What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-29 · 132 added, 91 removed, 352 unchanged (39% of the section changed)

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and do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.

Operating results for the thirteen weeks ended March 28, 2026 are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 26, 2026.

These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2025 Annual Report on Form

Operating results for the twenty-six

weeks ended June 27, 2026 are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 26, 2026.

LANDSTAR SYSTEM, INC.

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Shareholders’ Equity

Common stock, $ 0.01 par value, authorized 160,000,000 shares, issued 68,619,240 and 68,590,708 shares

Common stock, $ 0.01 par value, authorized 160,000,000 shares, issued 68,631,174

and 68,590,708 shares

Additional paid-in

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Operating income

Interest and debt expense (income)

Interest and debt expense

Income before income taxes

7 unchanged sentences

(Dollars in thousands)

Twenty-Six Weeks Ended

Thirteen Weeks Ended

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(Dollars in thousands)

Thirteen Weeks Ended

OPERATING ACTIVITIES

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Increase in trade and other accounts receivable

Decrease in other assets

Increase in other assets

Increase in accounts payable

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Proceeds from sales of operating property

NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES

NET CASH USED BY INVESTING ACTIVITIES

FINANCING ACTIVITIES

Decrease in cash overdraft

Increase (decrease) in cash overdraft

Dividends paid

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Thirteen Weeks Ended March 28, 2026 and March 29, 2025

and Thirteen Weeks Ended June 27, 2026 and June 28, 2025

(Dollars in thousands)

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Balance March 28, 2026

Dividends ($ 0.40 per share)

Purchases of common stock

Issuance of stock related to stock-based compensation plans

Stock-based compensation

Other comprehensive loss

Balance June 27, 2026

Treasury Stock at Cost

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Balance March 29, 2025

Dividends ($ 0.40 per share)

Purchases of common stock

Issuance of stock related to stock-based compensation plans

Stock-based compensation

Other comprehensive income

Balance June 28, 2025

See accompanying notes to consolidated financial statements.

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Revenue from Contracts with Customers – Disaggregation of Revenue

The following table summarizes (i) the percentage of consolidated revenue generated by mode of transportation and (ii) the total amount of truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers generated by equipment type during the thirteen-week periods ended March 28, 2026 and March 29, 2025 (dollars in thousands):

and thirteen-week periods ended June 27, 2026 and June 28, 2025 (dollars in thousands):

Twenty-Six Weeks Ended

Thirteen Weeks Ended

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Share-based Payment Arrangements

As of March 28, 2026, the Company has an employee equity incentive plan, the 2011 equity incentive plan (the “2011 EIP”).

As of June 27, 2026, the Company has an employee equity incentive plan, the 2011 equity incentive plan (the “2011 EIP”).

The Company also has a stock compensation plan for members of its Board of Directors, the 2022 Directors Stock Compensation Plan (the “2022 DSCP”).

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The 2011 EIP and 2022 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):

Twenty-Six Weeks Ended

Thirteen Weeks Ended

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Net cost of the Plans during the period

Included in income tax benefits recognized in the thirteen-week periods ended March 28, 2026 and March 29, 2025 were tax deficiencies from stock-based awards of $ 151,000 and $ 51,000 , respectively.

As of March 28, 2026, there were 172,859 shares of the Company’s common stock reserved for issuance under the 2022 DSCP and 2,550,096 shares of the Company’s common stock reserved for issuance under the 2011 EIP.

Included in income tax benefits recognized in the twenty-six-week

periods ended June 27, 2026 and June 28, 2025 were tax (benefits) deficiencies from stock-based awards of ($ 14,000 ) and $ 104,000 , respectively.

As of June 27, 2026, there were 161,928 shares of the Company’s common stock reserved for issuance under the 2022 DSCP and 2,600,923 shares of the Company’s common stock reserved for issuance under the 2011 EIP.

Restricted Stock Units

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Outstanding at December 27, 2025

Outstanding at March 28, 2026

During the thirteen-week period ended March 28, 2026, the Company granted RSUs with a performance condition and RSUs with a market condition, as further described below.

Outstanding RSUs at both December 27, 2025 and March 28, 2026 include RSUs with a performance condition and RSUs with a market condition, as further described below and in the Company’s 2025 Annual Report on Form 10-K.

RSUs with a performance condition granted during the thirteen-week period ended March 28, 2026 may vest on January 31 of 2029, 2030 and 2031 based on growth in diluted earnings per share as compared to the results from the 2025 fiscal year, adjusted to reflect the add back of (i) the charge taken by the Company in the 2025 first quarter in connection with a supply chain fraud relating to the Company’s international freight forwarding operations;

Outstanding at June 27, 2026

During the twenty-six-week

period ended June 27, 2026, the Company granted RSUs with a performance condition and RSUs with a market condition, as further described below.

Outstanding RSUs at both December 27, 2025 and June 27, 2026 include RSUs with a performance condition and RSUs with a market condition, as further described below and in the Company’s 2025 Annual Report on Form 10-K.

RSUs with a performance condition granted during the twenty-six-week

period ended June 27, 2026 may vest on January 31 of 2029, 2030 and 2031 based on growth in diluted earnings per share as compared to the results from the 2025 fiscal year, adjusted to reflect the add back of (i) the charge taken by the Company in the 2025 first quarter in connection with a supply chain fraud relating to the Company’s international freight forwarding operations;

and (ii) impairment charges recorded in the Company’s 2025 fiscal year related to:

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the decision to wind-down the Landstar Blue TMS;

and a non-controlling

equity investment made by the Company in Cavnue, LLC, a privately held technology start-up

and a non-controlling equity

investment made by the Company in Cavnue, LLC, a privately held technology start-up company.

On January 30, 2026, the Company granted 6,715 RSUs that vest based on a market condition.

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Previously recognized compensation cost would be reversed only if the employee did not complete the requisite service period due to termination of employment.

The Company recognized approximately $ 1,241,000 and $ 857,000 of share-based compensation expense related to RSU awards in the thirteen-week periods ended March 28, 2026 and March 29, 2025, respectively.

As of March 28, 2026, there was a maximum of $ 56.9 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.

The Company recognized approximately $ 3,022,000 and $ 1,253,000 of share-based compensation expense related to RSU awards in the twenty-six-week

periods ended June 27, 2026 and June 28, 2025, respectively.

As of June 27, 2026, there was a maximum of $ 47.9 million of total unrecognized compensation cost related to RSU awards granted under the Plans with an expected average remaining life of approximately 3.1 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.

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and Deferred Stock

Weighted Average

WeightedAverage

at December 27, 2025

at March 28, 2026

at June 27, 2026

The fair value of each share of non-vested

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However, Deferred Stock Units do contain the right to receive dividend equivalent payments prior to settlement into shares.

As of March 28, 2026, there was $ 7,340,000 of total unrecognized compensation cost related to non-vested

As of June 27, 2026, there was $ 7,061,000 of total unrecognized compensation cost related to non-vested

shares of restricted stock and Deferred Stock Units granted under the Plans.

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shares of restricted stock and Deferred Stock Units is expected to be recognized over a weighted average period of 2.0 years.

The provisions for income taxes for the 2026 and 2025 thirteen-week periods were based on estimated annual effective income tax rates of 24.9 % and 24.3 %, respectively, adjusted for discrete events, such as excess tax benefits or deficiencies resulting from stock-based awards.

The effective income tax rate for the 2026 thirteen-week period was 25.2 %.

The provisions for income taxes for the 2026 and 2025 twenty-six-week

periods were based on estimated annual effective income tax rates of 25.1 % and 24.3 %, respectively, adjusted for discrete events, such as excess tax benefits or deficiencies resulting from stock-based awards.

The effective income tax rate for the 2026 twenty-six-week

period was 25.2 %.

The effective income tax rate was higher than the statutory federal income tax rate of 21 % in the 2026 period primarily attributable to state taxes.

The effective income tax rate for the 2025 thirteen-week period was 24.7 %.

The effective income tax rate for the 2025 twenty-six-week

period was 24.7 %.

The effective income tax rate was higher than the statutory federal income tax rate of 21 % in the 2025 period primarily attributable to state taxes.

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Outstanding RSUs were excluded from the calculation of diluted earnings per share for all periods because the performance metric requirements or market condition for vesting had not been satisfied.

Accordingly, the Company had no reconciling items between the average number of common shares outstanding used to calculate basic earnings per common share and the average number of common shares and common share equivalents outstanding used to calculate diluted earnings per share during each of the 2026 and 2025 thirteen-week periods.

Additional Cash Flow Information

During the 2026 thirteen-week period, Landstar paid income taxes and interest of $ 442,000 and $ 1,233,000 , respectively.

During the 2025 thirteen-week period, Landstar paid income taxes and interest of $ 480,000 and $ 1,446,000 , respectively.

Landstar did not acquire any operating property by entering into finance leases in the 2026 or 2025 thirteen-week periods.

During the 2026 thirteen-week period, the Company purchased its common stock at a total cost of $ 22,587 ,000, including $ 22,387,000 in cash purchases and accrued excise tax of $ 200,000 , which is included in other current liabilities in the consolidated balance sheet at March 28, 2026.

the 2025 thirteen-week period, the Company purchased its common stock at a total cost of $ 60,945 ,000, including $ 60,361,000 in cash purchases and accrued excise tax of $ 584,000 , which was included in other current liabilities in the consolidated balance sheet at March 29, 2025.

During the 2026 twenty-six-week

period, Landstar paid

income taxes and interest of $ 22,188,000 and $ 2,449,000 , respectively.

During the 2025 twenty-six-week

period, Landstar paid income taxes and interest of $ 33,972,000 and $ 2,816,000 , respectively.

Landstar acquired operating property by entering into finance leases in the amount of $ 5,197,000 in the 2026 twenty-six-week

Landstar did not acquire any operating property by entering into finance leases in the 2025 twenty-six-week

During the 2026 twenty-six-week

period, the Company purchased its common stock at a total cost of $ 22,563,000 , including $ 22,387,000 in cash purchases and accrued excise tax of $ 176,000 , which is included in other current liabilities in the consolidated balance sheet at June 27, 2026.

The Company also paid $ 1,762,000 in excise tax on its common stock purchases, which was included in other current liabilities in the consolidated balance sheet at December 27, 2025.

During the 2025 twenty-six-week

period, the Company purchased its common stock at a total cost of $ 103,295,000 , including $ 102,300,000 in cash purchases and accrued excise tax of $ 995,000 , which was included in other current liabilities in the consolidated balance sheet at June 28, 2025.

Segment Information

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Asset information by segment is not typically provided to the CODM for purposes of evaluating performance or allocating resources, and therefore such information has not been presented.

The following tables summarize information about the Company’s reportable business segments as of and for the thirteen-week periods ended March 28, 2026 and March 29, 2025 (in thousands):

The following tables summarize information about the Company’s reportable business segments as of and for the twenty-six-week

and thirteen-week periods ended June 27, 2026 and June 28, 2025 (in thousands):

June 27, 2026

June 28, 2025

Transportation

External revenue

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Operating income

Interest and debt expense (1)

Income before income taxes

Thirteen Weeks Ended

June 27, 2026

June 28, 2025

Transportation

External revenue

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Operating income

Thirteen Weeks Ended

Operating income

Interest and debt expense (income) (1)

Interest and debt expense (1)

Income before income taxes

Interest and debt expense (income) includes (i) interest income earned on cash balances held by the transportation logistics segment of $ 778 and $ 1,668 in the 2026 and 2025 thirteen-week periods, respectively and (ii) consolidated total interest expense of $ 1,296 and $ 1,509 in the 2026 and 2025 thirteen-week periods, respectively.

In the thirteen-week periods ended March 28, 2026 and March 29, 2025, no single customer accounted for more than 10 % of the Company’s consolidated revenue.

Interest and debt expense includes (i) interest income earned on cash balances held by the transportation logistics segment of $ 1,251 and $ 2,409 in the 2026 and 2025 twenty-six-week

periods, respectively, and $ 473 and $ 741 in the 2026 and 2025 thirteen-week periods, respectively, and (ii) consolidated total interest expense of $ 2,581 and $ 2,948 in the 2026 and 2025 twenty-six-week

periods, respectively, and $ 1,285 and $ 1,439 in the 2026 and 2025 thirteen-week periods, respectively.

In the twenty-six-week

periods ended June 27, 2026 and June 28, 2025, no single customer accounted for more than 10 % of the Company’s consolidated revenue.

Other Comprehensive Income

The following table presents the components of and changes in accumulated other comprehensive loss, net of related income taxes, as of and for the thirteen-week period ended March 28, 2026 (in thousands):

Holding Losses on

The following table presents the components of and changes in accumulated other comprehensive loss, net of related income taxes, as of and for the twenty-six-week

period ended June 27, 2026 (in thousands):

Holding Losses

Available-for-Sale

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Other comprehensive loss

Balance as of March 28, 2026

Amounts reclassified from accumulated other comprehensive income to investment income due to the realization of previously unrealized gains and losses in the accompanying consolidated statements of income were not significant for the thirteen-week period ended March 28, 2026.

Balance as of June 27, 2026

period ended June 27, 2026.

Investments include primarily investment-grade corporate bonds, asset-backed securities, commercial paper and U.S.

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Treasury obligations and money market investments and Level 2 inputs related to investment-grade corporate bonds, asset-backed securities, commercial paper and direct obligations of government agencies.

Unrealized losses, net of unrealized gains, on the investments in the bond portfolio were $ 1,498,000 and $ 504,000 at March 28, 2026 and December 27, 2025, respectively.

Unrealized losses, net of unrealized gains, on the investments in the bond portfolio were

$ 1,355,000 and $ 504,000 at June 27, 2026 and December 27, 2025, respectively.

The amortized cost and fair values of available-for-sale

investments are as follows at March 28, 2026 and December 27, 2025 (in thousands):

March 28, 2026

investments are as follows at June 27, 2026 and December 27, 2025 (in thousands):

June 27, 2026

Money market investments

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For those available-for-sale

investments with unrealized losses at March 28, 2026 and December 27, 2025, the following table summarizes the duration of the unrealized loss (in thousands):

investments with unrealized losses at June 27, 2026 and December 27, 2025, the following table summarizes the duration of the unrealized loss (in thousands):

Less than 12 months

12 months or longer

March 28, 2026

June 27, 2026

Asset-backed securities

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therefore, based on the applicable lease terms and the current economic environment, the Company applies a portfolio approach for determining the incremental borrowing rate.

The components of lease cost for finance leases and operating leases for the thirteen weeks ended March 28, 2026 were (in thousands):

The components of lease cost for finance leases and operating leases for the twenty-six

weeks ended June 27, 2026 were (in thousands):

Finance leases:

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Sublease income

Total net operating lease income

Total net operating lease cost

Total net lease cost

A summary of the lease classification on the Company’s consolidated balance sheet as of March 28, 2026 is as follows (in thousands):

A summary of the lease classification on the Company’s consolidated balance sheet as of June 27, 2026 is as follows (in thousands):

Operating lease right-of-use

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Total lease assets

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 March 28, 2026 (in thousands):

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 June 27, 2026 (in thousands):

2026 Remainder

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Deferred income taxes and other noncurrent liabilities

The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of March 28, 2026 were:

The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of June 27, 2026 were:

Finance Leases

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Weighted average discount rate

Other than the finance lease obligations as presented on the consolidated balance sheets, the Company had no outstanding debt as of March 28, 2026 and December 27, 2025.

On July 1, 2022 , Landstar entered into a second amended and restated credit agreement with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent (as further amended as of June 21, 2024, the “Credit Agreement”).

The Credit Agreement, which matures July 1, 2027, provides for borrowing capacity in the form of a revolving credit facility of $ 300,000,000 , $ 45,000,000 of which may be utilized in the form of letters of credit.

The Credit Agreement also includes an “accordion” feature providing for a possible increase of up to an aggregate amount of borrowing capacity of $ 600,000,000 .

As of March 28, 2026, the Company had no borrowings outstanding under the Credit Agreement.

The revolving credit loans under the Credit Agreement, at the option of Landstar, bear interest at (i) a forward-looking term rate based on the secured overnight financing rate plus 0.10 % and an applicable margin ranging from 1.25 % to 2.00 %, or (ii) an alternate base rate plus an applicable margin ranging from 0.25 % to 1.00 %, in each case with the applicable margin determined based upon the Company’s Leverage Ratio, as defined in the Credit Agreement, at the end of the most recent applicable fiscal quarter for which financial statements have been delivered.

The revolving credit facility bears a commitment fee, payable quarterly in arrears, of 0.20 % to 0.30 %, based on the Company’s Leverage Ratio at the end of the most recent applicable fiscal quarter for which financial statements have been delivered.

Other than the finance lease obligations as presented on the consolidated balance sheets, the Company had no outstanding debt as of June 27, 2026 and December 27, 2025.

On June 30, 2026, and as previously disclosed in a Form 8-K

filed with the SEC on July 6, 2026, Landstar entered into a third amended and restated credit agreement,

June 30, 2026 ,

with a bank syndicate led by JPMorgan Chase Bank, N.A., as administrative agent (the “Third Amended and Restated Credit Agreement”), which amended and restated the existing second amended and restated credit agreement.

The Third Amended and Restated Credit Agreement, which

June 30, 2031 , provides for borrowing capacity in the form of a revolving credit facility of $

300,000,000 , $

of which may be utilized in the form of letters of credit.

The Third Amended and Restated Credit Agreement also includes an uncommitted “accordion” feature permitting up to an additional $ 500,000,000 in increases to the revolving credit facility.

The Third Amended and Restated Credit Agreement is referred to herein as the “Credit Agreement.” As of June 27, 2026, the Company had no borrowings outstanding under the Credit Agreement.

The revolving credit loans under the Credit Agreement, at the option of Landstar, bear interest at (i) a forward-looking term rate based on the secured overnight financing rate and an applicable margin ranging from 1.25 % to 2.00 %, or (ii) an alternate base rate plus an applicable margin ranging from 0.25 % to 1.00 %, in each case with the applicable margin determined based upon the Company’s Net Leverage Ratio, as defined in the Credit Agreement, at the end of the most recent applicable fiscal quarter for which financial statements have been delivered.

The revolving credit facility bears a commitment fee, payable quarterly in arrears, of 0.175 % to 0.25 %, based on the Company’s Net Leverage Ratio at the end of the most recent applicable fiscal quarter for which financial statements have been delivered.

The Credit Agreement contains a number of covenants that limit, among other things, the incurrence of additional indebtedness.

The Company is required to, among other things, maintain a minimum fixed charge coverage ratio, as described in the Credit Agreement, and maintain a Leverage Ratio, as defined in the Credit Agreement, below a specified maximum.

The Company is required to, among other things, maintain a minimum interest coverage ratio, as described in the Credit Agreement, and maintain a Net Leverage Ratio, as defined in the Credit Agreement, below a specified maximum.

The Credit Agreement provides for a restriction on cash dividends and other distributions to stockholders on the Company’s capital stock to the extent there is a default under the Credit Agreement.

In addition, the Credit Agreement under certain circumstances limits the amount of such cash dividends and other distributions to stockholders to the extent that, after giving effect to any payment made to effect such cash dividend or other distribution, the Leverage Ratio would exceed 2.5

to 1 on a pro forma basis as of the end of the Company’s most recently completed fiscal quarter.

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Commitments and Contingencies

Short-term investments include $ 57,697,000 in current maturities of investments held by the Company’s insurance segment at March 28, 2026.

Short-term investments include $ 53,352,000 in current maturities of investments held by the Company’s insurance segment at June 27, 2026.

The non-current

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investments, provide collateral for the $ 75,331,000 of letters of credit issued to guarantee payment of insurance claims.

As of March 28, 2026, Landstar also had $ 34,916,000 of additional letters of credit outstanding under the Company’s Credit Agreement.

As of June 27, 2026, Landstar also had $ 34,886,000 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.

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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 thirteen-week periods ended March 28, 2026 and March 29, 2025 (in thousands, except per share amounts):

and thirteen-week periods ended June 27, 2026 and June 28, 2025 (in thousands, except per share amounts):

Twenty-Six Weeks Ended

Thirteen Weeks Ended

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Basic and diluted earnings per share

The unfavorable development of prior years’ claims during the thirteen-week period ended March 28, 2026 was primarily attributable to cargo loss experience as a result of fraud and theft in the supply chain and several specific commercial trucking claims.

Held for Sale Subsidiary

The unfavorable development of prior years’ claims during the twenty-six-week

period ended June 27, 2026 was primarily attributable to several specific commercial trucking claims and cargo loss experience as a result of fraud and theft in the supply chain.

Subsidiary Wind Down

During the 2025 fiscal year, the Company entered into an arrangement with a financial advisor to actively market its Mexican subsidiary, Landstar Metro, S.A.P.I.

(“Landstar Metro”) and to consider other strategic alternatives for this subsidiary, which may involve a sale or other disposition in whole or in part of Landstar Metro during the Company’s 2026 fiscal year.

The Company determined that this planned divestiture does not represent a strategic shift that would be expected to have a significant effect on our consolidated results of operations, and therefore the results of Landstar Metro are not reported as discontinued operations.

It is not anticipated that a sale or other disposition of Landstar Metro will adversely affect the Company’s ability to provide U.S.-Mexico cross-border services, given that Landstar Metro is principally engaged in intra-Mexico truck transportation services.

During the 2025 third and fourth fiscal quarters, based on the expected fair value of Landstar Metro, net of anticipated costs to sell, the Company recognized impairments on assets held for sale in the aggregate of

included in impairment of intangible and other assets within the Company’s consolidated statements of income for the 2025 third and fourth fiscal quarters.

In the 2026 thirteen-week perio

d, the Company recognized an additional impairment on assets held for sale of $ 1,054,000 included in selling, general and administrative costs within the Company’s consolidated statements of income.

No assurances can be provided that there will not be additional charges and expenses incurred by the Company in connection with this sale process or upon any ultimate disposition of Landstar Metro.

As of March 28, 2026, the assets and liabilities of Landstar Metro are presented as held for sale at carrying value.

A summary of assets and liabilities associated with Landstar Metro that are held for sale, is presented below (in thousands):

As of March 28, 2026

Assets held for sale:

Cash and cash equivalents

Trade and other receivables

Operating property

valuation allowance

Total assets held for sale (1)

Liabilities held for sale:

Accounts payable

Deferred income taxes and other liabilities

Total liabilities held for sale (1)

Cumulative translation loss of foreign entities held for sale (2)

Assets and liabilities held for sale are separately presented on the consolidated balance sheets.

Cumulative translation loss of foreign entities held for sale is included within accumulated other comprehensive loss on the consolidated balance sheets.

(“Landstar Metro”) and to consider other strategic alternatives for this subsidiary.

During the second fiscal quarter of 2026, the Company stopped actively marketing Landstar Metro and initiated a wind-down of its operations and sales of certain assets.

As such, the assets and liabilities of Landstar Metro are no longer presented as held for sale within the consolidated balance sheet at June 27, 2026.

It is not anticipated that the disposition of Landstar Metro will adversely affect the Company’s ability to provide U.S.-Mexico cross-border services, given that Landstar Metro was principally engaged in intra-Mexico truck transportation services.

In the 2026 twenty-six-week

period, the Company recognized an impairment of $ 679,000 included in selling, general and administrative costs within the Company’s consolidated statements of income related to Landstar Metro.

While the Company does not currently

anticipate any further charges to be incurred as a result of the wind-down process, no assurances can be provided that there will not be additional charges and expenses incurred by the Company in connection with any ultimate dissolution of Landstar Metro.

Recent Accounting Pronouncements

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The Company is currently evaluating the impact of ASU 2024-03

on its consolidated financial statements and disclosures.

on its disclosures, but this standard update is not expected to impact the Company’s results of operations or 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.

What changed 10-Q

Item 1. Financial Statements