Earnings Per Share

6 Months Ended

Jun. 25, 2011

Earnings Per Share

Earnings Per Share

(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):

	Twenty Six Weeks Ended				Thirteen Weeks Ended
	June 25, 2011		June 26, 2010		June 25, 2011		June 26, 2010
Average number of common shares outstanding		47,826		50,165		47,782		50,123
Incremental shares from assumed exercises of stock options		81		94		130		92
Average number of common shares and common share equivalents outstanding		47,907		50,259		47,912		50,215

For the twenty-six-week and thirteen-week periods ended June 25, 2011 there were 79,000 and 74,000, respectively, options outstanding 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. For the twenty-six-week and thirteen-week periods ended June 26, 2010 there were 1,354,813 and 647,813, respectively, options outstanding 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.