Form 10-Q - Quarterly report [Sections 13 or 15(d)]

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM

10-Q

 

 

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September

28, 2024

OR

 

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

     

to

     

Commission File Number: 0-21238

 

 

 

LANDSTAR SYSTEM, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware		06-1313069
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

13410 Sutton Park Drive South, Jacksonville, Florida

(Address of principal executive offices)

32224

(Zip Code)

(904)

398-9400

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		LSTR		NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation

S-T

(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files): Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a

non-accelerated

filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule

12b-2

of the Exchange Act. (Check one):

 

Large accelerated filer		☒		Accelerated filer		☐
Non-accelerated filer		☐		Smaller reporting company		☐
				Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule

12b-2

of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s common stock, par value $0.01 per share, outstanding as of the close of business on October 21, 2024 was 35,331,173.

 

 

 

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Index

 

PART I – Financial Information
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets as of September 28, 2024 and December 30, 2023			Page 5
Consolidated Statements of Income for the Thirty-Nine and Thirteen Weeks Ended September 28, 2024 and September 30, 2023			Page 6
Consolidated Statements of Comprehensive Income for the Thirty-Nine and Thirteen Weeks Ended September 28, 2024 and September 30, 2023			Page 7
Consolidated Statements of Cash Flows for the Thirty-Nine Weeks Ended September 28, 2024 and September 30, 2023			Page 8
Consolidated Statements of Changes in Shareholders’ Equity for the Thirty-Nine and Thirteen Weeks Ended September 28, 2024 and September 30, 2023			Page 9
Notes to Consolidated Financial Statements			Page 11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			Page 21
Item 3. Quantitative and Qualitative Disclosures About Market Risk			Page 34
Item 4. Controls and Procedures			Page 34
PART II – Other Information
Item 1. Legal Proceedings			Page 35
Item 1A. Risk Factors			Page 35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			Page 36
Item 5. Other Information			Page 37
Item 6. Exhibits			Page 37
Signatures			Page 39

 

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EX – 31.1 Section 302 CEO Certification
EX – 31.2 Section 302 CFO Certification
EX – 32.1 Section 906 CEO Certification
EX – 32.2 Section 906 CFO Certification

 

 

3

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PART I -

FINANCIAL INFORMATION

Item 1. Financial Statements

The interim consolidated financial statements contained herein reflect all adjustments (all of a normal, recurring nature) which, in the opinion of management, are necessary for a fair statement of the financial condition, results of operations, cash flows and changes in shareholders’ equity for the periods presented. They have been prepared in accordance with Rule

10-01

of Regulation

S-X

and do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Operating results for the thirty-nine weeks ended September 28, 2024 are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 28, 2024.

These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form

10-K.

 

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LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)

(Unaudited)

 

		September 28, 2024				December 30, 2023
ASSETS
Current Assets
Cash and cash equivalents		$	468,830			$	481,043
Short-term investments			62,451				59,661
Trade accounts receivable, less allowance of $12,134 and $11,738			694,633				743,762
Other receivables, including advances to independent contractors, less allowance of $16,759 and $14,010			51,533				43,339
Other current assets			33,947				24,936
Total current assets			1,311,394				1,352,741
Operating property, less accumulated depreciation and amortization of $456,770 and $436,682			289,248				284,300
Goodwill			41,122				42,275
Other assets			115,491				122,530
Total assets		$	1,757,255			$	1,801,846
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Cash overdraft		$	50,746			$	61,541
Accounts payable			397,908				395,980
Current maturities of long-term debt			27,672				27,876
Insurance claims			43,370				41,825
Dividends payable			—				71,433
Contractor escrow			30,244				28,498
Other current liabilities			42,712				48,071
Total current liabilities			592,652				675,224
Long-term debt, excluding current maturities			44,834				43,264
Insurance claims			59,861				58,922
Deferred income taxes and other noncurrent liabilities			43,990				40,513
Shareholders’ Equity
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,559,269 and 68,497,324 shares			686				685
Additional paid-in capital			255,398				254,642
Retained earnings			2,897,073				2,783,645
Cost of 33,228,096 and 32,780,651 shares of common stock in treasury			(2,128,684	)			(2,048,184	)
Accumulated other comprehensive loss			(8,555	)			(6,865	)
Total shareholders’ equity			1,015,918				983,923
Total liabilities and shareholders’ equity		$	1,757,255			$	1,801,846

See accompanying notes to consolidated financial statements.

 

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LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)

 

		Thirty-Nine Weeks Ended								Thirteen Weeks Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Revenue		$	3,609,915			$	4,098,877			$	1,213,867			$	1,289,345
Investment income			10,988				6,874				3,922				3,022
Costs and expenses:
Purchased transportation			2,799,384				3,141,234				943,805				986,743
Commissions to agents			295,801				363,397				98,703				115,244
Other operating costs, net of gains on asset sales/dispositions			44,138				40,998				15,144				15,158
Insurance and claims			83,830				86,971				30,398				29,540
Selling, general and administrative			162,613				159,071				51,252				50,975
Depreciation and amortization			44,001				44,498				15,371				14,359
Total costs and expenses			3,429,767				3,836,169				1,154,673				1,212,019
Operating income			191,136				269,582				63,116				80,348
Interest and debt (income) expense			(4,455	)			(2,079	)			(1,169	)			(1,046	)
Income before income taxes			195,591				271,661				64,285				81,394
Income taxes			45,838				65,254				14,252				19,741
Net income		$	149,753			$	206,407			$	50,033				61,653
Basic and diluted earnings per share		$	4.21			$	5.74			$	1.41			$	1.71
Average basic and diluted shares outstanding			35,608,000				35,958,000				35,420,000				35,951,000
Dividends per common share		$	1.02			$	0.93			$	0.36			$	0.33

See accompanying notes to consolidated financial statements.

 

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LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)

 

		Thirty-Nine Weeks Ended								Thirteen Weeks Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Net income		$	149,753			$	206,407			$	50,033			$	61,653
Other comprehensive (loss) income:
Unrealized holding gains on available-for-sale investments, net of tax expense of $828, $263, $624 and $49			3,023				958				2,277				176
Foreign currency translation (losses) gains			(4,713	)			2,337				(1,354	)			(1,494	)
Other comprehensive (loss) income			(1,690	)			3,295				923				(1,318	)
Comprehensive income		$	148,063			$	209,702			$	50,956			$	60,335

See accompanying notes to consolidated financial statements.

 

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LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

 

		Thirty-Nine Weeks Ended
		September 28, 2024				September 30, 2023
OPERATING ACTIVITIES
Net income		$	149,753			$	206,407
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			44,001				44,498
Non-cash interest charges			198				198
Provisions for losses on trade and other accounts receivable			13,058				10,509
Gains on sales/disposals of operating property			(1,204	)			(3,846	)
Deferred income taxes, net			(4,359	)			(5,595	)
Stock-based compensation			3,573				4,270
Changes in operating assets and liabilities:
Decrease in trade and other accounts receivable			27,877				145,655
Increase in other assets			(7,884	)			(13,115	)
Increase (decrease) in accounts payable			727				(62,652	)
Decrease in other liabilities			(2,785	)			(15,734	)
Increase (decrease) in insurance claims			2,484				(6,810	)
NET CASH PROVIDED BY OPERATING ACTIVITIES			225,439				303,785
INVESTING ACTIVITIES
Sales and maturities of investments			81,072				93,326
Purchases of investments			(74,297	)			(86,115	)
Purchases of operating property			(24,256	)			(15,394	)
Proceeds from sales of operating property			6,265				6,631
NET CASH USED BY INVESTING ACTIVITIES			(11,216	)			(1,552	)
FINANCING ACTIVITIES
Decrease in cash overdraft			(10,795	)			(44,886	)
Dividends paid			(107,758	)			(105,302	)
Proceeds from exercises of stock options			—				28
Taxes paid in lieu of shares issued related to stock-based compensation plans			(3,928	)			(9,186	)
Purchases of common stock			(78,697	)			(15,433	)
Principal payments on finance lease obligations			(22,872	)			(28,017	)
NET CASH USED BY FINANCING ACTIVITIES			(224,050	)			(202,796	)
Effect of exchange rate changes on cash and cash equivalents			(2,386	)			643
(Decrease) increase in cash and cash equivalents			(12,213	)			100,080
Cash and cash equivalents at beginning of period			481,043				339,581
Cash and cash equivalents at end of period		$	468,830			$	439,661

See accompanying notes to consolidated financial statements.

 

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LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Thirty-Nine and Thirteen Weeks Ended September 28, 2024 and September 30, 2023

(Dollars in thousands)

(Unaudited)

		Common Stock								Additional Paid-In				Retained				Treasury Stock at Cost								Accumulated Other Comprehensive
		Shares				Amount				Capital				Earnings				Shares				Amount				(Loss) Income				Total
Balance December 30, 2023			68,497,324			$	685			$	254,642			$	2,783,645				32,780,651			$	(2,048,184	)		$	(6,865	)		$	983,923
Net income															47,096																47,096
Dividends ($0.33 per share)															(11,802	)															(11,802	)
Issuance of stock related to stock-based compensation plans			50,229								(2,174	)							4,864				(886	)							(3,060	)
Stock-based compensation											1,724																				1,724
Other comprehensive income																											30				30
Balance March 30, 2024			68,547,553			$	685			$	254,192			$	2,818,939				32,785,515			$	(2,049,070	)		$	(6,835	)		$	1,017,911
Net income															52,624																52,624
Dividends ($0.33 per share)															(11,777	)															(11,777	)
Purchases of common stock																			315,649				(56,995	)							(56,995	)
Issuance of stock related to stock-based compensation plans			6,374				1												1,112				(201	)							(200	)
Stock-based compensation											1,892																				1,892
Other comprehensive loss																											(2,643	)			(2,643	)
Balance June 29, 2024			68,553,927			$	686			$	256,084			$	2,859,786				33,102,276			$	(2,106,266	)		$	(9,478	)		$	1,000,812
Net income															50,033																50,033
Dividends ($0.36 per share)															(12,746	)															(12,746	)
Purchases of common stock																			121,270				(22,393	)							(22,393	)
Issuance of stock related to stock-based compensation plans			5,342								(643	)							4,550				(25	)							(668	)
Stock-based compensation											(43	)																			(43	)
Other comprehensive income																											923				923
Balance September 28, 2024			68,559,269			$	686			$	255,398			$	2,897,073				33,228,096			$	(2,128,684	)		$	(8,555	)		$	1,015,918

 

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		Common Stock								Additional Paid-In Capital				Retained Earnings				Treasury Stock at Cost								Accumulated Other Comprehensive (Loss) Income				Total
		Shares				Amount												Shares				Amount
Balance December 31, 2022			68,382,310			$	684			$	258,487			$	2,635,960				32,455,300			$	(1,992,886	)		$	(15,024	)		$	887,221
Net income															78,195																78,195
Dividends ($0.30 per share)															(10,806	)															(10,806	)
Purchases of common stock																			89,661				(15,433	)							(15,433	)
Issuance of stock related to stock-based compensation plans			101,653				1				(7,201	)							5,891				(1,008	)							(8,208	)
Stock-based compensation											1,852																				1,852
Other comprehensive income																											2,831				2,831
Balance April 1, 2023			68,483,963			$	685			$	253,138			$	2,703,349				32,550,852			$	(2,009,327	)		$	(12,193	)		$	935,652
Net income															66,559																66,559
Dividends ($0.30 per share)															(10,780	)															(10,780	)
Issuance of stock related to stock-based compensation plans			13,361								(926	)																			(926	)
Stock-based compensation											1,274																				1,274
Other comprehensive income																											1,782				1,782
Balance July 1, 2023			68,497,324			$	685			$	253,486			$	2,759,128				32,550,852			$	(2,009,327	)		$	(10,411	)		$	993,561
Net income															61,653																61,653
Dividends ($0.33 per share)															(11,862	)															(11,862	)
Issuance of stock related to stock-based compensation plans																			128				(24	)							(24	)
Stock-based compensation											1,144																				1,144
Other comprehensive loss																											(1,318	)			(1,318	)
Balance September 30, 2023			68,497,324			$	685			$	254,630			$	2,808,919				32,550,980			$	(2,009,351	)		$	(11,729	)		$	1,043,154

See accompanying notes to consolidated financial statements.

 

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LANDSTAR SYSTEM, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The consolidated financial statements include the accounts of Landstar System, Inc. and its subsidiary, Landstar System Holdings, Inc., and reflect all adjustments (all of a normal, recurring nature) which are, in the opinion of management, necessary for a fair statement of the results for the periods presented. The preparation of the consolidated financial statements requires the use of management’s estimates. Actual results could differ from those estimates. Landstar System, Inc. and its subsidiary are herein referred to as “Landstar” or the “Company.” Significant intercompany accounts have been eliminated in consolidation.

(1) Significant Accounting Policies

Revenue from Contracts with Customers – Disaggregation of Revenue

The following table summarizes (i) the percentage of consolidated revenue generated by mode of transportation and (ii) the total amount of truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers generated by equipment type during the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (dollars in thousands):

 

		Thirty-Nine Weeks Ended								Thirteen Weeks Ended
Mode		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Truck – BCO Independent Contractors			38	%			38	%			38	%			39	%
Truck – Truck Brokerage Carriers			52	%			54	%			52	%			52	%
Rail intermodal			2	%			2	%			2	%			2	%
Ocean and air cargo carriers			6	%			5	%			6	%			5	%
Truck Equipment Type
Van equipment		$	1,851,237			$	2,123,693			$	603,993			$	665,569
Unsided/platform equipment		$	1,093,753			$	1,150,483			$	369,758			$	378,147
Less-than-truckload		$	77,902			$	90,770			$	24,195			$	28,097
Other truck transportation (1)		$	242,853			$	379,471			$	93,178			$	101,951

 

(1)

Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee.

 

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(2) Share-based Payment Arrangements

As

of September 28, 2024, the Company has an employee equity incentive plan, the 2011 equity incentive plan (the “2011 EIP”). The Company also has a stock compensation plan for members of its Board of Directors, the 2022 Directors Stock Compensation Plan (the “2022 DSCP”). 6,000,000 shares of the Company’s common stock were authorized for issuance under the 2011 EIP and 200,000 shares of the Company’s common stock were authorized for issuance under the 2022 DSCP. The 2011 EIP and 2022 DSCP are each referred to herein as a “Plan,” and, collectively, as the “Plans.” Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands):

 

		Thirty-Nine Weeks Ended								Thirteen Weeks Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Total cost of the Plans during the period		$	3,573			$	4,270			$	(43	)		$	1,144
Amount of related income tax benefit recognized during the period			(1,997	)			(3,878	)			(313	)			(286	)
Net cost of the Plans during the period		$	1,576			$	392			$	(356	)		$	858

Included in income tax benefits recognized in the thirty-nine-week periods ended September 28, 2024 and September 30, 2023 were excess tax benefits from stock-based awards of $1,122,000 and $2,830,000, respectively.

As of September 28, 2024, there were 181,450 shares of the Company’s common stock reserved for issuance under the 2022 DSCP and 2,800,060 shares of the Company’s common stock reserved for issuance under the 2011 EIP.

Restricted Stock Units

The following table summarizes information regarding the Company’s outstanding restricted stock unit (“RSU”) awards with either a performance condition or a market condition under the Plans:

 

		Number of				Weighted Average Grant Date
		RSUs				Fair Value
Outstanding at December 30, 2023			132,722			$	138.93
Granted			102,762			$	138.85
Shares earned in excess of target (1)			1,791			$	51.42
Vested shares			(45,057	)		$	115.69
Forfeited			(29,801	)		$	140.20
Outstanding at September 28, 2024			162,417			$	144.13

 

(1)	Represents additional shares earned under the April 24, 2018 and July 1, 2019 RSU awards as total shareholder return during the applicable performance period exceeded target performance level under each of those awards.

During the thirty-nine-week period ended September 28, 2024, the Company granted RSUs with a performance condition and RSUs with a market condition, as further described below. Outstanding RSUs at both December 30, 2023 and September 28, 2024 include RSUs with a performance condition and RSUs with a market condition, as further described below and in the Company’s 2023 Annual Report on Form

10-K.

RSUs with a performance condition granted on February 2, 2024 may vest on January 31 of 2027, 2028 and 2029 based on growth in operating income and

pre-tax

income per diluted share from continuing operations as compared to the results from the 2023 fiscal year.

On February 2, 2024, the Company granted 58,268 RSUs that vest based on a market condition. These RSUs may vest based on the achievement of the target Company’s total shareholder return (“TSR”) compound annual growth rate, adjusted to reflect dividends (if any) paid during such periods and capital adjustments as may be necessary, and are eligible to vest annually starting after the sixth anniversary of the grant date and concluding after the tenth anniversary of the grant date. The fair value of this RSU award was determined at the time of grant based on the expected achievement of the market condition. With respect to these RSU awards, the Company reports compensation expense ratably over the service period of the award based on the number of units granted multiplied by the grant date fair value of the RSU. Previously recognized compensation cost would be reversed only if the employee did not complete the requisite service period due to termination of employment.

 

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The Company recognized approximately $408,000 and $1,503,000 of share-based compensation expense related to RSU awards in the thirty-nine-week periods ended September 28, 2024 and September 30, 2023, respectively. As of September 28, 2024, there was a maximum of $40.7 million of total unrecognized compensation cost related to RSU awards granted under the Plans with an expected average remaining life of approximately 3.6 years. With respect to RSU awards with a performance condition, the amount of future compensation expense to be recognized will be determined based on future operating results.

Non-vested

Restricted Stock and Deferred Stock Units

The following table summarizes information regarding the Company’s outstanding shares of

non-vested

restricted stock and Deferred Stock Units (defined below) under the Plans:

 

		Number of Shares and Deferred Stock Units				Weighted Average Grant Date Fair Value
Non-vested at December 30, 2023			46,348			$	158.38
Granted			31,525			$	187.08
Vested			(25,647	)		$	151.16
Forfeited			(4,707	)		$	169.92
Non-vested at September 28, 2024			47,519			$	180.17

The fair value of each share of

non-vested

restricted stock issued and Deferred Stock Unit granted under the Plans is based on the fair value of a share of the Company’s common stock on the date of grant. Shares of

non-vested

restricted stock are generally subject to vesting in three equal annual installments either on the first, second and third anniversary of the date of the grant or the third, fourth and fifth anniversary of the date of the grant, in two equal annual installments on the first and second anniversary of the date of the grant or 100% on the first, third or fifth anniversary of the date of the grant. For restricted stock awards granted under the 2022 DSCP, each recipient may elect to defer receipt of shares and instead receive restricted stock units (“Deferred Stock Units”), which represent contingent rights to receive shares of the Company’s common stock on the date of the recipient’s separation from service from the Board of Directors, or, if earlier, upon a change in control event of the Company. Deferred Stock Units become vested 100% on the first anniversary of the date of the grant. Deferred Stock Units do not represent actual ownership in shares of the Company’s common stock and the recipient does not have voting rights or other incidents of ownership until the shares are issued. However, Deferred Stock Units do contain the right to receive dividend equivalent payments prior to settlement into shares.

As of September 28, 2024, there was $5,754,000 of total unrecognized compensation cost related to

non-vested

shares of restricted stock and Deferred Stock Units granted under the Plans. The unrecognized compensation cost related to these

non-vested

shares of restricted stock and Deferred Stock Units is expected to be recognized over a weighted average period of 1.8 years.

Stock Options

The Company had no issued and outstanding vested or unvested stock options or unrecognized compensation costs related to

non-vested

stock options granted under the Plans as of December 30, 2023 or September 28, 2024. The total intrinsic value of stock options exercised during the thirty-nine-week period ended September 30, 2023 was $218,000

.

(3) Income Taxes

The

provisions for income taxes for the 2024 and 2023 thirty-nine-week periods were based on estimated annual effective income tax rates of 24.3% and 24.4%, respectively, adjusted for discrete events, such as benefits resulting from stock-based awards. The effective income tax rate for the 2024 thirty-nine-week period was 23.4%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2024 period primarily attributable to state taxes, partially offset by federal tax credits. The effective income tax rate for the 2023 thirty-nine-week period was 24.0%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2023 period primarily attributable to state taxes.

 

13

---

(4) Earnings Per Share

Basic

earnings per common share are based on the weighted average number of shares outstanding, which includes outstanding

non-vested

restricted stock and outstanding Deferred Stock Units. Diluted earnings per share are based on the weighted average number of common shares outstanding plus the incremental shares that would have been outstanding upon the assumed exercise of all dilutive stock options. For each of the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023, the weighted-average number of common shares outstanding is the same for purposes of the calculations of both basic and diluted earnings per share. During and as of the thirty-nine-week period ended September 28, 2024, there were no outstanding stock options issued by the Company. For the thirty-nine-week period ended September 30, 2023, the impact on earnings per share of future compensation expense related to outstanding, unvested time-based awards was greater than the incremental impact of outstanding dilutive stock options, and would therefore have an anti-dilutive effect on earnings per share if included in the calculation of earnings per share. Accordingly, the Company had no reconciling items between the average number of common shares outstanding used to calculate basic earnings per common share and the average number of common shares and common share equivalents outstanding used to calculate diluted earnings per share during each of the 2024 and 2023 thirty-nine-week and thirteen-week periods.

Outstanding RSUs were excluded from the calculation of diluted earnings per share for all periods because the performance metric requirements or market condition for vesting had not been

satisfied.

(5) Additional Cash Flow Information

During the

2024

thirty-

nine

-week period, Landstar paid income taxes and interest of $

45,638,000

and $

2,641,000

, respectively. During the

2023

thirty-

nine

-week period, Landstar paid income taxes and interest of $

68,136,000

and $

2,814,000

, respectively. Landstar acquired operating property by entering into finance leases in the amount of $

24,238,000

in the

2024

thirty-

nine

-week period. Landstar acquired $

6,690,000

of operating property for which the Company accrued a corresponding liability in accounts payable of $

1,201,000

and in other noncurrent liabilities of $

5,489,000

as of September 

28

,

2024

. Landstar did not acquire any operating property by entering into finance leases in the

2023

thirty-

nine

-week period. During the

2024

thirty-

nine

-week period, the Company purchased its common stock at a total cost of $

79,388,000

, including $

78,697,000

in cash purchases and accrued excise tax of $

691,000

, which is included in other current liabilities in the consolidated balance sheet at September 

28

,

2024

.

(6) Segment Information

The

following

table summarizes information about the Company’s reportable business

segments

as of and for the thirty-

nine

-week and

thirteen

-week periods ended September 

28

,

2024

and September 

30

,

2023

(in thousands):

		Thirty-Nine Weeks Ended
		September 28, 2024												September 30, 2023
		Transportation Logistics				Insurance				Total				Transportation Logistics				Insurance				Total
External revenue		$	3,561,941			$	47,974			$	3,609,915			$	4,043,824			$	55,053			$	4,098,877
Internal revenue							65,411				65,411								64,138				64,138
Investment income							10,988				10,988								6,874				6,874
Operating income			141,070				50,066				191,136				222,827				46,755				269,582
Expenditures on long-lived assets			24,256								24,256				15,394								15,394
Goodwill			41,122								41,122				41,934								41,934

 

		Thirteen Weeks Ended
		September 28, 2024												September 30, 2023
		Transportation Logistics				Insurance				Total				Transportation Logistics				Insurance				Total
External revenue		$	1,198,334			$	15,533			$	1,213,867			$	1,271,385			$	17,960			$	1,289,345
Internal revenue							12,065				12,065								11,960				11,960
Investment income							3,922				3,922								3,022				3,022
Operating income			47,618				15,498				63,116				63,974				16,374				80,348
Expenditures on long-lived assets			7,478								7,478				2,763								2,763

In the thirty-nine-week periods ended September 28, 2024 and September 30, 2023, no single customer accounted for more than 10% of the Company’s consolidated revenue.

 

14

---

(7) Other Comprehensive Income

The

following table presents the

components

of and changes in accumulated other comprehensive (loss) income, net of related income taxes, as of and for the thirty-nine-week period ended September 28, 2024 (in thousands):

 

		Unrealized Holding (Losses) Gains on Available-for-Sale Securities				Foreign Currency Translation				Total
Balance as of December 30, 2023		$	(5,010	)		$	(1,855	)		$	(6,865	)
Other comprehensive income (loss)			3,023				(4,713	)			(1,690	)
Balance as of September 28, 2024		$	(1,987	)		$	(6,568	)		$	(8,555	)

Amounts reclassified from accumulated other comprehensive income to investment income due to the realization of previously unrealized gains and losses in the accompanying consolidated statements of income were not significant for the thirty-nine-week period ended September 28, 2024.

(8) Investments

Investments

include primarily investment-grade corporate bonds, asset-backed securities and commercial paper having maturities of up to five years (the “bond portfolio”) and

money market investments. Investments in the bond portfolio are reported as

available-for-sale

and are carried at fair value. Investments maturing less than one year from the balance sheet date are included in short-term investments and investments maturing more than one year from the balance sheet date are included in other assets in the consolidated balance sheets. Management performs an analysis of the nature of the unrealized losses on

available-for-sale

investments to determine whether an allowance for credit loss is necessary. Unrealized losses, representing the excess of the purchase price of an investment over its fair value as of the end of a period, considered to be a result of credit-related factors, are to be included as a charge in the statements of income, while unrealized losses considered to be a result of

non-credit-related

factors are to be included as a component of shareholders’ equity. Investments whose values are based on quoted market prices in active markets are classified within Level 1. Investments that trade in markets that are not considered to be active, but are valued based on quoted market prices, are classified within Level 2. As Level 2 investments include positions that are not traded in active markets, valuations may be adjusted to reflect illiquidity and/or

non-transferability,

which are generally based on available market information. Any transfers between levels are recognized as of the beginning of any reporting period. Fair value of the bond portfolio was determined using Level 1 inputs related to money market investments and Level 2 inputs related to investment-grade corporate bonds, asset-backed securities, commercial paper and direct obligations of government agencies. Unrealized losses, net of unrealized gains, on the investments in the bond portfolio

were $2,531,000 and $6,382,000 at September 28, 2024 and December 30, 2023, respectively.

 

15

---

The amortized cost and fair values of

available-for-sale

investments are as follows at September 28, 2024 and December 30, 2023 (in thousands):

 

		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
September 28, 2024
Money market investments		$	14,998			$	—			$	—			$	14,998
Asset-backed securities			17,535				21				1,563				15,993
Corporate bonds, commercial paper and direct obligations of government agencies			118,857				998				1,987				117,868
Total		$	151,390			$	1,019			$	3,550			$	148,859
December 30, 2023
Money market investments		$	16,832			$	—			$	—			$	16,832
Asset-backed securities			16,543				—				2,236				14,307
Corporate bonds, commercial paper and direct obligations of government agencies			118,481				279				4,384				114,376
U.S. Treasury obligations			6,287				2				43				6,246
Total		$	158,143			$	281			$	6,663			$	151,761

For those

available-for-sale

investments with unrealized losses at September 28, 2024 and December 30, 2023, the following table summarizes the duration of the unrealized loss (in thousands):

 

		Less than 12 months								12 months or longer												Total
		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
September 28, 2024
Asset-backed securities		$	—			$	—			$	13,107			$	1,563			$	13,107			$	1,563
Corporate bonds, commercial paper, and direct obligations of government agencies			—				—				65,324				1,987				65,324				1,987
Total		$	—			$	—			$	78,431			$	3,550			$	78,431			$	3,550
December 30, 2023
Asset-backed securities		$	—			$	—			$	14,307			$	2,236			$	14,307			$	2,236
Corporate bonds, commercial paper, and direct obligations of government agencies			3,506				42				86,841				4,342				90,347				4,384
U.S. Treasury obligations			—				—				2,305				43				2,305				43
Total		$	3,506			$	42			$	103,453			$	6,621			$	106,959			$	6,663

The Company believes unrealized losses on investments were primarily caused by rising interest rates rather than changes in credit quality. The Company expects to recover, through collection of all of the contractual cash flows of each security, the amortized cost basis of these securities as it does not intend to sell, and does not anticipate being required to sell, these securities before recovery of the cost basis. For these reasons, no losses have been recognized in the Company’s consolidated statements of income.

(9) Leases

Landstar’s

noncancelable leases are primarily comprised of finance leases for the acquisition of new trailing equipment. Each finance lease for the acquisition of trailing equipment is a five year lease with a $1 purchase option for the applicable equipment at lease expiration. Substantially all of Landstar’s operating lease

right-of-use

assets and operating lease liabilities represent leases for facilities maintained in support of the Company’s network of BCO Independent Contractors and office space used to conduct Landstar’s business.

 

16

---

These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives or other

build-out

clauses. Further, the leases do not contain contingent rent provisions. Landstar also rents certain trailing equipment to supplement the Company-owned trailer fleet under

“month-to-month”

lease terms, which are not required to be recorded on the balance sheet due to the less than twelve month lease term exemption. Sublease income is primarily comprised of weekly trailing equipment rentals to BCO Independent Contractors.

Most of Landstar’s operating leases include one or more options to renew. The exercise of lease renewal options is typically at Landstar’s sole discretion, and, as such, the majority of renewals to extend the lease terms are not included in the

right-of-use

assets and lease liabilities as they are not reasonably certain of exercise. Landstar regularly evaluates the renewal options, and when they are reasonably certain of exercise, Landstar includes the renewal period in the lease term.

As most of Landstar’s operating leases do not provide an implicit rate, Landstar utilized its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. Landstar has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, the Company applies a portfolio approach for determining the incremental borrowing rate.

The components of lease cost for finance leases and operating leases for the thirty-nine weeks ended September 28, 2024 were (in thousands):

 

Finance leases:
Amortization of right-of-use assets		$	12,901
Interest on lease liability			1,863
Total finance lease cost			14,764
Operating leases:
Lease cost			2,883
Variable lease cost			—
Sublease income			(4,273	)
Total net operating lease income			(1,390	)
Total net lease cost		$	13,374

 

17

---

A summary of the lease classification on the Company’s consolidated balance sheet as of September 28, 2024 is as follows (in thousands):

Assets:

 

Operating lease right-of-use assets		Other assets		$	1,074
Finance lease assets		Operating property, less accumulated depreciation and amortization			108,185
Total lease assets				$	109,259

Liabilities:

The following table reconciles the undiscounted cash flows for the finance and operating leases to the finance and operating lease liabilities recorded on the balance sheet at September 28, 2024 (in thousands):

		Finance Leases				Operating Leases
2024 Remainder		$	8,069			$	191
2025			28,968				533
2026			21,074				213
2027			10,686				175
2028			6,584				49
Thereafter			2,963				—
Total future minimum lease payments			78,344				1,161
Less amount representing interest (1.6% to 6.5%)			5,838				87
Present value of minimum lease payments		$	72,506			$	1,074

 

Current maturities of long-term debt			27,672
Long-term debt, excluding current maturities			44,834
Other current liabilities							618
Deferred income taxes and other noncurrent liabilities							456

The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of September 28, 2024 were:

 

		Finance Leases				Operating Leases
Weighted average remaining lease term (years)			3.2				2.4
Weighted average discount rate			4.2	%			6.5	%

(10) Debt

Other

than the finance lease obligations as presented on the consolidated balance sheets, the Company had no outstanding debt as of September 28, 2024 and December 30, 2023.

On July 1, 2022, Landstar entered into a second amended and restated credit agreement with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent (as further amended as of June 21, 2024, the “Credit Agreement”). The Credit Agreement, which matures July 1, 2027, provides for borrowing capacity in the form of a revolving credit facility of $300,000,000, $45,000,000 of which may be utilized in the form of letters of credit. The Credit Agreement also includes an “accordion” feature providing for a possible increase of up to an aggregate amount of borrowing capacity of $600,000,000. As of September 28, 2024, the Company had no borrowings outstanding under the Credit Agreement.

The revolving credit loans under the Credit Agreement, at the option of Landstar, bear interest at (i) a forward-looking term rate based on the secured overnight financing rate plus 0.10% and an applicable margin ranging from 1.25% to 2.00%, or (ii) an alternate base rate plus an applicable margin ranging from 0.25% to 1.00%, in each case with the applicable margin determined based upon the Company’s Leverage Ratio, as defined in the Credit Agreement, at the end of the most recent applicable fiscal quarter for which financial statements have been delivered. The revolving credit facility bears a commitment fee, payable quarterly in arrears, of 0.20% to 0.30%, based on the Company’s Leverage Ratio at the end of the most recent applicable fiscal quarter for which financial statements have been

delivered

.

 

18

---

The Credit Agreement contains a number of covenants that limit, among other things, the incurrence of additional indebtedness. The Company is required to, among other things, maintain a minimum fixed charge coverage ratio, as described in the Credit Agreement, and maintain a Leverage Ratio, as defined in the Credit Agreement, below a specified maximum. The Credit Agreement provides for a restriction on cash dividends and other distributions to stockholders on the Company’s capital stock to the extent there is a default under the Credit Agreement. In addition, the Credit Agreement under certain circumstances limits the amount of such cash dividends and other distributions to stockholders to the extent that, after giving effect to any payment made to effect such cash dividend or other distribution, the Leverage Ratio would exceed

2.5

to 1 on a pro forma basis as of the end of the Company’s most recently completed fiscal quarter. The Credit Agreement provides for an event of default in the event that, among other things, a person or group acquires 35% or more of the outstanding capital stock of the Company or obtains power to elect a majority of the Company’s directors or the directors cease to consist of a majority of Continuing Directors, as defined in the Credit Agreement. None of these covenants are presently considered by management to be materially restrictive to the Company’s operations, capital resources or liquidity. The Company is currently in compliance with all of the debt covenants under the Credit Agreement.

The interest rates on borrowings under the revolving credit facility are typically tied to short-term interest rates and, as such, carrying value approximates fair value. Interest rates on borrowings under finance leases approximate the interest rates that would currently be available to the Company under similar terms and, as such, carrying value approximates fair value.

(11) Commitments and Contingencies

Short-term

investments include $62,451,000 in current maturities of investments held by the Company’s insurance segment at September 28, 2024. The

non-current

portion of the bond portfolio of $86,408,000 is included in other assets. The short-term investments, together with $18,790,000 of

non-current

investments, provide collateral for the $73,117,000 of letters of credit issued to guarantee payment of insurance claims. As of September 28, 2024, Landstar also had $35,250,000 of additional letters of credit outstanding under the Company’s Credit Agreement.

The Company is involved in certain claims and pending litigation arising from the normal conduct of business. Many of these claims are covered in whole or in part by insurance. Based on knowledge of the facts and, in certain cases, opinions of outside counsel, management believes that adequate provisions have been made for probable losses with respect to the resolution of all such claims and pending litigation and that the ultimate outcome, after provisions therefor, will not have a material adverse effect on the financial condition of the Company, but could have a material effect on the results of operations in a given quarter or year.

(12) Change in Accounting Estimate for Self-Insured Claims

Landstar

provides for the estimated costs of self-insured claims primarily on an actuarial basis. The amount recorded for the estimated liability for claims incurred is based upon the facts and circumstances known on the applicable balance sheet date. The ultimate resolution of these claims may be for an amount greater or less than the amount estimated by management. The Company continually revises its existing claim estimates as new or revised information becomes available on the status of each claim. Historically, the Company has experienced both favorable and unfavorable development of prior years’ claims estimates within its various programs.

The following table summarizes the adverse effect of the increase in the cost of insurance claims resulting from unfavorable development of prior year self-insured claims estimates on operating income, net income and basic and diluted earnings per share set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (in thousands, except per share

amounts):

 

		Thirty-Nine Weeks Ended								Thirteen Weeks Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Operating income		$	6,666			$	5,154			$	4,550			$	2,323
Net income		$	5,046			$	3,896			$	3,444			$	1,756
Basic and diluted earnings per share		$	0.14			$	0.11			$	0.10			$	0.05

 

19

---

(13)     Recent Accounting Pronouncements

Accounting Standards Issued But Not Yet Adopted

In November 2023, the FASB issued ASU

2023-07,

Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

(“ASU

2023-07”),

which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU

2023-07

is effective for annual periods beginning after December 15, 2023. The Company expects ASU

2023-07

to impact only its disclosures with no impacts to its financial condition, results of operations or cash flows.

In December 2023, the FASB issued ASU

2023-09,

Income Taxes (Topic 740): Improvements to Income Tax Disclosures

(“ASU

2023-09”),

which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. ASU

2023-09

is effective for annual periods beginning after December 15, 2024. ASU

2023-09

is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures.

 

 

20

---

---

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the interim consolidated financial statements and notes thereto included herein, and with the Company’s audited financial statements and notes thereto for the fiscal year ended December 30, 2023 and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this document that are not based on historical facts are “forward-looking statements.” This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Form 10-Q contain forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “intention,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; the impact of the Russian conflict with Ukraine on the operations of certain independent commission sales agents, including the Company’s largest such agent by revenue in the 2023 fiscal year; decreased demand for transportation services; U.S. trade relationships; substantial industry competition; disruptions or failures in the Company’s computer systems; cyber and other information security incidents; dependence on key vendors; potential changes in taxes; status of independent contractors; regulatory and legislative changes; regulations focused on diesel emissions and other air quality matters; regulations requiring the purchase and use of zero-emission vehicles; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2023 fiscal year, described in Item 1A “Risk Factors,” in this report or in Landstar’s other Securities and Exchange Commission filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Introduction

Landstar System, Inc. and its subsidiary, Landstar System Holdings, Inc. (collectively referred to herein with their subsidiaries and other affiliated companies as “Landstar” or the “Company”), is a technology-enabled, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services to a broad range of customers utilizing a network of agents, third party capacity providers and employees. The Company offers services to its customers across multiple transportation modes, with the ability to arrange for individual shipments of freight to comprehensive third party logistics solutions to meet all of a customer’s transportation needs. Landstar provides services principally throughout the United States and to a lesser extent in Canada and Mexico, and between the United States and Canada, Mexico and other countries around the world. The Company’s services emphasize safety, information coordination and customer service and are delivered through a network of approximately 1,100 independent commission sales agents and over 78,000 third party capacity providers, primarily truck capacity providers, linked together by a series of digital technologies which are provided and coordinated by the Company. The nature of the Company’s business is such that a significant portion of its operating costs varies directly with revenue.

 

21

---

Landstar markets its integrated transportation management solutions primarily through independent commission sales agents and exclusively utilizes third party capacity providers to transport customers’ freight. Landstar’s independent commission sales agents enter into contractual arrangements with the Company and are responsible for locating freight, making that freight available to Landstar’s capacity providers and coordinating the transportation of the freight with customers and capacity providers. The Company’s third party capacity providers consist of independent contractors who provide truck capacity to the Company under exclusive lease arrangements (the “BCO Independent Contractors”), unrelated trucking companies who provide truck capacity to the Company under non-exclusive contractual arrangements (the “Truck Brokerage Carriers”), air cargo carriers, ocean cargo carriers and railroads. Through this network of agents and capacity providers linked together by Landstar’s ecosystem of digital technologies, Landstar operates an integrated transportation management solutions business primarily throughout North America with revenue of $5.3 billion during the most recently completed fiscal year. The Company reports the results of two operating segments: the transportation logistics segment and the insurance segment.

The transportation logistics segment provides a wide range of integrated transportation management solutions. Transportation services are provided by Landstar’s “Operating Subsidiaries”: Landstar Ranger, Inc., Landstar Inway, Inc., Landstar Ligon, Inc., Landstar Gemini, Inc., Landstar Transportation Logistics, Inc., Landstar Global Logistics, Inc., Landstar Express America, Inc., Landstar Canada, Inc., Landstar Metro, S.A.P.I. de C.V., and Landstar Blue, LLC. Transportation services offered by the Company include truckload, less-than-truckload and other truck transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo and customs brokerage. Examples of the industries serviced by the transportation logistics segment include automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics and military equipment. In addition, the transportation logistics segment provides transportation services to other transportation companies, including third party logistics and less-than-truckload service providers. The independent commission sales agents market services provided by the transportation logistics segment. Billings for freight transportation services are typically charged to customers on a per shipment basis for the physical transportation of freight and are referred to as transportation revenue. During the thirty-nine weeks ended September 28, 2024, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 38%, 52% and 2%, respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 6% of the Company’s consolidated revenue in the thirty-nine-week period ended September 28, 2024.

The insurance segment is comprised of Signature Insurance Company (“Signature”), a wholly owned offshore insurance subsidiary, and Risk Management Claim Services, Inc. The insurance segment provides risk and claims management services to certain of Landstar’s operating subsidiaries. In addition, it reinsures certain risks of the Company’s BCO Independent Contractors and provides certain property and casualty insurance directly to certain of Landstar’s operating subsidiaries. Revenue at the insurance segment represents reinsurance premiums from third party insurance companies that provide insurance programs to BCO Independent Contractors where all or a portion of the risk is ultimately borne by Signature. Revenue at the insurance segment represented approximately 1% of the Company’s consolidated revenue for the thirty-nine-week period ended September 28, 2024.

Changes in Financial Condition and Results of Operations

Management believes the Company’s success principally depends on its ability to generate freight revenue through its network of independent commission sales agents and to deliver freight safely and efficiently utilizing third party capacity providers. Management believes the most significant factors to the Company’s success include increasing revenue, sourcing capacity, empowering its network through technology-based tools and controlling costs, including insurance and claims.

Revenue

While customer demand, which is subject to overall economic conditions, ultimately drives increases or decreases in revenue, the Company primarily relies on its independent commission sales agents to establish customer relationships and generate revenue opportunities. Management’s emphasis with respect to revenue growth is on revenue generated by independent commission sales agents who on an annual basis generate $1 million or more of Landstar revenue (“Million Dollar Agents”). Management believes future revenue growth is primarily dependent on its ability to increase both the revenue generated by Million Dollar Agents and the number of Million Dollar Agents through a combination of recruiting new agents, increasing the revenue opportunities generated by existing independent commission sales agents and providing its independent commission sales agents with digital technologies they may use to grow revenue and increase efficiencies at their businesses. During the 2023 fiscal year, 524 independent commission sales agents generated $1 million or more of Landstar revenue and thus qualified as Million Dollar Agents. During the 2023 fiscal year, the average revenue generated by a Million Dollar Agent was $9,645,000 and revenue generated by Million Dollar Agents in the aggregate represented 95% of consolidated revenue.

 

22

---

Management monitors business activity by tracking the number of loads (volume) and revenue per load by mode of transportation. Revenue per load can be influenced by many factors other than a change in price. Those factors include the average length of haul, freight type, special handling and equipment requirements, fuel costs and delivery time requirements. For shipments involving two or more modes of transportation, revenue is generally classified by the mode of transportation having the highest cost for the load. The following table summarizes this information by trailer type for truck transportation and by mode for all others:

 

		Thirty-Nine Weeks Ended								Thirteen Weeks Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Revenue generated through (in thousands):
Truck transportation
Truckload:
Van equipment		$	1,851,237			$	2,123,693			$	603,993			$	665,569
Unsided/platform equipment			1,093,753				1,150,483				369,758				378,147
Less-than-truckload			77,902				90,770				24,195				28,097
Other truck transportation (1)			242,853				379,471				93,178				101,951
Total truck transportation			3,265,745				3,744,417				1,091,124				1,173,764
Rail intermodal			65,981				73,953				20,979				23,064
Ocean and air cargo carriers			201,729				202,358				76,349				65,824
Other (2)			76,460				78,149				25,415				26,693
		$ 3,609,915				$ 4,098,877				$ 1,213,867				$ 1,289,345
Revenue on loads hauled via BCO Independent Contractors included in total truck transportation		$	1,374,915			$	1,543,634			$	456,844			$	508,753
Number of loads:
Truck transportation
Truckload:
Van equipment			887,895				966,867				287,922				311,831
Unsided/platform equipment			362,627				389,471				118,220				126,286
Less-than-truckload			119,346				134,580				36,496				41,514
Other truck transportation (1)			114,552				157,112				43,112				46,739
Total truck transportation			1,484,420				1,648,030				485,750				526,370
Rail intermodal			21,420				22,150				7,040				6,760
Ocean and air cargo carriers			26,120				25,380				8,880				8,630
			1,531,960				1,695,560				501,670				541,760
Loads hauled via BCO Independent Contractors included in total truck transportation			620,640				689,260				198,340				225,350
Revenue per load:
Truck transportation
Truckload:
Van equipment		$	2,085			$	2,196			$	2,098			$	2,134
Unsided/platform equipment			3,016				2,954				3,128				2,994
Less-than-truckload			653				674				663				677
Other truck transportation (1)			2,120				2,415				2,161				2,181
Total truck transportation			2,200				2,272				2,246				2,230
Rail intermodal			3,080				3,339				2,980				3,412
Ocean and air cargo carriers			7,723				7,973				8,598				7,627
Revenue per load on loads hauled via BCO Independent Contractors		$	2,215			$	2,240			$	2,303			$	2,258
Revenue by capacity type (as a % of total revenue):
Truck capacity providers:
BCO Independent Contractors			38	%			38	%			38	%			39	%
Truck Brokerage Carriers			52	%			54	%			52	%			52	%
Rail intermodal			2	%			2	%			2	%			2	%
Ocean and air cargo carriers			6	%			5	%			6	%			5	%
Other			2	%			2	%			2	%			2	%

 

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(1)

Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee.

(2)	Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro.

Expenses

Purchased transportation

Also critical to the Company’s success is its ability to secure capacity, particularly truck capacity, at rates that allow the Company to profitably transport customers’ freight. The following table summarizes the number of available truck capacity providers on the dates indicated:

 

		September 28, 2024				September 30, 2023
BCO Independent Contractors			8,266				9,455
Truck Brokerage Carriers:
Approved and active (1)			44,828				51,717
Other approved			25,714				27,925
			70,542				79,642
Total available truck capacity providers			78,808				89,097
Trucks provided by BCO Independent Contractors			9,027				10,253

⁽¹⁾ Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end.

Purchased transportation represents the amount a BCO Independent Contractor or other third party capacity provider is paid to haul freight. The amount of purchased transportation paid to a BCO Independent Contractor is primarily based on a contractually agreed-upon percentage of revenue generated by loads hauled by the BCO Independent Contractor. Purchased transportation paid to a Truck Brokerage Carrier is based on either a negotiated rate for each load hauled or, to a lesser extent, a contractually agreed-upon fixed rate per load. Purchased transportation paid to railroads and ocean cargo carriers is based on either a negotiated rate for each load hauled or a contractually agreed-upon fixed rate per load. Purchased transportation paid to air cargo carriers is generally based on a negotiated rate for each load hauled. Purchased transportation as a percentage of revenue for truck brokerage, rail intermodal and ocean cargo services is normally higher than that of BCO Independent Contractor and air cargo services. Purchased transportation is the largest component of costs and expenses and, on a consolidated basis, increases or decreases as a percentage of consolidated revenue in proportion to changes in the percentage of consolidated revenue generated through BCO Independent Contractors and other third party capacity providers and external revenue from the insurance segment, consisting of reinsurance premiums. Purchased transportation as a percent of revenue also increases or decreases in relation to the availability of truck brokerage capacity and with changes in the price of fuel on revenue generated from shipments hauled by Truck Brokerage Carriers. The Company passes 100% of fuel surcharges billed to customers for freight hauled by BCO Independent Contractors to its BCO Independent Contractors. These fuel surcharges are excluded from revenue and the cost of purchased transportation. Purchased transportation costs are recognized over the freight transit period as the performance obligation to the customer is completed.

Commissions to agents

Commissions to agents are based on contractually agreed-upon percentages of (i) revenue, (ii) revenue less the cost of purchased transportation, or (iii) revenue less a contractually agreed upon percentage of revenue retained by Landstar and the cost of purchased transportation (the “retention contracts”). Commissions to agents as a percentage of consolidated revenue vary directly with fluctuations in the percentage of consolidated revenue generated by the various modes of transportation and reinsurance premiums and, in general, vary inversely with changes in the amount of purchased transportation as a percentage of revenue on services provided by Truck Brokerage Carriers, railroads, air cargo carriers and ocean cargo carriers. Commissions to agents are recognized over the freight transit period as the performance obligation to the customer is completed.

 

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Other operating costs, net of gains on asset sales/dispositions

Maintenance costs for Company-provided trailing equipment, the provision for uncollectible advances and other receivables due from BCO Independent Contractors and independent commission sales agents and recruiting and qualification costs for BCO Independent Contractors are the largest components of other operating costs. Also included in other operating costs are trailer rental costs and gains/losses, if any, on sales of Company-owned trailing equipment.

Insurance and claims

With respect to insurance and claims cost, potential liability associated with accidents in the trucking industry is severe and occurrences are unpredictable.

Landstar retains liability through a self-insured retention for commercial trucking claims up to $5 million per occurrence. Effective May 1, 2023, the Company entered into a three year commercial auto liability insurance arrangement for losses incurred between $5 million and $10 million (the “2023 Initial Excess Policy”) with a third party insurance company. For commercial trucking claims incurred on or after May 1, 2023 through April 30, 2026, the 2023 Initial Excess Policy provides for an aggregate deductible of $18 million over the thirty-six-month term ending April 30, 2026. After payment of the deductible, the 2023 Initial Excess Policy provides for a limit for a single loss of $5 million, with an aggregate limit of $15 million for the thirty-six-month term ending April 30, 2026.

The Company also maintains third party insurance arrangements providing excess coverage for commercial trucking liabilities in excess of $10 million. These third party arrangements provide coverage on a per occurrence or aggregated basis. Over the past decade, there has been a significant increase in the occurrence of trials in courts throughout the United States involving catastrophic injury and fatality claims against commercial motor carriers that have resulted in verdicts in excess of $10 million. Within the transportation logistics industry, these verdicts are often referred to as “Nuclear Verdicts.” The increase in Nuclear Verdicts has had a significant impact on the cost of commercial auto liability claims throughout the United States. Due to the increasing cost of commercial auto liability claims, the availability of excess coverage has significantly decreased, and the pricing associated with such excess coverage, to the extent available, has significantly increased. Since the annual policy year ended April 30, 2020, as compared to the annual policy year ending April 30, 2025, the Company experienced an increase of approximately $22 million, or over 400%, in the premiums charged by third party insurance companies to the Company for excess coverage for commercial trucking liabilities in excess of $10 million.

Moreover, the Company from year to year manages the level of its financial exposure to commercial trucking claims in excess of $10 million, including through the use of additional self-insurance, deductibles, aggregate loss limits, quota shares and other arrangements with third party insurance companies, based on the availability of coverage within certain excess insurance coverage layers and estimated cost differentials between proposed premiums from third party insurance companies and historical and actuarially projected losses experienced by the Company at various levels of excess insurance coverage. For example, with respect to a single hypothetical claim in the amount of $65 million incurred during the annual policy year ending April 30, 2025, the Company would have an aggregate financial exposure of approximately $30 million. Furthermore, the Company’s third party insurance arrangements provide excess coverage up to an uppermost coverage layer, in excess of which the Company retains additional financial exposure. No assurances can be given that the availability of excess coverage for commercial trucking claims will not continue to deteriorate, that the pricing associated with such excess coverage, to the extent available, will not continue to increase, nor that insurance coverage from third party insurers for excess coverage of commercial trucking claims will even be available on commercially reasonable terms at certain levels. Moreover, the occurrence of a Nuclear Verdict, or the settlement of a catastrophic injury and/or fatality claim that could have otherwise resulted in a Nuclear Verdict, could have a material adverse effect on Landstar’s cost of insurance and claims and its results of operations.

Further, the Company retains liability of up to $2,000,000 for each general liability claim, $250,000 for each workers’ compensation claim and up to $250,000 for each cargo claim. In addition, under reinsurance arrangements by Signature of certain risks of the Company’s BCO Independent Contractors, the Company retains liability of up to $500,000, $1,000,000 or $2,000,000 with respect to certain occupational accident claims and up to $750,000 with respect to certain workers’ compensation claims. The Company’s exposure to liability associated with accidents incurred by Truck Brokerage Carriers, railroads and air and ocean cargo carriers who transport freight on behalf of the Company is reduced by various factors including the extent to which such carriers maintain their own insurance coverage. A material increase in the frequency or severity of accidents, cargo claims or workers’ compensation claims or the material unfavorable development of existing claims could have a material adverse effect on Landstar’s cost of insurance and claims and its results of operations.

 

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Selling, general and administrative

During the thirty-nine-week period ended September 28, 2024, employee compensation and benefits accounted for approximately 64% of the Company’s selling, general and administrative costs. Employee compensation and benefits include wages and employee benefit costs as well as incentive compensation and stock-based compensation expense. Incentive compensation and stock-based compensation expense is highly variable in nature in comparison to wages and employee benefit costs.

Depreciation and amortization

Depreciation and amortization primarily relate to depreciation of trailing equipment and information technology hardware and software.

Costs of revenue

The Company incurs costs of revenue related to the transportation of freight and, to a much lesser extent, to reinsurance premiums received by Signature. Costs of revenue include variable costs of revenue and other costs of revenue. Variable costs of revenue include purchased transportation and commissions to agents, as these costs are entirely variable on a shipment-by-shipment basis. Other costs of revenue include fixed costs of revenue and semi-variable costs of revenue, where such costs may vary over time based on certain economic factors or operational metrics such as the number of Company-controlled trailers, the number of BCO Independent Contractors, the frequency and severity of insurance claims, the number of miles traveled by BCO Independent Contractors, or the number and/or scale of information technology projects in process or in-service to support revenue generating activities, rather than on a shipment-by-shipment basis. Other costs of revenue associated with the transportation of freight include: (i) other operating costs, primarily consisting of trailer maintenance, the provision for uncollectible advances and other receivables due from BCO Independent Contractors and independent commission sales agents and BCO Independent Contractor recruiting and qualification costs, as reported in the Company’s Consolidated Statements of Income, (ii) transportation-related insurance premiums paid and claim costs incurred, included as a portion of insurance and claims in the Company’s Consolidated Statements of Income, (iii) costs incurred related to internally developed software including ASC 350-40 amortization, implementation costs, hosting costs and other support costs utilized to support the Company’s independent commission sales agents, third party capacity providers, and customers, included as a portion of depreciation and amortization and of selling, general and administrative in the Company’s Consolidated Statements of Income; and (iv) depreciation on Company-owned trailing equipment, included as a portion of depreciation and amortization in the Company’s Consolidated Statements of Income. Other costs of revenue associated with reinsurance premiums received by Signature are comprised of broker commissions and other fees paid related to the administration of insurance programs to BCO Independent Contractors and are included in selling, general and administrative in the Company’s Consolidated Statements of Income. In addition to costs of revenue, the Company incurs various other costs relating to its business, including most selling, general and administrative costs and portions of costs attributable to insurance and claims and depreciation and amortization. Management continually monitors all components of the costs incurred by the Company and establishes annual cost budgets that, in general, are used to benchmark costs incurred on a monthly basis.

Gross Profit, Variable Contribution, Gross Profit Margin and Variable Contribution Margin

The following table sets forth calculations of gross profit, defined as revenue less costs of revenue, and gross profit margin, defined as gross profit divided by revenue, for the periods indicated. The Company refers to revenue less variable costs of revenue as “variable contribution” and variable contribution divided by revenue as “variable contribution margin.” Variable contribution and variable contribution margin are each non-GAAP financial measures. The closest comparable GAAP financial measures to variable contribution and variable contribution margin are, respectively, gross profit and gross profit margin. The Company believes variable contribution and variable contribution margin are useful measures of the variable costs that we incur at a shipment-by-shipment level attributable to our transportation network of third-party capacity providers and independent commission sales agents in order to provide services to our customers. The Company believes variable contribution and variable contribution margin are important performance measurements and management considers variable contribution and variable contribution margin in evaluating the Company’s financial performance and in its decision-making, such as budgeting for infrastructure, trailing equipment and selling, general and administrative costs.

 

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The reconciliations of gross profit to variable contribution and gross profit margin to variable contribution margin are each presented below:

 

		Thirty-Nine Weeks Ended								Thirteen Weeks Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Revenue		$	3,609,915			$	4,098,877			$	1,213,867			$	1,289,345
Costs of revenue:
Purchased transportation			2,799,384				3,141,234				943,805				986,743
Commissions to agents			295,801				363,397				98,703				115,244
Variable costs of revenue			3,095,185				3,504,631				1,042,508				1,101,987
Trailing equipment depreciation			20,764				24,240				6,930				7,721
Information technology costs			18,115				19,791				6,129				6,298
Insurance-related costs (1)			85,122				88,484				30,463				30,102
Other operating costs			44,138				40,998				15,144				15,158
Other costs of revenue			168,139				173,513				58,666				59,279
Total costs of revenue			3,263,324				3,678,144				1,101,174				1,161,266
Gross profit		$	346,591			$	420,733			$	112,693			$	128,079
Gross profit margin			9.6	%			10.3	%			9.3	%			9.9	%
Plus: other costs of revenue			168,139				173,513				58,666				59,279
Variable contribution		$	514,730			$	594,246			$	171,359			$	187,358
Variable contribution margin			14.3	%			14.5	%			14.1	%			14.5	%

 

(1)

Insurance-related costs in the table above include (i) other costs of revenue related to the transportation of freight that are included as a portion of insurance and claims in the Company’s Consolidated Statements of Income and (ii) certain other costs of revenue related to reinsurance premiums received by Signature that are included as a portion of selling, general and administrative in the Company’s Consolidated Statements of Income. Insurance and claims costs included in other costs of revenue relating to the transportation of freight primarily consist of insurance premiums paid for commercial auto liability, general liability, cargo and other lines of coverage related to the transportation of freight and the related cost of claims incurred under those programs, and, to a lesser extent, the cost of claims incurred under insurance programs available to BCO Independent Contractors that are reinsured by Signature. Other insurance and claims costs included in costs of revenue that are included in selling, general and administrative in the Company’s Consolidated Statements of Income consist of brokerage commissions and other fees incurred by Signature relating to the administration of insurance programs available to BCO Independent Contractors that are reinsured by Signature.

In general, variable contribution margin on revenue generated by BCO Independent Contractors represents a fixed percentage due to the nature of the contracts that pay a fixed percentage of revenue to both the BCO Independent Contractors and independent commission sales agents. For revenue generated by Truck Brokerage Carriers, variable contribution margin may be either a fixed or variable percentage, depending on the contract with each individual independent commission sales agent. Variable contribution margin on revenue generated from shipments hauled by railroads, air cargo carriers, ocean cargo carriers and Truck Brokerage Carriers, other than those under retention contracts, is variable in nature, as the Company’s contracts with independent commission sales agents provide commissions to agents at a contractually agreed upon percentage of the amount represented by revenue less purchased transportation for these types of shipments. Approximately 43% of the Company’s consolidated revenue in the thirty-nine-week period ended September 28, 2024 was generated under transactions that pay a fixed percentage of revenue to the third party capacity provider and/or agents while 57% was generated under transactions that pay a variable percentage of revenue to the third party capacity provider and/or agents.

Operating income as a percentage of gross profit and operating income as a percentage of variable contribution

The following table presents operating income as a percentage of gross profit and operating income as a percentage of variable contribution. The Company’s operating income as a percentage of variable contribution is a non-GAAP financial measure calculated as operating income divided by variable contribution. The Company believes that operating income as a percentage of variable contribution is useful and meaningful to investors for the following principal reasons: (i) the variable costs of revenue for a significant portion of the business are highly influenced by short-term market-based trends in the freight transportation industry, whereas other costs, including other costs of revenue, are much less impacted by short-term freight market trends; (ii) disclosure of this measure allows investors to better understand the underlying trends in the Company’s results of operations; (iii) this measure is meaningful to investors’ evaluations of the Company’s management of costs attributable to operations other than the purely variable costs associated with purchased transportation and commissions to agents that the Company incurs to provide services to our customers; and (iv) management considers this financial information in its decision-making, such as budgeting for infrastructure, trailing equipment and selling, general and administrative costs.

 

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		Thirty-Nine Weeks Ended								Thirteen Weeks Ended
		September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
Gross profit		$	346,591			$	420,733			$	112,693			$	128,079
Operating income		$	191,136			$	269,582			$	63,116			$	80,348
Operating income as % of gross profit			55.1	%			64.1	%			56.0	%			62.7	%
Variable contribution		$	514,730			$	594,246			$	171,359			$	187,358
Operating income		$	191,136			$	269,582			$	63,116			$	80,348
Operating income as % of variable contribution			37.1	%			45.4	%			36.8	%			42.9	%

The decrease in operating income as a percentage of gross profit from the 2023 thirty-nine-week period to the 2024 thirty-nine-week period and from the 2023 thirteen-week period to the 2024 thirteen-week period resulted from the decrease of operating income at a more rapid percentage rate than the decrease in gross profit, primarily due to the impact of the Company’s fixed cost infrastructure, principally certain components of selling, general and administrative costs, in comparison to a smaller gross profit base.

The decrease in operating income as a percentage of variable contribution from the 2023 thirty-nine-week period to the 2024 thirty-nine-week period and from the 2023 thirteen-week period to the 2024 thirteen-week period resulted from the decrease of operating income at a more rapid percentage rate than the decrease in variable contribution, primarily due to the impact of the Company’s fixed cost infrastructure, principally certain components of selling, general and administrative costs, in comparison to a smaller variable contribution base.

Also, as previously mentioned, the Company reports two operating segments: the transportation logistics segment and the insurance segment. External revenue at the insurance segment, representing reinsurance premiums, has historically been relatively consistent on an annual basis at 2% or less of consolidated revenue and generally corresponds directly with the number of trucks provided by BCO Independent Contractors. The discussion of cost line items in Management’s Discussion and Analysis of Financial Condition and Results of Operations considers the Company’s costs on a consolidated basis rather than on a segment basis. Management believes this presentation format is the most appropriate to assist users of the financial statements in understanding the Company’s business for the following reasons: (1) the insurance segment has no other operating costs; (2) discussion of insurance and claims at either segment without reference to the other may create confusion amongst investors and potential investors due to intercompany arrangements and specific deductible programs that affect comparability of financial results by segment between various fiscal periods but that have no effect on the Company from a consolidated reporting perspective; (3) selling, general and administrative costs of the insurance segment comprise less than 10% of consolidated selling, general and administrative costs and have historically been relatively consistent on a year-over-year basis; and (4) the insurance segment has no depreciation and amortization.

THIRTY-NINE WEEKS ENDED SEPTEMBER 28, 2024 COMPARED TO THIRTY-NINE WEEKS ENDED SEPTEMBER 30, 2023

Revenue for the 2024 thirty-nine-week period was $3,609,915,000, a decrease of $488,962,000, or 12%, compared to the 2023 thirty-nine-week period. Transportation revenue decreased $481,883,000, or 12%. The decrease in transportation revenue was attributable to a decreased number of loads hauled of approximately 10% and decreased revenue per load of approximately 3% compared to the 2023 thirty-nine-week period. Reinsurance premiums were $47,974,000 and $55,053,000 for the 2024 and 2023 thirty-nine-week periods, respectively. The decrease in revenue from reinsurance premiums was primarily attributable to a decrease in the average number of trucks provided by BCO Independent Contractors in the 2024 thirty-nine-week period compared to the 2023 thirty-nine-week period.

 

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Truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers (together, the “third party truck capacity providers”) for the 2024 thirty-nine-week period was $3,265,745,000, representing 90% of total revenue, a decrease of $478,672,000, or 13%, compared to the 2023 thirty-nine-week period. The number of loads hauled by third party truck capacity providers decreased approximately 10% compared to the 2023 thirty-nine-week period, and revenue per load on loads hauled by third party truck capacity providers decreased approximately 3% in the 2024 thirty-nine-week period compared to the 2023 thirty-nine-week period.

The decrease in the number of loads hauled via truck compared to the 2023 thirty-nine-week period was primarily due to a broad-based decrease in demand for the Company’s truck transportation services. Loads hauled via other truck transportation services decreased 27%, less-than-truckload loadings decreased 11%, loads hauled via van equipment decreased 8% and loads hauled via unsided/platform equipment decreased 7% as compared to the 2023 thirty-nine-week period.

The decrease in revenue per load on loads hauled via truck was primarily due to a softer freight demand environment experienced during the 2024 thirty-nine-week period. Revenue per load on loads hauled via other truck transportation services decreased 12%, on loads hauled via van equipment decreased 5% and on less-than-truckload loadings decreased 3%, while revenue per load on loads hauled via unsided/platform equipment increased 2% as compared to the 2023 thirty-nine-week period. The increase in revenue per load on loads hauled via unsided/platform equipment of 2% was favorably impacted by an increase in the percentage of revenue contributed by heavy/specialized equipment, which typically has a higher revenue per load.

Fuel surcharges billed to customers on revenue generated by BCO Independent Contractors are excluded from revenue. Fuel surcharges on Truck Brokerage Carrier revenue identified separately in billings to customers and included as a component of Truck Brokerage Carrier revenue were $89,862,000 and $112,879,000 in the 2024 and 2023 thirty-nine-week periods, respectively. It should be noted that billings to many customers of the Company’s truck brokerage services include a single all-in rate that do not separately identify fuel surcharges on loads hauled via Truck Brokerage Carriers. Accordingly, the overall impact of changes in fuel prices on revenue and revenue per load on loads hauled via truck is likely to be greater than that indicated.

Transportation revenue generated by rail intermodal, air cargo and ocean cargo carriers (collectively, the “multimode capacity providers”) for the 2024 thirty-nine-week period was $267,710,000, or 7% of total revenue, a decrease of $8,601,000, or 3%, compared to the 2023 thirty-nine-week period. Revenue per load on revenue generated by multimode capacity providers decreased approximately 3% in the 2024 thirty-nine-week period compared to the 2023 thirty-nine-week period, while the number of loads hauled by multimode capacity providers was approximately equal to the 2023 thirty-nine-week period. Revenue per load on loads hauled via air and rail intermodal decreased 58% and 8% respectively, while revenue per load on loads hauled via ocean increased 11%, during the 2024 thirty-nine-week period as compared to the 2023 thirty-nine-week period. The decrease in revenue per load on loads hauled by air cargo carriers was primarily attributable to the impact of high value air loadings at one specific customer during the 2023 thirty-nine-week period. The decrease in revenue per load on loads hauled by rail intermodal and the increase in revenue per load on loads hauled via ocean were both broad-based across many customers. Revenue per load on revenue generated by multimode capacity providers is influenced by many factors, including revenue mix among the various modes of transportation used, length of haul, complexity of freight, density of freight lanes, fuel costs and availability of capacity.

Purchased transportation was 77.5% and 76.6% of revenue in the 2024 and 2023 thirty-nine-week periods, respectively. The increase in purchased transportation as a percentage of revenue was primarily due to an increased rate of purchased transportation on revenue generated by Truck Brokerage Carriers, partially offset by an increased percentage of revenue generated by BCO Independent Contractors, which typically has a lower rate of purchased transportation than Truck Brokerage Carriers. Commissions to agents were 8.2% and 8.9% of revenue in the 2024 and 2023 thirty-nine-week periods, respectively. The decrease in commissions to agents as a percentage of revenue was primarily attributable to an increased cost of purchased transportation as a percentage of revenue on revenue generated by Truck Brokerage Carriers.

Investment income was $10,988,000 and $6,874,000 in the 2024 and 2023 thirty-nine-week periods, respectively. The increase in investment income was attributable to higher average rates of return on investments in the 2024 thirty-nine-week period and a higher average investment balance held by the insurance segment during the 2024 thirty-nine-week period.

Other operating costs increased $3,140,000 in the 2024 thirty-nine-week period compared to the 2023 thirty-nine-week period. The increase in other operating costs compared to the prior year was primarily due to decreased gains on sales of operating property and an increased provision for contractor bad debt.

Insurance and claims costs decreased $3,141,000 in the 2024 thirty-nine-week period compared to the 2023 thirty-nine-week period. The decrease in insurance and claims expense compared to the prior year was primarily due to decreased BCO miles traveled and decreased frequency of trucking accidents during the 2024 thirty-nine-week period, partially offset by increased net unfavorable development of prior years’ claims in the 2024 thirty-nine-week period. During the 2024 and 2023 thirty-nine-week periods, insurance and claims costs included $6,666,000 and $5,154,000 of net unfavorable adjustments to prior years’ claims estimates, respectively.

 

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Selling, general and administrative costs increased $3,542,000 in the 2024 thirty-nine-week period compared to the 2023 thirty-nine-week period. The increase in selling, general and administrative costs compared to prior year was primarily attributable to increased employee benefit costs, primarily attributable to increased medical and pharmacy costs under the self-insured portion of the Company’s medical plan, the impact of Chief Executive Officer (“CEO”) transition costs and an increased provision for incentive compensation, partially offset by decreased project consulting fees. Included in selling, general and administrative costs was incentive compensation expense of $2,184,000 and $483,000 for the 2024 and 2023 thirty-nine-week periods, respectively.

Depreciation and amortization decreased $497,000 in the 2024 thirty-nine-week period compared to the 2023 thirty-nine-week period. The decrease in depreciation and amortization expense was primarily due to decreased trailing equipment depreciation, partially offset by increased depreciation on new and updated digital tools deployed for use by the Company’s network of agents, capacity providers and employees.

Net interest and debt income increased $2,376,000 in the 2024 thirty-nine-week period compared to the 2023 thirty-nine-week period. The increase in interest and debt income was primarily attributable to increased interest income earned on cash balances held by the transportation logistics segment and decreased interest expense related to finance lease obligations.

The provisions for income taxes for the 2024 and 2023 thirty-nine-week periods were based on estimated annual effective income tax rates of 24.3% and 24.4%, respectively, adjusted for discrete events, such as benefits resulting from stock-based awards. The effective income tax rate for the 2024 thirty-nine-week period was 23.4%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2024 period primarily attributable to state taxes, partially offset by federal tax credits. The effective income tax rate for the 2023 thirty-nine-week period was 24.0%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2023 period primarily attributable to state taxes.

Net income was $149,753,000, or $4.21 per basic and diluted share, in the 2024 thirty-nine-week period. Net income was $206,407,000, or $5.74 per basic and diluted share, in the 2023 thirty-nine-week period.

THIRTEEN WEEKS ENDED SEPTEMBER 28, 2024 COMPARED TO THIRTEEN WEEKS ENDED SEPTEMBER 30, 2023

Revenue for the 2024 thirteen-week period was $1,213,867,000, a decrease of $75,478,000, or 6%, compared to the 2023 thirteen-week period. Transportation revenue decreased $73,051,000, or 6%. The decrease in transportation revenue was attributable to a decreased number of loads hauled of approximately 7%, partially offset by an increased revenue per load of approximately 2% compared to the 2023 thirteen-week period. Reinsurance premiums were $15,533,000 and $17,960,000 for the 2024 and 2023 thirteen-week periods, respectively. The decrease in revenue from reinsurance premiums was primarily attributable to a decrease in the average number of trucks provided by BCO Independent Contractors in the 2024 thirteen-week period compared to the 2023 thirteen-week period.

Truck transportation revenue generated by third party truck capacity providers for the 2024 thirteen-week period was $1,091,124,000, representing 90% of total revenue, a decrease of $82,640,000, or 7%, compared to the 2023 thirteen-week period. The number of loads hauled by third party truck capacity providers decreased approximately 8% compared to the 2023 thirteen-week period, while revenue per load on loads hauled by third party truck capacity providers increased approximately 1% in the 2024 thirteen-week period compared to the 2023 thirteen-week period.

The decrease in the number of loads hauled via truck compared to the 2023 thirteen-week period was primarily due to a broad-based decrease in demand for the Company’s truck transportation services. Less-than-truckload loadings decreased 12%, loads hauled via other truck transportation services decreased 8%, loads hauled via van equipment decreased 8% and loads hauled via unsided/platform equipment decreased 6% as compared to the 2023 thirteen-week period.

The increase in revenue per load on loads hauled via truck was primarily due to an increased average length of haul on truckload shipments during the 2024 thirteen-week period. Revenue per load on loads hauled via unsided/platform equipment increased 4%, while revenue per load on less-than-truckload loadings decreased 2%, on loads hauled via van equipment decreased 2% and on loads hauled via other truck transportation services decreased 1% as compared to the 2023 thirteen-week period.

 

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Fuel surcharges billed to customers on revenue generated by BCO Independent Contractors are excluded from revenue. Fuel surcharges on Truck Brokerage Carrier revenue identified separately in billings to customers and included as a component of Truck Brokerage Carrier revenue were $29,560,000 and $33,584,000 in the 2024 and 2023 thirteen-week periods, respectively.

Transportation revenue generated by multimode capacity providers for the 2024 thirteen-week period was $97,328,000, or 8% of total revenue, an increase of $8,440,000, or 9%, compared to the 2023 thirteen-week period. Revenue per load on revenue generated by multimode capacity providers increased approximately 6% in the 2024 thirteen-week period compared to the 2023 thirteen-week period, and the number of loads hauled by multimode capacity providers increased approximately 3% over the same period. Revenue per load on loads hauled via ocean increased 28%, while revenue per load on loads hauled via air and rail intermodal decreased 52% and 13%, respectively, during the 2024 thirteen-week period as compared to the 2023 thirteen-week period. The increase in revenue per load on loads hauled via ocean was broad-based across many customers and reflected the impact of various geopolitical events on ocean shipping rates, generally. The decrease in revenue per load on loads hauled by air cargo carriers was primarily attributable to the impact of high value air loadings at one specific customer during the 2023 thirteen-week period. The decrease in revenue per load on loads hauled by rail intermodal was broad-based. Revenue per load on revenue generated by multimode capacity providers is influenced by many factors, including revenue mix among the various modes of transportation used, length of haul, complexity of freight, density of freight lanes, fuel costs and availability of capacity. The increase in the number of loads hauled by multimode capacity providers was due to increases in air, rail intermodal and ocean loadings of 10%, 4% and 1%, respectively. The 10% increase in air loadings was primarily attributable to increased loadings at one specific agency. The 4% increase in rail intermodal loadings was primarily attributable to increased loadings at three specific agencies. The 1% increase in ocean loadings was primarily attributable to increased loadings at one specific customer.

Purchased transportation was 77.8% and 76.5% of revenue in the 2024 and 2023 thirteen-week periods, respectively. The increase in purchased transportation as a percentage of revenue was primarily due to (i) an increased rate of purchased transportation on revenue generated by Truck Brokerage Carriers and (ii) an increased percentage of revenue generated by Truck Brokerage Carriers and multimode capacity providers, which typically have a higher rate of purchased transportation than that of BCO Independent Contractors. Commissions to agents were 8.1% and 8.9% of revenue in the 2024 and 2023 thirteen-week periods, respectively. The decrease in commissions to agents as a percentage of revenue was primarily attributable to an increased cost of purchased transportation as a percentage of revenue on revenue generated by Truck Brokerage Carriers.

Investment income was $3,922,000 and $3,022,000 in the 2024 and 2023 thirteen-week periods, respectively. The increase in investment income was attributable to higher average rates of return on investments in the 2024 thirteen-week period and a higher average investment balance held by the insurance segment during the 2024 thirteen-week period.

Other operating costs decreased $14,000 in the 2024 thirteen-week period compared to the 2023 thirteen-week period. The decrease in other operating costs compared to the prior year was primarily due to decreased trailing equipment maintenance costs, almost entirely offset by an increased provision for contractor bad debt and decreased gains on sales of operating property.

Insurance and claims costs increased $858,000 in the 2024 thirteen-week period compared to the 2023 thirteen-week period. The increase in insurance and claims expense compared to the prior year was primarily due to increased net unfavorable development of prior years’ claims in the 2024 thirteen-week period, partially offset by decreased BCO miles traveled and decreased frequency of current year trucking claims during the 2024 thirteen-week period. During the 2024 and 2023 thirteen-week periods, insurance and claims costs included $4,550,000 and $2,323,000 of net unfavorable adjustments to prior years’ claims estimates, respectively.

Selling, general and administrative costs increased $277,000 in the 2024 thirteen-week period compared to the 2023 thirteen-week period. The increase in selling, general and administrative costs compared to prior year was primarily attributable to increased employee benefit costs, primarily attributable to increased medical and pharmacy costs under the self-insured portion of the Company’s medical plan, and an increased provision for incentive compensation, partially offset by decreased stock-based compensation expense and decreased project consulting fees. Included in selling, general and administrative costs was incentive compensation expense of $729,000 and $160,000 for the 2024 and 2023 thirteen-week periods, respectively, and stock-based compensation (benefit) expense of ($43,000) and $1,144,000 for the 2024 and 2023 thirteen-week periods, respectively.

Depreciation and amortization increased $1,012,000 in the 2024 thirteen-week period compared to the 2023 thirteen-week period. The increase in depreciation and amortization expense was primarily due to increased depreciation on new and updated digital tools deployed for use by the Company’s network of agents, capacity providers and employees, partially offset by decreased trailing equipment depreciation.

 

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Net interest and debt income increased $123,000 in the 2024 thirteen-week period compared to the 2023 thirteen-week period. The increase in interest and debt income was primarily attributable to increased interest income earned on cash balances held by the transportation logistics segment, partially offset by increased interest expense related to finance lease obligations.

The provisions for income taxes for the 2024 and 2023 thirteen-week periods were based on estimated annual effective income tax rates of 24.3% and 24.4%, respectively, adjusted for discrete events, such as benefits resulting from stock-based awards. The effective income tax rate for the 2024 thirteen-week period was 22.2%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2024 period primarily attributable to state taxes, partially offset by federal tax credits. The effective income tax rate for the 2023 thirteen-week period was 24.3%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2023 period primarily attributable to state taxes.

Net income was $50,033,000, or $1.41 per basic and diluted share, in the 2024 thirteen-week period. Net income was $61,653,000, or $1.71 per basic and diluted share, in the 2023 thirteen-week period.

CAPITAL RESOURCES AND LIQUIDITY

Working capital and the ratio of current assets to current liabilities were $718,742,000 and 2.2 to 1, respectively, at September 28, 2024, compared with $677,517,000 and 2.0 to 1, respectively, at December 30, 2023. Landstar has historically operated with current ratios within the range of 1.5 to 1 to 2.0 to 1. Cash provided by operating activities was $225,439,000 in the 2024 thirty-nine-week period compared with $303,785,000 in the 2023 thirty-nine-week period. The decrease in cash flow provided by operating activities was primarily attributable to decreased net income and decreased favorable net working capital impacts in connection with decreased net receivables, defined as accounts receivable less accounts payable.

The Company declared and paid $1.02 per share, or $36,325,000 in the aggregate, in cash dividends during the thirty-nine-week period ended September 28, 2024 and, during such period, also paid $71,433,000 of dividends payable which were declared in December 2023 and included in current liabilities in the consolidated balance sheet at December 30, 2023. The Company declared and paid $0.93 per share, or $33,448,000 in the aggregate, in cash dividends during the thirty-nine-week period ended September 30, 2023 and, during such period, also paid $71,854,000 of dividends payable which were declared in December 2022 and included in current liabilities in the consolidated balance sheet at December 31, 2022. During the thirty-nine-week period ended September 28, 2024, the Company purchased 436,919 shares of its common stock at a total cost of $79,388,000, including $78,697,000 in cash purchases and accrued excise tax of $691,000, which is included in other current liabilities in the consolidated balance sheet at September 28, 2024. During the thirty-nine-week period ended September 30, 2023, the Company purchased 89,661 shares of its common stock at a total cost of $15,433,000. As of September 28, 2024, the Company may purchase in the aggregate up to 2,563,081 shares of its common stock under its authorized stock purchase programs. Long-term debt, including current maturities, was $72,506,000 at September 28, 2024, $1,366,000 higher than at December 30, 2023.

Shareholders’ equity was $1,015,918,000, or 93% of total capitalization (defined as long-term debt including current maturities plus equity), at September 28, 2024, compared to $983,923,000, or 93% of total capitalization, at December 30, 2023. The increase in shareholders’ equity was primarily the result of net income, partially offset by purchases of shares of the Company’s common stock and dividends declared by the Company in the 2024 thirty-nine-week period.

On July 1, 2022, Landstar entered into a second amended and restated credit agreement with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent (as further amended as of June 21, 2024, the “Credit Agreement”). The Credit Agreement, which matures July 1, 2027, provides for borrowing capacity in the form of a revolving credit facility of $300,000,000, $45,000,000 of which may be utilized in the form of letters of credit. The Credit Agreement also includes an “accordion” feature providing for a possible increase of up to an aggregate amount of borrowing capacity of $600,000,000.

The Credit Agreement contains a number of covenants that limit, among other things, the incurrence of additional indebtedness. The Company is required to, among other things, maintain a minimum fixed charge coverage ratio, as described in the Credit Agreement, and maintain a Leverage Ratio, as defined in the Credit Agreement, below a specified maximum. The Credit Agreement provides for a restriction on cash dividends and other distributions to stockholders on the Company’s capital stock to the extent there is a default under the Credit Agreement. In addition, the Credit Agreement under certain circumstances limits the amount of such cash dividends and other distributions to stockholders to the extent that, after giving effect to any payment made to effect such cash dividend or other distribution, the Leverage Ratio would exceed 2.5 to 1 on a pro forma basis as of the end of the Company’s most recently completed fiscal quarter. The Credit Agreement provides for an event of default in the event that, among other things, a person or group acquires 35% or more of the outstanding capital stock of the Company or obtains power to elect a majority of the Company’s directors or the directors cease to consist of a majority of Continuing Directors, as defined in the Credit Agreement. None of these covenants are presently considered by the Company to be materially restrictive to the Company’s operations, capital resources or liquidity. The Company is currently in compliance with all of the debt covenants under the Credit Agreement.

 

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At September 28, 2024, the Company had no borrowings outstanding and $35,250,000 of letters of credit outstanding under the Credit Agreement. At September 28, 2024, there was $264,750,000 available for future borrowings under the Credit Agreement and access to an additional $300,000,000 under the Credit Agreement’s “accordion” feature. In addition, the Company has $73,117,000 in letters of credit outstanding as collateral for insurance claims that are secured by investments totaling $81,241,000 at September 28, 2024. Investments, all of which are carried at fair value, include primarily investment-grade bonds, asset-backed securities and commercial paper having maturities of up to five years. Fair value of investments is based primarily on quoted market prices. See “Notes to Consolidated Financial Statements” included herein for further discussion on measurement of fair value of investments.

Historically, the Company has generated sufficient operating cash flow to meet its debt service requirements, fund continued growth, both organic and through acquisitions, complete or execute share purchases of its common stock under authorized share purchase programs, pay dividends and meet working capital needs. As an asset-light provider of integrated transportation management solutions, the Company’s annual capital requirements for operating property are generally for trailing equipment and information technology hardware and software. In addition, a significant portion of the trailing equipment available to the Company is provided by third party capacity providers, thereby reducing the Company’s capital requirements. During the 2024 thirty-nine-week period, the Company purchased $24,256,000 of operating property and acquired $24,238,000 of trailing equipment by entering into finance leases. In addition, during the 2024 thirty-nine-week period, Landstar acquired $6,690,000 of operating property for which the Company accrued a corresponding liability of $1,201,000 in accounts payable and $5,489,000 in other noncurrent liabilities as of September 28, 2024. Landstar anticipates acquiring either by purchase or lease financing during the remainder of fiscal year 2024 approximately $39,000,000 in operating property, consisting primarily of new trailing equipment to replace older trailing equipment and information technology hardware and software.

Management believes that cash flow from operations combined with the Company’s borrowing capacity under the Credit Agreement will be adequate to meet Landstar’s debt service requirements, fund continued growth, both internal and through acquisitions, pay dividends, complete the authorized share purchase programs and meet working capital needs.

LEGAL MATTERS

The Company is involved in certain claims and pending litigation arising from the normal conduct of business. Many of these claims are covered in whole or in part by insurance. Based on knowledge of the facts and, in certain cases, opinions of outside counsel, the Company believes that adequate provisions have been made for probable and reasonably estimable losses with respect to the resolution of all such claims and pending litigation and that the ultimate outcome, after provisions therefor, will not have a material adverse effect on the financial condition of the Company, but could have a material effect on the results of operations in a given quarter or year.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Landstar provides for the estimated costs of self-insured claims primarily on an actuarial basis. The amount recorded for the estimated liability for claims incurred is based upon the facts and circumstances known on the applicable balance sheet date. The ultimate resolution of these claims may be for an amount greater or less than the amount estimated by the Company. The Company continually revises its existing claim estimates as new or revised information becomes available on the status of each claim. Historically, the Company has experienced both favorable and unfavorable development of prior years’ claims estimates within its various programs. During the 2024 and 2023 thirty-nine-week periods, insurance and claims costs included $6,666,000 and $5,154,000 of net unfavorable adjustments to prior years’ claims estimates, respectively. It is reasonably likely that the ultimate outcome of settling all outstanding claims will be more or less than the estimated claims liability at September 28, 2024, primarily due to the inherent difficulty in estimating the severity of commercial trucking claims and the potential judgment or settlement amount that may be incurred in connection with the resolution of such claims.

Significant variances from the Company’s estimates for the ultimate resolution of self-insured claims could be expected to positively or negatively affect Landstar’s earnings in a given quarter or year. However, management believes that the ultimate resolution of these items, given a range of reasonably likely outcomes, will not significantly affect the long-term financial condition of Landstar or its ability to fund its continuing operations.

 

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SEASONALITY

Landstar’s operations are subject to seasonal trends common to the trucking industry. Historically, truckload shipments for the quarter ending in March are typically lower than for the quarters ending June, September and December. The COVID-19 global pandemic and related supply chain issues significantly disrupted these typical seasonal patterns. In particular, the Company’s 2022 and 2023 fiscal year results did not reflect normal seasonal patterns. No assurances can be given regarding the extent to which or when trends common to the trucking industry and Landstar’s operations, in particular, will return to more typical, pre-pandemic, seasonal patterns.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to changes in interest rates as a result of its financing activities, primarily its borrowings on its revolving credit facility, if any, and investing activities with respect to investments held by the insurance segment.

On July 1, 2022, Landstar entered into the Second Amended and Restated Credit Agreement (as further amended as of June 21, 2024, the “Credit Agreement”) with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement, which matures July 1, 2027, provides for borrowing capacity in the form of a revolving credit facility of $300,000,000, $45,000,000 of which may be utilized in the form of letters of credit. The Credit Agreement also includes an “accordion” feature providing for a possible increase of up to an aggregate amount of borrowing capacity of $600,000,000.

The revolving credit loans under the Credit Agreement as of September 28, 2024, at the option of Landstar, bear interest at (i) a forward-looking term rate based on the secured overnight financing rate plus 0.10% and an applicable margin ranging from 1.25% to 2.00%, or (ii) an alternate base rate plus an applicable margin ranging from 0.25% to 1.00%, in each case with the applicable margin determined based upon the Company’s Leverage Ratio, as defined in the Credit Agreement, at the end of the most recent applicable fiscal quarter for which financial statements have been delivered. The revolving credit facility bears a commitment fee, payable in arrears, of 0.20% to 0.30%, based on the Company’s Leverage Ratio at the end of the most recent applicable fiscal quarter for which financial statements have been delivered. During the third quarter of 2024 and as of September 28, 2024 and December 30, 2023, the Company had no borrowings outstanding under the Credit Agreement.

Long-term investments, all of which are available-for-sale and are carried at fair value, include primarily investment-grade bonds and asset-backed securities having maturities of up to five years. Assuming that the long-term portion of investments remains at $86,408,000, the balance at September 28, 2024, a hypothetical increase or decrease in interest rates of 100 basis points would not have a material impact on future earnings on an annualized basis. Short-term investments primarily consist of short-term investment-grade instruments and the current maturities of investment-grade corporate bonds and asset-backed securities. Accordingly, any future interest rate risk on these short-term investments would not be material to the Company’s operating results.

Assets and liabilities of the Company’s Canadian and Mexican operations are translated from their functional currency to U.S. dollars using exchange rates in effect at the balance sheet date and revenue and expense accounts are translated at average monthly exchange rates during the period. Adjustments resulting from the translation process are included in accumulated other comprehensive income. Transactional gains and losses arising from receivable and payable balances, including intercompany balances, in the normal course of business that are denominated in a currency other than the functional currency of the operation are recorded in the statements of income when they occur. The assets held at the Company’s Canadian and Mexican subsidiaries at September 28, 2024 were collectively, as translated to U.S. dollars, less than 3% of total consolidated assets. Accordingly, translation gains or losses of approximately 30% or less related to the Canadian and Mexican operations would not be material.

Item 4. Controls and Procedures

As of the end of the period covered by this quarterly report on Form 10-Q, an evaluation was carried out, under the supervision and with the participation of the Company’s management, including the CEO and the Chief Financial Officer (“CFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended). Based on that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of September 28, 2024 to provide reasonable assurance that information required to be disclosed by the Company in reports that it filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

 

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There were no changes in the Company’s internal control over financial reporting during the third quarter of 2024, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934, as amended, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In designing and evaluating disclosure controls and procedures, Company management recognizes that any disclosure controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because of the inherent limitation in any control system, no evaluation or implementation of a control system can provide complete assurance that all control issues and all possible instances of fraud have been or will be detected.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

See Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Legal Matters”

Item 1A. Risk Factors

For a discussion identifying risk factors and other important factors that could cause actual results to differ materially from those anticipated, see the discussions under Part I, Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023, and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Notes to Consolidated Financial Statements” in this Quarterly Report on Form 10-Q.

There have been no material changes to the Risk Factors described in Part I “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2023 as filed with the SEC.

 

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Company

The following table provides information regarding the Company’s purchase of its Common Stock during the period from June 30, 2024 to September 28, 2024, the Company’s third fiscal quarter:

 

Fiscal Period		Total Number of Shares Purchased				Average Price Paid Per Share  (1)				Total Number of Shares Purchased as Part of Publicly Announced Programs				Maximum Number of Shares That May Yet Be Purchased Under the Programs
June 29, 2024															2,684,351
June 30, 2024 – July 27, 2024			—			$	—				—				2,684,351
July 28, 2024 – August 24, 2024			32,066				186.69				32,066				2,652,285
August 25, 2024 – September 28, 2024			89,204				181.56				89,204				2,563,081
Total			121,270			$	182.91				121,270

 

(1)	The average price paid per share does not include the 1% excise tax on net stock repurchases, as applicable.

On December 7, 2021, the Landstar System, Inc. Board of Directors authorized the Company to purchase up to 1,912,824 shares of the Company’s common stock from time to time in the open market and in privately negotiated transactions. On December 6, 2022, the Landstar System, Inc. Board of Directors authorized the Company to purchase up to 1,900,826 additional shares of the Company’s common stock from time to time in the open market and in privately negotiated transactions. On December 4, 2023, the Landstar System, Inc. Board of Directors authorized the Company to purchase up to 319,332 additional shares of its common stock from time to time in the open market and in privately negotiated transactions under its share purchase program. As of September 28, 2024, the Company had authorization to purchase in the aggregate up to 2,563,081 shares of its common stock under these programs. No specific expiration date has been assigned to the December 7, 2021, December 6, 2022 or December 4, 2023 authorizations.

 

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Dividends

Landstar entered into the Second Amended and Restated Credit Agreement, dated July 1, 2022, with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent (as further amended as of June 21, 2024, the “Credit Agreement”). The Credit Agreement provides for a restriction on cash dividends and other distributions to stockholders on the Company’s capital stock in the event there is a default under the Credit Agreement. In addition, the Credit Agreement, under certain circumstances, limits the amount of such cash dividends and other distributions to stockholders to the extent that, after giving effect to any payment made to effect such cash dividend or other distribution, the Leverage Ratio, as defined in the Credit Agreement, would exceed 2.5 to 1 on a pro forma basis as of the end of the Company’s most recently completed fiscal quarter.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the thirteen-week period ended September 28, 2024, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Landstar’s securities that was intended to satisfy the affirmative defense conditions of Rule

10b5-1(c)

or any

“non-Rule

10b5-1

trading arrangement.”

Item 6. Exhibits

The exhibits listed on the Exhibit Index are furnished as part of this quarterly report on Form

10-Q.

 

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EXHIBIT INDEX

Registrant’s Commission File No.: 0-21238

 

Exhibit No.		Description
(31)		Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.1*		Chief Executive Officer certification, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Chief Financial Officer certification, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(32)		Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.1**		Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

*	Filed herewith

**	Furnished herewith

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

						LANDSTAR SYSTEM, INC.
Date: October 30, 2024						/s/ Frank A. Lonegro
						Frank A. Lonegro
						President and Chief Executive Officer
Date: October 30, 2024						/s/ James P. Todd
						James P. Todd
						Vice President, Chief Financial Officer and Assistant Secretary

 

 

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EXHIBIT 31.1

SECTION 302 CERTIFICATION

I, Frank A. Lonegro, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q of Landstar System, 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 officers 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 officers 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: October 30, 2024

 

/s/ Frank A. Lonegro

Frank A. Lonegro

President and Chief Executive Officer

EXHIBIT 31.2

SECTION 302 CERTIFICATION

I, James P. Todd, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q of Landstar System, 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 officers 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 officers 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: October 30, 2024

 

/s/ James P. Todd

James P. Todd

Vice President, Chief Financial Officer and Assistant Secretary

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Landstar System, Inc. (the “Company”) on Form 10-Q for the period ending September 28, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Frank A. Lonegro, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; 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: October 30, 2024

 

/s/ Frank A. Lonegro

Frank A. Lonegro

President and Chief Executive Officer

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Landstar System, Inc. (the “Company”) on Form 10-Q for the period ending September 28, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James P. Todd, Vice President, Chief Financial Officer and Assistant Secretary of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; 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: October 30, 2024

 

/s/ James P. Todd

James P. Todd

Vice President, Chief Financial Officer and Assistant Secretary

Cover Page - shares	9 Months Ended
	Sep. 28, 2024	Oct. 21, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Document Quarterly Report	true
Entity Central Index Key	0000853816
Document Transition Report	false
Current Fiscal Year End Date	--12-28
Document Period End Date	Sep. 28, 2024
Entity Registrant Name	LANDSTAR SYSTEM, INC.
Entity Filer Category	Large Accelerated Filer
Trading Symbol	LSTR
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		35,331,173
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity File Number	0-21238
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	06-1313069
Entity Address, Address Line One	13410 Sutton Park Drive South
Entity Address, City or Town	Jacksonville
Entity Address, Postal Zip Code	32224
City Area Code	904
Local Phone Number	398-9400
Entity Address, State or Province	FL

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Current Assets
Cash and cash equivalents	$ 468,830	$ 481,043
Short-term investments	62,451	59,661
Trade accounts receivable, less allowance of $12,134 and $11,738	694,633	743,762
Other receivables, including advances to independent contractors, less allowance of $16,759 and $14,010	51,533	43,339
Other current assets	33,947	24,936
Total current assets	1,311,394	1,352,741
Operating property, less accumulated depreciation and amortization of $456,770 and $436,682	289,248	284,300
Goodwill	41,122	42,275
Other assets	115,491	122,530
Total assets	1,757,255	1,801,846
Current Liabilities
Cash overdraft	50,746	61,541
Accounts payable	397,908	395,980
Current maturities of long-term debt	27,672	27,876
Insurance claims	43,370	41,825
Dividends payable	0	71,433
Contractor escrow	30,244	28,498
Other current liabilities	42,712	48,071
Total current liabilities	592,652	675,224
Long-term debt, excluding current maturities	44,834	43,264
Insurance claims	59,861	58,922
Deferred income taxes and other noncurrent liabilities	43,990	40,513
Shareholders' Equity
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,559,269 and 68,497,324 shares	686	685
Additional paid-in capital	255,398	254,642
Retained earnings	2,897,073	2,783,645
Cost of 33,228,096 and 32,780,651 shares of common stock in treasury	(2,128,684)	(2,048,184)
Accumulated other comprehensive loss	(8,555)	(6,865)
Total shareholders' equity	1,015,918	983,923
Total liabilities and shareholders' equity	$ 1,757,255	$ 1,801,846

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Allowance on trade accounts receivable	$ 12,134	$ 11,738
Allowance on other receivables	16,759	14,010
Accumulated depreciation and amortization on operating property	$ 456,770	$ 436,682
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	160,000,000	160,000,000
Common stock, issued shares	68,559,269	68,497,324
Treasury stock, shares	33,228,096	32,780,651

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Revenue	$ 1,213,867	$ 1,289,345	$ 3,609,915	$ 4,098,877
Investment income	3,922	3,022	10,988	6,874
Costs and expenses:
Purchased transportation	943,805	986,743	2,799,384	3,141,234
Commissions to agents	98,703	115,244	295,801	363,397
Other operating costs, net of gains on asset sales/dispositions	15,144	15,158	44,138	40,998
Insurance and claims	30,398	29,540	83,830	86,971
Selling, general and administrative	51,252	50,975	162,613	159,071
Depreciation and amortization	15,371	14,359	44,001	44,498
Total costs and expenses	1,154,673	1,212,019	3,429,767	3,836,169
Operating income	63,116	80,348	191,136	269,582
Interest and debt (income) expense	(1,169)	(1,046)	(4,455)	(2,079)
Income before income taxes	64,285	81,394	195,591	271,661
Income taxes	14,252	19,741	45,838	65,254
Net income	$ 50,033	$ 61,653	$ 149,753	$ 206,407
Basic earnings per share	$ 1.41	$ 1.71	$ 4.21	$ 5.74
Diluted earnings per share	$ 1.41	$ 1.71	$ 4.21	$ 5.74
Average basic shares outstanding	35,420,000	35,951,000	35,608,000	35,958,000
Average diluted shares outstanding	35,420,000	35,951,000	35,608,000	35,958,000
Dividends per common share	$ 0.36	$ 0.33	$ 1.02	$ 0.93

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Net income	$ 50,033	$ 61,653	$ 149,753	$ 206,407
Other comprehensive (loss) income:
Unrealized holding gains on available-for-sale investments, net of tax expense of $828, $263, $624 and $49	2,277	176	3,023	958
Foreign currency translation (losses) gains	(1,354)	(1,494)	(4,713)	2,337
Other comprehensive (loss) income	923	(1,318)	(1,690)	3,295
Comprehensive income	$ 50,956	$ 60,335	$ 148,063	$ 209,702

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Unrealized holding gains on available-for-sale, investments, net of tax expense	$ 624	$ 49	$ 828	$ 263

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023
OPERATING ACTIVITIES
Net income	$ 149,753	$ 206,407
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	44,001	44,498
Non-cash interest charges	198	198
Provisions for losses on trade and other accounts receivable	13,058	10,509
Gains on sales/disposals of operating property	(1,204)	(3,846)
Deferred income taxes, net	(4,359)	(5,595)
Stock-based compensation	3,573	4,270
Changes in operating assets and liabilities:
Decrease in trade and other accounts receivable	27,877	145,655
Increase in other assets	(7,884)	(13,115)
Increase (decrease) in accounts payable	727	(62,652)
Decrease in other liabilities	(2,785)	(15,734)
Increase (decrease) in insurance claims	2,484	(6,810)
NET CASH PROVIDED BY OPERATING ACTIVITIES	225,439	303,785
INVESTING ACTIVITIES
Sales and maturities of investments	81,072	93,326
Purchases of investments	(74,297)	(86,115)
Purchases of operating property	(24,256)	(15,394)
Proceeds from sales of operating property	6,265	6,631
NET CASH USED BY INVESTING ACTIVITIES	(11,216)	(1,552)
FINANCING ACTIVITIES
Decrease in cash overdraft	(10,795)	(44,886)
Dividends paid	(107,758)	(105,302)
Proceeds from exercises of stock options	0	28
Taxes paid in lieu of shares issued related to stock-based compensation plans	(3,928)	(9,186)
Purchases of common stock	(78,697)	(15,433)
Principal payments on finance lease obligations	(22,872)	(28,017)
NET CASH USED BY FINANCING ACTIVITIES	(224,050)	(202,796)
Effect of exchange rate changes on cash and cash equivalents	(2,386)	643
(Decrease) increase in cash and cash equivalents	(12,213)	100,080
Cash and cash equivalents at beginning of period	481,043	339,581
Cash and cash equivalents at end of period	$ 468,830	$ 439,661

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock at Cost	Accumulated Other Comprehensive (Loss) Income
Beginning Balance (in shares) at Dec. 31, 2022		68,382,310			32,455,300
Beginning Balance at Dec. 31, 2022	$ 887,221	$ 684	$ 258,487	$ 2,635,960	$ (1,992,886)	$ (15,024)
Net income	78,195			78,195
Dividends	(10,806)			(10,806)
Purchases of common stock (in shares)					89,661
Purchases of common stock	(15,433)				$ (15,433)
Issuance of stock related to stock-based compensation plans (in shares)		101,653			5,891
Issuance of stock related to stock-based compensation plans	(8,208)	$ 1	(7,201)		$ (1,008)
Stock-based compensation	1,852		1,852
Other comprehensive income (loss)	2,831					2,831
Ending Balance (in shares) at Apr. 01, 2023		68,483,963			32,550,852
Ending Balance at Apr. 01, 2023	935,652	$ 685	253,138	2,703,349	$ (2,009,327)	(12,193)
Beginning Balance (in shares) at Dec. 31, 2022		68,382,310			32,455,300
Beginning Balance at Dec. 31, 2022	887,221	$ 684	258,487	2,635,960	$ (1,992,886)	(15,024)
Net income	206,407
Ending Balance (in shares) at Sep. 30, 2023		68,497,324			32,550,980
Ending Balance at Sep. 30, 2023	1,043,154	$ 685	254,630	2,808,919	$ (2,009,351)	(11,729)
Beginning Balance (in shares) at Apr. 01, 2023		68,483,963			32,550,852
Beginning Balance at Apr. 01, 2023	935,652	$ 685	253,138	2,703,349	$ (2,009,327)	(12,193)
Net income	66,559			66,559
Dividends	(10,780)			(10,780)
Issuance of stock related to stock-based compensation plans (in shares)		13,361
Issuance of stock related to stock-based compensation plans	(926)		(926)
Stock-based compensation	1,274		1,274
Other comprehensive income (loss)	1,782					1,782
Ending Balance (in shares) at Jul. 01, 2023		68,497,324			32,550,852
Ending Balance at Jul. 01, 2023	993,561	$ 685	253,486	2,759,128	$ (2,009,327)	(10,411)
Net income	61,653			61,653
Dividends	(11,862)			(11,862)
Issuance of stock related to stock-based compensation plans (in shares)					128
Issuance of stock related to stock-based compensation plans	(24)				$ (24)
Stock-based compensation	1,144		1,144
Other comprehensive income (loss)	(1,318)					(1,318)
Ending Balance (in shares) at Sep. 30, 2023		68,497,324			32,550,980
Ending Balance at Sep. 30, 2023	1,043,154	$ 685	254,630	2,808,919	$ (2,009,351)	(11,729)
Beginning Balance (in shares) at Dec. 30, 2023		68,497,324			32,780,651
Beginning Balance at Dec. 30, 2023	983,923	$ 685	254,642	2,783,645	$ (2,048,184)	(6,865)
Net income	47,096			47,096
Dividends	(11,802)			(11,802)
Issuance of stock related to stock-based compensation plans (in shares)		50,229			4,864
Issuance of stock related to stock-based compensation plans	(3,060)		(2,174)		$ (886)
Stock-based compensation	1,724		1,724
Other comprehensive income (loss)	30					30
Ending Balance (in shares) at Mar. 30, 2024		68,547,553			32,785,515
Ending Balance at Mar. 30, 2024	1,017,911	$ 685	254,192	2,818,939	$ (2,049,070)	(6,835)
Beginning Balance (in shares) at Dec. 30, 2023		68,497,324			32,780,651
Beginning Balance at Dec. 30, 2023	983,923	$ 685	254,642	2,783,645	$ (2,048,184)	(6,865)
Net income	149,753
Purchases of common stock	(79,388)
Ending Balance (in shares) at Sep. 28, 2024		68,559,269			33,228,096
Ending Balance at Sep. 28, 2024	1,015,918	$ 686	255,398	2,897,073	$ (2,128,684)	(8,555)
Beginning Balance (in shares) at Mar. 30, 2024		68,547,553			32,785,515
Beginning Balance at Mar. 30, 2024	1,017,911	$ 685	254,192	2,818,939	$ (2,049,070)	(6,835)
Net income	52,624			52,624
Dividends	(11,777)			(11,777)
Purchases of common stock (in shares)					315,649
Purchases of common stock	(56,995)				$ (56,995)
Issuance of stock related to stock-based compensation plans (in shares)		6,374			1,112
Issuance of stock related to stock-based compensation plans	(200)	$ 1			$ (201)
Stock-based compensation	1,892		1,892
Other comprehensive income (loss)	(2,643)					(2,643)
Ending Balance (in shares) at Jun. 29, 2024		68,553,927			33,102,276
Ending Balance at Jun. 29, 2024	1,000,812	$ 686	256,084	2,859,786	$ (2,106,266)	(9,478)
Net income	50,033			50,033
Dividends	(12,746)			(12,746)
Purchases of common stock (in shares)					121,270
Purchases of common stock	(22,393)				$ (22,393)
Issuance of stock related to stock-based compensation plans (in shares)		5,342			4,550
Issuance of stock related to stock-based compensation plans	(668)		(643)		$ (25)
Stock-based compensation	(43)		(43)
Other comprehensive income (loss)	923					923
Ending Balance (in shares) at Sep. 28, 2024		68,559,269			33,228,096
Ending Balance at Sep. 28, 2024	$ 1,015,918	$ 686	$ 255,398	$ 2,897,073	$ (2,128,684)	$ (8,555)

Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 28, 2024	Jun. 29, 2024	Mar. 30, 2024	Sep. 30, 2023	Jul. 01, 2023	Apr. 01, 2023	Sep. 28, 2024	Sep. 30, 2023
Dividends per common share	$ 0.36	$ 0.33	$ 0.33	$ 0.33	$ 0.3	$ 0.3	$ 1.02	$ 0.93

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 50,033	$ 61,653	$ 149,753	$ 206,407

Insider Trading Arrangements	9 Months Ended
	Sep. 28, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Significant Accounting Policies	9 Months Ended
	Sep. 28, 2024
Significant Accounting Policies	(1) Significant Accounting Policies Revenue from Contracts with Customers – Disaggregation of Revenue The following table summarizes (i) the percentage of consolidated revenue generated by mode of transportation and (ii) the total amount of truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers generated by equipment type during the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (dollars in thousands):        Thirty-Nine Weeks Ended     Thirteen Weeks Ended   Mode    September 28, 2024     September 30, 2023     September 28, 2024     September 30, 2023   Truck – BCO Independent Contractors      38 %      38 %      38 %      39 %  Truck – Truck Brokerage Carriers      52 %      54 %      52 %      52 %  Rail intermodal      2 %      2 %      2 %      2 %  Ocean and air cargo carriers      6 %      5 %      6 %      5 %  Truck Equipment Type          Van equipment    $ 1,851,237     $  2,123,693     $  603,993     $  665,569   Unsided/platform equipment    $  1,093,753     $ 1,150,483     $ 369,758     $ 378,147   Less-than-truckload    $ 77,902     $ 90,770     $ 24,195     $ 28,097   Other truck transportation (1)    $ 242,853     $ 379,471     $ 93,178     $ 101,951     (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee.

Share-Based Payment Arrangements	9 Months Ended
	Sep. 28, 2024
Share-Based Payment Arrangements	(2) Share-based Payment Arrangements As of September 28, 2024, the Company has an employee equity incentive plan, the 2011 equity incentive plan (the “2011 EIP”). The Company also has a stock compensation plan for members of its Board of Directors, the 2022 Directors Stock Compensation Plan (the “2022 DSCP”). 6,000,000 shares of the Company’s common stock were authorized for issuance under the 2011 EIP and 200,000 shares of the Company’s common stock were authorized for issuance under the 2022 DSCP. The 2011 EIP and 2022 DSCP are each referred to herein as a “Plan,” and, collectively, as the “Plans.” Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands):        Thirty-Nine Weeks Ended      Thirteen Weeks Ended        September 28, 2024      September 30, 2023      September 28, 2024      September 30, 2023   Total cost of the Plans during the period    $ 3,573      $ 4,270      $  (43 )     $  1,144   Amount of related income tax benefit recognized during the period      (1,997 )       (3,878 )       (313 )       (286 )                                      Net cost of the Plans during the period    $ 1,576      $ 392      $  (356 )     $ 858                                       Included in income tax benefits recognized in the thirty-nine-week periods ended September 28, 2024 and September 30, 2023 were excess tax benefits from stock-based awards of $1,122,000 and $2,830,000, respectively. As of September 28, 2024, there were 181,450 shares of the Company’s common stock reserved for issuance under the 2022 DSCP and 2,800,060 shares of the Company’s common stock reserved for issuance under the 2011 EIP. Restricted Stock Units The following table summarizes information regarding the Company’s outstanding restricted stock unit (“RSU”) awards with either a performance condition or a market condition under the Plans:        Number of      Weighted Average Grant Date        RSUs      Fair Value   Outstanding at December 30, 2023      132,722      $ 138.93   Granted      102,762      $ 138.85   Shares earned in excess of target (1)      1,791      $ 51.42   Vested shares      (45,057 )     $  115.69   Forfeited      (29,801 )     $ 140.20               Outstanding at September 28, 2024      162,417      $ 144.13                 (1) Represents additional shares earned under the April 24, 2018 and July 1, 2019 RSU awards as total shareholder return during the applicable performance period exceeded target performance level under each of those awards. During the thirty-nine-week period ended September 28, 2024, the Company granted RSUs with a performance condition and RSUs with a market condition, as further described below. Outstanding RSUs at both December 30, 2023 and September 28, 2024 include RSUs with a performance condition and RSUs with a market condition, as further described below and in the Company’s 2023 Annual Report on Form 10-K. RSUs with a performance condition granted on February 2, 2024 may vest on January 31 of 2027, 2028 and 2029 based on growth in operating income and pre-tax income per diluted share from continuing operations as compared to the results from the 2023 fiscal year. On February 2, 2024, the Company granted 58,268 RSUs that vest based on a market condition. These RSUs may vest based on the achievement of the target Company’s total shareholder return (“TSR”) compound annual growth rate, adjusted to reflect dividends (if any) paid during such periods and capital adjustments as may be necessary, and are eligible to vest annually starting after the sixth anniversary of the grant date and concluding after the tenth anniversary of the grant date. The fair value of this RSU award was determined at the time of grant based on the expected achievement of the market condition. With respect to these RSU awards, the Company reports compensation expense ratably over the service period of the award based on the number of units granted multiplied by the grant date fair value of the RSU. Previously recognized compensation cost would be reversed only if the employee did not complete the requisite service period due to termination of employment.   The Company recognized approximately $408,000 and $1,503,000 of share-based compensation expense related to RSU awards in the thirty-nine-week periods ended September 28, 2024 and September 30, 2023, respectively. As of September 28, 2024, there was a maximum of $40.7 million of total unrecognized compensation cost related to RSU awards granted under the Plans with an expected average remaining life of approximately 3.6 years. With respect to RSU awards with a performance condition, the amount of future compensation expense to be recognized will be determined based on future operating results. Non-vested Restricted Stock and Deferred Stock Units The following table summarizes information regarding the Company’s outstanding shares of non-vested restricted stock and Deferred Stock Units (defined below) under the Plans:        Number of Shares and Deferred Stock Units      Weighted Average Grant Date Fair Value   Non-vested at December 30, 2023      46,348      $ 158.38   Granted      31,525      $ 187.08   Vested      (25,647 )     $ 151.16   Forfeited      (4,707 )     $ 169.92               Non-vested at September 28, 2024      47,519      $ 180.17               The fair value of each share of non-vested restricted stock issued and Deferred Stock Unit granted under the Plans is based on the fair value of a share of the Company’s common stock on the date of grant. Shares of non-vested restricted stock are generally subject to vesting in three equal annual installments either on the first, second and third anniversary of the date of the grant or the third, fourth and fifth anniversary of the date of the grant, in two equal annual installments on the first and second anniversary of the date of the grant or 100% on the first, third or fifth anniversary of the date of the grant. For restricted stock awards granted under the 2022 DSCP, each recipient may elect to defer receipt of shares and instead receive restricted stock units (“Deferred Stock Units”), which represent contingent rights to receive shares of the Company’s common stock on the date of the recipient’s separation from service from the Board of Directors, or, if earlier, upon a change in control event of the Company. Deferred Stock Units become vested 100% on the first anniversary of the date of the grant. Deferred Stock Units do not represent actual ownership in shares of the Company’s common stock and the recipient does not have voting rights or other incidents of ownership until the shares are issued. However, Deferred Stock Units do contain the right to receive dividend equivalent payments prior to settlement into shares. As of September 28, 2024, there was $5,754,000 of total unrecognized compensation cost related to non-vested shares of restricted stock and Deferred Stock Units granted under the Plans. The unrecognized compensation cost related to these non-vested shares of restricted stock and Deferred Stock Units is expected to be recognized over a weighted average period of 1.8 years. Stock Options The Company had no issued and outstanding vested or unvested stock options or unrecognized compensation costs related to non-vested stock options granted under the Plans as of December 30, 2023 or September 28, 2024. The total intrinsic value of stock options exercised during the thirty-nine-week period ended September 30, 2023 was $218,000 .

Income Taxes	9 Months Ended
	Sep. 28, 2024
Income Taxes	(3) Income Taxes The provisions for income taxes for the 2024 and 2023 thirty-nine-week periods were based on estimated annual effective income tax rates of 24.3% and 24.4%, respectively, adjusted for discrete events, such as benefits resulting from stock-based awards. The effective income tax rate for the 2024 thirty-nine-week period was 23.4%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2024 period primarily attributable to state taxes, partially offset by federal tax credits. The effective income tax rate for the 2023 thirty-nine-week period was 24.0%. The effective income tax rate was higher than the statutory federal income tax rate of 21% in the 2023 period primarily attributable to state taxes.

Earnings Per Share	9 Months Ended
	Sep. 28, 2024
Earnings Per Share [Abstract]
Earnings Per Share	(4) Earnings Per Share Basic earnings per common share are based on the weighted average number of shares outstanding, which includes outstanding non-vested restricted stock and outstanding Deferred Stock Units. Diluted earnings per share are based on the weighted average number of common shares outstanding plus the incremental shares that would have been outstanding upon the assumed exercise of all dilutive stock options. For each of the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023, the weighted-average number of common shares outstanding is the same for purposes of the calculations of both basic and diluted earnings per share. During and as of the thirty-nine-week period ended September 28, 2024, there were no outstanding stock options issued by the Company. For the thirty-nine-week period ended September 30, 2023, the impact on earnings per share of future compensation expense related to outstanding, unvested time-based awards was greater than the incremental impact of outstanding dilutive stock options, and would therefore have an anti-dilutive effect on earnings per share if included in the calculation of earnings per share. Accordingly, the Company had no reconciling items between the average number of common shares outstanding used to calculate basic earnings per common share and the average number of common shares and common share equivalents outstanding used to calculate diluted earnings per share during each of the 2024 and 2023 thirty-nine-week and thirteen-week periods. Outstanding RSUs were excluded from the calculation of diluted earnings per share for all periods because the performance metric requirements or market condition for vesting had not been satisfied.

Additional Cash Flow Information	9 Months Ended
	Sep. 28, 2024
Additional Cash Flow Information	(5) Additional Cash Flow Information During the 2024 thirty- nine -week period, Landstar paid income taxes and interest of $ 45,638,000 and $ 2,641,000 , respectively. During the 2023 thirty- nine -week period, Landstar paid income taxes and interest of $ 68,136,000 and $ 2,814,000 , respectively. Landstar acquired operating property by entering into finance leases in the amount of $ 24,238,000 in the 2024 thirty- nine -week period. Landstar acquired $ 6,690,000 of operating property for which the Company accrued a corresponding liability in accounts payable of $ 1,201,000 and in other noncurrent liabilities of $ 5,489,000 as of September  28 , 2024 . Landstar did not acquire any operating property by entering into finance leases in the 2023 thirty- nine -week period. During the 2024 thirty- nine -week period, the Company purchased its common stock at a total cost of $ 79,388,000 , including $ 78,697,000 in cash purchases and accrued excise tax of $ 691,000 , which is included in other current liabilities in the consolidated balance sheet at September  28 , 2024 .

Segment Information	9 Months Ended
	Sep. 28, 2024
Segment Information	(6) Segment Information The following table summarizes information about the Company’s reportable business segments as of and for the thirty- nine -week and thirteen -week periods ended September  28 , 2024 and September  30 , 2023 (in thousands):      Thirty-Nine Weeks Ended        September 28, 2024      September 30, 2023        Transportation Logistics      Insurance      Total      Transportation Logistics      Insurance      Total   External revenue    $  3,561,941      $  47,974      $ 3,609,915      $  4,043,824      $  55,053      $ 4,098,877   Internal revenue         65,411        65,411           64,138        64,138   Investment income         10,988        10,988           6,874        6,874   Operating income      141,070        50,066        191,136        222,827        46,755        269,582   Expenditures on long-lived assets      24,256           24,256        15,394           15,394   Goodwill      41,122           41,122        41,934           41,934          Thirteen Weeks Ended        September 28, 2024      September 30, 2023        Transportation Logistics      Insurance      Total      Transportation Logistics      Insurance      Total   External revenue    $ 1,198,334      $ 15,533      $ 1,213,867      $ 1,271,385      $ 17,960      $ 1,289,345   Internal revenue         12,065        12,065           11,960        11,960   Investment income         3,922        3,922           3,022        3,022   Operating income      47,618        15,498        63,116        63,974        16,374        80,348   Expenditures on long-lived assets      7,478           7,478        2,763           2,763   In the thirty-nine-week periods ended September 28, 2024 and September 30, 2023, no single customer accounted for more than 10% of the Company’s consolidated revenue.

Other Comprehensive Income	9 Months Ended
	Sep. 28, 2024
Other Comprehensive Income	(7) Other Comprehensive Income The following table presents the components of and changes in accumulated other comprehensive (loss) income, net of related income taxes, as of and for the thirty-nine-week period ended September 28, 2024 (in thousands):        Unrealized Holding (Losses) Gains on Available-for-Sale Securities      Foreign Currency Translation      Total   Balance as of December 30, 2023    $  (5,010 )     $  (1,855 )     $ (6,865 )  Other comprehensive income (loss)      3,023        (4,713 )       (1,690 )                             Balance as of September 28, 2024    $  (1,987 )     $  (6,568 )     $ (8,555 )                             Amounts reclassified from accumulated other comprehensive income to investment income due to the realization of previously unrealized gains and losses in the accompanying consolidated statements of income were not significant for the thirty-nine-week period ended September 28, 2024.

Investments	9 Months Ended
	Sep. 28, 2024
Investments	(8) Investments Investments include primarily investment-grade corporate bonds, asset-backed securities and commercial paper having maturities of up to five years (the “bond portfolio”) and money market investments. Investments in the bond portfolio are reported as available-for-sale and are carried at fair value. Investments maturing less than one year from the balance sheet date are included in short-term investments and investments maturing more than one year from the balance sheet date are included in other assets in the consolidated balance sheets. Management performs an analysis of the nature of the unrealized losses on available-for-sale investments to determine whether an allowance for credit loss is necessary. Unrealized losses, representing the excess of the purchase price of an investment over its fair value as of the end of a period, considered to be a result of credit-related factors, are to be included as a charge in the statements of income, while unrealized losses considered to be a result of non-credit-related factors are to be included as a component of shareholders’ equity. Investments whose values are based on quoted market prices in active markets are classified within Level 1. Investments that trade in markets that are not considered to be active, but are valued based on quoted market prices, are classified within Level 2. As Level 2 investments include positions that are not traded in active markets, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information. Any transfers between levels are recognized as of the beginning of any reporting period. Fair value of the bond portfolio was determined using Level 1 inputs related to money market investments and Level 2 inputs related to investment-grade corporate bonds, asset-backed securities, commercial paper and direct obligations of government agencies. Unrealized losses, net of unrealized gains, on the investments in the bond portfolio were $2,531,000 and $6,382,000 at September 28, 2024 and December 30, 2023, respectively.   The amortized cost and fair values of available-for-sale investments are as follows at September 28, 2024 and December 30, 2023 (in thousands):        Amortized Cost      Gross Unrealized Gains      Gross Unrealized Losses      Fair Value   September 28, 2024             Money market investments    $ 14,998      $ —       $ —       $ 14,998   Asset-backed securities      17,535        21        1,563        15,993   Corporate bonds, commercial paper and direct obligations of government agencies      118,857        998        1,987        117,868                                       Total    $ 151,390      $  1,019      $  3,550      $ 148,859                                       December 30, 2023             Money market investments    $ 16,832      $ —       $ —       $ 16,832   Asset-backed securities      16,543        —         2,236        14,307   Corporate bonds, commercial paper and direct obligations of government agencies      118,481        279        4,384        114,376   U.S. Treasury obligations      6,287        2        43        6,246                                       Total    $ 158,143      $ 281      $ 6,663      $ 151,761                                       For those available-for-sale investments with unrealized losses at September 28, 2024 and December 30, 2023, the following table summarizes the duration of the unrealized loss (in thousands):        Less than 12 months      12 months or longer      Total        Fair Value      Unrealized Loss      Fair Value      Unrealized Loss      Fair Value      Unrealized Loss   September 28, 2024                   Asset-backed securities    $ —       $  —       $ 13,107      $  1,563      $ 13,107      $  1,563   Corporate bonds, commercial paper, and direct obligations of government agencies      —         —         65,324        1,987        65,324        1,987                                                         Total    $ —       $ —       $ 78,431      $ 3,550      $ 78,431      $ 3,550                                                         December 30, 2023                   Asset-backed securities    $ —       $ —       $ 14,307      $ 2,236      $ 14,307      $ 2,236   Corporate bonds, commercial paper, and direct obligations of government agencies      3,506        42        86,841        4,342        90,347        4,384   U.S. Treasury obligations      —         —         2,305        43        2,305        43                                                         Total    $ 3,506      $ 42      $ 103,453      $ 6,621      $ 106,959      $ 6,663                                                         The Company believes unrealized losses on investments were primarily caused by rising interest rates rather than changes in credit quality. The Company expects to recover, through collection of all of the contractual cash flows of each security, the amortized cost basis of these securities as it does not intend to sell, and does not anticipate being required to sell, these securities before recovery of the cost basis. For these reasons, no losses have been recognized in the Company’s consolidated statements of income.

Leases	9 Months Ended
	Sep. 28, 2024
Leases	(9) Leases Landstar’s noncancelable leases are primarily comprised of finance leases for the acquisition of new trailing equipment. Each finance lease for the acquisition of trailing equipment is a five year lease with a $1 purchase option for the applicable equipment at lease expiration. Substantially all of Landstar’s operating lease right-of-use assets and operating lease liabilities represent leases for facilities maintained in support of the Company’s network of BCO Independent Contractors and office space used to conduct Landstar’s business.   These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives or other build-out clauses. Further, the leases do not contain contingent rent provisions. Landstar also rents certain trailing equipment to supplement the Company-owned trailer fleet under “month-to-month” lease terms, which are not required to be recorded on the balance sheet due to the less than twelve month lease term exemption. Sublease income is primarily comprised of weekly trailing equipment rentals to BCO Independent Contractors. Most of Landstar’s operating leases include one or more options to renew. The exercise of lease renewal options is typically at Landstar’s sole discretion, and, as such, the majority of renewals to extend the lease terms are not included in the right-of-use assets and lease liabilities as they are not reasonably certain of exercise. Landstar regularly evaluates the renewal options, and when they are reasonably certain of exercise, Landstar includes the renewal period in the lease term. As most of Landstar’s operating leases do not provide an implicit rate, Landstar utilized its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. Landstar has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, the Company applies a portfolio approach for determining the incremental borrowing rate. The components of lease cost for finance leases and operating leases for the thirty-nine weeks ended September 28, 2024 were (in thousands):   Finance leases:    Amortization of right-of-use assets    $ 12,901   Interest on lease liability      1,863            Total finance lease cost      14,764   Operating leases:    Lease cost      2,883   Variable lease cost      —    Sublease income      (4,273 )           Total net operating lease income      (1,390 )           Total net lease cost    $ 13,374              A summary of the lease classification on the Company’s consolidated balance sheet as of September 28, 2024 is as follows (in thousands): Assets:   Operating lease right-of-use assets   Other assets    $ 1,074   Finance lease assets   Operating property, less accumulated depreciation and amortization      108,185              Total lease assets      $ 109,259              Liabilities: The following table reconciles the undiscounted cash flows for the finance and operating leases to the finance and operating lease liabilities recorded on the balance sheet at September 28, 2024 (in thousands):      Finance Leases      Operating Leases   2024 Remainder    $ 8,069      $ 191   2025      28,968        533   2026      21,074        213   2027      10,686        175   2028      6,584        49   Thereafter      2,963        —                      Total future minimum lease payments      78,344        1,161   Less amount representing interest (1.6% to 6.5%)      5,838        87                     Present value of minimum lease payments    $ 72,506      $ 1,074                                                       Current maturities of long-term debt      27,672      Long-term debt, excluding current maturities      44,834      Other current liabilities         618   Deferred income taxes and other noncurrent liabilities         456   The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of September 28, 2024 were:        Finance Leases     Operating Leases   Weighted average remaining lease term (years)      3.2       2.4   Weighted average discount rate      4.2 %      6.5 %

Debt	9 Months Ended
	Sep. 28, 2024
Debt	(10) Debt Other than the finance lease obligations as presented on the consolidated balance sheets, the Company had no outstanding debt as of September 28, 2024 and December 30, 2023. On July 1, 2022, Landstar entered into a second amended and restated credit agreement with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent (as further amended as of June 21, 2024, the “Credit Agreement”). The Credit Agreement, which matures July 1, 2027, provides for borrowing capacity in the form of a revolving credit facility of $300,000,000, $45,000,000 of which may be utilized in the form of letters of credit. The Credit Agreement also includes an “accordion” feature providing for a possible increase of up to an aggregate amount of borrowing capacity of $600,000,000. As of September 28, 2024, the Company had no borrowings outstanding under the Credit Agreement. The revolving credit loans under the Credit Agreement, at the option of Landstar, bear interest at (i) a forward-looking term rate based on the secured overnight financing rate plus 0.10% and an applicable margin ranging from 1.25% to 2.00%, or (ii) an alternate base rate plus an applicable margin ranging from 0.25% to 1.00%, in each case with the applicable margin determined based upon the Company’s Leverage Ratio, as defined in the Credit Agreement, at the end of the most recent applicable fiscal quarter for which financial statements have been delivered. The revolving credit facility bears a commitment fee, payable quarterly in arrears, of 0.20% to 0.30%, based on the Company’s Leverage Ratio at the end of the most recent applicable fiscal quarter for which financial statements have been delivered .   The Credit Agreement contains a number of covenants that limit, among other things, the incurrence of additional indebtedness. The Company is required to, among other things, maintain a minimum fixed charge coverage ratio, as described in the Credit Agreement, and maintain a Leverage Ratio, as defined in the Credit Agreement, below a specified maximum. The Credit Agreement provides for a restriction on cash dividends and other distributions to stockholders on the Company’s capital stock to the extent there is a default under the Credit Agreement. In addition, the Credit Agreement under certain circumstances limits the amount of such cash dividends and other distributions to stockholders to the extent that, after giving effect to any payment made to effect such cash dividend or other distribution, the Leverage Ratio would exceed 2.5 to 1 on a pro forma basis as of the end of the Company’s most recently completed fiscal quarter. The Credit Agreement provides for an event of default in the event that, among other things, a person or group acquires 35% or more of the outstanding capital stock of the Company or obtains power to elect a majority of the Company’s directors or the directors cease to consist of a majority of Continuing Directors, as defined in the Credit Agreement. None of these covenants are presently considered by management to be materially restrictive to the Company’s operations, capital resources or liquidity. The Company is currently in compliance with all of the debt covenants under the Credit Agreement. The interest rates on borrowings under the revolving credit facility are typically tied to short-term interest rates and, as such, carrying value approximates fair value. Interest rates on borrowings under finance leases approximate the interest rates that would currently be available to the Company under similar terms and, as such, carrying value approximates fair value.

Commitments and Contingencies	9 Months Ended
	Sep. 28, 2024
Commitments and Contingencies	(11) Commitments and Contingencies Short-term investments include $62,451,000 in current maturities of investments held by the Company’s insurance segment at September 28, 2024. The non-current portion of the bond portfolio of $86,408,000 is included in other assets. The short-term investments, together with $18,790,000 of non-current investments, provide collateral for the $73,117,000 of letters of credit issued to guarantee payment of insurance claims. As of September 28, 2024, Landstar also had $35,250,000 of additional letters of credit outstanding under the Company’s Credit Agreement. The Company is involved in certain claims and pending litigation arising from the normal conduct of business. Many of these claims are covered in whole or in part by insurance. Based on knowledge of the facts and, in certain cases, opinions of outside counsel, management believes that adequate provisions have been made for probable losses with respect to the resolution of all such claims and pending litigation and that the ultimate outcome, after provisions therefor, will not have a material adverse effect on the financial condition of the Company, but could have a material effect on the results of operations in a given quarter or year.

Change in Accounting Estimate for Self-Insured Claims	9 Months Ended
	Sep. 28, 2024
Change in Accounting Estimate for Self-Insured Claims	(12) Change in Accounting Estimate for Self-Insured Claims Landstar provides for the estimated costs of self-insured claims primarily on an actuarial basis. The amount recorded for the estimated liability for claims incurred is based upon the facts and circumstances known on the applicable balance sheet date. The ultimate resolution of these claims may be for an amount greater or less than the amount estimated by management. The Company continually revises its existing claim estimates as new or revised information becomes available on the status of each claim. Historically, the Company has experienced both favorable and unfavorable development of prior years’ claims estimates within its various programs. The following table summarizes the adverse effect of the increase in the cost of insurance claims resulting from unfavorable development of prior year self-insured claims estimates on operating income, net income and basic and diluted earnings per share set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (in thousands, except per share amounts):        Thirty-Nine Weeks Ended      Thirteen Weeks Ended        September 28, 2024      September 30, 2023      September 28, 2024      September 30, 2023   Operating income    $  6,666      $  5,154      $  4,550      $  2,323   Net income    $ 5,046      $ 3,896      $ 3,444      $ 1,756   Basic and diluted earnings per share    $ 0.14      $ 0.11      $ 0.10      $ 0.05

Recent Accounting Pronouncements	9 Months Ended
	Sep. 28, 2024
Recent Accounting Pronouncements	(13)     Recent Accounting Pronouncements Accounting Standards Issued But Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for annual periods beginning after December 15, 2023. The Company expects ASU 2023-07 to impact only its disclosures with no impacts to its financial condition, results of operations or cash flows. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. ASU 2023-09 is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures.

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 28, 2024
Revenue from Contracts with Customers – Disaggregation of Revenue	Revenue from Contracts with Customers – Disaggregation of Revenue The following table summarizes (i) the percentage of consolidated revenue generated by mode of transportation and (ii) the total amount of truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers generated by equipment type during the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (dollars in thousands):        Thirty-Nine Weeks Ended     Thirteen Weeks Ended   Mode    September 28, 2024     September 30, 2023     September 28, 2024     September 30, 2023   Truck – BCO Independent Contractors      38 %      38 %      38 %      39 %  Truck – Truck Brokerage Carriers      52 %      54 %      52 %      52 %  Rail intermodal      2 %      2 %      2 %      2 %  Ocean and air cargo carriers      6 %      5 %      6 %      5 %  Truck Equipment Type          Van equipment    $ 1,851,237     $  2,123,693     $  603,993     $  665,569   Unsided/platform equipment    $  1,093,753     $ 1,150,483     $ 369,758     $ 378,147   Less-than-truckload    $ 77,902     $ 90,770     $ 24,195     $ 28,097   Other truck transportation (1)    $ 242,853     $ 379,471     $ 93,178     $ 101,951     (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee.

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 28, 2024
Schedule of Disaggregation of Revenue	The following table summarizes (i) the percentage of consolidated revenue generated by mode of transportation and (ii) the total amount of truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers generated by equipment type during the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (dollars in thousands):        Thirty-Nine Weeks Ended     Thirteen Weeks Ended   Mode    September 28, 2024     September 30, 2023     September 28, 2024     September 30, 2023   Truck – BCO Independent Contractors      38 %      38 %      38 %      39 %  Truck – Truck Brokerage Carriers      52 %      54 %      52 %      52 %  Rail intermodal      2 %      2 %      2 %      2 %  Ocean and air cargo carriers      6 %      5 %      6 %      5 %  Truck Equipment Type          Van equipment    $ 1,851,237     $  2,123,693     $  603,993     $  665,569   Unsided/platform equipment    $  1,093,753     $ 1,150,483     $ 369,758     $ 378,147   Less-than-truckload    $ 77,902     $ 90,770     $ 24,195     $ 28,097   Other truck transportation (1)    $ 242,853     $ 379,471     $ 93,178     $ 101,951     (1) Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee.

Share-Based Payment Arrangements (Tables)	9 Months Ended
	Sep. 28, 2024
Amounts Recognized in Financial Statements with Respect to Plans	Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands):        Thirty-Nine Weeks Ended      Thirteen Weeks Ended        September 28, 2024      September 30, 2023      September 28, 2024      September 30, 2023   Total cost of the Plans during the period    $ 3,573      $ 4,270      $  (43 )     $  1,144   Amount of related income tax benefit recognized during the period      (1,997 )       (3,878 )       (313 )       (286 )                                      Net cost of the Plans during the period    $ 1,576      $ 392      $  (356 )     $ 858
Schedule of Information on Restricted Stock Units	The following table summarizes information regarding the Company’s outstanding restricted stock unit (“RSU”) awards with either a performance condition or a market condition under the Plans:        Number of      Weighted Average Grant Date        RSUs      Fair Value   Outstanding at December 30, 2023      132,722      $ 138.93   Granted      102,762      $ 138.85   Shares earned in excess of target (1)      1,791      $ 51.42   Vested shares      (45,057 )     $  115.69   Forfeited      (29,801 )     $ 140.20               Outstanding at September 28, 2024      162,417      $ 144.13                 (1) Represents additional shares earned under the April 24, 2018 and July 1, 2019 RSU awards as total shareholder return during the applicable performance period exceeded target performance level under each of those awards.
Schedule of Information on Non-Vested Restricted Stock and Deferred Stock Units	The following table summarizes information regarding the Company’s outstanding shares of non-vested restricted stock and Deferred Stock Units (defined below) under the Plans:        Number of Shares and Deferred Stock Units      Weighted Average Grant Date Fair Value   Non-vested at December 30, 2023      46,348      $ 158.38   Granted      31,525      $ 187.08   Vested      (25,647 )     $ 151.16   Forfeited      (4,707 )     $ 169.92               Non-vested at September 28, 2024      47,519      $ 180.17

Segment Information (Tables)	9 Months Ended
	Sep. 28, 2024
Information Regarding Reportable Business Segments	The following table summarizes information about the Company’s reportable business segments as of and for the thirty- nine -week and thirteen -week periods ended September  28 , 2024 and September  30 , 2023 (in thousands):      Thirty-Nine Weeks Ended        September 28, 2024      September 30, 2023        Transportation Logistics      Insurance      Total      Transportation Logistics      Insurance      Total   External revenue    $  3,561,941      $  47,974      $ 3,609,915      $  4,043,824      $  55,053      $ 4,098,877   Internal revenue         65,411        65,411           64,138        64,138   Investment income         10,988        10,988           6,874        6,874   Operating income      141,070        50,066        191,136        222,827        46,755        269,582   Expenditures on long-lived assets      24,256           24,256        15,394           15,394   Goodwill      41,122           41,122        41,934           41,934          Thirteen Weeks Ended        September 28, 2024      September 30, 2023        Transportation Logistics      Insurance      Total      Transportation Logistics      Insurance      Total   External revenue    $ 1,198,334      $ 15,533      $ 1,213,867      $ 1,271,385      $ 17,960      $ 1,289,345   Internal revenue         12,065        12,065           11,960        11,960   Investment income         3,922        3,922           3,022        3,022   Operating income      47,618        15,498        63,116        63,974        16,374        80,348   Expenditures on long-lived assets      7,478           7,478        2,763           2,763

Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 28, 2024
Components of and Changes in Accumulated Other Comprehensive Income, Net of Related Income Taxes	The following table presents the components of and changes in accumulated other comprehensive (loss) income, net of related income taxes, as of and for the thirty-nine-week period ended September 28, 2024 (in thousands):        Unrealized Holding (Losses) Gains on Available-for-Sale Securities      Foreign Currency Translation      Total   Balance as of December 30, 2023    $  (5,010 )     $  (1,855 )     $ (6,865 )  Other comprehensive income (loss)      3,023        (4,713 )       (1,690 )                             Balance as of September 28, 2024    $  (1,987 )     $  (6,568 )     $ (8,555 )

Investments (Tables)	9 Months Ended
	Sep. 28, 2024
Amortized Cost and Fair Value of Available-for-Sale Investments	The amortized cost and fair values of available-for-sale investments are as follows at September 28, 2024 and December 30, 2023 (in thousands):        Amortized Cost      Gross Unrealized Gains      Gross Unrealized Losses      Fair Value   September 28, 2024             Money market investments    $ 14,998      $ —       $ —       $ 14,998   Asset-backed securities      17,535        21        1,563        15,993   Corporate bonds, commercial paper and direct obligations of government agencies      118,857        998        1,987        117,868                                       Total    $ 151,390      $  1,019      $  3,550      $ 148,859                                       December 30, 2023             Money market investments    $ 16,832      $ —       $ —       $ 16,832   Asset-backed securities      16,543        —         2,236        14,307   Corporate bonds, commercial paper and direct obligations of government agencies      118,481        279        4,384        114,376   U.S. Treasury obligations      6,287        2        43        6,246                                       Total    $ 158,143      $ 281      $ 6,663      $ 151,761
Schedule of Unrealized Loss on Available-for-Sale Investments	For those available-for-sale investments with unrealized losses at September 28, 2024 and December 30, 2023, the following table summarizes the duration of the unrealized loss (in thousands):        Less than 12 months      12 months or longer      Total        Fair Value      Unrealized Loss      Fair Value      Unrealized Loss      Fair Value      Unrealized Loss   September 28, 2024                   Asset-backed securities    $ —       $  —       $ 13,107      $  1,563      $ 13,107      $  1,563   Corporate bonds, commercial paper, and direct obligations of government agencies      —         —         65,324        1,987        65,324        1,987                                                         Total    $ —       $ —       $ 78,431      $ 3,550      $ 78,431      $ 3,550                                                         December 30, 2023                   Asset-backed securities    $ —       $ —       $ 14,307      $ 2,236      $ 14,307      $ 2,236   Corporate bonds, commercial paper, and direct obligations of government agencies      3,506        42        86,841        4,342        90,347        4,384   U.S. Treasury obligations      —         —         2,305        43        2,305        43                                                         Total    $ 3,506      $ 42      $ 103,453      $ 6,621      $ 106,959      $ 6,663

Leases (Tables)	9 Months Ended
	Sep. 28, 2024
Lease, Cost	The components of lease cost for finance leases and operating leases for the thirty-nine weeks ended September 28, 2024 were (in thousands):   Finance leases:    Amortization of right-of-use assets    $ 12,901   Interest on lease liability      1,863            Total finance lease cost      14,764   Operating leases:    Lease cost      2,883   Variable lease cost      —    Sublease income      (4,273 )           Total net operating lease income      (1,390 )           Total net lease cost    $ 13,374
Schedule Of Supplemental Balance Sheet Information Related To Leases	A summary of the lease classification on the Company’s consolidated balance sheet as of September 28, 2024 is as follows (in thousands): Assets:   Operating lease right-of-use assets   Other assets    $ 1,074   Finance lease assets   Operating property, less accumulated depreciation and amortization      108,185              Total lease assets      $ 109,259
Finance And Operating Lease Maturity	The following table reconciles the undiscounted cash flows for the finance and operating leases to the finance and operating lease liabilities recorded on the balance sheet at September 28, 2024 (in thousands):      Finance Leases      Operating Leases   2024 Remainder    $ 8,069      $ 191   2025      28,968        533   2026      21,074        213   2027      10,686        175   2028      6,584        49   Thereafter      2,963        —                      Total future minimum lease payments      78,344        1,161   Less amount representing interest (1.6% to 6.5%)      5,838        87                     Present value of minimum lease payments    $ 72,506      $ 1,074                                                       Current maturities of long-term debt      27,672      Long-term debt, excluding current maturities      44,834      Other current liabilities         618   Deferred income taxes and other noncurrent liabilities         456
Schedule Discount Rate And Lease Term Used In Calculating Lease Liabilities And Assets	The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of September 28, 2024 were:        Finance Leases     Operating Leases   Weighted average remaining lease term (years)      3.2       2.4   Weighted average discount rate      4.2 %      6.5 %

Change in Accounting Estimate for Self-Insured Claims (Tables)	9 Months Ended
	Sep. 28, 2024
Effect of Increase in Cost of Insurance and Claims	The following table summarizes the adverse effect of the increase in the cost of insurance claims resulting from unfavorable development of prior year self-insured claims estimates on operating income, net income and basic and diluted earnings per share set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (in thousands, except per share amounts):        Thirty-Nine Weeks Ended      Thirteen Weeks Ended        September 28, 2024      September 30, 2023      September 28, 2024      September 30, 2023   Operating income    $  6,666      $  5,154      $  4,550      $  2,323   Net income    $ 5,046      $ 3,896      $ 3,444      $ 1,756   Basic and diluted earnings per share    $ 0.14      $ 0.11      $ 0.10      $ 0.05

Schedule Of Revenue By Major Customers By Reporting Segments (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue		$ 1,213,867	$ 1,289,345	$ 3,609,915	$ 4,098,877
BCO Independent Contractors – Truck
Disaggregation of Revenue [Line Items]
Percentage of Consolidated Revenue		38.00%	39.00%	38.00%	38.00%
Brokerage Carriers - Truck
Disaggregation of Revenue [Line Items]
Percentage of Consolidated Revenue		52.00%	52.00%	52.00%	54.00%
Rail Intermodal
Disaggregation of Revenue [Line Items]
Percentage of Consolidated Revenue		2.00%	2.00%	2.00%	2.00%
Ocean and air cargo carriers
Disaggregation of Revenue [Line Items]
Percentage of Consolidated Revenue		6.00%	5.00%	6.00%	5.00%
BCO Independent Contractor Truck and Brokerage Carriers Truck | Van Equipment
Disaggregation of Revenue [Line Items]
Revenue		$ 603,993	$ 665,569	$ 1,851,237	$ 2,123,693
BCO Independent Contractor Truck and Brokerage Carriers Truck | Unsided/Platform Equipment
Disaggregation of Revenue [Line Items]
Revenue		369,758	378,147	1,093,753	1,150,483
BCO Independent Contractor Truck and Brokerage Carriers Truck | Less than Truckload
Disaggregation of Revenue [Line Items]
Revenue		24,195	28,097	77,902	90,770
BCO Independent Contractor Truck and Brokerage Carriers Truck | Other Truck Transportation
Disaggregation of Revenue [Line Items]
Revenue	[1]	$ 93,178	$ 101,951	$ 242,853	$ 379,471
[1] Includes power-only, expedited, straight truck, cargo van, and miscellaneous other truck transportation revenue generated by the transportation logistics segment. Power-only refers to shipments where the Company furnishes a power unit and an operator but not trailing equipment, which is typically provided by the shipper or consignee.

Share-Based Payment Arrangements - Additional Information (Detail) - USD ($)		9 Months Ended
	Feb. 02, 2024	Sep. 28, 2024	Sep. 30, 2023	Dec. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefit from stock-based awards		$ 1,122,000	$ 2,830,000
Stock awards granted, shares	58,268
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted, shares		102,762
Recognized share-based compensation expense		$ 408,000	1,503,000
Unrecognized compensation cost, other than options		$ 40,700,000
Unrecognized compensation cost expected to be recognized over period, years		3 years 7 months 6 days
Non Vested Restricted Stock and Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted, shares		31,525
Unrecognized compensation cost, other than options		$ 5,754,000
Unrecognized compensation cost expected to be recognized over period, years		1 year 9 months 18 days
Terms of award		the Company’s common stock on the date of grant. Shares of non-vested restricted stock are generally subject to vesting in three equal annual installments either on the first, second and third anniversary of the date of the grant or the third, fourth and fifth anniversary of the date of the grant, in two equal annual installments on the first and second anniversary of the date of the grant or 100% on the first, third or fifth anniversary of the date of the grant. For restricted stock awards granted under the 2022 DSCP, each recipient may elect to defer receipt of shares and instead receive restricted stock units (“Deferred Stock Units”), which represent contingent rights to receive shares of the Company’s common stock on the date of the recipient’s separation
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options exercised during periods			$ 218,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		0		0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number		0		0
Maximum | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum percentage of target available for common share issuance		100.00%
2011 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance		6,000,000
Common stock reserved for issuance		2,800,060
2022 Directors Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance		200,000
Common stock reserved for issuance		181,450
2022 Directors Stock Compensation Plan | Deferred Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock vesting percentage		100.00%

Amounts Recognized in Financial Statements with Respect to Plans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total cost of the Plans during the period	$ (43)	$ 1,144	$ 3,573	$ 4,270
Amount of related income tax benefit recognized during the period	(313)	(286)	(1,997)	(3,878)
Net cost of the Plans during the period	$ (356)	$ 858	$ 1,576	$ 392

Schedule of Information on Restricted Stock Units (Detail) - $ / shares			9 Months Ended
		Feb. 02, 2024	Sep. 28, 2024
Number of Shares
Granted		58,268
Restricted Stock Units (RSUs)
Number of Shares
Beginning Balance			132,722
Granted			102,762
Shares earned in excess of target	[1]		1,791
Vested shares			(45,057)
Forfeited			(29,801)
Ending Balance			162,417
Weighted Average Grant Date Fair Value
Beginning Balance			$ 138.93
Granted			138.85
Shares earned in excess of target	[1]		51.42
Vested shares			115.69
Forfeited			140.2
Ending Balance			$ 144.13
[1] Represents additional shares earned under the April 24, 2018 and July 1, 2019 RSU awards as total shareholder return during the applicable performance period exceeded target performance level under each of those awards.

Schedule of Information on Non - Vested Restricted Stock Units (Detail) - $ / shares		9 Months Ended
	Feb. 02, 2024	Sep. 28, 2024
Number of Shares and Deferred Stock Units
Granted	58,268
Non Vested Restricted Stock and Deferred Stock Units
Number of Shares and Deferred Stock Units
Beginning Balance		46,348
Granted		31,525
Vested		(25,647)
Forfeited		(4,707)
Ending Balance		47,519
Weighted Average Grant Date Fair Value
Beginning Balance		$ 158.38
Granted		187.08
Vested		151.16
Forfeited		169.92
Ending Balance		$ 180.17

Income Taxes - Additional Information (Detail)	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023
Income Taxes [Line Items]
Corporate income tax rate	21.00%	21.00%
Estimated annual effective income tax rate	24.30%	24.40%
Effective income tax rate	23.40%	24.00%

Earnings Per Share - Additional Information (Detail)	Sep. 28, 2024 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	0

Additional Cash Flow Information - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 28, 2024	Jun. 29, 2024	Apr. 01, 2023	Sep. 28, 2024	Sep. 30, 2023
Supplemental Cash Flow Information [Abstract]
Income taxes paid				$ 45,638,000	$ 68,136,000
Interest paid				2,641,000	2,814,000
Capital expenditures incurred but not yet paid	$ 6,690,000
Right-of-use asset obtained in exchange for finance lease liability				24,238,000
Treasury stock repurchased at cost during the period value	22,393,000	$ 56,995,000	$ 15,433,000	79,388,000
Treasury stock repurchased at cost during the period value excluding tax				78,697,000	$ 15,433,000
Other Noncurrent Liabilities
Supplemental Cash Flow Information [Abstract]
Capital expenditures incurred but not yet paid	5,489,000
Accounts Payable
Supplemental Cash Flow Information [Abstract]
Capital expenditures incurred but not yet paid	1,201,000
Treasury Stock, Common Shares
Supplemental Cash Flow Information [Abstract]
Treasury stock repurchased at cost during the period value	$ 22,393,000	$ 56,995,000	$ 15,433,000
Excise tax payable current				$ 691,000

Segment Information - Additional Information (Detail) - Customer	9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Number of customers accounting for 10 percent or more of total revenue	0	0
No single customer accounted for benchmark percentage to be considered major customer	10.00%	10.00%

Information Regarding Reportable Business Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023	Dec. 30, 2023
Segment Reporting Information [Line Items]
Revenue	$ 1,213,867	$ 1,289,345	$ 3,609,915	$ 4,098,877
Investment income	3,922	3,022	10,988	6,874
Operating income	63,116	80,348	191,136	269,582
Expenditures on long-lived assets	7,478	2,763	24,256	15,394
Goodwill	41,122	41,934	41,122	41,934	$ 42,275
Related Party
Segment Reporting Information [Line Items]
Revenue	12,065	11,960	65,411	64,138
Transportation Logistics
Segment Reporting Information [Line Items]
Revenue	1,198,334	1,271,385	3,561,941	4,043,824
Operating income	47,618	63,974	141,070	222,827
Expenditures on long-lived assets	7,478	2,763	24,256	15,394
Goodwill	41,122	41,934	41,122	41,934
Insurance
Segment Reporting Information [Line Items]
Revenue	15,533	17,960	47,974	55,053
Investment income	3,922	3,022	10,988	6,874
Operating income	15,498	16,374	50,066	46,755
Insurance | Related Party
Segment Reporting Information [Line Items]
Revenue	$ 12,065	$ 11,960	$ 65,411	$ 64,138

Other Comprehensive Income - Components of and Changes in Accumulated Other Comprehensive (loss) Income, Net of Related Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ 983,923
Other comprehensive income (loss)	$ 923	$ (1,318)	(1,690)	$ 3,295
Ending Balance	1,015,918		1,015,918
Unrealized Holding (Losses) Gains on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(5,010)
Other comprehensive income (loss)			3,023
Ending Balance	(1,987)		(1,987)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(1,855)
Other comprehensive income (loss)			(4,713)
Ending Balance	(6,568)		(6,568)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(6,865)
Other comprehensive income (loss)			(1,690)
Ending Balance	$ (8,555)		$ (8,555)

Investments - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 28, 2024	Dec. 30, 2023
Debt Securities, Available-for-sale [Line Items]
Investments maximum maturity period	5 years
Unrealized gain (loss), net of unrealized gains/losses, on the investments in the bond portfolio	$ (2,531,000)	$ (6,382,000)

Amortized Cost and Fair Value of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 151,390	$ 158,143
Gross Unrealized Gains	1,019	281
Gross Unrealized Losses	3,550	6,663
Fair Value	148,859	151,761
Money market investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	14,998	16,832
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	14,998	16,832
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	17,535	16,543
Gross Unrealized Gains	21	0
Gross Unrealized Losses	1,563	2,236
Fair Value	15,993	14,307
Corporate bonds, commercial paper and direct obligations of government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	118,857	118,481
Gross Unrealized Gains	998	279
Gross Unrealized Losses	1,987	4,384
Fair Value	$ 117,868	114,376
U.S. Treasury obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		6,287
Gross Unrealized Gains		2
Gross Unrealized Losses		43
Fair Value		$ 6,246

Schedule of Unrealized Loss on Available-for-Sale Investments (Detail) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Debt Securities, Available-for-sale [Line Items]
Available-for-sale investments with unrealized losses, Less than 12 months, Fair Value	$ 0	$ 3,506
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss	0	42
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value	78,431	103,453
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss	3,550	6,621
Available-for-sale investments with unrealized losses, Fair Value, Total	78,431	106,959
Available-for-sale investments with unrealized losses, Unrealized Loss, Total	3,550	6,663
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale investments with unrealized losses, Less than 12 months, Fair Value	0	0
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss	0	0
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value	13,107	14,307
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss	1,563	2,236
Available-for-sale investments with unrealized losses, Fair Value, Total	13,107	14,307
Available-for-sale investments with unrealized losses, Unrealized Loss, Total	1,563	2,236
Corporate bonds, commercial paper and direct obligations of government agencies
Debt Securities, Available-for-sale [Line Items]
Available-for-sale investments with unrealized losses, Less than 12 months, Fair Value	0	3,506
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss	0	42
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value	65,324	86,841
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss	1,987	4,342
Available-for-sale investments with unrealized losses, Fair Value, Total	65,324	90,347
Available-for-sale investments with unrealized losses, Unrealized Loss, Total	$ 1,987	4,384
U.S. Treasury obligations
Debt Securities, Available-for-sale [Line Items]
Available-for-sale investments with unrealized losses, Less than 12 months, Fair Value		0
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss		0
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value		2,305
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss		43
Available-for-sale investments with unrealized losses, Fair Value, Total		2,305
Available-for-sale investments with unrealized losses, Unrealized Loss, Total		$ 43

Leases - Additional Information (Detail)	Sep. 28, 2024 USD ($)
Leases Disclosure [Line Items]
Finance Lease Option to Purchase Option Value	$ 1
Lessee, Finance Lease, Term of Contract	5 years

Leases - Components of Lease Cost for Finance Leases and Operating Leases (Detail) $ in Thousands	9 Months Ended
	Sep. 28, 2024 USD ($)
Finance leases:
Amortization of right-of-use assets	$ 12,901
Interest on lease liability	1,863
Total finance lease cost	14,764
Operating leases:
Lease cost	2,883
Variable lease cost	0
Sublease income	(4,273)
Total net operating lease income	(1,390)
Total net lease cost	$ 13,374

Leases - Classification on our Consolidated Balance Sheet (Detail) $ in Thousands	Sep. 28, 2024 USD ($)
Operating lease right-of-use assets	$ 1,074
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent
Finance lease assets	$ 108,185
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net
Total lease assets	$ 109,259

Leases - Undiscounted Cash Flows for the Finance and Operating Leases (Detail) - USD ($) $ in Thousands	Sep. 28, 2024	Dec. 30, 2023
Operating Leased Assets [Line Items]
2024 Remainder	$ 8,069
2025	28,968
2026	21,074
2027	10,686
2028	6,584
Thereafter	2,963
Total future minimum lease payments	78,344
Less amount representing interest (1.6% to 6.5%)	5,838
Present value of minimum lease payments	72,506
Current maturities of long-term debt	27,672	$ 27,876
Long-term debt, excluding current maturities	44,834	$ 43,264
2024 Remainder	191
2025	533
2026	213
2027	175
2028	49
Thereafter	0
Total future minimum lease payments	1,161
Less amount representing interest (1.6% to 6.5%)	87
Present value of minimum lease payments	1,074
Operating lease, liability, current	$ 618
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Deferred Income Taxes and Other Liabilities, Noncurrent
Operating lease, liability, non-current	$ 456

Leases - Undiscounted Cash Flows for the Finance and Operating Leases (Parenthetical) (Detail)	Sep. 28, 2024
Maximum
Finance lease Interest rate percentage	6.50%
Minimum
Finance lease Interest rate percentage	1.60%

Leases - Weighted Average Remaining Lease Term and the Weighted Average Discount Rate for Finance and Operating leases (Detail)	Sep. 28, 2024
Weighted average remaining lease term (years)	3 years 2 months 12 days
Weighted average discount rate	4.20%
Weighted average remaining lease term (years)	2 years 4 months 24 days
Weighted average discount rate	6.50%

Debt - Additional Information (Detail) - USD ($)		9 Months Ended
	Jul. 01, 2022	Sep. 28, 2024	Dec. 30, 2023
Debt Instrument [Line Items]
Debt Outstanding Excluding Capital Lease Obligations		$ 0	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Debt Outstanding Excluding Capital Lease Obligations		$ 0
Credit facility, initiation date	Jul. 01, 2022
Credit facility, borrowing capacity	$ 45,000,000
Credit facility, maximum borrowing capacity	$ 600,000,000
Credit facility, debt covenants compliance		The Company is currently in compliance with all of the debt covenants under the Credit Agreement.
Additional overnight secured financing rate	0.10%
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Credit facility, unused credit commitment fee		0.20%
Credit facility event of default, minimum percentage that a person or group should acquire outstanding capital stock		35.00%
Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Borrowings, basis spread on variable rate		1.25%
Revolving Credit Facility | Minimum | Base Rate
Debt Instrument [Line Items]
Borrowings, basis spread on variable rate		0.25%
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Credit facility, borrowing capacity	$ 300,000,000
Credit facility, unused credit commitment fee		0.30%
Maximum Leverage ratio beyond which amount of cash dividends and other distributions to stockholders is limited		250.00%
Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Borrowings, basis spread on variable rate		2.00%
Revolving Credit Facility | Maximum | Base Rate
Debt Instrument [Line Items]
Borrowings, basis spread on variable rate		1.00%

Commitments and Contingencies - Additional Information (Detail)	Sep. 28, 2024 USD ($)
Current Investments | Collateral Pledged
Commitments and Contingencies Disclosure [Line Items]
Investments providing collateral for letters of credit to guarantee insurance claims	$ 62,451,000
Non-Current Investments
Commitments and Contingencies Disclosure [Line Items]
Total non-current investments	86,408,000
Non-Current Investments | Collateral Pledged
Commitments and Contingencies Disclosure [Line Items]
Investments providing collateral for letters of credit to guarantee insurance claims	18,790,000
Revolving Credit Facility
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding	35,250,000
Guarantee Payment of Insurance Claims
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding	$ 73,117,000

Change in Accounting Estimate for Self-Insured Claims - Schedule Of Change In Accounting Estimate (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2024	Sep. 30, 2023	Sep. 28, 2024	Sep. 30, 2023
Change in Accounting Estimate [Line Items]
Operating income	$ 63,116	$ 80,348	$ 191,136	$ 269,582
Net income	$ 50,033	$ 61,653	$ 149,753	$ 206,407
Basic and diluted earnings per share	$ 1.41	$ 1.71	$ 4.21	$ 5.74
Basic and diluted earnings per share	$ 1.41	$ 1.71	$ 4.21	$ 5.74
Development Of Prior Year Self Insured Claims Estimates
Change in Accounting Estimate [Line Items]
Operating income	$ 4,550	$ 2,323	$ 6,666	$ 5,154
Net income	$ 3,444	$ 1,756	$ 5,046	$ 3,896
Basic and diluted earnings per share	$ 0.1	$ 0.05	$ 0.14	$ 0.11
Basic and diluted earnings per share	$ 0.1	$ 0.05	$ 0.14	$ 0.11

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