Employee Benefit Plans

6 Months Ended

Jun. 30, 2012

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

In the periods presented, employees of Con-way and its subsidiaries in the U.S. were covered under several retirement benefit plans, including defined benefit pension plans, defined contribution retirement plans and a postretirement medical plan. See Note 10, “Employee Benefit Plans,” of Item 8, “Financial Statements and Supplementary Data,” in Con-way’s 2011 Annual Report on Form 10-K for additional information concerning its employee benefit plans, including changes to its defined contribution retirement plans.

Defined Benefit Pension Plans

As a result of plan amendments in previous years, no additional benefits accrue under these plans and already-accrued benefits will not be adjusted for future increases in compensation. The following table summarizes the components of net periodic benefit expense (income) for Con-way’s domestic defined benefit pension plans:

	Qualified Pension Plans
	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2012			2011			2012			2011
Interest cost on benefit obligation	$	17,582		$	17,685		$	35,084		$	35,655
Expected return on plan assets	(21,095		)	(21,426		)	(42,206		)	(42,968		)
Amortization of net loss	4,893			2,534			9,723			5,273
Net periodic benefit expense (income)	$	1,380		$	(1,207	)	$	2,601		$	(2,040	)
	Non-Qualified Pension Plans
	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2012			2011			2012			2011
Interest cost on benefit obligation	$	863		$	957		$	1,719		$	1,894
Amortization of net loss	242			182			523			339
Net periodic benefit expense	$	1,105		$	1,139		$	2,242		$	2,233

Con-way expects to contribute $51.4 million to its Qualified Pension Plans in 2012. Through June 30, 2012, Con-way contributed $11.9 million and in July 2012, contributed $31.1 million to its Qualified Pension Plans. Con-way's estimate of its 2012 contributions is subject to change based on variations in interest rates, asset returns, Pension Protection Act ("PPA") requirements and other factors. In July 2012, the Moving Ahead for Progress in the 21st Century Act (“MAP-21”) became law. Among other things, this legislation alters how PPA minimum funding requirements are determined. For 2012, MAP-21 reduced Con-way's PPA minimum funding requirements for its defined benefit pension plans; however, Con-way does not expect to change its 2012 planned contributions.

Defined Contribution Retirement Plans

Con-way’s expense for the defined contribution retirement plans was $12.7 million and $25.6 million in the second quarter and first six months of 2012, respectively, compared to $8.8 million and $17.8 million in the same periods of 2011. In the periods presented, Con-way’s contributions included cash and Con-way common stock. From January 2009 through June 2011, the common stock contributions were made with repurchased common stock (also referred to as treasury stock). In the first six months of 2011, Con-way used 461,151 shares of treasury stock to fund $17.3 million of contributions. Effective in July 2011, Con-way’s contributions were in the form of cash, rather than in treasury stock.

Postretirement Medical Plan

The following table summarizes the components of net periodic benefit expense for the postretirement medical plan:

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2012			2011			2012			2011
Service cost	$	417		$	316		$	840		$	721
Interest cost on benefit obligation	1,138			1,125			2,159			2,246
Amortization of prior service credit	(301		)	(303		)	(603		)	(606		)
Net periodic benefit expense	$	1,254		$	1,138		$	2,396		$	2,361