Change in Accounting Estimate for Self-Insured Claims

9 Months Ended

Sep. 28, 2024

Change in Accounting Estimate for Self-Insured Claims

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

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

The following table summarizes the adverse effect of the increase in the cost of insurance claims resulting from unfavorable development of prior year self-insured claims estimates on operating income, net income and basic and diluted earnings per share set forth in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 28, 2024 and September 30, 2023 (in thousands, except per share amounts):

	Thirty-Nine Weeks Ended				Thirteen Weeks Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Operating income	$	6,666	$	5,154	$	4,550	$	2,323
Net income	$	5,046	$	3,896	$	3,444	$	1,756
Basic and diluted earnings per share	$	0.14	$	0.11	$	0.10	$	0.05