e10vq

0000950123-11-041476.txt : 20110429 0000950123-11-041476.hdr.sgml : 20110429 20110429094313 ACCESSION NUMBER: 0000950123-11-041476 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 20110326 FILED AS OF DATE: 20110429 DATE AS OF CHANGE: 20110429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LANDSTAR SYSTEM INC CENTRAL INDEX KEY: 0000853816 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 061313069 STATE OF INCORPORATION: DE FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-21238 FILM NUMBER: 11791336 BUSINESS ADDRESS: STREET 1: 13410 SUTTON PARK DRIVE SOUTH CITY: JACKSONVILLE STATE: FL ZIP: 32224 BUSINESS PHONE: 9043901234 MAIL ADDRESS: STREET 1: LANDSTAR SYSTEM INC STREET 2: 13410 SUTTON PARK DRIVE SOUTH CITY: JACKSONVILLE STATE: FL ZIP: 32224 10-Q 1 g26731e10vq.htm FORM 10-Q e10vq

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 26, 2011


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-21238

LANDSTAR SYSTEM, INC.

(Exact name of registrant as specified in its charter)


Delaware (State or other jurisdiction of incorporation or organization)		06-1313069 (I.R.S. Employer Identification No.)

13410 Sutton Park Drive South, Jacksonville, Florida
(Address of principal executive offices)
32224
(Zip Code)
(904) 398-9400
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:

Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files):

Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

The number of shares of the registrant’s common stock, par value $0.01 per share, outstanding as of the close of business on April 18, 2011 was 47,882,197.

Index


PART I — Financial Information

Item 1. Financial Statements (unaudited)

Consolidated Balance Sheets as of March 26, 2011 and December 25, 2010		Page 4

Consolidated Statements of Income for the Thirteen Weeks Ended March 26, 2011 and March 27, 2010		Page 5

Consolidated Statements of Cash Flows for the Thirteen Weeks Ended March 26, 2011 and March 27, 2010		Page 6

Consolidated Statement of Changes in Equity for the Thirteen Weeks Ended March 26, 2011		Page 7

Notes to Consolidated Financial Statements		Page 8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		Page 13

Item 3. Quantitative and Qualitative Disclosures About Market Risk		Page 22

Item 4. Controls and Procedures		Page 23

PART II — Other Information

Item 1. Legal Proceedings		Page 23

Item 1A. Risk Factors		Page 24

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		Page 24

Item 6. Exhibits		Page 25

Signatures		Page 27
EX-31.1
EX-31.2
EX-32.1
EX-32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

The interim consolidated financial statements contained herein reflect all adjustments (all of a normal, recurring nature) which, in the opinion of management, are necessary for a fair statement of the financial condition, results of operations, cash flows and changes in equity for the periods presented. They have been prepared in accordance with Rule 10-01 of Regulation S-X 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 26, 2011, are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 31, 2011.

These interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2010 Annual Report on Form 10-K.

LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
(Unaudited)


	March 26,			December 25,
	2011			2010
ASSETS
Current Assets
Cash and cash equivalents	$	45,230		$	44,706
Short-term investments		30,756			23,266
Trade accounts receivable, less allowance of $5,525 and $5,324		344,459			307,350
Other receivables, including advances to independent contractors, less allowance of $5,018 and $5,511		30,972			23,943
Deferred income taxes and other current assets		15,218			21,652

Total current assets		466,635			420,917


Operating property, less accumulated depreciation and amortization of $142,330 and $137,830		127,957			132,649
Goodwill		57,470			57,470
Other assets		62,373			72,846

Total assets	$	714,435		$	683,882


LIABILITIES AND EQUITY
Current Liabilities
Cash overdraft	$	23,407		$	24,877
Accounts payable		160,704			137,297
Current maturities of long-term debt		19,878			22,172
Insurance claims		43,027			40,215
Other current liabilities		55,072			53,785

Total current liabilities		302,088			278,346


Long-term debt, excluding current maturities		95,710			99,439
Insurance claims		31,627			31,468
Deferred income taxes		22,573			23,662

Equity
Landstar System, Inc. and subsidiary shareholders’ equity
Common stock, $0.01 par value, authorized 160,000,000 shares, issued 66,554,156 and 66,535,169 shares		666			665
Additional paid-in capital		161,543			169,268
Retained earnings		862,357			844,132
Cost of 18,675,959 and 18,674,902 shares of common stock in treasury		(763,223	)		(763,182	)
Accumulated other comprehensive income		1,094			881

Total Landstar System, Inc. and subsidiary shareholders’ equity		262,437			251,764

Noncontrolling interest		—			(797	)

Total equity		262,437			250,967

Total liabilities and equity	$	714,435		$	683,882

See accompanying notes to consolidated financial statements.

LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)


	Thirteen Weeks Ended
	March 26,			March 27,
	2011			2010
Revenue	$	571,986		$	548,088
Investment income		528			285
Costs and expenses:
Purchased transportation		431,378			417,201
Commissions to agents		44,171			40,408
Other operating costs		7,944			7,536
Insurance and claims		11,266			12,298
Selling, general and administrative		37,264			36,843
Depreciation and amortization		6,399			5,792

Total costs and expenses		538,422			520,078

Operating income		34,092			28,295
Interest and debt expense		828			854

Income before income taxes		33,264			27,441
Income taxes		12,707			10,484

Net income		20,557			16,957
Less: Net loss attributable to noncontrolling interest		(62	)		(219	)

Net income attributable to Landstar System, Inc. and subsidiary	$	20,619		$	17,176

Earnings per common share attributable to Landstar System, Inc. and subsidiary	$	0.43		$	0.34

Diluted earnings per share attributable to Landstar System, Inc. and subsidiary	$	0.43		$	0.34


Average number of shares outstanding:
Earnings per common share		47,870,000			50,207,000

Diluted earnings per share		47,900,000			50,318,000

Dividends paid per common share	$	0.050		$	0.045

See accompanying notes to consolidated financial statements.

LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)


	Thirteen Weeks Ended
	March 26,			March 27,
	2011			2010
OPERATING ACTIVITIES
Net income	$	20,557		$	16,957
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of operating property and intangible assets		6,399			5,792
Non-cash interest charges		55			55
Provisions for losses on trade and other accounts receivable		1,226			1,027
Losses on sales/disposals of operating property, net		63			20
Deferred income taxes, net		(1,068	)		(805	)
Stock-based compensation		1,205			1,185
Changes in operating assets and liabilities:
Increase in trade and other accounts receivable		(45,364	)		(22,882	)
Decrease in other assets		5,870			5,977
Increase in accounts payable		23,407			12,475
Increase in other liabilities		1,283			7,490
Increase (decrease) in insurance claims		2,971			(3,182	)


NET CASH PROVIDED BY OPERATING ACTIVITIES		16,604			24,109


INVESTING ACTIVITIES
Net change in other short-term investments		—			(1,237	)
Sales and maturities of investments		23,870			6,082
Purchases of investments		(20,650	)		(6,275	)
Purchases of operating property		(1,808	)		(22,239	)
Proceeds from sales of operating property		300			55


NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES		1,712			(23,614	)


FINANCING ACTIVITIES
Decrease in cash overdraft		(1,470	)		(5,628	)
Dividends paid		(2,394	)		(2,262	)
Proceeds from exercises of stock options		70			159
Excess (shortfall) tax effect on stock option exercises		(181	)		9
Borrowings on revolving credit facility		—			15,000
Purchases of common stock		—			(4,507	)
Principal payments on capital lease obligations		(6,023	)		(6,592	)
Purchase of noncontrolling interest		(8,000	)		—


NET CASH USED BY FINANCING ACTIVITIES		(17,998	)		(3,821	)


Effect of exchange rate changes on cash and cash equivalents		206			100

Increase (decrease) in cash and cash equivalents		524			(3,226	)
Cash and cash equivalents at beginning of period		44,706			85,719

Cash and cash equivalents at end of period	$	45,230		$	82,493

See accompanying notes to consolidated financial statements.

LANDSTAR SYSTEM, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Thirteen Weeks Ended March 26, 2011
(Dollars in thousands)
(Unaudited)


	Landstar System, Inc. and Subsidiary Shareholders
																Accumulated
					Additional						Treasury Stock					Other		Non-
	Common Stock				Paid-In			Retained			at Cost					Comprehensive		controlling
	Shares		Amount		Capital			Earnings			Shares		Amount			Income		Interest			Total
Balance December 25, 2010		66,535,169	$	665	$	169,268		$	844,132			18,674,902	$	(763,182	)	$	881	$	(797	)	$	250,967

Net income (loss)									20,619										(62	)		20,557

Dividends paid ($0.05 per share)									(2,394	)												(2,394	)

Purchase of noncontrolling interest						(8,859	)												859			(8,000	)

Stock-based compensation						1,205																1,205

Exercises of stock options and issuance of non-vested stock, including shortfall tax effect		18,987		1		(71	)					1,057		(41	)							(111	)

Foreign currency translation																	206					206

Unrealized gain on available-for-sale investments, net of income taxes																	7					7


Balance March 26, 2011		66,554,156	$	666	$	161,543		$	862,357			18,675,959	$	(763,223	)	$	1,094	$	—		$	262,437

See accompanying notes to consolidated financial statements.

LANDSTAR SYSTEM, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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.

(1) Noncontrolling Interest

In the Company’s 2009 fiscal third quarter, the Company completed the acquisition of A3 Integration, LLC and its subsidiaries through A3i Acquisition LLC, an entity in which the Company owned 100% of the non-voting, preferred interests and, from the date of acquisition to January 2011, 75% of the voting, common equity interests. A subsidiary of the Company purchased the remaining 25% of the voting, common equity interests in A3i Acquisition, LLC in January 2011.

(2) Significant Accounting Policies

Financial Instruments

The Company’s financial instruments include cash equivalents, short and long term investments, trade and other accounts receivable, accounts payable, other accrued liabilities, current and non-current insurance claims and long term debt plus current maturities (“Debt”). The carrying value of cash equivalents, trade and other accounts receivable, accounts payable, current insurance claims and other accrued liabilities approximate fair value as the assets and liabilities are short term in nature. Short and long term investments are carried at fair value as further described in the “Investments” footnote below. The carrying value of non-current insurance claims approximate fair value as the Company generally has the ability to, but is not required to, settle claims in a short term. The Company’s Debt includes borrowings under the Company’s revolving credit facility plus borrowings relating to capital lease obligations used to finance trailing equipment. The interest rates on borrowings under the revolving credit facility are typically tied to short-term LIBOR rates that adjust monthly and, as such, carrying value approximates fair value. Interest rates on borrowings under capital leases approximate the interest rates that would currently be available to the Company under similar terms and, as such, carrying value approximates fair value.

(3) Share-based Payment Arrangements

As of March 26, 2011, the Company had an employee stock option plan (the “1993 Plan”), an employee stock option and stock incentive plan (the “ESOSIP”), and a stock compensation plan for members of its Board of Directors (the “Directors Stock Compensation Plan”) (each, a “Plan,” and collectively, the “Plans”). No further grants can be made under the 1993 Plan as its term for granting stock options has expired. Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands):


	Thirteen Weeks Ended
	March 26,		March 27,
	2011		2010
Total cost of the Plans during the period	$	1,205	$	1,185

Amount of related income tax benefit recognized during the period		305		299


Net cost of the Plans during the period	$	900	$	886

The fair value of each option grant on its grant date was calculated using the Black-Scholes option pricing model with the following weighted average assumptions for grants made in the 2011 and 2010 thirteen-week periods:


	2011			2010
Expected volatility		35.0	%		37.0	%
Expected dividend yield		0.450	%		0.400	%
Risk-free interest rate		1.75	%		2.50	%
Expected lives (in years)		4.0			4.2

The Company utilizes historical data, including exercise patterns and employee departure behavior, in estimating the term that options will be outstanding. Expected volatility was based on historical volatility and other factors, such as expected changes in volatility arising from planned changes to the Company’s business, if any. The risk-free interest rate was based on the yield of zero coupon U.S. Treasury bonds for terms that approximated the terms of the options granted. The weighted average grant date fair value of stock options granted during the thirteen-week periods ended March 26, 2011 and March 27, 2010 was $12.05 and $11.98, respectively.

The following table summarizes information regarding the Company’s stock options granted under the Plans:


						Weighted Average
				Weighted Average		Remaining
	Number of			Exercise Price		Contractual		Aggregate Intrinsic
	Options			per Share		Term (years)		Value (000s)
Options outstanding at December 25, 2010		2,295,831		$	39.73
Granted		271,000		$	41.81
Exercised		(69,348	)	$	37.40
Forfeited		(112,500	)	$	41.65

Options outstanding at March 26, 2011		2,384,983		$	39.94		6.7	$	11,799

Options exercisable at March 26, 2011		1,142,950		$	39.38		5.4	$	6,302

The total intrinsic value of stock options exercised during the thirteen-week periods ended March 26, 2011 and March 27, 2010 was $410,000 and $532,000, respectively.

As of March 26, 2011, there was $11,624,000 of total unrecognized compensation cost related to non-vested stock options granted under the Plans. The unrecognized compensation cost related to these non-vested options is expected to be recognized over a weighted average period of 3.2 years.

The fair value of each share of non-vested restricted stock issued under the Plans is based on the fair value of a share of the Company’s common stock on the date of grant.

The following table summarizes information regarding the Company’s non-vested restricted stock under the Plans:


				Weighted Average
	Number of			Grant Date
	Shares			Fair Value
Non-vested restricted stock outstanding at December 25, 2010		29,854		$	39.49
Granted		6,900		$	41.43
Vested		(2,772	)	$	39.10
Forfeited		(2,938	)	$	37.13

Non-vested restricted stock outstanding at March 26, 2011		31,044		$	40.18

As of March 26, 2011, there was $959,000 of total unrecognized compensation cost related to non-vested shares of restricted stock granted under the ESOSIP. The unrecognized compensation cost related to these non-vested shares of restricted stock is expected to be recognized over a weighted average period of 2.5 years.

As of March 26, 2011, there were 128,469 shares of the Company’s common stock reserved for issuance under the Directors’ Stock Compensation Plan and 4,617,900 shares of the Company’s common stock reserved for issuance in the aggregate under the Company’s other Plans.

(4) Income Taxes

The provisions for income taxes for the 2011 and 2010 thirteen-week periods were each based on an estimated full year combined effective income tax rate of approximately 38.2%, which was higher than the statutory federal income tax rate primarily as a result of state taxes, the meals and entertainment exclusion and non-deductible stock-based compensation.

(5) Earnings Per Share

Earnings per common share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of common shares outstanding, including outstanding restricted stock, and diluted earnings per share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of common shares outstanding, including outstanding restricted stock, plus the incremental shares that would have been outstanding upon the assumed exercise of all dilutive stock options.

The following table provides a reconciliation of the average number of common shares outstanding used to calculate earnings per 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):


	Thirteen Weeks Ended
	March 26,		March 27,
	2011		2010
Average number of common shares outstanding		47,870		50,207
Incremental shares from assumed exercises of stock options		30		111

Average number of common shares and common share equivalents outstanding		47,900		50,318

For the thirteen-week periods ended March 26, 2011 and March 27, 2010, there were 584,813 and 1,653,913 options outstanding, respectively, to purchase shares of common stock excluded from the calculation of diluted earnings per share attributable to Landstar System, Inc. and subsidiary because they were antidilutive.

(6) Additional Cash Flow Information

During the 2011 thirteen-week period, Landstar paid income taxes and interest of $1,269,000 and $838,000, respectively. During the 2010 thirteen-week period, Landstar paid income taxes and interest of $1,795,000 and $895,000, respectively. Landstar did not enter into any capital leases in the 2011 thirteen-week period. Landstar acquired operating property by entering into capital leases in the amount of $6,897,000 in the 2010 thirteen-week period.

(7) Segment Information

The following tables summarize information about Landstar’s reportable business segments as of and for the thirteen-week periods ended March 26, 2011 and March 27, 2010 (in thousands):


	Thirteen Weeks Ended
	March 26, 2011						March 27, 2010
	Transportation						Transportation
	Logistics		Insurance		Total		Logistics		Insurance		Total
External revenue	$	563,467	$	8,519	$	571,986	$	539,615	$	8,473	$	548,088
Investment income				528		528				285		285
Internal revenue				5,865		5,865				5,903		5,903
Operating income		28,183		5,909		34,092		22,527		5,768		28,295
Expenditures on long-lived assets		1,808				1,808		22,239				22,239
Goodwill		57,470				57,470		57,470				57,470

In the thirteen-week period ended March 26, 2011, there were no customers who accounted for 10 percent or more of the Company’s revenue. In the thirteen-week period ended March 27, 2010, there was one customer who accounted for approximately 14 percent of the Company’s revenue.

(8) Comprehensive Income

The following table includes the components of comprehensive income attributable to Landstar System, Inc. and subsidiary for the thirteen-week periods ended March 26, 2011 and March 27, 2010 (in thousands):


	Thirteen Weeks Ended
	March 26,		March 27,
	2011		2010
Net income attributable to Landstar System, Inc. and subsidiary	$	20,619	$	17,176
Unrealized holding gains on available-for-sale investments, net of income taxes		7		86
Foreign currency translation gains		206		100

Comprehensive income attributable to Landstar System, Inc. and subsidiary	$	20,832	$	17,362

The unrealized holding gain on available-for-sale investments during the 2011 thirteen-week period represents the mark-to-market adjustment of $11,000, net of related income taxes of $4,000. The unrealized holding gain on available-for-sale investments during the 2010 thirteen-week period represents the mark-to-market adjustment of $133,000, net of related income taxes of $47,000. The foreign currency translation gain represents the unrealized net gain on the translation of the financial statements of the Company’s Canadian operations. Accumulated other comprehensive income as reported as a component of equity at March 26, 2011 of $1,094,000 represents the unrealized net gain on the translation of the financial statements of the Company’s Canadian operations of $596,000 and the cumulative unrealized holding gains on available-for-sale investments, net of income taxes, of $498,000.

(9) Investments

Investments include investment-grade bonds and mortgage-backed securities having maturities of up to five years (the “bond portfolio”). Investments in the bond portfolio are reported as available-for-sale and are carried at fair value. 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 has performed an analysis of the nature of the unrealized losses on available-for-sale investments to determine whether such losses are other-than-temporary. Unrealized losses, representing the excess of the purchase price of an investment over its fair value as of the end of a 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, which are generally based on available market information. Transfers between levels are recognized as of the beginning of the period. Fair value of the bond portfolio was determined using Level 1 inputs related to U.S. Treasury obligations and money market investments and Level 2 inputs related to investment-grade corporate bonds, mortgage-backed securities and direct obligations of government agencies. Net unrealized gains on the investments in the bond portfolio were $771,000 and $760,000 at March 26, 2011 and December 25, 2010, respectively.

The amortized cost and fair market values of available-for-sale investments are as follows at March 26, 2011 and December 25, 2010 (in thousands):


			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
March 26, 2011

Money market investments	$	1,226	$	—	$	—	$	1,226
Mortgage-backed securities		3,425		85		4		3,506
Corporate bonds and direct obligations of government agencies		54,409		773		65		55,117
U.S. Treasury obligations		14,591		3		21		14,573


Total	$	73,651	$	861	$	90	$	74,422


			Gross		Gross		Fair
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
December 25, 2010

Money market investments	$	535	$	—	$	—	$	535
Mortgage-backed securities		3,458		64		8		3,514
Corporate bonds and direct obligations of government agencies		60,330		872		151		61,051
U.S. Treasury obligations		12,584		6		23		12,567


Total	$	76,907	$	942	$	182	$	77,667

For those available-for-sale investments with unrealized losses at March 26, 2011 and December 25, 2010, the following table summarizes the duration of the unrealized loss (in thousands):


	Less than 12 months				12 months or longer				Total
	Fair				Fair				Fair
	Market		Unrealized		Market		Unrealized		Market		Unrealized
	Value		Loss		Value		Loss		Value		Loss
March 26, 2011

Mortgage-backed securities	$	516	$	4	$	—	$	—	$	516	$	4
Corporate bonds and direct obligations of government agencies		9,801		65		—		—		9,801		65
U.S. Treasury obligations		774		21		—		—		774		21


Total	$	11,091	$	90	$	—	$	—	$	11,091	$	90


December 25, 2010

Mortgage-backed securities	$	225	$	8	$	—	$	—	$	225	$	8
Corporate bonds and direct obligations of government agencies		11,615		151		—		—		11,615		151
U.S. Treasury obligations		774		23		—		—		774		23


Total	$	12,614	$	182	$	—	$	—	$	12,614	$	182

(10) Commitments and Contingencies

Short-term investments include $30,756,000 in current maturities of investments held by the Company’s insurance segment at March 26, 2011. These short-term investments together with $19,427,000 of the non-current portion of investments included in other assets at March 26, 2011 provide collateral for the $45,165,000 of letters of credit issued to guarantee payment of insurance claims. As of March 26, 2011, Landstar also had $33,699,000 of letters of credit outstanding under the Company’s credit agreement.

As further described in periodic and current reports previously filed by the Company with the Securities and Exchange Commission (the “SEC”), the Company and certain of its subsidiaries (the “Defendants”) are defendants in a suit (the “Litigation”) brought in the United States District Court for the Middle District of Florida (the “District Court”) by the Owner-Operator Independent Drivers Association, Inc. (“OOIDA”) and four former BCO Independent Contractors (the “Named Plaintiffs” and, with OOIDA, the “Plaintiffs”) on behalf of all independent contractors who provide truck capacity to the Company and its subsidiaries under exclusive lease arrangements (the “BCO Independent Contractors”). The Plaintiffs allege that certain aspects of the Company’s motor carrier leases and related practices with its BCO Independent Contractors violate certain federal leasing regulations and seek injunctive relief, an unspecified amount of damages and attorneys’ fees.

On March 29, 2007, the District Court denied the request by Plaintiffs for injunctive relief, entered a judgment in favor of the Defendants and issued written orders setting forth its rulings related to the decertification of the plaintiff class and other important elements of the Litigation relating to liability, injunctive relief and monetary relief. The Plaintiffs filed an appeal with the United States Court of Appeals for the Eleventh Circuit (the “Appellate Court”) of certain of the District Court’s rulings in favor of the Defendants. The Defendants asked the Appellate Court to affirm such rulings and filed a cross-appeal with the Appellate Court with respect to certain other rulings of the District Court. On September 3, 2008, the Appellate Court issued its initial ruling. Each of the parties to the Litigation subsequently filed a petition with the Appellate Court seeking rehearing of the Appellate Court’s ruling.

On October 4, 2010, the Appellate Court denied each of the motions for rehearing, withdrew its initial ruling and substituted a new ruling in its place. The new ruling by the Appellate Court confirmed the absence of any violations alleged by the Plaintiffs of the federal leasing regulations with respect to the written terms of all leases currently in use between the Defendants and BCO Independent Contractors. In particular, the new ruling, among other things, held that (i) the Defendants are not prohibited by the applicable federal leasing regulations from charging administrative or other fees to BCO Independent Contractors in connection with voluntary programs offered by the Defendants through which a BCO Independent Contractor may purchase discounted products and services for a charge that is deducted against the compensation payable to the BCO Independent Contractor (a “Charge-back Deduction”), (ii) in the case of a Charge-back Deduction expressed as a flat-fee in the lease, the applicable federal leasing regulations do not require Defendants to do more than disclose the flat-fee Charge-back Deduction in the lease and follow up with settlement statements that explain the final amount charged back, (iii) the Plaintiffs are not entitled to restitution or disgorgement with respect to violations by Defendants of the applicable federal leasing regulations but instead may recover only actual damages, if any, which they sustained as a result of any such violations and (iv) the claims of BCO Independent Contractors may not be handled on a class action basis for purposes of determining the amount of actual damages, if any, they sustained as a result of any violations.

However, the new ruling of the Appellate Court reversed the District Court’s ruling that an old version of the lease formerly used by Defendants but not in use with any current BCO Independent Contractor complied with applicable disclosure requirements under the federal leasing regulations with respect to adjustments to compensation payable to BCO Independent Contractors on certain loads sourced from the U.S. Department of Defense. The Appellate Court then remanded the case to the District Court to permit the Plaintiffs to seek injunctive relief with respect to this violation of the federal leasing regulations and to hold an evidentiary hearing to give the Named Plaintiffs an opportunity to produce evidence of any damages they actually sustained as a result of such violation.

On March 8, 2011, the Plaintiffs filed a petition with the United States Supreme Court to seek to further appeal certain portions of the Appellate Court’s October 4, 2010 ruling. On March 23, 2011, the Plaintiffs requested that the United States Supreme Court consolidate such petition with a petition OOIDA intends to file to seek to further appeal a decision of the United States Court of Appeals for the Ninth Circuit on January 20, 2011, in a case not otherwise involving the Company, Owner-Operator Indep. Drivers Ass’n, Inc., et al v. Swift Transp. Co., Inc.

Although no assurances can be given with respect to the outcome of the Litigation, including the March 8, 2011 petition to the United States Supreme Court and any possible award of attorneys’ fees to the Plaintiffs, the Company believes that (i) no Plaintiff has sustained any actual damages as a result of any violations by the Defendants of the federal leasing regulations and (ii) injunctive relief, if any, that may be granted by the District Court on remand is unlikely to have a material adverse financial effect on the Company.

The Company is involved in certain other claims and pending litigation arising from the normal conduct of business. 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 other claims and pending litigation and that the ultimate outcome, after provisions therefore, 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.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the attached interim consolidated financial statements and notes thereto, and with the Company’s audited financial statements and notes thereto for the fiscal year ended December 25, 2010 and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2010 Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

The following is a “safe harbor” statement under the Private Securities Litigation Reform Act of 1995. Statements contained in this document that are not based on historical facts are “forward-looking statements.” This Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this Form 10-Q contain forward-looking statements, such as statements which relate to Landstar’s business objectives, plans, strategies and expectations. Terms such as “anticipates,” “believes,” “estimates,” “expects,” “plans,” “predicts,” “may,” “should,” “could,” “will,” the negative thereof and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: an increase in the frequency or severity of accidents or other claims; unfavorable development of existing accident claims; dependence on third party insurance companies; dependence on independent commission sales agents; dependence on third party capacity providers; substantial industry competition; disruptions or failures in our computer systems; changes in fuel taxes; status of independent contractors; a downturn in economic growth or growth in the transportation sector; acquired businesses; intellectual property; and other operational, financial or legal risks or uncertainties detailed in Landstar’s Form 10-K for the 2010 fiscal year, described in Item 1A “Risk Factors”, this report or in Landstar’s other Securities and Exchange Commission filings from time to time. These risks and uncertainties could cause actual results or events to differ materially from historical results or those anticipated. Investors should not place undue reliance on such forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Introduction

Landstar System, Inc. and its subsidiary, Landstar System Holdings, Inc. (together, referred to herein as “Landstar” or the “Company”), is a non-asset based provider of freight transportation services and supply chain solutions. The Company offers services to its customers across multiple transportation modes, with the ability to arrange for individual shipments of freight to enterprise-wide solutions to manage all of a customer’s transportation and logistics needs. Landstar provides services principally throughout the United States and to a lesser extent in Canada, and between the United States and Canada, Mexico and other countries around the world. The Company’s services emphasize safety, information coordination and customer service and are delivered through a network of independent commission sales agents and third party capacity providers linked together by a series of technological applications which are provided and coordinated by the Company. Landstar markets its freight transportation services and supply chain solutions primarily through independent commission sales agents and exclusively utilizes third party capacity providers to transport and store customers’ freight. The nature of the Company’s business is such that a significant portion of its operating costs varies directly with revenue.

Landstar markets its freight transportation services and supply chain solutions primarily through independent commission sales agents who enter into contractual arrangements with the Company and are responsible for locating freight, making that freight available to Landstar’s capacity providers and coordinating the transportation of the freight with customers and capacity providers. The Company’s third party capacity providers consist of independent contractors who provide truck capacity to the Company under exclusive lease arrangements (the “BCO Independent Contractors”), unrelated trucking companies who provide truck capacity to the Company under non-exclusive contractual arrangements (the “Truck Brokerage Carriers”), air cargo carriers, ocean cargo carriers, railroads and independent warehouse capacity providers (“Warehouse Capacity Owners”). The Company has contracts with all of the Class 1 domestic and Canadian railroads and certain short-line railroads and contracts with domestic and international airlines and ocean lines. Through this network of agents and capacity providers linked together by Landstar’s information technology systems, Landstar operates a transportation services and supply chain solutions business primarily throughout North America with revenue of $2.4 billion during the most recently completed fiscal year. The Company reports the results of two operating segments: the transportation logistics segment and the insurance segment.

The transportation logistics segment provides a wide range of transportation services and supply chain solutions. Transportation services offered by the Company include truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, project cargo and customs brokerage. Supply chain solutions are based on advanced technology solutions offered by the Company and include integrated multi-modal solutions, outsourced logistics, supply chain engineering and warehousing. Also, supply chain solutions can be delivered through a software-as-a-service model. In the Company’s 2009 fiscal third quarter, the Company completed the acquisition of two companies that provide customers with supply chain solutions. With respect to one of these companies, the Company completed the acquisition of A3 Integration, LLC and its subsidiaries through A3i Acquisition LLC, an entity in which the Company owned 100% of the non-voting, preferred interests and, from the date of acquisition to January 2011, 75% of the voting, common equity interests. In January 2011, the Company purchased the remaining 25% of the voting, common equity interests in A3i Acquisition, LLC (“A3i”). Industries serviced by the transportation logistics segment include automotive products, paper, lumber and building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, ammunition and explosives and military hardware. In addition, the transportation logistics segment provides transportation services to other transportation companies, including logistics and less-than-truckload service providers. Each of the independent commission sales agents has the opportunity to market all of the services provided by the transportation logistics segment.

Freight transportation services are typically charged to customers on a per shipment basis for the physical transportation of freight. Supply chain solution customers are generally charged fees for the services provided. Revenue recognized by the transportation logistics segment when providing capacity to customers to haul their freight is referred to herein as “transportation services revenue” and revenue for freight management services recognized on a fee-for-service basis is referred to herein as “transportation management fees.” During the thirteen weeks ended March 26, 2011, transportation services revenue hauled by BCO Independent Contractors, Truck Brokerage Carriers, rail intermodal, air cargo carriers and ocean cargo carriers represented 55%, 38%, 3%, 1%, and 2%, respectively, of the Company’s transportation logistics segment revenue. Transportation management fees represented 1% of the Company’s transportation logistics segment revenue in the thirteen-week period ended March 26, 2011.

The insurance segment is comprised of Signature Insurance Company, a wholly owned offshore insurance subsidiary, and Risk Management Claim Services, Inc. This segment provides risk and claims management services to certain of Landstar’s operating subsidiaries. In addition, it reinsures certain risks of the Company’s BCO Independent Contractors and provides certain property and casualty insurance directly to certain of Landstar’s operating subsidiaries. Revenue, representing premiums on reinsurance programs provided to the Company’s BCO Independent Contractors, at the insurance segment represented approximately 1% of the Company’s total revenue for the thirteen weeks ended March 26, 2011.

Changes in Financial Condition and Results of Operations

Management believes the Company’s success principally depends on its ability to generate freight through its network of independent commission sales agents and to efficiently deliver that freight utilizing third party capacity providers. Management believes the most significant factors to the Company’s success include increasing revenue, sourcing capacity and controlling costs.

While customer demand, which is subject to overall economic conditions, ultimately drives increases or decreases in revenue, the Company primarily relies on its independent commission sales agents to establish customer relationships and generate revenue opportunities. Management’s primary focus with respect to revenue growth is on revenue generated by independent commission sales agents who on an annual basis generate $1 million or more of Landstar revenue (“Million Dollar Agents”). Management believes future revenue growth is primarily dependent on its ability to increase both the revenue generated by Million Dollar Agents and the number of Million Dollar Agents through a combination of recruiting new agents and increasing the revenue opportunities generated by existing independent commission sales agents. During the 2010 fiscal year, 468 independent commission sales agents generated $1 million or more of Landstar revenue and thus qualified as Million Dollar Agents. During the 2010 fiscal year, the average revenue generated by a Million Dollar Agent was $4,576,000 and revenue generated by Million Dollar Agents in the aggregate represented 89% of consolidated Landstar revenue.

Management monitors business activity by tracking the number of loads (volume) and revenue per load by mode of transportation. Revenue per load can be influenced by many factors other than a change in price. Those factors include the average length of haul, freight type, special handling and equipment requirements and delivery time requirements. For shipments involving two or more modes of transportation, revenue is classified by the mode of transportation having the highest cost for the load. The following table summarizes this data by mode of transportation:


	Thirteen Weeks Ended
	March 26,		March 27,
	2011		2010
Revenue generated through (in thousands):

BCO Independent Contractors	$	306,894	$	286,141
Truck Brokerage Carriers		213,723		219,755
Rail intermodal		16,465		14,776
Ocean cargo carriers		13,833		9,135
Air cargo carriers		7,560		4,603
Other ⁽¹⁾		13,511		13,678

	$	571,986	$	548,088

Number of loads:


BCO Independent Contractors	192,040	197,750
Truck Brokerage Carriers	135,740	149,350
Rail intermodal	7,260	6,870
Ocean cargo carriers	1,830	1,460
Air cargo carriers	1,950	1,500

	338,820	356,930

Revenue per load:


BCO Independent Contractors	$	1,598	$	1,447
Truck Brokerage Carriers		1,575		1,471
Rail intermodal		2,268		2,151
Ocean cargo carriers		7,559		6,257
Air cargo carriers		3,877		3,069


(1)		Includes premium revenue generated by the insurance segment and warehousing revenue and transportation management fees generated by the transportation logistics segment.

Also critical to the Company’s success is its ability to secure capacity, particularly truck capacity, at rates that allow the Company to profitably transport customers’ freight. The following table summarizes available truck capacity providers:


	March 26, 2011		March 27, 2010
BCO Independent Contractors		7,697		7,800
Truck Brokerage Carriers:
Approved and active ⁽¹⁾		16,773		15,644
Other approved		9,347		9,674

		26,120		25,318

Total available truck capacity providers		33,817		33,118

Number of trucks provided by BCO Independent Contractors		8,226		8,384


⁽¹⁾		Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end.

The Company incurs costs that are directly related to the transportation of freight that include purchased transportation and commissions to agents. The Company incurs indirect costs associated with the transportation of freight that include other operating costs and insurance and claims. In addition, the Company incurs selling, general and administrative costs essential to administering its business operations. Management continually monitors all components of the costs incurred by the Company and establishes annual cost budgets which, in general, are used to benchmark costs incurred on a monthly basis.

Purchased transportation represents the amount a BCO Independent Contractor or other third party capacity provider is paid to haul freight. The amount of purchased transportation paid to a BCO Independent Contractor is primarily based on a contractually agreed-upon percentage of revenue generated by the haul. Purchased transportation paid to a Truck Brokerage Carrier is based on either a negotiated rate for each load hauled or a contractually agreed-upon rate. Purchased transportation paid to rail intermodal, air cargo or ocean cargo carriers is based on contractually agreed-upon fixed rates. Purchased transportation as a percentage of revenue for truck brokerage, rail intermodal and ocean cargo services is normally higher than that of BCO Independent Contractor and air cargo services. Purchased transportation is the largest component of costs and expenses and, on a consolidated basis, increases or decreases in proportion to the

revenue generated through BCO Independent Contractors and other third party capacity providers, transportation management fees and revenue from the insurance segment. Purchased transportation as a percent of revenue also increases or decreases in relation to the availability of truck brokerage capacity, the price of fuel on revenue hauled by Truck Brokerage Carriers and, to a lesser extent, on revenue hauled by railroads and air and ocean cargo carriers. Purchased transportation costs are recognized upon the completion of freight delivery.

Commissions to agents are based on contractually agreed-upon percentages of revenue or net revenue, defined as revenue less the cost of purchased transportation, or net revenue less a contractually agreed upon percentage of revenue retained by Landstar. Commissions to agents as a percentage of consolidated revenue will vary directly with fluctuations in the percentage of consolidated revenue generated by the various modes of transportation, transportation management fees and revenue from the insurance segment and with changes in net revenue on services provided by Truck Brokerage Carriers and rail intermodal, air cargo and ocean cargo carriers. Commissions to agents are recognized upon the completion of freight delivery.

The Company’s gross profit equals revenue less the cost of purchased transportation and commissions to agents. Gross profit divided by revenue is referred to as gross profit margin. The Company’s operating margin is defined as operating income divided by gross profit.

In general, gross profit margin on revenue hauled by BCO Independent Contractors represents a fixed percentage of revenue due to the nature of the contracts that pay a fixed percentage of revenue to both the BCO Independent Contractors and independent commission sales agents. For revenue hauled by Truck Brokerage Carriers, gross profit margin is either fixed or variable as a percent of revenue, depending on the contract with each individual independent commission sales agent. Under certain contracts with independent commission sales agents, the Company retains a fixed percentage of revenue and the agent retains the amount remaining less the cost of purchased transportation (the “retention contracts”). Gross profit margin on revenue hauled by rail, air cargo carriers, ocean cargo carriers and Truck Brokerage Carriers, other than those under retention contracts, is variable in nature as the Company’s contracts with independent commission sales agents provide commissions to agents at a contractually agreed upon percentage of net revenue. Approximately 68% of the Company’s revenue in the thirteen-week period ended March 26, 2011 had a fixed gross profit margin.

Maintenance costs for Company-provided trailing equipment, BCO Independent Contractor recruiting costs and bad debts from BCO Independent Contractors and independent commission sales agents are the largest components of other operating costs.

Potential liability associated with accidents in the trucking industry is severe and occurrences are unpredictable. For commercial trucking claims, Landstar retains liability up to $5,000,000 per occurrence. The Company also retains liability for each general liability claim up to $1,000,000, $250,000 for each workers’ compensation claim and up to $250,000 for each cargo claim. The Company’s exposure to liability associated with accidents incurred by Truck Brokerage Carriers, rail intermodal capacity providers and air cargo and ocean cargo carriers who transport freight on behalf of the Company is reduced by various factors including the extent to which they maintain their own insurance coverage. A material increase in the frequency or severity of accidents, cargo claims or workers’ compensation claims or the unfavorable development of existing claims could be expected to materially adversely affect Landstar’s results of operations.

Employee compensation and benefits account for over half of the Company’s selling, general and administrative costs.

Depreciation and amortization primarily relate to depreciation of trailing equipment, amortization of intangible assets and depreciation of management information services equipment.

The following table sets forth the percentage relationships of purchased transportation and commissions to agents, both being direct costs, to revenue and indirect costs as a percentage of gross profit for the periods indicated:


	Thirteen Weeks Ended
	March 26,			March 27,
	2011			2010
Revenue		100.0	%		100.0	%

Purchased transportation		75.4			76.1
Commissions to agents		7.7			7.4

Gross profit margin		16.9	%		16.5	%

Gross profit		100.0	%		100.0	%
Investment income		0.5			0.3
Indirect costs and expenses:
Other operating costs		8.2			8.3
Insurance and claims		11.7			13.6
Selling, general and administrative		38.6			40.7
Depreciation and amortization		6.6			6.4

Operating margin		35.4	%		31.3	%

THIRTEEN WEEKS ENDED MARCH 26, 2011 COMPARED TO THIRTEEN WEEKS ENDED MARCH 27, 2010

Revenue for the 2011 thirteen-week period was $571,986,000, an increase of $23,898,000, or 4%, compared to the 2010 thirteen-week period. Revenue increased $23,852,000, or 4%, at the transportation logistics segment. Included in the 2011 and 2010 thirteen-week periods was $4,823,000 and $4,064,000, respectively, of transportation management fees. The increase in revenue at the transportation logistics segment was primarily attributable to a higher revenue per load of approximately 10%, partly offset by a 5% decrease in the number of loads hauled.

Truck transportation revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers (together the “third-party truck capacity providers”), which represented 91% of total revenue for the thirteen-week period ended March 26, 2011, was $520,617,000, an increase of $14,721,000, or 3%, compared to the 2010 thirteen-week period. The number of loads hauled by third-party truck capacity providers in the 2011 thirteen-week period decreased 6% compared to the 2010 thirteen-week period, while revenue per load increased 9% over the same period. The decrease in the number of loads hauled by third-party truck capacity providers was primarily attributable to an anticipated reduction of freight hauled on behalf of one customer in the Company’s less-than-truckload substitute line haul service offering. Less-than-truckload substitute line haul revenue was $19,350,000 and $77,220,000 in the 2011 and 2010 thirteen-week periods, respectively. The increase in revenue per load on revenue hauled by third-party truck capacity providers was primarily attributable to tighter truck capacity in the U.S market during the thirteen weeks ended March 26, 2011. Fuel surcharges on Truck Brokerage Carrier revenue identified separately in billings to customers and included as a component of Truck Brokerage Carrier revenue were $19,308,000 and $18,959,000 in the 2011 and 2010 periods, respectively. Fuel surcharges billed to customers on revenue hauled by BCO Independent Contractors are excluded from revenue.

Transportation revenue hauled by rail intermodal, air cargo and ocean cargo carriers (together the “multimode capacity providers”), which represented 7% of total revenue for the thirteen-week period ended March 26, 2011, was $37,858,000, an increase of $9,344,000, or 33%, compared to the 2010 thirteen-week period. The number of loads hauled by multimode capacity providers in the 2011 thirteen-week period increased 12% compared to the 2010 thirteen-week period, while revenue per load increased 18% over the same period. The increase in revenue per load on revenue hauled by multimode capacity providers is influenced by many factors including the mode of transportation used, length of haul, complexity of freight, density of freight lanes and availability of capacity.

Purchased transportation was 75.4% and 76.1% of revenue in the 2011 and 2010 thirteen-week periods, respectively. The decrease in purchased transportation as a percentage of revenue was primarily attributable to reduced less-than-truckload substitute line-haul revenue, which typically has a higher rate of purchased transportation, partially offset by an increased rate of purchased transportation paid to Truck Brokerage Carriers. Commissions to agents were 7.7% of revenue in the 2011 period and 7.4% of revenue in the 2010 period. The increase in commissions to agents as a percentage of revenue was primarily attributable to the overall increase in net revenue on freight hauled by Truck Brokerage Carriers.

Investment income at the insurance segment was $528,000 and $285,000 in the 2011 and 2010 thirteen-week periods, respectively. The increase in investment income was primarily due to an increased average rate of return on investments held by the insurance segment in the 2011 period.

Other operating costs were 8.2% and 8.3% of gross profit in the 2011 and 2010 periods, respectively. The decrease in other operating costs as a percentage of gross profit was primarily attributable to the effect of increased gross profit, partially offset by increased trailing equipment maintenance costs in the 2011 period. Insurance and claims were 11.7% of gross profit in the 2011 period and 13.6% of gross profit in the 2010 period. The decrease in insurance and claims as a percentage of gross profit was primarily due to the effect of increased gross profit and a decreased cost of cargo claims in the 2011 period. Selling, general and administrative costs were 38.6% of gross profit in the 2011 period and 40.7% of gross profit in the 2010 period. The decrease in selling, general and administrative costs as a percentage

of gross profit was primarily attributable to the effect of increased gross profit and a lower provision for bonuses under the Company’s incentive compensation plan. Depreciation and amortization was 6.6% of gross profit in the 2011 period compared with 6.4% in the 2010 period. The increase in depreciation and amortization as a percentage of gross profit was primarily due to additions of company-owned trailing equipment which were purchased to replace older, fully depreciated trailing equipment.

The provisions for income taxes for the 2011 and 2010 thirteen-week periods were based on an estimated full year combined effective income tax rate of approximately 38.2%, which was higher than the statutory federal income tax rate primarily as a result of state taxes, the meals and entertainment exclusion and non-deductible stock compensation expense.

The net losses attributable to noncontrolling interest of $62,000 and $219,000 in the 2011 and 2010 thirteen-week periods, respectively, represent the noncontrolling investor’s 25 percent share of the net loss incurred by A3i through January 2011. The Company purchased the remaining 25 percent of A3i in January 2011.

Net income attributable to the Company was $20,619,000, or $0.43 per common share ($0.43 per diluted share), in the 2011 thirteen-week period. Net income attributable to the Company was $17,176,000, or $0.34 per common share ($0.34 per diluted share), in the 2010 thirteen-week period.

CAPITAL RESOURCES AND LIQUIDITY

Working capital and the ratio of current assets to current liabilities were $164,547,000 and 1.5 to 1, respectively, at March 26, 2011, compared with $142,571,000 and 1.5 to 1, respectively, at December 25, 2010. Landstar has historically operated with current ratios within the range of 1.5 to 1 to 2.0 to 1. Cash provided by operating activities was $16,604,000 in the 2011 thirteen-week period compared with $24,109,000 in the 2010 thirteen-week period. The decrease in cash flow provided by operating activities was primarily attributable to the timing of collections of trade receivables.

The Company paid $0.05 per share, or $2,394,000, in cash dividends during the thirteen-week period ended March 26, 2011. It is the intention of the Board of Directors to continue to pay a quarterly dividend. As of March 26, 2011, the Company may purchase up to an additional 722,662 shares of its common stock under its authorized stock purchase program. Long-term debt, including current maturities, was $115,588,000 at March 26, 2011, $6,023,000 lower than at December 25, 2010.

Equity was $262,437,000, or 69% of total capitalization (defined as long-term debt including current maturities plus equity), at March 26, 2011, compared to $250,967,000, or 67% of total capitalization, at December 25, 2010. The increase in equity was primarily a result of net income and the effect of the exercises of stock options during the period, partially offset by the purchase of the noncontrolling interest and dividends paid by the Company.

On June 27, 2008, Landstar entered into a credit agreement with a syndicate of banks and JPMorgan Chase Bank, N.A., as administrative agent (the “Credit Agreement”). The Credit Agreement, which expires on June 27, 2013, provides $225,000,000 of borrowing capacity in the form of a revolving credit facility, $75,000,000 of which may be utilized in the form of letter of credit guarantees.

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 defined in the Credit Agreement, and maintain a 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 in the event 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. The Credit Agreement provides for an event of default in the event, among other things, that a person or group acquires 25% or more of the outstanding capital stock of the Company or obtains power to elect a majority of the Company’s directors. None of these covenants are presently considered by management to be materially restrictive to the Company’s operations, capital resources or liquidity. The Company is currently in compliance with all of the debt covenants under the Credit Agreement.

At March 26, 2011, the Company had $80,000,000 in borrowings outstanding and $33,699,000 of letters of credit outstanding under the Credit Agreement. At March 26, 2011, there was $111,301,000 available for future borrowings under the Credit Agreement. In addition, the Company has $45,165,000 in letters of credit outstanding as collateral for insurance claims that are secured by investments

and cash equivalents totaling $50,183,000. Investments, all of which are carried at fair value, include investment-grade bonds and mortgage-backed securities having maturities of up to five years. Fair value of investments is based primarily on quoted market prices. See Notes to Consolidated Financial Statements for further discussion on measurement of fair value of investments.

Historically, the Company has generated sufficient operating cash flow to meet its debt service requirements, fund continued growth, both internal and through acquisitions, complete or execute share purchases of its common stock under authorized share purchase programs, pay dividends and meet working capital needs. As a non-asset based provider of transportation services and supply chain solutions, the Company’s annual capital requirements for operating property are generally for trailing equipment and management information services equipment. In addition, a significant portion of the trailing equipment used by the Company is provided by third party capacity providers, thereby reducing the Company’s capital requirements. During the 2011 thirteen-week period, the Company purchased $1,808,000 of operating property. Landstar anticipates purchasing approximately $42,000,000 in operating property, primarily new trailing equipment to replace older trailing equipment and information technology equipment, during the remainder of fiscal year 2011 either by purchase or lease financing.

Management believes that cash flow from operations combined with the Company’s borrowing capacity under the Credit Agreement will be adequate to meet Landstar’s debt service requirements, fund continued growth, both internal and through acquisitions, pay dividends, complete the authorized share purchase programs and meet working capital needs.

LEGAL MATTERS

injunctive relief with respect to this violation of the federal leasing regulations and to hold an evidentiary hearing to give the Named Plaintiffs an opportunity to produce evidence of any damages they actually sustained as a result of such violation.

The Company is involved in certain other claims and pending litigation arising from the normal conduct of business. 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 other claims and pending litigation and that the ultimate outcome, after provisions in respect thereof, 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.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The allowance for doubtful accounts for both trade and other receivables represents management’s estimate of the amount of outstanding receivables that will not be collected. Historically, management’s estimates for uncollectible receivables have been materially correct. Although management believes the amount of the allowance for both trade and other receivables at March 26, 2011 is appropriate, a prolonged period of low or no economic growth may adversely affect the collection of these receivables. Conversely, a more robust economic environment may result in the realization of some portion of the estimated uncollectible receivables.

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. During the 2011 and 2010 thirteen-week periods, insurance and claims costs included $722,000 and $418,000, respectively, of unfavorable adjustments to prior years’ claims estimates. It is reasonably likely that the ultimate outcome of settling all outstanding claims will be more or less than the estimated claims reserve at March 26, 2011.

The Company utilizes certain income tax planning strategies to reduce its overall cost of income taxes. Upon audit, it is possible that certain strategies might be disallowed resulting in an increased liability for income taxes. Certain of these tax planning strategies result in a level of uncertainty as to whether the related tax positions taken by the Company would result in a recognizable benefit. The Company has provided for its estimated exposure attributable to such tax positions due to the corresponding level of uncertainty with respect to the amount of income tax benefit that may ultimately be realized. Management believes that the provision for liabilities resulting from the uncertainty in certain income tax positions is appropriate. To date, the Company has not experienced an examination by governmental revenue authorities that would lead management to believe that the Company’s past provisions for exposures related to the uncertainty of such income tax positions are not appropriate.

The Company tests for impairment of goodwill at least annually, typically in the fourth quarter, based on a two-step impairment test. The first step compares the fair value of each reporting unit with its carrying amount, including goodwill. Fair value of each reporting unit is estimated using a discounted cash flow model and market approach. The model includes a number of significant assumptions and estimates including future cash flows and discount rates. If the carrying amount exceeds fair value under the first step of the impairment test, then the second step is performed to measure the amount of any impairment loss. Only the first step of the impairment test was required in 2010 as the estimated fair value of the reporting units significantly exceeded carrying value.

Significant variances from management’s estimates for the amount of uncollectible receivables, the ultimate resolution of self-insured claims, the provision for uncertainty in income tax positions and impairment of goodwill can all be expected to positively or negatively

affect Landstar’s earnings in a given quarter or year. However, management believes that the ultimate resolution of these items, given a range of reasonably likely outcomes, will not significantly affect the long-term financial condition of Landstar or its ability to fund its continuing operations.

EFFECTS OF INFLATION

Management does not believe inflation has had a material impact on the results of operations or financial condition of Landstar in the past five years. However, inflation in excess of historic trends might have an adverse effect on the Company’s results of operations.

SEASONALITY

Landstar’s operations are subject to seasonal trends common to the trucking industry. Results of operations for the quarter ending in March are typically lower than the quarters ending June, September and December.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to changes in interest rates as a result of its financing activities, primarily its borrowings on the revolving credit facility, and investing activities with respect to investments held by the insurance segment.

Borrowings under the Credit Agreement bear interest at rates equal to, at the option of the Company, either (i) the greater of (a) the prime rate as publicly announced from time to time by JPMorgan Chase Bank, N.A. and (b) the federal funds effective rate plus .5%, or, (ii) the rate at the time offered to JPMorgan Chase Bank, N.A. in the Eurodollar market for amounts and periods comparable to the relevant loan plus, in either case, a margin that is determined based on the level of the Company’s Leverage Ratio, as defined in the Credit Agreement. As of both March 26, 2011 and December 25, 2010, the weighted average interest rate on borrowings outstanding was 1.14%. During the first quarter of 2011, the average outstanding balance under the Credit Agreement was approximately $80,741,000. Assuming that debt levels on the Credit Agreement remain at $80,000,000, the balance at March 26, 2011, a hypothetical increase of 100 basis points in current rates provided for under the Credit Agreement is estimated to result in an increase in interest expense of $800,000 on an annualized basis. Based on the borrowing rates in the Credit Agreement and the repayment terms, the fair value of the outstanding borrowings as of March 26, 2011 was estimated to approximate carrying value.

Long-term investments, all of which are available-for-sale and are carried at fair value, include investment-grade bonds and mortgage-backed securities having maturities of up to five years. Assuming that the long-term portion of investments remains at $43,666,000, the balance at March 26, 2011, a hypothetical increase or decrease in interest rates of 100 basis points would not have a material impact on future earnings on an annualized basis. Short-term investments consist of short-term investment-grade instruments and the current maturities of investment-grade bonds and mortgage-backed securities. Accordingly, any future interest rate risk on these short-term investments would not be material.

Assets and liabilities of the Company’s Canadian operations are translated from their functional currency to U.S. dollars using exchange rates in effect at the balance sheet date and revenue and expense accounts are translated at average monthly exchange rates during the period. Adjustments resulting from the translation process are included in accumulated other comprehensive income. Transactional gains and losses arising from receivable and payable balances, including intercompany balances, in the normal course of business that are denominated in a currency other than the functional currency of the operation are recorded in the statements of income when they occur. The net assets held at the Company’s Canadian subsidiary at March 26, 2011 were, as translated to U.S. dollars, less than 1% of total consolidated net assets. Accordingly, any translation gain or loss related to the Canadian operation would not be material.

Item 4. Controls and Procedures

As of the end of the period covered by this quarterly report on Form 10-Q, an evaluation was carried out, under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended). Based on that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of March 26, 2011, to provide reasonable assurance that information required to be disclosed by the Company in reports that it filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

There were no significant changes in the Company’s internal controls over financial reporting during the Company’s fiscal quarter ended March 26, 2011 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In designing and evaluating controls and procedures, Company management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because of the inherent limitation in any control system, no evaluation or implementation of a control system can provide complete assurance that all control issues and all possible instances of fraud have been or will be detected.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in certain other claims and pending litigation arising from the normal conduct of business. 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 other claims and pending litigation and that the ultimate outcome, after provisions in respect thereof, 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.

Item 1A. Risk Factors

For a discussion identifying 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 for the fiscal year ended December 25, 2010, 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.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Company

The Company did not purchase any shares of its common stock during the period from December 26, 2010 to March 26, 2011, the Company’s first fiscal quarter. On August 23, 2010, Landstar System, Inc. announced that it had been authorized by its Board of Directors to purchase up to 2,000,000 shares of its common stock from time to time in the open market and in privately negotiated transactions. As of March 26, 2011, the Company may purchase 722,662 shares of its common stock under this authorization. No specific expiration date has been assigned to the August 23, 2010 authorization.

During the thirteen-week period ended March 26, 2011, Landstar paid dividends as follows:

Dividend Amount

Declaration

Record

Payment

per share

Date

$0.05

January 25, 2011

February 14, 2011

March 11, 2011

On June 27, 2008, Landstar entered into a credit agreement with a syndicate of banks and JPMorgan Chase Bank, N.A., as administrative agent (the “Credit Agreement”). 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 in the event 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.

Item 3. Defaults Upon Senior Securities

None.

Item 5. Other Information

None.

Item 6. Exhibits

The exhibits listed on the Exhibit Index are furnished as part of this quarterly report on Form 10-Q.

EXHIBIT INDEX

Registrant’s Commission File No.: 0-21238


Exhibit No.		Description
(31)		Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002:

31.1 *		Chief Executive Officer certification, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 *		Chief Financial Officer certification, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(32)		Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002:

32.1 **		Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 **		Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS**		XBRL Instance Document

101.SCH**		XBRL Schema Document

101.CAL**		XBRL Calculation Linkbase Document

101.LAB**		XBRL Labels Linkbase Document

101.PRE**		XBRL Presentation Linkbase Document

101.DEF**		XBRL Definition Linkbase Document


*		Filed herewith

**		Furnished herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	LANDSTAR SYSTEM, INC.
Date: April 29, 2011	/s/ Henry H. Gerkens
	Henry H. Gerkens
	Chairman, President and Chief Executive Officer


Date: April 29, 2011	/s/ James B. Gattoni
	James B. Gattoni
	Vice President and Chief Financial Officer

EX-31.1 2 g26731exv31w1.htm EX-31.1 exv31w1

EXHIBIT 31.1

SECTION 302 CERTIFICATION

I, Henry H. Gerkens, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Landstar System, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 29, 2011



	/s/ Henry H. Gerkens
	Henry H. Gerkens
	Chairman, President and Chief Executive Officer

EX-31.2 3 g26731exv31w2.htm EX-31.2 exv31w2

EXHIBIT 31.2

SECTION 302 CERTIFICATION

I, James B. Gattoni, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Landstar System, Inc.;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 29, 2011



	/s/ James B. Gattoni
	James B. Gattoni
	Vice President and Chief Financial Officer

EX-32.1 4 g26731exv32w1.htm EX-32.1 exv32w1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Landstar System, Inc. (the “Company”) on Form 10-Q for the period ending March 26, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Henry H. Gerkens, Chairman, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 29, 2011



	/s/ Henry H. Gerkens
	Henry H. Gerkens
	Chairman, President and Chief Executive Officer

EX-32.2 5 g26731exv32w2.htm EX-32.2 exv32w2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Landstar System, Inc. (the “Company”) on Form 10-Q for the period ending March 26, 2011, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James B. Gattoni, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: April 29, 2011



	/s/ James B. Gattoni
	James B. Gattoni
	Vice President and Chief Financial Officer

EX-101.INS 7 lstr-20110326.xml EX-101 INSTANCE DOCUMENT 0000853816 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2011-03-26 0000853816 us-gaap:AdditionalPaidInCapitalMember 2011-03-26 0000853816 us-gaap:RetainedEarningsMember 2011-03-26 0000853816 us-gaap:NoncontrollingInterestMember 2010-12-25 0000853816 us-gaap:AdditionalPaidInCapitalMember 2010-12-25 0000853816 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-12-25 0000853816 us-gaap:RetainedEarningsMember 2010-12-25 0000853816 us-gaap:CommonStockMember 2011-03-26 0000853816 us-gaap:TreasuryStockMember 2011-03-26 0000853816 us-gaap:TreasuryStockMember 2010-12-25 0000853816 us-gaap:CommonStockMember 2010-12-25 0000853816 us-gaap:NoncontrollingInterestMember 2010-12-26 2011-03-26 0000853816 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-12-26 2011-03-26 0000853816 us-gaap:RetainedEarningsMember 2010-12-26 2011-03-26 0000853816 2010-03-27 0000853816 2009-12-26 0000853816 2011-03-26 0000853816 2010-12-25 0000853816 us-gaap:CommonStockMember 2010-12-26 2011-03-26 0000853816 us-gaap:TreasuryStockMember 2010-12-26 2011-03-26 0000853816 us-gaap:AdditionalPaidInCapitalMember 2010-12-26 2011-03-26 0000853816 2009-12-27 2010-03-27 0000853816 2010-06-26 0000853816 2011-04-18 0000853816 2010-12-26 2011-03-26 iso4217:USD xbrli:shares xbrli:shares iso4217:USD

<div align="left" style="font-family: 'Times New Roman',Times,serif">   <div align="left"> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">(1) Noncontrolling Interest </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          In the Company’s 2009 fiscal third quarter, the Company completed the acquisition of A3 Integration, LLC and its subsidiaries through A3i Acquisition LLC, an entity in which the Company owned 100% of the non-voting, preferred interests and, from the date of acquisition to January 2011, 75% of the voting, common equity interests. A subsidiary of the Company purchased the remaining 25% of the voting, common equity interests in A3i Acquisition, LLC in January 2011. </div> </div>

<div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(2) Significant Accounting Policies </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Financial Instruments</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The Company’s financial instruments include cash equivalents, short and long term investments, trade and other accounts receivable, accounts payable, other accrued liabilities, current and non-current insurance claims and long term debt plus current maturities (“Debt”). The carrying value of cash equivalents, trade and other accounts receivable, accounts payable, current insurance claims and other accrued liabilities approximate fair value as the assets and liabilities are short term in nature. Short and long term investments are carried at fair value as further described in the “Investments” footnote below. The carrying value of non-current insurance claims approximate fair value as the Company generally has the ability to, but is not required to, settle claims in a short term. The Company’s Debt includes borrowings under the Company’s revolving credit facility plus borrowings relating to capital lease obligations used to finance trailing equipment. The interest rates on borrowings under the revolving credit facility are typically tied to short-term LIBOR rates that adjust monthly and, as such, carrying value approximates fair value. Interest rates on borrowings under capital leases approximate the interest rates that would currently be available to the Company under similar terms and, as such, carrying value approximates fair value. </div> </div>

<div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(3) Share-based Payment Arrangements </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          As of March 26, 2011, the Company had an employee stock option plan (the “1993 Plan”), an employee stock option and stock incentive plan (the “ESOSIP”), and a stock compensation plan for members of its Board of Directors (the “Directors Stock Compensation Plan”) (each, a “Plan,” and collectively, the “Plans”). No further grants can be made under the 1993 Plan as its term for granting stock options has expired. Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 26,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 27,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total cost of the Plans during the period </div></td> <td> </td> <td align="left">$</td> <td align="right">1,205</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,185</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Amount of related income tax benefit recognized during the period </div></td> <td> </td> <td> </td> <td align="right">305</td> <td> </td> <td> </td> <td> </td> <td align="right">299</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net cost of the Plans during the period </div></td> <td> </td> <td align="left">$</td> <td align="right">900</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">886</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of each option grant on its grant date was calculated using the Black-Scholes option pricing model with the following weighted average assumptions for grants made in the 2011 and 2010 thirteen-week periods: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected volatility </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">35.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">37.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected dividend yield </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">0.450</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">0.400</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Risk-free interest rate </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.75</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">2.50</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected lives (in years) </div></td> <td> </td> <td> </td> <td align="right">4.0</td> <td> </td> <td> </td> <td> </td> <td align="right">4.2</td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The Company utilizes historical data, including exercise patterns and employee departure behavior, in estimating the term that options will be outstanding. Expected volatility was based on historical volatility and other factors, such as expected changes in volatility arising from planned changes to the Company’s business, if any. The risk-free interest rate was based on the yield of zero coupon U.S. Treasury bonds for terms that approximated the terms of the options granted. The weighted average grant date fair value of stock options granted during the thirteen-week periods ended March 26, 2011 and March 27, 2010 was $12.05 and $11.98, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The following table summarizes information regarding the Company’s stock options granted under the Plans: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Number of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Exercise Price</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Contractual</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Aggregate Intrinsic</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Options</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>per Share</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Term (years)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value (000s)</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options outstanding at December 25, 2010 </div></td> <td> </td> <td> </td> <td align="right">2,295,831</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">39.73</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">271,000</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">41.81</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Exercised </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(69,348</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">37.40</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(112,500</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">41.65</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options outstanding at March 26, 2011 </div></td> <td> </td> <td> </td> <td align="right">2,384,983</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">39.94</td> <td> </td> <td> </td> <td> </td> <td align="right">6.7</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,799</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Options exercisable at March 26, 2011 </div></td> <td> </td> <td> </td> <td align="right">1,142,950</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">39.38</td> <td> </td> <td> </td> <td> </td> <td align="right">5.4</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,302</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The total intrinsic value of stock options exercised during the thirteen-week periods ended March 26, 2011 and March 27, 2010 was $410,000 and $532,000, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          As of March 26, 2011, there was $11,624,000 of total unrecognized compensation cost related to non-vested stock options granted under the Plans. The unrecognized compensation cost related to these non-vested options is expected to be recognized over a weighted average period of 3.2 years. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The fair value of each share of non-vested restricted stock issued under the Plans is based on the fair value of a share of the Company’s common stock on the date of grant. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The following table summarizes information regarding the Company’s non-vested restricted stock under the Plans: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Number of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Grant Date</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shares</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Non-vested restricted stock outstanding at December 25, 2010 </div></td> <td> </td> <td> </td> <td align="right">29,854</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">39.49</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">6,900</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">41.43</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Vested </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,772</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">39.10</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,938</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">37.13</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Non-vested restricted stock outstanding at March 26, 2011 </div></td> <td> </td> <td> </td> <td align="right">31,044</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">40.18</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          As of March 26, 2011, there was $959,000 of total unrecognized compensation cost related to non-vested shares of restricted stock granted under the ESOSIP. The unrecognized compensation cost related to these non-vested shares of restricted stock is expected to be recognized over a weighted average period of 2.5 years. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">          As of March 26, 2011, there were 128,469 shares of the Company’s common stock reserved for issuance under the Directors’ Stock Compensation Plan and 4,617,900 shares of the Company’s common stock reserved for issuance in the aggregate under the Company’s other Plans. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(4) Income Taxes </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The provisions for income taxes for the 2011 and 2010 thirteen-week periods were each based on an estimated full year combined effective income tax rate of approximately 38.2%, which was higher than the statutory federal income tax rate primarily as a result of state taxes, the meals and entertainment exclusion and non-deductible stock-based compensation. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(5) Earnings Per Share </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Earnings per common share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of common shares outstanding, including outstanding restricted stock, and diluted earnings per share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of common shares outstanding, including outstanding restricted stock, plus the incremental shares that would have been outstanding upon the assumed exercise of all dilutive stock options. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table provides a reconciliation of the average number of common shares outstanding used to calculate earnings per 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): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 26,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 27,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Average number of common shares outstanding </div></td> <td> </td> <td> </td> <td align="right">47,870</td> <td> </td> <td> </td> <td> </td> <td align="right">50,207</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Incremental shares from assumed exercises of stock options </div></td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td align="right">111</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Average number of common shares and common share equivalents outstanding </div></td> <td> </td> <td> </td> <td align="right">47,900</td> <td> </td> <td> </td> <td> </td> <td align="right">50,318</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     For the thirteen-week periods ended March 26, 2011 and March 27, 2010, there were 584,813 and 1,653,913 options outstanding, respectively, to purchase shares of common stock excluded from the calculation of diluted earnings per share attributable to Landstar System, Inc. and subsidiary because they were antidilutive. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(6) Additional Cash Flow Information </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     During the 2011 thirteen-week period, Landstar paid income taxes and interest of $1,269,000 and $838,000, respectively. During the 2010 thirteen-week period, Landstar paid income taxes and interest of $1,795,000 and $895,000, respectively. Landstar did not enter into any capital leases in the 2011 thirteen-week period. Landstar acquired operating property by entering into capital leases in the amount of $6,897,000 in the 2010 thirteen-week period. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(7) Segment Information </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following tables summarize information about Landstar’s reportable business segments as of and for the thirteen-week periods ended March 26, 2011 and March 27, 2010 (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="28%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>March 26, 2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>March 27, 2010</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Transportation</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Transportation</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Logistics</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Insurance</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Logistics</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Insurance</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">External revenue </div></td> <td> </td> <td align="left">$</td> <td align="right">563,467</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8,519</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">571,986</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">539,615</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8,473</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">548,088</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Investment income </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">528</td> <td> </td> <td> </td> <td> </td> <td align="right">528</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">285</td> <td> </td> <td> </td> <td> </td> <td align="right">285</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Internal revenue </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">5,865</td> <td> </td> <td> </td> <td> </td> <td align="right">5,865</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">5,903</td> <td> </td> <td> </td> <td> </td> <td align="right">5,903</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Operating income </div></td> <td> </td> <td> </td> <td align="right">28,183</td> <td> </td> <td> </td> <td> </td> <td align="right">5,909</td> <td> </td> <td> </td> <td> </td> <td align="right">34,092</td> <td> </td> <td> </td> <td> </td> <td align="right">22,527</td> <td> </td> <td> </td> <td> </td> <td align="right">5,768</td> <td> </td> <td> </td> <td> </td> <td align="right">28,295</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expenditures on long-lived assets </div></td> <td> </td> <td> </td> <td align="right">1,808</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">1,808</td> <td> </td> <td> </td> <td> </td> <td align="right">22,239</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">22,239</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">57,470</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">57,470</td> <td> </td> <td> </td> <td> </td> <td align="right">57,470</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">57,470</td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In the thirteen-week period ended March 26, 2011, there were no customers who accounted for 10 percent or more of the Company’s revenue. In the thirteen-week period ended March 27, 2010, there was one customer who accounted for approximately 14 percent of the Company’s revenue. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(8) Comprehensive Income </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table includes the components of comprehensive income attributable to Landstar System, Inc. and subsidiary for the thirteen-week periods ended March 26, 2011 and March 27, 2010 (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 26,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 27,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income attributable to Landstar System, Inc. and subsidiary </div></td> <td> </td> <td align="left">$</td> <td align="right">20,619</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">17,176</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized holding gains on available-for-sale investments, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">86</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation gains </div></td> <td> </td> <td> </td> <td align="right">206</td> <td> </td> <td> </td> <td> </td> <td align="right">100</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income attributable to Landstar System, Inc. and subsidiary </div></td> <td> </td> <td align="left">$</td> <td align="right">20,832</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">17,362</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The unrealized holding gain on available-for-sale investments during the 2011 thirteen-week period represents the mark-to-market adjustment of $11,000, net of related income taxes of $4,000. The unrealized holding gain on available-for-sale investments during the 2010 thirteen-week period represents the mark-to-market adjustment of $133,000, net of related income taxes of $47,000. The foreign currency translation gain represents the unrealized net gain on the translation of the financial statements of the Company’s Canadian operations. Accumulated other comprehensive income as reported as a component of equity at March 26, 2011 of $1,094,000 represents the unrealized net gain on the translation of the financial statements of the Company’s Canadian operations of $596,000 and the cumulative unrealized holding gains on available-for-sale investments, net of income taxes, of $498,000. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(9) Investments </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Investments include investment-grade bonds and mortgage-backed securities having maturities of up to five years (the “bond portfolio”). Investments in the bond portfolio are reported as available-for-sale and are carried at fair value. 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 has performed an analysis of the nature of the unrealized losses on available-for-sale investments to determine whether such losses are other-than-temporary. Unrealized losses, representing the excess of the purchase price of an investment over its fair value as of the end of a 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, which are generally based on available market information. Transfers between levels are recognized as of the beginning of the period. Fair value of the bond portfolio was determined using Level 1 inputs related to U.S. Treasury obligations and money market investments and Level 2 inputs related to investment-grade corporate bonds, mortgage-backed securities and direct obligations of government agencies. Net unrealized gains on the investments in the bond portfolio were $771,000 and $760,000 at March 26, 2011 and December 25, 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The amortized cost and fair market values of available-for-sale investments are as follows at March 26, 2011 and December 25, 2010 (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>March 26, 2011</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Money market investments </div></td> <td> </td> <td align="left">$</td> <td align="right">1,226</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,226</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">3,425</td> <td> </td> <td> </td> <td> </td> <td align="right">85</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">3,506</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate bonds and direct obligations of government agencies </div></td> <td> </td> <td> </td> <td align="right">54,409</td> <td> </td> <td> </td> <td> </td> <td align="right">773</td> <td> </td> <td> </td> <td> </td> <td align="right">65</td> <td> </td> <td> </td> <td> </td> <td align="right">55,117</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Treasury obligations </div></td> <td> </td> <td> </td> <td align="right">14,591</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> <td> </td> <td> </td> <td align="right">14,573</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">73,651</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">861</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">90</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">74,422</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>December 25, 2010</b>   </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Money market investments </div></td> <td> </td> <td align="left">$</td> <td align="right">535</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">535</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">3,458</td> <td> </td> <td> </td> <td> </td> <td align="right">64</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">3,514</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate bonds and direct obligations of government agencies </div></td> <td> </td> <td> </td> <td align="right">60,330</td> <td> </td> <td> </td> <td> </td> <td align="right">872</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> <td> </td> <td> </td> <td align="right">61,051</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Treasury obligations </div></td> <td> </td> <td> </td> <td align="right">12,584</td> <td> </td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">12,567</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">76,907</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">942</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">182</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">77,667</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     For those available-for-sale investments with unrealized losses at March 26, 2011 and December 25, 2010, the following table summarizes the duration of the unrealized loss (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="28%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Less than 12 months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 months or longer</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000"><b>Unrealized</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Loss</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Loss</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Loss</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>March 26, 2011</b>   </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td align="left">$</td> <td align="right">516</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">516</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate bonds and direct obligations of government agencies </div></td> <td> </td> <td> </td> <td align="right">9,801</td> <td> </td> <td> </td> <td> </td> <td align="right">65</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">9,801</td> <td> </td> <td> </td> <td> </td> <td align="right">65</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Treasury obligations </div></td> <td> </td> <td> </td> <td align="right">774</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">774</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">11,091</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">90</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,091</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">90</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>December 25, 2010</b>   </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td align="left">$</td> <td align="right">225</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">225</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate bonds and direct obligations of government agencies </div></td> <td> </td> <td> </td> <td align="right">11,615</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">11,615</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Treasury obligations </div></td> <td> </td> <td> </td> <td align="right">774</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">774</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">12,614</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">182</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">12,614</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">182</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(10) Commitments and Contingencies </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Short-term investments include $30,756,000 in current maturities of investments held by the Company’s insurance segment at March 26, 2011. These short-term investments together with $19,427,000 of the non-current portion of investments included in other assets at March 26, 2011 provide collateral for the $45,165,000 of letters of credit issued to guarantee payment of insurance claims. As of March 26, 2011, Landstar also had $33,699,000 of letters of credit outstanding under the Company’s credit agreement. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As further described in periodic and current reports previously filed by the Company with the Securities and Exchange Commission (the “SEC”), the Company and certain of its subsidiaries (the “Defendants”) are defendants in a suit (the “Litigation”) brought in the United States District Court for the Middle District of Florida (the “District Court”) by the Owner-Operator Independent Drivers Association, Inc. (“OOIDA”) and four former BCO Independent Contractors (the “Named Plaintiffs” and, with OOIDA, the “Plaintiffs”) on behalf of all independent contractors who provide truck capacity to the Company and its subsidiaries under exclusive lease arrangements (the “BCO Independent Contractors”). The Plaintiffs allege that certain aspects of the Company’s motor carrier leases and related practices with its BCO Independent Contractors violate certain federal leasing regulations and seek injunctive relief, an unspecified amount of damages and attorneys’ fees. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 29, 2007, the District Court denied the request by Plaintiffs for injunctive relief, entered a judgment in favor of the Defendants and issued written orders setting forth its rulings related to the decertification of the plaintiff class and other important elements of the Litigation relating to liability, injunctive relief and monetary relief. The Plaintiffs filed an appeal with the United States Court of Appeals for the Eleventh Circuit (the “Appellate Court”) of certain of the District Court’s rulings in favor of the Defendants. The Defendants asked the Appellate Court to affirm such rulings and filed a cross-appeal with the Appellate Court with respect to certain other rulings of the District Court. On September 3, 2008, the Appellate Court issued its initial ruling. Each of the parties to the Litigation subsequently filed a petition with the Appellate Court seeking rehearing of the Appellate Court’s ruling. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 4, 2010, the Appellate Court denied each of the motions for rehearing, withdrew its initial ruling and substituted a new ruling in its place. The new ruling by the Appellate Court confirmed the absence of any violations alleged by the Plaintiffs of the federal leasing regulations with respect to the written terms of all leases currently in use between the Defendants and BCO Independent Contractors. In particular, the new ruling, among other things, held that (i) the Defendants are not prohibited by the applicable federal leasing regulations from charging administrative or other fees to BCO Independent Contractors in connection with voluntary programs offered by the Defendants through which a BCO Independent Contractor may purchase discounted products and services for a charge that is deducted against the compensation payable to the BCO Independent Contractor (a “Charge-back Deduction”), (ii) in the case of a Charge-back Deduction expressed as a flat-fee in the lease, the applicable federal leasing regulations do not require Defendants to do more than disclose the flat-fee Charge-back Deduction in the lease and follow up with settlement statements that explain the final amount charged back, (iii) the Plaintiffs are not entitled to restitution or disgorgement with respect to violations by Defendants of the applicable federal leasing regulations but instead may recover only actual damages, if any, which they sustained as a result of any such violations and (iv) the claims of BCO Independent Contractors may not be handled on a class action basis for purposes of determining the amount of actual damages, if any, they sustained as a result of any violations. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     However, the new ruling of the Appellate Court reversed the District Court’s ruling that an old version of the lease formerly used by Defendants but not in use with any current BCO Independent Contractor complied with applicable disclosure requirements under the federal leasing regulations with respect to adjustments to compensation payable to BCO Independent Contractors on certain loads sourced from the U.S. Department of Defense. The Appellate Court then remanded the case to the District Court to permit the Plaintiffs to seek injunctive relief with respect to this violation of the federal leasing regulations and to hold an evidentiary hearing to give the Named Plaintiffs an opportunity to produce evidence of any damages they actually sustained as a result of such violation. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 8, 2011, the Plaintiffs filed a petition with the United States Supreme Court to seek to further appeal certain portions of the Appellate Court’s October 4, 2010 ruling. On March 23, 2011, the Plaintiffs requested that the United States Supreme Court consolidate such petition with a petition OOIDA intends to file to seek to further appeal a decision of the United States Court of Appeals for the Ninth Circuit on January 20, 2011, in a case not otherwise involving the Company, <i>Owner-Operator Indep. Drivers Ass’n, Inc., et al v. Swift Transp. Co., Inc.</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Although no assurances can be given with respect to the outcome of the Litigation, including the March 8, 2011 petition to the United States Supreme Court and any possible award of attorneys’ fees to the Plaintiffs, the Company believes that (i) no Plaintiff has sustained any actual damages as a result of any violations by the Defendants of the federal leasing regulations and (ii) injunctive relief, if any, that may be granted by the District Court on remand is unlikely to have a material adverse financial effect on the Company. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company is involved in certain other claims and pending litigation arising from the normal conduct of business. 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 other claims and pending litigation and that the ultimate outcome, after provisions therefore, 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. </div> </div>

false --12-31 Q1 2011 2011-03-26 10-Q 0000853816 47882197 Yes Large Accelerated Filer 2003998000 LANDSTAR SYSTEM INC No Yes 40408000 44171000 -111000 -71000 -41000 1000 18987 1057 40215000 43027000 31468000 31627000 417201000 431378000

137297000

160704000

137830000

142330000

881000

1094000

169268000

161543000

1205000

5511000

5018000

5324000

5525000

55000

683882000

714435000

420917000

466635000

24877000

23407000

548088000

571986000

85719000

82493000

44706000

45230000

-3226000

524000

0.045

0.05

0.01

160000000

66535169

66554156

665000

666000

520078000

538422000

-805000

-1068000

23662000

22573000

5792000

6399000

2394000

0.34

0.43

0.34

0.43

100000

206000

9000

-181000

-20000

-63000

57470000

27441000

33264000

10484000

12707000

12475000

23407000

-3182000

2971000

-5977000

-5870000

7490000

1283000

22882000

45364000

854000

828000

285000

528000

683882000

714435000

278346000

302088000

99439000

95710000

22172000

19878000

-797000

-3821000

-17998000

-23614000

1712000

24109000

16604000

17176000

20619000

-219000

-62000

28295000

34092000

12298000

11266000

21652000

15218000

72846000

62373000

206000

7000

7536000

7944000

53785000

55072000

23943000

30972000

1237000

4507000

2262000

2394000

8000000

-859000

8859000

6275000

20650000

22239000

1808000

8000000

15000000

-5628000

-1470000

6082000

23870000

55000

300000

159000

70000

16957000

20557000

20619000

-62000

132649000

127957000

1027000

1226000

307350000

344459000

6592000

6023000

844132000

862357000

36843000

37264000

1185000

1205000

66535169

18674902

18675959

66554156

23266000

30756000

251764000

262437000

250967000

844132000

665000

-763182000

881000

169268000

-797000

262437000

862357000

666000

161543000

-763223000

1094000

18674902

18675959

763182000

763223000

50318000

47900000

50207000

47870000

EX-101.SCH 8 lstr-20110326.xsd EX-101 SCHEMA DOCUMENT 0201 - Disclosure - Noncontrolling Interest link:presentationLink link:calculationLink link:definitionLink 0202 - Disclosure - Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 0206 - Disclosure - Additional Cash Flow Information link:presentationLink link:calculationLink link:definitionLink 0205 - Disclosure - Earnings Per Share link:presentationLink link:calculationLink link:definitionLink 0203 - Disclosure - Share-based Payment Arrangements link:presentationLink link:calculationLink link:definitionLink 0209 - Disclosure - Investments link:presentationLink link:calculationLink link:definitionLink 0141 - Statement - Consolidated Statement of Changes in Equity (Unaudited) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 0111 - Statement - Consolidated Balance Sheets (Unaudited) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 0140 - Statement - Consolidated Statement of Changes in Equity (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0210 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 0208 - Disclosure - Comprehensive Income link:presentationLink link:calculationLink link:definitionLink 0207 - Disclosure - Segment Information link:presentationLink link:calculationLink link:definitionLink 0204 - Disclosure - Income Taxes link:presentationLink link:calculationLink link:definitionLink 0130 - Statement - Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0120 - Statement - Consolidated Statements of Income (Unaudited) link:presentationLink link:calculationLink link:definitionLink 0110 - Statement - Consolidated Balance Sheets (Unaudited) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 9 lstr-20110326_cal.xml EX-101 CALCULATION LINKBASE DOCUMENT EX-101.LAB 10 lstr-20110326_lab.xml EX-101 LABELS LINKBASE DOCUMENT Total liabilities and equity Liabilities and Stockholders' Equity Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Ending Balance Beginning Balance Total equity Beginning Balance Noncontrolling interest Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance Stockholders' Equity Attributable to Noncontrolling Interest Total Landstar System, Inc. and subsidiary shareholders' equity Stockholders' Equity Attributable to Parent, Beginning Balance Stockholders' Equity Attributable to Parent, Ending Balance Stockholders' Equity Attributable to Parent Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance Accumulated other comprehensive income TreasuryStockValue Cost of 18,675,959 and 18,674,902 shares of common stock in treasury Retained earnings Retained Earnings (Accumulated Deficit), Total Retained Earnings (Accumulated Deficit), Beginning Balance Retained Earnings (Accumulated Deficit), Ending Balance Retained Earnings (Accumulated Deficit) Common Stock, Value, Issued Common stock, $0.01 par value, authorized 160,000,000 shares, issued 66,554,156 and 66,535,169 shares Landstar System, Inc. and subsidiary shareholders' equity Stockholders' Equity Attributable to Parent [Abstract] Equity Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [Abstract] Deferred income taxes Deferred Tax Liabilities, Noncurrent Total current liabilities Liabilities, Current Other current liabilities Other Liabilities, Current Accounts payable Accounts Payable, Current, Total Accounts Payable, Current Cash overdraft Bank Overdrafts Liabilities, Current [Abstract] Current Liabilities LIABILITIES AND EQUITY Liabilities and Stockholders' Equity [Abstract] Total assets Assets Other assets Other Assets, Noncurrent Goodwill Goodwill, Beginning Balance Goodwill, Ending Balance Goodwill PropertyPlantAndEquipmentNet Operating property, less accumulated depreciation and amortization of $142,330 and $137,830 Total current assets Assets, Current Receivables, Net, Current Trade accounts receivable, less allowance of $ 5,525 and $5,324 Short-term investments Short-term Investments, Total Short-term Investments Cash and cash equivalents Cash and cash equivalents at end of period Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash and Cash Equivalents, at Carrying Value Assets, Current [Abstract] Current Assets ASSETS Assets [Abstract] Consolidated Balance Sheets [Abstract] Average number of shares outstanding: Weighted Average Number of Shares Outstanding, Diluted [Abstract] Dividends paid per common share Common Stock, Dividends, Per Share, Cash Paid Diluted earnings per share Weighted Average Number of Shares Outstanding, Diluted Earnings per common share Weighted Average Number of Shares Outstanding, Basic Diluted earnings per share attributable to Landstar System, Inc. and subsidiary Earnings Per Share, Diluted Earnings per common share attributable to Landstar System, Inc. and subsidiary Earnings Per Share, Basic Less: Net loss attributable to noncontrolling interest Net Income (Loss) Attributable to Noncontrolling Interest Net income attributable to Landstar System, Inc. and subsidiary Net Income (Loss) Attributable to Parent Net Income (Loss), Including Portion Attributable to Noncontrolling Interest Net income (loss) Net income Net income Less: Net loss attributable to noncontrolling interest Income taxes Income Tax Expense (Benefit) Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Cumulative Effects of Changes in Accounting Principles, Noncontrolling Interest Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Cumulative Effects of Changes in Accounting Principles, Noncontrolling Interest, Total Income before income taxes Interest and debt expense Interest and Debt Expense Operating income Operating Income (Loss), Total Operating Income (Loss) Total costs and expenses Costs and Expenses Selling, general and administrative Selling, General and Administrative Expense, Total Selling, General and Administrative Expense Insurance and claims Operating Insurance and Claims Costs, Production Other operating costs Other Cost and Expense, Operating, Total Other Cost and Expense, Operating Revenue Cargo and Freight Revenue Depreciation, Depletion and Amortization, Nonproduction Depreciation and amortization Depreciation and amortization of operating property and intangible assets Consolidated Statements of Income Consolidated Statements of Cash Flows [Abstract] Net Cash Provided by (Used in) Operating Activities [Abstract] Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] Provision for Doubtful Accounts Gain (Loss) on Sale of Property Plant Equipment Losses on sales/disposals of operating property, net Gain (Loss) on Sale of Property Plant Equipment, Total Losses (gains) on sales/disposals of operating property Share-based Compensation Increase (Decrease) in Operating Capital [Abstract] Increase (Decrease) in Receivables Increase in trade and other accounts receivable Increase (Decrease) in Receivables, Total Decrease (increase) in trade and other accounts receivable Increase (Decrease) in Other Operating Assets Decrease in other assets Decrease in other assets Increase (Decrease) in Accounts Payable Increase (Decrease) in Accounts Payable, Total Increase in accounts payable Increase (Decrease) in Other Operating Liabilities Increase in other liabilities Net Cash Provided by (Used in) Operating Activities Net Cash Provided by (Used in) Investing Activities [Abstract] Payments for (Proceeds from) Short-term Investments Payments to Acquire Property, Plant, and Equipment Proceeds from Sale of Property, Plant, and Equipment Proceeds from sales of operating property Net Cash Provided by (Used in) Investing Activities NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES Net Cash Provided by (Used in) Financing Activities [Abstract] Proceeds from (Repayments of) Bank Overdrafts Decrease in cash overdraft Payments of Dividends Proceeds from Stock Options Exercised Excess Tax Benefit from Share-based Compensation, Financing Activities Excess (shortfall) tax effect on stock option exercises Proceeds from Long-term Lines of Credit Payments for Repurchase of Common Stock Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities Principal payments on capital lease obligations Net Cash Provided by (Used in) Financing Activities Effect of Exchange Rate on Cash and Cash Equivalents Effect of exchange rate changes on cash and cash equivalents Cash and Cash Equivalents, Period Increase (Decrease) Cash and Cash Equivalents, Period Increase (Decrease), Total Increase (decrease) in cash and cash equivalents Disclosure of Compensation Related Costs, Share-based Payments [Text Block] Share-based Payment Arrangements Share-based Payment Arrangements [Abstract] Share-based Payments Income Taxes Income Tax Disclosure [Text Block] Income Taxes [Abstract] Income Taxes Segment Information [Abstract] Segment Information. Segment Information Segment Reporting Disclosure [Text Block] Comprehensive Income Comprehensive Income Note [Text Block] Comprehensive Income [Abstract] Comprehensive Income Commitments and Contingencies [Abstract] Commitments and Contingencies. Commitments and Contingencies Commitments and Contingencies Disclosure [Text Block] Payments to Acquire Property, Plant, and Equipment, Total Purchases of operating property Payments for (Proceeds from) Short-term Investments, Total Net change in other short-term investments Purchases of common stock Payments of Dividends, Total Dividends paid OPERATING ACTIVITIES Adjustments to reconcile net income to net cash provided by operating activities: Provisions for losses on trade and other accounts receivable Stock-based compensation Share-based Compensation, Total Changes in operating assets and liabilities: NET CASH PROVIDED BY OPERATING ACTIVITIES INVESTING ACTIVITIES Net change in other short-term investments FINANCING ACTIVITIES Dividends paid Proceeds from exercises of stock options Borrowings on revolving credit facility Purchases of common stock NET CASH USED BY FINANCING ACTIVITIES Shares Issued Ending Balance, shares Beginning Balance, shares Stock-based compensation Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition, Value Foreign currency translation Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Total Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax Unrealized gain on available-for-sale investments, net of income taxes Other Comprehensive Income, Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax Document and Entity Information [Abstract] Document and Entity Information. Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Document Fiscal Year Focus Document Fiscal Period Focus Current Fiscal Year End Date Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Consolidated Statement of Changes in Equity [Abstract] Statement [Table] Statement, Equity Components [Axis] Equity Component [Domain] Parent [Member] Common Stock Additional Paid-In Capital Treasury Stock at Cost Retained Earnings Accumulated Other Comprehensive Income Non-controlling Interest Statement [Line Items] Allowance for Doubtful Accounts Receivable, Current Allowance for Doubtful Accounts Receivable, Current, Ending Balance Allowance for Doubtful Accounts Receivable, Current, Beginning Balance Allowance on trade accounts receivable Accumulated depreciation and amortization on operating property Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Total Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Beginning Balance Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment Common stock, par value Common Stock, Par or Stated Value Per Share Common Stock, Shares Authorized Common stock, authorized shares Common stock, issued shares Common Stock, Shares, Issued, Total Common Stock, Shares, Issued Treasury Stock, Shares Treasury Stock, Shares, Ending Balance Treasury Stock, Shares, Beginning Balance Treasury stock, shares Dividends, Common Stock, Cash Dividends paid ($ 0.05 per share) Total liabilities and equity Current maturities of long-term debt Long-term Debt and Capital Lease Obligations, Current, Total Long-term Debt and Capital Lease Obligations, Current Long-term debt, excluding current maturities Long-term Debt and Capital Lease Obligations, Total Long-term Debt and Capital Lease Obligations Investment income Interest Income, Operating Commissions to agents The costs for commissions to independent agents for sales-related and transportation coordination services between customers and third party capacity providers during the period. Commissions to agents Costs and expenses: Costs and Expenses [Abstract] Deferred income taxes, net Deferred Income Tax Expense (Benefit), Total Deferred Income Tax Expense (Benefit) Sales and maturities of investments Proceeds from Sale and Maturity of Marketable Securities, Total Proceeds from Sale and Maturity of Marketable Securities Payments to Acquire Marketable Securities, Total Purchases of investments Payments to Acquire Marketable Securities Dividends per share Additional paid-in capital Additional Paid in Capital, Common Stock, Beginning Balance Additional Paid in Capital, Common Stock, Ending Balance Additional Paid in Capital, Common Stock Increase (Decrease) in Insurance Liabilities Increase (decrease) in insurance claims Investments [Abstract] Available-for-sale Securities [Text Block] Investments Exercises of stock options and issuance of non-vested stock, including excess tax benefit Exercises of stock options and issuance of non-vested stock, including shortfall tax effect Value stock issued during the period as a result of the exercise of stock options and non-vested restricted stock issued during the period as part of the company's employee stock option and stock incentive plan, including excess tax benefit. Exercises of stock options and issuance of non-vested stock, including excess tax benefit, shares Exercises of stock options and issuance of non-vested stock, including shortfall tax effect, shares Value stock issued during the period as a result of the exercise of stock options and non-vested restricted stock issued during the period as part of the company's employee stock option and stock incentive plan, including excess tax benefit, shares. Other Receivables Other receivables, including advances to independent contractors, less allowance of $5,018 and $5,511 Other Assets, Current Deferred income taxes and other current assets Deferred income taxes and other current assets Allowance on other receivables Allowance for Doubtful Accounts, Premiums and Other Receivables Purchased Transportation Costs Purchased transportation The cost of purchased transportation and transportation-related services of third party capacity providers of various modes for the carriage of customer freight during the period. Amortization of Deferred Charges Amortization of Deferred Charges, Total Non-cash interest charges Insurance Claims Current Insurance claims Current portion of the liability for the estimated cost of settling unpaid claims under self-insured retention after third party coverage including reported claims and an estimate of claims which have been incurred but not yet reported. Insurance claims noncurrent Insurance claims Noncurrent portion of the liability for the estimates cost of settling unpaid claims under self-insured retention after third party coverage including reported claims and an estimate of claims which have been incurred but not yet reported. Earnings Per Share [Text Block] Earnings Per Share Earnings Per Share [Abstract] Significant Accounting Policies [Abstract] Significant Accounting Policies Abstract. Significant Accounting Policies [Text Block] Significant Accounting Policies Noncontrolling Interest [Abstract] Noncontrolling Interest Abstract Noncontrolling Interest Disclosure [Text Block] Noncontrolling Interest Purchase of noncontrolling interest Payments to Acquire Additional Interest in Subsidiaries Purchase of noncontrolling interest Payments to Noncontrolling Interests Purchase of noncontrolling interest Additional Cash Flow Information [Abstract] Cash Flow, Supplemental Disclosures [Text Block] Additional Cash Flow Information EX-101.PRE 11 lstr-20110326_pre.xml EX-101 PRESENTATION LINKBASE DOCUMENT EX-101.DEF 12 lstr-20110326_def.xml EX-101 DEFINITION LINKBASE DOCUMENT GRAPHIC 13 g26731g2673100.gif GRAPHIC begin 644 g26731g2673100.gif M1TE&.#EA=`"&`-4``*K-Y='I]9V>GF^CS>;[_0%HQ/W[\P8'"OS\_/+]_%-4 M58ZXV=+3TP)DNEN0O"QQL?KZ^?C^_O[\^$=[J`5DM`%JO?WZ[?K]^=[@XO[Y M]S5PFO[Z_;_>\PU0D?;U]0MF0IGLC8W.7%R M=+&QL>[P\NGIZ\+#Q!I9GP%GN_____W]_2'Y!```````+`````!T`(8```;_ M0)]P2"P:C\BD*,MF\V^LWJMS4A^E\P& M,6;;S^F[?KTRO1(27'5[A%1YA8A6$#H+!#\&$@@(B8F'E)<1'!H<$09$ MEJ%JDZ!2""\+-`,)%AD0I**R:Q%>"!(0"&D(.BD4*2J0NJ>T:J/&6+>2"&0N M)@`S#34`DC]BR6O(V542D71;7S\.-04-`P2Z$2?<>.U9WA)B""L9/P0S%`T- M,P$GNK'>:=DF\$<\,1<,K#@!H`$+%N8`O(``X4U!+`0%>KL@!H(!"#D<%"A! MH4<%!RIP&;B(D64W.IT,7.`@8B0%%CT>`%AIT:4A_Y]3O(E1F&!!B0(L*)0$ ML<`$A`A`?T;]@6NH`14M&IA+VJ-!BP!_IDK)^*X9QP@6)`#X8*X'A1(]"I`` MX)2J&*A@6))MUXS.!0LY!AQMX+:&UA@.3!@@(#G6JQNYV@<%AJ,(/IQ"=!(<-E3D+> MU*>+$%29-]4<)[S@`$3354"!<$I5%T,!#LAP@P(VV!!""`=`*>63-BAP@P`[ M,)!#0(5DF`@SY"'W0P`/Q=*\1]EI7'T!YP)MPQBDGG"'8<`,.&.P"W@\0 M^.#?%5[J&-X*'BQ0PX'`K:FH6R/(^:24D!=NZ0@R0FN'/1)``9X`$'-+@FZK`Z MK;!"%`9`(H$/N4!@@@@,#Y:'!4G\F8("#`B-\8))#OPWKEGP1 M1)+_@0L91-"I-09)L4(..U#K9IPR8*`K*?JE<2.N#-Q@PYL=U!`7N<.92UP+ M!+`#1KL64BAA%&EXP(`,`\=IPPY4D=<2OYWRJ9\.`B@`IPTPB&!25ZPE/&P% M#9PHVF-GV&>`MR;3*8`''F0J52C6F()`#A`X`0@,Q[-.RPEJQX``! MCM%^C'0]>6*P-894ZJO#QRT`-%-Q"F<(&PB!#!:,V=4F(9B M'NQP[P$"Y`HH+7Z.+8"4-^@02"X_J&8.29@U@.BP3:/`%!B#7+T+,TY)@$'. M4>+P=15WA2[37?%P]`-]?&Z0`PX#VR``!F]L!,$%OYBC_Z;;"5:`0@DM)%`1 M`NRLP_+D`` M!R?+P3H"X88(($-_4)D"-AZV'`F4;P=.NE8"&%B?%22'(P$H$&',I,$>U&`S M/4A!`$PPAZHY\8E.C!>?0,(Y!G0A'M<@2R",!0DO8`\A!M"!#";%@+2LX`(U MV@`L7("+!```!%TY$!'7AX*'%/^@`B)8P`DV8`(#^O&/!BQ&?4ZP`SC)`%,_ M2(`M`A>X>Q#@D8\L7P(B"4E()B`'3!*`"BA)@$EVTI($<,`<;[<^(4%$2`/8 M9"57R``N=\G+"<`@!",000MX24Q<3L`P1534 M@7!2`!34H)C0C"8Q)^"F$$S@EM];9'@6,0`1&,Q,2MG'31Y2@A+P8`0A@$$) M&J`4?>SCG2``00G(^8%R)?-MK!&.D!KWSG[Z\Y\FB2<%:@""&-2@40<(UP,6 M$(#1\0(@$`B`:DK2S^A8%"D=&$$'UDF8?VKEHA=57S*KLYF0@NBD*$UI2IN) MF0/=$:'_(T@!``B0$`F>H2:$`FLP! M`G'=,T$-B"=)E%H#CGKTJN^4'`@T$WO?NU?"?&`" M',B!"S`0`AS4R!2DIBD(`9*^\;'`H?6A=`@GFRL\@H-G!7*,"#`7""71O8FJ7H-^4HX*#":?D& M'>AA@!<0=ZA@3O!13=(9/;*K'AY(E;%6$$,K\((\N-`!DWH&"E,XAV.,`??/I!S_]>Y`**Y.AO=H/`X&Y@A3E(0@*E%J\W MC8L9?636TJ+J*!$_Z^(%J("-<`@;C22!(XRD9Q(>4$`(=N"S*-SE01XP`0$6 M\-@C-7.IN%94=-BIU/011YA,WO#TRI-?3>GG!]6U@;Y($PEL).LC;E3M*<^; M;05S1BDE_YZ$2#N7M>SV!EZ$1F70%%#8CA18*''CS@@"PQ^JO:=H,^&V+^TC` M=%OXR`E(]CWQ2.QCO#*9NJM`CZ##A#89,,`)RN>""#;6KO7^0",24(\NO/L; MM,$`C1'`L\OU=O`WRD#*EWWJMI];8A8`1Q=.$,K*XOI`%*`O`A(P/9E(C/>* M_MZYRSUX:_A``&^2PL[,6=&=IT2$"`/`7<`<5SI(W-W`M=6$']R<).>`F_]BR!LV# M`!GP`DH#>:]1`#$P`']A`>5#$3E`+?E"*,VF+8.2<@=7?V>0+J@11$T#>3$` M`C50`TH$">N0-PJ@`!PS1267!69G#6_V)I[3'UI0:)+`90-H:7#1`S.P`'#` M@*Z3`V\0-/97!1:0,R'``$[A)UDP"=8S?1?4A&#F@2!2`PY`+P)S+?W7)57@ M`]US<-B2+5<@#]8C`5AAAF=X1S6H`0)#*3K0!\6W!]O%>S(`)PJ`+4&8@%T0 M#9P%>4P35.AD`_GR$7UBAX9(!16B:">S`R7'7;*T`NQ18)!7`AGU)B/@`"\0 M/B)3B/_!B;C2/W0B`SH0'F#(6R%(`"U0(O]VY1I(55E:T5&SE4%N01@6)3D? M@$Y/$BXNI@**<7TZPHDB@SQQH@`XH`,400Q.814!T!Z$X5X'HCX6M2::02(] M97%Q(1P$E5&R`DP;929SX0:D@`Q8(P$=%BWHA__(`$F8!1;06#MI4SC MZ#*O]1#(^!KMR(Q2,@(\`%G#@2[C-XWZ16Q\0C)S8HF6L@ONX@(O,`%#5DY[ M9F`49U'0%1TQ$!M']%;H1"QP1KFQ0(G(@OVF!\4LCK*%BE5TH`= M\`%BZ3@JQCYWA!3_%""6;P4#(^"0CA("8>EEVZ84R$4&FVB! MGH`!)<.8LQ*:DE(E2(,!@;$:+-`T3#-'*C8,DHBF:5`(#^9(#+[!'`J("Q'6#8]9.H8(HR"A.`_`NLZDM=8.%H.`-/A`8 MCPD#VLF6W+F=4/F8\Q0?,J4"+\`N]@!R"^%X"TE;Y;1:SN05&#`@T:DII0!R M%C$]UR,!:5,<5ED"'\`#_CE/Y'1$'O@!\P5CDC"&>PD\*K`#+5!.[+,R_^YE MDET1`PN@1JL'/]LD9H%=E3;YAD>L1)14*A` M>@<'M`XO4%P'*=`&$(G,/$)YG,D[-1`(+T`GW M::R(R@;Q(#^K%P`E8!B(TJRQ`0(Z884>T`<#8@<):CTRX0<JWQ\!$14&5&82;$"#,?L%#^8"S:,3^H8`K-$X:2``;$8SUC MHAIJXA##`3-Q9'T0N`9P!P@"8BP!,`.,HT_2!0"%958"APC' M1Q$7X'@D\%$U:`ZIQ+#_'()A*3AX:H"'S5`\$&`H%#42#V!F.1`\`L$,$2!S MJA4#`Q4=#\`!,B&?9+``FV&5,D4`+_`"AUH6=D$`D78H'D@# MX^H-$,!&)$>X9K`1UG,"`2`"G_5BSO(&"7`1;Y!C%<%8J34D!4"JKI!\0I.+ M]*D&:.%Q'N!&`U8"TDI]:6$"-B80::%(G6`"DQ1I'CA=%F`!K;(#Y&&[`U$+ MS=+X@+UW`S._!(][$. M_Z^V'`6Q/^T&%;CP+&@U`!H0`$CC*CB`A`A\-2";'M?P`A=PLSVJJ%;#%[A@ M&S#TD9,$``S@F:>B/?,Y2TZ[O_CG`K@Y,PUW$9X@#LYV#02`@>V28\]BP^V+ M$0F@@\43@@I!/V```190#]R1+!01`2@,"-UA`).Q+AZ+'V>;`0GG8PGAQ;BP M`F"`F^3#$9V4$":@QBDB"/13/N'S%";0O/?1)[67`18P/_9@/5EL"[,$"*HG M2>5S`1!0/F-8Q2X@!AQ"/"[PERNPR.Y"!Q21+`B`O-17R1R1N@:`O,4C@G6L M4^NR8<)K"Z$,!PLB1LP<\!D;8`$0D,S$3`",I\P<$&,J0,T!$`"=E&/$(S\)<,T` ML``+``!0"@'73,W*'`#$!!)W!Y-"'5(]$4?VD"*0`1"YEQ$TM? M\>`##^,!(@$"2)&7EV<"8DAMT>$:+.`9J:>!!J([+(`!T^8XNK.C$=`"AR(B M[>,:'Z!$'*%:)%M.\_0^OJ$50;)B@LIX#D`#BAT=`Z`#"8``!/"O)_I1P_&W M<\PL]H`5S50`-9"YO"$@:;5.@2H<[W,?R_J$KL$4*N`;P<$"4N@!EA$?,T`" M?"H7XVH"(C",!3``"U#:_.8`#Y`/QH4",S`#7P&0P'+5=<09*-$,-$$<\KH` M`Q`;A#$#``#!S"(3HVL2<@$`/^`"R4(HAA(;P`"GA!L[\`@]@7"GP`'S6T.8C+IK149-7 M)AXX`QS@`BI.60PS;1]`=2R@`8X+W=-1`%KM#\;#$"!P$S$0#.53KP`PV<9! ME#FQY`@P`)'%;PM@(JSQMP+B0C2^`*[*`KU#/*=S`HHC.0OPXA3@0=,G@+OS MVA-``M/1U.J\`"TC-4[F(4.2$YU$H_$4%S$@`AK``$UL`(K.6>C@*Q=PW"50 M1QL'`@_!`P#PS`Y@7"OY`")03DV#$L_@0CB;`!+G3(E19_^0@'Z8\15JTQ4. ML,D#`"0X"!V_FAD$&Q(&`M-#NP!L@=L3$&O=9!W7!@R`D+@DH1DH\G9M;@ZR M!P`U@10QK0(]GB`K";LB\&ESL$B!<-Q:40$EL``IXA0!:1C.A%N6<2`M4%\B M,1RY/0#AF!FX/0`^(.[2;H#0X!OQD9<,8&8`P-WCB$X5+]`N M9'+M=425G94"JB`L>-E-=_0!G>[%U,$:P$C!M<%0! MYIL"JV_>#:!$*4!9T4<3G/85%-3&>)WF1;].#_'U*0#XT9_-:77E!0``@J%4 M\M%)&)`4+8,2B8L4Y.).LTH`+E`HFAW6^Z8"40H$`Q*KT%@0$(%'I4+Y+`(! M0*I137%F_Y4"!00@/%`%%F^1D%S0OHUK,'&WWBWX1#X!7"RNA9N.:_,7/"!^ M'/@F%EXV'.;X'!8XS"PL#'YT]AXP'QP`$C)65%0(>GL)5()S5$P\-SR$7YJ)?5]65@R&AU5.,EP\?'T) MO!,2\+(EIDU>`CBBD#(R+#*:C5\B)(VYKU?RG'U=N%]RSLQQR^$BPYE<"'X8 M,''!0((3""Y`@!!AH0>%)B"X<'$"W`D(:"1`"`=!@@D)"$Y$N)!!8H03+QU" MP+A"`CF)TA)$4"D1S06+$#AN\"A!X0:40!VND/@2`@M"SD34CIQX0>$:4TW&(V0\R-#B`\Y&CB#H.;$JT81I&4GU,!'KQ0DVA3!(X1F,!F82SFM3]\_!`]FG1ITZ=1 MIU:]FG5KUZI#OY8]FW9MVZECW]:]F_?NW+V!!Q=NVD=QX\>1)U>^G'ESY\^A 71Y<^G7IUZ]>Q9]>^G7MW[]_!@P\"`#L_ ` end ZIP 14 0000950123-11-041476-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0000950123-11-041476-xbrl.zip M4$L#!!0````(`'U-G3Y0,UH[M#P``-34`@`1`!P`;'-TP+I-=7@+``$$)0X```0Y`0``[#U9<]LXTN];M?\!JSDV MJ:(.ZI;C9,M79KR;PV5[=F:?4A0)2?A"D1J"M*SY]5]W@Y?.R+(D4PKS,".3 M(/I$=P/=`$[_]3BTV0/WI'"=MP6]5"DP[IBN)9S^VT(@BX8TA2C\Z]W?_W;Z MCV*1_7%^^X']PAWN&3ZWV%CX`WKVT?"^L@MW-/%$?^"S5Q>O67?";F_9I>LX MW+;YA!6+42?GAH1O74?U5BWIX;O'KF1;PL#WQ^=E,OC\;B$CTNNUR]7 M*Y5:63C2-QR3%U3+$ULX7UHPYM!!/8`R^M<0T@+!QLZQ>QDVE6,02:*F7__CXXP4F7HBJ9-;WF/$Y!-_,N)O"U(,1S;V2,\&'N^]+2#?B\CB2JW: M+#U*J\#*JB-4G@O7\?FCS^ZXZ8/.*M6!=V;X7%AO"^>&C8B>R<^]+]4FZ";V M]N7,-(-A8*/B?OGL#[CWY<(=CCP^X(X4#_S+->C]D'_YR(==[BG4H5_N^,*? MA'_!W\+")SW!/48D\2G.26Z6^NY#^>+Z/X5W%?C7;M3:>O.TG'R6="5Y?PA/ MXP?P2,GEA#^.;&$*7^'"+#%$''&$AOIQ4N`[\*<\>A2R\ MBYJE:":2IRA6!"L8I^6%H!-DR]/8GI:G&',ZXIYPK12;2%G\=\E0.2U'SZ(> M4M^EZPB\B+J#DI(C4MN0I>5+Y]E_YQB6J: MR(C&G0NL4M2KQ6ICNP++3>$A"BT/1EXD&-F),'._EETAQ<$'4#=TG2]WOFM^ M/2[Y*,J(L(,*.6+1W'OK9%`>?1 M_!ZC^:P)/X_^#U.H4]ZTI:19V;G0GN22D+[6=F)MBA8JG0S15^E$8M[B7")# M].TD&,\2?;L,F?*@]I!,Z4I1YM/'HQ)GGFXX7B%G)@I*\R.,$UK?XD<<+FTA M'&S^.W!X)C@Q'0\VMQ1/Z.VS41;CI7I1;V]*'T1(P)TBK8F!'H>_7Y["/8WM M?Q2+OSDB+HR*ZJ("?(;L^>WN\NKF+N:&)1Z`D@0XMOL4#+&PSTWL&+P8DH?C M[\("MA/HY[0+OJ=M+[KA#X2SKF`K;3N3`\+A5\X[-R&P('=&_T^M]@G MU^=QF\@/?12.ZX%Z12MJET*:MHL@[T'VZOM0$6ZQ?&[I,/C9]M\`X,O/%_?_ MN[EB`W]HLYO?SC]<7[!"L5S^O791+E_>7[(_?KW_^('II0J[]PSPG/P9]%/?5FR?*L`9/W<]]\0(T-$EG)`9T7V!.IG>@:U M8(8M^N#Q;=[S"TSZ$QO&=@]X5.P90V%/3M@_[R$ND.P3'[-;=V@X_]3H@29A M>/4*O4X^VH6BZF7J+K+6IL<*9W&6HJ_^`G3*R/_#1L:'G"M MZ+NC$P8/CKGC>?'MN=MFV.TK_?7/QG#TY@>]67DSO<[-(L7<$>@$[NY^73O, M'W"&@;#A3-3S-MBW-Y)A],5Z,.8,&]H(SV)_!N"WN*>E/P'[@V6\6!&.3PT3 M`FLU^IG;8V`9YJ[,.'"V8X%A.^9#+H2F$)PQ,P(OV!YP;]`7PD MV%FJ'_A`@R^8Y0VIM@;/%+],T^"[[M^$`W0H$6E.-M1HQA*AWDV;VC-.T M(H%08F<)C9/HHXAUH\`S!U00#T^I?X\/#8%+K:RZ-@QDR`S+%)/A>8A[(F\D MH+1<7Y,'I^4GF.&4UP/!+O=K3_%]=S!J(-0R(1@\,TTW<)`)-R[.N+@\5O=7 M3;F_]1BP8P_X/-M93=G.%#DLH8=%!&W9ANK5R(A"#P)_O(<0TC$%&+-KF&)X M`09GD@"*';J/?=CP^R4&O!=3+!**X;=I!Q9GIB$'9$L>#!M?:$P.7,\GTVR[ M(!D8[4-H_0!#GK[4B".@WO`Q-G(Q\P?&DD0IP729'/KJVEQ+'HZ,B7H2-_8" MT'5;&%UAPR`!I6-F`%;9(<`$`8UV]`P0#SR8X(@I,B M9"E3F#$:>>ZC&*)'ZAG""[$SI'*R4G(_Y$7Z(X\K&2I!*?$Q!SG"2^QNM73I M:V2(`%0,?P9J+_`(5XM+TQ-=`SB7`\D%Z(&0,"/`Y<-2W M8VC`-X/`J#&!S%)8+QIGJ%S1L)*LZWJ>.\9L*0L<"WBV++[R^(-K/R`'3$!" M(,M-PI,`DU:G^O*X;9#!A(C$5,N1S(;I)W"N"\:)8BN`2,&$&PY]CIHK*%1% M4DV`UL*QJZ@%]7,\@$[DA2OEM.]2`7+H2DM/Q"6SUOC`E9@V,-V&JI@.V9G,ET)%=+1W)( M0[%+$Y>0"G;F`1?[M.*U[5!NGZ'4F61J*MECH(_F(#5Q:FKA["\]^@>&13-3 MF`*[$P[N%W.!S!W1W'%DPROJ[M6,F]0[G1J[@=?IF$1;VI.R0#""U4-P-3@5 M?N`*PFSG5W>?[ZYO9GL&/,//S91JJAYZKL>&E,222#E.S,]=`R;\;H]`7X*7 M-'T7WL["2MY0%I2EU7Z.0/:*&V@0C70/V$A+QPJ(JNG:-BZ;/G![HL63XYFO MY'1`]\F-HY0^Z"+0`,81S#?H$@1OB3^+>8\6&DFE2`A80##H4S36:?Y+BB3X MXPBC!9C2#^/HSP4K_!=%0]1W$G'+*-$HU49Y<#,CH`B\1Q0V@>4/WA9PI65^O519RGN"_BN'\3%CUWQR>(1VU_5]=YAT MP:(F5@2BU?QI=NPC*WQKQ3>-IW^BYU"V#47][U]"(=1%-",O90:$46%(PRDT2.3$'%9[(<*_8O7&[KX(\JQ M,TJR,\JR$SK=J-DF!!P-6ZO3W")OR\#)/I]%>T>ZM06DCTBNFPT7C*TR+ON- M":OL1C^B>=UR7SOKC\]=:_)M?QS3:9A?^Q[$.M8)^\$T.>_UEJG:5%`2?A[& M\!A=G.B-T6,8=`@'BRA.BOB(NKMW<8INPNPH2GBHN,@*/%KO@`>J\F$N%-J" M]&?SM#]^NRT=Q159^)K-[>&-DEYFF!'8K5#F3XE=U!0,G3&K<] MM4F0W8%>Y.TVD_Z69:QF6F@6/+6&@G-?=\B9;SS"U,[A/>&S,'$:S\7V83>> M.F2385C;I\78',UJIY/;BBR.Q:RW6SN0U4/9')*HYX+%='0X-89F8D65DUX< M*+[$>,\D'>L9CAU$I[7*^6=C'S=DO5^>W M5V?_651J_))YPS`C%F:1,'U$8,(<#RY449(*%W:H,!97>8MCSK^&OD#F29M,I"!R M*$^%LK8[S5>A#X^P?!5Z521W]8CY>7`'#RX6VL5U>#N>0,X&SALN*C5**Z+] M6:#8Y*?LTM)Z-BWK321WJ41J?R*,BHG@]DXFA[MA?J54;QR-)@$QJR;!6U2E M/=NJ6R&_%GL>GZE@/1PUTTNM%:O@AZ5EU=*S1\S+VRM;/'!5>C;AAB=?O^`R M^3R'ZZL&#[7/4-IBX;-;B(\/##2_$@2X?&`_"];`#!F82J^ZC=5LJ M^Z22_ZC(U MM2/9VF#%/);1RGG(9H)`:RM82XNXS:W$I!9^II>*IHMRPTY2B_'4]$E&<:Q M_FY943>):O9=2U-+/,BB'_5JJ=*@9C_J>JG3UJ**7JI17K%YXR`&8+(J%BY` M!4-`AX:B<$#(0U70[?&^X5G1`%JD?`L%1+Q("K`I@_*=+Y$UJME8\,FAY%". M`\J2&#HS2Y=YN[VMD$;S%5KJ_#T*+LY4<$$0LKNZNQW0^6#(E>VIN-]&1\\< M`M)'/T(VE>*G@(X^=7N'(,4(Z:MH3G\#<^B#&C1X(ZT'D_O`L`$[;-^'^=R M,+^^!OR%(X7Y?/2/:$AMEF/]K*:]&5>$S6@;@5&A??]'2=T]K@6^4DO?1TG@ M?VD%[14\WP:!BT;ZD90!A&,XO0:,IR%=%1).H`ZHV>M7L:+5Z>WVXV.3U2P^]6JM4SV!!PO?1[L5\UGO7ZW&Q&Z^U MJ^&EZU6M\=02N!GGA5M7(5HL]0Z%)[JNM;:^A$EN9?+R);Q MO-WAM5O/S>W0E865X91;.!!7IFMZO:IU5FT@R9;9!5=66[%>DQU7UBCMT>,^ MCZ=-K5;9ZLZ1(_!D*7[EWBQOEPUO]AWMR/+I3%81%0W#J>@53=&H73J-6Q3^.9Q_.F?S6K1,>#_S64?NTG@9#77&0@A3!$*GM;[Z+&^Y2 MW;H/>"/6_)8PI49(;ZU43?A#)3N'+/4EQR'1%<71G5@A_W#3GB?,1&A"RF!> M5LC?JN4ZGNX.6#+6I/%@N2F=D!'>-?U4GWC M?/QZ8M^S(?DO&9$=:,2NBOVJ6JNU(HV0R5(_L!;ZQCK^8M;B$$M!JUIG5>(N MF]K1*NG;-BJ'GAA;HB5Y(>.A^IDG!*R'4-%0T[5*_6"BU7JEI&]?7Z2U$U.)5`=1UYIZ"U<* MUL:&0,]CE&`3WG-CQ&?$).@MZE6=<*O*!):K5_+@M!S(8M\P1B>70IJV*P./ M?^ZEJ;M5H^X"1J"D%=US3&??&),A.$!Y#\[PW`;TWV'GIY%EI4=@7_M]H.>3 MZ^--DDD+M6ZYO$V$TC5=+WIO/":XQ?"`?PYZXEO>>UNXY&:QVBSB:N$7T)GP MMUYX%XZER\\7]_^[N6(#?VBSF]_./UQ?L$*Q7/Z]=E$N7]Y?LC]^O?_X@>FE M"KL'*R4%$F[8Y?+5IP(K#'Q_=%(NC\?CTKA6P-581,E708\6G6.'@#VZ9CVW&`=P4>$PUS%542E;XOUPO+-U*G M--L35FN7JC]I;#P0``1=\P!\$E<&RA\8RA;`+,0/P"Q-6(^#+:#2L.E^1Y[` M\@GH$+HPT+($MJ\*QO`U44Y&E`VY8=.AW02"TB.^(1P<,],F;':D\:*7NRE.:L&9-& MRIA$2+.;Z*RKS)B4\ABL**JB$R_`A].P&JC8(8LT/,'!@R`$!$XA2AQH# M=2_1:))!5PI+&!X>+\_G2\3F@E$G2J=/09S:,I@^F#^]6#$;$6NAU<*+<>P` M'_,T18='R@C,%(&"CSR.M@ML8M@I'84_=@/;8@-``,)_[DQU2A97#@"LFRELH>+5,"K]ACR(EBE. M236#BJ]^?);>J,@WT9WP$H5O*0EJW-28XW\&XL&P,1A=A*V:2\88;UOC7XE( MT=U`X@>O\Y+"3!3(Y5">"F7M%=2LURLU-SUW,@SZV>\0]$L,.KE%Z.1E8`M* MY6AMAE6;VO-9M'>D6UM`^HCDFM_..DM8?COKJES7V?J!?*;2H?66UFYE\+"X M!1NF*UJULO'Q'TM,T^YK<:[GYU]X:=K8RW*G68*K"@["$B2A%@=!ULM!(;+D-O>3F60'2Y:002F<1%Y;'F*INI7.6Z+,A:ZK*92EV> M65;("H;D,*0'M#4^QB`S9N8R.2:&3,__0GK3A0L M?$C@0E`$0X&+*[Z&$#8KJII:N],BJA(T%G/LB=9MW=&V"V-WQ_L(\):/7`^9 M=/PU7JV4G5N#^JR9N%;*Q(7H9]*J+;N-YNHC7,+>=YY0A$M9V-+&D.)8>20\FAY'48W\Z_ M;GP!:%Z(L8JO>F5#OL8E&RSSN?OGTAC&4+G6+*N$H3D0A;@8";^$+N3MOE?) M/Q7S`V#NKO*JAVAG-C/<']R^D+XPC_/`N&M'!AYNZ#Q*ZNYQT_A14I9KY>%2 MMR6M7&29CZ20\^H1.(UY*H\_<">8WV*W!2D_ZTB81K.FU9L'MG2MTVX>#+JUCM;4]W@5[7-5H=XZF#L1&_6V5FEONWAK'_7&>/P+9:)4 M;G@'!NQ8VBV0>O4P+@_+(II9;[?@Y.)V!J_QWBJ:ZYFA/8=8U\[.0ZQC:;=@ MZ&OM+%X^?S"(9KW=(D9V*GL,FUX(T1<+F#[')6DO'B\M,OV:OL][Q)\G_#W. M\S9'M/;_[5WM?IGIF1GT^I/2SYD>=?"5WE`Y M8J)?9?"U40,CTLSYI$Q>5C1U^6/%;,/T`SIQ8$N68\]/+!-O3=0]C_G-.D@ MZ>W:(\GV(&UZN[HEF66)ZCF3VMTSOO&O:SOW(,;V%(^G2*9['$Q?1XW$/NK_N`_G'+6H(_+YWM[SB+-@K"^NM^Q M600VB95P)F\7E@<9J'>CS5>?K#-E!4XV'>3L+##@L@6S/<@&^*W"V.ZEGB4; MQ\_,[F"]8=/Z[3AVD"R!7;K.7I1Z+G.2=:LJOY>6\?MF\>)KF(%T@0@=?X_Q M(@ZKYAUC)YZVW2QZH%-E1+<[6?9+=V-I^ZGD9'GMJYGM;BP]B%B[&TM?ZKAV M-Y:F&>MN+-WZKB/S=P5D6X.Q`RSG5:O84_J]47M*366M)VNE*TUS[-;A%W._ MVBX#(OA&W,*QZ%6!N6[:M/.D/^BFA3IT`H'ZB:=3:A!6(WH]R6:46\>OK&G4 MFG`KMEK+5R<7TYDC6Z$KQV5`7IH&KLOLZ9-$2P#B-C2N68W2$:5_Q.KP\C#E M\A=D%@Z)VG7M9$[8T8@+9%\*'\_FE<[W66;:>5MBPX*:L7K$:J7*08TZ*HWV MA5J>NF9M=^%M/1E;2RZ\#5^`SHBV=P?;DI&\QY*8R-Q:<]D*7]G%;^CQ2]W] M#LA/\/\A7->-_P3B-!'=)2GSNR-%)!^^/ATKG.4746+;`39=/V1=!QO]NMA0 MU3WXT-:,S'9%JVD<,/5O_'.QZS@S;=V>FOA:!#Y,N@QW4O)V),]U M6P?798=7:^(;?-+9=!HL`\X4/7],U+(W8\)[_:A>4-+7&SA(%>^#]Y_`E>;N MJ_`K1ON3073%:6$1U,`^$T-<5E@LSG:&1.&DM4=J6R/:XM M$[K:==]+1W=L5QYB=_@L9!-2L%M@\I:!5IN^^7(O59[$-H@+<-^T/>))XEWI M2!D;X[!BF,(MX=BD.9F[.OSAWH$@G&;D$FS.7)^S$UQIP,=+HQ'`5TEQ1BYU M/_R+N%HT6&$@/\,9C.])>]);G->A05#ZOV#W$EJS&=;Z1#_(O_R$!29Q?&01 MDLWIK=:8,222&0X*T6/3J>ZZ)K;TI9EN4I[#"UG6=#@+P(N%EZ72<]58GD*/ M82*22U_W'A@(R(?2_Q$++TW\!!]1'A&4F1%$SGC\+SO_-OIA;H MGSDS1:G9HPGQGRU]8`_,`F>2H$"EP2F`(QF!?^.Z&K0HQ$9^5P7Y;"2!P8F^+H$3`1X"SU)X)/D2WG MQF4SBTU]R;0L$T;#@/'@2F8;[QR77JLG_SF#*.G>M.#G'JH$3!.D/&3]\Q_Q&UW"WGVA"F=.G.;%&VM_/?HG&UZQ%K, M)7%9_-5ZJH1-$]:9CSYT%$UU0\);J.>A+@"Z5>![430/$OEZ>HLXF>X%H,O. M/3A#(3[N@6SV)%C;L"G88#U^Z8XW_-K4<7'&^,+#]=+NC?J/N3C^U+B+PQ6' M!9S/T7C8-'OA MA=+;*YZH>X/_](6?*R.SKM`L40*E-*-LJJ/247D95`HOHC]315/3VY4M2OO- MA5B:NFUN)56[`6.`6!UOT^='6>F@ZY M1,,'OAQCOV%6^2(Y^T#K7"^2M=\QB3W,K'XAAN:U=W MNQS?F^%DH]EIZ?9WZ7:E3UE\8M8XNPY9KMFUZ]H]Q^RI>8Y\C&TT;"S7USMC M*M9O]A2E-;>?1W5`RC'CN=<&N9)*%)MQ1XX'/^86GCRC!\NXI[(W4!IX?V[& MB:16H!RT`:3:&Y8_7_1L[NT\VONF7M8E7H4WN!LU\8:#WJ`=5]EJQWQ.HSS, M)EX#GC'LPYXLESX"VDA/EUO^TJCY)@]ZPXGT:D//10Z*-6[_4U-YH>,3XI^)[B*/6 M0)T<\=KLBBH`V;O274&0;!<36#-/[7?,=,RT^G*(EMT\WQTHB7_3VF+_CDI' MY=!4"H=$W8&28LLN+_5\1NL`=P=*N@,E'>KN0$E]\ND.E"0]0G>@I'VL=0=* M"A\HR;_E82T_3JC;4>K:M:-=CC<.9YSOK+K-V*Y=UZY)F[&M.5\R5(]8"OKJ MCFJT$'(%A2@VV[JS)3EG2X;CIIC-;4!'K3BVT0I1JKVA7%J:S^;:SI/W*FXY M5D)4FGZV9-3OJ6H#GZ#/T&GMB*^.E(:2-='4M.5RB](;C M5CB15KPKIK3B"`P.^JCNHUQMKP$4PFKD(8".CXZ/9SA,:@_8\&3EN#51-ZXVZL#+5+B:P9M;\=\QTS+3Z:,F1'TZY M/,AZ3VOZ:#'&UY449_@@D/;1"3V_Q,RG!$G@#(OQ%22-P M$V]&IC#@"RM$IGME19!0QLTX2M!1Z:AT5#HJK_>P4N'JW5'9PN3HG5%9P0?N M_$6SJY3+\AEQ)T&X8CGVG-5PE*>!?-)J2'7.7LR\.,@1KL/C;<**?"?23J0' M%NE+-3-U'74[*.(]]G#;D"Z`3GF@+P@`_FLIPL;R-F'YM]^T`U9 M-V0MYZR>(N:_>,IN>0)^./ M>!ZWXE%HN34O+Q[Q/-6K.Q'?0LBO07.+6;`CYWI9AZ.IOQ:?D)[TQOUV'.EM MQ:MVSV).7@W<5Z"LSQ:ZM>-\N::UXG!Y.QX%;-GL;QG<%Z^J.::J[2>LA*`: M><"ZXZ/CH^/CY?.Q(PKL]@ZZ=EV[KMTAVNTP/<^S\M;,2RIDN=>?=&^*UHZT MA6OR+83\6K0WQZ!U:6I#KIKH&.D8Z1AI,2,[(L8N6>W:=>VZ=L^7K!["QEC= MFV1=NZY=UZX+B+IV7;NN73/:%0N(7O(K7=66&16E-2_F'?$5K%>W-MY"R*]! M??N M#_7\W;N+NPOI__YQ]_&#))_VI3M7MST3-V5TZ]V[RT]OI#<+WU_]_.[=X^/C MZ:-ZZKCS=W=?WOW`OF3\6/SSQ(]]>6KXQIO\6]@WA2'WI1.IG"125&)^E3SR M3%^:UM//TE_OS"7SI$_L4?KB+'7[KSWZ0\]CKAG;[`J[B,<8>[W;^U;N_\2W M[6-LT#9_@I%\E3SRJ\&W"\?U3WSF+A-O!)OVU`H,)OU%[?>TX:@'DQG^)L%, M<+$.8:G[8DY@E4+\PP6S#.G^"=_W#:4`!N0IBFNU7[!S&$'=GC+)8W->UY#[ M]O"I=+=@'K3,QND[((X@U\# MF72H0]WSF+_M562BMG*=!Q/D!(;2T@&=;DDS>H<91#<8]N31,`1B,1]^)WE- M76:8OF1Z7@`4?4>:!SK(PV=,6NE/)!!G1MVO)36U='/IG4IGU$,.I)[T`9]- M]G6`;WF.M-`-&$&U-YI,PZW.7,41ZVAA- M!LG,`I?&SF#>U#7O^7"N8(8[ACFE21BJ@R0UU>>P+JZ_+'=*'#A.8SW?-0K=[BQZ'`%)A>E^?1?\F__-1+=$Z`F.OK M)M='P.,%]YYIF+J+1-Z&A&,=7K`9LPU0%B_>KZ2[#+@.?T*V=>@+!BH-Z`/@ MY[ONB>_O72<`OXX?X@=?;=,'8=SZH-.>!%;7=\VI+R8T"#E2\H^F88#_#5L@ M&U>6XYJ&OD$Y:D,])*ESH=\\VA!+W,"`Z3[T?PV*N&*4!1'E"]=\0-4]\SQG M:A(//6@T/97>QLC`4T$O03M>']^$^^;#+.K3X&DMP'ZD[YD M_.WSSS`!P8#/9G'!8]\]KB1$EX]O[/O,KWZ20%/NV4*W9B@PW;(D,X9G&L/S MN'!"&T,H?#=`YZ_C2^7^$]J.M$)M:!&?S^P'&#@/!`@60,RWR_=?+L_^E6[]W%'1_M;\QMYP^Y'<`8^`]N-.1#,.G"MJ%)`2BBG&UCP!Q[LA3HLIJS!4"M! MF:9Z&(_@GUF!9:B MM\D\];UT;`;API/XV\9LYDY1MXF(OEHQ"'!"GYCR$GP@`-,9-?,B'W%IL0?` MNY#.37>:Y9/P`PJ?,ER#"(1B;G)S]!.&1,A\RQ!R)N-#ZGWGND.D4FA0C/IL M9D+@Z0731=0_>14N'0B*',\[28LGW5$4HKJ,["'V'/%%8QSVGKI+H8U0T)A&H3O!267[ M49BD0UCE4[9')')Y1G/*S>R"@3N"?PEJ.6,>&\+F1)8@]QOP*`FI#_C9W$RI MA]:(Q:0+_HU\#$Z*2!@\=#!<,+\P.B+BCX\0=TD@?I!UX)/<;6@L?@2]P4$% MFS%E7*EC/XJ8*DLA(,!`?1;V4H?!Q0P#(Q&((;C3Y/Z07'D4$\?,@F!*.-30 MF0KE7CM44HN8MN,WH='$5,X+PQ_AZT5T#EH&K`40I=PS_Y$Q.S6!N3'"E9=\ MYW\*/W"5G@(6O^Q..ME*5P,9OT,21; MF/=D_81P8/);8,MQ,2HEE81$9JZSE"!M0+7D\M*-)8PY3'2=;#,:+,*$(0/* M;%N`@QFY8]L@79RF).T'QX+`!"TZ8)R[^I)+RYG-R,<)M#&6_`6%_A!IFJ"M M^A9Z,)N@UP"<,@:0ANE-,082X3%0,X*I'P91[@.%::CM.N=7A(2F![,#6Z(R MST&AP%,CHBG$A,SVN,&!+)@D*51F>S@JO=7CSN2B:+E&>*3*$Z2ID]\$CA!^2+GH?0@5%I!J-Z`N,49DVDQ;U]U,%P2)TP9#%= M[G[B0^-@@Z7CDNQL$KGE>(S/O9!X)MP$))$!69;S*`6KM<'&@(7'$F!`P42( M)14<)N`49SNG9-H`7T2\?"Q!D8`<23(NRI25$+,E#+),W^+Q#\B0[!G%/2ZR M-7=F!5!ZHOZ]P$-_'6H```TL/S2=%!_$[2>(_:WYD!(07\G! M;[9-;0!(!%$][ID$PV^@]!Q,[$5HR`?Z'ACE$PVFYLKQ^)*, M:"T\M!]\_J[7[_9US[KQGV"]L)IKDK>IK3"485AK.;H!B1'(=@H\HEMY4]@8<#B-JHYDW@SWQ^':]JI(4PG('GYZ&VP MPBD1:01G'P6!]-#R,I"&`?A->*;R#U2"E-5*ZL M9>+3^.IP;)C$"G%/8F#$+>GA5+I]-&<^W^>$K\Z=4]Z"YH"Y?8GMV!L:EK^@ MT-QV<#>*;P1!DJ3CXC'9$#LSPW("'TPW"T=PG' M65)@6^9W9I']7^@/?#+HN//*7%P@T`T*8R@ZMZ?X%P8YWI1ZB8FQ.1;^+C:V MIB=F.M^B2ZZ"B0`9Y8`A!LK=6B]&@1.EH8B""1MB+[&H#\81\Q\.'^WG4=P'?-H9LQTD;#VXB#0*H$J.BN(GH4KP.W1<`<&DUZ/63V0 MBJV+I"6IJKH!)AWM,VW<>-0)CB`T@QF[A)]YN.XZ]Q1201#GB2V-]/(@7\\& M@Q^$`0BNEI#=+R0K.^950/5-U)YPPQ=M1$_29Z!/<:38+0-\#!>G@!C:9T*? MH7M)C8LT,1H+,QXV188<`V*0(D1(Z7Z3_?'IR@>`C#WA(\]!QH_(@*1=Y``$ M^@0!UA9USZKUV:_4I&C9C\',G\^@4P,[OK+T>;%JG1DX4_;KNXVOUYV>\Y3A M"J#IUI_`+N"XH!VN(OV?G,C*B2IS"GE=K8E=.--@&37Y3+OH5_`WKQBU?PM" MN=WD44(P>]#!_\VB%'6S28>#V$MV^+\G?17^D*25Z&J3TMW3JB`!N7_R[V37 M^.VZQTMV97&Y1@9CCVK0\Z?KO0 M82K>Q$I$XF3?ZQ;&)6?>S>R;/#Y;N414PMR%?N=?OZ'`$NRT][HXX'>,3(JJS)_,2Y#-["I-\`HB9_<<1GGNN`4% M_X&6/<^F4V:A^0(S09W$:2=Z39/\'-Q#LG\%2;2?*W)E],_`9D@[)O.OMQ=Q M@?=1?_OJ9#(&38A3CQ%(T_["YK0H;?N8HQ;D]^S3Q>W=V1?I]L_;N\N/TO6G M\SBU9)=I@K^'"]V:SF>E71WXBRS'@-4([`L-9&C/B&B-_.S,,47S[ M[;-N&M^N[6_G^LKTX;\_TH;Q#KEH+U,LX6TSWZC#G:(@UW0R>)FRX.ZUH"10 M*=HD!AXPU"6,G*!%'D_&6OT2X=2:(9==$R9/,OWA,01S'=9#GU/>*R*W_.!H M"$ZBB$-5Y.%:U[.)5$`1"G<'"K6O:.51@$BG]8A#E0>C<2Z0-9UJ6(H)195' M6X22B>6SJ%`P^!HO%LVA`IX[7GT1F*QAHPC6-I)ED)4+RE19U<;[@(I./$VI MDL/[S/?X:II5@$:9\+';3J@:F&)Z)(_Z&H3-)<`$RX`*-R_8RF6B[!S^;3'\ M!QBULR5FC?^COW]V<:$*\BK`Y\-OE_\-S-6R'EF.U7X:?BW0CLUPP?$:*.JQ M&;[!I4]Z;-;7K#'5S._L*DSMZF7WW4K*+;XLYU)I3],L7A8R,\H MH$-FZ<\M1ZP@1`6_5&7+C78QO11WTB],^!]UVP"Q?N0SO0_F")]P*!`(%Y_U@W!\GO40VO;TQE9OM MFCP9CTK`\1985`'_A[G7@VY1F84/W[I/ICW?#)V2HT8:TY_LR*<07`I:`;*U M(BTVJ&-E,%&?&6E!XS/0^NGA/C;2@K9JJ*06"6I#RN-A2&)Q/9R!W.C_:YK@ M)ZJB%)%P-HB:X)>S!:G0KP+N=3I[85)=NX'?4;:"W6$.4U+D6\A>2;`_6X2+>FK%\8KZS]=JF[>)S(R\Q44WPHM7+Q67=O7"H] M-FC^AA_N:^ARA"UGPLPC6B/*;"-W6)1\2^TL\!>.:_Z/&7O),&_S;\2O>^MG M0DQ3K`%:AN".`>V:'Z2O06*CT5`=RJ/)%E2<6$5$Q04%B(8#>3@JCZB6V`-@ MY`U6ENLN3+U8/`&ISU[4/2H;OOR!JVKU9?UXR4DJ^D]1V@-'.2^OC@>*L@>$ M,.?GB_YW^@_1K&B-2L&P:9Q:_MQ!MCS&DK5E_=1V0RE\T.R#N+;%9#5NZROJ M:*1DPLNC6!>^@@FX,M342OC6FX*IO<"Z9J8V20LPEV0Y;*7T;J1.)B5AA:%8 MS-!A-%8=DZ*F]@KS2)4`5$.X6A/;67B'Y!>(X&_L[&RZ)NLEI^+@ M?2#4!+Z<*4DM1E7`G2HOO'*=9:C!R=W1*WZ4S9Z?X9E.?N5G/:.0M-25$!V* MN9+!3ZJRI4;6?@.+CH4D-S;>QWTS2Y3V9)<<50@RE>0T*4:\,N!R0A^IU;$Z MCD$'/:ON"FL#+24YT?.^]`INYA:DMZY#0@WD1SP#4+:;Z$CI>SKN&L7HS/MH MVHYK^D_7=#&DA]5CR5Y0E/[31^8O<)5S?8MT/1JH:(-!%HZM):N-A&E<6L;T!E9+26!F7 MQL+C@$@3Z]*I<=J=9U+;'U+)DHAL^6Q%$YN3($=:7L0[`YGK\?CR`!62NTC6 M!;!T565I@#4572K:6!V,\B!EEC_N`Z+@@<>^DJ[]VPG"L>=WS%WB;*0E,"K[ M_X#VZ^;>$G=!5:[-G$P&:G+QJAC=>K$6$^)D2!'?4;#6I7P*GBG='W(%C:CK M:.5DG-JNKH`\G7Y7%>N)ECJ"FB:0)/^)^52-Q%_<,=X_??5P]_9PR\$GZEA) M)B?%(=0"O>1BKQ9>)G0@V'QEY2`25]21/"B"/0-#+=C+1?V:K!P2]#HWJUO@ MRD#N3XI`SX!0"_1R\AZ-^H6TI`CJ]0IB74M:FJR-TNC65(H"*+L?)V^,9R': M9[[OFO,K.Y'*=/=)T-?_P$=([^BU_)O3X,']XX M<:A3,.F2E&,A;X"\ME]OL+X0Y!NA^Y:`]XWC*U:1UV@1?[6AL85'!O[A6'AS M6:SR(GHD^(S?5'X1X+,?G%KF52RE5%`K))VJ.)]!&L=2L&<4(*V=BW7SNM?& MM:&:.7$R:99$5TYA)X-!%6#UK_<.52VUD9!#J"*:HI=3]+6,.*80FAHO6\%* MZ`S/G;L-5O?]*&I_DB6&7/J?]2>JOP$_`#'GE#'#XY6&CNOC&F3]Y5DRQ#8) M@'M`R,7^A84/*][,\FZ7JG!?X;"?"SF'GUM??W2>@?P-OX0>_6=V/11QKTQU,G"5D>=7)'X%G97["[J M\7#2$C8KWN&7'(3,WV`H"I:/'0! M"OU1]]&"/-W,#FE^^ZGRGKV!U,E'R9@K73=:,P^I`S`'L-&IB_#V`%`/\G+[ M)%M,2GG4L:O^PQ<`RI[WW+2"DWS`672KP"R]&E<)X,STZ]P>'DV&6AJ1(%&( M=,DP:UB-ZB$.=F]L5M>)J5*6D\Y[\W%ES\5/K(9KY9718$,\N>3J`%9P0TW1 M,C2X.##^F&7&K:ZUG:E!G4Y&CFU195-;6]$)9U+ MOR28PE?GE7N7;?,ZO?P;Z_;$4_8]M/$(CQIL7 M#F[#LV,WK]1&9[JF;?>&W7XXBFYX:L.]<=1^7DP9REK:%NXX@%7_F3!EI`Q2 M>ZO[@X@>$_R,MYXY]M[%NJ6DUY^,=@$O`^QYF"V9:V=$5*V6PM[OI:8O+VTU M]WN^G,L/6XTV+H9HM0QJ+#=+/_S6;KE4?,9J\V&V5HNCTC)@^H!B&R51HWMO M#[-EO>1F2M]J*93PDJ.7PWUE2[CQ^F.KQ5$R:%"4%R2#&H.&C1=7#R&8<,QB M-_WOE0\57@')(%0!R1YO0&RL?.R'I):'#3)"XTTBY4$4O'1E-DJ<8-H>MC^]DJJDC=7LBJ8^-W6NE MF1P,M$FJT.(0'&Q\5?H.\IQA4%*EXWOAJ(N%TD.0KC#:%_VO[W[&UL550)``.>P+I-GL"Z375X"P`!!"4.```$.0$``.5=2W/;.!*^;]7^ M!Z[F,CG(LNQ,=I)-=LK/K*N<2"4[6W-+020D84,!&H"TK?GUVP!)B0^`!"79 M@CR50RRQ&^SNK]%H``WHXV]/\]![P%P01C]U^D?''0]3GP6$3C]U8M%%PB>D MXXD(T0"%C.)/'8QIY/L/9I.,<_>XO6/C^2__NGIO[P+MEAR,IU%WL\7;PIHG3T)"?XSAD0<*4/&I,XNBQ8=>[_'Q\>AIS,,CQJ>]D^/CTUY&V$DH M/SP)4J!^/,UH^[W?O]S>^3,\1UU"I>`JD@'X3BOV4^ MBI1)&^7RC!3R4S(:I(`_8WDFT;+L0 M9DXBA?89#2X8C2!(0K`D=B#5LN_.A<$19P@:%C?TZH^81,M6?JSAWEJTRW1\ M`*VO0.EHV=*SZOFW%J\0UX:(PYMF."(^"EM'Q1+W,X+:6D[KIG80NQZP2/S< M+G;ER+>WV`RTD<-E,$1+Y32<2VVMQ6EH8&L!KQ"GT._%$'/U*AN9JCQ;BW$6 M!$3V'Q1FPU;+3MG0P/9`DBDE$W!)0,#W6:RBY9"%Q#;<-C2PM8!?&8PK-((& M@&QZ0R/,P8]M)#-QIB)!+_3C4-GQ%@0HB(:?(DP#'&3"R?;L4[:T)1)))JF+ MU_56<0'^AC%)@($"E<2GO%["[/W\C:(8(,?!FR3U!$E#YA>D"V72RWC1S"ZF""UDKON^A\-H]8U,==]WC_MIJOM3^O7W6X+&)`2W MPW($O8N8_V/&P@"F%=E8E;PX1&,<*G$L6'K[TJ8J#&0J81PH-^42_K,HXF0< M1V@&69G$>>\:*1$/#/@CM6YS,I14_$\R1.=,&?YAG_ MA+.Y+6BI"&RW"C,.+<`D^!@FP;$`3=@B"7$=[Q'+22H\VZ/#?"&4<:6<$?HJ MR=Y`W*U[9U!7%4Q!>^LF9E9!JC8LO0[<="JFR)VXB1PD#?%<&AX'`\B.N69. M>#2S'$RVWZQ*<]#;)WHYH2^, M>.F(#@8AG?!N]RB5TU@!8Z1T`9V2V!D>1ID=3]+2=3LQ1$LYUS"#8B)T&!.3 MR&Z/_.>(_A@\8!YP-%FO*.:0*!,XC$!95+2.85`O["$$Q)J9)HB%_C,)C?0[=GT MAN'?(*S;@?YNQGATC_F\4#51W5#0DKF)@UY6M\<$6?(@:[C@/QDR'U"HJKJB M"\3YDM"I<57,CL]-H"R%=WO4N&5T*IWM$H\CI4\`-,W38ET1`Z;7S]'ZN\0@&I5I_SF^PT5 M,9?%CQLH71@N=*:MDSFU[R]UYEUPHLJOGLW6YA7$!F(7+-X\0#RM9VEQR4:(#11IGIGNM19JR-F$1`8?S#]T$Y"\A&[G M2JO3DE=/"TP%/L<43[259D;*O4%0=9+,_D99'7?[M4==@Y;)L<@8^NU@@7DR M63W'$\9Q[HQKN0@I-U( MZS-ZPKW!NX%V;[Y@0IVS3SU2!V^5 M9&_8UOCCNDBY+&WS'ME>^]@=5OGW9\A#.`I!\K-@3BB!*3!H^H#-\=66<6]H MF7QKM:5IJ4"VHN5H%\HY9;IB(3<4DD4C:0'(*H+83\Y[U\7.1F9G@6RCA..U MM.FI+34&I.JNM#,M%1O)W06L5FRW:SLN$)\RD/N:*V%&^`%30Q6!GM#IT1MV9]2=54+>VB?NV=E4MXAB)'/3XXWB6AEU]_M?PYC[,WG=T#WD%V(! MG4^IIG30F;J>WEV;U\MMM;>[]VVOW`U_I9VOTQ8[7[(53S7CQ.Z7OJQOB,'8 MBVZFT+.@&B6%Z]D"@JY\OOT'@N:'7A,(<#H;0,YBS/:@M>_T6J37S M02+=1D&W$\`17B27]$%PUA<^WF$_YB:DV['O<]NUI3>OSSBT43`;A%U=M$\O M9!37C(-B:3X!HW)M4:@-TP$B:Z.6Q?+BO@L>?(P#M1&1>2>D:UAF6AP'VAUY M"YY#1+-9*\>7%R%KP$+T[$!JHNXJ5;>WR]NB8%J@C&!$D]C1FZNH'G`&&VT,KMG&NXRB@NB50>)LPUPVZ! MZA#ATNGA>'%#WL7R&6#CY1VVC(>(HZ5J;AO+-;ZL'4*;]',\;\[&EWMVYH/0'+<"N@7S(>+< M0CW'[SG-3=<+WFMWG4,K[@,&VDH_QZO>#%98[=YN,D1KF5_3$*U5T.U4K*PI M*"%KCU::Y(X%:NL16G"[UJ-K?#EWK,!>OPQH1Y.QJBZENQNM\*WPO`I4*UJM M3K`>"I9%OS3>LFC+^"I0U:NVBL>.CKQ5/>JOHFB@?Q5(ZFZPZ+N:).M7NS7( MF0@/$#*3*AE6CBX"?T:$RI+%`=5,P.NFK+:,!PBEK6K.;[-+U65Q)$S'+ED\ MCB9QF(WS^M6F&O(#Q+%>(O=A7$YMVK?$^$ MHX-<]D,C]O=%-'(<(%Z-.AW65@J$A2\HDC5OR\'D"^(_L+HUIK9.<(,V7`-Z M@VT5"RVMH'AG5LUK\ZJ]MV"5;/Z!JR&ZT#Z%5S M>X4]G[T-)MDP=`$3YJD6T`;Z`\2Q0:-GN!#S60)N=@N)6NM([T:LC;1Z!M<` M;%$]9E+)8I6G^X)GW7(WQZPT24^XG1R_];K>)1%^R""48/B0WN"8DO=V?_(. M3Z7Q;NB$\7EA!KL6ZI]EH5(FK\"U>]DT/W];%>[7LG`%+B]C>Q;IYB39+Y<; MM>JFH"D&7]7@VC_62)EQ>]"T5^)_!J"SXY&#R84Z>B9N:.GNU.RHES3FQ&G+]C/[%Q]V@__%:;$%9(;Z.\E5%!N75ZU'&.PLP+YWF#\0 M'R*:R8LP:'+YLK]4AZ*1GZY;J4_I`+VY4V,RT=$M;!E)=W()0G;X00PF^3,1\KHZ(6(Y;QE,OD)G MABDM3J[8!N.'L31W^=A,6?B=-^]`0IW.U]>1PD==;=;KC+U M]]6Y3:6B=J<&7R4S:6<\XUS:QR#>:666(_F[J@$O;<$K-K%[F:\0IQ`09:&G M>GU5S%_*8F8L'O!X*=/N!5N'K^Q^EMHIX[NRE&O^]=4LSQTX[B`!(Q-P=H`^ MV5J6B0%T'>T<[?BDX@!K?F_=@+=N8?&UL550)``.>P+I-GL"Z375X"P`!!"4.```$.0$``.U;;7/:.!#^ M?C/W'W3T2_K!&$+3NW#E.A1R5V9HDR&TTV\=80O054B<)"=PO_Y6LLVKS4L2 M8G-A.I/&]FKU//*N=K7>O'L_&3%T1Z2B@M<*Y6*I@`CWA$_YH%8(E(.51VGA M_1\___3N%\?Y]J'31K[P@A'A&GF28$U\U)NB3@>$,3)%73P8$!EK1>52 MT?PK5RJ_HX883R4=##4Z:[Q>&N4XT1P?L`*=,,Y.=EXLAT\8Y3^JYD*EVXX<-"+*KH3.[^_KYX7XDER^ZW3^U; M;TA&V*%<:+&2&+]YGH/\%A M;=_0UAE0JH2YT-)^K4"4UJ"FG*Y5#E_:Y2\NM5@#\8TKON-(>8#HEK\ZI^`ZFD!&:U? M.JT9`X:Y#XLMBYX8N>:ANVFT>V!\-UC"[2'1U,/L<6!75"TBQ]+;%7S*6XS- MVKR^"\MI""JD%_2(XU/`8SRN@**)%BG,M%"N71!U(QDW4<&A4<^F.`Z0<#CHT'PD&YD2XT;DY0U MQ(EEEVB5Y[X2%D&K'A.*^+6"E@&9WP1G`R._8G9HK:#(P/RRHX.U..P_U'[& M0GTA47M6!ZTB%`&KKL,_>5_N3/GYH4/H'0H&-JK"987(Q0+S+?A&2.M26DO: M"[2QYJY(C@NI=)]&><9+-(1$0+64"N8>L$IT223C^I44?:K;0J49X:)`ME"; M]([ZL+.HA=-$`ZMA"O!T\:PKAE/CTZHKZAY8N23S`T9LPRU^&_04]2F6,%5J M67%O/5F7\/X.E(XQ)Y^JK&N8[@/?9)V0'-NFA@X!@@JV[ELB[ZA';B!\";]# M/#$(8]!7S(*T/.;PTSY@6=<[#\R=[U<3R'RI(NJZ;^WU>FRF477NF]W"!.SK M/FQ[7^'=$M]*S+;(JXE'E.KBR0?"(3:O;K)/KSZ7K,.M]<#T4^2? M0A(ZX(U`PH'4FW8E!G/V;/CDOKUBUKKG?O&90.X%]$+[!BWFH$V:)/P_Q:V> M;_I\+O,7#O`8_9?X'R%E`2OY"\[&)DQ>\UOB!9!?P[1U"?L''S3A$I(8RR]F MN^>R/GZZC&L)NQZ'GB8'S$UU<4?:2QEA;DJ*NX%?S!!S4TS<#7IZCIB;NN*. M[V#_9#`W5<;=&!X^C8L6Y&W.%^3I,[F(^*\OC'B=/O**%N3SR MA7E\ZA1G$Z5=N]_BK]CF"X9IYCUUP)TZX)ZK`^Y@#1EQ7_I&#WWBCHP'?2IL MYZ6O>^4//58=LOPT#HG.EN;)BX,>X;?%4]/W43=]OVAW.\7#4T=X3OJ03RVA MIY;0Q[8C/BX#S*19[$6'GR/,]M:*":=.LO]K)]F+=LW'VWF&?Z4V^T)S0Z0M MV)K/,Z;HGT)FMZ%'4<_>SFDON6X9W3<_S'=*N/,?4$L# M!!0````(`'U-G3Z.Z=_#32@``#L9`@`5`!P`;'-T&UL550)``.>P+I-GL"Z375X"P`!!"4.```$.0$``.U=;6_D-I+^?L#]!]Y< M@/4`[1E[)I/-S"5[:+]E&^N,?78GNT%P6*C5[+8N:JE74GOL_/IC4:)>6B1% MJ465?'M8+#*V6=3S2%4LOA2KOOO/IXU/'FD4>V'P_:O3-R>O"`W<<.D%Z^]? M[>)C)W8][Q6)$R=8.GX8T.]?!>&K__S3O_[+=_]V?/RWL[MKL@S=W88&"7$C MZB1T21;/Y.Z.7(1!0'V?/I.YLU[32#R%G)Z\@?^=OG__'^0\W#Y'WOHA(4?G MKRM2Q\?9,\Z\%O"_8GP@@$\?>O'I)D^^GMVR]?OKQY M6D3^FS!:OWUW_>!;IQC+P#*;B$% MW_#ETGX:^T$1=1MH"?CD6S8_C5\>F[X_>G;Y[B MY2OV#@CY+@I]>D=7A`/XE#QOV?>)O M\.TQ>TCZA'_/?CT/$\=_1:#E3W>SO"O>S2Y^RW1D[3C;M"??65#_;57P[6!( MNX#,\?'?7C,<%83T*:'!$IJEOX4.--\T[1]T@7<*W89NI4,?%".,I)P3YRD, MPHU'XS?[P%GO']]2/\E_`Z_@X_')J7@%V:__?NTY"\_W$M;)-%C>)Z'[VT/H M+YGI7?YCYR7/XL&<+K=P0[&W.2.0G$956D[DBI[9/QO>4M;BK1LR`]LFQ[Q' M(;Z*PDT;7!F*D+U:9]&:1X5$1.-P%[FTS<=.0,FORP2R-VN&A@TN3`#&6AH< M_W3_ZD_<:(A?"!(V\!+*FW^7JFZ_!/S^L%_OH2X+_8%<2CD,;!YU'K/`]7?@ M[F[#"$;L:9)$WF*7.`N?SL//3$7#(&%OBN%9SX*$LG><*(RHK\YQ3*W?5R,, MTLX[L:;UO;V$?=N0V<*$Y)V3K'=2[IXD(:D^@(@G6!D*MC3RPN5EL%2-9];> M#GLFL#MS?)AS621WGSA1,CB],[KV@L`V0ZTKLL8M=5@6'11;-BS"F([OHPWL MNG[T@C#B]+1.J-X,QYVHX`K'T(33KCE(T.U__[V1U[,_\FH')P/$,A]CZE`F M9)A!JM''6..6_S_'78@:K%HO&:K;EB-H20^^]`EM94LCVM?7TM]4!X%Z32!TD[(4?0S>L)83V1<$587S@#"B+A M0<8>`V>!^@I&L(#OEW_(^;L5_A[O!'EXGD?4B7?1,W1ASJSS]=O+-'S],/G[XR">X_,>O M)Q]/WJ43W!C:,&W>A`&)H3^FW"3)'H"LX77R M[5(;R5K1+DG$=:--8LA#^#GW+(U3E'HSG.%9!5<,QDTXK:F(!%C=X7,GSMM, M"&\U(;,XWM$EQFF3.>(X1?S5R9N34[)U(O*88G=VR4,8>;\S;3[]YF1R:[BQI*+789R:^BG_\>G:UT.:!N;5^' M/60L-MG'J^HW%&D\MG_@NZG%X(S!^'OFU'/4U7@&%381IE%$EW/GJ11U";!W M$0Q_BF&B60S'\$WI"%-NR\.V<1K@WU=-(9)MNQ*F%?5IG57K.P0TDR$EH0DI MQ)`MHX3J7&L+LH;H0>[GCT%M^ MJ&.LO,K6.!K<`%ZHL2%JN[JLQKJO)>DA(;9"M\4[0MV>NFZX"Y+XUGF&&99> MM56-T2(H--!+@1(&F&W/0I18)2?!O"'9IBU13K-;0LU:YBIM\VQ"98J'HT8V MQ#,G^.V&:=$R'*@Q.C]&VH=6PU?:`G?B!A*+%H#K:B`T: MD*+%Z*;K#3M=.H&Q3-]5.U#FV`><'NNVD"53"R!"FUPJ_@'RMGKJ-['JV MN?(WB*.;@A$]TVO;6)NN+?C4;&&4KI@GQ`!LQ$ISR;0T$_6P',&TXHIWP'\)P^<7S]YG5 M_XRCIOOPA&:J<-GV]24\^Q]8_`DK$-(`VFCB&8VP(H8E=OC,`]OM;12RMYP\ MWS)P"9NXP6QK"PG6/E.5_]&+X-BW"0UA\VWP6].,!L#[VJ)KCK$R;@G_AC5V M$K#";28X(3Z-V72_%&^[I-N(NAY/9X1@`;N?I]5+1%NM:CP9X<9/'`+$U35!!K-\KR-OQFYU*W1ABI#8%/8^< M)87Q.#U+BG(Q,5+[?O@%)E!\)"8?)A_>?4@'X@^3]^^^QHY[?6"N8DZCS2QX MI'$"GDBU12-OBA2#JH&=1Y(:X+6M1`J3G/B!S0#A/S`+?'1\`#5-SITH>F93/NVE)3-9I)M,;8CEUYNZ,+)M MOJ9,I"?+,,:[\`]:B`YOTKU3($Y"*/L]\V;I-@/6?HL59HM\?V8(?IH=FA?Z MW50#]<%T^#]*HA/@(Z2)-!T"YHJVX8A8T78$*US5X:\1XF'6DIH3T;TU)7(8 MA"EJ@784)VHI""/]'8?BZC46*RBAAJVFJO?WE_-[A!V91O,93\@`\_\)A;GZ MS>K*"]@BVG/\VS#V^*6SIKN6)J)8-RC-:17W(MOSL;?L,B-0OW0?Q*'O+?FN M=7:L1.X?Z*AT[J\4*MW0Y909N+.FGW>;!8UN5O?\1O_-+N%%=MB# MHXM=Z0J]/)2G[7&X`[_:J)B*DH#+P@1:I*\JQ#\-.I#W0$IT002[SSF[M!M2 MZF="+CQ_!ZU'8Z:E'!\7WJ.W9$N;^)9&'#NL%6X=;S]_63M1]"PPC;0DF6&, M^5C>=#!C4;NX*MJ2+6L`R]0\/1Q(#KM@[4:AF@DGEYP0)IL:UB1=RH+\.#U= M9NJUP:2=HU/W,BH_UT2VP\,;W>%$NKFU<1IB MC>^9$WMN.S-4]3$J(]03;3O3E#)$,4`EKUI6E[+9H;F\0UFTM#W>#;+EB1867YH7CL,9 M[7/0.1U%VW&8@]2)&"$>UA1:.X679P>-%$M6,`:W\)DF1;+^`VJ-=N@'QW8Z M$Q9V=3!3NS;7A5_MMB6-XT^\X(0?0ES?GA$&`U:B4]E='S2!8*7(Q@LI;%;A M;F*/H[`UK1TAVHA",;(T>*-W0"9<]$H^BC)8MU&X\A*-0I<;H%T@VH-8NBZD MP&;MLU?`-'[SL55V9EUK+P[IJ66F>03.J99ZW_[H88@/ZC M&5::V]80(;=MUI8<9:VQ*XX49GS%=.6<69P7[)C!9;I,.9L#@X?FA00 M2(&!+#@(D=,H[;IZ^:@8%^#VX.53$CEAQ.9V4$!CQA8E/"J87YF&,HJ7JQ5U M$UZ![OR!(:(Q%)_+,D+R"6'$9@7>UA=ILP>;!#8/Y/__L3I\+)NWTQKFGZ/X M:MDWT>6Q']Q;YMPNZ"+)G+G2L1N4HU1E3+&XX MZ#.FM<2YMR3-S*Q?96SU9ECAO7*X12BO'J==S96@4V25 M@89\Z,V=AA0EL]&6W`:< MI#9SJB]J,IDT@0.7PIH)MD=?GB"6>:3RA''.8JQF>@"&N[+JBA?7DJ.B&Y#,IRKV<.V"M` M)UJ'C,I5Q*\?W-%'&FCR9LD;8R7*TD$O,F.98+9MKTJL]22._"\#9Q!&$D5I8&/TUI1&#[=>5+=H/2'L M)Y_F^9;+HOP`:JN4'"NO$@/$J> M&1DE_XIILM9D,_SI\RA/:9URO2ZUJ4CM*L8'2F7[FLK.JU%G*BRPIU,E4&*D$7RMJ>8&^3IRL*9LQB5JY-R8H1CE(K,:D80(M MY`GO@.0]V+[$U2@7/%JS#E*61E\2>_L@2\E!E^?A!DYS=/O,JL98=7]TT(O*/R:8[6T3J$#6 MR]*PAL<+:$G*3?$W(R/*0%W0]+^E>>NYL_68D3;O3QIW@+9EV9)B:1>S(S>; M&YOF9"370[@0.1+BK^%R3;%DR+H8SWJA3K=4JLU8(RLR8U%""1&UWFD8#*AJ M5*C&A'CKR@1*;# MAT(?QWBH3;%'Q`\FS5VL5'@L(YN.FL:U&G`:TJW*29BZ5*Z'I;VX'DKR]C3^ M&1++38VQR:S*7EGAUL-$SR301P.QLW;K/,-H93P0U.3&,@8H"*G-OX')@)9? MAVYH]$*09))CF!ST1F94LX06K!B5?#JPE7\7=.NOCF;7GK/P?'YPTW%"4.EA M+"-"(TG3J8&&'=K\H$JGXR2AU,DXS*P3Q]S5^FHZHXUV.3C*9?S1+=VC6D88 MS=)/%,LXU3--]=)#,):VHU&IJP'E!K5MP75H]=63:ZG&>6?C#/-PGGDHRU48 M,?@NI4N>R.C^(8R2.8TVS$]*=G36M;4>G%C&22?.`D2/1 M`4\<]IKP/HX3UDDY,]A(='0>3MU_[+R(5DZ"X;Y<0R1)FPYP-=2N51%5PR?*!<88+U0`43]6S3`UH875N2I:BZ MKNSL:6@K.I*8NV+,K$70F"FI_1VF/CGR^)E11LV8S^`.GHF/?P;>?>8]PAEW M/S/MX>WN,(:7>?+^_GL\\_D.GY M?/;S;#Z[O!^G]675YP]?#VL[&I4U&E!NL,H67(>V3CVYEE::=S;.]7#):][1 M;389O5F=.<%O-X\T6D;.2G\XGK#`KW2$GM#>7U2!*ZO]UL>9;URR<:N5ZL+.]K((<_GFH)25?")DR&6?\J MH#>L>D&*9&(DE\.NDOODTCB>.T]9Z9ET6U06]R^9TBCT[\`^D:KN]O$B\NJ\ M?;X!:SI]*.5:%5S>'Z]HE/68:;[B>LA$.K/%F$E8>A-',1P.K!S??PV5*@CE M]3_X]2H^&(1\,"`T&PO&Y&^NPV`-)R/77D"9ZSR/Z%)9T5XMA8NB:UEQ5D!KNG[B[2 MS67:=8&C?EUH"D4\A)\UE6Q)J)ZYL[1341H'H8M)Z6=Q(_":[P7<+'QOG9:Q M2D^BQ)^+9R'<<3CP560%Q1B+XI7`GD?*S.?$PX+XB]DX M^=W/IC?V6IE/WV]6;';/J_?=,9N]"8`#M\;X`8Z''QU?$_K5K@NDE7`'FOG" M]P!^]M:Y[0C5%G/9JFU%1`<$>H"!E.MOZBO8/TK=H"QB^Z))!9I%\O3L_:X;9DE`] M";K"^B8D[8-(+J<,']Z`P1+Q1MN!=`LRR_)]HK$./1=>[/IAO(O2)7.^3WA' M?9C1\V(QQ4YB'N=)GY(S7[W5<7"O2(GS^WD9>7+]?M^"M6'L<-JU`^J\QVQ' M)>^39)V*,D3EO?5\4^97Z)OPSFO1(4,,`?V_$`E-,HTBF)F,(=Y>?E;0E,J\ M06A,F15X(O1H,GMZ44PBT+H:50K M0YCAMZU"#;@ETRY(P\S:#UP#MS-.4G*2.H>'I?99@;'L1-FH$HI&"EGY]61J M^F_&PKY.*6'KU!]Y[#\,?!?M]UG/3)U/3T_>O_N&*S/\YN_W=`U^9!:LPFBC MF]`TMAY6>0W! MS:>0[N@6:G`%:_,)C)$D5G%S8U)%9?/6;*Q/C(U8&.C8P&6^#T&=BXUTQ@-+ ME(@^,%_E/=+4%WT.DT9;:19#VF4WI)/OK+?D87W_M1E_OWEW;0A[<\09'#*ZT9Y>=V` M#0->NGIEOX>?>/#P746YL%KJW#%*N5^MV,J79*E&>8/ MKR5+._N%C&6X["6UM$G*MT'&LQOU0[7+>78U^SS]?#Z>#S7VF='A"6CR M-!,P)RTGH$!/WF6:X.`LC*+P"],P[NHC^ACZCS`XNUR`K!P7QF4[*U-S>W^1 MJYK#KG(*MP*9-\&EF!@W1HAV/(OCG3)O5K4)8OCU'LQ*L+4"G[W8A2H@Z>0O M)NG?K:CMEM\F$^5%H;A'J?>)$24>P9W3M!8$! MWH&MI[*4G2[9:,O\AN/?,F6[V+5MT(R)].LL>+JZLE`!/"(2`/=+PLG"3:@LWKJ+<.SG=11`/W>1XY MC)S+XUN#)?_)3Z-=\]?%9E0WJ[GSU.H:^G"/QQGXAGZ]8@#$>J^V!$!WV=M M`9\^@KC9,V#K570[_/H%\46DI2YE\583(EZ2>#XI`>";B24(I,`P(;`#Q!:% M#(?-;525G_F_^S9'ZEY^"MC[\+W?Z?+/H0_KE1\<+X`#HIN@R.\UC9@/#=87 M[,=@G;Y0\7I;NI/#'SWM6^U19=D[<"6-;/'1\?S MX;SM>!5&QU`/J;QO/>'GDESLTGTH<.;(L+W(@O+A"BA(/&29\.+@&9R"#&^;0CE0;XF0L-&^9HC MJI]B9*)I>!H7'M7E07O4;,;Z!F&0_K2DWK[?9[_Z>XKFCJX]8,"F1,YF?_FG M;C:LG33!S=/\&6"U-G`K`-;W?;D2%.T(-$37@W.FI)'CSX(E??H+?58J0JT= MEB8H`%=5H0&M95VH0U0H0]:0$:$-454!S%BS=F3)%I0_?/P'U\&+T_,I<%F M[5/O`5(Z`/C["#[KK3BVNG`2W??=:X?WH:6`][^X%JWU3[\/4:D#V>XR:TF@ M*:(Z3!F>)6"Z\IVU1`WV_C[\YY<"S,^-=.CLG7+L0:H=28B_$V@P`EN_\F+7 M\7^A3G3%?K.?^UG;$L_>%:#W+;X!L76;K\-46GW:E$!;PAN/1C72\`EM-TIWLDI*K)PSJIL,K21/L_.:F(69K*J(! M6@O[3IM61I$13"#2E__)0B_!/?4B<.`+GD$4211DX;V6*O(!@+5U:0A M>LNK2C5DQ>H2!(Y_`PDB1-+`N`A=?WX._5V0.-'SE>?32.:$%.VP]$4!N*HG M#6@MZT<=HD(O\H8D;8FN#=E0ER>6ND^<1#HST3='VY'2PM_;F#+";GM_2@58 MM4V5N:(B\U4O7X6F^.YI(\);H7_UTC66-(#] M9I?$B<,CZ]5N0RN$YCP,J.RYD!8\;#L2/7B5.RE5Y,RB=&-2DL2^F<-\&\^Z M?[/B$!]"?\EF29":)'ENJJ%@)HMTEZ<-L?R23Q=&UM3.E$(]$5`0A[ZWY*5* M\DYX,9/B=G7:BR;J`$L1YQ"VU*1Q62-DU:I`K>F0%*-]91&@ZG]$U"*U=W`C@2;+-BG6->CWHZ5W,;5JT""#=3/9@$AQK;@%`VNJT@2Y?J.U M)9?8456HCG<6E"I.:I"EJBOD"$KXV?V.<,@82^! M];^>!0EEKT^_TM&+X*B<"0VA96WP6U.L!L"U%%UA<%QJ3X3`6';@KMD`.V/_ M;-QV*S5$WFNK0:YML"FQVM]5*X/3;,-",\+;82^>I[X??H&,5Y($P'=Y[MXL M,D+EV-KU@>3B$ M5!/8826N0Z%>2X>'DL:]-^9%?O+FK.1X:XH+RN:8KL?O3;-_^S3+[S+=0##: M[_SWNCHB#4N.`[M'7Y'T\GHD"Y9>WXMUF^CO?>A6/VML:Q@VGL;8-IBL.GR$M[5>(XM M;YWH)N++PR5/QGE+(QXNV'R0J99$/]IL(B4Y[#1E8]O-FK%0G(O&:;SGUHG( MHRRSZE#GM^V19Y&J3)"PM4(JFF:'A7N;:03K>(PF#:B=[I*',((\7LW&4I=` M-Q(5"8EQ-*$?0J M<,$0]>!JHRP?4%49CS>S6?!`NRYJ#;MBJI.LI@1&^MM^D(\IFB1%9A)-(EJ. M()JD"EH:32)':TTQY/#TT21"+7"6C8<@'LO6\V$<1K&'W))"-H"/PM'GI<]* MHR*4BE(,)NKF."-*$_P\G8TA;FMCBP:HLAK=9.]N'[1'J"[.OB(G M;TX^D"TO<,BT_36&=5X7%3VGP;)^T4UFJC`I*9<"Y5LZE#='-EA13>^"+F`W M*XMMO89\^S<+WUOS/:E8?Y+>L@\2H?(PZ\?4(B^B%'GH.%FW.-, MMP%FG".+5B=A\)@0^N3Z.[XZ<&N#S5B'EH--;:Q#R8'$D(<.$8N:QC/GEC`:&J&V;OQIMK9!Z7JLE*]$RJ-JWP9FVS`NJY(U[K(4"ZQHO MCL%6YN%T3=.J[170RF8(E4XT,DYO&.;I6"%RSIEJV"P;I2.KP5%$F*CR.:AA?`D,UKZD$2N#3BR0W# MB/G<](3-;XT\!'2!V@BL;C28ET05>4S>Z7J7.=.T\9Q#,:T)6G MTO-&*:2M8#,R^8YP.Q:VE;\9?6VO-9.HU-CCA?>&7Z`=@#X5@>IVPD#(42;V M&F-)9HD*=H::*'0I7<97S&3NV3R$C5T_I@OZYYO5CT[T&TW@FD)1C%!A^QWZ M05&G%V6F/?7;#)#/^QS(?9G)HQU%-B&6G$RV(63Q9,W0Q+U@[A4@!P)T=>@@[DT*8D/OV3L M@=:R3,O+:;F^XVVPETG31\?S88)V%4:PMBNF:0U'$B:"2/,)8TKY?*(U%WLC MN`EX]9'[B$X`U$SF]"DY\S5351/)L>E6C52S$>ET\T9C4-.`E(&'4 MOUE]#H.?V:-I&B[.O$0:#7?YY-(XGCM/\A.R_KM'""^Q\'KRL)0>^QXVG*5W MX/7:!N()L*W$;PB1,'T(W\GULL?`7Z&JUR-_4GX75#P,`C?9T^`PD"S2YZ$$ M?KR8]Q4_A%&R((;;K9.\/R'F-#-U@^?*:T\B#\G MZY&]AR"!_+A;QDVO^;68IW$X#>EM75L/>=D.1')'V,H37JPS*<,?SJ6H[JZ^ M--VVUIOAK-95<,72 MO`FGM76X!-B^BJ=Y^TMM,-;6QCB+=+1Q69.=Y2,8?2UTG2>4=URFJJRY#\KN M%+EN5^2K#Y.3TV^YK;!_?C@]'8/:3^.8)@VWGV4-$55?"KFB_%JL=M5_'YQ< ML=)6=K-W:_?_C;!*`V:Y_H:C&VVU@XF'HLCKW M-KY:``;D3:H"M&!M?8NW,UMM2O5PWW4->U9O@90T0SYDD4V[XZ;<.+$X8"M# M!+`MYY7K9_RBBFR]H&^/L,%@0B#?*]`U'G;9WXQ$&6NX)%497L`.9_E]$(OJ MA4>;-A';T.@R3&082:I:VM+J*;G'M' MY/(@N6'<>2O((G,:N.ALK`"?*1+]/>?>EAF>M^&^6_A]MIA.?'"RNX#G-DPY MLY^6<.F`^JMC'C3(MZ43V#.&*<&*V7#5XX?L$X`7+[;?(@IH:-XC+X03Y`BX MOT__\N7!:9)WEV?AY][[QB*4QJ/&>7& M^,-&';IJY"A:H@X>^S`:K1`.2-SQ#"&M\8]B%&E$730P'TOB?ZZQI,?5A*C, M+2Z#-<6F:MKCK"(:"8@5A#%R:ZL''=3:$7G6MJC;@AYH>AC\D>EY0W2_NODX MM%P5R6^*>S`=UT3MRU3\H.!]Q13KWEL'WLISH499NB7,GGH;^IZKON711A!A MZM6*4CX-,Y(:=DK6`E(]PT8A2PIA(J0URC3,Q,/7A!""B6!Z\*+73^$U7F3YS"2 MQ'$;+4@)G]&!C36'80;?5-$*:72'T2NQL>7V*E)8%/F_[W>+V%MZ3M0BSU=S M/R/)^65*6)G_JRU3<_7L)V.6`4%5+$AV;:*LMYY";ZT.);UPDB35*N5KR0<: M+R#EGC`&&*1/B#;TB`&5[]QD5;\:QQFY$/:@HJ-2'T%,.`Q@5`K0.@M2>+,# MS:5YP.,A(KV0&;U]W.^V6Y_RJ;P/B?6N_/#++%B%T89/[1NVG8VED;9$VI'+ M]T2ZL;*W*6),0Y,J#`0)2)*2Z'BRSPA>9:[%E+=Q:\Y<'*D`0TMZ>4&&CKRL MZ6(+(K6(&Z&!$U*6+BVZ\+?I#J#79&ME.MF_K]G3V<_L)_:/!?,3[(?_!5!+ M`P04````"`!]39T^O<,VN)H5``!=4@$`%0`<`&QS='(M,C`Q,3`S,C9?<')E M+GAM;%54"0`#GL"Z39[`NDUU>`L``00E#@``!#D!``#M74MSXSB2OF_$_`>N MY])S<-FR^U4]53OAYZQC7&6%[>Z9/550)"1AFP*T(.FRYM`(DA1A^/)N].CSR``AQ"M/AXE,;'?AQ` M>.3%B8]"/$(?#Q"^.AO__6G__CPG\?'_[I\O/="'*0K@!(O(,!/0.C--M[C MHW>-$0)1!#;>L[]8`%)\BS9R1ZA\GBY.ST M]/RD(#S**']YC6&-^NMY03LY^=>G^Z=@"5;^,41,Y6#+Q9H1\4W>OW]_PC^E MI#'$>;\]SCP$]ZEG7)Y4@KVVW%!=LS^=#PY.SZ?O'N-PR/:!Y[W@>`(/(*Y MQP7X)=FL*3XQ7*TC)CC_VY*`^<>C*$X(;6$R.3T_^Y'Q__G2CYA^3TL`DOC( M8PW]^GA7RDL_#&D/D'["O"44&-A=A,_S.^HR:V`CA0BKD%% MN?+CY6V$OVKUB81Q9X$RS9[]5Z`E1HU\]]X`"Z;2'9ICLN)6K-45`JZ=1;G" MJS4!2X!B^`+TC43(-H0P*YAPM"]0>(510B=).EE"/9"4[,.9,#7$I4\;CN_0 MS?^E,-GTLF,!]\ZB7>?K`]7ZABJ=;'I:EII_9_%J\]K4)_2;EB"!@1_UGA4; MW'L$M;>]@#BS<[VYJT*^>X\MJ39LN0RG_H8;#2%,6VUQ.AK86<`; MGR`Z[N,I(/RK=&1J\^PLQD480C9^_*A8MGH.RHX&=@<2+A"<4Y.D"`0!3OEL M.<41U)UN.QK86<#/F*XK**$-4++%'4H`H7:L(YF,,Q>)KEPQ-3;>D?=4@IIL MX#4!*`1A(1UK4-]GRUN""6-BRGC'7CDQT)_IHA33'@JY%Y_S>AFS]]VOR$\I MYB#\2^9[4E$C'-2DBYC7BTF]ZW+A$O\5([RBG9]YN6E\0K<7"]]?,V?W_0F( MDO(OS-=]?WPZR7W=/^=__E*9Q&XAHM)!/YKBF!OBQ8Q"Y`=)\>61/P,1%TF3 M[<245A=Q3#M8(7^3H)2T:BH7I"ZU3X*B*?ICS4[:.XVC,[K/3&,J$EYGL\B11Y69`T)`>)]I+A662THWDS,< M`TYK$+M[Z,]@1'L`,*?N*<'![TL<417C;'%5H*K/.B:\];7*+>%[1RPA,_2K ME+`>[1S,+3I3&(LGG_KH;0GK[B#NQD]%;`K$OK.08+"ZCG&[4^Y0$*4A=PH) MQRE)")REB3^+P#,6.VE*)V/8+QB;+0VM?VY_DU-G#;"7,9DWC/V,(+GY.#L5 M=8VP-_B*KEI%M]ZY;?R\JVTD./$CTY8Q3&?N;7%RUFD!N(K1=DV<009"N MTH@=WSXD2T`$]Z#W.(X_@^1A_NR_BDXG^K9@OPWT5FFPG8=]!O),@!^G9,-[ M[S<_2H'`!D1$]L,LDKJW<]CL6"XA[YH3!!;,A`R"]P@2'R(0%M>!%<.^!G,8 M0-$:K<-D/[@Z6@SE?=5WB7:,6Q8[@I%RU+9)[(>U+;-C6_WK7&:ZKE2VLLS[ MS(Y;!3AVLXSM9+!;HZ$V\9:@WCY6U[I'L`)9R06(_,9@3PZU,?"XCZB%H)32 M?ABEHN_%]S6Y'V*!/_'4W[!]OQQ*&:']2,HD=^QV_=)'OS]064+BS[>13!4$ MFP3V(]>4V#'7)PL=D`9`V!WQX-I$R.?[3#6E\RFALQ,JB;!.W0C]'>/P*XPB M`5;;C^R$9RO??G;FQC"9$KP&)-E,(S][E$!W/VL6)O<9B,:4FMQ.[-0R.^9; MU(+HP6SZFLP2[CV:\@6`N#'X&$6P06'2'7*V8_?_EU[3X4%C>'[+U+D'5M;$5$]L,FV>*>_F!LB]M^',[^\N4.Q2EA3ZBO(A^N M9#BH*"U8#56(J$3/8?G)FF@^X=.A2+%^[CJA.[#Z<-),= M#)\"090P*F^NR(-PILR#L&W`PW,O:\**;`B9**5XBN=D4DICZ],_`4OZ!L(+ M:B/^`GQ.5S-`'N8\O4G\D"8\WQS=52N4ZM^$J3':`52QNO57J#AL<#+F4=(= MUS!*Z5];O:)O(?(63!G(6T=#A^7(%=W'^Q6KK:;5!Y=^#(,=9I60;%]J M"7!L?&XY?@UIR\G5<=S>^';]#6V,"?]>3\LG@T:UV6$C4X+G,)$,[.J'EJ-: M%;6`R\F-69EM^N9U#5`,+@$"<^'C0RFEY5!*Y2YP==!EVLY(M[2[LO34*9V# M'M9TA\!O,2_!'!-0R37>S(MP@<)Z*]D1Y">0+'&HCO@YZ+>/POH.U!>#10C: M.5.5W<$NZ//1+#0_,:'UEB(6V^$,!OD@8+Z18C\@I+(<3*',^WD9:P>45SY9 M8&JZMX0?1CV"%X`DX8-B0LL!E8F]GQ!!.S`M9J2LBTJ35DRY+4K+497*O9^@ M'SM@O<(QKUJ2KS"J9.5R4LN!E0MN768122P#KS`3LQI;\3.^6(A<;2F9*7"Z M+*N,5Q!*[?*8RY-5<>\N[QW5?*HFMQK>3NFM&X#[<6CS@!P61YP%4['.FQ(< MI@'35^WG=C);;P(]=''9+7X"_.SW[P#1_HAH'UR$*X@@Z[0$O@#Y)E:7T79# MT-5C3QG"[;"":T!U"&"&#>V"%4MC^F]?,@\HJ6W'6RF\P]DZF_VCX4S;#V9; M8MO.S"7.\S0EP9+5?7NF:T^\IC;(NY;K(_*BU?16P]0M?CFU.CBS5E[J7,,7 M&`(4EI$4['4G>]8C'(HZ;-;O<764*`ZH]GW9?.CP[TJ%WKS%(@+\O$<$.&O% MX\U8$05>+>Q9Z*=7"T]`;C)0A-L?PU#VCF6N.`B_-\TCWEXQH\@P%3Q"-0"\9[Q[BO0?K[&E(V]?5'>/I;?1W\X M-G>),\M0MQRR6)V`U34`UR#[7W@[WH=]#/-5/XU<*Q1X,Y^#@';3S2O=H*,% M>*0=]X#$?2)ZTM"+?0SFT$\CQW+)ZZ_=.SDTUBTR&IY;?_=FP,!L2Q(BKOU- M?K@ASD3T!(*4R,RC'_MX#:2?GOW/JYOX<:5X/UM0-6B:JWZ+">V'_-27SKK* M5$TZ3..U!QWM^M\[V6T%!`<`A#P6O!@"]Q`!=BI*-1&^WM#@&;$-="OGG&/Y M&@"ZW_)?\^J4!4KYC.^"*B.!/0RCQ[,([:.'EJZ5=VZK['L)1M92*QSGO* M_&&N5*(/$>NP!R1PJU2>A2ZCRT:BVP>.^1RLP]B38KJ>7N-TELS3J"BH+-ZA M*,A=-@^UYHZ=9CKP].X0-J'S;,^5M<7Z'(6[.X^"](6NH+?7LH5?)N90WSVH M4J#,8.\UUSQ@\P:%=CW_<[.&Y>"F,.`&(3,$*B%)K#*%9BQQ9;[,X\+4-56T MF5UV`_KTPV!3BR4+2UMW=96\#GJ#CX=[C@,Y^**B>HZ<0`JZB64MVHX57IA. M;ZH0,KJ`OU@SM\(BVEH7>^&IOV&FKV4#+1X7X&\IY=C90)?!5\KQO6$BJ'&[ M8`X*]1R+@KS.9=9/CM_)X;+7V*F\:\'7S;`/NO_ZY"?LTWXA-0T_!WJ['R)S.,D]F7Z=#S.B" MOR'6S*THNNI%R\.\6$BOECY9"/'OH'?9R^A0/;>+<^?6BZ(<#`_]R,N!*Q<* M,8-E*\0;WF;(-"MFA!\&7!N>V>1PR-1VE?H_I?YY0KNST^^]8^\:QD&$Z8P( MZ"]YX?*,W++289VERQ4:-[`2D51A-J(3JN+=R MW[/[Y'J0Q)%@P::0.S3'9%4+_M@.LI^:@RQG\JI<0R2G;0LC&S)=U`;3FG.A M'@'+-4LG<;U1H\5E9/#HP;+-::ZAAU/CAP6;TA673BKP)2]5UQY`/S<'4(TK M7[.,K58"%3[C!"B+WW1PF,QZ+)),-?:Z6W1IKTZ_V!EBL3RJ58U+3:C6<4ETNFM='T; M,+;H]8"OFG:\CVY.+835R"R>ORZ^0UDYUN9HG'ROEX:<9R'/FO(@\K+&;$M& MSC-?Y!ON3$*]K.0J/G/.:R'?L^1ZOTE@01A@-P"E<]H07C[\S`.0:<)6=(SX M?/(*14=;'?3&X:G940L'L=`6PM(0]!JO?"AZ)"&A,PZ#RIK*;$]BV2U$8\J5 M_@16,T`$(-0_-M7W2I/9GM]61;6PJRNY`J7]+:`QU>DBRQ#4A+&XPR]"ZMIP M(5B-FCN47PU*.[^#WD8@.D261S<8`^697;NF9*,>!T(J&P$0"BJ/4S.7"@&C M@.ZAJ+81+Y>9%:26]K^:W.IU0"VZA2.B]"SHKA'O-K/L;HP$CZ]WS\Q#1[3QF*2\ MKGOK_N46$P`7Z"JEZJ!@PXN0^D&>2H#_%F7HE%%BGT'R,'_V7[7KXASNJ^VU MJ\/U03G_.Q),)^NY7Q%5.(+_!N%_TT63E2G?9LXI8X\O"(S9)3_]E2ZCO,>* M_NMAJ+M_U?@,="T-T(Z5JF5JZ^(63/C\B.@OFL,$_`$R`L, M0+9Q92\?%XBW(LL\M_^OM-0^#Z)[8:WGPUJK!:]`\\?QVUXKMD)WZ"F=Q3"$ M/FD_&7]S.U_.;#6DG53*[>/]Y-W//VF;B/YAQ"$BD*\Q=;]!5CX$)7S_+'W4 MQM\#Y/35']E3@(QY\,=M*O%4#P+T^/8R$!%&V6\A@,V!2/_T)9/G$2P@$P,E MG_V5:&87DQF+[.\#1!D=*53AP`%D>G!<4=4(&^HA>/T'V$CQ:-&-$)"6#@>. MVNA"I-#LF7Z3Z"R[]O&H^K\N^E"[Z8&[?5HBJS91N#)HD8J9B1?1^2DHP)'KD:!C2T+?*;2 M/T$4_0/AK^@)^#%&@)_E"6\L.NA'A5*'+@54MJS\F;B_X2BE_4HVMS`29^F2 MT(T0FI8.BJ`QD_O$;+27N5K8X9)P[5&3CQ`@F2J*F"J#.'$KNJ+3\`(3^6Z^ M035"5!H:*()8#((Q36<1#&XC[(O"E`0T(P2B)K\B0,7DW+6-H\NNXQ[2)$Y\ MQ.[KY#.8DFF$0*D5*I"3.@*'.)._]"-VN?JT!(!52V`=L00)#)@4]1/YR62B MR@J2-^1E+56S@'C?U=JU(BM(GL.3[G!P#%4'_/5<%@HVBV(ZE;IH9#4QERND M$Q9Y+&:KNI,KI3XJDP@=1P^$=U?(;XWI]IS/*Z(=KPZ7.<1U4\)HJ>%:F^GR\&2"%MF%E,"5C!=L9AQ_KI'70/WS2V-UE246CE6@Z;RTNL:4`WH M8LCTH3]'($\O4"W*,R5X#4BRF49^=LY'?:#U2C*S#-:TI>O+8/H=;/MF-GVR M^M3T>^6IJ7XN91M/4;_E5C;LZ+N96_G^6\XZ(^=091:,XFB55S_S8<>AE(+- M.#(M4Q*<3"GD=VQ3]2U[N943W[?LY3:A\2U[^<&Z^H^8T$+:_XRKRG.@)>WX-6:,)KZZ[*9 M]D!U$-#!8##)8='?#_-Z"@=^&G:%XR3>"E^^XE>,VIU;-.;;:8&Z39^XHYI. MC?1BX6]&9VT']P_-P5VP>)0G&^G&AG-3>L5`EI.:VTHU1%(-3@6M,;>^H_/+ MW91<]'T>61QB]&QSH;!CF-L(?U66OOZQ.92V_!YKP&,MO#U5R)#K9+I>1WRM M%JJF6C!U. M>7[<"`KK_IZ>M?S<+;^W;<`K6Q@BTX]21F5%>SU&
\*OF4]>TU&8T]PND% M67D4K*F5*NQM=`-0G;-[._(FS9%79_1*SB%&G%@HU5#KXC`VQCY!Q$VB$$FO MK+86E['1I0=/,:RT=#&[J'TX81*STQ+ZR_\#4$L#!!0````(`'U-G3YX^$8< M#P8``,,M```1`!P`;'-TP+I-=7@+ M``$$)0X```0Y`0``[5IM;]LV$/X^8/^!TZ<4F"S+[KHELULD3EH8R)(@28=^ M*VB)MHE2I$M2C?WO=Z0DZ\V6[;9N`TP($$CDW<.[>T@=S^3@S3)BZ`N1B@H^ M=/Q.UT&$!R*D?#9T8N5B%5#JO'G]ZR^#WUSWP\7]-0I%$$>$:Q1(@C4)T62% M[N_1I>"<,$96Z!'/9D1FJ,CO=LR?W^__C49BL9)T-M?H9/2BI.6ZZ1@76`$F MZ-G!>AT_Z5'!G$08@;E<#9VYUHLSSWMZ>NH\]3M"SKQ>M^M['_ZY?K!R3B)X MMIQ(1DOBIB53Z'N4*XUY0#)Y1OFG!G'3/0'[UO`U^=0:__3TU+.]#M)8SHB^ MP1%1"QR0M3C#/(3192<0$<#[OMOMN[U7:U.4EKME"2.&B[="1I=DBF.FA\[G M&#,ZI21T$-9:TDFL24D@Y@619#2@6J\6)`^M=3Q67M9A`G#J=GVW[SO`!T(# MS+G06`/%]MVT+!:43T7Z"@TF`&=2,/(($,@\O+\?;W;*='HW`N8>U_`,FK,Q MUT02I1U$PZ&SI6\]6#9<2*:44VM6%R*%7'1)5<"$BB6!ES(,RG`&7E6YBAO# MM+SEK^WS`E0@ZM;Y:VA(M5.1)LT`LR!F7Z&86[9=+VW-`O[U/#S0&8?I$6"N MSX-`Q%Q#K.X$HP$E*J&C660'*[TJ*P4TE,.A#*]EI\C.>1C:H3`;835_R\33 M&%:=C*S="3O-(CO8>55E)T=#!@X9/%0`;.DITG.%)8?)J^Z(?)AC21)&:JT[ M2/BC2D(&@``!68@V[*5OE@F)2<[A'5Z9G'@N)>8SFQZS;U:CR`Y"^K5OED%S M+1Q*\5`1L*6G2,^8?X$T6R"CV+`C]*?5T!=TVRB7%@&X9F??[70T-S-1C?G5 MYYCJU1U,5J[G1$.29>ERV%.XD1W_I=EBK:'@>22X@KP=VMH@[Q!3E(Z"*$?) M..CD/<LRK9'/>7@%6UF]JNW0&B4:*>N:KV%6@Q<>P0B40+5[L\._C[L^B;N^@MWO M\Q5LZ2K2-1)11),\#^L$0FJJ0L+S*K1)H'E3X7>KFXH"EEU+);26EPHOX.*< M<$6_D#&'=K+FH]:Q8W/WUP8><@R4@+3A+WW%R,Q,TUI.V="^(_A_UHJ:!*+- M(-OK&#,?'_&2K.N8O&%'M%_6ZQBCBZQR&^:-B5I!)DY_PE*5'%WJ:D[/_?W2 ML[+Y.?N)2[6)>1]ZBM__#>W-Q/0.("9=+2TI^]2(&\K"795@(Q7;*\'_`0GF MG_FA[YY,D3W5.S-G8D-'T6C!S&F@;9M+,ATZYMS.-4=TW7[OU4=PM[.,6"9B M\!O.%RV-U0BE`V<06`8UE-JI(X"(!9$:=JY>9GP&`!6B4;\K#(/,..IWA!E8 MZGTWYQF>'.H\J!!V1*^O#?Z1W(4)>JB[E3E])*='^2A'8;84$;_1'L+TNN5;[*G=G_A6@RS@-HO2&R$V_9M%^K%>%9Y/H!T' MVK%V;ZH;XD^,_>:?A6N^K>? M[#-ST)*BS+TP]2C.9\EQ8(&O:E?1W$AP`AO>U5$,3OHFR2X7.LB$ZNUN7"V) M#*@B4.8\:!%\NET8%#//QDK%!N)V>B/XOT3!#ME*0/'"8G.M[FH9$*6@Y+\@ M'++3FL[O"OFSPA9($OZ@N-GC=W6$Z&7`I95BVW[H2KF+93`WEPL>)>;*9!FK M,!(J7S+-,L]T[8RY`DV0'#%,(S6*I3E'S%S:UGMD9Y)MF#YX0E?,-;<+&_TI M"CQ3EQIO]M6V#OL)/[,LM/DN:=6W75(_T:F!EVPAX?$_4$L!`AX#%`````@` M?4V=/E`S6CNT/```U-0"`!$`&````````0```*2!`````&QS='(M,C`Q,3`S M,C8N>&UL550%``.>P+I-=7@+``$$)0X```0Y`0``4$L!`AX#%`````@`?4V= M/AC,1>KC#```C9H``!4`&````````0```*2!_SP``&QS='(M,C`Q,3`S,C9? M8V%L+GAM;%54!0`#GL"Z375X"P`!!"4.```$.0$``%!+`0(>`Q0````(`'U- MG3Z^(4J5A@8``&!)```5`!@```````$```"D@3%*``!L`L``00E#@``!#D!``!02P$"'@,4````"`!] M39T^CNG?PTTH```[&0(`%0`8```````!````I($&40``;'-T&UL550%``.>P+I-=7@+``$$)0X```0Y`0``4$L!`AX#%`````@` M?4V=/KW#-KB:%0``75(!`!4`&````````0```*2!HGD``&QS='(M,C`Q,3`S M,C9?<')E+GAM;%54!0`#GL"Z375X"P`!!"4.```$.0$``%!+`0(>`Q0````( M`'U-G3YX^$8<#P8``,,M```1`!@```````$```"D@8N/``!L XML 15 R11.xml IDEA: Income Taxes 2.2.0.25falsefalse0204 - Disclosure - Income Taxestruefalsefalse1falsefalseUSDfalsefalse12/26/2010 - 3/26/2011 USD ($) USD ($) / shares $Dec-26-2010_Mar-26-2011http://www.sec.gov/CIK0000853816duration2010-12-26T00:00:002011-03-26T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0us-gaap_IncomeTaxExpenseBenefitAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalseIncome Taxes [Abstract]3false0us-gaap_IncomeTaxDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(4) Income Taxes </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The provisions for income taxes for the 2011 and 2010 thirteen-week periods were each based on an estimated full year combined effective income tax rate of approximately 38.2%, which was higher than the statutory federal income tax rate primarily as a result of state taxes, the meals and entertainment exclusion and non-deductible stock-based compensation. </div> </div>    <div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(3) Share-based Payment Arrangements </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          As of March 26, 2011, the Company had an employee stock option plan (the “1993 Plan”), an employee stock option and stock incentive plan (the “ESOSIP”), and a stock compensation plan for members of its Board of Directors (the “Directors Stock Compensation Plan”) (each, a “Plan,” and collectively, the “Plans”). No further grants can be made under the 1993 Plan as its term for granting stock options has expired. Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 26,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 27,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total cost of the Plans during the period </div></td> <td> </td> <td align="left">$</td> <td align="right">1,205</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,185</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Amount of related income tax benefit recognized during the period </div></td> <td> </td> <td> </td> <td align="right">305</td> <td> </td> <td> </td> <td> </td> <td align="right">299</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net cost of the Plans during the period </div></td> <td> </td> <td align="left">$</td> <td align="right">900</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">886</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The fair value of each option grant on its grant date was calculated using the Black-Scholes option pricing model with the following weighted average assumptions for grants made in the 2011 and 2010 thirteen-week periods: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected volatility </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">35.0</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">37.0</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected dividend yield </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">0.450</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">0.400</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Risk-free interest rate </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">1.75</td> <td nowrap="nowrap">%</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">2.50</td> <td nowrap="nowrap">%</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected lives (in years) </div></td> <td> </td> <td> </td> <td align="right">4.0</td> <td> </td> <td> </td> <td> </td> <td align="right">4.2</td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The Company utilizes historical data, including exercise patterns and employee departure behavior, in estimating the term that options will be outstanding. Expected volatility was based on historical volatility and other factors, such as expected changes in volatility arising from planned changes to the Company’s business, if any. The risk-free interest rate was based on the yield of zero coupon U.S. Treasury bonds for terms that approximated the terms of the options granted. The weighted average grant date fair value of stock options granted during the thirteen-week periods ended March 26, 2011 and March 27, 2010 was $12.05 and $11.98, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The following table summarizes information regarding the Company’s stock options granted under the Plans: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Remaining</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Number of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Exercise Price</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Contractual</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Aggregate Intrinsic</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Options</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>per Share</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Term (years)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value (000s)</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options outstanding at December 25, 2010 </div></td> <td> </td> <td> </td> <td align="right">2,295,831</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">39.73</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">271,000</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">41.81</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Exercised </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(69,348</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">37.40</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(112,500</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">41.65</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Options outstanding at March 26, 2011 </div></td> <td> </td> <td> </td> <td align="right">2,384,983</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">39.94</td> <td> </td> <td> </td> <td> </td> <td align="right">6.7</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,799</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Options exercisable at March 26, 2011 </div></td> <td> </td> <td> </td> <td align="right">1,142,950</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">39.38</td> <td> </td> <td> </td> <td> </td> <td align="right">5.4</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,302</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The total intrinsic value of stock options exercised during the thirteen-week periods ended March 26, 2011 and March 27, 2010 was $410,000 and $532,000, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          As of March 26, 2011, there was $11,624,000 of total unrecognized compensation cost related to non-vested stock options granted under the Plans. The unrecognized compensation cost related to these non-vested options is expected to be recognized over a weighted average period of 3.2 years. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The fair value of each share of non-vested restricted stock issued under the Plans is based on the fair value of a share of the Company’s common stock on the date of grant. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The following table summarizes information regarding the Company’s non-vested restricted stock under the Plans: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Weighted Average</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Number of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Grant Date</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shares</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Non-vested restricted stock outstanding at December 25, 2010 </div></td> <td> </td> <td> </td> <td align="right">29,854</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">39.49</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">6,900</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">41.43</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Vested </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,772</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">39.10</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,938</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">37.13</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Non-vested restricted stock outstanding at March 26, 2011 </div></td> <td> </td> <td> </td> <td align="right">31,044</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">40.18</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          As of March 26, 2011, there was $959,000 of total unrecognized compensation cost related to non-vested shares of restricted stock granted under the ESOSIP. The unrecognized compensation cost related to these non-vested shares of restricted stock is expected to be recognized over a weighted average period of 2.5 years. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">          As of March 26, 2011, there were 128,469 shares of the Company’s common stock reserved for issuance under the Directors’ Stock Compensation Plan and 4,617,900 shares of the Company’s common stock reserved for issuance in the aggregate under the Company’s other Plans. </div> </div>    <div align="left" style="font-family: 'Times New Roman',Times,serif">   <div align="left"> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">(1) Noncontrolling Interest </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          In the Company’s 2009 fiscal third quarter, the Company completed the acquisition of A3 Integration, LLC and its subsidiaries through A3i Acquisition LLC, an entity in which the Company owned 100% of the non-voting, preferred interests and, from the date of acquisition to January 2011, 75% of the voting, common equity interests. A subsidiary of the Company purchased the remaining 25% of the voting, common equity interests in A3i Acquisition, LLC in January 2011. </div> </div>    <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(5) Earnings Per Share </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Earnings per common share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of common shares outstanding, including outstanding restricted stock, and diluted earnings per share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of common shares outstanding, including outstanding restricted stock, plus the incremental shares that would have been outstanding upon the assumed exercise of all dilutive stock options. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table provides a reconciliation of the average number of common shares outstanding used to calculate earnings per 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): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 26,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 27,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Average number of common shares outstanding </div></td> <td> </td> <td> </td> <td align="right">47,870</td> <td> </td> <td> </td> <td> </td> <td align="right">50,207</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Incremental shares from assumed exercises of stock options </div></td> <td> </td> <td> </td> <td align="right">30</td> <td> </td> <td> </td> <td> </td> <td align="right">111</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Average number of common shares and common share equivalents outstanding </div></td> <td> </td> <td> </td> <td align="right">47,900</td> <td> </td> <td> </td> <td> </td> <td align="right">50,318</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     For the thirteen-week periods ended March 26, 2011 and March 27, 2010, there were 584,813 and 1,653,913 options outstanding, respectively, to purchase shares of common stock excluded from the calculation of diluted earnings per share attributable to Landstar System, Inc. and subsidiary because they were antidilutive. </div> </div>    <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(7) Segment Information </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following tables summarize information about Landstar’s reportable business segments as of and for the thirteen-week periods ended March 26, 2011 and March 27, 2010 (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="28%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="22" style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>March 26, 2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>March 27, 2010</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Transportation</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Transportation</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Logistics</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Insurance</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Logistics</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Insurance</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">External revenue </div></td> <td> </td> <td align="left">$</td> <td align="right">563,467</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8,519</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">571,986</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">539,615</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8,473</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">548,088</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Investment income </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">528</td> <td> </td> <td> </td> <td> </td> <td align="right">528</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">285</td> <td> </td> <td> </td> <td> </td> <td align="right">285</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Internal revenue </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">5,865</td> <td> </td> <td> </td> <td> </td> <td align="right">5,865</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">5,903</td> <td> </td> <td> </td> <td> </td> <td align="right">5,903</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Operating income </div></td> <td> </td> <td> </td> <td align="right">28,183</td> <td> </td> <td> </td> <td> </td> <td align="right">5,909</td> <td> </td> <td> </td> <td> </td> <td align="right">34,092</td> <td> </td> <td> </td> <td> </td> <td align="right">22,527</td> <td> </td> <td> </td> <td> </td> <td align="right">5,768</td> <td> </td> <td> </td> <td> </td> <td align="right">28,295</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expenditures on long-lived assets </div></td> <td> </td> <td> </td> <td align="right">1,808</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">1,808</td> <td> </td> <td> </td> <td> </td> <td align="right">22,239</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">22,239</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Goodwill </div></td> <td> </td> <td> </td> <td align="right">57,470</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">57,470</td> <td> </td> <td> </td> <td> </td> <td align="right">57,470</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">57,470</td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In the thirteen-week period ended March 26, 2011, there were no customers who accounted for 10 percent or more of the Company’s revenue. In the thirteen-week period ended March 27, 2010, there was one customer who accounted for approximately 14 percent of the Company’s revenue. </div> </div>    <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(8) Comprehensive Income </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following table includes the components of comprehensive income attributable to Landstar System, Inc. and subsidiary for the thirteen-week periods ended March 26, 2011 and March 27, 2010 (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Thirteen Weeks Ended</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 26,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 27,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income attributable to Landstar System, Inc. and subsidiary </div></td> <td> </td> <td align="left">$</td> <td align="right">20,619</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">17,176</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized holding gains on available-for-sale investments, net of income taxes </div></td> <td> </td> <td> </td> <td align="right">7</td> <td> </td> <td> </td> <td> </td> <td align="right">86</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency translation gains </div></td> <td> </td> <td> </td> <td align="right">206</td> <td> </td> <td> </td> <td> </td> <td align="right">100</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Comprehensive income attributable to Landstar System, Inc. and subsidiary </div></td> <td> </td> <td align="left">$</td> <td align="right">20,832</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">17,362</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The unrealized holding gain on available-for-sale investments during the 2011 thirteen-week period represents the mark-to-market adjustment of $11,000, net of related income taxes of $4,000. The unrealized holding gain on available-for-sale investments during the 2010 thirteen-week period represents the mark-to-market adjustment of $133,000, net of related income taxes of $47,000. The foreign currency translation gain represents the unrealized net gain on the translation of the financial statements of the Company’s Canadian operations. Accumulated other comprehensive income as reported as a component of equity at March 26, 2011 of $1,094,000 represents the unrealized net gain on the translation of the financial statements of the Company’s Canadian operations of $596,000 and the cumulative unrealized holding gains on available-for-sale investments, net of income taxes, of $498,000. </div> </div>    <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(9) Investments </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Investments include investment-grade bonds and mortgage-backed securities having maturities of up to five years (the “bond portfolio”). Investments in the bond portfolio are reported as available-for-sale and are carried at fair value. 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 has performed an analysis of the nature of the unrealized losses on available-for-sale investments to determine whether such losses are other-than-temporary. Unrealized losses, representing the excess of the purchase price of an investment over its fair value as of the end of a 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, which are generally based on available market information. Transfers between levels are recognized as of the beginning of the period. Fair value of the bond portfolio was determined using Level 1 inputs related to U.S. Treasury obligations and money market investments and Level 2 inputs related to investment-grade corporate bonds, mortgage-backed securities and direct obligations of government agencies. Net unrealized gains on the investments in the bond portfolio were $771,000 and $760,000 at March 26, 2011 and December 25, 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The amortized cost and fair market values of available-for-sale investments are as follows at March 26, 2011 and December 25, 2010 (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>March 26, 2011</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Money market investments </div></td> <td> </td> <td align="left">$</td> <td align="right">1,226</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,226</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">3,425</td> <td> </td> <td> </td> <td> </td> <td align="right">85</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">3,506</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate bonds and direct obligations of government agencies </div></td> <td> </td> <td> </td> <td align="right">54,409</td> <td> </td> <td> </td> <td> </td> <td align="right">773</td> <td> </td> <td> </td> <td> </td> <td align="right">65</td> <td> </td> <td> </td> <td> </td> <td align="right">55,117</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Treasury obligations </div></td> <td> </td> <td> </td> <td align="right">14,591</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> <td> </td> <td> </td> <td align="right">14,573</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">73,651</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">861</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">90</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">74,422</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>December 25, 2010</b>   </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Money market investments </div></td> <td> </td> <td align="left">$</td> <td align="right">535</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">535</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">3,458</td> <td> </td> <td> </td> <td> </td> <td align="right">64</td> <td> </td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">3,514</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate bonds and direct obligations of government agencies </div></td> <td> </td> <td> </td> <td align="right">60,330</td> <td> </td> <td> </td> <td> </td> <td align="right">872</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> <td> </td> <td> </td> <td align="right">61,051</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Treasury obligations </div></td> <td> </td> <td> </td> <td align="right">12,584</td> <td> </td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">12,567</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">76,907</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">942</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">182</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">77,667</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     For those available-for-sale investments with unrealized losses at March 26, 2011 and December 25, 2010, the following table summarizes the duration of the unrealized loss (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="28%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Less than 12 months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 months or longer</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000"><b>Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Market</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 0px solid #000000"><b>Unrealized</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Loss</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Loss</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Loss</b></td> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>March 26, 2011</b>   </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td align="left">$</td> <td align="right">516</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">516</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate bonds and direct obligations of government agencies </div></td> <td> </td> <td> </td> <td align="right">9,801</td> <td> </td> <td> </td> <td> </td> <td align="right">65</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">9,801</td> <td> </td> <td> </td> <td> </td> <td align="right">65</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Treasury obligations </div></td> <td> </td> <td> </td> <td align="right">774</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">774</td> <td> </td> <td> </td> <td> </td> <td align="right">21</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">11,091</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">90</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,091</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">90</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>December 25, 2010</b>   </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td align="left">$</td> <td align="right">225</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">225</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate bonds and direct obligations of government agencies </div></td> <td> </td> <td> </td> <td align="right">11,615</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">11,615</td> <td> </td> <td> </td> <td> </td> <td align="right">151</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. Treasury obligations </div></td> <td> </td> <td> </td> <td align="right">774</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">774</td> <td> </td> <td> </td> <td> </td> <td align="right">23</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="top"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">12,614</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">182</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">12,614</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">182</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr>  </table> </div> </div>    <div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(2) Significant Accounting Policies </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Financial Instruments</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">          The Company’s financial instruments include cash equivalents, short and long term investments, trade and other accounts receivable, accounts payable, other accrued liabilities, current and non-current insurance claims and long term debt plus current maturities (“Debt”). The carrying value of cash equivalents, trade and other accounts receivable, accounts payable, current insurance claims and other accrued liabilities approximate fair value as the assets and liabilities are short term in nature. Short and long term investments are carried at fair value as further described in the “Investments” footnote below. The carrying value of non-current insurance claims approximate fair value as the Company generally has the ability to, but is not required to, settle claims in a short term. The Company’s Debt includes borrowings under the Company’s revolving credit facility plus borrowings relating to capital lease obligations used to finance trailing equipment. The interest rates on borrowings under the revolving credit facility are typically tied to short-term LIBOR rates that adjust monthly and, as such, carrying value approximates fair value. Interest rates on borrowings under capital leases approximate the interest rates that would currently be available to the Company under similar terms and, as such, carrying value approximates fair value. </div> </div>    <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(6) Additional Cash Flow Information </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     During the 2011 thirteen-week period, Landstar paid income taxes and interest of $1,269,000 and $838,000, respectively. During the 2010 thirteen-week period, Landstar paid income taxes and interest of $1,795,000 and $895,000, respectively. Landstar did not enter into any capital leases in the 2011 thirteen-week period. Landstar acquired operating property by entering into capital leases in the amount of $6,897,000 in the 2010 thirteen-week period. </div> </div>    <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">(10) Commitments and Contingencies </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Short-term investments include $30,756,000 in current maturities of investments held by the Company’s insurance segment at March 26, 2011. These short-term investments together with $19,427,000 of the non-current portion of investments included in other assets at March 26, 2011 provide collateral for the $45,165,000 of letters of credit issued to guarantee payment of insurance claims. As of March 26, 2011, Landstar also had $33,699,000 of letters of credit outstanding under the Company’s credit agreement. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     As further described in periodic and current reports previously filed by the Company with the Securities and Exchange Commission (the “SEC”), the Company and certain of its subsidiaries (the “Defendants”) are defendants in a suit (the “Litigation”) brought in the United States District Court for the Middle District of Florida (the “District Court”) by the Owner-Operator Independent Drivers Association, Inc. (“OOIDA”) and four former BCO Independent Contractors (the “Named Plaintiffs” and, with OOIDA, the “Plaintiffs”) on behalf of all independent contractors who provide truck capacity to the Company and its subsidiaries under exclusive lease arrangements (the “BCO Independent Contractors”). The Plaintiffs allege that certain aspects of the Company’s motor carrier leases and related practices with its BCO Independent Contractors violate certain federal leasing regulations and seek injunctive relief, an unspecified amount of damages and attorneys’ fees. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 29, 2007, the District Court denied the request by Plaintiffs for injunctive relief, entered a judgment in favor of the Defendants and issued written orders setting forth its rulings related to the decertification of the plaintiff class and other important elements of the Litigation relating to liability, injunctive relief and monetary relief. The Plaintiffs filed an appeal with the United States Court of Appeals for the Eleventh Circuit (the “Appellate Court”) of certain of the District Court’s rulings in favor of the Defendants. The Defendants asked the Appellate Court to affirm such rulings and filed a cross-appeal with the Appellate Court with respect to certain other rulings of the District Court. On September 3, 2008, the Appellate Court issued its initial ruling. Each of the parties to the Litigation subsequently filed a petition with the Appellate Court seeking rehearing of the Appellate Court’s ruling. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On October 4, 2010, the Appellate Court denied each of the motions for rehearing, withdrew its initial ruling and substituted a new ruling in its place. The new ruling by the Appellate Court confirmed the absence of any violations alleged by the Plaintiffs of the federal leasing regulations with respect to the written terms of all leases currently in use between the Defendants and BCO Independent Contractors. In particular, the new ruling, among other things, held that (i) the Defendants are not prohibited by the applicable federal leasing regulations from charging administrative or other fees to BCO Independent Contractors in connection with voluntary programs offered by the Defendants through which a BCO Independent Contractor may purchase discounted products and services for a charge that is deducted against the compensation payable to the BCO Independent Contractor (a “Charge-back Deduction”), (ii) in the case of a Charge-back Deduction expressed as a flat-fee in the lease, the applicable federal leasing regulations do not require Defendants to do more than disclose the flat-fee Charge-back Deduction in the lease and follow up with settlement statements that explain the final amount charged back, (iii) the Plaintiffs are not entitled to restitution or disgorgement with respect to violations by Defendants of the applicable federal leasing regulations but instead may recover only actual damages, if any, which they sustained as a result of any such violations and (iv) the claims of BCO Independent Contractors may not be handled on a class action basis for purposes of determining the amount of actual damages, if any, they sustained as a result of any violations. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     However, the new ruling of the Appellate Court reversed the District Court’s ruling that an old version of the lease formerly used by Defendants but not in use with any current BCO Independent Contractor complied with applicable disclosure requirements under the federal leasing regulations with respect to adjustments to compensation payable to BCO Independent Contractors on certain loads sourced from the U.S. Department of Defense. The Appellate Court then remanded the case to the District Court to permit the Plaintiffs to seek injunctive relief with respect to this violation of the federal leasing regulations and to hold an evidentiary hearing to give the Named Plaintiffs an opportunity to produce evidence of any damages they actually sustained as a result of such violation. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 8, 2011, the Plaintiffs filed a petition with the United States Supreme Court to seek to further appeal certain portions of the Appellate Court’s October 4, 2010 ruling. On March 23, 2011, the Plaintiffs requested that the United States Supreme Court consolidate such petition with a petition OOIDA intends to file to seek to further appeal a decision of the United States Court of Appeals for the Ninth Circuit on January 20, 2011, in a case not otherwise involving the Company, <i>Owner-Operator Indep. Drivers Ass’n, Inc., et al v. Swift Transp. Co., Inc.</i> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Although no assurances can be given with respect to the outcome of the Litigation, including the March 8, 2011 petition to the United States Supreme Court and any possible award of attorneys’ fees to the Plaintiffs, the Company believes that (i) no Plaintiff has sustained any actual damages as a result of any violations by the Defendants of the federal leasing regulations and (ii) injunctive relief, if any, that may be granted by the District Court on remand is unlikely to have a material adverse financial effect on the Company. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The Company is involved in certain other claims and pending litigation arising from the normal conduct of business. 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 other claims and pending litigation and that the ultimate outcome, after provisions therefore, 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. </div> </div>  <!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringIncludes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 falsefalseCommitments and Contingencies12Commitments and ContingenciesUnKnownUnKnownUnKnownUnKnownfalsetrue

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents