7 unchanged sentences
pandemic has caused significant disruptions in the global economy, which significantly intensified in the United States in late March and continued into the summer months.
−Removed: The situation with respect to the COVID-19 pandemic continues to evolve rapidly and its effects, both short and long-term, remain unknown.
−Removed: Economic disruptions and other effects on the global or domestic economies caused by the COVID-19 pandemic
−Removed: could have a material adverse impact on the demand for our services and our ability to obtain financing on favorable terms or at all.
+Added: The situation with respect to the COVID-19
+Added: pandemic continues to evolve and its effects, both short and long-term, remain unknown.
+Added: Economic disruptions and other effects on the global or domestic economies caused by the COVID-19
+Added: pandemic could have a material adverse impact on the demand for our services and our ability to obtain financing on favorable terms or at all.
In connection with the impact of the COVID-19
−Removed: pandemic, the Company experienced a significant decline in truckload volumes during its fiscal quarter ended June 27, 2020.
−Removed: The number of loads hauled via truck was below the prior year comparable period by 21 %
−Removed: for April, May and June, respectively.
+Added: pandemic, the Company experienced a significant decline in truckload volumes during the second quarter of 2020 compared to the corresponding period of 2019 followed by a similarly significant yet more gradual sequential increase in demand during the third quarter of 2020.
+Added: This significant, rapid decrease in demand followed by the similarly significant yet more gradual increase was unprecedented in the history of the Company.
The extent to which the COVID-19
−Removed: pandemic impacts the Company’s results in future quarters will depend on future developments that are highly uncertain and cannot be predicted, including the duration of the pandemic, new information that may emerge concerning the severity of the pandemic, the actions taken to contain its impact and the role of federal, state and local governments that will be needed to help the economy transition back to more normal operating conditions.
+Added: pandemic impacts the Company’s results in future quarters will depend on future developments that are highly uncertain and cannot be predicted, including the duration of the pandemic, the actions taken by federal, state and local governments in response to the pandemic and the length of time necessary for the economy to transition back to more normal operating conditions.
These and other factors could have a material adverse impact on our business, financial position, results of operations and cash flows.
4 unchanged sentences
Management believes the decentralized nature of our model should insulate Landstar’s freight operations in an environment where social distancing can disrupt centralized business structures.
−Removed: A significant impact to our independent agent network and/or a significant decrease in available truck capacity providers due to illness or government restrictions related to the COVID-19
+Added: A significant disruption to our independent agent network and/or a significant decrease in available truck capacity providers due to illness or government restrictions related to the COVID-19
pandemic could have a material adverse effect on our ability to source capacity to service our customers and could have a significant impact on Landstar, including our results of operations, revenue and cash flows.
1 unchanged sentence
pandemic has caused significant disruptions in the Mexican economy.
−Removed: During the first half of the Company’s 2020 fiscal year, the value of the Mexican peso to the U.S.
+Added: During the Company’s 2020 fiscal year, the value of the Mexican peso to the U.S.
dollar significantly depreciated and may continue to depreciate further.
2 unchanged sentences
dollar and could have a significant adverse impact on the financial condition and results of operations of our Mexican subsidiaries.
−Removed: Increased severity or frequency of accidents and other claims or a material unfavorable development of existing claims.
−Removed: For periods prior to May 1, 2019, Landstar retains liability for commercial trucking claims up to $5,000,000 per occurrence and maintains various third party insurance arrangements for liabilities in excess of its $5,000,000 self-insured retention.
−Removed: Effective May 1, 2019, the Company entered into a new three year commercial auto liability insurance arrangement for losses incurred between $5,000,000 and $10,000,000 (the “Initial Excess Policy”) with a third party insurance company.
−Removed: For commercial trucking claims incurred on or after May 1, 2019 through April 30, 2022, the Initial Excess Policy initially provided for a limit for a single loss of $5,000,000, with an aggregate limit of $10,000,000 for each policy year, an aggregate limit of $15,000,000 for the thirty-six
−Removed: month term ended April 30, 2022, and options to increase such aggregate limits for pre-established
−Removed: amounts of additional premium.
−Removed: In the event paid aggregate losses under the Initial Excess Policy during any policy year (May 1 to April 30) exceeded $10,000,000, the Company would retain liability of up to $10,000,000 per occurrence, inclusive of its $5,000,000 self-insured retention, for the remainder of such policy year.
−Removed: Moreover, in the event paid aggregate losses under the Initial Excess Policy during the three year period ending April 30, 2022 exceeded a pre-determined
−Removed: threshold amount, the Initial Excess Policy would require the Company to pay additional premium up to a maximum amount of $3,500,000.
−Removed: As previously disclosed, BCO Independent Contractors with a subsidiary of the Company have been involved in two tragic accidents during the policy year ending April 30, 2020, the first of which occurred in the 2019 third quarter and the second of which occurred in the 2020 first quarter.
−Removed: Following these two tragic accidents, the Company exercised its option under the Initial Excess Policy to increase its aggregate limits to $15,000,000 for each policy year and $20,000,000 for the thirty-six
−Removed: month term ended April 30, 2022.
−Removed: If aggregate losses under the Initial Excess Policy exceed either the new annual aggregate limit or the new aggregate limit for the three year period ending April 30, 2022, and the Company declined the option to increase such aggregate limits for a pre-established
−Removed: amount of additional premium, Landstar would retain liability of up to $10,000,000 per occurrence, inclusive of its self-insured retention for commercial trucking claims during the remainder of the applicable policy year(s).
−Removed: In addition, as a result of the Company’s aggregate loss experience since it entered into the Initial Excess Policy, it believes it is probable it will be required to pay additional premium under the Initial Excess Policy, which amount of additional premium was provided for and included in insurance and claims costs for the Company’s 2020 fiscal first quarter.
−Removed: The Company also maintains third party insurance arrangements providing excess coverage for commercial trucking liabilities in excess of $10,000,000.
−Removed: These third party arrangements provide coverage on a per occurrence or aggregated basis.
−Removed: Due to the increasing cost of commercial auto liability claims throughout the United States in recent years, the availability of such excess coverage has significantly worsened and the pricing associated with such excess coverage, to the extent available, has significantly increased.
−Removed: Effective May 1, 2020 with respect to the annual policy year ending April 30, 2021, the Company experienced an increase of approximately $14 million, or over 170%, in the premiums charged by third party insurance companies to the Company for excess coverage for commercial trucking liabilities in excess of $10,000,000.
−Removed: No assurances can be given that the availability of excess coverage for commercial trucking claims will not continue to deteriorate, that the pricing associated with such excess coverage, to the extent available, will not continue to increase, nor that insurance coverage from third party insurers for excess coverage of commercial trucking claims will even be available on commercially reasonable terms at certain levels.
−Removed: Further, the Company also retains liability of up to $1,000,000 for each general liability claim, up to $250,000 for each workers’ compensation claim and up to $250,000 for each cargo claim.
−Removed: In addition, under reinsurance arrangements by Signature of certain risks of the Company’s BCO Independent Contractors, the Company retains liability of up to $500,000, $1,000,000 or $2,000,000 with respect to certain occupational accident claims and up to $750,000 with respect to certain workers’ compensation claims.
−Removed: The Company’s exposure to liability associated with accidents incurred by Truck Brokerage Carriers, railroads and air and ocean cargo carriers who transport freight on behalf of the Company is reduced by various factors including the extent to which such carriers maintain their own insurance coverage.
−Removed: A material increase in the frequency or severity of accidents, cargo claims or workers’ compensation claims or the material unfavorable development of existing claims could have a material adverse effect on Landstar’s cost of insurance and claims and its results of operations.
−Removed: For a discussion identifying additional risk factors and other important factors that could cause actual results to differ materially from those anticipated, see the discussions under Part I, Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K
−Removed: for the fiscal year ended December 28, 2019 and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Notes to Consolidated Financial Statements” in this Quarterly Report on Form 10-Q.
−Removed: Disruptions or failures in the Company’s computer systems;
−Removed: cyber and other information security incidents.
−Removed: The Company’s information technology systems used in connection with its operations are located in Jacksonville, Florida and to a lesser extent in Rockford, Illinois.
−Removed: In addition, the Company utilizes several third party data centers throughout the U.S.
−Removed: Landstar relies, in the regular course of its business, on the proper operation of its information technology systems to link its extensive network of customers, employees, agents and third party capacity providers, including its BCO Independent Contractors.
−Removed: Moreover, in connection with the COVID-19
−Removed: pandemic, the Company has temporarily transitioned the vast majority of its office-based employees to work-at-home
−Removed: arrangements.
−Removed: Although the Company has redundant systems for its critical operations, any significant disruption or failure of its technology systems or those of third party data centers on which it relies could significantly disrupt the Company’s operations and impose significant costs on the Company.
−Removed: Moreover, it is critical that the data processed by or stored in the Company’s information technology systems or otherwise in the Company’s possession remain confidential, as it often includes confidential, proprietary and/or competitively sensitive information regarding our customers, employees, agents and third party capacity providers, key financial and operational results and statistics, and our strategic plans, including technology innovations, developments and enhancements.
−Removed: Cyber incidents that impact the security, availability, reliability, speed, accuracy or other proper functioning of these systems and data, including outages, computer viruses, break-ins
−Removed: and similar disruptions, could have a significant impact on our operations.
−Removed: Accordingly, information security and the continued development and enhancement of the controls and processes designed to protect our systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority for us.
−Removed: Although we believe that we have robust security procedures and other safeguards in place, as threats continue to evolve, we may be required to expend additional resources to continue to enhance our information security measures and/or to investigate and remediate any security vulnerabilities.
−Removed: For example, in the first quarter of 2016, we were subject to “spear-phishing” attacks through which third parties were able to obtain personal employee data.
−Removed: have undertaken a number of remedial measures in response, including enhancing our security systems and additional training for our employees.
−Removed: Additional incidents may occur in the future and may have a material adverse effect on our business and operations.
−Removed: A significant incident, including system failure, security breach, disruption by malware, or other damage, could interrupt or delay our operations, damage our reputation, cause a loss of customers, agents and/or third party capacity providers, expose us to a risk of loss or litigation, and/or cause us to incur significant time and expense to remedy such an event, any of which could have a material adverse impact on our results of operations and financial condition.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.