Discontinued Operations

9 Months Ended

Sep. 27, 2014

Discontinued Operations

(1) Discontinued Operations

On December 28, 2013, the Company completed the sale of Landstar Supply Chain Solutions, Inc., a Delaware corporation, including its wholly owned subsidiary, Landstar Supply Chain Solutions LLC (collectively, “LSCS”), which was part of the Company’s Transportation Logistics segment, to XPO Logistics, Inc. (“XPO”). XPO paid a purchase price of $87.0 million in cash as consideration for LSCS. The net assets of LSCS acquired by XPO were $32.5 million. Direct transaction costs related to the transaction, primarily legal and other professional fees and payments made to certain executives of LSCS in connection with the transaction, were approximately $2.4 million. Net of income taxes of $19.1 million, the sale resulted in a gain on the sale of discontinued operations of $33.0 million, or $0.71 per diluted share in fiscal year 2013. There were no interest costs or corporate overhead expenses allocated in the gain calculation. Prior year operating results of LSCS have been reclassified in the consolidated financial statements to discontinued operations.

The following table summarizes specific financial components of discontinued operations presented in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 28, 2013 (in thousands):

	Thirty Nine Weeks Ended			Thirteen Weeks Ended
Revenue	$	15,377		$	4,986
Income from discontinued operations before income taxes		4,330			1,166
Income taxes on income from discontinued operations		(1,624	)		(423	)
Income from discontinued operations, net of income taxes	$	2,706		$	743