financial Officer)
    
    December 11, 2009/s/
Sylvester J. Johnson
(Sylvester J. Johnson)
    
    Vice President  Corporate
Controller and
Chief Accounting Officer
(Principal Accounting Officer)
    
    December 11, 2009/s/ Jenny L. Apker
(Jenny
L. Apker)
    
    Director
    
    December 11, 2009
 1




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##### Table of Contents



Exhibit Index
 Exhibit No.
    
    Document31.1*
    
    Certification of Annual Report on
Form 10-K/A for the period
ended December 31, 2008 by David C. Swanson, Chairman and
Chief Executive Officer of Dex Media, Inc. under Section 302
of the Sarbanes Oxley Act.31.2*
    
    Certification of Annual Report on
Form 10-K/A for the period
ended December 31, 2008 by Steven M. Blondy, Executive Vice
President, Chief Financial Officer and Director of Dex Media,
Inc. under Section 302 of the Sarbanes Oxley Act.32.1*
    
    Certification of Annual Report on
Form 10-K/A for the period
ended December 31, 2008 under Section 906 of the Sarbanes
Oxley Act by David C. Swanson, Chairman and Chief Executive
Officer, and Steven M. Blondy, Executive Vice President, Chief
Financial Officer and Director of Dex Media, Inc.
 
 *
    
    Filed herewith 2