PART I – Financial Information | ||
Page 4 | ||
Page 5 | ||
Page 6 | ||
Page 7 | ||
Page 8 | ||
Page 10 | ||
Page 19 | ||
Page 32 | ||
Page 32 | ||
PART II – Other Information | ||
Page 33 | ||
Page 33 | ||
Page 34 | ||
Page 34 | ||
Page 36 |
EX – 31.1 Section 302 CEO Certification |
EX – 31.2 Section 302 CFO Certification |
EX – 32.1 Section 906 CEO Certification |
EX – 32.2 Section 906 CFO Certification |
September 26, 2020 |
December 28, 2019 |
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ASSETS | ||||||||
Current Assets |
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Cash and cash equivalents |
$ | $ | ||||||
Short-term investments |
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Trade accounts receivable, less allowance of $ |
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Other receivables, including advances to independent contractors, less allowance of $ |
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Other current assets |
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Total current assets |
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Operating property, less accumulated depreciation and amortization of $ |
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Goodwill |
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Other assets |
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Total assets |
$ | $ | ||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities |
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Cash overdraft |
$ | $ | ||||||
Accounts payable |
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Current maturities of long-term debt |
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Insurance claims |
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Dividends payable |
— | |||||||
Contractor escrow |
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Other current liabilities |
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Total current liabilities |
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Long-term debt, excluding current maturities |
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Insurance claims |
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Deferred income taxes and other noncurrent liabilities |
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Shareholders’ Equity |
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Common stock, $ |
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Additional paid-in capital |
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Retained earnings |
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Cost of |
( |
) | ( |
) | ||||
Accumulated other comprehensive loss |
( |
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Total shareholders’ equity |
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Total liabilities and shareholders’ equity |
$ | $ | ||||||
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Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
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September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
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Revenue |
$ | $ | $ | $ | ||||||||||||
Investment income |
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Costs and expenses: |
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Purchased transportation |
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Commissions to agents |
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Other operating costs, net of gains/losses on asset sales/dispositions |
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Insurance and claims |
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Selling, general and administrative |
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Depreciation and amortization |
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Impairment of intangible and other assets |
— | — | — | |||||||||||||
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Total costs and expenses |
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Operating income |
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Interest and debt expense |
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Income before income taxes |
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Income taxes |
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Net income |
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Less: Net loss attributable to noncontrolling interest |
— | ( |
) | — | — | |||||||||||
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Net income attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
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Earnings per common share attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
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Diluted earnings per share attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
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Average number of shares outstanding: |
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Earnings per common share |
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Diluted earnings per share |
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Dividends per common share |
$ | $ | $ | $ | ||||||||||||
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Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
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September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
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N et income attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
Other comprehensive (loss) income: |
||||||||||||||||
Unrealized holding gains on available-for-sale |
||||||||||||||||
Foreign currency translation (losses) gains |
( |
) | ( |
) | ||||||||||||
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Other comprehensive (loss) income |
( |
) | ( |
) | ||||||||||||
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Comprehensive income attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
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Thirty Nine Weeks Ended |
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September 26, 2020 |
September 28, 2019 |
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OPERATING ACTIVITIES |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization of operating property and intangible assets |
||||||||
Non-cash interest charges |
||||||||
Provisions for losses on trade and other accounts receivable |
||||||||
Gains on sales/disposals of operating property |
( |
) | ( |
) | ||||
Impairment of intangible and other assets |
— | |||||||
Deferred income taxes, net |
||||||||
Stock-based compensation |
||||||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in trade and other accounts receivable |
( |
) | ||||||
Increase in other assets |
( |
) | ( |
) | ||||
Increase (decrease) in accounts payable |
( |
) | ||||||
Increase (decrease) in other liabilities |
( |
) | ||||||
Increase in insurance claims |
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NET CASH PROVIDED BY OPERATING ACTIVITIES |
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INVESTING ACTIVITIES |
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Net changes in other short-term investments |
— | |||||||
Sales and maturities of investments |
||||||||
Purchases of investments |
( |
) | ( |
) | ||||
Purchases of operating property |
( |
) | ( |
) | ||||
Proceeds from sales of operating property |
||||||||
Consideration paid for acquisition |
( |
) | — | |||||
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NET CASH USED BY INVESTING ACTIVITIES |
( |
) | ( |
) | ||||
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FINANCING ACTIVITIES |
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Decrease in cash overdraft |
( |
) | ( |
) | ||||
Dividends paid |
( |
) | ( |
) | ||||
Payment for debt issue costs |
( |
) | — | |||||
Proceeds from exercises of stock options |
||||||||
Taxes paid in lieu of shares issued related to stock-based compensation plans |
( |
) | ( |
) | ||||
Purchases of common stock |
( |
) | ( |
) | ||||
Principal payments on finance lease obligations |
( |
) | ( |
) | ||||
Purchase of noncontrolling interest |
— | ( |
) | |||||
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NET CASH USED BY FINANCING ACTIVITIES |
( |
) | ( |
) | ||||
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Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
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(Decrease) increase in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents at beginning of period |
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Cash and cash equivalents at end of period |
$ | $ | ||||||
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Common Stock |
Additional Paid-In |
Retained |
Treasury Stock at Cost |
Accumulated Other Comprehensive |
||||||||||||||||||||||||||||
Shares |
Amount |
Capital |
Earnings |
Shares |
Amount |
(Loss) Income |
Total |
|||||||||||||||||||||||||
Balance December 28, 2019 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | |
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Adoption of accounting standard (Note 15 ) |
( |
( |
) | |||||||||||||||||||||||||||||
Net income |
||||||||||||||||||||||||||||||||
Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||
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|||||||||||||||||
Balance March 28, 2020 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | ||||||||||||||||||||||
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Net income |
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Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
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Other comprehensive income |
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Balance June 27, 2020 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | ||||||||||||||||||||||
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Net income |
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Dividends ($ |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | |||||||||||||||||||||||||||||
Stock-based compensation |
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Other comprehensive income |
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Balance September 26, 2020 |
$ | $ | $ |
$ | ( |
) | $ |
( |
$ | |||||||||||||||||||||||
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Landstar System, Inc. and Subsidiary Shareholders |
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Common Stock |
Additional Paid-In |
Retained |
Treasury Stock at Cost |
Accumulated Other Comprehensive |
Non-controlling |
|||||||||||||||||||||||||||||||
Shares |
Amount |
Capital |
Earnings |
Shares |
Amount |
(Loss) Income |
Interests |
Total |
||||||||||||||||||||||||||||
Balance December 29, 2018 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | $ | |
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Net income (loss) |
( |
) | ||||||||||||||||||||||||||||||||||
Dividends ($ share) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchase of noncontrolling interests |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Other comprehensive income |
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Balance March 30, 2019 |
$ | $ | $ | |
$ | ( |
) | $ |
( |
) |
$ | $ | ||||||||||||||||||||||||
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Net income |
||||||||||||||||||||||||||||||||||||
Dividends ($ share) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Other comprehensive income |
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|||||||||||||||||||
Balance June 29, 2019 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | $ | |||||||||||||||||||||||||
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Net income |
||||||||||||||||||||||||||||||||||||
Dividends ($ share) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchases of common stock |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Issuance of stock related to stock-based compensation plans |
— | ( |
) | |||||||||||||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
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|||||||||||||||||||
Balance September 28, 2019 |
$ | $ | $ | $ | ( |
) | $ |
( |
) |
$ | $ | |||||||||||||||||||||||||
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(1) |
Significant Accounting Policies |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
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Mode |
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
||||||||||||
BCO Independent Contractors – |
% | % | % | % | ||||||||||||
Brokerage Carriers - |
% | % | % | % | ||||||||||||
Rail intermodal |
% | % | % | % | ||||||||||||
Ocean and air cargo carriers |
% | % | % | % | ||||||||||||
Equipment Type - Truck |
||||||||||||||||
Van equipment |
$ | |
$ | |
$ | |
$ | |
||||||||
Unsided/platform equipment |
$ | $ | $ | $ | ||||||||||||
Less-than-truckload |
$ | $ | $ | $ |
(2) |
Acquired Business |
(3) |
Share-based Payment Arrangements |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
|||||||||||||
Total cost of the Plans during the period |
$ | $ | $ | |
$ | |
||||||||||
Amount of related income tax benefit recognized during the period |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net cost of the Plans during the period |
$ |
$ | $ | $ | ||||||||||||
Number of RSUs |
Weighted Average Grant Date Fair Value |
|||||||
Outstanding at December 28, 2019 |
$ | |||||||
Granted |
$ | |
||||||
Shares earned in excess of target (1) |
$ | |||||||
Vested shares, including shares earned in excess of target |
( |
) | $ | |||||
Forfeited |
( |
) | $ | |||||
Outstanding at September 26, 2020 |
$ | |||||||
(1) |
Represents additional shares earned under the February 2, 2017 RSU awards as 2019 financial results exceeded target performance level. |
Number of Options |
Weighted Average Exercise Price per Share |
Weighted Average Remaining Contractual Term (years) |
Aggregate Intrinsic Value (000s) |
|||||||||||||
Options outstanding at December 28, 2019 |
$ | |
||||||||||||||
Exercised |
( |
) | $ | |||||||||||||
Options outstanding at September 26, 2020 |
$ | $ | |
|||||||||||||
Options exercisable at September 26, 2020 |
$ | $ | ||||||||||||||
Number of Shares and Deferred Stock Units |
Weighted Average Grant Date Fair Value |
|||||||
Non-vested at December 28, 2019 |
$ | |||||||
Granted |
$ | |||||||
Vested |
( |
) | $ | |||||
Forfeited |
( |
) | $ | |||||
Non-vested at September 26, 2020 |
$ | |||||||
(4) |
Income Taxes |
(5) |
Earnings Per Share |
(6) |
Additional Cash Flow Information |
(7) |
Segment Information |
Thirty Nine Weeks Ended |
||||||||||||||||||||||||
September 26, 2020 |
September 28, 2019 |
|||||||||||||||||||||||
Transportation Logistics |
Insurance |
Total |
Transportation Logistics |
Insurance |
Total |
|||||||||||||||||||
External revenue |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Internal revenue |
||||||||||||||||||||||||
Investment income |
||||||||||||||||||||||||
Operating income |
||||||||||||||||||||||||
Expenditures on long-lived assets |
||||||||||||||||||||||||
Goodwill |
Thirteen Weeks Ended |
||||||||||||||||||||||||
September 26, 2020 |
September 28, 2019 |
|||||||||||||||||||||||
Transportation Logistics |
Insurance |
Total |
Transportation Logistics |
Insurance |
Total |
|||||||||||||||||||
External revenue |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Internal revenue |
||||||||||||||||||||||||
Investment income |
||||||||||||||||||||||||
Operating income |
||||||||||||||||||||||||
Expenditures on long-lived assets |
(8) |
Other Comprehensive Income |
Unrealized Holding Gains on Available-for-Sale Securities |
Foreign Currency Translation |
Total |
||||||||||
Balance as of December 28, 2019 |
$ | |
$ | ( |
) | $ | ( |
) | ||||
Other comprehensive gain (loss) |
( |
) | ( |
) | ||||||||
Balance as of September 26, 2020 |
$ | $ | ( |
) | $ | ( |
) | |||||
(9) |
Investments |
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
|||||||||||||
September 26, 2020 |
||||||||||||||||
Money market investments |
$ | $ | — | $ | — | $ | ||||||||||
Asset-backed securities |
— | |||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||
U.S. Treasury obligations |
— | |||||||||||||||
Total |
$ | |
$ | |
$ | $ | |
|||||||||
December 28, 2019 |
||||||||||||||||
Money market investments |
$ | $ | — | $ | — | $ | ||||||||||
Asset-backed securities |
— | |||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||
U.S. Treasury obligations |
||||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Less than 12 months |
12 months or longer |
Total |
||||||||||||||||||||||
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
Fair Value |
Unrealized Loss |
|||||||||||||||||||
September 26, 2020 |
||||||||||||||||||||||||
Asset-backed securities |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
Corporate bonds and direct obligations of government agencies |
— | — | ||||||||||||||||||||||
Total |
$ | $ | |
$ | — | $ | — | $ | $ | |
||||||||||||||
December 28, 2019 |
||||||||||||||||||||||||
Asset-backed securities |
$ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||
Corporate bonds and direct obligations of government agencies |
||||||||||||||||||||||||
U.S. Treasury obligations |
— | — | ||||||||||||||||||||||
Total |
$ | |
$ | $ | |
$ | $ | |
$ | |||||||||||||||
(10) |
Leases |
Finance leases: |
||||
Amortization of right-of-use |
$ | |
||
Interest on lease liability |
||||
Total finance lease cost |
||||
Operating leases: |
||||
Lease cost |
||||
Variable lease cost |
— | |||
Sublease income |
( |
) | ||
Total net operating lease income |
( |
) | ||
Total net lease cost |
$ | |||
Operating lease right-of-use assets |
Other assets | $ | ||||||
Finance lease assets |
Operating property, less accumulated depreciation and amortization | |||||||
Total lease assets |
$ | |||||||
Finance Leases |
Operating Leases |
|||||||
2020 Remainder |
$ | |
$ | |||||
2021 |
||||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
Thereafter |
||||||||
Total future minimum lease payments |
||||||||
Less amount representing interest ( |
||||||||
Present value of minimum lease payments |
$ | $ | ||||||
Current maturities of long-term debt |
||||||||
Long-term debt, excluding current maturities |
||||||||
Other current liabilities |
||||||||
Deferred income taxes and other noncurrent liabilities |
Finance Leases |
Operating Leases |
|||||||
Weighted average remaining lease term (years) |
||||||||
Weighted average discount rate |
% | % |
(11) |
Debt |
(12) |
Commitments and Contingencies |
(1 3 ) |
Change in Accounting Estimate for Self-Insured Claims |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
|||||||||||||
Operating income |
$ | $ | $ | $ | ||||||||||||
Net income attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ |
||||||||||||
Earnings per share attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ | ||||||||||||
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary |
$ | $ | $ | $ |
(14) |
Impairment of Intangible and Other Assets |
(1 5 ) |
Recent Accounting Pronouncements |
(1 6 ) |
Subsequent Event |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
|||||||||||||
Revenue generated through (in thousands): |
||||||||||||||||
Truck transportation |
||||||||||||||||
Truckload: |
||||||||||||||||
Van equipment |
$ | 1,694,916 | $ | 1,799,421 | $ | 666,582 | $ | 575,042 | ||||||||
Unsided/platform equipment |
848,187 | 980,615 | 314,471 | 331,787 | ||||||||||||
Less-than-truckload |
70,984 | 73,475 | 25,125 | 25,367 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total truck transportation |
2,614,087 | 2,853,511 | 1,006,178 | 932,196 | ||||||||||||
Rail intermodal |
81,747 | 87,555 | 30,432 | 28,970 | ||||||||||||
Ocean and air cargo carriers |
89,002 | 89,258 | 31,752 | 30,365 | ||||||||||||
Other (1) |
51,790 | 59,374 | 17,184 | 20,127 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 2,836,626 | $ | 3,089,698 | $ | 1,085,546 | $ | 1,011,658 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Revenue on loads hauled via BCO Independent Contractors included in total truck transportation |
$ | 1,312,003 | $ | 1,390,135 | $ | 502,224 | $ | 466,207 | ||||||||
Number of loads: |
||||||||||||||||
Truck transportation |
||||||||||||||||
Truckload: |
||||||||||||||||
Van equipment |
946,117 | 1,014,572 | 345,598 | 327,671 | ||||||||||||
Unsided/platform equipment |
356,670 | 391,112 | 125,548 | 130,192 | ||||||||||||
Less-than-truckload |
119,533 | 115,616 | 41,454 | 41,067 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total truck transportation |
1,422,320 | 1,521,300 | 512,600 | 498,930 | ||||||||||||
Rail intermodal |
33,410 | 35,370 | 11,900 | 11,490 | ||||||||||||
Ocean and air cargo carriers |
22,720 | 22,150 | 8,290 | 7,340 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,478,450 | 1,578,820 | 532,790 | 517,760 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loads hauled via BCO Independent Contractors included in total truck transportation |
693,860 | 722,870 | 250,030 | 239,210 | ||||||||||||
Revenue per load: |
||||||||||||||||
Truck transportation |
||||||||||||||||
Truckload: |
||||||||||||||||
Van equipment |
$ | 1,791 | $ | 1,774 | $ | 1,929 | $ | 1,755 | ||||||||
Unsided/platform equipment |
2,378 | 2,507 | 2,505 | 2,548 | ||||||||||||
Less-than-truckload |
594 | 636 | 606 | 618 | ||||||||||||
Total truck transportation |
1,838 | 1,876 | 1,963 | 1,868 | ||||||||||||
Rail intermodal |
2,447 | 2,475 | 2,557 | 2,521 | ||||||||||||
Ocean and air cargo carriers |
3,917 | 4,030 | 3,830 | 4,137 | ||||||||||||
Revenue per load on loads hauled via BCO Independent Contractors |
$ | 1,891 | $ | 1,923 | $ | 2,009 | $ | 1,949 | ||||||||
Revenue by capacity type (as a % of total revenue): |
||||||||||||||||
Truck capacity providers: |
||||||||||||||||
BCO Independent Contractors |
46 | % | 45 | % | 46 | % | 46 | % | ||||||||
Truck Brokerage Carriers |
46 | % | 47 | % | 46 | % | 46 | % | ||||||||
Rail intermodal |
3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Ocean and air cargo carriers |
3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Other |
2 | % | 2 | % | 2 | % | 2 | % |
(1) |
Includes primarily reinsurance premium revenue generated by the insurance segment and intra-Mexico transportation services revenue generated by Landstar Metro. |
September 26, 2020 |
September 28, 2019 |
|||||||
BCO Independent Contractors |
9,866 | 9,738 | ||||||
Truck Brokerage Carriers: |
||||||||
Approved and active (1) |
41,246 | 39,963 | ||||||
Other approved |
22,181 | 16,984 | ||||||
|
|
|
|
|||||
63,427 | 56,947 | |||||||
|
|
|
|
|||||
Total available truck capacity providers |
73,293 | 66,685 | ||||||
|
|
|
|
|||||
Trucks provided by BCO Independent Contractors |
10,571 | 10,441 |
(1) |
Active refers to Truck Brokerage Carriers who moved at least one load in the 180 days immediately preceding the fiscal quarter end. |
Thirty Nine Weeks Ended |
Thirteen Weeks Ended |
|||||||||||||||
September 26, 2020 |
September 28, 2019 |
September 26, 2020 |
September 28, 2019 |
|||||||||||||
Revenue |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Purchased transportation |
77.0 | 76.6 | 77.3 | 76.6 | ||||||||||||
Commissions to agents |
8.3 | 8.3 | 7.9 | 8.4 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit margin |
14.7 | % | 15.1 | % | 14.8 | % | 15.1 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Investment income |
0.7 | 0.8 | 0.4 | 0.9 | ||||||||||||
Indirect costs and expenses: |
||||||||||||||||
Other operating costs, net of gains/losses on asset sales/dispositions |
5.5 | 6.1 | 4.6 | 6.8 | ||||||||||||
Insurance and claims |
16.0 | 11.9 | 13.6 | 15.7 | ||||||||||||
Selling, general and administrative |
29.9 | 25.9 | 24.1 | 25.0 | ||||||||||||
Depreciation and amortization |
8.2 | 7.1 | 7.0 | 7.0 | ||||||||||||
Impairment of intangible and other assets |
0.6 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total costs and expenses |
60.2 | 51.0 | 49.3 | 54.6 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating margin |
40.4 | % | 49.8 | % | 51.2 | % | 46.3 | % | ||||||||
|
|
|
|
|
|
|
|
+ | Management contract or compensatory plan or arrangement |
* | Filed herewith |
** | Furnished herewith |
LANDSTAR SYSTEM, INC. | ||||||
Date: October 30, 2020 | /s/ James B. Gattoni | |||||
James B. Gattoni | ||||||
President and | ||||||
Chief Executive Officer | ||||||
Date: October 30, 2020 | /s/ L. Kevin Stout | |||||
L. Kevin Stout | ||||||
Vice President and Chief | ||||||
Financial Officer |
EXHIBIT 31.1
I, James B. Gattoni, 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 registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting.
Date: October 30, 2020
/s/ James B. Gattoni |
James B. Gattoni |
President and Chief Executive Officer |
EXHIBIT 31.2
I, L. Kevin Stout, 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 registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting.
Date: October 30, 2020
/s/ L. Kevin Stout |
L. Kevin Stout |
Vice President and Chief Financial Officer |
EXHIBIT 32.1
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 September 26, 2020, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, James B. Gattoni, 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: October 30, 2020
/s/ James B. Gattoni |
James B. Gattoni |
President and Chief Executive Officer |
EXHIBIT 32.2
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 September 26, 2020, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, L. Kevin Stout, Vice President and 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: October 30, 2020
/s/ L. Kevin Stout |
L. Kevin Stout |
Vice President and Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Allowance on trade accounts receivable | $ 8,120 | $ 7,284 |
Allowance on other receivables | 8,827 | 7,667 |
Accumulated depreciation and amortization on operating property | $ 291,159 | $ 280,849 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 160,000,000 | 160,000,000 |
Common stock, issued shares | 68,181,418 | 68,083,419 |
Treasury stock, shares | 29,797,639 | 28,609,926 |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Revenue | $ 1,085,546 | $ 1,011,658 | $ 2,836,626 | $ 3,089,698 |
Investment income | 714 | 1,315 | 2,716 | 3,736 |
Costs and expenses: | ||||
Purchased transportation | 838,753 | 774,520 | 2,183,143 | 2,365,646 |
Commissions to agents | 85,848 | 84,568 | 236,490 | 257,862 |
Other operating costs, net of gains/losses on asset sales/dispositions | 7,361 | 10,431 | 23,035 | 28,531 |
Insurance and claims | 21,855 | 23,969 | 66,563 | 55,248 |
Selling, general and administrative | 38,851 | 38,152 | 124,779 | 120,717 |
Depreciation and amortization | 11,240 | 10,695 | 34,212 | 33,045 |
Impairment of intangible and other assets | 2,582 | |||
Total costs and expenses | 1,003,908 | 942,335 | 2,670,804 | 2,861,049 |
Operating income | 82,352 | 70,638 | 168,538 | 232,385 |
Interest and debt expense | 1,008 | 764 | 2,936 | 2,278 |
Income before income taxes | 81,344 | 69,874 | 165,602 | 230,107 |
Income taxes | 19,458 | 16,619 | 38,567 | 52,452 |
Net income | 61,886 | 53,255 | 127,035 | 177,655 |
Less: Net loss attributable to noncontrolling interest | (17) | |||
Net income attributable to Landstar System, Inc. and subsidiary | $ 61,886 | $ 53,255 | $ 127,035 | $ 177,672 |
Earnings per common share attributable to Landstar System, Inc. and subsidiary | $ 1.61 | $ 1.35 | $ 3.28 | $ 4.45 |
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary | $ 1.61 | $ 1.35 | $ 3.28 | $ 4.45 |
Average number of shares outstanding: | ||||
Earnings per common share | 38,386,000 | 39,566,000 | 38,673,000 | 39,891,000 |
Diluted earnings per share | 38,386,000 | 39,566,000 | 38,673,000 | 39,891,000 |
Dividends per common share | $ 0.210 | $ 0.185 | $ 0.580 | $ 0.515 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Net income attributable to Landstar System, Inc. and subsidiary | $ 61,886 | $ 53,255 | $ 127,035 | $ 177,672 |
Other comprehensive (loss) income: | ||||
Unrealized holding gains on available-for-sale investments, net of tax expense of $413, $577, $75 and $83 | 273 | 307 | 1,510 | 2,112 |
Foreign currency translation (losses) gains | 908 | (1,083) | (5,262) | 42 |
Other comprehensive (loss) income | 1,181 | (776) | (3,752) | 2,154 |
Comprehensive income attributable to Landstar System, Inc. and subsidiary | $ 63,067 | $ 52,479 | $ 123,283 | $ 179,826 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Unrealized holding gains on available-for-sale investments, net of tax expense | $ 75 | $ 83 | $ 413 | $ 577 |
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 26, 2020 |
Jun. 27, 2020 |
Mar. 28, 2020 |
Sep. 28, 2019 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Dividends per common share | $ 0.210 | $ 0.185 | $ 0.185 | $ 0.185 | $ 0.165 | $ 0.165 | $ 0.580 | $ 0.515 |
Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies |
Revenue from Contracts with Customers – Disaggregation of Revenue The following table summarizes the percentage of consolidated revenue generated by mode of transportation and the dollar amount included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers hauled via equipment type during the thirty-nine-week and thirteen-week periods ended September 26, 2020 and September 28, 2019 (dollars in thousands):
|
Acquired Business |
9 Months Ended | ||
---|---|---|---|
Sep. 26, 2020 | |||
Acquired Business |
On May 6, 2020, Landstar System Holdings, Inc. formed a new subsidiary that was subsequently renamed Landstar Blue, LLC (“Landstar Blue”). Landstar Blue arranges truckload brokerage services while helping the Company to develop and test digital technologies and processes for the benefit of all Landstar independent commission sales agents. On June 15, 2020, Landstar Blue completed the acquisition of an independent agent of the Company whose business focused on truckload brokerage services. Cash consideration paid for the acquisition was approximately $2,766,000. In addition, the Company assumed approximately $200,000 in liabilities consisting of additional contingent purchase price. The resulting goodwill arising from the acquisition was approximately $2,871,000. With respect to this goodwill, 100% is expected to be deductible by the Company for U.S. income tax purposes. Pro forma financial information for prior periods is not presented as the Company does not believe the acquisition to be material to the Company’s consolidated results. The results of operations for Landstar Blue are presented as part of the Company’s transportations logistics segment. Transaction costs for the acquisition were insignificant. |
Share-based Payment Arrangements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-based Payment Arrangements |
As of September 26, 2020, the Company had two employee equity incentive plans, the 2002 employee stock option and stock incentive plan (the “ESOSIP”) and the 2011 equity incentive plan (the “2011 EIP”). No further grants can be made under the ESOSIP. The Company also has a stock compensation plan for members of its Board of Directors, the Amended and Restated 2013 Directors Stock Compensation Plan (as amended and restated as of May 17, 2016, the “2013 DSCP”). 6,000,000 shares of the Company’s common stock were authorized for issuance under the 2011 EIP and 115,000 shares of the Company’s common stock were authorized for issuance under the 2013 DSCP. The ESOSIP, 2011 EIP and 2013 DSCP are each referred to herein as a “Plan,” and, collectively, as the “Plans.” Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands):
Included in income tax benefits recognized in the thirty-nine-week periods ended September 26, 2020 and September 28, 2019 were excess tax benefits from stock-based awards of $927,000 and $2,968,000, respectively. As of September 26, 2020, there were 60,586 shares of the Company’s common stock reserved for issuance under the 2013 DSCP and 3,675,862 shares of the Company’s common stock reserved for issuance in the aggregate under the ESOSIP and 2011 EIP. Restricted Stock Units The following table summarizes information regarding the Company’s outstanding restricted stock unit (“RSU”) awards with either a performance condition or a market condition under the Plans:
During the thirty-nine-week period ended September 26, 2020, the Company granted RSUs with a performance condition. Outstanding RSUs at both December 28, 2019 and September 26, 2020 include RSUs with a performance condition and RSUs with a market condition, as further described below and in the Company’s 2019 Annual Report on Form 10-K. RSUs with a performance condition granted on January 31, 2020 may vest on January 31 of 2023, 2024 and 2025 based on growth in operating income and pre-tax income per diluted share from continuing operations attributable to Landstar System, Inc. and subsidiary as compared to the results from the 2019 fiscal year.The Company recognized approximately $415,000 and $2,477,000 of share-based compensation expense related to RSU awards in the thirty-nine-week periods ended September 26, 2020 and September 28, 2019, respectively. As of September 26, 2020, there was a maximum of $34.6 million of total unrecognized compensation cost related to RSU awards granted under the Plans with an expected average remaining life of approximately 3.1 years. With respect to RSU awards with a performance condition, the amount of future compensation expense to be recognized will be determined based on future operating results. Stock Options The following table summarizes information regarding the Company’s outstanding stock options under the Plans:
The total intrinsic value of stock options exercised during the thirty-nine-week periods ended September 26, 2020 and September 28, 2019 was $1,599,000 and $1,877,000, respectively. As of September 26, 2020, there was no unrecognized compensation cost related to stock options granted under the Plans. Non-vested Restricted Stock and Deferred Stock Units The following table summarizes information regarding the Company’s outstanding shares of non-vested restricted stock and Deferred Stock Units (defined below) under the Plans:
The fair value of each share of non-vested restricted stock issued and Deferred Stock Unit granted under the Plans is based on the fair value of a share of the Company’s common stock on the date of grant. Shares of non-vested restricted stock are generally subject to vesting in three equal annual installments either on the first, second and third anniversary of the date of the grant or the third, fourth and fifth anniversary of the date of the grant, or 100% on the first or fifth anniversary of the date of the grant. For restricted stock awards granted under the 2013 DSCP plan, each recipient may elect to defer receipt of shares and instead receive restricted stock units (“Deferred Stock Units”), which represent contingent rights to receive shares of the Company’s common stock on the date of recipient separation from service from the Board of Directors, or, if earlier, upon a change in control event of the Company. Deferred Stock Units become vested 100% on the first anniversary of the date of the grant. Deferred Stock Units do not represent actual ownership in shares of the Company’s common stock and the recipient does not have voting rights or other incidents of ownership until the shares are issued. However, Deferred Stock Units do contain the right to receive dividend equivalent payments prior to settlement into shares.As of September 26, 2020, there was $4,074,000 of total unrecognized compensation cost related to
non-vested shares of restricted stock and Deferred Stock Units granted under the Plans. The unrecognized compensation cost related to these non-vested shares of restricted stock and Deferred Stock Units is expected to be recognized over a weighted average period of 1.9 years. |
Income Taxes |
9 Months Ended | ||
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Sep. 26, 2020 | |||
Income Taxes |
The provisions for income taxes for the 2020 and 2019 thirty-nine-week periods were each based on an estimated annual effective income tax rate of 24.2%, adjusted for discrete events, such as benefits resulting from stock-based awards. The effective income tax rate for the 2020 thirty-nine-week period was 23.3%, which was higher than the statutory federal income tax rate of 21% primarily attributable to state taxes and the meals and entertainment exclusion, partially offset by excess tax benefits realized on stock-based awards and state tax refunds. The provision for income taxes for the 2020 thirty-nine-week period was favorably impacted by $927,000 of excess tax benefits from stock-based awards. The effective income tax rate for the 2019 thirty-nine-week period was 22.8%, which was higher than the statutory federal in come tax rate of 21% primarily attributable to state taxes and the meals and
entertainment exclusion, partially offset by excess tax benefits realized on stock-based awards. The provision for income taxes for the 2019 thirty-nine-week period was favorably impacted by $2,968,000 of excess tax benefits from stock-based awards. |
Earnings Per Share |
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Sep. 26, 2020 | |||
Earnings Per Share |
Earnings per common share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of shares outstanding, including outstanding non-vested restricted stock and outstanding Deferred Stock Units. Diluted earnings per share attributable to Landstar System, Inc. and subsidiary are based on the weighted average number of common shares and Deferred Stock Units outstanding plus the incremental shares that would have been outstanding upon the assumed exercise of all dilutive stock options. During the 2020 and 2019 thirty-nine-week and thirteen-week periods,in reference to the determination of diluted earnings per share, the future compensation cost attributable to outstanding shares of non-vested restricted stock exceeded theimpact of incremental shares that would have been outstanding upon the assumed exercise of all dilutive stock options.For each of the thirty-nine-week periods ended September 26, 2020 and September 28, 2019, no options outstanding to purchase shares of common stock were antidilutive. Outstanding RSUs were excluded from the calculation of diluted earnings per share attributable to Landstar System, Inc. and subsidiary for all periods because the performance metric requirements or market condition for vesting had not been satisfied. |
Additional Cash Flow Information |
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Sep. 26, 2020 | |||
Additional Cash Flow Information |
During the 2020 thirty-nine-week period, Landstar paid income taxes and interest of $28,761,000 and $3,087,000, respectively. During the 2019 thirty-nine-week period, Landstar paid income taxes and interest of $54,877,000 and $3,302,000, respectively. Landstar acquired operating property by entering into finance leases in the amounts of $7,485,000 and $6,481,000 in the 2020 and 2019 thirty-nine-week periods, respectively. In addition, during the 2020 thirty-nine-week period, Landstar acquired $1,068,000 of operating property for which the Company accrued a corresponding liability in accounts payable as of September 26, 2020. Capital expenditures are recorded as cash outflows from investing activities in the consolidated statement of cash flows in the period in which they are paid. |
Segment Information |
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Segment Information |
The following table summarizes information about the Company’s reportable business segments as of and for the thirty-nine-week and thirteen week periods ended September 26, 2020 and September 28, 2019 (in thousands):
In the thirty-nine-week periods ended
September 26, 2020 and September 28, 2019, no single customer accounted for more than 10% of the Company’s consolidated revenue. |
Other Comprehensive Income |
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Other Comprehensive Income |
The following table presents the components of and changes in accumulated other comprehensive income (loss), net of related income taxes, as of and for the thirty-nine-week period ended September 26, 2020 (in thousands):
Amounts reclassified from accumulated other comprehensive income to investment income due to the realization of previously unrealized gains and losses in the accompanying consolidated statements of income were not significant for the thirty-nine-week period ended September 26, 2020. |
Investments |
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Investments |
Investments include primarily investment-grade corporate bonds and U.S. Treasury obligations having maturities of up to five years (the “bond portfolio”) and money market investments. Investments in the bond portfolio are reported as available-for-sale available-for-sale non-transferability, which are generally based on available market information. Any transfers between levels are recognized as of the beginning of any reporting 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, asset-backed securities and direct obligations of government agencies. Unrealized gains, net of unrealized losses, on the investments in the bond portfolio were $3,350,000 and $1,427,000 at September 26, 2020 and December 28, 2019, respectively.The amortized cost and fair values of available-for-sale
For those available-for-sale
The Company expects to recover, through collection of all of the contractual cash flows of each security, the amortized cost basis of these securities as it does not intend to sell, and does not anticipate being required to sell, these securities before recovery of the cost basis. For these reasons, no losses have been recognized in the Company’s consolidated statements of income. |
Leases |
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Leases |
Landstar’s noncancelable leases are primarily comprised of finance leases for the acquisition of new trailing equipment. Each finance lease for the acquisition of trailing equipment is a five year lease with a $1 purchase option for the applicable equipment at lease expiration. Substantially all of Landstar’s operating lease right-of-use facilities maintained in support of the Company’s network of BCO Independent Contractors and office space used to conduct Landstar’s business. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives or other build-out clauses. Further, the leases do not contain contingent rent provisions. Landstar also leases certain trailing equipment to supplement the Company-owned trailer fleet under “month-to-month” Most of Landstar’s operating leases include one or more options to renew. The exercise of lease renewal options is typically at Landstar’s sole discretion, and, as such, the majority of renewals to extend the lease terms are not included in the right-of-use As most of Landstar’s operating leases do not provide an implicit rate, Landstar utilized its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. Landstar has a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate. The components of lease cost for finance leases and operating leases for the thirty nine weeks ended September 26, 2020 were (in thousands):
A summary of the lease classification on our consolidated balance sheet as of September 26, 2020 is as follows (in thousands): Assets:
Liabilities: The following table reconciles the undiscounted cash flows for the finance and operating leases to the finance and operating lease liabilities recorded on the balance sheet at September 26, 2020 (in thousands):
The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of September 26, 2020 were:
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Debt |
9 Months Ended | ||
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Sep. 26, 2020 | |||
Debt |
Other than the finance lease obligations as presented on the consolidated balance sheets, the Company had no outstanding debt as of September 26, 2020 and December 28, 2019. On June 2, 2016, Landstar entered into a credit agreement with a syndicate of banks and JPMorgan Chase Bank, N.A., as administrative agent, which was amended and restated on August 18, 2020 to extend the maturity date to August 2023 and amend certain other terms (as so amended and restated, the “Credit Agreement”). The Credit Agreement provides $250,000,000 of borrowing capacity in the form of a revolving credit facility, $35,000,000 of which may be utilized in the form of letters of credit. The Credit Agreement includes an “accordion” feature providing for a possible increase up to an aggregate borrowing capacity of $400,000,000. The revolving credit loans under the Credit Agreement, at the option of Landstar, bear interest at (i) the Eurocurrency rate plus an applicable margin ranging from 1.25% to 2.00%, or (ii) an alternate base rate plus an applicable margin ranging from 0.25% to 1.00%, in each case with the applicable margin determined based upon the Company’s Leverage Ratio, as defined in the Credit Agreement, at the end of the most recent applicable fiscal quarter for which financial statements have been delivered. The revolving credit facility bears a commitment fee, payable quarterly in arrears, of 0.25% to 0.35%, based on the Company’s Leverage Ratio at the end of the most recent applicable fiscal quarter for which financial statements have been delivered. As of September 26, 2020 and December 28, 2019, the Company had no borrowings outstanding under the Credit Agreement. 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 to the extent that, after giving effect to any payment made to effect such cash dividend or other distribution, the Leverage Ratio would exceed 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 that, among other things, a person or group acquires 35% or more of the outstanding capital stock of the Company or obtains power to elect a majority of the Company’s directors or the directors cease to consist of a majority of Continuing Directors, as defined in the Credit Agreement. 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. The interest rates on borrowings under the revolving credit facility are typically tied to short-term interest rates that adjust monthly and, as such, carrying value approximates fair value. Interest rates on borrowings under finance leases approximate the interest rates that would currently be available to the Company under similar terms and, as such, carrying value approximates fair value. |
Commitments and Contingencies |
9 Months Ended | ||
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Sep. 26, 2020 | |||
Commitments and Contingencies |
Short-term investments include $39,068,000 in current maturities of investments held by the Company’s insurance segment at September 26, 2020. The non-current portion of the bond portfolio of $82,734,000 is included in other assets. The short-term investments, together with $26,969,000 of non-current investments, provide collateral for the $59,434,000 of letters of credit issued to guarantee payment of insurance claims. As of September 26, 2020, Landstar also had $33,618,000 of additional letters of credit outstanding under the Company’s Credit Agreement.The Company is involved in certain claims and pending litigation arising from the normal conduct of business. Many of these claims are covered in whole or in part by insurance. Based on knowledge of the facts and, in certain cases, opinions of outside counsel, management believes that adequate provisions have been made for probable losses with respect to the resolution of all such claims and pending litigation and that the ultimate outcome, after provisions therefor, will not have a material adverse effect on the financial condition of the Company, but could have a material effect on the results of operations in a given quarter or year. |
Change in Accounting Estimate for Self-Insured Claims |
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Accounting Estimate for Self-Insured Claims |
Landstar provides for the estimated costs of self-insured claims primarily on an actuarial basis. The amount recorded for the estimated liability for claims incurred is based upon the facts and circumstances known on the applicable balance sheet date. The ultimate resolution of these claims may be for an amount greater or less than the amount estimated by management. The Company continually revises its existing claim estimates as new or revised information becomes available on the status of each claim. Historically, the Company has experienced both favorable and unfavorable development of prior years’ claims estimates. The following table summarizes the effect of the increase in the cost of insurance claims resulting from unfavorable development of prior year self-insured claims estimates on operating income, net income attributable to Landstar System, Inc. and subsidiary and earnings per share attributable to Landstar System, Inc. and subsidiary set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 26, 2020 and September 28, 2019 (in thousands, except per share amounts):
The unfavorable
development of prior years’ claims in the thirty-nine-week period ended September 26, 2020 and the thirty -nine-week period ended September 28, 2019 were each attributable to several claims as well as actuarially determined adjustments to prior year commercial trucking loss estimates. |
Impairment of Intangible and Other Assets |
9 Months Ended | ||
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Sep. 26, 2020 | |||
Impairment of Intangible and Other Assets |
During the 2020 second fiscal quarter, the Company recorded a
non-cash impairment charge of $2,582,000 in respect of certain assets, primarily customer contract and related customer relationship intangible assets, acquired on September 20, 2017, along with substantially all of the other assets of the asset-light transportation logistics business of Fletes Avella, S.A. de C.V. (“Fletes Avella”). As previously disclosed in Item 1A. Risk Factors in the Company’s Form 10-Q for the 2020 first quarter, negative macroeconomic trends in Mexico have caused significant disruptions in the Mexican economy. Accordingly, management performed impairment tests of the carrying values of certain assets that primarily relate to intra-Mexico business acquired as a part of the Fletes Avella acquisition. The impairment tests resulted in an impairment charge of $2,582,000, as the negative macroeconomic trends in Mexico have caused current financial projections relating to these intangible assets to be substantially below those originally anticipated at the acquisition date. There was no corresponding goodwill impairment charge recorded as the fair value of the Company’s Mexico and cross-border reporting unit continues to significantly exceed its carrying value as of September 26, 2020. |
Recent Accounting Pronouncements |
9 Months Ended | ||
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Sep. 26, 2020 | |||
Recent Accounting Pronouncements |
Adoption of New Accounting Standards In June 2016, the FASB issued Accounting Standards Update
2016-13– Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”), which requires measurement and recognition of expected versus incurred credit losses for financial assets held. The Company adopted ASU 2016-13 on December 29, 2019, under the modified retrospective transition method resulting in a $702,000 cumulative adjustment to retained earnings. |
Subsequent Event |
9 Months Ended | ||
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Sep. 26, 2020 | |||
Subsequent Events [Abstract] | |||
Subsequent Event |
In October 2020, the Company announced a new initiative in support of its BCO Independent Contractor network relating to its regional field operations centers located in the United States and Canada. It is the intent of the Company that this network of field operations centers will further support the Company’s efforts in recruiting and retaining BCO Independent Contractors. In connection with this initiative, the Company expects to record a provision of approximately $ 15,000,000during the 2020 fourth fiscal quarter relating to anticipated buyouts of certain incentive commission arrangements with several of its independent commission sales agents due to the Company’s discontinuation of a BCO recruitment and retention program that involved those agents. |
Significant Accounting Policies (Policies) |
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Revenue from Contracts with Customers – Disaggregation of Revenue | Revenue from Contracts with Customers – Disaggregation of Revenue The following table summarizes the percentage of consolidated revenue generated by mode of transportation and the dollar amount included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers hauled via equipment type during the thirty-nine-week and thirteen-week periods ended September 26, 2020 and September 28, 2019 (dollars in thousands):
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Significant Accounting Policies (Tables) |
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Schedule of Disaggregation of Revenue | The following table summarizes the percentage of consolidated revenue generated by mode of transportation and the dollar amount included in truck transportation revenue generated by BCO Independent Contractors and Truck Brokerage Carriers hauled via equipment type during the thirty-nine-week and thirteen-week periods ended September 26, 2020 and September 28, 2019 (dollars in thousands):
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Share-based Payment Arrangements (Tables) |
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Sep. 26, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts Recognized in Financial Statements with Respect to Plans | Amounts recognized in the financial statements with respect to these Plans are as follows (in thousands):
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Summary of Information Regarding Stock Options | The following table summarizes information regarding the Company’s outstanding stock options under the Plans:
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Restricted Stock Units (RSUs) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Information on Restricted Stock Units | The following table summarizes information regarding the Company’s outstanding restricted stock unit (“RSU”) awards with either a performance condition or a market condition under the Plans:
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Schedule of Information on Non-Vested Restricted Stock and Deferred Stock Units | The following table summarizes information regarding the Company’s outstanding shares of non-vested restricted stock and Deferred Stock Units (defined below) under the Plans:
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Segment Information (Tables) |
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Information Regarding Reportable Business Segments | The following table summarizes information about the Company’s reportable business segments as of and for the thirty-nine-week and thirteen week periods ended September 26, 2020 and September 28, 2019 (in thousands):
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Other Comprehensive Income (Tables) |
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Components of and Changes in Accumulated Other Comprehensive Income, Net of Related Income Taxes | The following table presents the components of and changes in accumulated other comprehensive income (loss), net of related income taxes, as of and for the thirty-nine-week period ended September 26, 2020 (in thousands):
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Investments (Tables) |
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Amortized Cost and Fair Value of Available-for-Sale Investments | The amortized cost and fair values of available-for-sale
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Schedule of Unrealized Loss on Available-for-Sale Investments | For those available-for-sale
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Leases (Tables) |
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Lease, Cost [Table Text Block] | The components of lease cost for finance leases and operating leases for the thirty nine weeks ended September 26, 2020 were (in thousands):
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Schedule Of Supplemental Balance Sheet In formation Related To Leases [Table Text Block] | A summary of the lease classification on our consolidated balance sheet as of September 26, 2020 is as follows (in thousands): Assets:
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Finance And Operating Lease Maturity [Table Text Block] | The following table reconciles the undiscounted cash flows for the finance and operating leases to the finance and operating lease liabilities recorded on the balance sheet at September 26, 2020 (in thousands):
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Schedule Discount Rate And Lease Term Used In Calculating Lease Liabilities And Assets [Table Text Block] | The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of September 26, 2020 were:
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Change in Accounting Estimate for Self-Insured Claims (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Effect of Increase in Cost of Insurance and Claims | The following table summarizes the effect of the increase in the cost of insurance claims resulting from unfavorable development of prior year self-insured claims estimates on operating income, net income attributable to Landstar System, Inc. and subsidiary and earnings per share attributable to Landstar System, Inc. and subsidiary set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 26, 2020 and September 28, 2019 (in thousands, except per share amounts):
|
Acquired Business - Additional Information (Detail) - USD ($) |
9 Months Ended | |
---|---|---|
Jun. 15, 2020 |
Sep. 26, 2020 |
|
Purchase consideration | $ 2,766,000 | $ 2,766,000 |
Business combination, recognized identifiable assets acquired and liabilities assumed, liabilities | 200,000 | |
Goodwill Purchase | $ 2,871,000 | |
Income tax rate deduction | 100.00% |
Amounts Recognized in Financial Statements with Respect to Plans (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total cost of the Plans during the period | $ 1,490 | $ 1,102 | $ 2,691 | $ 4,470 |
Amount of related income tax benefit recognized during the period | (483) | (391) | (1,618) | (4,125) |
Net cost of the Plans during the period | $ 1,007 | $ 711 | $ 1,073 | $ 345 |
Schedule of Information on Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) |
9 Months Ended |
---|---|
Sep. 26, 2020
$ / shares
shares
| |
Number of Shares | |
Beginning Balance | shares | 198,875 |
Granted | shares | 59,719 |
Shares earned in excess of target | shares | 11,648 |
Vested shares, including shares earned in excess of target | shares | (76,290) |
Forfeited | shares | (10,987) |
Ending Balance | shares | 182,965 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 84.37 |
Granted | $ / shares | 102.62 |
Shares earned in excess of target | $ / shares | 77.00 |
Vested shares, including shares earned in excess of target | $ / shares | 73.44 |
Forfeited | $ / shares | 100.55 |
Ending Balance | $ / shares | $ 93.44 |
Schedule of Information on Non - Vested Restricted Stock Units (Detail) - Non Vested Restricted Stock and Deferred Stock Units |
9 Months Ended |
---|---|
Sep. 26, 2020
$ / shares
shares
| |
Number of Shares and Deferred Stock Units | |
Beginning Balance | shares | 64,808 |
Granted | shares | 26,604 |
Vested | shares | (28,621) |
Forfeited | shares | (2,351) |
Ending Balance | shares | 60,440 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 98.24 |
Granted | $ / shares | 111.88 |
Vested | $ / shares | 98.83 |
Forfeited | $ / shares | 106.34 |
Ending Balance | $ / shares | $ 103.65 |
Income Taxes - Additional Information (Detail) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Income Taxes [Line Items] | ||
Corporate income tax rate | 21.00% | 21.00% |
Excess tax benefit from stock-based awards | $ 927,000 | $ 2,968,000 |
Estimated annual effective income tax rate | 24.20% | 24.20% |
Effective income tax rate | 23.30% | 22.80% |
Earnings Per Share - Additional Information (Detail) - shares |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options excluded from calculation of diluted earnings per share, antidilutive | 0 | 0 |
Additional Cash Flow Information - Additional Information (Detail) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Supplemental Cash Flow Information [Abstract] | ||
Income taxes paid | $ 28,761,000 | $ 54,877,000 |
Acquired operating property by accruing in accounts payable | 1,068,000 | |
Interest paid | 3,087,000 | 3,302,000 |
Capital Lease Obligations Incurred | $ 7,485,000 | $ 6,481,000 |
Segment Information - Additional Information (Detail) - Customer |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Segment Reporting Information [Line Items] | ||
Number of customers accounting for 10 percent or more of total revenue | 0 | 0 |
No single customer accounted for benchmark percentage to be considered major customer | 10.00% | 10.00% |
Information Regarding Reportable Business Segments (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
Dec. 28, 2019 |
|
Segment Reporting Information [Line Items] | |||||
External revenue | $ 1,085,546 | $ 1,011,658 | $ 2,836,626 | $ 3,089,698 | |
Internal revenue | 9,078 | 9,611 | 44,912 | 36,978 | |
Investment income | 714 | 1,315 | 2,716 | 3,736 | |
Operating income | 82,352 | 70,638 | 168,538 | 232,385 | |
Expenditures on long-lived assets | 7,750 | 5,975 | 25,426 | 15,199 | |
Goodwill | 40,251 | 38,232 | 40,251 | 38,232 | $ 38,508 |
Transportation Logistics | |||||
Segment Reporting Information [Line Items] | |||||
External revenue | 1,071,374 | 997,552 | 2,795,056 | 3,047,329 | |
Operating income | 71,752 | 64,848 | 148,270 | 200,767 | |
Expenditures on long-lived assets | 7,750 | 5,975 | 25,426 | 15,199 | |
Goodwill | 40,251 | 38,232 | 40,251 | 38,232 | |
Insurance | |||||
Segment Reporting Information [Line Items] | |||||
External revenue | 14,172 | 14,106 | 41,570 | 42,369 | |
Internal revenue | 9,078 | 9,611 | 44,912 | 36,978 | |
Investment income | 714 | 1,315 | 2,716 | 3,736 | |
Operating income | $ 10,600 | $ 5,790 | $ 20,268 | $ 31,618 |
Components of and Changes in Accumulated Other Comprehensive Income, Net of Related Income Taxes (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 26, 2020 |
Sep. 28, 2019 |
Sep. 26, 2020 |
Sep. 28, 2019 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 649,121 | $ 721,469 | ||
Other comprehensive loss | 1,181 | $ (776) | (3,752) | $ 2,154 |
Ending Balance | 705,634 | 705,634 | ||
Unrealized Holding (Losses) Gains on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 1,120 | |||
Other comprehensive loss | 1,510 | |||
Ending Balance | 2,630 | 2,630 | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (3,332) | |||
Other comprehensive loss | (5,262) | |||
Ending Balance | (8,594) | (8,594) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (7,145) | (2,212) | ||
Other comprehensive loss | (3,752) | |||
Ending Balance | $ (5,964) | $ (5,964) |
Investments - Additional Information (Detail) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 26, 2020 |
Dec. 28, 2019 |
|
Debt Securities, Available-for-sale [Line Items] | ||
Investments maximum maturity period | 5 years | |
Unrealized gain (loss), net of unrealized gains/losses, on the investments in the bond portfolio | $ 3,350,000 | $ 1,427,000 |
Amortized Cost and Fair Value of Available-for-Sale Investments (Detail) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 118,452 | $ 116,181 |
Gross Unrealized Gains | 3,677 | 1,477 |
Gross Unrealized Losses | 327 | 50 |
Fair Value | 121,802 | 117,608 |
Money market investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,456 | 15,691 |
Fair Value | 14,456 | 15,691 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 569 | 572 |
Gross Unrealized Losses | 38 | 1 |
Fair Value | 531 | 571 |
Corporate bonds and direct obligations of government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 101,090 | 97,583 |
Gross Unrealized Gains | 3,540 | 1,465 |
Gross Unrealized Losses | 289 | 44 |
Fair Value | 104,341 | 99,004 |
U.S. Treasury obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,337 | 2,335 |
Gross Unrealized Gains | 137 | 12 |
Gross Unrealized Losses | 5 | |
Fair Value | $ 2,474 | $ 2,342 |
Leases - Additional Information (Detail) |
Sep. 26, 2020
USD ($)
|
---|---|
Leases Disclosure [Line Items] | |
Finance Lease Option to Purchase Option Value | $ 1 |
Lessee, Finance Lease, Term of Contract | 5 years |
Leases - Components of Lease Cost for Finance Leases and Operating Leases (Detail) $ in Thousands |
9 Months Ended |
---|---|
Sep. 26, 2020
USD ($)
| |
Finance leases: | |
Amortization of right-of-use assets | $ 18,534 |
Interest on lease liability | 2,447 |
Total finance lease cost | 20,981 |
Operating leases: | |
Lease cost | 2,300 |
Sublease income | (3,513) |
Total net operating lease income | (1,213) |
Total net lease cost | $ 19,768 |
Leases - Classification on our Consolidated Balance Sheet (Detail) $ in Thousands |
Sep. 26, 2020
USD ($)
|
---|---|
Total lease assets | $ 142,455 |
Other Assets [Member] | |
Operating lease right-of-use assets | 2,391 |
Property Plant and Equipment Net [Member] | |
Finance lease assets | $ 140,064 |
Leases - Undiscounted Cash Flows for the Finance and Operating Leases (Detail) - USD ($) $ in Thousands |
Sep. 26, 2020 |
Dec. 28, 2019 |
---|---|---|
Operating Leased Assets [Line Items] | ||
2020 Remainder | $ 11,269 | |
2021 | 33,830 | |
2022 | 24,358 | |
2023 | 16,681 | |
2024 | 6,742 | |
Thereafter | 793 | |
Total future minimum lease payments | 93,673 | |
Less amount representing interest (2.1% to 4.4%) | 6,380 | |
Present value of minimum lease payments | 87,293 | |
Current maturities of long-term debt | 34,723 | $ 42,632 |
Long-term debt, excluding current maturities | 52,570 | $ 70,212 |
2020 Remainder | 166 | |
2021 | 651 | |
2022 | 653 | |
2023 | 523 | |
2024 | 454 | |
Thereafter | 154 | |
Total future minimum lease payments | 2,601 | |
Less amount representing interest (2.1% to 4.4%) | 210 | |
Present value of minimum lease payments | 2,391 | |
Other current liabilities [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating lease, liability, current | 640 | |
Deferred income taxes and other noncurrent liabilities [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating lease, liability, non-current | $ 1,751 |
Leases - Undiscounted Cash Flows for the Finance and Operating Leases (Parenthetical) (Details) |
Sep. 26, 2020 |
---|---|
Maximum [Member] | |
Finance lease Interest rate percentage | 4.40% |
Minimum [Member] | |
Finance lease Interest rate percentage | 2.10% |
Leases - Weighted Average Remaining Lease Term and the Weighted Average Discount Rate for Finance and Operating leases (Detail) |
Sep. 26, 2020 |
---|---|
Weighted average remaining lease term (years) | 3 years |
Weighted average discount rate | 3.20% |
Weighted average remaining lease term (years) | 4 years 2 months 12 days |
Weighted average discount rate | 4.00% |
Impairment of Intangible and Other Assets - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Jun. 27, 2020 |
Sep. 26, 2020 |
|
Impairment charges of intangible asset | $ 2,582 | $ 2,582 |
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Dec. 29, 2019 |
Mar. 28, 2020 |
|
Accounting Standards Update 2016-13 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Adoption of accounting standards (Note 15) | $ (702,000) | $ (702,000) |
Subsequent Event - Additional Information (Detail) |
1 Months Ended |
---|---|
Oct. 31, 2020
USD ($)
| |
Subsequent Event [Line Items] | |
Restructuring Charges | $ 15,000,000 |
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