Restructuring Activities

9 Months Ended

Sep. 30, 2011

Restructuring Activities [Abstract]

Restructuring Activities

3. Restructuring Activities

As more fully discussed below, Con-way recognized restructuring charges of $0.1 million and $1.8 million in the third quarter and first nine months of 2011, respectively, and expects to recognize $0.3 million of additional expense in the last three months of 2011. In the third quarter and first nine months of 2010, Con-way recognized restructuring charges of $2.4 million and $3.8 million, respectively. Con-way reported the employee-separation costs in salaries, wages and employee benefits and all other costs in other operating expenses. Con-way's remaining liability for amounts expensed but not yet paid was $0.1 million at September 30, 2011. The remaining liability relates to employee-separation costs that are expected to be paid through 2011.

Outsourcing Initiative

In 2009, as part of an ongoing effort to reduce costs and improve efficiencies, Con-way initiated a project to outsource a significant portion of its information-technology infrastructure function and a small portion of its administrative and accounting functions. Con-way does not expect to incur additional restructuring charges for the outsourcing initiative. There was not a remaining liability at September 30, 2011.

Consolidation of Executive Offices

In the third quarter of 2010, in an effort to more closely align corporate functions and better support the business, Con-way initiated a project to consolidate its executive offices located in San Mateo, California and Ann Arbor, Michigan. The consolidation was substantially completed in the second quarter of 2011 when the executive office in San Mateo closed. The remaining liability and expenses are expected to be settled in 2011.

The following table summarizes the effect of the initiative:

(Dollars in thousands)	Employee-Separation Costs			Relocation and Other Costs			Total
Balance at December 31, 2010	$	2,496		$	--		$	2,496
2011 charges		1,054			774			1,828
Cash payments		(3,493	)		(774	)		(4,267	)
Balance at September 30, 2011	$	57		$	--		$	57
Total expense recognized to date	$	3,550		$	774		$	4,324
Expected remaining expenses	$	--		$	276		$	276