Delaware | 94-1444798 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
2211 Old Earhart Road, Suite 100, Ann Arbor, MI | 48105 |
(Address of principal executive offices) | (Zip Code) |
Table of Contents | |||
Item | Page | ||
PART 1. FINANCIAL INFORMATION | |||
1. | Financial Statements | ||
Consolidated Balance Sheets - March 31, 2015 and December 31, 2014 | |||
Statements of Consolidated Income - Three Months Ended March 31, 2015 and 2014 | |||
Statements of Consolidated Comprehensive Income - Three Months Ended March 31, 2015 and 2014 | |||
Statements of Consolidated Cash Flows - Three Months Ended March 31, 2015 and 2014 | |||
Notes to Consolidated Financial Statements | |||
2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
3. | Quantitative and Qualitative Disclosures About Market Risk | ||
4. | Controls and Procedures | ||
PART II. OTHER INFORMATION | |||
1. | Legal Proceedings | ||
1A. | Risk Factors | ||
2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
6. | Exhibits | ||
Signatures |
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
(Dollars in thousands) | (Unaudited) | ||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 432,365 | $ | 432,759 | |||
Marketable securities | 8,285 | 8,285 | |||||
Trade accounts receivable, net | 690,515 | 649,086 | |||||
Other accounts receivable | 51,752 | 70,305 | |||||
Operating supplies, at lower of average cost or market | 21,681 | 23,664 | |||||
Prepaid expenses and other current assets | 74,903 | 63,344 | |||||
Deferred income taxes | 13,901 | 13,957 | |||||
Total Current Assets | 1,293,402 | 1,261,400 | |||||
Property, Plant and Equipment | |||||||
Land | 192,490 | 192,490 | |||||
Buildings and leasehold improvements | 857,767 | 856,037 | |||||
Revenue equipment | 1,921,101 | 1,902,358 | |||||
Other equipment | 356,580 | 362,341 | |||||
3,327,938 | 3,313,226 | ||||||
Accumulated depreciation | (1,681,521 | ) | (1,659,015 | ) | |||
Net Property, Plant and Equipment | 1,646,417 | 1,654,211 | |||||
Other Assets | |||||||
Deferred charges and other assets | 32,245 | 31,826 | |||||
Capitalized software, net | 28,485 | 26,208 | |||||
Employee benefits | 18,392 | 18,110 | |||||
Intangible assets, net | 5,695 | 6,284 | |||||
Goodwill | 337,336 | 337,579 | |||||
422,153 | 420,007 | ||||||
Total Assets | $ | 3,361,972 | $ | 3,335,618 |
1 |
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
(Dollars in thousands, except per share data) | (Unaudited) | ||||||
Liabilities and Shareholders' Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 405,471 | $ | 349,995 | |||
Accrued liabilities | 250,512 | 257,943 | |||||
Federal and other income taxes | 966 | — | |||||
Self-insurance accruals | 111,961 | 117,783 | |||||
Short-term borrowings | 1,862 | 1,736 | |||||
Current maturities of capital leases | 13,298 | 14,663 | |||||
Total Current Liabilities | 784,070 | 742,120 | |||||
Long-Term Liabilities | |||||||
Long-term debt | 719,342 | 719,303 | |||||
Long-term obligations under capital leases | 9,765 | 10,587 | |||||
Self-insurance accruals | 147,381 | 151,257 | |||||
Employee benefits | 231,363 | 239,368 | |||||
Other liabilities and deferred credits | 33,235 | 34,356 | |||||
Deferred income taxes | 244,527 | 242,789 | |||||
Total Liabilities | 2,169,683 | 2,139,780 | |||||
Commitments and Contingencies (Note 9) | |||||||
Shareholders' Equity | |||||||
Common stock ($0.625 par value; authorized 100,000,000 shares; issued 66,303,416 and 65,782,041 shares, respectively) | 41,427 | 41,101 | |||||
Additional paid-in capital, common stock | 715,594 | 706,756 | |||||
Retained earnings | 1,164,938 | 1,151,791 | |||||
Cost of repurchased common stock (8,673,724 and 8,112,141 shares, respectively) | (374,138 | ) | (349,401 | ) | |||
Accumulated other comprehensive loss | (355,532 | ) | (354,409 | ) | |||
Total Shareholders' Equity | 1,192,289 | 1,195,838 | |||||
Total Liabilities and Shareholders' Equity | $ | 3,361,972 | $ | 3,335,618 |
2 |
Three Months Ended | |||||||
March 31, | |||||||
(Dollars in thousands, except per share data) | 2015 | 2014 | |||||
Revenue | $ | 1,372,431 | $ | 1,368,843 | |||
Costs and Expenses | |||||||
Salaries, wages and employee benefits | 564,307 | 537,252 | |||||
Purchased transportation | 331,934 | 332,985 | |||||
Other operating expenses | 167,105 | 162,236 | |||||
Fuel and fuel-related taxes | 86,903 | 136,702 | |||||
Depreciation and amortization | 59,963 | 59,611 | |||||
Purchased labor | 40,510 | 42,220 | |||||
Rents and leases | 35,927 | 33,959 | |||||
Maintenance | 33,855 | 30,816 | |||||
1,320,504 | 1,335,781 | ||||||
Operating Income | 51,927 | 33,062 | |||||
Other Income (Expense) | |||||||
Investment income | 165 | 161 | |||||
Interest expense | (13,277 | ) | (13,306 | ) | |||
Miscellaneous, net | (2,420 | ) | (695 | ) | |||
(15,532 | ) | (13,840 | ) | ||||
Income before Income Tax Provision | 36,395 | 19,222 | |||||
Income Tax Provision | 14,603 | 6,329 | |||||
Net Income | $ | 21,792 | $ | 12,893 | |||
Weighted-Average Common Shares Outstanding | |||||||
Basic | 57,634,382 | 56,957,433 | |||||
Diluted | 58,222,166 | 57,540,068 | |||||
Earnings per Common Share | |||||||
Basic | $ | 0.38 | $ | 0.23 | |||
Diluted | $ | 0.37 | $ | 0.22 | |||
Cash Dividends Declared per Common Share | $ | 0.15 | $ | 0.10 |
3 |
Three Months Ended | |||||||
March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Net Income | $ | 21,792 | $ | 12,893 | |||
Other Comprehensive Income (Loss): | |||||||
Foreign currency translation adjustment | (3,064 | ) | 122 | ||||
Employee benefit plans | |||||||
Amortization of net actuarial loss included in net periodic benefit expense or income, net of deferred tax of $1,285 and $794, respectively | 2,069 | 1,243 | |||||
Amortization of prior-service credit included in net periodic benefit expense or income, net of deferred tax of $80 and $122, respectively | (128 | ) | (189 | ) | |||
1,941 | 1,054 | ||||||
Total Other Comprehensive Income (Loss) | (1,123 | ) | 1,176 | ||||
Comprehensive Income | $ | 20,669 | $ | 14,069 |
4 |
Three Months Ended | |||||||
March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Cash and Cash Equivalents, Beginning of Period | $ | 432,759 | $ | 484,502 | |||
Operating Activities | |||||||
Net income | 21,792 | 12,893 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization, net of accretion | 60,048 | 59,409 | |||||
Non-cash compensation and employee benefits | 8,996 | 4,761 | |||||
Increase in deferred income taxes | 648 | 1,709 | |||||
Provision for uncollectible accounts | 344 | 439 | |||||
Loss (gain) from sales of property and equipment, net | 643 | (1,211 | ) | ||||
Changes in assets and liabilities: | |||||||
Receivables | (41,820 | ) | (87,887 | ) | |||
Prepaid expenses | (11,236 | ) | (18,051 | ) | |||
Accounts payable | 47,497 | 34,843 | |||||
Accrued variable compensation | (44,931 | ) | (26,787 | ) | |||
Accrued liabilities, excluding accrued variable compensation and employee benefits | 39,008 | 35,301 | |||||
Self-insurance accruals | (12,256 | ) | 13,546 | ||||
Accrued income taxes | 21,843 | 1,608 | |||||
Employee benefits | (10,419 | ) | (33,860 | ) | |||
Other | (11,281 | ) | (1,256 | ) | |||
Net Cash Provided by (Used in) Operating Activities | 68,876 | (4,543 | ) | ||||
Investing Activities | |||||||
Capital expenditures | (44,945 | ) | (70,478 | ) | |||
Software expenditures | (4,018 | ) | (2,637 | ) | |||
Proceeds from sales of property and equipment | 3,025 | 5,842 | |||||
Net Cash Used in Investing Activities | (45,938 | ) | (67,273 | ) | |||
Financing Activities | |||||||
Payment of capital leases | (2,187 | ) | (2,866 | ) | |||
Net proceeds from short-term borrowings | 121 | 286 | |||||
Proceeds from exercise of stock options | 559 | 824 | |||||
Excess tax benefit from share-based compensation | 2,775 | 505 | |||||
Payments of common dividends | (8,645 | ) | (5,703 | ) | |||
Repurchases of common stock | (15,955 | ) | — | ||||
Net Cash Used in Financing Activities | (23,332 | ) | (6,954 | ) | |||
Decrease in Cash and Cash Equivalents | (394 | ) | (78,770 | ) | |||
Cash and Cash Equivalents, End of Period | $ | 432,365 | $ | 405,732 | |||
Supplemental Disclosure | |||||||
Cash paid (refunded) for income taxes, net | $ | (11,140 | ) | $ | 2,554 | ||
Cash paid for interest | $ | 15,686 | $ | 15,735 | |||
Non-cash Investing and Financing Activities | |||||||
Property, plant and equipment acquired through increase in current liabilities | $ | 11,705 | $ | — | |||
Repurchases of common stock included in current liabilities | $ | 1,323 | $ | — | |||
Property, plant and equipment acquired through partial non-monetary exchanges | $ | — | $ | 2,518 | |||
Property, plant and equipment acquired through capital lease | $ | — | $ | 3,810 |
5 |
Three Months Ended March 31, | |||||||
(Dollars in thousands, except per share data) | 2015 | 2014 | |||||
Numerator: | |||||||
Net income | $ | 21,792 | $ | 12,893 | |||
Denominator: | |||||||
Weighted-average common shares outstanding - Basic | 57,634,382 | 56,957,433 | |||||
Stock options and nonvested stock | 587,784 | 582,635 | |||||
Weighted-average common shares outstanding - Diluted | 58,222,166 | 57,540,068 | |||||
Diluted EPS | $ | 0.37 | $ | 0.22 | |||
Anti-dilutive stock options excluded from the calculation of diluted EPS | 287,050 | 899,241 |
6 |
(Dollars in thousands) | Logistics | Truckload | Corporate and Eliminations | Total | |||||||||||
Goodwill | $ | 55,695 | $ | 464,598 | $ | 727 | $ | 521,020 | |||||||
Accumulated impairment losses | (48,236 | ) | (134,813 | ) | — | (183,049 | ) | ||||||||
Balances at December 31, 2013 | 7,459 | 329,785 | 727 | 337,971 | |||||||||||
Change in foreign currency exchange rates | (392 | ) | — | — | (392 | ) | |||||||||
Goodwill | 55,303 | 464,598 | 727 | 520,628 | |||||||||||
Accumulated impairment losses | (48,236 | ) | (134,813 | ) | — | (183,049 | ) | ||||||||
Balances at December 31, 2014 | 7,067 | 329,785 | 727 | 337,579 | |||||||||||
Change in foreign currency exchange rates | (243 | ) | — | — | (243 | ) | |||||||||
Goodwill | 55,060 | 464,598 | 727 | 520,385 | |||||||||||
Accumulated impairment losses | (48,236 | ) | (134,813 | ) | — | (183,049 | ) | ||||||||
Balances at March 31, 2015 | $ | 6,824 | $ | 329,785 | $ | 727 | $ | 337,336 |
March 31, 2015 | December 31, 2014 | ||||||||||||||
(Dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||
Customer relationships | $ | 23,088 | $ | 17,393 | $ | 23,088 | $ | 16,804 |
(Dollars in thousands) | |||
Remaining nine months of 2015 | $ | 1,767 | |
2016 | 2,356 | ||
2017 | 1,572 |
7 |
• | 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 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. |
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Revenue from External Customers | |||||||
Freight | $ | 846,634 | $ | 836,329 | |||
Logistics | 398,179 | 389,372 | |||||
Truckload | 125,767 | 140,597 | |||||
Corporate and Eliminations | 1,851 | 2,545 | |||||
$ | 1,372,431 | $ | 1,368,843 | ||||
Revenue from Internal Customers | |||||||
Freight | $ | 8,978 | $ | 11,698 | |||
Logistics | 18,891 | 16,993 | |||||
Truckload | 12,958 | 15,413 | |||||
Corporate and Eliminations | 18,290 | 14,390 | |||||
$ | 59,117 | $ | 58,494 | ||||
Operating Income (Loss) | |||||||
Freight | $ | 37,376 | $ | 18,565 | |||
Logistics | 8,616 | 6,174 | |||||
Truckload | 7,561 | 6,380 | |||||
Corporate and Eliminations | (1,626 | ) | 1,943 | ||||
$ | 51,927 | $ | 33,062 |
8 |
March 31, 2015 | |||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Cash equivalents | $ | 375,586 | $ | 63,092 | $ | 312,494 | $ | — | |||||||
Marketable securities | $ | 8,285 | $ | — | $ | 8,285 | $ | — |
December 31, 2014 | |||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Cash equivalents | $ | 385,548 | $ | 63,092 | $ | 322,456 | $ | — | |||||||
Marketable securities | $ | 8,285 | $ | — | $ | 8,285 | $ | — |
(Dollars in thousands) | Foreign Currency Translation Adjustment | Employee Benefit Plans | Total | ||||||||
Balances at December 31, 2014 | $ | (3,155 | ) | $ | (351,254 | ) | $ | (354,409 | ) | ||
Other comprehensive loss before reclassifications | (3,064 | ) | — | (3,064 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1,941 | 1,941 | ||||||||
Balances at March 31, 2015 | $ | (6,219 | ) | $ | (349,313 | ) | $ | (355,532 | ) |
(Dollars in thousands) | Foreign Currency Translation Adjustment | Employee Benefit Plans | Total | ||||||||
Balances at December 31, 2013 | $ | (424 | ) | $ | (269,107 | ) | $ | (269,531 | ) | ||
Other comprehensive income before reclassifications | 122 | — | 122 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1,054 | 1,054 | ||||||||
Balances at March 31, 2014 | $ | (302 | ) | $ | (268,053 | ) | $ | (268,355 | ) |
9 |
Qualified Pension Plans | |||||||
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Interest cost on benefit obligation | $ | 18,181 | $ | 18,871 | |||
Expected return on plan assets | (21,740 | ) | (23,327 | ) | |||
Amortization of actuarial loss | 3,123 | 2,475 | |||||
Amortization of prior-service costs | 405 | 404 | |||||
Settlement loss | 60 | — | |||||
Net periodic benefit expense (income) | $ | 29 | $ | (1,577 | ) |
Non-Qualified Pension Plan | |||||||
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Interest cost on benefit obligation | $ | 796 | $ | 862 | |||
Amortization of actuarial loss | 296 | 219 | |||||
Amortization of prior-service costs | 1 | 1 | |||||
Net periodic benefit expense | $ | 1,093 | $ | 1,082 |
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Service cost | $ | 293 | $ | 271 | |||
Interest cost on benefit obligation | 645 | 672 | |||||
Amortization of actuarial gain | (65 | ) | (657 | ) | |||
Amortization of prior-service credit | (614 | ) | (716 | ) | |||
Net periodic benefit expense (income) | $ | 259 | $ | (430 | ) |
10 |
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Salaries, wages and employee benefits | $ | 5,286 | $ | 3,330 | |||
Deferred income tax benefit | (2,025 | ) | (1,299 | ) | |||
Net share-based compensation expense | $ | 3,261 | $ | 2,031 |
11 |
12 |
13 |
Three Months Ended March 31, | |||||||
(Dollars in thousands, except per share data) | 2015 | 2014 | |||||
Revenue | $ | 1,372,431 | $ | 1,368,843 | |||
Operating expenses | 1,320,504 | 1,335,781 | |||||
Operating income | 51,927 | 33,062 | |||||
Other income (expense) | (15,532 | ) | (13,840 | ) | |||
Income before income tax provision | 36,395 | 19,222 | |||||
Income tax provision | 14,603 | 6,329 | |||||
Net income | $ | 21,792 | $ | 12,893 | |||
Diluted earnings per common share | $ | 0.37 | $ | 0.22 |
14 |
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Revenue before inter-segment eliminations | $ | 855,612 | $ | 848,027 | |||
Salaries, wages and employee benefits | 415,073 | 392,371 | |||||
Purchased transportation | 130,315 | 138,574 | |||||
Other operating expenses | 126,076 | 121,615 | |||||
Fuel and fuel-related taxes | 62,470 | 95,080 | |||||
Depreciation and amortization | 37,276 | 36,670 | |||||
Purchased labor | 8,372 | 11,450 | |||||
Rents and leases | 12,857 | 11,312 | |||||
Maintenance | 25,797 | 22,390 | |||||
Total operating expenses | 818,236 | 829,462 | |||||
Operating income | $ | 37,376 | $ | 18,565 | |||
Operating margin | 4.4 | % | 2.2 | % |
2015 vs. 2014 | ||||||||
Selected Operating Statistics | ||||||||
Weight per day | -1.4 | % | ||||||
Revenue per hundredweight ("yield") | +3.6 | % | ||||||
Shipments per day | +0.9 | % | ||||||
Weight per shipment | -2.3 | % |
15 |
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Revenue before inter-segment eliminations | $ | 417,070 | $ | 406,365 | |||
Purchased transportation | (226,915 | ) | (223,875 | ) | |||
Net revenue | 190,155 | 182,490 | |||||
Salaries, wages and employee benefits | 73,035 | 70,615 | |||||
Other operating expenses | 51,332 | 50,709 | |||||
Fuel and fuel-related taxes | 247 | 293 | |||||
Depreciation and amortization | 3,161 | 2,838 | |||||
Purchased labor | 30,138 | 28,830 | |||||
Rents and leases | 22,800 | 22,160 | |||||
Maintenance | 826 | 871 | |||||
Total operating expenses excluding purchased transportation | 181,539 | 176,316 | |||||
Operating income | $ | 8,616 | $ | 6,174 | |||
Operating margin on revenue | 2.1 | % | 1.5 | % | |||
Operating margin on net revenue | 4.5 | % | 3.4 | % |
16 |
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Freight revenue | $ | 112,217 | $ | 115,413 | |||
Fuel-surcharge revenue | 20,948 | 34,922 | |||||
Other revenue | 5,560 | 5,675 | |||||
Revenue before inter-segment eliminations | 138,725 | 156,010 | |||||
Salaries, wages and employee benefits | 49,565 | 50,279 | |||||
Purchased transportation | 15,232 | 14,371 | |||||
Other operating expenses | 15,675 | 17,094 | |||||
Fuel and fuel-related taxes | 24,170 | 41,300 | |||||
Depreciation and amortization | 17,125 | 17,150 | |||||
Purchased labor | 203 | 281 | |||||
Rents and leases | 328 | 409 | |||||
Maintenance | 8,866 | 8,746 | |||||
Total operating expenses | 131,164 | 149,630 | |||||
Operating income | $ | 7,561 | $ | 6,380 | |||
Operating margin on revenue | 5.5 | % | 4.1 | % | |||
Operating margin on revenue excluding fuel-surcharge revenue | 6.4 | % | 5.3 | % |
2015 vs. 2014 | ||||||||
Selected Operating Statistics | ||||||||
Freight revenue per loaded mile | +2.7 | % | ||||||
Loaded miles | -5.3 | % |
17 |
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Revenue before inter-segment eliminations | |||||||
Trailer manufacturing | $ | 20,141 | $ | 16,935 | |||
Operating income (loss) | |||||||
Reinsurance activities | 202 | 1,887 | |||||
Trailer manufacturing | (60 | ) | (27 | ) | |||
Corporate properties and other corporate costs | (646 | ) | (412 | ) | |||
Defined benefit pension income (expense) | (1,122 | ) | 495 | ||||
$ | (1,626 | ) | $ | 1,943 |
18 |
Three Months Ended March 31, | |||||||
(Dollars in thousands) | 2015 | 2014 | |||||
Operating Activities | |||||||
Net income | $ | 21,792 | $ | 12,893 | |||
Non-cash adjustments 1 | 70,679 | 65,107 | |||||
Changes in assets and liabilities | (23,595 | ) | (82,543 | ) | |||
Net Cash Provided by (Used in) Operating Activities | 68,876 | (4,543 | ) | ||||
Net Cash Used in Investing Activities | (45,938 | ) | (67,273 | ) | |||
Net Cash Used in Financing Activities | (23,332 | ) | (6,954 | ) | |||
Decrease in Cash and Cash Equivalents | $ | (394 | ) | $ | (78,770 | ) |
[1] | "Non-cash adjustments" refer to depreciation, amortization, deferred income taxes, provision for uncollectible accounts and other non-cash income and expenses. |
19 |
20 |
• | Defined Benefit Pension Plans |
• | Goodwill |
• | Income Taxes |
• | Property, Plant and Equipment and Other Long-Lived Assets |
• | Revenue Recognition |
• | Self-Insurance Accruals |
• | any projections of earnings, revenue, capital and software expenditures, weight, yield, volumes, income or other financial or operating items; |
• | any statements of the plans, strategies, expectations or objectives of Con-way’s management for future operations or other future items; |
• | any statements concerning proposed new products or services; |
• | any statements regarding Con-way’s estimated future contributions to pension plans; |
• | any statements regarding the payment of future dividends; |
• | any statements as to the adequacy of reserves; |
• | any statements regarding the outcome of any legal, administrative and other claims and proceedings that may be brought by or against Con-way; |
• | any statements regarding future economic conditions or performance; |
• | any statements regarding strategic acquisitions; and |
• | any statements of estimates or belief and any statements or assumptions underlying the foregoing. |
21 |
22 |
(a) | Disclosure Controls and Procedures |
(b) | Internal Control Over Financial Reporting |
23 |
Period | Total Number of Shares (or Units) Purchased 1 | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs 1 | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs 1 | ||||||||||
January 1, 2015 - January 31, 2015 | 100,000 | $ | 44.74 | 100,000 | $ | 128,667,150 | ||||||||
February 1, 2015 - February 28, 2015 | 140,000 | 43.05 | 140,000 | 122,640,150 | ||||||||||
March 1, 2015 - March 31, 2015 | 130,000 | 44.77 | 130,000 | 116,820,050 | ||||||||||
370,000 | $ | 44.15 | 370,000 | $ | 116,820,050 |
[1] | In June 2014, Con-way announced that its Board of Directors had authorized a program to repurchase up to $150 million of Con-way's common stock in open market purchases or in privately negotiated transactions from time to time in such amounts as management determines. |
Exhibit No. | |||
(10) | Material Contracts: | ||
10.1 | Form of Restricted Stock Unit Grant Agreement#. | ||
10.2 | Form of Performance Share Plan Unit Grant Agreement#. | ||
(31) | Certification of Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002: | ||
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
(32) | Certification of Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
(101) | Interactive Data File: | ||
101.INS | XBRL Instance Document | ||
101.SCH | XBRL Taxonomy Extension Schema Document | ||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | ||
101.DEF | XBRL Taxonomy Definition Linkbase Document | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||
Footnote to Exhibit Index | |||
# | Designates a contract or compensation plan for Management or Directors. |
24 |
Con-way Inc. | |||
(Registrant) | |||
Date: | April 29, 2015 | By: | /s/ Stephen L. Bruffett |
Stephen L. Bruffett | |||
Executive Vice President and Chief Financial Officer | |||
(Duly Authorized Officer and Principal Financial Officer) |
25 |
1. | Defined Terms. Except as otherwise indicated herein, all capitalized terms used in this Agreement without definition shall have the meanings given to such terms in the Plan. |
2. | Restricted Stock Units. As of the Grant Date, the Company hereby grants that number of restricted stock units to Participant as set forth in the “Summary of Grant/Award” on the online award acceptance page of the Company’s designated broker with respect to the Company’s shares of Common Stock (hereinafter called the “Stock”), pursuant to Section 11 of the Plan (hereinafter called the “Restricted Stock Units”), subject to the requirement that Participant remains in Continuous Service at all times during the period from the Grant Date through the applicable vesting date for such Restricted Stock Units as set forth in Section 3. As used herein, “Continuous Service” means (i) an Employee or Director or (ii) an Employee who is on an authorized medical, Disability or other leave from the Company or an Affiliate. The number of Restricted Stock Units granted hereunder will be adjusted from time to time for changes in capitalization, as provided in the Plan. |
3. | Vesting; Settlement. |
(a) | Subject to subsections (b), (c), (d) and (e) of this Section 3, all Restricted Stock Units shall vest on the third (3rd) anniversary of the Grant Date, provided that Participant has been in Continuous Service at all times during the period from the Grant Date until such date. Subject to Section 5 below, the Company may cause such number of Restricted Stock Units to vest as may be necessary to satisfy any Tax-Related Items that may arise before the vesting date. |
(b) | A pro rata portion of all Restricted Stock Units (if any) which have not vested shall vest upon the earliest to occur of the following, provided that Participant has been in Continuous Service at all times during the period from the Grant Date until the date of such occurrence: |
(1) | Participant’s death; or |
(2) | Termination of employment due to Disability. |
(c) | If Participant is an Employee on the Grant Date, a pro rata portion of all Restricted Stock Units (if any) which have not vested shall vest upon Participant’s Normal Retirement. Such pro rata portion shall equal the number of unvested Restricted Stock Units, multiplied by a fraction, the numerator of which is the number of full months elapsing from the Grant Date to the date of Participant’s Normal Retirement, and the denominator of which is 36. “Normal Retirement” means termination of employment/retirement on or after age 65 (Normal Retirement Date) or after attaining age 55 with combined age in whole or partial years (rounded to the nearest whole month) plus years of service (as defined in a retirement plan of the Company, the Employer, or Subsidiary or Affiliate (as applicable) applicable to Participant) equal to at least 85 (the Rule of 85). For the avoidance of doubt, any Restricted Stock Units that do not vest pursuant to this Section 3(c) (i.e., the non-pro rata portion) shall be automatically, immediately and irrevocably forfeited upon Participant’s Normal Retirement. |
(d) | (1) Upon a Change in Control (other than a Change in Control that constitutes a “Disposition of a Business Unit”), the Restricted Stock Units shall be converted, assumed or replaced with equivalent restricted stock units or rights (“Assumed”) by the surviving corporation, the successor corporation or its parent corporation, as applicable (the “Successor Corporation”). If there is a Change in Control (other than a Disposition of a Business Unit) and the Restricted Stock Units are not Assumed, then immediately prior to the Change in Control such Restricted Stock Units shall become fully vested. For purposes of this Paragraph 3(d)(1), the Restricted Stock Units shall be considered Assumed if, following the Change in Control, the restricted stock unit or other right confers the right to receive, for each Restricted Stock Unit subject to the award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in connection with the Change in Control by holders of Stock for each share held on the effective date of the Change in Control (and if holders were offered a choice of consideration, the type of consideration selected by the holders of a majority of the outstanding shares of Stock); provided, however, that if such consideration received in connection with the Change in Control is not solely common stock of the Successor Corporation, the Committee may, with the consent of the Successor Corporation, provide for the consideration to be received, for each share of Stock subject thereto, to be solely common stock of the Successor Corporation equal in fair market value to the per share consideration received by holders of Stock in connection with the Change in Control. |
(2) | If, on the Grant Date, Participant is a party to a Severance Agreement (Change in Control) with the Company or an Affiliate (on the terms, conditions and other provisions, including definitions, as are in effect on the Grant Date and without regard to whether the Severance Agreement (Change in Control) is in effect on the date of a Change in Control or the date Participant’s employment terminates, the “CIC Severance Agreement”), then, if the Restricted Stock Units are Assumed and Participant’s employment terminates and such termination of employment constitutes or would constitute a “Severance” (as defined in the CIC Severance Agreement), the Restricted Stock Units shall become fully vested on the date of Participant’s termination. |
(3) | Notwithstanding subsection (2) of this Section 3(d), if the Change in Control constitutes a Disposition of a Business Unit and, as of immediately prior to the Change in Control, Participant is an Employee of the Business Unit that is the subject of the Change in Control and in Continuous Service, then: |
(i) | If, immediately following the Change in Control, Participant continues to be employed by the Business Unit (or is employed by the successor company that acquires the Business Unit) and, as a result of the Change in Control, ceases to be an Employee in Continuous Service, then the Restricted Stock Units shall become fully vested on the date of the Change in Control; |
(ii) | If, in connection with the Change in Control, Participant ceases to be an Employee in Continuous Service and is not retained by the Business Unit (or employed by the successor company that acquires the Business Unit), then the Restricted Stock Units shall become fully vested on the date of the Change in Control; |
(iii) | If, in connection with the Change in Control, Participant ceases to be an employee of the Business Unit but continues to be employed as an Employee in Continuous Service (regardless of whether employed in the same capacity as was employed prior to the Change in Control), then the provisions of subsection (2) of this Section 3(d) shall apply to the Restricted Stock Units (it being understood that a Change in Control will be deemed to have occurred for purposes of subsection (2)). |
(4) | Any other provision of this Agreement to the contrary notwithstanding, in the event it is determined by the Company that any vesting of the Restricted Stock Units contemplated by this Section 3(d) would be subject to the Excise Tax (as defined in the CIC Severance Agreement) or would result in the loss of a deduction to the Company or any Affiliate under Section 280G of the Code, the vesting of the Restricted Stock Units may be adjusted as provided in Section 4 of the CIC Severance Agreement. |
(e) | (1) If, on the Grant Date, Participant is (i) a party to a Severance Agreement (Non-Change in Control) with the Company or an Affiliate (on the terms, conditions and other provisions, including definitions, as are in effect on the Grant Date and without regard to whether the Severance Agreement (Non-Change in Control) is in effect on the date Participant’s employment is terminated, the “Non-CIC Severance Agreement”) or (ii) eligible to receive severance benefits under the Non-Change in Control Severance Policy (on the terms, conditions and other provisions, including definitions, as are in effect on the Grant Date and without regard to whether the Non-Change in Control Severance Policy is in effect on the date Participant’s employment is terminated, the “Non-CIC Severance Policy”), then if Participant’s employment terminates while Participant is an Employee in Continuous Service and such termination of employment constitutes or would constitute, as applicable, (A) a “Severance” (as defined in the Non-CIC Severance Agreement) or (B) an “Involuntary Termination” (as defined in the Non-CIC Severance Policy), then the Restricted Stock Units shall become vested, on the date of Participant’s termination of employment but only to the extent provided in the Non-CIC Severance Agreement or Non-CIC Severance Policy, as applicable. |
(2) | Participant hereby acknowledges and understands that under no event or circumstance shall Participant be entitled to vesting acceleration under this Section 3 to the extent such vesting acceleration exceeds any vesting acceleration that has occurred or will occur under the Non-CIC Severance Agreement or Non-CIC Severance Policy, as applicable. For the avoidance of doubt, in the case of a conflict between the vesting provisions of this Agreement and the vesting provisions of the Non-CIC Severance Agreement or Non-CIC Severance Policy (as applicable), the vesting provisions of the Non-CIC Severance Agreement or Non-CIC Severance Policy, as applicable, shall control. |
(f) | Participant shall not be eligible for the vesting acceleration or other benefits provided under subsection (d) or (e) unless Participant (or, in the event of the death of Participant, the executor, personal representative or administrator of Participant’s estate) first executes a written release in the form then maintained by the Company and delivers such release to the Company within the period required under the release, but in any event with 45 days following Participant’s employment termination. |
(g) | All Restricted Stock Units (if any) which have not vested shall be automatically, immediately and irrevocably forfeited if Participant ceases to be in Continuous Service for any reason other than as a result of an occurrence described in subsections (b), (c), (d) or (e) above. Upon forfeiture of any Restricted Stock Units, all right, title and interest of Participant in such Restricted Stock Units, and in any distributions contemplated by Section 4 (other than cash dividends received by Participant pursuant to Section 4 prior to such forfeiture), shall thereupon cease; and all right, title and interest in and to such Restricted Stock Units and distributions shall vest in the Company, with no compensation or consideration to Participant. |
(h) | Each vested Restricted Stock Unit will be settled by the delivery of one share of Stock to Participant, as soon as practicable, subject to satisfaction of Tax‑Related Items withholding obligations and compliance with securities laws and other applicable laws; provided, however, that to the extent that settlement of the Restricted Stock Units constitutes an item of deferred compensation under Code Section 409A (in the case of U.S. Taxpayers), the Restricted Stock Units shall be settled on the earliest of (i) the vesting date provided in Section 3(a), (ii) within 30 days of the vesting date provided in Section 3(b) or 3(c), (iii) if Section 3(d)(1) applies, within 30 days following a Change in Control that is a “change in control event” within the meaning of Code Section 409A, or (iv) on the 52nd day following a “separation from service” within the meaning of Code Section 409A under Section 3(d)(2), 3(d)(3) 3(d)(4) or 3(e). Notwithstanding the foregoing, if Participant is U.S. Taxpayer and a “specified employee” (as that term is defined in the Company’s 2005 Deferred Compensation Plan for Executives and Key Employees, or a successor plan) and if the Restricted Stock Units constitute an item of deferred compensation under Code Section 409A, the Restricted Stock Units shall be settled on the earlier of (i) the first day of the seventh month following Participant’s “separation from service” or (ii) 30 days following the date of Participant’s death. |
(i) | For avoidance of doubt, only shares of Stock shall be issuable upon the settlement of Restricted Stock Units, not cash. The Company shall not be required to issue fractional shares of Stock upon settlement of the Restricted Stock Units. |
(j) | Notwithstanding Section 3(c) above, if the Committee develops a good faith belief that any provision in Section 3(c) may be found to be unlawful, discriminatory or against public policy in any relevant jurisdiction, then the Committee in its sole discretion may choose not to apply such provision to these Restricted Stock Units, nor any Restricted Stock Unit grant in Participant’s jurisdiction. |
4. | Dividend Equivalents. |
(a) | Participant shall not be entitled to receive Dividend Equivalents with respect to the Restricted Stock Units and Additional Securities (defined below) held by Participant in the event that the Board declares a cash dividend on the Company’s Stock. |
(b) | If the Board declares a dividend on the Company’s Stock (other than a cash dividend) including, but not by way of limitation, warrants and securities received as a stock dividend or stock split, or as a result of a recapitalization or reorganization, Participant will be entitled to Dividend Equivalents equal to the value (as determined by the Committee in its sole discretion) of dividends payable on the same number of shares of Stock as the number of Restricted Stock Units and Additional Securities (as defined below) then held by Participant. Any such Dividend Equivalents will be in the form of additional whole Restricted Stock Units, which Restricted Stock Units shall be subject to the same terms and vesting and payment conditions as the underlying Restricted Stock Units or Additional Securities with respect to which they were issued (such additional Restricted Stock Units being referred to as “Additional Securities”). The number of additional Restricted Stock Units Participant will receive shall be determined by dividing the value (as determined by the Committee in its sole discretion) of dividends payable per share of Stock on a given date by the Fair Market Value per share of Stock on such date (rounded down to the nearest whole share). |
5. | Taxes. |
(a) | Participant acknowledges that, regardless of any action taken by the Company or, if different, Participant’s employer (the “Employer”), the ultimate liability for all Tax-Related Items is and remains Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer. Participant further acknowledge that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Restricted Stock Units, including, but not limited to, the grant, vesting or settlement of the Restricted Stock Units, the subsequent sale of shares of Stock acquired pursuant to such settlement and the receipt of any dividend equivalents; and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Restricted Stock Units to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. |
(b) | Prior to any relevant taxable or tax withholding event, as applicable, Participant agrees to make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, Participant authorizes the Company or its respective agents to satisfy the obligations with regard to all Tax-Related Items by withholding in shares of Stock to be issued upon settlement of the Restricted Stock Units. In the event that such withholding in shares of Stock is problematic under applicable tax or securities law or has materially adverse accounting consequences, by Participant’s acceptance of the Restricted Stock Units, Participant authorizes and directs the Company and any brokerage firm determined acceptable to the Company to sell on Participant’s behalf a whole number of shares from those shares of Stock issuable to Participant as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the obligation for Tax-Related Items. |
(c) | The Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case Participant will receive a refund of any over-withheld amount in cash and will have no entitlement to the Stock equivalent. If the obligation for Tax-Related Items is satisfied by withholding in shares of Stock, for tax purposes, |
(d) | Finally, Participant agrees to pay to the Company or the Employer, including through withholding from Participant’s wages or other cash compensation paid to Participant by the Company and/or the Employer, any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of Participant’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares or the proceeds of the sale of shares of Stock, if Participant fails to comply with Participant’s obligations in connection with the Tax-Related Items. |
6. | Committee Decisions Conclusive. All decisions of the Committee upon any question arising under the Plan or under this Agreement shall be final and binding on all parties. |
7. | Nature of Grant. In accepting the grant, Participant acknowledges, understands and agrees that: |
(a) | the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan; |
(b) | the grant of the Restricted Stock Units is voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past; |
(c) | all decisions with respect to future Restricted Stock Units or other grants, if any, will be at the sole discretion of the Company; |
(d) | the Restricted Stock Unit grant and Participant’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment or service contract with the Company, the Employer or any Affiliate and shall not interfere with the ability of the Company, the Employer or any Affiliate, as applicable, to terminate Participant’s employment or service relationship (if any); |
(e) | Participant is voluntarily participating in the Plan; |
(f) | the Restricted Stock Units and the shares of Stock subject to the Restricted Stock Units are not intended to replace any pension rights or compensation; |
(g) | the Restricted Stock Units and the shares of Stock subject to the Restricted Stock Units, and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; |
(h) | the future value of the underlying shares of Stock is unknown, indeterminable and cannot be predicted with certainty; |
(i) | no claim or entitlement to compensation or damages shall arise from forfeiture of the Restricted Stock Units resulting from Participant’s ceasing to be in Continuous Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any), and in consideration of the grant of the Restricted Stock Units to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against the Company, any of its Affiliates or the Employer, waives Participant’s ability, if any, to bring any such claim, and releases the Company, its Affiliates and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Participant shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim; |
(j) | in the event of termination of Participant’s employment or other services (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any), unless otherwise provided in this Agreement or determined by the Company, Participant’s right to vest in the Restricted Stock Units under the Plan, if any, will |
(k) | unless otherwise provided in the Plan or by the Company in its discretion, the Restricted Stock Units and the benefits evidenced by this Agreement do not create any entitlement to have the Restricted Stock Units or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Stock; and |
(l) | the following provisions apply only if Participant is providing services outside the U.S.: |
8. | No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of the underlying shares of Stock. Participant is hereby advised to consult with Participant’s own personal tax, legal and financial advisors regarding Participant’s participation in the Plan before taking any action related to the Plan. |
9. | Data Privacy. Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant’s personal data as described in this Agreement and any other Restricted Stock Unit grant materials by and among, as applicable, the Employer, the Company and its Affiliates for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan. |
10. | No Rights as Stockholder Prior to Issuance of Stock; Securities Law Compliance. Participant shall not have any rights as a stockholder of the Company (including any voting rights) by virtue of the grant of Restricted Stock Units hereunder or the vesting of Restricted Stock Units, prior to the time that shares of Stock are issued to Participant in accordance with the terms of this Agreement and the Plan. No shares of Stock shall be issued upon the vesting of Restricted Stock Units unless such shares are either (a) then registered under the Securities Act or (b) the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act. The award of Restricted Stock Units, the vesting of Restricted Stock Units or the settlement of vested Restricted Stock Units under this Agreement must also comply with other applicable laws and regulations, and shares of Stock will not be issued if the Company determines that such issuance would not be in material compliance with such laws and regulations. |
11. | Notice. Any notice or other paper required to be given or sent pursuant to the terms of this Agreement or the Plan shall be sufficiently given or served hereunder to any party when transmitted by registered or certified mail, postage prepaid, addressed to the party to be served as follows: |
Company: | Con-way Inc. |
2211 Old Earhart Road, Suite 100 | |
Ann Arbor, Michigan 48105 | |
Attn: General Counsel |
Participant: | At Participant's last address provided by Participant to the Company. |
12. | Transferability. Notwithstanding Section 16 of the Plan, none of the unvested Restricted Stock Units, the vested Restricted Stock Units, or any beneficial interest in any of the foregoing, may be transferred prior to settlement in any manner other than by will or by the laws of descent and distribution. The terms of this Agreement shall be binding upon Participant’s executors, administrators, heirs, successors, and transferees. |
13. | Amendment; Modification. This Agreement may not be modified or amended, except for a unilateral amendment by the Company that does not materially adversely affect the rights of Participant under this Agreement. No party to this Agreement may unilaterally waive any provision hereof, except in writing. Any such modification, amendment or waiver signed by, or binding upon, Participant, shall be valid and binding upon any and all persons or entities who may, at any time, have or claim any rights under or pursuant to this Agreement. |
14. | Severability. If any provision of this Agreement shall be invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render invalid or unenforceable any other severable provision of this Agreement, and this Agreement shall be carried out as if such invalid or unenforceable provision were not contained herein. |
15. | Successors. Except as otherwise expressly provided herein, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns. |
16. | Governing Law. The interpretation, performance, and enforcement of the Agreement shall be governed by the laws of the State of Delaware, without regard to its principles of conflict of laws. |
17. | Governing Plan Document. This award is subject to all the provisions of the Plan, which hereby are incorporated herein, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of this Agreement and those of the Plan, the provisions of the Plan shall control. |
18. | Language. If Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. |
19. | Appendix. Notwithstanding any provisions in this Agreement, the Restricted Stock Unit grant shall be subject to any special terms and conditions set forth in Appendix A to this Agreement for Participant’s country. Moreover, if Participant relocates to one of the countries included in Appendix A, the special terms and conditions for such country will apply to Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. Appendix A constitutes part of this Agreement. |
20. | Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. |
21. | Counterparts. This Agreement and any additional agreements (described in Section 22 below) may be executed in counterparts, all of which taken together shall be deemed one original. |
22. | Imposition of Other Requirements. The Company reserves the right to impose other requirements on Participant’s participation in the Plan, on the Restricted Stock Units and on any shares of Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. |
23. | Code Section 409A. |
(i) | For U.S. Taxpayers, notwithstanding anything to the contrary in this Agreement, no settlement of Restricted Stock Units or other payment under this Agreement that constitutes an item of deferred compensation under Code Section 409A and becomes payable by reason of Participant’s termination of employment shall be made to Participant unless Participant’s termination of employment constitutes a “Separation from Service” (within the meaning of Code Section 409A); and |
(ii) | The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify this Agreement as may be necessary to ensure that all vesting or delivery of shares of Stock provided under this Agreement are made in a manner that complies with Code Section 409A and the Treasury Regulations and other IRS guidance issued thereunder. It is the Company’s intention that this Agreement and the award of Restricted Stock Units, the vesting of Restricted Stock Units and the settlement of vested Restricted Stock Units hereunder shall comply with Code Section 409A; this Agreement shall be interpreted in a manner consistent with such intention. The Company makes no representation or covenant to ensure that the vesting and delivery of the shares of Stock provided under this Agreement are exempt or compliant with Code Section 409A and will have no liability to Participant or any other party if the vesting or delivery of shares of Stock under this Agreement that is intended to be exempt from, or compliant with, Code Section 409A is not so exempt or compliant or for any action taken by the Company with respect thereto. |
24. | Insider Trading Restrictions/Market Abuse Laws. Participant acknowledges that, depending on his or her country of residence, Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect Participant’s ability to acquire or sell shares of Stock or rights to shares of Stock (e.g., Restricted Stock Units) under the Plan during such times as Participant is considered to have “inside information” regarding the Company (as defined by the laws in Participant’s country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. Participant acknowledges that it is his or her responsibility to comply with any applicable restrictions, and Participant is advised to speak to his or her personal advisor on this matter. |
1. | Defined Terms. Except as otherwise indicated herein, all capitalized terms used in this Agreement without definition shall have the meanings given to such terms in the Plan. |
2. | Performance Share Plan Units. As of the Grant Date, the Company hereby grants Participant pursuant to Section 11 of the Plan that number of units as set forth in the “Summary of Grant/Award” on the online award acceptance page of the Company’s designated broker (hereinafter called the “Performance Share Plan Units” or “PSPUs”), subject to the achievement of the performance goals described in Section 3 and Participant’s active employment with the Company or an Affiliate at all times during the period from the Grant Date through the applicable Vesting Date for such Performance Share Plan Units as set forth in Section 4. The number of Performance Share Plan Units granted hereunder shall be adjusted from time to time for changes in capitalization, as provided in the Plan. |
3. | Performance Goals. |
(a) | The issuance of Performance Share Plan Units pursuant to this Agreement shall be subject to the achievement of the performance goals described in this Section 3, which are measured as of the end of the three-year period commencing January 1, 2015 and ending December 31, 2017 (the “Performance Period”). Participant is not required to make a cash payment for the Performance Share Plan Units, although Participant is required to pay all Tax-Related Items as defined in Section 7. |
(b) | The number of Performance Share Plan Units available to Participant for vesting pursuant to Section 4 at the end of the Performance Period (the “PSPUs Available for Vesting”) shall be equal to the total number of Performance Share Plan Units granted to Participant under this Agreement, multiplied by the percentage corresponding to the Company’s actual level of achievement of the fixed three-year average EBITDA Growth goals established by the Committee and reflected in the minutes of its January 20, 2015 meeting, and except as set forth in Section 6 hereof, as determined by the Company in its sole discretion. The definition of “EBITDA Growth” (together with other relevant definitions) is set forth on Appendix A attached hereto. |
(c) | (i) Upon a Change in Control (other than a Change in Control that constitutes a Disposition of a Business |
(ii) | Notwithstanding the foregoing provisions of this Section 3 or the provisions of Section 4(a) below, in the event (A) the Performance Share Plan Units are Assumed, (B) Participant separates from service by termination of employment by the Company or the Employer (as defined in Section 7) or the Successor Corporation upon or within two years following a Change in Control of the Company (other than a Change in Control that constitutes a Disposition of a Business Unit) and such termination would constitute a “Severance” (as defined in the Severance Agreement (Change in Control) by and between Participant and the Company, the Employer, or an Affiliate (as applicable)) (the “CIC Severance Agreement”) and (C) such Severance occurs during the Performance Period, the Performance Share Plan Units shall vest to the extent provided below and be characterized as PSPUs Available for Vesting and shall be treated as Vested Performance Share Plan Units as provided in Section 4(d) below. Such number of Vested Performance Share Plan Units shall be equal to the number of PSPUs that would have been characterized as PSPUs Available for Vesting if the Company had achieved the target levels (i.e., 100%) of the performance goals established by the Committee and reflected in the minutes of its January 20, 2015 meeting. For purposes of the settlement provisions of Section 4(d), the date of Participant’s Severance shall be deemed the Vesting Date for Vested Performance Share Plan Units that vest pursuant to this Section 3(b)(ii). |
(iii) | Notwithstanding the foregoing provisions of this Section 3 or Section 4 below, if the Change in Control constitutes a Disposition of a Business Unit and, as of immediately prior to the Change in Control, Participant is an Employee of the Business Unit that is the subject of the Change in Control and in Continuous Service, then: |
(A) | If, immediately following the Change in Control, Participant continues to be employed by the Business Unit (or is employed by the successor company that acquires the Business Unit) and, as a result of the Change in Control, ceases to be an Employee in Continuous Service, then the Performance Share Plan Units shall become vested immediately prior to the Change in Control to the extent provided in Section 3(c)(iii)(D) below; |
(B) | If, in connection with the Change in Control, Participant ceases to be an Employee in Continuous Service and is not retained by the Business Unit (or employed by the successor company that acquires the Business Unit), then the Performance Share Plan Units shall become vested immediately prior to the Change in Control to the extent provided in Section 4(c)(iii)(D) below; |
(C) | If, in connection with the Change in Control, Participant ceases to be an employee of the Business Unit but continues to be employed as an Employee in Continuous Service (regardless of whether employed in the same capacity as was employed prior to the Change in Control), then the provisions of Section 3(c)(ii) above shall apply to the Performance Share Plan Units |
(D) | The number of Vested Performance Share Plan Units that vest pursuant to Sections 3(c)(iii)(A) and (B) above shall be equal to the product of (1) the number of Performance Share Plan Units that would have been characterized as PSPUs Available for Vesting if the Company had achieved the target levels (i.e., 100%) of the performance goals established by the Committee and reflected in the minutes of its January 20, 2015 meeting, multiplied by (2) a fraction, the numerator of which is the number of full months elapsing from the Grant Date to the date of the Change in Control, and the denominator of which is 36. For purposes of the settlement provisions of Section 4(d), the date of the Change in Control shall be deemed the Vesting Date for Vested Performance Share Plan Units that vest pursuant to this Section 3(c)(iii)(A) and (B). |
(d) | The issuance of Performance Share Plan Units shall also be subject to any applicable country‑specific provisions set forth on Appendix B attached hereto. |
4. | Vesting; Settlement. |
(a) | The PSPUs Available for Vesting will become 100% vested on the third anniversary of the Grant Date. |
(b) | (i) Notwithstanding the foregoing provisions of Section 4(a), in the event Participant separates from service by termination of employment by the Company or the Employer or their successors and such termination would constitute a Severance upon or within two years following a Change in Control applicable to Participant and such Severance occurs after the end of the Performance Period (and after the date the Company determines whether or not the performance goals have been achieved (as set forth in Section 3(b)) but before all PSPUs Available for Vesting become vested in accordance with Section 4(a) above, all PSPUs Available for Vesting shall fully vest and become Vested Performance Share Plan Units as of the date of the Participant’s Severance. For purposes of the settlement provisions of Section 4(d), the date of Participant’s Severance shall be deemed the Vesting Date for Vested Performance Share Plan Units that vest pursuant to this Section 4(b)(i). |
(ii) | Notwithstanding the foregoing provisions of Section 4(a), if a Change in Control occurs after the end of the Performance Period but prior to the date the Company determines whether or not the performance goals have been achieved (as set forth in Section 3(b)), all PSPUs Available for Vesting shall fully vest and become Vested Performance Share Plan Units immediately following the Company’s determination. For purposes of the settlement provisions of Section 4(d), the date of the Change in Control shall be deemed to be the Vesting Date for Vested Performance Share Plan Units that vest pursuant to this Section 4(b)(ii). |
(c) | Notwithstanding the foregoing provisions of Section 4(a), in the case of Participant’s death, termination of Participant’s employment with the Company or the Employer, as applicable, as a result of a Disability or upon Participant’s Normal Retirement, a pro rata portion of the PSPUs Available for Vesting shall vest. Such pro rata portion shall equal the number of PSPUs Available for Vesting, multiplied by a fraction, the numerator of which is the number of full months elapsing from the Grant Date to Participant’s death, Disability or Normal Retirement, and the denominator of which is 36. Such pro rata portion of PSPUs Available for Vesting shall be deemed to be Vested Performance Share Plan Units for all purposes of this Agreement. For purposes of the settlement provisions of Section 4(d), the last day of the Performance Period shall be deemed the Vesting Date for Vested Performance Share Plan Units that vest pursuant to this Section 4(c). |
(d) | Each Vested Performance Share Plan Unit will be settled by the delivery of one share of Stock to Participant no later than March 15th after the applicable Vesting Date with respect to each such Vested Performance Share Plan Unit, subject to satisfaction of all Tax‑Related Items (as defined in Section 7 below) and compliance with applicable securities and exchange control laws. |
(e) | The Company reserves the right to settle Vested Performance Share Plan Units in cash except as to certain jurisdictions set out in Appendix B where Participant’s Performance Share Plan Units shall be settled solely in shares of Stock, not cash. |
(f) | Any other provision in this Agreement to the contrary notwithstanding, in the event it is determined by the Company that any vesting of the Performance Share Plan Units contemplated by Section 3 or 4 would be subject to the Excise Tax (as defined in the CIC Severance Agreement) or would result in the loss of a deduction to the Company or any Affiliate under Section 280G of the Code, the vesting of the Performance Share Plan Units may be adjusted as provided in Section 4 of the CIC Severance Agreement. |
5. | Forfeiture. |
(a) | All Performance Share Plan Units granted hereunder shall be automatically, immediately and irrevocably forfeited (i) if Participant ceases to be an active employee of the Company or an Affiliate for any reason prior to the end of the Performance Period, except as otherwise provided in Section 3(c) above, or (ii) to the extent the Performance Share Plan Units are not characterized as PSPUs Available for Vesting pursuant to Section 3. In addition, except as otherwise provided in Section 3 or 4, all Performance Share Plan Units that have been characterized as PSPUs Available for Vesting pursuant to Section 3 shall be automatically, immediately and irrevocably forfeited if Participant ceases to be an active employee of the Company or an Affiliate for any reason prior to the Vesting Date set forth in Section 4(a). |
(b) | Subject to Section 5(d) below, in the event that the Committee determines in good faith within one year following a determination of the PSPUs Available for Vesting pursuant to Section 3 above that the determination as to the achievement of the performance goals was based on incorrect data, which incorrect data would require the restatement of the Company’s financial statements for reasons other than changes in law, accounting principles or fraudulent activities, and that in fact the performance goals had not been achieved or had been achieved to a lesser extent than originally determined and a portion of any Performance Share Plan Units would not have been characterized as PSPUs Available for Vesting given the correct data (with such portion being referred to herein as the “Unearned PSPUs”), then (i) the Unearned PSPUs shall be forfeited and cancelled as provided by the Committee, (ii) any Unearned PSPUs that vested pursuant to Section 4 above and became Vested Performance Share Plan Units shall be forfeited and cancelled as provided by the Committee, and (iii) any Stock (or cash, if applicable) received upon the settlement of such Vested Performance Share Plan Units (or if such Stock was disposed of, the cash equivalent) shall be paid by Participant to the Company upon notice to Participant as provided by the Committee. |
(c) | Notwithstanding the provisions of Section 5(b) but subject to the provisions of Section 5(d) below, in the event that the Committee determines in good faith at any time following a determination of the PSPUs Available for Vesting pursuant to Section 3 above that the determination as to the achievement of the performance goals was based on incorrect data, which incorrect data would require the restatement of the Company’s financial statements as a result of fraudulent activities of Participant, and that in fact the performance goals had not been achieved or had been achieved to a lesser extent than originally determined and a portion of any Performance Share Plan Units would not have been characterized as PSPUs Available for Vesting given the correct data (with such portion also being referred to herein as the “Unearned PSPUs”), then (i) any Unearned PSPUs shall be forfeited and cancelled as provided by the Committee, (ii) any Unearned PSPUs that vested pursuant to Section 4 above and became Vested Performance Share Plan Units shall be forfeited and cancelled as provided by the Committee, and (iii) any Stock (or cash, if applicable) received upon the settlement of such Vested Performance Share Plan Units (or if such Stock was disposed of, the cash equivalent) shall be paid by Participant to the Company upon notice to Participant as provided by the Committee. |
(d) | Section 5(b) shall apply to Participant only if Participant was an officer as defined in Rule16a-1(f) promulgated under the Securities Exchange Act of 1934 (“Section 16 Officer”) at the time that the incorrect data was used which required the restatement of the Company’s financial statements, and Section 5(c) shall apply to Participant |
(e) | In addition to Sections 5(b) and 5(c) above, the PSPUs (including PSPUs Available for Vesting and Vested Performance Share Plan Units) granted hereunder will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. |
6. | Qualified Performance-Based Compensation |
(a) | This Section 6 shall apply to all PSPUs that are intended to be “qualified performance-based compensation” as defined under Code Section 162(m). |
(b) | The performance goals with respect to the PSPUs must be pre-established in writing not later than 90 days after the commencement of the period of service to which the performance goals relate, provided that the outcome is substantially uncertain at the time the criteria are established. |
(c) | The achievement of the performance goals (as described in Section 3) will be certified by the Committee within two and one-half months after the end of the Performance Period. The determination of the Committee regarding the extent to which the performance goals have been achieved shall be based on the audited financial statements of the Company and shall be final, conclusive and binding on Participant. No PSPUs subject to this Section 6 shall be settled unless and until Committee certification is first obtained. |
(d) | The Committee shall have the authority to make equitable adjustments to the performance goals (as described in Section 3) in recognition of unusual or non-recurring events affecting the Company or any Affiliate or Business Unit or the financial statements of the Company or any Affiliate or Business Unit, in response to changes in applicable laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the acquisition or disposal of a segment of a business or related to a change in accounting principles; provided, however, that no such adjustment shall be made to the extent that it would increase an amount payable to Participant. |
7. | Taxes |
(a) | Participant acknowledges that, regardless of any action taken by the Company or, if different, Participant’s employer (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Participant’s participation in the Plan and legally applicable to Participant (“Tax-Related Items”) is and remains Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer. Participant further acknowledges that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Performance Share Plan Units, including, but not limited to, the grant, vesting or settlement of the Performance Share Plan Units, the subsequent sale of shares of Stock acquired pursuant to such settlement and the receipt of any dividends and/or any dividend equivalents and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Performance Share Plan Units to reduce or eliminate Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, as applicable, Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. |
(b) | Prior to any relevant taxable or tax withholding event, as applicable, Participant agrees to make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, Participant authorizes the Company or its respective agents to satisfy the obligations with regard to all Tax-Related Items by withholding in shares of Stock to be issued upon settlement of the Performance Share Plan Units. In the event that such withholding in shares of Stock is problematic under applicable tax or securities law or has materially adverse accounting consequences, by Participant’s acceptance of the Performance Share Plan Units, Participant authorizes and directs the Company and any brokerage firm determined acceptable to the Company to sell on Participant’s behalf a whole number of shares from those shares of Stock issuable to Participant as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy the |
(c) | The Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case Participant will receive a refund of any over-withheld amount in cash and will have no entitlement to the Stock equivalent. If the obligation for Tax-Related Items is satisfied by withholding in shares of Stock, for tax purposes, Participant is deemed to have been issued the full number of shares of Stock subject to the vested Performance Share Plan Units, notwithstanding that a number of the shares of Stock are held back solely for the purpose of paying the Tax-Related Items. |
(d) | Participant agrees to pay to the Company or the Employer, including through withholding from Participant’s wages or other cash compensation paid to Participant by the Company and/or the Employer, any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of Participant’s participation in the Plan that cannot be satisfied by the means previously described or if the Company elects to settle the PSPUs in cash as provided in Section 4(e). |
(e) | The Company may refuse to issue or deliver the shares or the proceeds of the sale of shares of Stock, if Participant fails to comply with Participant’s obligations in connection with the Tax-Related Items. |
8. | Committee Decisions Conclusive. All decisions of the Committee upon any question arising under the Plan or under this Agreement shall be final and binding on all parties. |
9. | Nature of Grant. In accepting the grant, Participant acknowledges, understands and agrees that: |
(a) | the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan; |
(b) | the grant of the Performance Share Plan Units is voluntary and occasional and does not create any contractual or other right to receive future grants of Performance Share Plan Units, or benefits in lieu of Performance Share Plan Units, even if Performance Share Plan Units have been granted in the past; |
(c) | all decisions with respect to future Performance Share Plan Units or other grants, if any, will be at the sole discretion of the Company; |
(d) | the grant of Performance Share Plan Units and Participant’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment or service contract with the Company, the Employer or any Affiliate and shall not interfere with the ability of the Company, the Employer or any Affiliate, as applicable, to terminate Participant’s employment or service relationship (if any); |
(e) | Participant is voluntarily participating in the Plan; |
(f) | the Performance Share Plan Units and the shares of Stock issuable upon vesting of the Performance Share Plan Units are not intended to replace any pension rights or compensation; |
(g) | the Performance Share Plan Units and the shares of Stock issuable upon the vesting of the Performance Share Plan Units, and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments; |
(h) | the future value of the underlying shares of Stock is unknown, indeterminable and cannot be predicted with certainty; |
(i) | no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance Share Plan Units resulting from Participant’s ceasing to provide employment or other services to the Company or the Employer (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any), and in consideration of the grant of the Performance Share Plan Units to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against the Company, any of its Affiliates or the Employer, waive Participant’s ability, if any, to bring any such claim, and release the Company, its Affiliates |
(j) | in the event of termination of Participant’s employment or other services (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any), unless otherwise provided in this Agreement or determined by the Company, Participant’s right to vest in the Performance Share Plan Units under the Plan, if any, will terminate effective as of the date that Participant is no longer an active employee of the Company, or an Affiliate as set forth in Section 5 of this Agreement, and will not be extended by any notice period (e.g., active services would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any); the Committee shall have the exclusive discretion to determine when Participant is no longer an active employee providing services for purposes of Participant’s Performance Share Plan Units award (including whether Participant may still be considered to be providing services while on an approved leave of absence); |
(k) | unless otherwise provided in the Plan or by the Company in its discretion, the Performance Share Plan Units and the benefits evidenced by this Agreement do not create any entitlement to have the Performance Share Plan Units or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of the Company; and |
(l) | the following provisions apply only if Participant is providing services outside the U.S.: |
10. | No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of Stock. Participant is hereby advised to consult with Participant’s own personal tax, legal and financial advisors regarding Participant’s participation in the Plan before taking any action related to the Plan. |
11. | Data Privacy. Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Participant’s personal data as described in this Agreement and any other Performance Share Plan Units grant materials by and among, as applicable, the Employer, the Company and its Affiliates for the exclusive purpose of implementing, administering and managing Participant’s participation in the Plan. |
12. | No Rights as Stockholder Prior to Issuance of Stock; Securities Law Compliance. Participant shall not have any rights as a stockholder of the Company (including any rights to receive dividends or voting rights) by virtue of the grant of Performance Share Plan Units hereunder or the determination or vesting of PSPUs Available for Vesting, prior to the time that shares of the Company’s Stock are issued to Participant in accordance with the terms of this Agreement and the Plan. No shares of Stock shall be issued upon the vesting of PSPUs Available for Vesting unless such shares are either (a) then registered under the U.S. Securities Act of 1933, as amended or (b) the Company has determined that such issuance would be exempt from the registration requirements of the U.S. Securities Act of 1933, as amended. The award of Performance Share Plan Units, the determination or vesting of PSPUs Available for Vesting or the settlement of Vested Performance Share Plan Units under this Agreement must also comply with other applicable securities and exchange control laws and regulations, and shares of Stock will not be issued if the Company determines that such issuance would not be in material compliance with such securities and exchange control laws and regulations. |
13. | Notice. Any notice or other paper required to be given or sent pursuant to the terms of this Agreement or the Plan shall be sufficiently given or served hereunder to any party when transmitted by registered or certified mail, postage prepaid, addressed to the party to be served as follows: |
Company: | Con-way Inc. |
2211 Old Earhart Road, Suite 100 | |
Ann Arbor, Michigan 48105 | |
Attn: General Counsel |
Participant: | At Participant's last address provided by Participant to the Company. |
14. | Transferability. Notwithstanding Section 16 of the Plan, none of the unvested Performance Share Plan Units, the PSPUs Available for Vesting or the Vested Performance Share Plan Units, or any beneficial interest in any of the foregoing, may be transferred prior to settlement in any manner other than by will or by the laws of descent and distribution. The terms of this Agreement shall be binding upon Participant’s executors, administrators, heirs, successors, and transferees. |
15. | Amendment; Modification. This Agreement may not be modified or amended, except for a unilateral amendment by the Company that does not materially adversely affect the rights of Participant under this Agreement. No party to this agreement may unilaterally waive any provision hereof, except in writing. Any such modification, amendment or waiver signed by, or binding upon, Participant, shall be valid and binding upon any and all persons or entities who may, at any time, have or claim any rights under or pursuant to this Agreement. |
16. | Severability. If any provision of this Agreement shall be invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision and shall not in any manner affect or render invalid or unenforceable any other severable provision of this Agreement, and this Agreement shall be carried out as if such invalid or unenforceable provision were not contained herein. |
17. | Successors. Except as otherwise expressly provided herein, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns. |
18. | Governing Law. The interpretation, performance and enforcement of the Agreement shall be governed by the laws of the State of Delaware, without regard to its principles of conflict of laws. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this grant or the Agreement (including Appendix B, if applicable), the parties hereby submit to and consent to the exclusive jurisdiction of the State of Michigan and agree that such litigation shall be conducted only in the courts located in Washtenaw County, Michigan or the federal courts for the United States for the Eastern District of Michigan, and no other courts, where this grant is made and/or to be performed. |
19. | Governing Plan Document. This award is subject to all the provisions of the Plan, which hereby are incorporated herein, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of this Agreement and those of the Plan, the provisions of the Plan shall control. |
20. | Counterparts. This Agreement may be executed in counterparts, all of which taken together shall be deemed one original. |
21. | Language. If Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. |
22. | Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means. Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. |
23. | Appendices. Notwithstanding any provisions in this Agreement to the contrary, the Performance Share Plan Units grant shall be subject to any special terms and conditions set forth in the Appendix B to this Agreement for Participant’s country. Moreover, if Participant relocates to one of the countries included in the Appendix B, the special terms and conditions for such country will apply to Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. Appendices A and B attached hereto constitute part of this Agreement. |
24. | Imposition of Other Requirements. The Company reserves the right to impose other requirements on Participant’s participation in the Plan, on the Performance Share Plan Units and on any shares of Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. |
25. | Insider Trading Restrictions/Market Abuse Laws. Participant acknowledges that, depending on his or her country of residence, Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect Participant’s ability to acquire or sell shares of Stock or rights to shares of Stock (e.g., PSPUs) under the Plan during such times as Participant is considered to have “inside information” regarding the Company (as defined by the laws in Participant’s country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. Participant acknowledges that it is his or her responsibility to comply with any applicable restrictions, and Participant is advised to speak to his or her personal advisor on this matter. |
1. | I have reviewed this quarterly report on Form 10-Q of Con-way Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | April 29, 2015 | /s/ Douglas W. Stotlar |
Douglas W. Stotlar | ||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Con-way Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | April 29, 2015 | /s/ Stephen L. Bruffett |
Stephen L. Bruffett | ||
Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | April 29, 2015 | /s/ Douglas W. Stotlar |
Douglas W. Stotlar | ||
Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | April 29, 2015 | /s/ Stephen L. Bruffett |
Stephen L. Bruffett | ||
Chief Financial Officer |
Note 7. Share-based Compensation Share-based Compensation Expense (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2015
|
Mar. 31, 2014
|
|
Share-based compensation expense [Abstract] | ||
Salaries, wages and employee benefits | $ 5,286 | $ 3,330 |
Defined income tax benefit | (2,025) | (1,299) |
Net share-based compensation expense | $ 3,261 | $ 2,031 |
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