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Segment Information | 12 Months Ended
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Dec. 28, 2019
Segment Information | (13) Segment Information Landstar markets its integrated transportation management solutions primarily through independent commission sales agents and exclusively utilizes third party capacity providers to transport customers’ freight. Landstar’s independent commission sales agents enter into contractual arrangements with the Company and are responsible for locating freight, making that freight available to Landstar’s capacity providers and coordinating the transportation of the freight with customers and capacity providers. The Company’s third party capacity providers consist of independent contractors who provide truck capacity to the Company under exclusive lease arrangements (the “BCO Independent Contractors”), unrelated trucking companies who provide truck capacity to the Company under non-exclusive contractual arrangements (the “Truck Brokerage Carriers”), air cargo carriers, ocean cargo carriers and railroads. Through this network of agents and capacity providers linked together by Landstar’s information technology systems, Landstar operates an integrated transportation management solutions business primarily throughout North America with revenue of $4.1 billion during the most recently completed fiscal year. The Company reports the results of two operating segments: the transportation logistics segment and the insurance segment. The transportation logistics segment provides a wide range of integrated transportation management solutions. Transportation services offered by the Company include truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo and customs brokerage. Examples of the industries serviced by the transportation logistics segment include automotive products, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics and military equipment. In addition, the transportation logistics segment provides transportation services to other transportation companies, including third party logistics and less-than-truckload service providers. Each of the independent commission sales agents has the opportunity to market all of the services provided by the transportation logistics segment. Billings for freight transportation services are typically charged to customers on a per shipment basis for the physical transportation of freight and are referred to as transportation revenue. The results of operations from Landstar Metro and Landstar Servicios are presented as part of the Company’s transportation logistics segment. The insurance segment is comprised of Signature Insurance Company (“Signature”), a wholly owned offshore insurance subsidiary, and Risk Management Claim Services, Inc. The insurance segment provides risk and claims management services to certain of Landstar’s operating subsidiaries. In addition, it reinsures certain risks of the Company’s BCO Independent Contractors and provides certain property and casualty insurance directly to certain of Landstar’s operating subsidiaries. Revenue at the insurance segment represents reinsurance premiums from third party insurance companies that provide insurance programs to BCO Independent Contractors where all or a portion of the risk is ultimately borne by Signature. Internal revenue for premiums billed by the insurance segment to the transportation logistics segment is calculated each fiscal period based primarily on an actuarial calculation of historical loss experience and is believed to approximate the cost that would have been incurred by the transportation logistics segment had similar insurance been obtained from an unrelated third party. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates a segment’s performance based on operating income. No single customer accounted for more than 10% of the Company’s consolidated revenue in fiscal years 2019, 2018 and 2017. Substantially all of the Company’s revenue is generated in North America, primarily through customers located in the United States. The following tables summarize information about the Company’s reportable business segments as of and for the fiscal years ending December 28, 2019, December 29, 2018 and December 30, 2017 (in thousands):
|  | Transportation Logistics |  |  | Insurance |  |  | Total |
2019 |  |  |  |  |  |  |  |  |  |  |  |
External revenue |  | $ | 4,028,336 |  |  | $ | 56,241 |  |  | $ | 4,084,577 |
Internal revenue |  |  |  |  |  |  | 46,587 |  |  |  | 46,587 |
Investment income |  |  |  |  |  |  | 5,041 |  |  |  | 5,041 |
Interest and debt expense |  |  | 3,141 |  |  |  |  |  |  |  | 3,141 |
Depreciation and amortization |  |  | 44,468 |  |  |  |  |  |  |  | 44,468 |
Operating income |  |  | 258,742 |  |  |  | 40,162 |  |  |  | 298,904 |
Expenditures on long-lived assets |  |  | 19,416 |  |  |  |  |  |  |  | 19,416 |
Goodwill |  |  | 38,508 |  |  |  |  |  |  |  | 38,508 |
Finance lease additions |  |  | 29,054 |  |  |  |  |  |  |  | 29,054 |
Total assets |  |  | 1,168,944 |  |  |  | 258,767 |  |  |  | 1,427,711 |
2018 |  |  |  |  |  |  |  |  |  |  |  |
External revenue |  | $ | 4,562,796 |  |  | $ | 52,348 |  |  | $ | 4,615,144 |
Internal revenue |  |  |  |  |  |  | 37,872 |  |  |  | 37,872 |
Investment income |  |  |  |  |  |  | 3,816 |  |  |  | 3,816 |
Interest and debt expense |  |  | 3,354 |  |  |  |  |  |  |  | 3,354 |
Depreciation and amortization |  |  | 43,570 |  |  |  |  |  |  |  | 43,570 |
Operating income |  |  | 303,426 |  |  |  | 28,309 |  |  |  | 331,735 |
Expenditures on long-lived assets |  |  | 9,747 |  |  |  |  |  |  |  | 9,747 |
Goodwill |  |  | 38,232 |  |  |  |  |  |  |  | 38,232 |
Finance lease additions |  |  | 46,595 |  |  |  |  |  |  |  | 46,595 |
Total assets |  |  | 1,175,040 |  |  |  | 205,524 |  |  |  | 1,380,564 |
2017 |  |  |  |  |  |  |  |  |  |  |  |
External revenue |  | $ | 3,599,382 |  |  | $ | 46,982 |  |  | $ | 3,646,364 |
Internal revenue |  |  |  |  |  |  | 37,110 |  |  |  | 37,110 |
Investment income |  |  |  |  |  |  | 2,498 |  |  |  | 2,498 |
Interest and debt expense |  |  | 3,166 |  |  |  |  |  |  |  | 3,166 |
Depreciation and amortization |  |  | 40,560 |  |  |  |  |  |  |  | 40,560 |
Operating income |  |  | 209,615 |  |  |  | 34,353 |  |  |  | 243,968 |
Expenditures on long-lived assets |  |  | 15,586 |  |  |  |  |  |  |  | 15,586 |
Goodwill |  |  | 39,065 |  |  |  |  |  |  |  | 39,065 |
Finance lease additions |  |  | 33,560 |  |  |  |  |  |  |  | 33,560 |
Total assets |  |  | 1,132,766 |  |  |  | 219,694 |  |  |  | 1,352,460 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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