Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting

4. Segment Reporting

Con-way discloses segment information in the manner in which the business units are organized for making operating decisions, assessing performance and allocating resources. For the periods presented, Con-way is divided into the following four reporting segments:

· Freight. The Freight segment consists of the operating results of the Con-way Freight business unit, which provides regional, inter-regional and transcontinental less-than-truckload freight services throughout North America.

· Logistics. The Logistics segment consists of the operating results of the Menlo Worldwide Logistics business unit, which develops contract-logistics solutions, including the management of complex distribution networks and supply-chain engineering and consulting, and also provides multimodal freight brokerage services.

· Truckload. The Truckload segment consists of the operating results of the Con-way Truckload business unit, which provides asset-based full-truckload freight services throughout North America.

· Other. The Other reporting segment consists of the operating results of Road Systems, a trailer manufacturer, and certain corporate activities for which the related income or expense has not been allocated to other reporting segments.

Financial Data

Management evaluates segment performance primarily based on revenue and operating income (loss). Accordingly, investment income, interest expense, and other non-operating items are not reported in segment results. Corporate expenses are generally allocated based on measurable services provided to each segment, or for general corporate expenses, based on segment revenue. Inter-segment revenue and related operating income (loss) have been eliminated to reconcile to consolidated revenue and operating income (loss). Transactions between segments are generally based on negotiated prices.

(Dollars in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Revenues before Inter-segment Eliminations
Freight	$	839,829		$	816,965		$	1,607,570		$	1,541,968
Logistics		394,012			385,775			763,987			740,958
Truckload		155,451			145,454			300,666			286,070
Other		12,297			14,019			24,294			25,858
Inter-segment Revenue Eliminations		(53,040	)		(55,950	)		(102,341	)		(126,680	)
	$	1,348,549		$	1,306,263		$	2,594,176		$	2,468,174
Inter-segment Revenue Eliminations
Freight	$	12,435		$	12,934		$	23,726		$	25,382
Logistics		8,644			5,360			14,805			8,530
Truckload		21,524			25,676			42,370			69,786
Other		10,437			11,980			21,440			22,982
	$	53,040		$	55,950		$	102,341		$	126,680
Revenues from External Customers
Freight	$	827,394		$	804,031		$	1,583,844		$	1,516,586
Logistics		385,368			380,415			749,182			732,428
Truckload		133,927			119,778			258,296			216,284
Other		1,860			2,039			2,854			2,876
	$	1,348,549		$	1,306,263		$	2,594,176		$	2,468,174
Operating Income (Loss)
Freight	$	39,155		$	17,226		$	59,499		$	14,073
Logistics		12,095			13,008			20,741			25,864
Truckload		10,323			5,132			17,406			8,107
Other		(1,408	)		66			(785	)		1,788
	$	60,165		$	35,432		$	96,861		$	49,832