Change in Accounting Estimate for Self-Insured Claims

12 Months Ended

Dec. 27, 2014

Change in Accounting Estimate for Self-Insured Claims

(14)     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, income from continuing operations and earnings per share from continuing operations amounts in the consolidated statements of income for the fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012 (in thousands, except per share amounts):

	Fiscal Years Ended
	December 27, 2014		December 28, 2013		December 29, 2012
Operating income	$	6,664	$	10,909	$	11
Income from continuing operations		4,118		6,742		7
Earnings per share from continuing operations	$	0.09	$	0.15	$	—
Diluted earnings per share from continuing operations	$	0.09	$	0.15	$	—