Share-Based Compensation

9 Months Ended

Sep. 30, 2011

Share-Based Compensation [Abstract]

Share-Based Compensation

8. Share-Based Compensation

Under terms of its share-based compensation plans, Con-way grants various types of share-based compensation awards to employees and directors. The plans provide for awards in the form of stock options, nonvested stock (also known as restricted stock), performance-share plan units and stock appreciation rights ("SARs"). See Note 12, "Share-Based Compensation," of Item 8, "Financial Statements and Supplementary Data," in Con-way's 2010 Annual Report on Form 10-K for additional information concerning its share-based compensation awards.

The following expense was recognized for share-based compensation:

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2011			2010			2011			2010
Salaries, wages and employee benefits	$	316		$	4,224		$	9,485		$	11,119
Deferred income tax benefit		(89	)		(1,632	)		(3,665	)		(4,289	)
Net share-based compensation expense	$	227		$	2,592		$	5,820		$	6,830

The SARs are liability-classified awards and, as a result, Con-way re-measures the fair value of the awards each reporting period until the awards are settled. The decline in share-based compensation expense for 2011 reflects a decline in the fair value per SAR. At September 30, 2011 and December 31, 2010, Con-way had recognized accrued liabilities for cash-settled SARs of $1.7 million and $2.9 million, respectively, using a fair value per SAR of $6.11 and $16.41, respectively.