(10)

Change in Accounting Estimate

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, income from continuing operations and earnings per share from continuing operations amounts in the consolidated statements of income for the thirty-nine-week and thirteen-week periods ended September 27, 2014 and September 28, 2013 (in thousands, except per share amounts):


	Thirty Nine Weeks Ended				Thirteen Weeks Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Operating income	$	7,119	$	8,236	$	372	$	3,592
Income from continuing operations		4,400		5,090		230		2,220

Earnings per share from continuing operations	$	0.10	$	0.11	$	0.01	$	0.05
Diluted earnings per share from continuing operations	$	0.10	$	0.11	$	0.01	$	0.05