Landstar System (LSTR) 10-Q 1 Nov 19 2019 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 28, 2019	Oct. 21, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2019
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, 2019
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		39,462,908
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

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Current Assets
Cash and cash equivalents	$ 284,434	$ 199,736
Short-term investments	31,596	40,058
Trade accounts receivable, less allowance of $7,296 and $6,413	598,415	691,604
Other receivables, including advances to independent contractors, less allowance of $8,593 and $6,216	25,384	23,744
Other current assets	30,921	16,287
Total current assets	970,750	971,429
Operating property, less accumulated depreciation and amortization of $274,000 and $250,153	270,430	284,032
Goodwill	38,232	38,232
Other assets	106,319	86,871
Total assets	1,385,731	1,380,564
Current Liabilities
Cash overdraft	44,625	55,339
Accounts payable	285,442	314,134
Current maturities of long-term debt	39,375	43,561
Insurance claims	51,320	40,176
Accrued compensation	10,477	29,489
Contractor escrow	25,521	25,202
Other current liabilities	26,996	27,917
Total current liabilities	483,756	535,818
Long-term debt, excluding current maturities	61,390	84,864
Insurance claims	33,024	30,429
Deferred income taxes and other noncurrent liabilities	51,586	40,320
Equity
Landstar System, Inc. and subsidiary shareholders' equity Common stock, $0.01 par value, authorized 160,000,000 shares, issued 68,072,834 and 67,870,926 shares	681	679
Additional paid-in capital	225,937	226,852
Retained earnings	1,998,362	1,841,279
Cost of 28,609,926 and 27,755,001 shares of common stock in treasury	(1,465,284)	(1,376,111)
Accumulated other comprehensive loss	(3,721)	(5,875)
Total Landstar System, Inc. and subsidiary shareholders' equity	755,975	686,824
Noncontrolling interest		2,309
Total equity	755,975	689,133
Total liabilities and equity	$ 1,385,731	$ 1,380,564

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Allowance on trade accounts receivable	$ 7,296	$ 6,413
Allowance on other receivables	8,593	6,216
Accumulated depreciation and amortization on operating property	$ 274,000	$ 250,153
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	160,000,000	160,000,000
Common stock, issued shares	68,072,834	67,870,926
Treasury stock, shares	28,609,926	27,755,001

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Revenue	$ 1,011,658	$ 1,202,081	$ 3,089,698	$ 3,432,793
Investment income	1,315	1,002	3,736	2,754
Costs and expenses:
Purchased transportation	774,520	931,473	2,365,646	2,658,710
Commissions to agents	84,568	99,304	257,862	275,828
Other operating costs, net of gains/losses on asset sales/dispositions	10,431	8,966	28,531	24,176
Insurance and claims	23,969	18,819	55,248	57,718
Selling, general and administrative	38,152	46,699	120,717	140,948
Depreciation and amortization	10,695	10,754	33,045	32,520
Total costs and expenses	942,335	1,116,015	2,861,049	3,189,900
Operating income	70,638	87,068	232,385	245,647
Interest and debt expense	764	816	2,278	2,455
Income before income taxes	69,874	86,252	230,107	243,192
Income taxes	16,619	19,304	52,452	56,279
Net income	53,255	66,948	177,655	186,913
Less: Net loss attributable to noncontrolling interest		(37)	(17)	(112)
Net income attributable to Landstar System, Inc. and subsidiary	$ 53,255	$ 66,985	$ 177,672	$ 187,025
Earnings per common share attributable to Landstar System, Inc. and subsidiary	$ 1.35	$ 1.63	$ 4.45	$ 4.50
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary	$ 1.35	$ 1.63	$ 4.45	$ 4.50
Average number of shares outstanding:
Earnings per common share	39,566,000	41,101,000	39,891,000	41,530,000
Diluted earnings per share	39,566,000	41,137,000	39,891,000	41,576,000
Dividends per common share	$ 0.185	$ 0.165	$ 0.515	$ 0.465

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Net income attributable to Landstar System, Inc. and subsidiary	$ 53,255	$ 66,985	$ 177,672	$ 187,025
Other comprehensive income (loss):
Unrealized holding gains (losses) on available-for-sale investments, net of tax expense (benefit) of $577, ($231), $83 and $2	307	7	2,112	(876)
Foreign currency translation gains (losses)	(1,083)	708	42	(531)
Other comprehensive income (loss)	(776)	715	2,154	(1,407)
Comprehensive income attributable to Landstar System, Inc. and subsidiary	$ 52,479	$ 67,700	$ 179,826	$ 185,618

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Unrealized holding gains (losses) on available-for-sale investments, tax expense (benefit)	$ 83	$ 2	$ 577	$ (231)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
OPERATING ACTIVITIES
Net income	$ 177,655	$ 186,913
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of operating property and intangible assets	33,045	32,520
Non-cash interest charges	190	190
Provisions for losses on trade and other accounts receivable	6,942	5,360
Gains on sales/disposals of operating property	(1,188)	(1,025)
Deferred income taxes, net	7,151	7,459
Stock-based compensation	4,470	13,003
Changes in operating assets and liabilities:
Decrease (increase) in trade and other accounts receivable	84,607	(60,785)
Increase in other assets	(21,129)	(9,779)
(Decrease) increase in accounts payable	(28,692)	22,121
(Decrease) increase in other liabilities	(16,076)	3,245
Increase in insurance claims	13,739	4,983
NET CASH PROVIDED BY OPERATING ACTIVITIES	260,714	204,205
INVESTING ACTIVITIES
Sales and maturities of investments	56,467	34,259
Purchases of investments	(58,829)	(36,296)
Purchases of operating property	(15,199)	(7,325)
Proceeds from sales of operating property	3,621	3,542
NET CASH USED BY INVESTING ACTIVITIES	(13,940)	(5,820)
FINANCING ACTIVITIES
Decrease in cash overdraft	(10,714)	(2,483)
Dividends paid	(20,589)	(82,261)
Proceeds from exercises of stock options	629	1,397
Taxes paid in lieu of shares issued related to stock-based compensation plans	(8,449)	(3,936)
Purchases of common stock	(88,578)	(105,488)
Principal payments on finance lease obligations	(34,141)	(32,663)
Purchase of noncontrolling interest	(600)
Payment of contingent consideration		(985)
NET CASH USED BY FINANCING ACTIVITIES	(162,442)	(226,419)
Effect of exchange rate changes on cash and cash equivalents	366	(408)
Increase (decrease) in cash and cash equivalents	84,698	(28,442)
Cash and cash equivalents at beginning of period	199,736	242,416
Cash and cash equivalents at end of period	$ 284,434	$ 213,974

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - 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
Adoption of accounting standards at Mar. 31, 2018	773			773
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
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)	186,913
Ending Balance (in shares) at Sep. 29, 2018		67,869,378			26,755,001
Ending Balance at Sep. 29, 2018	726,210	$ 679	221,563	1,779,680	$ (1,273,512)	(4,569)	2,369
Beginning Balance (in shares) at Mar. 31, 2018		67,836,164			25,768,669
Beginning Balance at Mar. 31, 2018	706,280	$ 678	211,933	1,663,140	$ (1,169,458)	(3,551)	3,538
Net income (loss)	62,492			62,523			(31)
Dividends	(6,188)			(6,188)
Purchases of common stock (in shares)					985,646
Purchases of common stock	(103,980)				$ (103,980)
Issuance of stock related to stock-based compensation plans (in shares)		11,528			495
Issuance of stock related to stock-based compensation plans	(48)		3		$ (51)
Stock-based compensation	4,392		4,392
Other comprehensive (loss) income	(2,015)					(1,733)	(282)
Ending Balance (in shares) at Jun. 30, 2018		67,847,692			26,754,810
Ending Balance at Jun. 30, 2018	660,933	$ 678	216,328	1,719,475	$ (1,273,489)	(5,284)	3,225
Net income (loss)	66,948			66,985			(37)
Dividends	(6,780)			(6,780)
Transaction with noncontrolling interests			1,078				(1,078)
Issuance of stock related to stock-based compensation plans (in shares)		21,686			191
Issuance of stock related to stock-based compensation plans	(766)	$ 1	(744)		$ (23)
Stock-based compensation	4,901		4,901
Other comprehensive (loss) income	974					715	259
Ending Balance (in shares) at Sep. 29, 2018		67,869,378			26,755,001
Ending Balance at Sep. 29, 2018	726,210	$ 679	221,563	1,779,680	$ (1,273,512)	(4,569)	2,369
Beginning Balance (in shares) at Dec. 29, 2018		67,870,962			27,755,001
Beginning Balance at Dec. 29, 2018	689,133	$ 679	226,852	1,841,279	$ (1,376,111)	(5,875)	2,309
Net income (loss)	63,300			63,317			(17)
Dividends	(6,629)			(6,629)
Purchases of common stock (in shares)					124,481
Purchases of common stock	(12,977)				$ (12,977)
Purchase of noncontrolling interests	(600)		1,842				(2,442)
Issuance of stock related to stock-based compensation plans (in shares)		176,079			5,199
Issuance of stock related to stock-based compensation plans	(7,604)	$ 1	(7,081)		$ (524)
Stock-based compensation	1,938		1,938
Other comprehensive (loss) income	1,699					1,549	150
Ending Balance (in shares) at Mar. 30, 2019		68,047,041			27,884,681
Ending Balance at Mar. 30, 2019	728,260	$ 680	223,551	1,897,967	$ (1,389,612)	(4,326)
Beginning Balance (in shares) at Dec. 29, 2018		67,870,962			27,755,001
Beginning Balance at Dec. 29, 2018	689,133	$ 679	226,852	1,841,279	$ (1,376,111)	(5,875)	$ 2,309
Net income (loss)	177,655
Ending Balance (in shares) at Sep. 28, 2019		68,072,834			28,609,926
Ending Balance at Sep. 28, 2019	755,975	$ 681	225,937	1,998,362	$ (1,465,284)	(3,721)
Beginning Balance (in shares) at Mar. 30, 2019		68,047,041			27,884,681
Beginning Balance at Mar. 30, 2019	728,260	$ 680	223,551	1,897,967	$ (1,389,612)	(4,326)
Net income (loss)	61,100			61,100
Dividends	(6,628)			(6,628)
Purchases of common stock (in shares)					549,929
Purchases of common stock	(56,752)				$ (56,752)
Issuance of stock related to stock-based compensation plans (in shares)		17,836			572
Issuance of stock related to stock-based compensation plans	(491)	$ 1	(431)		$ (61)
Stock-based compensation	1,430		1,430
Other comprehensive (loss) income	1,381					1,381
Ending Balance (in shares) at Jun. 29, 2019		68,064,877			28,435,182
Ending Balance at Jun. 29, 2019	728,300	$ 681	224,550	1,952,439	$ (1,446,425)	(2,945)
Net income (loss)	53,255			53,255
Dividends	(7,332)			(7,332)
Purchases of common stock (in shares)					174,658
Purchases of common stock	(18,849)				$ (18,849)
Issuance of stock related to stock-based compensation plans (in shares)		7,957			86
Issuance of stock related to stock-based compensation plans	275		285		$ (10)
Stock-based compensation	1,102		1,102
Other comprehensive (loss) income	(776)					(776)
Ending Balance (in shares) at Sep. 28, 2019		68,072,834			28,609,926
Ending Balance at Sep. 28, 2019	$ 755,975	$ 681	$ 225,937	$ 1,998,362	$ (1,465,284)	$ (3,721)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 28, 2019	Sep. 29, 2018
Dividends per common share	$ 0.185	$ 0.165	$ 0.165	$ 0.165	$ 0.15	$ 0.15	$ 0.515	$ 0.465

Business Description

Business Description	9 Months Ended
	Sep. 28, 2019
Business Description and Basis of Presentation [Text Block]	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.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 28, 2019
Significant Accounting Policies	(1) Significant Accounting Policies Revenue from Contracts with Customers – Disaggregation of Revenue During the thirty nine weeks ended September 28, 2019, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 45%, 47% and 3% respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 3% of the Company’s consolidated revenue in the thirty-nine-week period ended September 28, 2019. Included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers during the thirty-nine-week period ended September 28, 2019 was $1,799,421,000 hauled via van equipment, $980,615,000 hauled via unsided/platform equipment and $73,475,000 of less-than-truckload. During the thirty nine weeks ended September 29, 2018, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 44%, 49% and 3%, respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 2% of the Company’s consolidated revenue in the thirty-nine-week period ended September 29, 2018. Included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers during the thirty-nine-week period ended September 29, 2018 was $2,086,523,000 hauled via van equipment, $1,039,784,000 hauled via unsided/platform equipment and $76,448,000 of less-than-truckload. During the thirteen weeks ended September 28, 2019, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 46%, 46% and 3% respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 3% of the Company’s consolidated revenue in the thirteen-week period ended September 28, 2019. Included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers during the thirteen-week period ended September 28, 2019 was $575,042,000 hauled via van equipment, $331,787,000 hauled via unsided/platform equipment and $25,367,000 of less-than-truckload. During the thirteen weeks ended September 29, 2018, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 43%, 50% and 3%, respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 3% of the Company’s consolidated revenue in the thirteen-week period ended September 29, 2018. Included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers during the thirteen-week period ended September 29, 2018 was $717,047,000 hauled via van equipment, $375,739,000 hauled via unsided/platform equipment and $25,500,000 of less-than-truckload.

Share-Based Payment Arrangement

Share-Based Payment Arrangements	9 Months Ended
	Sep. 28, 2019
Share-Based Payment Arrangements	(2) Share-based Payment Arrangements As of September 28, 2019, 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): Thirty Nine Weeks Ended Thirteen Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Total cost of the Plans during the period $ 4,470 $ 13,003 $ 1,102 $ 4,901 Amount of related income tax benefit recognized during the period (4,125 ) (5,305 ) (391 ) (1,837 ) Net cost of the Plans during the period $ 345 $ 7,698 $ 711 $ 3,064 Included in income tax benefits recognized in the thirty-nine-week periods ended September 28, 2019 and September 29, 2018 were excess tax benefits from stock-based awards of $2,968,000 and $2,046,000, respectively. Also included in income tax benefits recognized in the thirty-nine-week periods ended September 28, 2019 and September 29, 2018 were income tax benefits of $62,000 and $80,000, 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. As of September 28, 2019, there were 66,454 shares of the Company’s common stock reserved for issuance under the 2013 DSCP and 3,972,592 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 Fair Value Outstanding at December 29, 2018 292,345 $ 66.31 Granted 68,543 $ 89.37 Shares earned in excess of target (1) 71,172 $ 54.78 Vested shares, including shares earned in excess of target (226,981 ) $ 53.27 Forfeited (6,481 ) $ 86.60 Outstanding at September 28, 2019 198,598 $ 84.37 (1) Represents shares earned in excess of target under the January 27, 2015 and January 29, 2016 RSU awards as actual results exceeded the target under both awards as a result of fiscal year 2018 results and under the May 1, 2015 RSU award as total shareholder return exceeded the target under the award. During the thirty-nine-week period ended September 28, 2019, the Company granted RSUs with a performance condition and RSUs with a market condition, as further described below. Outstanding RSUs at both December 29, 2018 and September 28, 2019 include RSUs with a performance condition and RSUs with a market condition, as further described below and in the Company’s 2018 Annual Report on Form 10-K. RSUs with a performance condition granted on February 1, 2019 may vest on January 31 of 2022, 2023 and 2024 based on growth in operating income and pre-tax During the thirty-nine-week period ended September 28, 2019 , the Company granted RSUs that vest based on a market condition. These RSUs may vest on June 30 of 2023, 2024 and 2025 based on the Company’s total shareholder return (“TSR”) compound annual growth rate over the vesting periods, adjusted to reflect dividends (if any) paid during such periods and capital adjustments as may be necessary. The maximum number of common shares available for issuance under the grant equals % of the number of RSUs granted. The fair value of this RSU award was determined at the time of grant based on the expected achievement of the market condition at the end of each vesting period. With respect to these RSU awards, the Company reports compensation expense ratably over the life of the award based on an estimated number of units that will vest over the life of the award, multiplied by the fair value of the RSU. Previously recognized compensation cost would be reversed only if the employee terminated employment prior to completing the requisite service period. The Company recognized approximately $2,477,000 and $11,303,000 of share-based compensation expense related to RSU awards in the thirty-nine-week periods ended September 28, 2019 and September 29, 2018, respectively. As of September 28, 2019, there was a maximum of $26.4 million of total unrecognized compensation cost related to RSU awards granted under the Plans with an expected average remaining life of approximately 3.3 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: Number of Weighted Average per Share Weighted Average Term (years) Aggregate Intrinsic Options outstanding at December 29, 2018 89,114 $ 50.44 Exercised (32,300 ) $ 49.30 Options outstanding at September 28, 2019 56,814 $ 51.08 2.5 $ 3,487 Options exercisable at September 28, 2019 56,814 $ 51.08 2.5 $ 3,487 The total intrinsic value of stock options exercised during the thirty-nine-week periods ended September 28, 2019 and September 29, 2018 was $1,877,000 and $6,584,000, respectively. As Non-vested The non-vested Number of and Deferred Weighted Average Grant Date Fair Value Non-vested 55,987 $ 93.66 Granted 30,338 $ 102.76 Vested (21,517 ) $ 92.70 Non-vested 64,808 $ 98.24 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, or 100% on the first or fifth 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. 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 non-vested non-vested

Income Taxes

Income Taxes	9 Months Ended
	Sep. 28, 2019
Income Taxes	(3) Income Taxes The provisions for income taxes for the 2019 and 2018 thirty-nine-week periods were based on estimated annual effective income tax rates of 24.2% and 24.5%, respectively, adjusted for discrete events, such as benefits resulting from stock-based awards. The effective income tax rate for the 2019 thirty-nine-week period was 22.8%, which was higher than the statutory federal income tax rate of 21% primarily attributable to state taxes and the meals and entertainment exclusion, partially offset by excess tax benefits realized on stock based awards. The effective income tax rate for the 2018 thirty-nine-week period was 23.1%, which was higher than the statutory federal income tax rate of 21% primarily attributable to state taxes, the elimination of the performance-based compensation exception under Section 162(m) by the Tax Cuts and Jobs Act (the “Tax Reform Act”) and the meals and entertainment exclusion, partially offset by excess tax benefits realized on stock based awards and favorable adjustments recognized during the 2018 period relating to federal domestic production activities deductions and research and development credits . The provisions for income taxes for the 2019 and 2018 thirty-nine-week periods were favorably impacted by $ 2,968,000 2,046,000 s

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 28, 2019
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): Thirty Nine Weeks Ended Thirteen Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Average number of common shares outstanding 39,891 41,530 39,566 41,101 Incremental shares from assumed exercises of stock options — 46 — 36 Average number of common shares and common share equivalents outstanding 39,891 41,576 39,566 41,137 For each of the thirty-nine-week periods ended September 28, 2019 and September 29, 2018, no

Additional Cash Flow Informatio

Additional Cash Flow Information	9 Months Ended
	Sep. 28, 2019
Additional Cash Flow Information	(5) Additional Cash Flow Information During the 2019 thirty-nine-week period, Landstar paid income taxes and interest of $54,877,000 and $3,302,000, respectively. During the 2018 thirty-nine-week period, Landstar paid income taxes and interest of $56,083,000 and $2,737,000, respectively. Landstar acquired operating property by entering into finance leases in the amounts of $6,481,000 and $21,397,000 in the 2019 and 2018 thirty-nine-week periods, respectively. Capital expenditures 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	9 Months Ended
	Sep. 28, 2019
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, 2019 and September 29, 2018 (in thousands): Thirty Nine Weeks Ended September 28, 2019 September 29, 2018 Transportation Logistics Insurance Total Transportation Logistics Insurance Total External revenue $ 3,047,329 $ 42,369 $ 3,089,698 $ 3,394,298 $ 38,495 $ 3,432,793 Internal revenue 36,978 36,978 30,413 30,413 Investment income 3,736 3,736 2,754 2,754 Operating income 200,767 31,618 232,385 227,176 18,471 245,647 Expenditures on long-lived assets 15,199 15,199 7,325 7,325 Goodwill 38,232 38,232 38,560 38,560 Thirteen Weeks Ended September 28, 2019 September 29, 2018 Transportation Logistics Insurance Total Transportation Logistics Insurance Total External revenue $ 997,552 $ 14,106 $ 1,011,658 $ 1,188,737 $ 13,344 $ 1,202,081 Internal revenue 9,611 9,611 7,496 7,496 Investment income 1,315 1,315 1,002 1,002 Operating income 64,848 5,790 70,638 80,878 6,190 87,068 Expenditures on long-lived assets 5,975 5,975 3,204 3,204 In the thirty-nine-week periods ended September 28, 2019 and September 29, 2018, no

Other Comprehensive Income

Other Comprehensive Income	9 Months Ended
	Sep. 28, 2019
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 thirty-nine-week period ended September 28, 2019 (in thousands): Unrealized Available-for-Sale Foreign Currency Total Balance as of December 29, 2018 $ (930 ) $ (4,945 ) $ (5,875 ) Other comprehensive income 2,112 42 2,154 Balance as of September 28, 2019 $ 1,182 $ (4,903 ) $ (3,721 ) 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, 2019.

Investments

Investments	9 Months Ended
	Sep. 28, 2019
Investments	(8) Investments Investments include primarily investment-grade corporate bonds and U.S. Treasury obligations having maturities of up to five years available-for-sale 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 period, considered to be other-than-temporary, are to be included as a charge in the statement of income, while unrealized losses considered to be temporary are to be included as a component of 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, The amortized cost and fair values of available-for-sale Amortized Gross Gross Fair Value September 28, 2019 Money market investments $ 14,923 $ — $ — $ 14,923 Asset-backed securities 590 2 — 592 Corporate bonds and direct obligations of government agencies 97,704 1,513 31 99,186 U.S. Treasury obligations 2,334 21 — 2,355 Total $ 115,551 $ 1,536 $ 31 $ 117,056 December 29, 2018 Money market investments $ 11,714 $ — $ — $ 11,714 Asset-backed securities 624 — 4 620 Corporate bonds and direct obligations of government agencies 101,021 33 1,213 99,841 Total $ 113,359 $ 33 $ 1,217 $ 112,175 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 September 28, 2019 Corporate bonds and direct obligations of government agencies $ 3,817 $ 15 $ 6,953 $ 16 $ 10,770 $ 31 December 29, 2018 Asset-backed securities $ — $ — $ 620 $ 4 $ 620 $ 4 Corporate bonds and direct obligations of government agencies 45,960 354 42,803 859 88,763 1,213 Total $ 45,960 $ 354 $ 43,423 $ 863 $ 89,383 $ 1,217 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 September 28, 2019.

Leases

Leases	9 Months Ended
	Sep. 28, 2019
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 build-out “month-to-month” 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 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, we apply 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, 2019 were (in thousands): Finance leases: Amortization of right-of-use $ 19,196 Interest on lease liability 2,767 Total finance lease cost 21,963 Operating leases: Lease cost 3,556 Variable lease cost — Sublease income (3,931 ) Total operating lease (income)/cost (375 ) Total lease cost $ 21,588 A summary of the lease classification on our consolidated balance sheet as of September 28, 2019 is as follows (in thousands): Assets: Operating lease right-of-use Other assets $ 2,783 Finance lease assets Operating property, less accumulated depreciation and amortization 142,376 Total lease assets $ 145,159 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, 2019 (in thousands): Finance Leases Operating Leases 2019 Remainder $ 10,729 $ 276 2020 40,863 680 2021 26,453 615 2022 17,290 621 2023 10,262 550 Thereafter 925 299 Total future minimum lease payments 106,522 3,041 Less amount representing interest (2.1% to 4.4%) 5,757 258 Present value of minimum lease payments $ 100,765 $ 2,783 Current maturities of long-term debt 39,375 Long-term debt, excluding current maturities 61,390 Other current liabilities 680 Deferred income taxes and other noncurrent liabilities 2,103 The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of September 28, 2019 were: Finance Leases Operating Leases Weighted average remaining lease term (years) 3.1 4.3 Weighted average discount rate 3.3 % 4.0 %

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 28, 2019
Commitments and Contingencies	(10) Commitments and Contingencies Short-term investments include $31,596,000 in current maturities of investments held by the Company’s insurance segment at September 28, 2019. The non-current non-current On January 25, 2019, a purported class action was filed in the Superior Court of the State of California for the County of San Bernardino against Landstar System, Inc. and Landstar Ranger, Inc. (together, the “Defendants”). The complaint purports to bring this action on behalf of Hany Tanious, as an individual, and “all owner operators who performed work for the Defendants, and who were classified as independent contractors, during the four years preceding the filing of this action through the present.” The complaint asserts claims based on the alleged misclassification of Mr. Tanious as an independent contractor and alleges violations under California law relating to overtime, minimum wage, meal and rest breaks, failure to reimburse certain expenses, wage statements, waiting time and unfair competition. Mr. Tanious was a truck owner-operator and formerly an independent contractor who was a party to an independent contractor operating agreement with Landstar Ranger, Inc. On June 11, 2019, the Defendants filed a Notice of Removal that resulted in the removal of the case from state court to federal court, where it was assigned to Judge Dale S. Fischer of the United State District Court for the Central District of California. On August 22, 2019, the Court issued an order (i) granting a motion filed by counsel for Mr. Tanious to withdraw from the case, (ii) striking all class allegations from the complaint and (iii) stating that this matter would proceed as an individual action. Mr. Tanious subsequently retained new counsel . 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	9 Months Ended
	Sep. 28, 2019
Change in Accounting Estimate for Self-Insured Claims	(11) 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 in the cost of insurance claims resulting from unfavorable 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 set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 28, 2019 and September 29, 2018 (in thousands, except per share amounts): Thirty Nine Weeks Ended Thirteen Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Operating income $ 9,497 $ 11,596 $ 6,597 $ 3,352 Net income attributable to Landstar System, Inc. and subsidiary 7,199 8,755 5,001 2,531 Earnings per share attributable to Landstar System, Inc. and subsidiary $ 0.18 $ 0.21 $ 0.13 $ 0.06 Diluted earnings per share attributable to Landstar System, Inc. and subsidiary $ 0.18 $ 0.21 $ 0.13 $ 0.06 The unfavorable development of prior years’ claims in the thirty-nine-week period ended September 28, 2019 was attributable to several claims as well as actuarially determined adjustments to prior year commercial trucking loss estimates. The unfavorable development of prior years’ claims in the thirty-nine-week period ended September 29, 2018 was primarily attributable to five claims.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 28, 2019
Recent Accounting Pronouncements	(12) Recent Accounting Pronouncements Adoption of New Accounting Standards In February 2016, the FASB issued Accounting Standards Update 2016-02 Leases 2016-02”), 2018-11, Leases Targeted Improvements 2016-02 right-of-use right-of-use 2016-02. 2016-02 Accounting Standards Issued But Not Yet Adopted 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

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 28, 2019
Revenue Recognition	Revenue from Contracts with Customers – Disaggregation of Revenue During the thirty nine weeks ended September 28, 2019, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 45%, 47% and 3% respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 3% of the Company’s consolidated revenue in the thirty-nine-week period ended September 28, 2019. Included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers during the thirty-nine-week period ended September 28, 2019 was $1,799,421,000 hauled via van equipment, $980,615,000 hauled via unsided/platform equipment and $73,475,000 of less-than-truckload. During the thirty nine weeks ended September 29, 2018, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 44%, 49% and 3%, respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 2% of the Company’s consolidated revenue in the thirty-nine-week period ended September 29, 2018. Included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers during the thirty-nine-week period ended September 29, 2018 was $2,086,523,000 hauled via van equipment, $1,039,784,000 hauled via unsided/platform equipment and $76,448,000 of less-than-truckload. During the thirteen weeks ended September 28, 2019, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 46%, 46% and 3% respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 3% of the Company’s consolidated revenue in the thirteen-week period ended September 28, 2019. Included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers during the thirteen-week period ended September 28, 2019 was $575,042,000 hauled via van equipment, $331,787,000 hauled via unsided/platform equipment and $25,367,000 of less-than-truckload. During the thirteen weeks ended September 29, 2018, revenue generated by BCO Independent Contractors, Truck Brokerage Carriers and railroads represented approximately 43%, 50% and 3%, respectively, of the Company’s consolidated revenue. Collectively, revenue generated by air and ocean cargo carriers represented approximately 3% of the Company’s consolidated revenue in the thirteen-week period ended September 29, 2018. Included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers during the thirteen-week period ended September 29, 2018 was $717,047,000 hauled via van equipment, $375,739,000 hauled via unsided/platform equipment and $25,500,000 of less-than-truckload.

Share-Based Payment Arrangeme_2

Share-Based Payment Arrangements (Tables)	9 Months Ended
	Sep. 28, 2019
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, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Total cost of the Plans during the period $ 4,470 $ 13,003 $ 1,102 $ 4,901 Amount of related income tax benefit recognized during the period (4,125 ) (5,305 ) (391 ) (1,837 ) Net cost of the Plans during the period $ 345 $ 7,698 $ 711 $ 3,064
Summary of Information Regarding Stock Options	The following table summarizes information regarding the Company’s outstanding stock options under the Plans: Number of Weighted Average per Share Weighted Average Term (years) Aggregate Intrinsic Options outstanding at December 29, 2018 89,114 $ 50.44 Exercised (32,300 ) $ 49.30 Options outstanding at September 28, 2019 56,814 $ 51.08 2.5 $ 3,487 Options exercisable at September 28, 2019 56,814 $ 51.08 2.5 $ 3,487
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 Fair Value Outstanding at December 29, 2018 292,345 $ 66.31 Granted 68,543 $ 89.37 Shares earned in excess of target (1) 71,172 $ 54.78 Vested shares, including shares earned in excess of target (226,981 ) $ 53.27 Forfeited (6,481 ) $ 86.60 Outstanding at September 28, 2019 198,598 $ 84.37 (1) Represents shares earned in excess of target under the January 27, 2015 and January 29, 2016 RSU awards as actual results exceeded the target under both awards as a result of fiscal year 2018 results and under the May 1, 2015 RSU award as total shareholder return exceeded the target under the award.
Non Vested Restricted Stock and Deferred Stock Units
Schedule of Information on Non-Vested Restricted Stock and Deferred Stock Units	The non-vested Number of and Deferred Weighted Average Grant Date Fair Value Non-vested 55,987 $ 93.66 Granted 30,338 $ 102.76 Vested (21,517 ) $ 92.70 Non-vested 64,808 $ 98.24

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 28, 2019
Earnings Per Share [Abstract]
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): Thirty Nine Weeks Ended Thirteen Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Average number of common shares outstanding 39,891 41,530 39,566 41,101 Incremental shares from assumed exercises of stock options — 46 — 36 Average number of common shares and common share equivalents outstanding 39,891 41,576 39,566 41,137

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 28, 2019
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, 2019 and September 29, 2018 (in thousands): Thirty Nine Weeks Ended September 28, 2019 September 29, 2018 Transportation Logistics Insurance Total Transportation Logistics Insurance Total External revenue $ 3,047,329 $ 42,369 $ 3,089,698 $ 3,394,298 $ 38,495 $ 3,432,793 Internal revenue 36,978 36,978 30,413 30,413 Investment income 3,736 3,736 2,754 2,754 Operating income 200,767 31,618 232,385 227,176 18,471 245,647 Expenditures on long-lived assets 15,199 15,199 7,325 7,325 Goodwill 38,232 38,232 38,560 38,560 Thirteen Weeks Ended September 28, 2019 September 29, 2018 Transportation Logistics Insurance Total Transportation Logistics Insurance Total External revenue $ 997,552 $ 14,106 $ 1,011,658 $ 1,188,737 $ 13,344 $ 1,202,081 Internal revenue 9,611 9,611 7,496 7,496 Investment income 1,315 1,315 1,002 1,002 Operating income 64,848 5,790 70,638 80,878 6,190 87,068 Expenditures on long-lived assets 5,975 5,975 3,204 3,204

Other Comprehensive Income (Tab

Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 28, 2019
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 thirty-nine-week period ended September 28, 2019 (in thousands): Unrealized Available-for-Sale Foreign Currency Total Balance as of December 29, 2018 $ (930 ) $ (4,945 ) $ (5,875 ) Other comprehensive income 2,112 42 2,154 Balance as of September 28, 2019 $ 1,182 $ (4,903 ) $ (3,721 )

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 28, 2019
Amortized Cost and Fair Value of Available-for-Sale Investments	The amortized cost and fair values of available-for-sale Amortized Gross Gross Fair Value September 28, 2019 Money market investments $ 14,923 $ — $ — $ 14,923 Asset-backed securities 590 2 — 592 Corporate bonds and direct obligations of government agencies 97,704 1,513 31 99,186 U.S. Treasury obligations 2,334 21 — 2,355 Total $ 115,551 $ 1,536 $ 31 $ 117,056 December 29, 2018 Money market investments $ 11,714 $ — $ — $ 11,714 Asset-backed securities 624 — 4 620 Corporate bonds and direct obligations of government agencies 101,021 33 1,213 99,841 Total $ 113,359 $ 33 $ 1,217 $ 112,175
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 September 28, 2019 Corporate bonds and direct obligations of government agencies $ 3,817 $ 15 $ 6,953 $ 16 $ 10,770 $ 31 December 29, 2018 Asset-backed securities $ — $ — $ 620 $ 4 $ 620 $ 4 Corporate bonds and direct obligations of government agencies 45,960 354 42,803 859 88,763 1,213 Total $ 45,960 $ 354 $ 43,423 $ 863 $ 89,383 $ 1,217

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 28, 2019
Lease, Cost [Table Text Block]	The components of lease cost for finance leases and operating leases for the thirty nine weeks ended September 28, 2019 were (in thousands): Finance leases: Amortization of right-of-use $ 19,196 Interest on lease liability 2,767 Total finance lease cost 21,963 Operating leases: Lease cost 3,556 Variable lease cost — Sublease income (3,931 ) Total operating lease (income)/cost (375 ) Total lease cost $ 21,588
Schedule Of Supplemental Balance Sheet In formation Related To Leases [Table Text Block]	A summary of the lease classification on our consolidated balance sheet as of September 28, 2019 is as follows (in thousands): Assets: Operating lease right-of-use Other assets $ 2,783 Finance lease assets Operating property, less accumulated depreciation and amortization 142,376 Total lease assets $ 145,159
Finance And Operating Lease Maturity [Table Text Block]	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, 2019 (in thousands): Finance Leases Operating Leases 2019 Remainder $ 10,729 $ 276 2020 40,863 680 2021 26,453 615 2022 17,290 621 2023 10,262 550 Thereafter 925 299 Total future minimum lease payments 106,522 3,041 Less amount representing interest (2.1% to 4.4%) 5,757 258 Present value of minimum lease payments $ 100,765 $ 2,783 Current maturities of long-term debt 39,375 Long-term debt, excluding current maturities 61,390 Other current liabilities 680 Deferred income taxes and other noncurrent liabilities 2,103
Schedule Discount Rate And Lease Term Used In Calculating Lease Liabilities And Assets [Table Text Block]	The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of September 28, 2019 were: Finance Leases Operating Leases Weighted average remaining lease term (years) 3.1 4.3 Weighted average discount rate 3.3 % 4.0 %

Change in Accounting Estimate_2

Change in Accounting Estimate for Self-Insured Claims (Tables)	9 Months Ended
	Sep. 28, 2019
Effect of Increase in Cost of Insurance and Claims	The following table summarizes the 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 attributable to Landstar System, Inc. and subsidiary and earnings per share attributable to Landstar System, Inc. and subsidiary set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 28, 2019 and September 29, 2018 (in thousands, except per share amounts): Thirty Nine Weeks Ended Thirteen Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Operating income $ 9,497 $ 11,596 $ 6,597 $ 3,352 Net income attributable to Landstar System, Inc. and subsidiary 7,199 8,755 5,001 2,531 Earnings per share attributable to Landstar System, Inc. and subsidiary $ 0.18 $ 0.21 $ 0.13 $ 0.06 Diluted earnings per share attributable to Landstar System, Inc. and subsidiary $ 0.18 $ 0.21 $ 0.13 $ 0.06

Significant Accounting Polici_3

Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 1,011,658,000	$ 1,202,081,000	$ 3,089,698,000	$ 3,432,793,000
BCO Independent Contractor
Disaggregation of Revenue [Line Items]
Consolidated revenue, percentage	46.00%	43.00%	45.00%	44.00%
Truck Brokerage Carriers
Disaggregation of Revenue [Line Items]
Consolidated revenue, percentage	46.00%	50.00%	47.00%	49.00%
Railroads
Disaggregation of Revenue [Line Items]
Consolidated revenue, percentage	3.00%	3.00%	3.00%	3.00%
Air and Ocean Cargo Carriers
Disaggregation of Revenue [Line Items]
Consolidated revenue, percentage	3.00%	3.00%	3.00%	2.00%
BCO Independent Contractor and Truck Brokerage Carriers | Van Equipment
Disaggregation of Revenue [Line Items]
Revenue	$ 575,042,000	$ 717,047,000	$ 1,799,421,000	$ 2,086,523,000
BCO Independent Contractor and Truck Brokerage Carriers | Unsided/Platform Equipment
Disaggregation of Revenue [Line Items]
Revenue	331,787,000	375,739,000	980,615,000	1,039,784,000
BCO Independent Contractor and Truck Brokerage Carriers | Less than Truckload
Disaggregation of Revenue [Line Items]
Revenue	$ 25,367,000	$ 25,500,000	$ 73,475,000	$ 76,448,000

Share-Based Payment Arrangeme_3

Share-Based Payment Arrangements - Additional Information (Detail)	9 Months Ended
	Sep. 28, 2019USD ($)EquityPlanshares	Sep. 29, 2018USD ($)
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 | $	$ 62,000	$ 80,000
Excess tax benefit from stock-based awards | $	$ 2,968,000	2,046,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum percentage of target available for common share issuance	150.00%
Stock awards granted, shares	68,543
Recognized share-based compensation expense | $	$ 2,477,000	11,303,000
Unrecognized compensation cost, other than options | $	$ 26,400,000
Unrecognized compensation cost expected to be recognized over period, years	3 years 3 months 18 days
Non Vested Restricted Stock and Deferred Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted, shares	30,338
Unrecognized compensation cost, other than options | $	$ 4,310,000
Unrecognized compensation cost expected to be recognized over period, years	2 years 2 months 12 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 or fifth 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
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options exercised during periods | $	$ 1,877,000	$ 6,584,000
2011 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance	6,000,000
2013 Directors Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance	115,000
Common stock reserved for issuance	66,454
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	3,972,592
Market Condition | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards granted, shares	9,725

Amounts Recognized in Financial

Amounts Recognized in Financial Statements with Respect to Plans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total cost of the Plans during the period	$ 1,102	$ 4,901	$ 4,470	$ 13,003
Amount of related income tax benefit recognized during the period	(391)	(1,837)	(4,125)	(5,305)
Net cost of the Plans during the period	$ 711	$ 3,064	$ 345	$ 7,698

Schedule of Information on Rest

Schedule of Information on Restricted Stock Units (Detail) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 28, 2019$ / sharesshares
Number of Shares
Beginning Balance | shares	292,345
Granted | shares	68,543
Shares earned in excess of target | shares	71,172
Vested shares, including shares earned in excess of target | shares	(226,981)
Forfeited | shares	(6,481)
Ending Balance | shares	198,598
Weighted Average Grant Date Fair Value
Beginning Balance | $ / shares	$ 66.31
Granted | $ / shares	89.37
Shares earned in excess of target | $ / shares	54.78
Vested shares, including shares earned in excess of target | $ / shares	53.27
Forfeited | $ / shares	86.60
Ending Balance | $ / shares	$ 84.37

Summary of Information Regardin

Summary of Information Regarding Stock Options (Detail) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 28, 2019USD ($)$ / sharesshares
Number of Options
Beginning Balance, number of options | shares	89,114
Exercised, number of options | shares	(32,300)
Ending Balance, number of options | shares	56,814
Weighted Average Exercise Price per Share
Beginning Balance, Weighted Average Exercise Price per Share | $ / shares	$ 50.44
Exercised, Weighted Average Exercise Price per Share | $ / shares	49.30
Ending Balance, Weighted Average Exercise Price per Share | $ / shares	$ 51.08
Options Exercisable, Number of Options
Options exercisable at the ending, Number of Options | shares	56,814
Options Exercisable, Weighted Average Exercise Price per Share
Options exercisable at the ending, Weighted Average Exercise Price per Share | $ / shares	$ 51.08
Weighted Average Remaining Contractual Term (years)
Options outstanding at September 28, 2019	2 years 6 months
Options exercisable at September 28, 2019	2 years 6 months
Aggregate Intrinsic Value
Options outstanding at September 28, 2019 | $	$ 3,487
Options exercisable at September 28, 2019 | $	$ 3,487

Schedule of Information on Non

Schedule of Information on Non - Vested Restricted Stock Units (Detail) - Non Vested Restricted Stock and Deferred Stock Units	9 Months Ended
	Sep. 28, 2019$ / sharesshares
Number of Shares and Deferred Stock Units
Beginning Balance | shares	55,987
Granted | shares	30,338
Vested | shares	(21,517)
Ending Balance | shares	64,808
Weighted Average Grant Date Fair Value
Beginning Balance | $ / shares	$ 93.66
Granted | $ / shares	102.76
Vested | $ / shares	92.70
Ending Balance | $ / shares	$ 98.24

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Income Taxes [Line Items]
Corporate income tax rate	21.00%	21.00%
Excess tax benefit from stock-based awards	$ 2,968,000	$ 2,046,000
Estimated annual effective income tax rate	24.20%	24.50%
Effective income tax rate	22.80%	23.10%

Reconciliation of Average Numbe

Reconciliation of Average Number of Common Shares and Common Share Equivalents Outstanding (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Average number of common shares outstanding	39,566,000	41,101,000	39,891,000	41,530,000
Incremental shares from assumed exercises of stock options		36,000		46,000
Average number of common shares and common share equivalents outstanding	39,566,000	41,137,000	39,891,000	41,576,000

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
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 Informat_2

Additional Cash Flow Information - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Supplemental Cash Flow Information [Abstract]
Income taxes paid	$ 54,877,000	$ 56,083,000
Purchase of operating property by finance lease	6,481,000	21,397,000
Interest paid	$ 3,302,000	$ 2,737,000

Segment Information - Additiona

Segment Information - Additional Information (Detail) - Customer	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
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 Reportabl

Information Regarding Reportable Business Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018	Dec. 29, 2018
Segment Reporting Information [Line Items]
External revenue	$ 1,011,658	$ 1,202,081	$ 3,089,698	$ 3,432,793
Internal revenue	9,611	7,496	36,978	30,413
Investment income	1,315	1,002	3,736	2,754
Operating income	70,638	87,068	232,385	245,647
Expenditures on long-lived assets	5,975	3,204	15,199	7,325
Goodwill	38,232	38,560	38,232	38,560	$ 38,232
Transportation Logistics
Segment Reporting Information [Line Items]
External revenue	997,552	1,188,737	3,047,329	3,394,298
Operating income	64,848	80,878	200,767	227,176
Expenditures on long-lived assets	5,975	3,204	15,199	7,325
Goodwill	38,232	38,560	38,232	38,560
Insurance
Segment Reporting Information [Line Items]
External revenue	14,106	13,344	42,369	38,495
Internal revenue	9,611	7,496	36,978	30,413
Investment income	1,315	1,002	3,736	2,754
Operating income	$ 5,790	$ 6,190	$ 31,618	$ 18,471

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		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ 686,824
Other comprehensive income (loss)	$ (776)	$ 715	2,154	$ (1,407)
Ending Balance	755,975		755,975
Unrealized Holding (Losses) Gains on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(930)
Other comprehensive income (loss)			2,112
Ending Balance	1,182		1,182
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(4,945)
Other comprehensive income (loss)			42
Ending Balance	(4,903)		(4,903)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(5,875)
Ending Balance	$ (3,721)		$ (3,721)

Investments - Additional Inform

Investments - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 28, 2019	Dec. 29, 2018
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	$ 1,505,000	$ (1,184,000)

Amortized Cost and Fair Value o

Amortized Cost and Fair Value of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 115,551	$ 113,359
Gross Unrealized Gains	1,536	33
Gross Unrealized Losses	31	1,217
Fair Value	117,056	112,175
Money market investments
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	14,923	11,714
Fair Value	14,923	11,714
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	590	624
Gross Unrealized Gains	2
Gross Unrealized Losses		4
Fair Value	592	620
Corporate bonds and direct obligations of government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	97,704	101,021
Gross Unrealized Gains	1,513	33
Gross Unrealized Losses	31	1,213
Fair Value	99,186	$ 99,841
U.S. Treasury obligations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,334
Gross Unrealized Gains	21
Fair Value	$ 2,355

Schedule of Unrealized Loss on

Schedule of Unrealized Loss on Available-for-Sale Investments (Detail) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Debt Securities, Available-for-sale [Line Items]
Available-for-sale investments with unrealized losses, Less than 12 months, Fair Value		$ 45,960
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss		354
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value		43,423
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss		863
Available-for-sale investments with unrealized losses, Fair Value, Total		89,383
Available-for-sale investments with unrealized losses, Unrealized Loss, Total		1,217
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value		620
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss		4
Available-for-sale investments with unrealized losses, Fair Value, Total		620
Available-for-sale investments with unrealized losses, Unrealized Loss, Total		4
Corporate bonds 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	$ 3,817	45,960
Available-for-sale investments with unrealized losses, Less than 12 months, Unrealized Loss	15	354
Available-for-sale investments with unrealized losses, 12 months or longer, Fair Value	6,953	42,803
Available-for-sale investments with unrealized losses, 12 months or longer, Unrealized Loss	16	859
Available-for-sale investments with unrealized losses, Fair Value, Total	10,770	88,763
Available-for-sale investments with unrealized losses, Unrealized Loss, Total	$ 31	$ 1,213

Leases - Additional Information

Leases - Additional Information (Detail)	Sep. 28, 2019USD ($)
Leases Disclosure [Line Items]
Finance Lease Option to Purchase Option Value	$ 1
Lessee, Finance Lease, Term of Contract	5 years

Leases - Components of Lease Co

Leases - Components of Lease Cost for Finance Leases and Operating Leases (Detail) $ in Thousands	9 Months Ended
	Sep. 28, 2019USD ($)
Finance leases:
Amortization of right-of-use assets	$ 19,196
Interest on lease liability	2,767
Total finance lease cost	21,963
Operating leases:
Lease cost	3,556
Variable lease cost
Sublease income	(3,931)
Total operating lease (income)/cost	(375)
Total lease cost	$ 21,588

Leases - Classification on our

Leases - Classification on our Consolidated Balance Sheet (Detail) $ in Thousands	Sep. 28, 2019USD ($)
Total lease assets	$ 145,159
Other Assets [Member]
Operating lease right-of-use assets	2,783
Property Plant and Equipment Net [Member]
Finance lease assets	$ 142,376

Leases - Undiscounted Cash Flow

Leases - Undiscounted Cash Flows for the Finance and Operating Leases (Detail) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Operating Leased Assets [Line Items]
2019 Remainder	$ 10,729
2020	40,863
2021	26,453
2022	17,290
2023	10,262
Thereafter	925
Total future minimum lease payments	106,522
Less amount representing interest (2.1% to 4.4%)	5,757
Present value of minimum lease payments	100,765
Current maturities of long-term debt	39,375	$ 43,561
Long-term debt, excluding current maturities	61,390	$ 84,864
2019 Remainder	276
2020	680
2021	615
2022	621
2023	550
Thereafter	299
Total future minimum lease payments	3,041
Less amount representing interest (2.1% to 4.4%)	258
Present value of minimum lease payments	2,783
Other current liabilities [Member]
Operating Leased Assets [Line Items]
Operating lease, liability, current	680
Deferred income taxes and other noncurrent liabilities [Member]
Operating Leased Assets [Line Items]
Operating lease, liability, non-current	$ 2,103

Leases - Undiscounted Cash Fl_2

Leases - Undiscounted Cash Flows for the Finance and Operating Leases (Parenthetical) (Details)	Sep. 28, 2019
Maximum [Member]
Finance lease Interest rate percentage	4.40%
Minimum [Member]
Finance lease Interest rate percentage	2.10%

Leases - Weighted Average Remai

Leases - Weighted Average Remaining Lease Term and the Weighted Average Discount Rate for Finance and Operating leases (Detail)	Sep. 28, 2019
Weighted average remaining lease term (years)	3 years 1 month 6 days
Weighted average discount rate	3.30%
Weighted average remaining lease term (years)	4 years 3 months 18 days
Weighted average discount rate	4.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Sep. 28, 2019USD ($)
Current Investments | Collateral Pledged [Member]
Commitments and Contingencies Disclosure [Line Items]
Investments providing collateral for letters of credit to guarantee insurance claims	$ 31,596,000
Non-Current Investments
Commitments and Contingencies Disclosure [Line Items]
Total non-current investments	85,460,000
Non-Current Investments | Collateral Pledged [Member]
Commitments and Contingencies Disclosure [Line Items]
Investments providing collateral for letters of credit to guarantee insurance claims	36,741,000
Revolving Credit Facility
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding	34,368,000
Guarantee Payment of Insurance Claims
Commitments and Contingencies Disclosure [Line Items]
Letters of credit outstanding	$ 61,503,000

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		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Change in Accounting Estimate [Line Items]
Operating income	$ 70,638	$ 87,068	$ 232,385	$ 245,647
Net income attributable to Landstar System, Inc. and subsidiary	$ 53,255	$ 66,985	$ 177,672	$ 187,025
Earnings per share attributable to Landstar System, Inc. and subsidiary	$ 1.35	$ 1.63	$ 4.45	$ 4.50
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary	$ 1.35	$ 1.63	$ 4.45	$ 4.50
Development of Prior Year Self Insured Claims Estimates
Change in Accounting Estimate [Line Items]
Operating income	$ 6,597	$ 3,352	$ 9,497	$ 11,596
Net income attributable to Landstar System, Inc. and subsidiary	$ 5,001	$ 2,531	$ 7,199	$ 8,755
Earnings per share attributable to Landstar System, Inc. and subsidiary	$ 0.13	$ 0.06	$ 0.18	$ 0.21
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary	$ 0.13	$ 0.06	$ 0.18	$ 0.21

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements - Additional Information (Detail)	Sep. 28, 2019USD ($)
Accounting Standards Update 2016-02 [Member]
Assets and Liabilities, Lessee [Abstract]
Right-of-use assets	$ 2,783,000