Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LSTR | |
Entity Registrant Name | LANDSTAR SYSTEM INC | |
Entity Central Index Key | 853,816 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 42,067,995 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 220,605 | $ 242,416 |
Short-term investments | 39,014 | 48,928 |
Trade accounts receivable, less allowance of $6,496 and $6,131 | 631,828 | 631,164 |
Other receivables, including advances to independent contractors, less allowance of $6,796 and $6,012 | 27,880 | 24,301 |
Other current assets | 9,373 | 14,394 |
Total current assets | 928,700 | 961,203 |
Operating property, less accumulated depreciation and amortization of $224,042 and $218,700 | 265,540 | 276,011 |
Goodwill | 39,363 | 39,065 |
Other assets | 86,670 | 76,181 |
Total assets | 1,320,273 | 1,352,460 |
Current Liabilities | ||
Cash overdraft | 36,320 | 42,242 |
Accounts payable | 282,480 | 285,132 |
Current maturities of long-term debt | 39,931 | 42,051 |
Insurance claims | 39,547 | 38,919 |
Dividends payable | 62,985 | |
Accrued compensation | 12,459 | 30,103 |
Other current liabilities | 62,206 | 47,211 |
Total current liabilities | 472,943 | 548,643 |
Long-term debt, excluding current maturities | 73,350 | 83,062 |
Insurance claims | 30,252 | 30,141 |
Deferred income taxes and other noncurrent liabilities | 37,448 | 36,737 |
Equity | ||
Landstar System, Inc. and subsidiary shareholders' equity Common stock, $0.01 par value, authorized 160,000,000 shares, issued 67,836,164 and 67,740,380 shares | 678 | 677 |
Additional paid-in capital | 211,933 | 209,599 |
Retained earnings | 1,663,140 | 1,611,158 |
Cost of 25,768,669 and 25,749,493 shares of common stock in treasury | (1,169,458) | (1,167,600) |
Accumulated other comprehensive loss | (3,551) | (3,162) |
Total Landstar System, Inc. and subsidiary shareholders' equity | 702,742 | 650,672 |
Noncontrolling interest | 3,538 | 3,205 |
Total equity | 706,280 | 653,877 |
Total liabilities and equity | $ 1,320,273 | $ 1,352,460 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Allowance on trade accounts receivable | $ 6,496 | $ 6,131 |
Allowance on other receivables | 6,796 | 6,012 |
Accumulated depreciation and amortization on operating property | $ 224,042 | $ 218,700 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 160,000,000 | 160,000,000 |
Common stock, issued shares | 67,836,164 | 67,740,380 |
Treasury stock, shares | 25,768,669 | 25,749,493 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Revenue | $ 1,047,926 | $ 780,908 |
Investment income | 861 | 414 |
Costs and expenses: | ||
Purchased transportation | 810,297 | 595,523 |
Commissions to agents | 82,125 | 63,798 |
Other operating costs, net of gains on asset sales/dispositions | 7,604 | 6,897 |
Insurance and claims | 17,360 | 14,513 |
Selling, general and administrative | 45,251 | 38,323 |
Depreciation and amortization | 10,997 | 9,934 |
Total costs and expenses | 973,634 | 728,988 |
Operating income | 75,153 | 52,334 |
Interest and debt expense | 800 | 1,083 |
Income before income taxes | 74,353 | 51,251 |
Income taxes | 16,880 | 18,868 |
Net income | 57,473 | 32,383 |
Less: Net loss attributable to noncontrolling interest | (44) | |
Net income attributable to Landstar System, Inc. and subsidiary | $ 57,517 | $ 32,383 |
Earnings per common share attributable to Landstar System, Inc. and subsidiary | $ 1.37 | $ 0.77 |
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary | $ 1.37 | $ 0.77 |
Average number of shares outstanding: | ||
Earnings per common share | 42,038,000 | 41,879,000 |
Diluted earnings per share | 42,098,000 | 41,998,000 |
Dividends per common share | $ 0.15 | $ 0.09 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Net income attributable to Landstar System, Inc. and subsidiary | $ 57,517 | $ 32,383 |
Other comprehensive income (loss): | ||
Unrealized holding (losses) gains on available-for-sale investments, net of tax (benefit) expense of $(191) and $35 | (730) | 64 |
Foreign currency translation gains | 341 | 137 |
Other comprehensive (loss) income | (389) | 201 |
Comprehensive income attributable to Landstar System, Inc. and subsidiary | $ 57,128 | $ 32,584 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Unrealized holding (losses) gains on available-for-sale investments, tax (benefit) expense | $ (191) | $ 35 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 57,473 | $ 32,383 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of operating property and intangible assets | 10,997 | 9,934 |
Non-cash interest charges | 63 | 64 |
Provisions for losses on trade and other accounts receivable | 2,735 | 1,857 |
Gains on sales/disposals of operating property | (852) | (463) |
Deferred income taxes, net | (757) | (709) |
Stock-based compensation | 3,710 | 994 |
Changes in operating assets and liabilities: | ||
Decrease in trade and other accounts receivable | 2,901 | 16,427 |
Decrease (increase) in other assets | 4,311 | (174) |
Decrease in accounts payable | (9,127) | (15,424) |
(Decrease) increase in other liabilities | (191) | 13,357 |
Increase in insurance claims | 739 | 3,702 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 72,002 | 61,948 |
INVESTING ACTIVITIES | ||
Sales and maturities of investments | 12,698 | 23,155 |
Purchases of investments | (13,399) | (23,678) |
Purchases of operating property | (3,814) | (4,978) |
Proceeds from sales of operating property | 2,285 | 1,665 |
NET CASH USED BY INVESTING ACTIVITIES | (2,230) | (3,836) |
FINANCING ACTIVITIES | ||
Decrease in cash overdraft | (5,922) | (6,878) |
Dividends paid | (69,293) | (3,770) |
Proceeds from exercises of stock options | 979 | 1,717 |
Taxes paid in lieu of shares issued related to stock-based compensation plans | (2,704) | (339) |
Purchases of common stock | (1,508) | |
Principal payments on capital lease obligations | (11,832) | (12,408) |
Payment of contingent consideration | (985) | |
NET CASH USED BY FINANCING ACTIVITIES | (91,265) | (21,678) |
Effect of exchange rate changes on cash and cash equivalents | (318) | 137 |
(Decrease) increase in cash and cash equivalents | (21,811) | 36,571 |
Cash and cash equivalents at beginning of period | 242,416 | 178,897 |
Cash and cash equivalents at end of period | $ 220,605 | $ 215,468 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock at Cost | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests |
Beginning Balance (in shares) at Dec. 30, 2017 | 67,740,380 | 25,749,493 | |||||
Beginning Balance at Dec. 30, 2017 | $ 653,877 | $ 677 | $ 209,599 | $ 1,611,158 | $ (1,167,600) | $ (3,162) | $ 3,205 |
Net income (loss) | 57,473 | 57,517 | (44) | ||||
Dividends | (6,308) | (6,308) | |||||
Purchases of common stock (in shares) | 14,354 | ||||||
Purchases of common stock | (1,508) | $ (1,508) | |||||
Issuance of stock related to stock-based compensation plans (in shares) | 95,784 | 4,822 | |||||
Issuance of stock related to stock-based compensation plans | (1,725) | $ 1 | (1,376) | $ (350) | |||
Stock-based compensation | 3,710 | 3,710 | |||||
Other comprehensive (loss) income | (12) | (389) | 377 | ||||
Ending Balance (in shares) at Mar. 31, 2018 | 67,836,164 | 25,768,669 | |||||
Ending Balance at Mar. 31, 2018 | 706,280 | $ 678 | $ 211,933 | 1,663,140 | $ (1,169,458) | $ (3,551) | $ 3,538 |
Adoption of accounting standards (Note 11) | Accounting Standards Update 2014-09 | $ 773 | $ 773 |
Consolidated Statement of Chan9
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Dividends per common share | $ 0.15 | $ 0.09 |
Business Description
Business Description | 3 Months Ended |
Mar. 31, 2018 | |
Business Description | 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. Landstar owns, through various subsidiaries, a controlling interest in Landstar Metro, S.A.P.I. de C.V., a transportation logistics company (“Landstar Metro”), and Landstar Metro Servicios S.A.P.I. de C.V., a services company (“Landstar Servicios”), each based in Mexico City, Mexico. Given Landstar’s controlling interest in each of Landstar Metro and Landstar Servicios, the accounts of Landstar Metro and Landstar Servicios have been consolidated herein and a noncontrolling interest has been recorded for the noncontrolling investors’ interests in the net assets and operations of Landstar Metro and Landstar Servicios. |
Acquired Business and Noncontro
Acquired Business and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2018 | |
Acquired Business and Noncontrolling Interests | (1) Acquired Business and Noncontrolling Interests During 2017, the Company incorporated each of Landstar Metro and Landstar Servicios. On September 20, 2017, Landstar Metro acquired substantially all of the assets of the asset-light transportation logistics business of Fletes Avella, S.A. de C.V., a Mexican transportation logistics company. At March 31, 2018 and December 30, 2017, there was approximately $700,000 and $1,900,000, respectively, in liabilities outstanding consisting of additional contingent purchase price and associated indirect taxes. In connection with the acquisition, individuals affiliated with the seller subscribed in the aggregate for a 30% equity interest in each of Landstar Metro and Landstar Servicios. The asset acquisition by Landstar Metro was accounted for as a business combination in accordance with Accounting Standards Codification 805, Business Combinations As it relates to the noncontrolling interests of Landstar Metro and Landstar Servicios, the Company has the option to purchase, and the minority equityholders have the option to sell, during the period commencing on the third anniversary of September 20, 2017, the closing date of the subscription by the minority equityholders (the “Closing Date”), and at any time after the fourth anniversary of the Closing Date, at fair value all but not less than all of the noncontrolling interests in Landstar Metro and Landstar Servicios. The noncontrolling interests are also subject to customary restrictions on transfer, including a right of first refusal in favor of the Company. |
Share-based Payment Arrangement
Share-based Payment Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
Share-based Payment Arrangements | (2) Share-based Payment Arrangements As of March 31, 2018, the Company had two employee equity incentive plans, the 2002 employee stock option and stock incentive plan (the “ESOSIP”) and the 2011 equity incentive plan (the “2011 EIP”). No further grants can be made under the ESOSIP. The Company also has a stock compensation plan for members of its Board of Directors, the Amended and Restated 2013 Directors Stock Compensation Plan (as amended and restated as of May 17, 2016, the “2013 DSCP”). 6,000,000 shares of the Company’s common stock were authorized for issuance under the 2011 EIP and 115,000 shares of the Company’s common stock were authorized for issuance under the 2013 DSCP. The ESOSIP, 2011 EIP and 2013 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): Thirteen Weeks Ended March 31, 2018 April 1, 2017 Total cost of the Plans during the period $ 3,710 $ 994 Amount of related income tax benefit recognized during the period (2,251 ) (1,127 ) Net cost of the Plans during the period $ 1,459 $ (133 ) Included in income tax benefits recognized in the thirteen-week periods ended March 31, 2018 and April 1, 2017 were income tax benefits of $50,000 and $221,000, respectively, recognized on disqualifying dispositions of the Company’s common stock by employees who obtained shares of common stock through exercises of incentive stock options. Also included in income tax benefits recognized in the thirteen-week periods ended March 31, 2018 and April 1, 2017 were excess tax benefits from stock-based awards of $1,298,000 and $563,000, respectively. As of March 31, 2018, there were 78,682 shares of the Company’s common stock reserved for issuance under the 2013 DSCP and 4,519,920 shares of the Company’s common stock reserved for issuance in the aggregate under the ESOSIP and 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, 2017 387,372 $ 55.75 Granted 55,651 $ 103.47 Vested (67,971 ) $ 53.92 Forfeited (92,880 ) $ 52.36 Outstanding at March 31, 2018 282,172 $ 66.72 During the thirteen-week period ended March 31, 2018, the Company granted RSUs with a performance condition. RSUs with a performance condition granted on February 2, 2018 may vest on January 31 of 2021, 2022 and 2023 based on growth in operating income and pre-tax 10-K. The Company recognized approximately $3,153,000 and $524,000 of share-based compensation expense related to RSU awards in the thirteen-week periods ended March 31, 2018 and April 1, 2017, respectively. As of March 31, 2018, there was a maximum of $30.2 million of total unrecognized compensation cost related to RSU awards granted under the Plans with an expected average remaining life of approximately 3.5 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. Stock Options The following table summarizes information regarding the Company’s outstanding stock options under the Plans: Weighted Average Number of Weighted Average Remaining Aggregate Intrinsic Options per Share Term (years) Value (000s) Options outstanding at December 30, 2017 189,040 $ 49.34 Exercised (40,418 ) $ 48.42 Options outstanding at March 31, 2018 148,622 $ 49.59 3.7 $ 8,927 Options exercisable at March 31, 2018 147,622 $ 49.53 3.7 $ 8,875 The total intrinsic value of stock options exercised during the thirteen-week periods ended March 31, 2018 and April 1, 2017 was $2,463,000 and $3,620,000, respectively. As of March 31, 2018, there was no unrecognized compensation cost related to non-vested Non-vested The following table summarizes information regarding the Company’s outstanding shares of non-vested Number of Shares and Deferred Stock Weighted Average Grant Date Fair Value Non-vested 54,755 $ 78.02 Granted 16,863 $ 114.13 Vested (9,819 ) $ 65.27 Forfeited (1,757 ) $ 71.12 Non-vested 60,042 $ 90.45 The fair value of each share of non-vested non-vested As of March 31, 2018, there was $4,236,000 of total unrecognized compensation cost related to non-vested non-vested |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes | (3) Income Taxes The Tax Cuts and Jobs Act (the “Tax Reform Act”) permanently reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. The provisions for income taxes for the 2018 and 2017 thirteen-week periods were based on estimated annual effective income tax rates of 24.5% and 38.2%, respectively, adjusted for discrete events, such as benefits resulting from stock-based awards. The applicable effective income tax rates for the 2018 and 2017 thirteen-week periods were 22.7% and 36.8%, respectively, which were higher than the applicable statutory federal income tax rates of 21% and 35%, respectively. The increase as compared to the statutory federal income tax rate for the 2018 thirteen-week period was primarily attributable to state taxes, the elimination of the performance-based exception under Section 162(m) included in the Tax Reform Act and the meals and entertainment exclusion, partially offset by excess tax benefits realized on stock based awards. The increase as compared to the statutory federal income tax rate for the 2017 thirteen-week period was primarily attributable to state taxes, the meals and entertainment exclusion and non-deductible |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share | (4) Earnings Per Share Earnings per common share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of shares outstanding, including outstanding non-vested The following table provides a reconciliation of the average number of common shares outstanding used to calculate earnings per common share attributable to Landstar System, Inc. and subsidiary to the average number of common shares and common share equivalents outstanding used to calculate diluted earnings per share attributable to Landstar System, Inc. and subsidiary (in thousands): Thirteen Weeks Ended March 31, 2018 April 1, 2017 Average number of common shares outstanding 42,038 41,879 Incremental shares from assumed exercises of stock options 60 119 Average number of common shares and common share equivalents outstanding 42,098 41,998 For each of the thirteen-week periods ended March 31, 2018 and April 1, 2017, no options outstanding to purchase shares of common stock were antidilutive. Outstanding RSUs were excluded from the calculation of diluted earnings per share attributable to Landstar System, Inc. and subsidiary for all periods because the performance metric requirements or market condition for vesting had not been satisfied. |
Additional Cash Flow Informatio
Additional Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Additional Cash Flow Information | (5) Additional Cash Flow Information During the 2018 thirteen-week period, Landstar paid income taxes and interest of $464,000 and $976,000, respectively. During the 2017 thirteen-week period, Landstar paid income taxes and interest of $5,464,000 and $1,099,000, respectively. Landstar did not acquire any operating property by entering into capital leases in either the 2018 or 2017 thirteen-week periods. During the 2018 thirteen-week period, Landstar paid $2,162,000 relating to the completion of its freight staging and transload facility in Laredo, TX, for which the Company accrued a corresponding liability included in accounts payable at December 30, 2017. Capital expenditure purchases are recorded as cash outflows from investing activities in the consolidated statement of cash flows in the period in which they are paid. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information | (6) Segment Information The following table summarizes information about the Company’s reportable business segments as of and for the thirteen-week periods ended March 31, 2018 and April 1, 2017 (in thousands): Thirteen Weeks Ended March 31, 2018 April 1, 2017 Transportation Logistics Insurance Total Transportation Logistics Insurance Total External revenue $ 1,035,640 $ 12,286 $ 1,047,926 $ 769,348 $ 11,560 $ 780,908 Internal revenue 7,498 7,498 7,334 7,334 Investment income 861 861 414 414 Operating income 67,300 7,853 75,153 44,114 8,220 52,334 Expenditures on long-lived assets 3,814 3,814 4,978 4,978 Goodwill 39,363 39,363 31,134 31,134 In the thirteen-week periods ended March 31, 2018 and April 1, 2017, no single customer accounted for more than 10% of the Company’s consolidated revenue. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Other Comprehensive Income | (7) Other Comprehensive Income The following table presents the components of and changes in accumulated other comprehensive income attributable to Landstar System, Inc. and subsidiary, net of related income taxes, as of and for the thirteen-week period ended March 31, 2018 (in thousands): Unrealized Holding Losses on Available-for- Sale Securities Foreign Currency Total Balance as of December 30, 2017 $ (144 ) $ (3,018 ) $ (3,162 ) Other comprehensive (loss) income (730 ) 341 (389 ) Balance as of March 31, 2018 $ (874 ) $ (2,677 ) $ (3,551 ) 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 thirteen-week period ended March 31, 2018. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments | (8) Investments Investments include primarily investment-grade corporate bonds 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 available-for-sale non-transferability, The amortized cost and fair values of available-for-sale Gross Gross Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2018 Money market investments $ 26,096 $ — $ — $ 26,096 Asset-backed securities 1,878 — 8 1,870 Corporate bonds and direct obligations of government agencies 83,764 25 1,130 82,659 Total $ 111,738 $ 25 $ 1,138 $ 110,625 December 30, 2017 Money market investments $ 27,895 $ — $ — $ 27,895 Asset-backed securities 2,805 — 5 2,800 Corporate bonds and direct obligations of government agencies 80,442 117 335 80,224 Total $ 111,142 $ 117 $ 340 $ 110,919 For those available-for-sale Less than 12 months 12 months or longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss March 31, 2018 Asset-backed securities $ 1,870 $ 8 $ — $ — $ 1,870 $ 8 Corporate bonds and direct obligations of government agencies 65,717 953 9,931 177 75,648 1,130 Total $ 67,587 $ 961 $ 9,931 $ 177 $ 77,518 $ 1,138 December 30, 2017 Asset-backed securities $ 1,864 $ 4 $ 632 $ 1 $ 2,496 $ 5 Corporate bonds and direct obligations of government agencies 41,322 220 14,016 115 55,338 335 Total $ 43,186 $ 224 $ 14,648 $ 116 $ 57,834 $ 340 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 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, the Company does not consider the unrealized losses on these securities to be other-than-temporary at March 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies | (9) Commitments and Contingencies Short-term investments include $39,014,000 in current maturities of investments held by the Company’s insurance segment at March 31, 2018. The non-current non-current During 2017, the Company incorporated each of Landstar Metro and Landstar Servicios. On September 20, 2017, Landstar Metro acquired substantially all of the assets of the asset-light transportation logistics business of Fletes Avella, S.A. de C.V., a Mexican transportation logistics company. In connection with the acquisition, individuals affiliated with the seller subscribed in the aggregate for a 30% equity interest in each of Landstar Metro and Landstar Servicios. As it relates to the noncontrolling interests of Landstar Metro and Landstar Servicios, the Company has the option to purchase, and the minority equityholders have the option to sell, during the period commencing on the third anniversary of September 20, 2017, the closing date of the subscription by the minority equityholders (the “Closing Date”), and at any time after the fourth anniversary of the Closing Date, at fair value all but not less than all of the noncontrolling interests in Landstar Metro and Landstar Servicios. The noncontrolling interests are also subject to customary restrictions on transfer, including a right of first refusal in favor of the Company. 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 f
Change in Accounting Estimate for Self-Insured Claims | 3 Months Ended |
Mar. 31, 2018 | |
Change in Accounting Estimate for Self-Insured Claims | (10) 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. The following table summarizes the effect of the increase (decrease) in the cost of insurance claims resulting from unfavorable (favorable) development of prior year self-insured claims estimates on operating income, net income attributable to Landstar System, Inc. and subsidiary and earnings per share attributable to Landstar System, Inc. and subsidiary amounts in the consolidated statements of income for the thirteen-week periods ended March 31, 2018 and April 1, 2017 (in thousands, except per share amounts): Thirteen Weeks Ended March 31, 2018 April 1, 2017 Operating income $ 2,558 $ (104 ) Net income attributable to Landstar System, Inc. and subsidiary 1,931 (64 ) Earnings per share attributable to Landstar System, Inc. and subsidiary $ 0.05 — Diluted earnings per share attributable to Landstar System, Inc. and subsidiary $ 0.05 — |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Recent Accounting Pronouncements | (11) Recent Accounting Pronouncements Adoption of New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers 2014-09”). 2014-09 2014-09 2014-09 The cumulative effect of the changes made to our consolidated December 31, 2017 balance sheet for the adoption of ASU 2014-09 Balance at December 30, 2017 Adjustments Due to ASU 2014-09 Balance at December 31, 2017 Balance Sheet Assets Trade accounts receivable $ 631,164 $ 9,879 $ 641,043 Other current assets, net 14,394 (469 ) 13,925 Liabilities Accounts payable 285,132 8,637 293,769 Equity Retained earnings 1,611,158 773 1,611,931 In accordance with the new revenue standard requirements, the impact of adoption on our consolidated income statement and balance sheet was as follows (in thousands): For the period ended March 31, 2018 As Reported Balances Without 2014-09 Effect of Change Higher/(Lower) Income statement Revenues Transportation $ 1,035,640 $ 1,033,445 $ 2,195 Insurance 12,286 12,286 — Costs and expenses Purchased transportation 810,297 808,561 1,736 Commissions to agents 82,125 81,974 151 Income taxes 16,880 16,805 75 Net income attributable to Landstar System, Inc. and subsidiary 57,517 57,284 233 March 31, 2018 As Reported Balances Without 2014-09 Effect of Change Higher/(Lower) Balance Sheet Assets Trade accounts receivable, net $ 631,828 $ 619,754 $ 12,074 Liabilities Accounts payable 282,480 271,956 10,524 Other current liabilities 62,206 61,662 544 Equity Retained earnings 1,663,140 1,662,134 1,006 Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued Accounting Standards Update 2016-02 Leases 2016-02”). 2016-02 right-of-use 2016-02 2016-02 In June 2016, the FASB issued Accounting Standards Update 2016-13– Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”), 2016-13 2016-13 |
Share-based Payment Arrangeme22
Share-based Payment Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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): Thirteen Weeks Ended March 31, 2018 April 1, 2017 Total cost of the Plans during the period $ 3,710 $ 994 Amount of related income tax benefit recognized during the period (2,251 ) (1,127 ) Net cost of the Plans during the period $ 1,459 $ (133 ) |
Summary of Information Regarding Stock Options | The following table summarizes information regarding the Company’s outstanding stock options under the Plans: Weighted Average Number of Weighted Average Remaining Aggregate Intrinsic Options per Share Term (years) Value (000s) Options outstanding at December 30, 2017 189,040 $ 49.34 Exercised (40,418 ) $ 48.42 Options outstanding at March 31, 2018 148,622 $ 49.59 3.7 $ 8,927 Options exercisable at March 31, 2018 147,622 $ 49.53 3.7 $ 8,875 |
Restricted Stock Units (RSUs) | |
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, 2017 387,372 $ 55.75 Granted 55,651 $ 103.47 Vested (67,971 ) $ 53.92 Forfeited (92,880 ) $ 52.36 Outstanding at March 31, 2018 282,172 $ 66.72 |
Non Vested Restricted Stock and Deferred Stock Units | |
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 Number of Shares and Deferred Stock Weighted Average Grant Date Fair Value Non-vested 54,755 $ 78.02 Granted 16,863 $ 114.13 Vested (9,819 ) $ 65.27 Forfeited (1,757 ) $ 71.12 Non-vested 60,042 $ 90.45 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reconciliation of Average Number of Common Shares Outstanding to Average Number of Diluted Shares Outstanding | The following table provides a reconciliation of the average number of common shares outstanding used to calculate earnings per common share attributable to Landstar System, Inc. and subsidiary to the average number of common shares and common share equivalents outstanding used to calculate diluted earnings per share attributable to Landstar System, Inc. and subsidiary (in thousands): Thirteen Weeks Ended March 31, 2018 April 1, 2017 Average number of common shares outstanding 42,038 41,879 Incremental shares from assumed exercises of stock options 60 119 Average number of common shares and common share equivalents outstanding 42,098 41,998 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Information Regarding Reportable Business Segments | The following table summarizes information about the Company’s reportable business segments as of and for the thirteen-week periods ended March 31, 2018 and April 1, 2017 (in thousands): Thirteen Weeks Ended March 31, 2018 April 1, 2017 Transportation Logistics Insurance Total Transportation Logistics Insurance Total External revenue $ 1,035,640 $ 12,286 $ 1,047,926 $ 769,348 $ 11,560 $ 780,908 Internal revenue 7,498 7,498 7,334 7,334 Investment income 861 861 414 414 Operating income 67,300 7,853 75,153 44,114 8,220 52,334 Expenditures on long-lived assets 3,814 3,814 4,978 4,978 Goodwill 39,363 39,363 31,134 31,134 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 income attributable to Landstar System, Inc. and subsidiary, net of related income taxes, as of and for the thirteen-week period ended March 31, 2018 (in thousands): Unrealized Holding Losses on Available-for- Sale Securities Foreign Currency Total Balance as of December 30, 2017 $ (144 ) $ (3,018 ) $ (3,162 ) Other comprehensive (loss) income (730 ) 341 (389 ) Balance as of March 31, 2018 $ (874 ) $ (2,677 ) $ (3,551 ) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Amortized Cost and Fair Value of Available-for-Sale Investments | The amortized cost and fair values of available-for-sale Gross Gross Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2018 Money market investments $ 26,096 $ — $ — $ 26,096 Asset-backed securities 1,878 — 8 1,870 Corporate bonds and direct obligations of government agencies 83,764 25 1,130 82,659 Total $ 111,738 $ 25 $ 1,138 $ 110,625 December 30, 2017 Money market investments $ 27,895 $ — $ — $ 27,895 Asset-backed securities 2,805 — 5 2,800 Corporate bonds and direct obligations of government agencies 80,442 117 335 80,224 Total $ 111,142 $ 117 $ 340 $ 110,919 |
Schedule of Unrealized Loss on Available-for-Sale Investments | For those available-for-sale Less than 12 months 12 months or longer Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss March 31, 2018 Asset-backed securities $ 1,870 $ 8 $ — $ — $ 1,870 $ 8 Corporate bonds and direct obligations of government agencies 65,717 953 9,931 177 75,648 1,130 Total $ 67,587 $ 961 $ 9,931 $ 177 $ 77,518 $ 1,138 December 30, 2017 Asset-backed securities $ 1,864 $ 4 $ 632 $ 1 $ 2,496 $ 5 Corporate bonds and direct obligations of government agencies 41,322 220 14,016 115 55,338 335 Total $ 43,186 $ 224 $ 14,648 $ 116 $ 57,834 $ 340 |
Change in Accounting Estimate27
Change in Accounting Estimate for Self-Insured Claims (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Effect of Increase in Cost of Insurance and Claims | The following table summarizes the effect of the increase (decrease) in the cost of insurance claims resulting from unfavorable (favorable) development of prior year self-insured claims estimates on operating income, net income attributable to Landstar System, Inc. and subsidiary and earnings per share attributable to Landstar System, Inc. and subsidiary amounts in the consolidated statements of income for the thirteen-week periods ended March 31, 2018 and April 1, 2017 (in thousands, except per share amounts): Thirteen Weeks Ended March 31, 2018 April 1, 2017 Operating income $ 2,558 $ (104 ) Net income attributable to Landstar System, Inc. and subsidiary 1,931 (64 ) Earnings per share attributable to Landstar System, Inc. and subsidiary $ 0.05 — Diluted earnings per share attributable to Landstar System, Inc. and subsidiary $ 0.05 — |
Recent Accounting Pronounceme28
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Standards Update 2014-09 | |
Adoption of New Accounting Standards | The cumulative effect of the changes made to our consolidated December 31, 2017 balance sheet for the adoption of ASU 2014-09 Balance at December 30, 2017 Adjustments Due to ASU 2014-09 Balance at December 31, 2017 Balance Sheet Assets Trade accounts receivable $ 631,164 $ 9,879 $ 641,043 Other current assets, net 14,394 (469 ) 13,925 Liabilities Accounts payable 285,132 8,637 293,769 Equity Retained earnings 1,611,158 773 1,611,931 In accordance with the new revenue standard requirements, the impact of adoption on our consolidated income statement and balance sheet was as follows (in thousands): For the period ended March 31, 2018 As Reported Balances Without 2014-09 Effect of Change Higher/(Lower) Income statement Revenues Transportation $ 1,035,640 $ 1,033,445 $ 2,195 Insurance 12,286 12,286 — Costs and expenses Purchased transportation 810,297 808,561 1,736 Commissions to agents 82,125 81,974 151 Income taxes 16,880 16,805 75 Net income attributable to Landstar System, Inc. and subsidiary 57,517 57,284 233 March 31, 2018 As Reported Balances Without 2014-09 Effect of Change Higher/(Lower) Balance Sheet Assets Trade accounts receivable, net $ 631,828 $ 619,754 $ 12,074 Liabilities Accounts payable 282,480 271,956 10,524 Other current liabilities 62,206 61,662 544 Equity Retained earnings 1,663,140 1,662,134 1,006 |
Acquired Business and Noncont29
Acquired Business and Noncontrolling Interests - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 30, 2017 | Sep. 20, 2017 | Apr. 01, 2017 | |
Goodwill | $ 39,363,000 | $ 39,065,000 | $ 31,134,000 | |
Fletes Avella | Landstar Metro | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, liabilities | 700,000 | $ 1,900,000 | ||
Ownership interest acquired by affiliates | 30.00% | |||
Goodwill | $ 8,500,000 | |||
Percentage of goodwill estimated to be deductible for tax purposes | 70.00% | |||
Percentage of goodwill estimated to be deductible after purchase of noncontrolling interests by the company | 100.00% | |||
Fletes Avella | Landstar Servicios | ||||
Ownership interest acquired by affiliates | 30.00% |
Share-based Payment Arrangeme30
Share-based Payment Arrangements - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)EquityPlanshares | Apr. 01, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of employee equity incentive plans | EquityPlan | 2 | |
Income tax benefit realized on disqualifying dispositions of stock acquired by exercise of incentive stock options | $ 50 | $ 221 |
Accounting Standards Update 2016-09 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Excess tax benefit from stock-based awards | $ 1,298 | 563 |
2013 Directors Stock Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock authorized for issuance | shares | 115,000 | |
Common stock reserved for issuance | shares | 78,682 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognized share-based compensation expense | $ 3,153 | 524 |
Unrecognized compensation cost expected to be recognized over period, years | 3 years 6 months | |
Non Vested Restricted Stock and Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost, other than options | $ 4,236 | |
Unrecognized compensation cost expected to be recognized over period, years | 2 years 10 months 25 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, or 100% on the first anniversary of the date of the grant. For restricted stock awards granted under the 2013 DSCP plan, 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 recipient 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. | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of stock options exercised during periods | $ 2,463 | $ 3,620 |
Unrecognized compensation cost, stock options | 0 | |
Maximum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost, other than options | $ 30,200 | |
2011 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock authorized for issuance | shares | 6,000,000 | |
2013 Directors Stock Compensation Plan | Deferred Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock vesting percentage | 100.00% | |
Other Stock Compensation Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance | shares | 4,519,920 |
Amounts Recognized in Financial
Amounts Recognized in Financial Statements with Respect to Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total cost of the Plans during the period | $ 3,710 | $ 994 |
Amount of related income tax benefit recognized during the period | (2,251) | (1,127) |
Net cost of the Plans during the period | $ 1,459 | $ (133) |
Schedule of Information on Rest
Schedule of Information on Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Shares | |
Beginning Balance | shares | 387,372 |
Granted | shares | 55,651 |
Vested | shares | (67,971) |
Forfeited | shares | (92,880) |
Ending Balance | shares | 282,172 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 55.75 |
Granted | $ / shares | 103.47 |
Vested | $ / shares | 53.92 |
Forfeited | $ / shares | 52.36 |
Ending Balance | $ / shares | $ 66.72 |
Summary of Information Regardin
Summary of Information Regarding Stock Options (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Number of Options | |
Beginning Balance, number of options | shares | 189,040 |
Exercised, number of options | shares | (40,418) |
Ending Balance, number of options | shares | 148,622 |
Options exercisable at the ending, Number of Options | shares | 147,622 |
Weighted Average Exercise Price per Share | |
Beginning Balance, Weighted Average Exercise Price per Share | $ / shares | $ 49.34 |
Exercised, Weighted Average Exercise Price per Share | $ / shares | 48.42 |
Ending Balance, Weighted Average Exercise Price per Share | $ / shares | 49.59 |
Options exercisable at March 31, 2018 | $ / shares | $ 49.53 |
Weighted Average Remaining Contractual Term (years) | |
Options outstanding at March 31, 2018 | 3 years 8 months 12 days |
Options exercisable at March 31, 2018 | 3 years 8 months 12 days |
Aggregate Intrinsic Value | |
Options outstanding at March 31, 2018 | $ | $ 8,927 |
Options exercisable at March 31, 2018 | $ | $ 8,875 |
Schedule of Information on Non
Schedule of Information on Non - Vested Restricted Stock Units (Detail) - Non Vested Restricted Stock and Deferred Stock Units | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Shares and Deferred Stock Units | |
Beginning Balance | shares | 54,755 |
Granted | shares | 16,863 |
Vested | shares | (9,819) |
Forfeited | shares | (1,757) |
Ending Balance | shares | 60,042 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 78.02 |
Granted | $ / shares | 114.13 |
Vested | $ / shares | 65.27 |
Forfeited | $ / shares | 71.12 |
Ending Balance | $ / shares | $ 90.45 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 30, 2017 | |
Income Taxes [Line Items] | |||
Corporate income tax rate | 21.00% | 35.00% | |
Estimated annual effective income tax rate | 24.50% | 38.20% | |
Effective income tax rate | 22.70% | 36.80% |
Reconciliation of Average Numbe
Reconciliation of Average Number of Common Shares and Common Share Equivalents Outstanding (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Average number of common shares outstanding | 42,038,000 | 41,879,000 |
Incremental shares from assumed exercises of stock options | 60,000 | 119,000 |
Average number of common shares and common share equivalents outstanding | 42,098,000 | 41,998,000 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options excluded from calculation of diluted earnings per share, antidilutive | 0 | 0 |
Additional Cash Flow Informat38
Additional Cash Flow Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid | $ 464 | $ 5,464 |
Interest paid | 976 | 1,099 |
Payment to acquire operating property | 3,814 | $ 4,978 |
Laredo, TX | ||
Supplemental Cash Flow Information [Abstract] | ||
Payment to acquire operating property | $ 2,162 |
Information Regarding Reportabl
Information Regarding Reportable Business Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
External revenue | $ 1,047,926 | $ 780,908 | |
Internal revenue | 7,498 | 7,334 | |
Investment income | 861 | 414 | |
Operating income | 75,153 | 52,334 | |
Expenditures on long-lived assets | 3,814 | 4,978 | |
Goodwill | 39,363 | 31,134 | $ 39,065 |
Transportation Logistics | |||
Segment Reporting Information [Line Items] | |||
External revenue | 1,035,640 | 769,348 | |
Operating income | 67,300 | 44,114 | |
Expenditures on long-lived assets | 3,814 | 4,978 | |
Goodwill | 39,363 | 31,134 | |
Insurance | |||
Segment Reporting Information [Line Items] | |||
External revenue | 12,286 | 11,560 | |
Internal revenue | 7,498 | 7,334 | |
Investment income | 861 | 414 | |
Operating income | $ 7,853 | $ 8,220 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Customer | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
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% |
Components of and Changes in Ac
Components of and Changes in Accumulated Other Comprehensive Income, Net of Related Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 650,672 | |
Other comprehensive (loss) income | (389) | $ 201 |
Ending Balance | 702,742 | |
Unrealized Holding Losses on Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (144) | |
Other comprehensive (loss) income | (730) | |
Ending Balance | (874) | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (3,018) | |
Other comprehensive (loss) income | 341 | |
Ending Balance | (2,677) | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (3,162) | |
Ending Balance | $ (3,551) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 30, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments maximum maturity period | 5 years | |
Unrealized losses, net of unrealized gains, on the investments in the bond portfolio | $ 1,113 | $ 223 |
Amortized Cost and Fair Value o
Amortized Cost and Fair Value of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 111,738 | $ 111,142 |
Gross Unrealized Gains | 25 | 117 |
Gross Unrealized Losses | 1,138 | 340 |
Fair Value | 110,625 | 110,919 |
Money market investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 26,096 | 27,895 |
Fair Value | 26,096 | 27,895 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,878 | 2,805 |
Gross Unrealized Losses | 8 | 5 |
Fair Value | 1,870 | 2,800 |
Corporate bonds and direct obligations of government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 83,764 | 80,442 |
Gross Unrealized Gains | 25 | 117 |
Gross Unrealized Losses | 1,130 | 335 |
Fair Value | $ 82,659 | $ 80,224 |
Schedule of Unrealized Loss on
Schedule of Unrealized Loss on Available-for-Sale Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments with unrealized losses, Less than 12 months, Fair Value | $ 67,587 | $ 43,186 |
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss | 961 | 224 |
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value | 9,931 | 14,648 |
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss | 177 | 116 |
Available-for-sale investments with unrealized losses, Fair Value, Total | 77,518 | 57,834 |
Available-for-sale investments with unrealized losses, Unrealized Loss, Total | 1,138 | 340 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments with unrealized losses, Less than 12 months, Fair Value | 1,870 | 1,864 |
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss | 8 | 4 |
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value | 632 | |
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss | 1 | |
Available-for-sale investments with unrealized losses, Fair Value, Total | 1,870 | 2,496 |
Available-for-sale investments with unrealized losses, Unrealized Loss, Total | 8 | 5 |
Corporate bonds and direct obligations of government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments with unrealized losses, Less than 12 months, Fair Value | 65,717 | 41,322 |
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss | 953 | 220 |
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value | 9,931 | 14,016 |
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss | 177 | 115 |
Available-for-sale investments with unrealized losses, Fair Value, Total | 75,648 | 55,338 |
Available-for-sale investments with unrealized losses, Unrealized Loss, Total | $ 1,130 | $ 335 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Sep. 20, 2017 |
Fletes Avella | Landstar Metro | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Ownership interest acquired by affiliates | 30.00% | |
Fletes Avella | Landstar Servicios | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Ownership interest acquired by affiliates | 30.00% | |
Revolving Credit Facility | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Letters of credit outstanding | $ 33,115 | |
Guarantee Payment of Insurance Claims | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Letters of credit outstanding | 61,186 | |
Current Investments | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Investments providing collateral for letters of credit to guarantee insurance claims | 39,014 | |
Non-Current Investments | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Investments providing collateral for letters of credit to guarantee insurance claims | 28,970 | |
Total non-current investments | $ 71,611 |
Effect of Increase in Cost of I
Effect of Increase in Cost of Insurance and Claims (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Change in Accounting Estimate [Line Items] | ||
Operating income | $ 75,153 | $ 52,334 |
Net income attributable to Landstar System, Inc. and subsidiary | $ 57,517 | $ 32,383 |
Earnings per share attributable to Landstar System, Inc. and subsidiary | $ 1.37 | $ 0.77 |
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary | $ 1.37 | $ 0.77 |
Development of Prior Year Self Insured Claims Estimates | ||
Change in Accounting Estimate [Line Items] | ||
Operating income | $ 2,558 | $ (104) |
Net income attributable to Landstar System, Inc. and subsidiary | $ 1,931 | $ (64) |
Earnings per share attributable to Landstar System, Inc. and subsidiary | $ 0.05 | |
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary | $ 0.05 |
Recent Accounting Pronounceme47
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Product Information [Line Items] | ||
Revenue | $ 1,047,926 | $ 780,908 |
BCO Independent Contractor | ||
Product Information [Line Items] | ||
Consolidated revenue, percentage | 45.00% | |
Truck Brokerage Carriers | ||
Product Information [Line Items] | ||
Consolidated revenue, percentage | 48.00% | |
Railroads | ||
Product Information [Line Items] | ||
Consolidated revenue, percentage | 3.00% | |
Air and Ocean Cargo Carriers | ||
Product Information [Line Items] | ||
Consolidated revenue, percentage | 2.00% | |
BCO Independent Contractor and Truck Brokerage Carriers | Van Equipment | ||
Product Information [Line Items] | ||
Revenue | $ 656,135 | |
BCO Independent Contractor and Truck Brokerage Carriers | Unsided/Platform Equipment | ||
Product Information [Line Items] | ||
Revenue | 299,369 | |
BCO Independent Contractor and Truck Brokerage Carriers | Less than Truckload | ||
Product Information [Line Items] | ||
Revenue | $ 23,584 |
Cumulative Effect of Changes Ma
Cumulative Effect of Changes Made to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 30, 2017 |
ASSETS | |||
Trade accounts receivable | $ 631,828 | $ 641,043 | $ 631,164 |
Other current assets, net | 9,373 | 13,925 | 14,394 |
Liabilities | |||
Accounts payable | 282,480 | 293,769 | 285,132 |
Equity | |||
Retained earnings | 1,663,140 | 1,611,931 | 1,611,158 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
ASSETS | |||
Trade accounts receivable | 619,754 | 631,164 | |
Other current assets, net | 14,394 | ||
Liabilities | |||
Accounts payable | 271,956 | 285,132 | |
Equity | |||
Retained earnings | 1,662,134 | $ 1,611,158 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
ASSETS | |||
Trade accounts receivable | 12,074 | 9,879 | |
Other current assets, net | (469) | ||
Liabilities | |||
Accounts payable | 10,524 | 8,637 | |
Equity | |||
Retained earnings | $ 1,006 | $ 773 |
New Revenue Standard Requiremen
New Revenue Standard Requirements Impact of Adoption on Consolidated Income Statement and Balance Sheet (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | Dec. 30, 2017 | |
Revenues | ||||
Revenues | $ 1,047,926 | $ 780,908 | ||
Costs and expenses | ||||
Purchased transportation | 810,297 | 595,523 | ||
Commissions to agents | 82,125 | 63,798 | ||
Income taxes | 16,880 | 18,868 | ||
Net income attributable to Landstar System, Inc. and subsidiary | 57,517 | 32,383 | ||
ASSETS | ||||
Trade accounts receivable, net | 631,828 | $ 641,043 | $ 631,164 | |
Liabilities | ||||
Accounts payable | 282,480 | 293,769 | 285,132 | |
Other current liabilities | 62,206 | 47,211 | ||
Equity | ||||
Retained earnings | 1,663,140 | 1,611,931 | 1,611,158 | |
Transportation Logistics | ||||
Revenues | ||||
Revenues | 1,035,640 | 769,348 | ||
Insurance | ||||
Revenues | ||||
Revenues | 12,286 | $ 11,560 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Costs and expenses | ||||
Purchased transportation | 808,561 | |||
Commissions to agents | 81,974 | |||
Income taxes | 16,805 | |||
Net income attributable to Landstar System, Inc. and subsidiary | 57,284 | |||
ASSETS | ||||
Trade accounts receivable, net | 619,754 | 631,164 | ||
Liabilities | ||||
Accounts payable | 271,956 | 285,132 | ||
Other current liabilities | 61,662 | |||
Equity | ||||
Retained earnings | 1,662,134 | $ 1,611,158 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Transportation Logistics | ||||
Revenues | ||||
Revenues | 1,033,445 | |||
Calculated under Revenue Guidance in Effect before Topic 606 | Insurance | ||||
Revenues | ||||
Revenues | 12,286 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Costs and expenses | ||||
Purchased transportation | 1,736 | |||
Commissions to agents | 151 | |||
Income taxes | 75 | |||
Net income attributable to Landstar System, Inc. and subsidiary | 233 | |||
ASSETS | ||||
Trade accounts receivable, net | 12,074 | 9,879 | ||
Liabilities | ||||
Accounts payable | 10,524 | 8,637 | ||
Other current liabilities | 544 | |||
Equity | ||||
Retained earnings | 1,006 | $ 773 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Transportation Logistics | Accounting Standards Update 2014-09 | ||||
Revenues | ||||
Revenues | $ 2,195 |