Change in Accounting Estimate for Self-Insured Claims

12 Months Ended

Dec. 30, 2017

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, net income attributable to Landstar System, Inc. and subsidiary and earnings per share attributable to Landstar System, Inc. and subsidiary in the consolidated statements of income for the fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015 (in thousands, except per share amounts):

	Fiscal Years Ended
	December 30, 2017		December 31, 2016		December 26, 2015
Operating income	$	4,144	$	1,079	$	4,852
Net income attributable to Landstar System, Inc. and subsidiary		2,578		667		2,999
Earnings per share attributable to Landstar System, Inc. and subsidiary	$	0.06	$	0.02	$	0.07
Diluted earnings per share attributable to Landstar System, Inc. and subsidiary	$	0.06	$	0.02	$	0.07