Held for Sale Subsidiary

9 Months Ended

Sep. 27, 2025

Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract]

(14)	Held for Sale Subsidiary

During the 2025 third fiscal quarter, the Company entered into an arrangement with a financial advisor to actively market its Mexican subsidiary, Landstar Metro, S.A.P.I. de C.V. (“Landstar Metro”) and to consider other strategic alternatives for this subsidiary, which may involve a sale or other disposition in whole or in part of Landstar Metro during the Company’s 2025 fiscal year. The Company determined that this planned divestiture does not represent a strategic shift that would be expected to have a significant effect on our consolidated results of operations, and therefore the results of Landstar Metro are not reported as discontinued operations. It is not anticipated that a sale or other disposition of Landstar Metro will adversely affect the Company’s ability to provide U.S./Mexico cross-border services, given that Landstar Metro is principally engaged in intra-Mexico truck transportation services.

In connection with the decision to actively market Landstar Metro, management identified a triggering event to perform a quantitative goodwill impairment test. As part of its analysis, the Company used a combination of the discounted cash flow method and the market approach. Based on the quantitative assessment, the Company concluded that Landstar Metro’s goodwill was impaired and recorded a

non-cash

impairment charge of $7,530,000 to goodwill within the transportation logistics segment. Further, based on the expected fair value of Landstar Metro, net of costs to sell, the Company recognized an impairment on assets held for sale of $8,612,000. Both impairments are included in impairment of intangible and other assets within the Company’s consolidated statements of income. No assurances can be provided that there will not be additional charges and expenses incurred by the Company in connection with this sale process or upon any ultimate disposition of Landstar Metro.

As of September 27, 2025, the assets and liabilities of Landstar Metro are presented as held for sale at carrying value. A summary of assets and liabilities associated with Landstar Metro that are held for sale, is presented below (in thousands):


	As of September 27, 2025
Assets held for sale:
Cash and cash equivalents	$	798
Trade and other receivables		9,362
Operating property		7,601
Other assets		4,707
Less: valuation allowance		(8,612	)

Total assets held for sale (1)	$	13,856

Liabilities held for sale:
Accounts payable	$	2,132
Deferred income taxes and other liabilities		2,115

Total liabilities held for sale (1)	$	4,247

Cumulative translation loss of foreign entities held for sale (2)	$	1,205

(1)	Assets and liabilities held for sale are separately presented on the consolidated balance sheets.

(2)	Cumulative translation loss of foreign entities held for sale is included within accumulated other comprehensive loss on the consolidated balance sheets.