Segment Reporting

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

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 three 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.

In prior periods, the Other reporting segment consisted of the operating results of Con-way's trailer manufacturer and certain corporate activities for which the related income or expense was not allocated to other reporting segments. Beginning in the first quarter of 2013, the former Other segment is reported as Corporate and Eliminations in order to reconcile the segment results to the consolidated totals. All periods presented reflect this change to the reporting segment structure.

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. Beginning in the first quarter of 2013, defined benefit pension plan costs are no longer allocated from Corporate to the reporting segments. The amount of defined benefit pension cost retained in Corporate and Eliminations was $0.7 million and $2.2 million in the third quarter and first nine months of 2013, respectively. For the same periods of 2012, the amount of defined benefit pension cost allocated from Corporate to the three reporting segments was $2.4 million and $7.2 million, respectively. Inter-segment revenue and related operating income (loss) have been eliminated to reconcile to consolidated revenue and operating income. Transactions between segments are generally based on negotiated prices.

(Dollars in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013		2012
Revenues from External Customers
Freight	$	888,508		$	846,280		$	2,587,468	$	2,529,979
Logistics	362,830			415,165			1,095,086		1,260,173
Truckload	144,583			141,592			427,422		423,064
Corporate and Eliminations	2,100			1,076			5,579		3,154
	$	1,398,021		$	1,404,113		$	4,115,555	$	4,216,370
Revenues from Internal Customers
Freight	$	10,746		$	11,996		$	31,597	$	37,868
Logistics	17,719			12,625			48,198		34,792
Truckload	17,596			18,502			53,564		57,273
Corporate and Eliminations	18,410			14,153			49,455		41,002
	$	64,471		$	57,276		$	182,814	$	170,935
Operating Income (Loss)
Freight	$	51,570		$	34,441		122,283		122,372
Logistics	8,178			10,990			20,749		35,972
Truckload	8,971			11,273			29,799		36,442
Corporate and Eliminations	(1,044		)	(1,491		)	2,742		(3,740		)
	$	67,675		$	55,213		$	175,573	$	191,046