##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
 Form 10-K
  (Mark One)þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the Fiscal
    Year Ended December 26, 2009oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to  Commission File
    Number: 0-21238
  
 Landstar System, Inc.
 (Exact name of registrant as
    specified in its charter)
  Delaware

06-1313069(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)13410 Sutton Park Drive South
    Jacksonville, Florida(Address of principal
    executive offices)

32224(Zip
    Code)   (904) 398-9400
  (Registrants telephone
    number, including area code)
  Securities registered pursuant
    to Section 12(b) of the Act:
  Title of Each Class

Name of Exchange on Which RegisteredCommon Stock, $0.01 Par Value

The NASDAQ Stock Market, Inc.   Securities Registered Pursuant
    to Section 12(g) of the Act:
 None
  þ o
  o þ
  þ o
  Regulation S-T o o
  Regulation S-K Form 10-K Form 10-K. þ
  Rule 12b-2
 Large accelerated filer þ

Accelerated filer o

Non-accelerated filero
    (Do not check if a smaller reporting company)

Smaller reporting company o   Rule 12b-2 o þ
      DOCUMENTS
    INCORPORATED BY REFERENCE
  Form 10-K
  Part of 10-Kinto WhichDocument

IncorporatedProxy Statement relating to Landstar System, Inc.s Annual
    Meeting of Stockholders scheduled to be held on April 29,
    2010

Part III




---



##### 





LANDSTAR
    SYSTEM, INC.
  2009
    ANNUAL REPORT ON
    FORM 10-K
  TABLE OF
    CONTENTS
   
 PagePART IItem 1.


Business


3Item 1A.


Risk Factors


11Item 1B.


Unresolved Staff Comments


15Item 2.


Properties


15Item 3.


Legal Proceedings


15Item 4.


Submission of Matters to a Vote of Security
    Holders


16PART IIItem 5.


Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


17Item 6.


Selected Financial Data


20Item 7.


Managements Discussion and Analysis of
    Financial Condition and Results of Operations


20Item 7A.


Quantitative and Qualitative Disclosures About
    Market Risk


32Item 8.


Financial Statements and Supplementary Data


34Item 9.


Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


63Item 9A.


Controls and Procedures


63Item 9B.


Other Information


65PART IIIItem 10.


Directors, Executive Officers and Corporate
    Governance


65Item 11.


Executive Compensation


65Item 12.


Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


66Item 13.


Certain Relationships and Related Transactions,
    and Director Independence


66Item 14.


Principal Accounting Fees and Services


66PART IVItem 15.


Exhibits and Financial Statement Schedules


66Signatures


69EX-10.3EX-10.6.4EX-10.7EX-10.13EX-21.1EX-23.1EX-24.1EX-31.1EX-31.2EX-32.1EX-32.2   2




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##### Table of Contents



PART I  Item 1.
    Business  General
  (904) 398-9400. Form 10-K, Form 10-Q, Form 8-K http://www.sec.gov
    Description
    of Business
   3




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##### Table of Contents



Transportation
    Logistics Segment
  less-than-truckload U.S.-Canada U.S.-Mexico less-than-truckload fee-for-service
  Truck Services. short-to-long
  Rail Intermodal Services. pick-up
 4




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##### Table of Contents



Air and Ocean Services. door-to-door
  Advanced Technology Solutions. fee-for-service
  Warehousing Services.
  Other Services.
  Insurance
    Segment
    Factors
    Significant to the Companys Operations
    Agent
    Network
  day-to-day
 5




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##### Table of Contents



pick-up), pick-up
  agreed-upon
      Transportation
    Capacity
   6




---



##### Table of Contents



BCO Independent Contractors.
  his/her
      Truck Brokerage Carriers.
 7




---



##### Table of Contents



agreed-upon less-than-truckload
    Third Party Rail, Air, Ocean and Other Transportation
    Capacity.
  Warehouse
    Capacity
  sub-assembly
  Trailing
    Equipment
      Trailers by TypeVans


9,551Flatbeds, including step decks, drop decks and low boys


3,661Temperature-controlled


90Total


13,302    8




---



##### Table of Contents



Customers
    Technology
  fee-for-service
    Corporate
    Services
   9




---



##### Table of Contents



Competition
  less-than-truckload
    Self-Insured
    Claims
    Insurance
    Coverage Above Self-Insured Retention
   10




---



##### Table of Contents



Regulation
  and/or
    and/or
  and/or
  Seasonality
    Employees
    Item 1A.
    Risk
    Factors  Increased severity or frequency of accidents and other
    claims.
 11




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##### Table of Contents



Dependence on third party insurance
    companies.
  Dependence on independent commission sales
    agents.
  Dependence on third party capacity
    providers.
  Decreased demand for transportation
    services.
  Substantial industry competition. less-than-truckload
 12




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##### Table of Contents



Disruptions or failures in the Companys computer
    systems.
  Potential changes in fuel taxes.
  Status of independent contractors.
    Regulatory and legislative changes. and/or
 13




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##### Table of Contents



and/or and/or
      Catastrophic loss of a Company facility.
    Acquired businesses.
   14




---



##### Table of Contents



Intellectual property.
  Item 1B.
    Unresolved
    Staff Comments    Item 2.
    Properties      Item 3.
    Legal
    Proceedings     15




---



##### Table of Contents



Item 4.
    Submission
    of Matters to a Vote of Security Holders   16




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##### Table of Contents



PART II  Item 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities    2009 Market Price

2008 Market Price

Dividends DeclaredFiscal Period

High

Low

High

Low

2009

2008First Quarter

$
40.16


$
27.21


$
54.24


$
37.39


$
0.0400


$
0.0375Second Quarter


41.65



32.35



59.21



48.71



0.0400



0.0375Third Quarter


38.91



33.22



56.30



43.24



0.0450



0.0400Fourth Quarter


40.00



34.44



45.74



27.37



0.0450



0.0400       Purchases
    of Equity Securities by the Company
    Total Number of Shares

Maximum Number ofPurchased as Part of

Shares that May Yet beTotal Number of

Average Price

Publicly Announced

Purchased Under theFiscal Period

Shares Purchased

Paid per Share

Programs

ProgramsSeptember 26, 2009














2,040,296Sept. 27, 2009  Oct. 24, 2009


349,852


$
36.86



349,852



1,690,444Oct. 25, 2009  Nov. 21, 2009


314,991



35.56



314,991



1,375,453Nov. 22, 2009  Dec. 26, 2009














1,375,453Total


664,843


$
36.24



664,843    17




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##### Table of Contents



Declaration


Record


PaymentDividend Amount per Share

Date


Date


Date$0.0400


January 27, 2009



February 6, 2009



February 27, 2009$0.0400


April 14, 2009



May 7, 2009



May 29, 2009$0.0450


July 15, 2009



August 10, 2009



August 28, 2009$0.0450


October 13, 2009



November 2, 2009



November 27, 2009       Number of SecuritiesNumber of Securities



Remaining Available forto be Issued Upon

Weighted-average

Future Issuance UnderExercise of

Exercise Price of

Equity CompensationPlan Category

Outstanding Options

Outstanding Options

PlansEquity Compensation Plans Approved by Security Holders


2,557,802


$
36.86



2,722,823Equity Compensation Plans Not Approved by Security Holders


0



0



0    18




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##### Table of Contents



Financial
    Model Shareholder Returns
    Financial
    Model
    Shareholder Returns
  
 19




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##### Table of Contents



Item 6.
    Selected
    Financial Data  LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
    SELECTED CONSOLIDATED FINANCIAL DATA
    (Dollars in thousands, except per share amounts)
  Fiscal YearsIncome Statement Data:

2009


2008


2007


2006


2005Revenue

$
2,008,796


$
2,643,069


$
2,487,277


$
2,513,756


$
2,517,828Investment income


1,268



3,339



5,347



4,250



2,695Costs and expenses:Purchased transportation


1,503,520



2,033,384



1,884,207



1,890,755



1,880,431Commissions to agents


160,571



203,058



200,630



199,775



203,730Other operating costs


29,173



28,033



28,997



45,700



36,709Insurance and claims


45,918



36,374



49,832



39,522



50,166Selling, general and administrative


133,612



137,758



125,177



134,239



140,345Depreciation and amortization


23,528



20,960



19,088



16,796



15,920Total costs and expenses


1,896,322



2,459,567



2,307,931



2,326,787



2,327,301Operating income


113,742



186,841



184,693



191,219



193,222Interest and debt expense


4,030



7,351



6,685



6,821



4,744Income before income taxes


109,712



179,490



178,008



184,398



188,478Income taxes


39,762



68,560



68,355



71,313



72,880Net income


69,950



110,930



109,653



113,085



115,598Less: Net loss attributable to noncontrolling interest


(445
)














Net income attributable to Landstar System, Inc. and subsidiary

$
70,395


$
110,930


$
109,653


$
113,085


$
115,598Earnings per common share attributable to Landstar System, Inc.
    and subsidiary

$
1.38


$
2.11


$
2.01


$
1.95


$
1.95Diluted earnings per share attributable to Landstar System, Inc.
    and subsidiary

$
1.37


$
2.10


$
1.99


$
1.93


$
1.91Dividends paid per common share

$
0.170


$
0.155


$
0.135


$
0.110


$
0.050   Dec. 26,


Dec. 27,


Dec. 29,


Dec. 30,


Dec. 31,Balance Sheet Data:

2009


2008


2007


2006


2005Total assets

$
648,792


$
663,530


$
629,001


$
646,651


$
765,814Long-term debt, including current maturities


92,898



136,445



164,753



129,321



166,973Equity


268,151



253,136



180,786



230,274



255,689   Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  Forward-Looking
    Statements
  Form 10-K
 20




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##### Table of Contents



Form 10-K
  Introduction
    fee-for-service
    less-than-truckload
 21




---



##### Table of Contents



U.S.-Canada U.S.-Mexico less-than-truckload fee-for-service
    Changes
    in Financial Condition and Results of Operations
      Fiscal Year2009


2008


2007Number of Million Dollar Agents


405



484



495Average revenue generated per Million Dollar Agent

$
4,292,000


$
4,907,000


$
4,571,000Percent of consolidated revenue generated by Million Dollar
    Agents


87
%


90
%


91
%Number of independent commission sales agent locations at year
    end


1,366



1,428



1,397  22




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##### Table of Contents



Fiscal Year2009


2008


2007Revenue generated through (in thousands):BCO Independent Contractors

$
1,140,004


$
1,388,353


$
1,377,083Truck Brokerage Carriers


694,467



996,269



884,577Rail intermodal


76,346



136,367



133,878Ocean cargo carriers


33,835



42,153



26,498Air cargo carriers


17,621



14,891



19,692Other(1)


46,523



65,036



45,549$
2,008,796


$
2,643,069


$
2,487,277Number of loads :BCO Independent Contractors


761,940



820,680



857,200Truck Brokerage Carriers


501,980



571,600



588,660Rail intermodal


37,890



58,510



62,720Ocean cargo carriers


5,370



5,380



4,620Air cargo carriers


7,780



8,260



11,6001,314,960



1,464,430



1,524,800Revenue per load :BCO Independent Contractors

$
1,496


$
1,692


$
1,606Truck Brokerage Carriers


1,383



1,743



1,503Rail intermodal


2,015



2,331



2,135Ocean cargo carriers


6,301



7,835



5,735Air cargo carriers


2,265



1,803



1,698     (1)
    
    Includes premium revenue generated by the insurance segment and
    warehousing and transportation management fee revenue generated
    by the transportation logistics segment. 2009 includes $8,111 of
    transportation management fee revenue. Also, included in the
    2008 and 2007 fiscal years was $27,638 and $8,511, respectively,
    of revenue derived from transportation services provided in
    support of disaster relief efforts provided under contracts that
    have expired. 23




---



##### Table of Contents



Dec. 26,


Dec. 27,


Dec. 29,2009


2008


2007BCO Independent Contractors


7,926



8,455



8,403Truck Brokerage Carriers:Approved and active(1)


14,887



16,135



16,053Other approved


9,886



10,036



9,36224,773



26,171



25,415Total available truck capacity providers


32,699



34,626



33,818Number of trucks provided by BCO Independent Contractors


8,519



9,039



8,993     (1)
    
    Active refers to Truck Brokerage Carriers who moved at least one
    load in the 180 days immediately preceding the fiscal year
    end.    agreed-upon agreed-upon agreed-upon
  agreed-upon
   24




---



##### Table of Contents



Fiscal Year2009


2008


2007Revenue


100.0
%


100.0
%


100.0
%Investment income


0.1



0.1



0.2Costs and expenses:Purchased transportation


74.8



76.9



75.8Commissions to agents


8.0



7.7



8.1Other operating costs


1.5



1.0



1.1Insurance and claims


2.3



1.4



2.0Selling, general and administrative


6.6



5.2



5.0Depreciation and amortization


1.2



0.8



0.8Total costs and expenses


94.4



93.0



92.8Operating income


5.7



7.1



7.4Interest and debt expense


0.2



0.3



0.3Income before income taxes


5.5



6.8



7.1Income taxes


2.0



2.6



2.7Net income


3.5
%


4.2
%


4.4
%   Fiscal
    Year Ended December 26, 2009 Compared to Fiscal Year Ended
    December 27, 2008
   25




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##### Table of Contents



26




---



##### Table of Contents



Fiscal
    Year Ended December 27, 2008 Compared to Fiscal Year Ended
    December 29, 2007
         27




---



##### Table of Contents



Capital
    Resources and Liquidity
             28




---



##### Table of Contents



29




---



##### Table of Contents



Contractual
    Obligations and Commitments
    Payments Due by PeriodLess Than


1-3


4-5


More ThanContractual Obligation

Total


1 Year


Years


Years


5 YearsLong-term debt obligations

$
40,000










$
40,000Capital lease obligations


56,226


$
26,661


$
28,244



1,321Operating lease obligations


14,232



4,134



5,688



4,410Purchase obligations


19,094



16,756



2,304



34$
129,552


$
47,551


$
36,236


$
45,765


$
       Off-Balance
    Sheet Arrangements
    Legal
    Matters
     30




---



##### Table of Contents



Critical
    Accounting Policies and Estimates
   31




---



##### Table of Contents



Effects
    of Inflation
    Seasonality
    Item 7a.
    Quantitative
    and Qualitative Disclosures about Market Risk       32




---



##### Table of Contents



available-for-sale,
   33




---



##### Table of Contents



Item 8.
    Financial
    Statements and Supplementary Data  LANDSTAR
    SYSTEM, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS(Dollars in thousands, except per share amounts)
  Dec. 26,


Dec. 27,2009


2008ASSETSCurrent AssetsCash and cash equivalents

$
85,719


$
98,904Short-term investments


24,325



23,479Trade accounts receivable, less allowance of $5,547 and $6,230


278,854



315,065Other receivables, including advances to independent
    contractors, less allowance of $5,797 and $4,298


18,149



10,083Deferred income taxes and other current assets


19,565



27,871Total current assets


426,612



475,402Operating property, less accumulated depreciation and
    amortization of $124,810 and $106,635


116,656



124,178Goodwill


57,470



31,134Other assets


48,054



32,816Total assets

$
648,792


$
663,530LIABILITIES AND EQUITYCurrent LiabilitiesCash overdraft

$
28,919


$
32,065Accounts payable


121,030



105,882Current maturities of long-term debt


24,585



24,693Insurance claims


41,627



23,545Accrued income taxes


9,957



12,239Other current liabilities


32,517



38,161Total current liabilities


258,635



236,585Long-term debt, excluding current maturities


68,313



111,752Insurance claims


30,680



38,278Deferred income taxes


23,013



23,779EquityLandstar System, Inc. and subsidiary shareholders equity:Common stock, $0.01 par value, authorized
    160,000,000 shares, issued 66,255,358 and
    66,109,547 shares


663



661Additional paid-in capital


161,261



154,533Retained earnings


766,040



704,331Cost of 16,022,111 and 14,424,887 shares of common stock in
    treasury


(660,446
)


(605,828
)Accumulated other comprehensive income (loss)


498



(561
)Total Landstar System, Inc. and subsidiary shareholders
    equity


268,016



253,136Noncontrolling interest


135



Total equity


268,151



253,136Total liabilities and equity

$
648,792


$
663,530    34




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##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share
    amounts)
  Fiscal Years EndedDec. 26,


Dec. 27,


Dec. 29,2009


2008


2007Revenue

$
2,008,796


$
2,643,069


$
2,487,277Investment income


1,268



3,339



5,347Costs and expenses:Purchased transportation


1,503,520



2,033,384



1,884,207Commissions to agents


160,571



203,058



200,630Other operating costs


29,173



28,033



28,997Insurance and claims


45,918



36,374



49,832Selling, general and administrative


133,612



137,758



125,177Depreciation and amortization


23,528



20,960



19,088Total costs and expenses


1,896,322



2,459,567



2,307,931Operating income


113,742



186,841



184,693Interest and debt expense


4,030



7,351



6,685Income before income taxes


109,712



179,490



178,008Income taxes


39,762



68,560



68,355Net income

$
69,950


$
110,930


$
109,653Less: Net loss attributable to noncontrolling interest


(445
)






Net income attributable to Landstar System, Inc. and subsidiary

$
70,395


$
110,930


$
109,653Earnings per common share attributable to Landstar System, Inc.
    and subsidiary

$
1.38


$
2.11


$
2.01Diluted earnings per share attributable to Landstar System, Inc.
    and subsidiary

$
1.37


$
2.10


$
1.99Average number of shares outstanding:Earnings per common share


51,095,000



52,503,000



54,681,000Diluted earnings per share


51,280,000



52,854,000



55,156,000Dividends paid per common share

$
0.170


$
0.155


$
0.135    35




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##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands)
  Fiscal Years EndedDec. 26,


Dec. 27,


Dec. 29,2009


2008


2007OPERATING ACTIVITIESNet income

$
69,950


$
110,930


$
109,653Adjustments to reconcile net income to net cash provided by
    operating activities:Depreciation and amortization of operating property and
    intangible assets


23,528



20,960



19,088Non-cash interest charges


218



196



174Provisions for losses on trade and other accounts receivable


7,986



6,937



4,100Losses (gains) on sales and disposals of operating property, net


(55
)


176



(1,648
)Deferred income taxes, net


2,419



3,873



521Stock-based compensation


4,968



6,636



7,610Director compensation paid in common stock






634



678Changes in operating assets and liabilities:Decrease (increase) in trade and other accounts receivable


32,780



(10,657
)


7,653Decrease (increase) in other assets


8,068



28



(3,207
)Decrease in accounts payable


(1,634
)


(11,240
)


(5,191
)Decrease in other liabilities


(13,748
)


(4,813
)


(3,147
)Increase (decrease) in insurance claims


10,484



(3,971
)


4,324NET CASH PROVIDED BY OPERATING ACTIVITIES


144,964



119,689



140,608INVESTING ACTIVITIESNet change in other short-term investments


28,024



(7,887
)


3,272Sales and maturities of investments


15,932



13,801



44,224Purchases of investments


(49,965
)


(6,921
)


(48,266
)Purchases of operating property


(2,715
)


(8,289
)


(6,514
)Proceeds from sales of operating property


841



146



3,708Consideration paid for acquisitions


(14,888
)






NET CASH USED BY INVESTING ACTIVITIES


(22,771
)


(9,150
)


(3,576
)FINANCING ACTIVITIESIncrease (decrease) in cash overdraft


(3,146
)


6,296



334Dividends paid


(8,686
)


(8,136
)


(7,389
)Proceeds from exercises of stock options


1,128



12,249



12,862Excess tax benefit on stock option exercises


773



2,231



3,624Borrowings on revolving credit facility


40,000



87,000



58,000Purchases of common stock


(55,757
)


(51,576
)


(176,590
)Capital contribution from noncontrolling interest


580







Principal payments on long-term debt and capital lease
    obligations


(110,817
)


(120,110
)


(58,614
)NET CASH USED BY FINANCING ACTIVITIES


(135,925
)


(72,046
)


(167,773
)Effect of exchange rate changes on cash and cash equivalents


547



(339
)


Increase (decrease) in cash and cash equivalents


(13,185
)


38,154



(30,741
)Cash and cash equivalents at beginning of period


98,904



60,750



91,491Cash and cash equivalents at end of period

$
85,719


$
98,904


$
60,750    36




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##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFor the Fiscal Years Ended December 26, 2009,
    December 27, 2008 and December 29, 2007
    (Dollars in thousands)
  Landstar System, Inc. and Subsidiary ShareholdersAccumulatedAdditional





Treasury


Other


Non-Common Stock


Paid-In


Retained


Stock at Cost


Comprehensive


ControllingShares


Amount


Capital


Earnings


Shares


Amount


Income (Loss)


Interest


TotalBalance December 30, 2006


64,993,143


$
650


$
108,020


$
499,273



9,028,009


$
(377,662
)

$
(7
)

$
0


$
230,274Net income














109,653



















109,653Dividends paid ($0.135 per share)














(7,389
)


















(7,389
)Purchases of common stock


















4,093,100



(176,590
)










(176,590
)Exercises of stock options, including excess tax benefit


623,663



6



16,480























16,486Director compensation paid in common stock


13,577







678























678Stock-based compensation










7,610























7,610Unrealized gain on
    available-for-sale
    investments, net of income taxes


























64







64Balance December 29, 2007


65,630,383


$
656


$
132,788


$
601,537



13,121,109


$
(554,252
)

$
57


$
0


$
180,786Net income














110,930



















110,930Dividends paid ($0.155 per share)














(8,136
)


















(8,136
)Purchases of common stock


















1,303,778



(51,576
)










(51,576
)Exercises of stock options, including excess tax benefit


467,164



5



14,475























14,480Director compensation paid in common stock


12,000







634























634Stock-based compensation










6,636























6,636Foreign currency translation


























(339
)






(339
)Unrealized loss on
    available-for-sale
    investments, net of income taxes


























(279
)






(279
)Balance December 27, 2008


66,109,547


$
661


$
154,533


$
704,331



14,424,887


$
(605,828
)

$
(561
)

$
0


$
253,136Net income (loss)














70,395















(445
)


69,950Dividends paid ($0.170 per share)














(8,686
)


















(8,686
)Purchases of common stock


















1,624,547



(55,757
)










(55,757
)Exercises of stock options and issuance of non-vested stock,
    including excess tax benefit


145,811



2



1,899























1,901Capital contribution from noncontrolling interest






























580



580Consideration for acquisition paid in common stock










(139
)






(27,323
)


1,139











1,000Stock-based compensation










4,968























4,968Foreign currency translation


























547







547Unrealized gain on
    available-for-sale
    investments, net of income taxes


























512







512Balance December 26, 2009


66,255,358


$
663


$
161,261


$
766,040



16,022,111


$
(660,446
)

$
498


$
135


$
268,151    37




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
  (1)
    Significant
    Accounting Policies  Consolidation
    Estimates
    Fiscal
    Year
    Revenue
    Recognition
  fee-for-service
  Insurance
    Claim Costs
    Tires
   38




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Cash
    and Cash Equivalents
    Trade
    and Other Receivables
    Operating
    Property
    Goodwill
    and Other Intangible Assets
    Income
    Taxes
    Earnings
    Per Share
   39




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Fiscal Year2009


2008


2007Average number of common shares outstanding


51,095



52,503



54,681Incremental shares from assumed exercises of stock options


185



351



475Average number of common shares and common share equivalents
    outstanding


51,280



52,854



55,156     Share-Based
    Payments
    Foreign
    Currency Translation
    Subsequent
    Events
     40




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   (2)
    Acquisitions    (3)
    Comprehensive
    Income    Fiscal Year2009


2008


2007Net income attributable to Landstar System, Inc. and subsidiary

$
70,395


$
110,930


$
109,653Unrealized holding gains (losses) on
    available-for-sale
    investments, net of income taxes


512



(279
)


64Foreign currency translation gains (losses)


547



(339
)


Comprehensive income attributable to Landstar System, Inc. and
    subsidiary

$
71,454


$
110,312


$
109,717   available-for-sale mark-to-market available-for-sale mark-to-market available-for-sale mark-to-market available-for-sale
  (4)
    Investments  available-for-sale available-for-sale other-than-temporary.
 41




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  other-than-temporary, and/or available-for-sale
    Gross


Gross


FairAmortized


Unrealized


Unrealized


MarketCost


Gains


Losses


ValueDecember 26, 2009Corporate bonds and direct obligations of U.S. government
    agencies

$
39,261


$
668


$
226


$
39,703U.S. Treasury obligations


11,489



6







11,495Total

$
50,750


$
674


$
226


$
51,198December 27, 2008Corporate bonds and direct obligations of U.S. government
    agencies

$
15,135


$
166


$
599


$
14,702U.S. Treasury obligations


1,642



90







1,732Total

$
16,777


$
256


$
599


$
16,434   available-for-sale
  Less Than 12 Months

12 Months or Longer

TotalFair Market

Unrealized

Fair Market

Unrealized

Fair Market



UnrealizedValue

Loss

Value

Loss

Value



LossDecember 26, 2009Corporate bonds and direct obligations of U.S. government
    agencies

$
1,989


$
10


$
1,192


$
216


$
3,181






$
226December 27, 2008Corporate bonds and direct obligations of U.S. government
    agencies

$
5,473


$
139


$
2,491


$
460


$
7,964






$
599    42




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      (5)
    Income
    Taxes    Fiscal Year2009


2008


2007Current:Federal

$
35,878


$
57,249


$
61,266State


656



6,267



6,568Canadian


809



1,171



$
37,343


$
64,687


$
67,834Deferred:Federal

$
2,035


$
3,438


$
296State


384



435



2252,419



3,873



521Income taxes

$
39,762


$
68,560


$
68,355     Dec. 26,


Dec. 27,2009


2008Deferred tax assets:Receivable valuations

$
4,787


$
5,401Share-based payments


5,426



5,050Self-insured claims


5,288



6,782Other


5,938



2,807$
21,439


$
20,040Deferred tax liabilities:Operating property

$
27,433


$
25,758Other


8,040



5,897$
35,473


$
31,655Net deferred tax liability

$
14,034


$
11,615  43




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Fiscal Year2009


2008


2007Income taxes at federal income tax rate

$
38,399


$
62,822


$
62,303State income taxes, net of federal income tax benefit


676



4,356



4,415Meals and entertainment exclusion


870



493



802Share-based payments


636



515



598Other, net


(819
)


374



237Income taxes

$
39,762


$
68,560


$
68,355         Fiscal Year2009


2008Gross unrecognized tax benefits  beginning of the year

$
16,110


$
16,401Gross increases related to current year tax positions


635



2,161Gross increases related to prior year tax positions


2,570



1,759Gross decreases related to prior year tax positions


(3,420
)


(1,163
)Settlements


(381
)


(352
)Lapse of statute of limitations


(3,548
)


(2,696
)Gross unrecognized tax benefits  end of the year

$
11,966


$
16,110    44




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   (6)
    Operating
    Property    Dec. 26,


Dec. 27,2009


2008Land

$
1,921


$
1,921Leasehold improvements


9,749



9,654Buildings and improvements


8,218



8,206Trailing equipment


183,247



173,254Other equipment


38,331



37,778241,466



230,813Less accumulated depreciation and amortization


124,810



106,635$
116,656


$
124,178     (7)
    Retirement
    Plan      (8)
    Debt    Dec. 26,


Dec. 27,2009


2008Capital leases

$
52,898


$
66,445Revolving credit facility


40,000



70,00092,898



136,445Less current maturities


24,585



24,693Total long-term debt

$
68,313


$
111,752    45




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
         46




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   (9)
    Leases    Capital


OperatingLeases


Leases2010

$
26,661


$
4,1342011


20,274



3,0602012


7,970



2,6282013


1,022



2,3922014


299



2,018Thereafter






56,226


$
14,232Less amount representing interest (3.1% to 5.9%)


3,328Present value of minimum lease payments

$
52,898       (10)
    Share-Based
    Payment Arrangements  Employee
    and Director Equity Plans
     47




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Fiscal YearsDec. 26,


Dec. 27,


Dec. 29,2009


2008


2007Total cost of the Plans during the period

$
4,968


$
6,636


$
7,610Amount of related income tax benefit recognized during the period


1,163



1,973



2,187Net cost of the Plans during the period

$
3,805


$
4,663


$
5,423       2009


2008


2007Expected volatility


38.0
%


33.0
%


33.0
%Expected dividend yield


0.400
%


0.375
%


0.300
%Risk-free interest rate


1.50
%


3.00
%


4.75
%Expected lives (in years)


4.4



4.1



4.2        48




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Options Outstanding


Options ExercisableWeighted Average





Weighted AverageExercise Price





Exercise PriceShares


per Share


Shares


per ShareOptions at December 30, 2006


2,566,571


$
27.35



779,739


$
16.29Granted


275,500


$
43.00Exercised


(623,663
)

$
20.62Forfeited


(19,100
)

$
39.73Options at December 29, 2007


2,199,308


$
31.11



747,626


$
24.73Granted


777,500


$
42.30Exercised


(467,164
)

$
26.22Forfeited


(4,000
)

$
44.63Options at December 27, 2008


2,505,644


$
35.47



822,211


$
30.75Granted


367,000


$
38.20Exercised


(207,342
)

$
19.31Forfeited


(107,500
)

$
42.77Options at December 26, 2009


2,557,802


$
36.86



1,225,802


$
32.43     Options OutstandingNumber


Weighted Average


Weighted AverageOutstanding


Remaining Contractual


Exercise PriceRange of Exercise Prices Per Share

Dec. 26, 2009


Life (Years)


per Share$ 8.08 - $10.00


73,800



1.4


$
8.25$10.01 - $15.00


122,776



2.9


$
13.67$15.01 - $25.00


191,000



4.0


$
19.37$25.01 - $35.00


166,979



5.0


$
31.29$35.01 - $40.00


600,167



7.7


$
37.96$40.01 - $44.00


1,134,580



7.3


$
42.36$44.01 - $48.15


268,500



7.4


$
45.562,557,802



6.6


$
36.86   Options ExercisableNumber


Weighted Average


Weighted AverageExercisable


Remaining Contractual


Exercise PriceRange of Exercise Prices Per Share

Dec. 26, 2009


Life (Years)


per Share$ 8.08 - $10.00


73,800



1.4


$
8.25$10.01 - $15.00


122,776



2.9


$
13.67$15.01 - $25.00


191,000



4.0


$
19.37$25.01 - $35.00


139,779



5.0


$
31.13$35.01 - $40.00


178,667



5.0


$
37.33$40.01 - $44.00


415,780



6.3


$
43.44$44.01 - $48.15


104,000



7.3


$
44.971,225,802



5.1


$
32.43  49




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Directors
    Stock Compensation Plan
    (11)
    Equity      (12)
    Commitments
    and Contingencies     50




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
               51




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      (13)
    Segment
    Information    less-than-truckload U.S.-Canada U.S.-Mexico less-than-truckload fee-for-service
   52




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
          TransportationLogistics

Insurance

Total2009External revenue

$
1,972,863


$
35,933


$
2,008,796Internal revenue






27,179



27,179Investment income






1,268



1,268Interest and debt expense


4,030







4,030Depreciation and amortization


23,528







23,528Operating income


88,176



25,566



113,742Expenditures on long-lived assets


2,715







2,715Goodwill


57,470







57,470Capital lease additions


12,284







12,284Total assets


524,584



124,208



648,7922008External revenue

$
2,606,216


$
36,853


$
2,643,069Internal revenue






27,565



27,565Investment income






3,339



3,339Interest and debt expense


7,351







7,351Depreciation and amortization


20,960







20,960Operating income


148,385



38,456



186,841Expenditures on long-lived assets


8,289







8,289Goodwill


31,134







31,134Capital lease additions


4,802







4,802Total assets


530,163



133,367



663,5302007External revenue

$
2,450,411


$
36,866


$
2,487,277Internal revenue






29,217



29,217Investment income






5,347



5,347Interest and debt expense


6,685







6,685Depreciation and amortization


19,088







19,088Operating income


150,638



34,055



184,693Expenditures on long-lived assets


6,514







6,514Goodwill


31,134







31,134Capital lease additions


36,046







36,046Total assets


539,618



89,383



629,001  53




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM             KPMG
    LLP
     54




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARY
    QUARTERLY FINANCIAL DATA
    (Dollars in thousands, except per share amounts)
    (Unaudited)
  Fourth


Third


Second


FirstQuarter


Quarter


Quarter


Quarter2009


2009


2009


2009Revenue

$
547,715


$
500,670


$
491,164


$
469,247Operating income

$
27,570


$
32,678


$
29,776


$
23,718Income before income taxes

$
26,633


$
31,721


$
28,803


$
22,555Income taxes


8,296



11,859



10,946



8,661Net income

$
18,337


$
19,862


$
17,857


$
13,894Less: Net loss attributable to noncontrolling interest


(231
)


(214
)






Net income attributable to Landstar System, Inc and subsidiary

$
18,568


$
20,076


$
17,857


$
13,894Earnings per common share attributable to Landstar System, Inc.
    and subsidiary(1)

$
0.37


$
0.39


$
0.35


$
0.27Diluted earnings per share attributable to Landstar System, Inc.
    and subsidiary(1)

$
0.37


$
0.39


$
0.35


$
0.27Dividends paid per common share

$
0.0450


$
0.0450


$
0.0400


$
0.0400   Fourth


Third


Second


FirstQuarter


Quarter


Quarter


Quarter2008


2008


2008


2008Revenue

$
603,837


$
732,753


$
697,651


$
608,828Operating income

$
40,977


$
54,690


$
50,185


$
40,989Income before income taxes

$
39,261


$
52,933


$
48,449


$
38,847Income taxes


14,656



20,116



18,684



15,104Net income

$
24,605


$
32,817


$
29,765


$
23,743Less: Net income attributable to noncontrolling interest














Net income attributable to Landstar System, Inc and subsidiary

$
24,605


$
32,817


$
29,765


$
23,743Earnings per common share attributable to Landstar System, Inc.
    and subsidiary(1)

$
0.47


$
0.62


$
0.56


$
0.45Diluted earnings per share attributable to Landstar System, Inc.
    and subsidiary(1)

$
0.47


$
0.62


$
0.56


$
0.45Dividends paid per common share

$
0.0400


$
0.0400


$
0.0375


$
0.0375     (1)
    
    Due to the changes in the number of average common shares and
    common stock equivalents outstanding during the year, the sum of
    earnings per share amounts for each quarter do not necessarily
    sum in the aggregate to the earnings per share amounts for the
    full year. 55




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
         KPMG
    LLP
     56




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC.
 SCHEDULE I 
    CONDENSED FINANCIAL INFORMATION OF REGISTRANT
    PARENT COMPANY ONLY BALANCE SHEET INFORMATION(Dollars in thousands, except per share amounts) Dec. 26,


Dec. 27,2009


2008ASSETSInvestment in Landstar System Holdings, Inc., net of advances

$
268,151


$
253,136Total assets

$
268,151


$
253,136LIABILITIES AND EQUITYEquity:Landstar System, Inc. and subsidiary shareholders equityCommon stock, $0.01 par value, authorized
    160,000,000 shares, issued 66,255,358 and 66,109,547

$
663


$
661Additional paid-in capital


161,261



154,533Retained earnings


766,040



704,331Cost of 16,022,111 and 14,424,887 shares of common stock in
    treasury


(660,446
)


(605,828
)Accumulated other comprehensive income/(loss)


498



(561
)Total Landstar System, Inc. and subsidiary shareholders
    equity


268,016



253,136Noncontrolling interest


135



Total liabilities and equity

$
268,151


$
253,136    57




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC.
 SCHEDULE I 
    CONDENSED FINANCIAL INFORMATION OF REGISTRANT
    PARENT COMPANY ONLY STATEMENT OF INCOME INFORMATION(Dollars in thousands, except per share amounts) Fiscal Years EndedDec. 26,


Dec. 27,


Dec. 29,2009


2008


2007Equity in undistributed earnings of Landstar System Holdings,
    Inc.

$
70,341


$
110,331


$
109,200Income taxes


(54
)


(599
)


(453
)Net income attributable to Landstar System, Inc. and subsidiary

$
70,395


$
110,930


$
109,653Earnings per common share attributable to Landstar System, Inc.
    and subsidiary

$
1.38


$
2.11


$
2.01Diluted earnings per share attributable to Landstar System, Inc.
    and subsidiary

$
1.37


$
2.10


$
1.99Dividends paid per common share

$
0.170


$
0.155


$
0.135Average number of shares outstanding:Earnings per common share


51,095,000



52,503,000



54,681,000Diluted earnings per share


51,280,000



52,854,000



55,156,000    58




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC.
 SCHEDULE I 
    CONDENSED FINANCIAL INFORMATION OF REGISTRANT
    PARENT COMPANY ONLY STATEMENT OF CASH FLOWS INFORMATION(Dollars in thousands) Fiscal Years EndedDec. 26,


Dec. 27,


Dec. 29,2009


2008


2007Operating ActivitiesNet income

$
70,395


$
110,930


$
109,653Adjustments to reconcile net income to net cash provided by
    operating activities:Equity in undistributed earnings of Landstar System Holdings,
    Inc.


(70,341
)


(110,331
)


(109,200
)Net Cash Provided By Operating Activities


54



599



453Investing ActivitiesAdditional investments in and advances from Landstar System
    Holdings, Inc., net


61,941



44,972



167,040Net Cash Provided By Investing Activities


61,941



44,972



167,040Financing ActivitiesExcess tax benefit on stock option exercises


773



2,231



3,624Proceeds from exercises of stock options


1,128



12,249



12,862Dividends paid


(8,686
)


(8,136
)


(7,389
)Purchases of common stock


(55,757
)


(51,576
)


(176,590
)Net Cash Used By Financing Activities


(62,542
)


(45,232
)


(167,493
)Effect of exchange rate changes on cash and cash equivalents


547



(339
)


0Change in cash and cash equivalents


0



0



0Cash and cash equivalents at beginning of period


0



0



0Cash and cash equivalents at end of period

$
0


$
0


$
0    59




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARYSCHEDULE II  VALUATION AND
    QUALIFYING ACCOUNTSFor the Fiscal Year Ended December 26, 2009
    (Dollars in thousands)
  COL A

COL B


COL C


COL D


COL EAdditionsCharged toBalance at


Charged to


Other


Deductions


Balance atBeginning of


Costs and


Accounts


Describe


End ofPeriod


Expenses


Describe


(A)


PeriodDescriptionAllowance for doubtful accounts:Deducted from trade receivables

$
6,230


$
3,801






$
(4,484
)

$
5,547Deducted from other receivables


4,866



4,182







(2,321
)


6,727Deducted from other non-current receivables


316



3











319$
11,412


$
7,986






$
(6,805
)

$
12,593     (A)
    
    Write-offs, net of recoveries.   60




---



##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARYSCHEDULE II  VALUATION AND
    QUALIFYING ACCOUNTSFor the Fiscal Year Ended December 27, 2008
    (Dollars in thousands)
  COL A

COL B


COL C


COL D


COL EAdditionsCharged toBalance at


Charged to


Other


Deductions


Balance atBeginning of


Costs and


Accounts


Describe


End ofPeriod


Expenses


Describe


(A)


PeriodDescriptionAllowance for doubtful accounts:Deducted from trade receivables

$
4,469


$
4,641






$
(2,880
)

$
6,230Deducted from other receivables


4,792



2,290







(2,216
)


4,866Deducted from other non-current receivables


310



6











316$
9,571


$
6,937






$
(5,096
)

$
11,412     (A)
    
    Write-offs, net of recoveries.   61




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##### Table of Contents



LANDSTAR
    SYSTEM, INC. AND SUBSIDIARYSCHEDULE II  VALUATION AND
    QUALIFYING ACCOUNTSFor the Fiscal Year Ended December 29, 2007
    (Dollars in thousands)
  COL A

COL B


COL C


COL D


COL EAdditionsCharged toBalance at


Charged to


Other


Deductions


Balance atBeginning of


Costs and


Accounts


Describe


End ofPeriod


Expenses


Describe


(A)


PeriodDescriptionAllowance for doubtful accounts:Deducted from trade receivables

$
4,834


$
2,501






$
(2,866
)

$
4,469Deducted from other receivables


4,512



1,586







(1,306
)


4,792Deducted from other non-current receivables


297



13











310$
9,643


$
4,100






$
(4,172
)

$
9,571     (A)
    
    Write-offs, net of recoveries   62




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##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure    Item 9A.
    Controls
    and Procedures  Disclosure
    Controls and Procedures
  Form 10-K, Rule 13a-15(e)
    Internal
    Control Over Financial Reporting
  (a)
    Managements
    Report on Internal Control over Financial
    Reporting  Rules 13a-15(f) 15d-15(f)
       63




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##### Table of Contents



Form 10-K
  (b)
    Attestation
    Report of the Registered Public Accounting Firm  REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
                64




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##### Table of Contents



(c)
    Changes
    in Internal Control Over Financial Reporting    Item 9B.
    Other
    Information   PART III  Item 10.
    Directors,
    Executive Officers and Corporate Governance    www.landstar.com Form 8-K
  Item 11.
    Executive
    Compensation   65




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##### Table of Contents



Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters  Regulation S-K
  Regulation S-K
  Item 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence    Item 14.
    Principal
    Accounting Fees and Services   PART IV  Item 15.
    Exhibits
    and Financial Statement Schedules  Financial Statements and Supplementary Data
   
 PageConsolidated Balance Sheets


34Consolidated Statements of Income


35Consolidated Statements of Cash Flows


36Consolidated Statement of Changes in Equity


37Notes to Consolidated Financial Statements


38Report of Independent Registered Public
    Accounting Firm


54  66




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##### Table of Contents



Financial Statement Schedules
  Form 10-K.
  ScheduleNumber

Description

PageI


Condensed Financial Information of Registrant
    Parent Company Only Balance Sheet Information


57I


Condensed Financial Information of Registrant
    Parent Company Only Statement of Income Information


58I


Condensed Financial Information of Registrant
    Parent Company Only Statement of Cash Flows Information


59II


Valuation and Qualifying Accounts For the Fiscal
    Year Ended December 26, 2009


60II


Valuation and Qualifying Accounts For the Fiscal
    Year Ended December 27, 2008


61II


Valuation and Qualifying Accounts For the Fiscal
    Year Ended December 29, 2007


62      Exhibits
  ExhibitNo.

Description(3)


Articles of Incorporation and By-Laws:3
.1

Restated Certificate of Incorporation of the Company dated
    March 6, 2006, including Certificate of Designation of
    Junior Participating Preferred Stock dated February 10,
    1993. (Incorporated by reference to Exhibit 3.1 to the
    Registrants Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2005 (Commission
    File
    No. 0-21238))3
.2

The Companys Bylaws, as amended and restated on
    November 1, 2007. (Incorporated by reference to
    Exhibit 3.1 to the Registrants Quarterly Report on
    Form 10-Q
    for the fiscal quarter ended September 29, 2007 (Commission
    File
    No. 0-21238))(4)


Instruments defining the rights of security holders,
    including indentures:4
.1

Specimen of Common Stock Certificate. (Incorporated by reference
    to Exhibit 4.1 to the Registrants Registration
    Statement on
    Form S-1
    (Registration
    No. 33-57174))4
.2

Credit Agreement, dated as of June 27, 2008, among LSHI,
    Landstar, the lenders named therein and JPMorgan Chase Bank,
    N.A., as administrative agent (including exhibits and schedules
    thereto). (Incorporated by reference to Exhibit 99.1 to the
    Registrants
    Form 8-K
    filed on July 3, 2008 (Commission File
    No. 0-21238))(10)


Material contracts:10
.1+

Landstar System, Inc. Executive Incentive Compensation Plan
    (Incorporated by reference to Exhibit A to the
    Registrants Definitive Proxy Statement filed on
    April 2, 2007 (Commission
    File No. 0-21238))10
.2+

Amendment to the Landstar System, Inc. Executive Incentive
    Compensation Plan, effective as of December 3, 2008
    (Incorporated by reference to Exhibit 10.2 to the
    Registrants Annual Report on
    Form 10-K
    for the fiscal year ended December 27, 2008 (Commission
    File
    No. 0-21238))10
.3+*

Landstar System, Inc. Supplemental Executive Retirement Plan, as
    amended and restated as of January 1, 201010
.4+

Landstar System, Inc. 1993 Stock Option Plan, as amended as of
    December 31, 2008 (Incorporated by reference to
    Exhibit 99.2 to the Registrants Current Report on
    Form 8-K
    filed on January 7, 2009 (Commission File
    No. 0-21238))10
.5+

Amended and Restated Landstar System, Inc. 2002 Employee Stock
    Option and Stock Incentive Plan (Incorporated by reference to
    Exhibit A to the Registrants Definitive Proxy
    Statement filed on March 23, 2009 (Commission File
    No. 0-21238))10
.6.1+

Landstar System, Inc. 1994 Directors Stock Option Plan.
    (Incorporated by reference to Exhibit 99 to the
    Registrants Registration Statement on
    Form S-8
    filed July 5, 1995 (Registration
    No. 33-94304)) 67




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##### Table of Contents



ExhibitNo.

Description10
.6.2+

First Amendment to the Landstar System, Inc. 1994 Directors
    Stock Option Plan (Incorporated by reference to
    Exhibit 10.8 to the Registrants Annual Report on
    Form 10-K
    for the fiscal year ended December 30, 2000 (Commission
    File
    No. 0-21238))10
.6.3+

Second Amendment to the Landstar System, Inc.
    1994 Directors Stock Option Plan (Incorporated by reference
    to Exhibit 10.9 to the Registrants Annual Report on
    Form 10-K
    for the fiscal year ended December 30, 2000 (Commission
    File
    No. 0-21238))10
.6.4+*

Third Amendment to the Landstar System, Inc. 1994 Directors
    Stock Option Plan10
.7+*

Directors Stock Compensation Plan, as amended and restated as of
    February 22, 201010
.8+

Form of Indemnification Agreement between the Company and each
    of the directors and executive officers of the Company.
    (Incorporated by reference to Exhibit 10.2 to the
    Registrants Annual Report on
    Form 10-K
    for the fiscal year ended December 27, 2003 (Commission
    No. 0-21238))10
.9+

Form of Key Executive Employment Protection Agreement between
    Landstar System, Inc. and each of the Executive Officers of the
    Company (Incorporated by reference to Exhibit 10.13 to the
    Registrants Annual Report on
    Form 10-K
    for the fiscal year ended December 30, 2006 (Commission
    File
    No. 0-21238))10
.10+

Form of Amendment to Key Executive Employment Protection
    Agreement between Landstar System, Inc. and each of the
    Executive Officers of the Company10
.11+

Letter Agreement, dated July 2, 2002 from Jeffrey C. Crowe
    to Henry H. Gerkens. (Incorporated by reference to
    Exhibit 10.17 to the Registrants Annual Report on
    Form 10-K
    for the fiscal year ended December 28, 2002 (Commission
    File
    No. 0-21238))10
.12+

Letter Agreement, dated December 31, 2008, between Landstar
    System, Inc. and Henry H. Gerkens (Incorporated by reference to
    Exhibit 99.1 to the Registrants Current Report on
    Form 8-K
    filed on December 31, 2008 (Commission File
    No. 0-21238))10
.13+*

Consulting Services Agreement, dated as of December 18,
    2009, between Landstar System, Inc. and Jeffrey C. Crowe(21)


Subsidiaries of the Registrant:21
.1*

List of Subsidiary Corporations of the Registrant(23)


Consents of experts and counsel:23
.1*

Consent of KPMG LLP as Independent Registered Public Accounting
    Firm(24)


Power of attorney:24
.1*

Powers of Attorney(31)


Certifications pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002:31
.1*

Chief Executive Officer certification, as adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 200231
.2*

Chief Financial Officer certification, as adopted pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002(32)


Certifications pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002:32
.1**

Chief Executive Officer certification pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 200232
.2**

Chief Financial Officer certification pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002     +
    
    management contract or compensatory plan or arrangement*
    
    Filed herewith.**
    
    Furnished herewith.   68




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##### Table of Contents



SIGNATURES      By:
    /s/  Henry
    H. Gerkens    Chairman of the Board, President and
    Chief Executive Officer
   By:
    /s/  James
    B. Gattoni    Vice President and Chief Financial Officer
      Signature

Title

Date/s/  Henry
    H. GerkensHenry
    H. Gerkens

Chairman, President and
    Chief Executive Officer;
    Principal Executive Officer

February 23, 2010/s/  James
    B. GattoniJames
    B. Gattoni

Vice President and
    Chief Financial Officer; 
    Principal Accounting Officer

February 23, 2010*David
    G. Bannister

Director

February 23, 2010*Jeffrey
    C. Crowe

Director

February 23, 2010*William
    S. Elston

Director

February 23, 2010*Michael
    A. Henning

Director

February 23, 2010*Diana
    M. Murphy

Director

February 23, 2010By:

/s/  Michael
    K. KnellerMichael
    K. KnellerAttorney In Fact*  69