Employee Benefits

Pension Benefits

The Company provides pension benefits to certain of its employees. The Company's pension plans are non-contributory defined benefit pension plans. The pension plans include the Dex One Retirement Account, the Dex Media, Inc. Pension Plan, the SuperMedia Pension Plan for Management Employees and the SuperMedia Pension Plan for Collectively Bargained Employees. The Company also maintains two non-qualified pension plans for certain executives, the Dex One Pension Benefit Equalization Plan and the SuperMedia Excess Pension Plan. Pension assets related to the Company's qualified pension plans, which are held in master trusts and recorded on the Company's consolidated balance sheet, are valued in accordance with applicable accounting guidance on fair value measurements. On January 25, 2014, the Company reached an agreement with the Communications Workers of America ("CWA") locals 1301 and 1302 to freeze the SuperMedia Pension Plan for Collectively Bargained Employees. Accordingly, effective April 1, 2014, no employees accrue future pension benefits under any of the pension plans.

Net Periodic Cost

The following table sets forth the benefit cost (income) related to the Company's pension plans for the three and nine months ended September 30, 2014 and 2013.



	Pension Benefit Cost (Income)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in millions)
Service cost	$	1		$	1		$	1		$	1
Interest cost	7			7			21			15
Expected return on plan assets	(10		)	(11		)	(28		)	(22		)
Amortization of net loss	—			1			—			2
Settlement losses	—			—			1			—
Net periodic cost (income)	$	(2	)	$	(2	)	$	(5	)	$	(4	)

The Company made cash contributions to its qualified pension plans of $3 million and $6 million during the three and nine months ended September 30, 2014 compared to $1 million and $3 million during the three and nine months ended September 30, 2013. We expect to make total contributions of approximately $7 million to our qualified pension plans in 2014.

Other Post-Employment Benefits

Prior to January 25, 2014, the Company's other post-employment benefits included post-employment health care and life insurance plans for certain of the Company's retirees. On January 25, 2014, the Company enacted plan amendments to its OPEB plans, and reached an agreement with the CWA locals 1301 and 1302 to eliminate the Company's obligation as of April 1, 2014. As a result of these plan amendments, the Company recorded a credit of $13 million to general and administrative expense in its consolidated statement of comprehensive (loss) during the nine months ended September 30, 2014.

During the nine months ended September 30, 2013, the Company recorded $1 million of expense associated with other post-employment benefits.

Employee Benefits - Long-Term Disability

During the three and nine months ended September 30, 2014, the Company recorded a $29 million credit to expense associated with plan amendments that reduced benefits associated with the Company's long-term disability plans.

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 One 401(k) Savings Plan, (on January 1, 2014, the Dex Media Inc. Employee Savings Plan was merged into the Dex One 401(k) Savings Plan), the Dex One Restoration Plan, the Dex Media, Inc. Employee Savings Plan and the SuperMedia Savings Plan. Substantially all of the Company's employees are eligible to participate in the plans. Participant contributions may be made on a pre-tax or after-tax 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 $9 million for the three and nine months ended September 30, 2014 compared to $3 million and $9 million during the three and nine months ended September 30, 2013, respectively. There is no savings plan expense related to SuperMedia recorded during the four months ended April 30, 2013, as the merger with SuperMedia was effective April 30, 2013.