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Commitments and Contingencies | 9 Months Ended
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Sep. 27, 2025
Commitments and Contingencies |
(11) | Commitments and Contingencies
Short-term investments include $ 59,227,000 in current maturities of investments held by the Company’s insurance segment at September 27, 2025. The non-current portion of the bond portfolio of $ 86,139,000 is included in other assets. The short-term investments, together with $ 24,474,000 of non-current investments, provide collateral for the $ 75,331,000 of letters of credit issued to guarantee payment of insurance claims. As of September 27, 2025, Landstar also had $ 34,916,000 of additional letters of credit outstanding under the Company’s Credit Agreement. As previously disclosed by the Company in its Quarterly Report on Form 10-Q for the 2025 second quarter and in a Current Report on Form 8-K filed on August 13, 2025, a trial verdict (the “Verdict”) was rendered on August 6, 2025 in state court in El Paso County, Texas, in the matter of Eduardo Cabral, et. al. v. Landstar Ranger, Inc., et. al. (the “Cabral Matter”). The Verdict included a determination by the jury that Landstar Ranger acted as a broker and not as a motor carrier with respect to the transportation of the shipment involved in a tragic, catastrophic accident. The Verdict also determined that 15% of the total monetary damages were attributed to Landstar Ranger, or $3.42 million, of the $22.8 million total monetary damages, with the remainder of the total monetary damages being attributed to the hauling motor carrier, MyUniverse, and the MyUniverse truck driver. Based on knowledge of the facts, available insurance coverage and the analysis of the Company’s outside counsel, an immaterial accrual was included in insurance claims in the Company’s consolidated balance sheet as of September 27, 2025, with respect to the Cabral Matter. The plaintiffs, as well as Landstar Ranger, have filed post-trial motions and may attempt to appeal the Verdict. No assurances can be provided as to the probability of success with respect to any post-trial motions or appeals relating to the Verdict or the ultimate outcome of any such motions or appeals. The total cost associated with this matter, which may include post-judgment interest, bonding-related costs and legal and other professional fees, will depend on many factors and the ultimate financial impact, as well as the timing of the ultimate resolution of this matter, are difficult to predict. The Company is involved in certain other claims and pending litigation arising from the normal conduct of business. Many of these claims are covered in whole or in part by insurance. Based on knowledge of the facts and, in certain cases, opinions of outside counsel, management believes that adequate provisions have been made for probable losses with respect to the resolution of all such claims and pending litigation and that the ultimate outcome, after provisions therefor, will not have a material adverse effect on the financial condition of the Company, but could have a material effect on the results of operations in a given quarter or year.

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