Short-term investments include $53,683,000 in current maturities of investments held by the Company’s insurance segment at September 26, 2026. The non-current portion of the bond portfolio of $94,938,000 is included in other assets. The short-term investments, together with $30,018,000 of non-current investments, provide collateral for the $75,331,000 of letters of credit issued to guarantee payment of insurance claims. As of September 26, 2026, Landstar also had $34,786,000 of additional letters of credit outstanding under the Company’s Credit Agreement.

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

Third party insurance arrangements providing excess coverage for commercial trucking liabilities in excess of the Company’s self-insured retention, or applicable deductible, generally require that the Company fund settlement payments to claimants and seek reimbursement from the applicable third party insurance providers. In connection with settlements of claims in excess of the Company’s self-insured retention or applicable deductible, the Company accrues for the anticipated settlement payments and records a corresponding receivable for the amounts it expects to collect from its third party insurance providers following payment of those settlement amounts. The liability and the related receivable are presented on a gross basis. As of September 26, 2026, the Company’s consolidated balance sheet included an aggregate liability of $21,000,000 for anticipated settlement payments in excess of the Company’s self-insured retention or deductible. The Company believes collection of these receivables from its third party insurance providers is probable following its payment of the settlement amounts included in the accrual. The Company evaluates the collectability of these receivables based on the creditworthiness and surplus of the applicable third party insurance provider, its prior experience with that provider, and the contractual terms of the applicable insurance arrangement.