Change in Accounting Estimate for Self-Insured Claims

9 Months Ended

Sep. 26, 2026

Accounting Changes and Error Corrections [Abstract]

Change in Accounting Estimate for Self-Insured Claims

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

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

The following table summarizes the adverse effect of the increase in the cost of insurance claims resulting from unfavorable development of prior year self-insured claims estimates on operating income, net income and basic and diluted earnings per share set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 26, 2026 and September 27, 2025 (in thousands, except per share amounts):


	Thirty-Nine Weeks Ended				Thirteen Weeks Ended
	September 26, 2026		September 27, 2025		September 26, 2026		September 27, 2025
Operating income	$	37,317	$	22,860	$	21,924	$	9,219
Net income	$	27,838	$	17,236	$	16,355	$	6,951
Basic and diluted earnings per share	$	0.82	$	0.49	$	0.48	$	0.20

The unfavorable development of prior years’ claims during the thirty-nine-week period ended September 26, 2026 was primarily attributable to an increase in the Company’s actuarially determined claim reserves, several specific commercial trucking claims involving BCO Independent Contractors leased on with motor carrier subsidiaries of the Company, several specific truck brokerage claims and cargo loss experience as a result of fraud and theft in the supply chain.