##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 26, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from   to
 Commission File Number: 0-21238
 
 LANDSTAR SYSTEM, INC.
  Delaware
(State or other jurisdiction 
of incorporation or organization)
    
    06-1313069
(I.R.S. Employer
Identification No.)
 13410 Sutton Park Drive South, Jacksonville, Florida
 32224
 (904) 398-9400
 N/A
  þ o
  o o
  Large accelerated filer þAccelerated filer oNon-accelerated filer o(Do not check if a smaller reporting company)Smaller reporting company o  o þ




---



##### 



PART I Financial InformationItem 1.Financial Statements (unaudited)Consolidated Balance Sheets as of September 26, 2009 and December 27, 2008
    
    Page 3Consolidated Statements of Income for the Thirty Nine and Thirteen Weeks Ended September 26, 2009 and September 27, 2008
    
    Page 4Consolidated Statements of Cash Flows for the Thirty Nine Weeks Ended September 26, 2009 and September 27, 2008
    
    Page 5Consolidated Statement of Changes in Equity for the Thirty Nine Weeks Ended September 26, 2009
    
    Page 6Notes to Consolidated Financial Statements
    
    Page 7Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    Page 13Item 3.Quantitative and Qualitative Disclosures About Market Risk
    
    Page 21Item 4.Controls and Procedures
    
    Page 22PART II Other InformationItem 1.Legal Proceedings
    
    Page 22Item 1A.Risk Factors
    
    Page 23Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
    
    Page 23Item 6.Exhibits
    
    Page 24Signatures
    
    Page 26EX  31.1 Section 302 CEO CertificationEX  31.2 Section 302 CFO CertificationEX  32.1 Section 906 CEO CertificationEX  32.2 Section 906 CFO CertificationEX-31.1EX-31.2EX-32.1EX-32.2
  
 PART I 
 
    2




---



##### Table of Contents



Sept. 26,
    
    
    Dec. 27,2009
    
    
    2008ASSETSCurrent AssetsCash and cash equivalents
    
    $
    68,990
    
    
    $
    98,904Short-term investments
    
    
    23,706
    
    
    
    23,479Trade accounts receivable, less allowance of $7,190 and $6,230
    
    
    258,565
    
    
    
    315,065Other receivables, including advances to independent contractors, less allowance
of $4,808 and $4,298
    
    
    9,978
    
    
    
    10,083Deferred income taxes and other current assets
    
    
    26,627
    
    
    
    27,871Total current assets
    
    
    387,866
    
    
    
    475,402Operating property, less accumulated depreciation and amortization of $119,890
and $106,635
    
    
    122,297
    
    
    
    124,178Goodwill
    
    
    57,297
    
    
    
    31,134Other assets
    
    
    50,284
    
    
    
    32,816Total assets
    
    $
    617,744
    
    
    $
    663,530LIABILITIES AND EQUITYCurrent LiabilitiesCash overdraft
    
    $
    21,219
    
    
    $
    32,065Accounts payable
    
    
    110,029
    
    
    
    105,882Current maturities of long-term debt
    
    
    25,988
    
    
    
    24,693Insurance claims
    
    
    26,039
    
    
    
    23,545Accrued income taxes
    
    
    12,456
    
    
    
    12,239Other current liabilities
    
    
    33,941
    
    
    
    38,161Total current liabilities
    
    
    229,672
    
    
    
    236,585Long-term debt, excluding current maturities
    
    
    49,053
    
    
    
    111,752Insurance claims
    
    
    35,667
    
    
    
    38,278Deferred income taxes
    
    
    28,307
    
    
    
    23,779EquityLandstar System, Inc. and subsidiary shareholders equityCommon stock, $0.01 par value, authorized 160,000,000 shares, issued 66,192,767
and 66,109,547 shares
    
    
    662
    
    
    
    661Additional paid-in capital
    
    
    159,581
    
    
    
    154,533Retained earnings
    
    
    749,739
    
    
    
    704,331Cost of 15,357,268 and 14,424,887 shares of common stock in treasury
    
    
    (636,349
    )
    
    
    (605,828
    )Accumulated other comprehensive income (loss)
    
    
    251
    
    
    
    (561
    )Total Landstar System, Inc. and subsidiary shareholders equity
    
    
    273,884
    
    
    
    253,136Noncontrolling interest
    
    
    1,161
    
    
    
    Total equity
    
    
    275,045
    
    
    
    253,136Total liabilities and equity
    
    $
    617,744
    
    
    $
    663,530
  3




---



##### Table of Contents



Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 26,
    
    
    Sept. 27,
    
    
    Sept. 26,
    
    
    Sept.  27,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenue
    
    $
    1,461,081
    
    
    $
    2,039,232
    
    
    $
    500,670
    
    
    $
    732,753Investment income
    
    
    954
    
    
    
    2,686
    
    
    
    279
    
    
    
    817Costs and expenses:Purchased transportation
    
    
    1,090,219
    
    
    
    1,573,209
    
    
    
    372,328
    
    
    
    569,864Commissions to agents
    
    
    117,735
    
    
    
    153,857
    
    
    
    39,484
    
    
    
    54,267Other operating costs
    
    
    21,749
    
    
    
    20,814
    
    
    
    6,911
    
    
    
    6,874Insurance and claims
    
    
    29,056
    
    
    
    27,159
    
    
    
    10,257
    
    
    
    8,125Selling, general and administrative
    
    
    99,690
    
    
    
    105,457
    
    
    
    33,078
    
    
    
    34,499Depreciation and amortization
    
    
    17,414
    
    
    
    15,558
    
    
    
    6,213
    
    
    
    5,251Total costs and expenses
    
    
    1,375,863
    
    
    
    1,896,054
    
    
    
    468,271
    
    
    
    678,880Operating income
    
    
    86,172
    
    
    
    145,864
    
    
    
    32,678
    
    
    
    54,690Interest and debt expense
    
    
    3,093
    
    
    
    5,635
    
    
    
    957
    
    
    
    1,757Income before income taxes and noncontrolling
interest
    
    
    83,079
    
    
    
    140,229
    
    
    
    31,721
    
    
    
    52,933Income taxes
    
    
    31,466
    
    
    
    53,904
    
    
    
    11,859
    
    
    
    20,116Net income
    
    
    51,613
    
    
    
    86,325
    
    
    
    19,862
    
    
    
    32,817Less: Net loss attributable to
noncontrolling interest
    
    
    (214
    )
    
    
    
    
    
    
    (214
    )
    
    
    Net income attributable to Landstar System,
Inc. and subsidiary
    
    $
    51,827
    
    
    $
    86,325
    
    
    $
    20,076
    
    
    $
    32,817Earnings per common share attributable to
Landstar System, Inc. and subsidiary
    
    $
    1.01
    
    
    $
    1.64
    
    
    $
    0.39
    
    
    $
    0.62Diluted earnings per share attributable to
Landstar System, Inc. and subsidiary
    
    $
    1.01
    
    
    $
    1.62
    
    
    $
    0.39
    
    
    $
    0.62Average number of shares outstanding:Earnings per common share
    
    
    51,325,000
    
    
    
    52,680,000
    
    
    
    51,069,000
    
    
    
    52,586,000Diluted earnings per share
    
    
    51,507,000
    
    
    
    53,142,000
    
    
    
    51,245,000
    
    
    
    53,028,000Dividends paid per common share
    
    $
    0.1250
    
    
    $
    0.1150
    
    
    $
    0.0450
    
    
    $
    0.0400
  4




---



##### Table of Contents



Thirty Nine Weeks EndedSept. 26,
    
    
    Sept. 27,2009
    
    
    2008OPERATING ACTIVITIESNet income
    
    $
    51,613
    
    
    $
    86,325Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization of operating property and intangible assets
    
    
    17,414
    
    
    
    15,558Non-cash interest charges
    
    
    164
    
    
    
    130Provisions for losses on trade and other accounts receivable
    
    
    6,364
    
    
    
    4,684Losses (gains) on sales/disposals of operating property
    
    
    (96
    )
    
    
    120Director compensation paid in common stock
    
    
    
    
    
    
    634Deferred income taxes, net
    
    
    3,756
    
    
    
    5,984Stock-based compensation
    
    
    3,747
    
    
    
    4,994Changes in operating assets and liabilities:Decrease (increase) in trade and other accounts receivable
    
    
    62,862
    
    
    
    (84,527
    )Decrease (increase) in other assets
    
    
    4,736
    
    
    
    (7,701
    )Increase (decrease) in accounts payable
    
    
    (12,635
    )
    
    
    27,608Increase (decrease) in other liabilities
    
    
    (9,609
    )
    
    
    1,035Decrease in insurance claims
    
    
    (117
    )
    
    
    (4,486
    )NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    128,199
    
    
    
    50,358INVESTING ACTIVITIESNet change in other short-term investments
    
    
    26,334
    
    
    
    (8,866
    )Sales and maturities of investments
    
    
    10,032
    
    
    
    10,551Purchases of investments
    
    
    (43,559
    )
    
    
    (6,921
    )Purchases of operating property
    
    
    (2,276
    )
    
    
    (4,903
    )Proceeds from sales of operating property
    
    
    654
    
    
    
    25Consideration paid for acquisitions
    
    
    (14,888
    )
    
    
    NET CASH USED BY INVESTING ACTIVITIES
    
    
    (23,703
    )
    
    
    (10,114
    )FINANCING ACTIVITIESIncrease (decrease) in cash overdraft
    
    
    (10,846
    )
    
    
    7,137Dividends paid
    
    
    (6,419
    )
    
    
    (6,056
    )Proceeds from exercises of stock options
    
    
    1,116
    
    
    
    12,249Excess tax benefit on stock option exercises
    
    
    325
    
    
    
    2,185Borrowings on revolving credit facility
    
    
    15,000
    
    
    
    87,000Purchases of common stock
    
    
    (31,660
    )
    
    
    (28,519
    )Capital contribution from noncontrolling interest
    
    
    1,375
    
    
    
    Principal payments on long-term debt and capital lease obligations
    
    
    (103,674
    )
    
    
    (97,386
    )NET CASH USED BY FINANCING ACTIVITIES
    
    
    (134,783
    )
    
    
    (23,390
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    373
    
    
    
    Increase (decrease) in cash and cash equivalents
    
    
    (29,914
    )
    
    
    16,854Cash and cash equivalents at beginning of period
    
    
    98,904
    
    
    
    60,750Cash and cash equivalents at end of period
    
    $
    68,990
    
    
    $
    77,604
  5




---



##### Table of Contents



Landstar System, Inc. and Subsidiary ShareholdersAccumulatedAdditional
    
    
    
    
    
    Treasury Stock
    
    Other
    
    Non-Common Stock
    
    Paid-In
    
    Retained
    
    at Cost
    
    Comprehensive
    
    controllingShares
    
    Amount
    
    Capital
    
    Earnings
    
    Shares
    
    Amount
    
    Income (Loss)
    
    Interest
    
    TotalBalance December 27, 2008
    
    
    66,109,547
    
    
    $
    661
    
    
    $
    154,533
    
    
    $
    704,331
    
    
    
    14,424,887
    
    
    $
    (605,828
    )
    
    $
    (561
    )
    
    $
    
    
    
    $
    253,136Net income (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,827
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (214
    )
    
    
    51,613Dividends paid ($0.125 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,419
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,419
    )Purchases of common stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    959,704
    
    
    
    (31,660
    )
    
    
    
    
    
    
    
    
    
    
    (31,660
    )Stock-based compensation
    
    
    
    
    
    
    
    
    
    
    3,747
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,747Exercises of stock options and
granted non-vested stock,
including excess tax benefit
    
    
    83,220
    
    
    
    1
    
    
    
    1,440
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,441Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    373
    
    
    
    
    
    
    
    373Capital contribution from
noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,375
    
    
    
    1,375Consideration for acquisition paid
in common stock
    
    
    
    
    
    
    
    
    
    
    (139
    )
    
    
    
    
    
    
    (27,323
    )
    
    
    1,139
    
    
    
    
    
    
    
    
    
    
    
    1,000Unrealized gain on
available-for-sale
investments, net of income
taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    439
    
    
    
    
    
    
    
    439Balance September 26, 2009
    
    
    66,192,767
    
    
    $
    662
    
    
    $
    159,581
    
    
    $
    749,739
    
    
    
    15,357,268
    
    
    $
    (636,349
    )
    
    $
    251
    
    
    $
    1,161
    
    
    $
    275,045
  6




---



##### Table of Contents



7




---



##### Table of Contents



Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 26,
    
    
    Sept. 27,
    
    
    Sept. 26,
    
    
    Sept. 27,2009
    
    
    2008
    
    
    2009
    
    
    2008Total cost of the Plans during the period
    
    $
    3,747
    
    
    $
    4,994
    
    
    $
    1,177
    
    
    $
    1,642Amount of related income tax benefit
recognized during the period
    
    
    923
    
    
    
    1,534
    
    
    
    273
    
    
    
    474Net cost of the Plans during the period
    
    $
    2,824
    
    
    $
    3,460
    
    
    $
    904
    
    
    $
    1,168
  2009
    
    2008Expected volatility
    
    
    38.0
    %
    
    
    33.0
    %Expected dividend yield
    
    
    0.400
    %
    
    
    0.375
    %Risk-free interest rate
    
    
    1.50
    %
    
    
    3.00
    %Expected lives (in years)
    
    
    4.0
    
    
    
    4.1
   Weighted
    
    Weighted AverageAverage
    
    Remaining
    
    AggregateNumber of
    
    Exercise Price
    
    Contractual
    
    IntrinsicOptions
    
    per Share
    
    Term (years)
    
    Value (000s)Options outstanding at December 27, 2008
    
    
    2,505,644
    
    
    $
    35.47Granted
    
    
    362,000
    
    
    $
    38.24Exercised
    
    
    (71,720
    )
    
    $
    15.57Forfeited
    
    
    (105,000
    )
    
    $
    42.76Options outstanding at September 26, 2009
    
    
    2,690,924
    
    
    $
    36.09
    
    
    
    6.7
    
    
    $
    3,289Options exercisable at September 26, 2009
    
    
    1,359,224
    
    
    $
    31.30
    
    
    
    5.2
    
    
    $
    8,172
  8




---



##### Table of Contents



Thirty Nine Weeks Ended
    
    Thirteen Weeks EndedSept. 26,
    
    Sept. 27,
    
    Sept. 26,
    
    Sept. 27,2009
    
    2008
    
    2009
    
    2008Average number
of common shares
outstanding
    
    
    51,325
    
    
    
    52,680
    
    
    
    51,069
    
    
    
    52,586Incremental shares
from assumed
exercises of stock
options
    
    
    182
    
    
    
    462
    
    
    
    176
    
    
    
    442Average number of
common shares and
common share
equivalents
outstanding
    
    
    51,507
    
    
    
    53,142
    
    
    
    51,245
    
    
    
    53,028
    9




---



##### Table of Contents



Thirty Nine Weeks EndedSept. 26, 2009
    
    Sept. 27, 2008Transportation
    
    
    
    
    
    
    
    
    
    TransportationLogistics
    
    Insurance
    
    Total
    
    Logistics
    
    Insurance
    
    TotalExternal revenue
    
    $
    1,433,812
    
    
    $
    27,269
    
    
    $
    1,461,081
    
    
    $
    2,011,766
    
    
    $
    27,466
    
    
    $
    2,039,232Investment income
    
    
    
    
    
    
    954
    
    
    
    954
    
    
    
    
    
    
    
    2,686
    
    
    
    2,686Internal revenue
    
    
    
    
    
    
    21,350
    
    
    
    21,350
    
    
    
    
    
    
    
    21,713
    
    
    
    21,713Operating income
    
    
    62,227
    
    
    
    23,945
    
    
    
    86,172
    
    
    
    118,171
    
    
    
    27,693
    
    
    
    145,864Goodwill
    
    
    57,297
    
    
    
    
    
    
    
    57,297
    
    
    
    31,134
    
    
    
    
    
    
    
    31,134
 Thirteen Weeks EndedSept. 26, 2009
    
    Sept. 27, 2008Transportation
    
    
    
    
    
    
    
    
    
    TransportationLogistics
    
    Insurance
    
    Total
    
    Logistics
    
    Insurance
    
    TotalExternal revenue
    
    $
    491,780
    
    
    $
    8,890
    
    
    $
    500,670
    
    
    $
    723,535
    
    
    $
    9,218
    
    
    $
    732,753Investment income
    
    
    
    
    
    
    279
    
    
    
    279
    
    
    
    
    
    
    
    817
    
    
    
    817Internal revenue
    
    
    
    
    
    
    5,833
    
    
    
    5,833
    
    
    
    
    
    
    
    5,852
    
    
    
    5,852Operating income
    
    
    25,731
    
    
    
    6,947
    
    
    
    32,678
    
    
    
    44,611
    
    
    
    10,079
    
    
    
    54,690
   Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 26,
    
    
    Sept. 27,
    
    
    Sept. 26,
    
    
    Sept. 27,2009
    
    
    2008
    
    
    2009
    
    
    2008Net income attributable to Landstar System, Inc. and
subsidiary
    
    $
    51,827
    
    
    $
    86,325
    
    
    $
    20,076
    
    
    $
    32,817Unrealized gains/(losses) on
available-for-sale investments, net of income taxes
    
    
    439
    
    
    
    (505
    )
    
    
    197
    
    
    
    (368
    )Foreign currency translation gains
    
    
    373
    
    
    
    
    
    
    
    350
    
    
    
    Comprehensive income attributable to Landstar System,
Inc. and subsidiary
    
    $
    52,639
    
    
    $
    85,820
    
    
    $
    20,623
    
    
    $
    32,449
  10




---



##### Table of Contents



Gross
    
    
    Gross
    
    
    FairAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    MarketCost
    
    
    Gains
    
    
    Losses
    
    
    ValueSeptember 26, 2009Corporate bonds and direct obligations of U.S.
government agencies
    
    $
    37,647
    
    
    $
    573
    
    
    $
    246
    
    
    $
    37,974U.S. Treasury obligations
    
    
    12,659
    
    
    
    9
    
    
    
    
    
    
    
    12,668Total
    
    $
    50,306
    
    
    $
    582
    
    
    $
    246
    
    
    $
    50,642December 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
  Less than 12 months
    
    12 months or longer
    
    TotalFair Market
    
    Unrealized
    
    Fair Market
    
    Unrealized
    
    Fair Market
    
    UnrealizedValue
    
    Loss
    
    Value
    
    Loss
    
    Value
    
    LossSeptember 26, 2009Corporate bonds and
direct obligations of
U.S. government agencies
    
    $
    8,380
    
    
    $
    246
    
    
    $
    
    
    
    $
    
    
    
    $
    8,380
    
    
    $
    246December 27, 2008Corporate bonds and
direct obligations of
U.S. government agencies
    
    $
    5,473
    
    
    $
    139
    
    
    $
    2,491
    
    
    $
    460
    
    
    $
    7,964
    
    
    $
    599
      11




---



##### Table of Contents



12




---



##### Table of Contents



Introduction
     Changes in Financial Condition and Results of Operations
  13




---



##### Table of Contents



Thirty Nine Weeks Ended
    
    
    Thirteen Weeks EndedSept. 26,
    
    
    Sept. 27,
    
    
    Sept. 26,
    
    
    Sept. 27,2009
    
    
    2008
    
    
    2009
    
    

    2008Revenue generated through (in thousands):BCO Independent Contractors
    
    $
    840,391
    
    
    $
    1,070,982
    
    
    $
    289,726
    
    
    $
    370,787Truck Brokerage Carriers
    
    
    495,661
    
    
    
    766,262
    
    
    
    166,182
    
    
    
    275,928Rail intermodal
    
    
    57,094
    
    
    
    106,936
    
    
    
    20,366
    
    
    
    35,338Ocean cargo carriers
    
    
    25,459
    
    
    
    29,329
    
    
    
    7,941
    
    
    
    11,109Air cargo carriers
    
    
    10,259
    
    
    
    10,135
    
    
    
    2,751
    
    
    
    2,686Other (1)
    
    
    32,217
    
    
    
    55,588
    
    
    
    13,704
    
    
    
    36,905$
    1,461,081
    
    
    $
    2,039,232
    
    
    $
    500,670
    
    
    $
    732,753Number of loads:BCO Independent Contractors
    
    
    561,840
    
    
    
    638,330
    
    
    
    196,840
    
    
    
    209,250Truck Brokerage Carriers
    
    
    363,000
    
    
    
    435,250
    
    
    
    122,980
    
    
    
    146,280Rail intermodal
    
    
    28,600
    
    
    
    45,610
    
    
    
    10,310
    
    
    
    14,610Ocean cargo carriers
    
    
    3,920
    
    
    
    3,990
    
    
    
    1,330
    
    
    
    1,400Air cargo carriers
    
    
    6,440
    
    
    
    5,520
    
    
    
    1,340
    
    
    
    1,650963,800
    
    
    
    1,128,700
    
    
    
    332,800
    
    
    
    373,190Revenue per load:BCO Independent Contractors
    
    $
    1,496
    
    
    $
    1,678
    
    
    $
    1,472
    
    
    $
    1,772Truck Brokerage Carriers
    
    
    1,365
    
    
    
    1,761
    
    
    
    1,351
    
    
    
    1,886Rail intermodal
    
    
    1,996
    
    
    
    2,345
    
    
    
    1,975
    
    
    
    2,419Ocean cargo carriers
    
    
    6,495
    
    
    
    7,351
    
    
    
    5,971
    
    
    
    7,935Air cargo carriers
    
    
    1,593
    
    
    
    1,836
    
    
    
    2,053
    
    
    
    1,628
 
 (1)
    
    Includes premium revenue generated by the insurance segment and warehousing and
transportation management fees generated by the transportation logistics segment. Also,
included in the 2008 thirty-nine-week and thirteen-week periods was $27,638 of revenue for
bus capacity provided for evacuation assistance related to the storms that impacted the
Gulf Coast in the third quarter of 2008 (the Bus Revenue).  14




---



##### Table of Contents



Sept. 26,
    
    
    Sept. 27,2009
    
    
    2008BCO Independent Contractors
    
    
    8,070
    
    
    
    8,363Truck Brokerage Carriers:Approved and active (1)
    
    
    14,541
    
    
    
    16,400Other approved
    
    
    10,576
    
    
    
    9,12025,117
    
    
    
    25,520Total available truck capacity providers
    
    
    33,187
    
    
    
    33,883Number of trucks provided by BCO Independent Contractors
    
    
    8,655
    
    
    
    8,949
 
 (1)
    
    Active refers to Truck Brokerage Carriers who moved at least one load in
the 180 days immediately preceding the fiscal quarter end.        15




---



##### Table of Contents



Thirty Nine Weeks Ended
    
    Thirteen Weeks EndedSept. 26,
    
    Sept. 27,
    
    Sept. 26,
    
    Sept. 27,2009
    
    2008
    
    2009
    
    2008Revenue
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %Investment income
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1Costs and expenses:Purchased transportation
    
    
    74.6
    
    
    
    77.1
    
    
    
    74.4
    
    
    
    77.8Commissions to agents
    
    
    8.1
    
    
    
    7.5
    
    
    
    7.9
    
    
    
    7.4Other operating costs
    
    
    1.5
    
    
    
    1.0
    
    
    
    1.4
    
    
    
    0.9Insurance and claims
    
    
    2.0
    
    
    
    1.3
    
    
    
    2.1
    
    
    
    1.1Selling, general and administrative
    
    
    6.8
    
    
    
    5.2
    
    
    
    6.6
    
    
    
    4.7Depreciation and amortization
    
    
    1.2
    
    
    
    0.8
    
    
    
    1.2
    
    
    
    0.7Total costs and expenses
    
    
    94.2
    
    
    
    92.9
    
    
    
    93.6
    
    
    
    92.6Operating income
    
    
    5.9
    
    
    
    7.2
    
    
    
    6.5
    
    
    
    7.5Interest and debt expense
    
    
    0.2
    
    
    
    0.3
    
    
    
    0.2
    
    
    
    0.3Income before income taxes
    
    
    5.7
    
    
    
    6.9
    
    
    
    6.3
    
    
    
    7.2Income taxes
    
    
    2.2
    
    
    
    2.7
    
    
    
    2.3
    
    
    
    2.7Net income
    
    
    3.5
    %
    
    
    4.2
    %
    
    
    4.0
    %
    
    
    4.5
    %
     16




---



##### Table of Contents



17




---



##### Table of Contents



18




---



##### Table of Contents



19




---



##### Table of Contents



20




---



##### Table of Contents



21




---



##### Table of Contents



22




---



##### Table of Contents



Acquired businesses and potential acquisitions.
  
  Purchases of Equity Securities by the Company
  23




---



##### Table of Contents



Total Number of Shares
    
    Maximum Number ofPurchased as Part of
    
    Shares That May YetTotal Number of
    
    Average Price Paid
    
    Publicly Announced
    
    Be Purchased UnderFiscal Period
    
    Shares Purchased
    
    Per Share
    
    Programs
    
    the ProgramsJune 27, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,556,200June 28  July 25, 2009
    
    
    288,940
    
    
    $
    33.99
    
    
    
    288,940
    
    
    
    2,267,260July 26, 2009  August
22, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,267,260August 23, 2009  Sept
26, 2009
    
    
    226,964
    
    
    $
    35.50
    
    
    
    226,964
    
    
    
    2,040,296Total
    
    
    515,904
    
    
    $
    34.66
    
    
    
    515,904
   Dividend Amount
    
    Declaration
    
    Record
    
    Paymentper share
    
    Date
    
    Date
    
    Date$0.040
    
    January 27, 2009
    
    February 6, 2009
    
    February 27, 2009$0.040
    
    April 14, 2009
    
    May 7, 2009
    
    May 29, 2009$0.045
    
    July 15, 2009
    
    August 10, 2009
    
    August 28, 2009
        
   24




---



##### Table of Contents



Exhibit No.
    
    Description(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 2002.31.2 *
    
    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 2002.32.2 **
    
    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.
 
 *
    
    Filed herewith**
    
    Furnished herewith 25




---



##### Table of Contents



LANDSTAR SYSTEM, INC.Date: October 30, 2009
    /s/ Henry H. GerkensHenry H. GerkensPresident and
Chief Executive OfficerDate: October 30, 2009
    /s/ James B. GattoniJames B. GattoniVice President and Chief
Financial Officer 26