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These excerpts taken from the LSTR 10-K filed Feb 25, 2009. Description
of Business
Landstar is a non-asset based transportation and logistics
services company, providing transportation capacity and related
transportation services to shippers throughout the United
States, and to a lesser extent, in Canada, and between the
United States and Canada, Mexico and other countries. These
business services emphasize safety, information coordination and
customer service and are delivered through a network of
independent commission sales agents and third party capacity
providers linked together by a series of technological
applications which are provided and coordinated by the Company.
The Company markets its services primarily through independent
commission sales agents who enter into contractual arrangements
with Landstar 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, railroads and independent warehouse capacity providers
(“Warehouse Capacity Owners” or “WCOs”). The
Company has contracts with all of the Class 1 domestic
railroads and certain Canadian railroads and contracts with
domestic and international airlines and ocean lines. Through
this network of agents and capacity providers, Landstar operates
a transportation and logistics services business primarily
throughout North America with revenue of approximately
$2.6 billion during the most recently completed fiscal year.
Historically, the Company reported the results of three
operating segments: the carrier segment, the global logistics
segment and the insurance segment. Beginning in the
thirteen-week period ended March 29, 2008, the
Table of Contents
Company revised the presentation format of its segment
disclosure to consolidate the previously reported three segments
to two segments: the transportation logistics segment and the
insurance segment. This change in segment reporting reflected
increased centralization and consolidation of certain
administrative and sales functions across all of the
Company’s Operating Subsidiaries and the increased
similarity of the services provided by the operations of the
Company’s various Operating Subsidiaries, primarily with
respect to truck brokerage services. As a result of this change
in presentation, the revenue and operating results formerly
separated into the carrier and global logistics segments,
together with corporate overhead, which was previously included
as “other” in the segment information, were
consolidated into the transportation logistics segment. This
change in segment reporting had no impact on the Company’s
consolidated balance sheets, statements of income, statements of
cash flows or statements of changes in shareholders’ equity
for any periods. This change in reporting also had no impact on
reporting with respect to the insurance segment.
Transportation
Logistics Segment
The transportation logistics segment provides a wide range of
transportation and logistics services including truckload
transportation, rail intermodal, air cargo and ocean cargo
services, the arrangement of multimodal (ground, air, ocean and
rail) moves and warehousing to a variety of industries including
automotive products, paper, lumber and building products,
metals, chemicals, foodstuffs, heavy machinery, retail,
electronics, ammunition and explosives and military hardware. In
addition, the transportation logistics segment provides
transportation services to other transportation companies,
including logistics and less-than-truckload service providers.
The transportation logistics segment also provides dedicated
contract and logistics solutions, including freight optimization
and less-than-truckload freight consolidations, expedited ground
and air delivery of time-critical freight and the movement of
containers via ocean. Each of the independent commission sales
agents has the opportunity to market all of the services
provided by the transportation logistics segment.
Truck Services. The transportation logistics
segment’s truck services include a full array of truckload
transportation for a wide range of general commodities, much of
which are over irregular or non-repetitive routes, utilizing a
wide range of specialized equipment, including dry and specialty
vans of various sizes, unsided trailers (including flatbeds,
drop decks and light specialty trailers), temperature-controlled
vans and containers. Available truckload services also include
short-to-long haul movement of containers by truck and expedited
ground and dedicated power-only truck capacity. The Company also
offers less-than-truckload services. During fiscal year 2008,
revenue hauled by BCO Independent Contractors and Truck
Brokerage Carriers was 58% and 42%, respectively, of total truck
services revenue. The Company’s truck services contributed
90% of total revenue in fiscal year 2008.
Rail Intermodal Services. The transportation
logistics segment has contracts with all of the Class 1
railroads in North America and all major asset-based intermodal
equipment providers, including agreements with stacktrain
operators and various container and trailing equipment
providers. In addition, the Company has contracts with a vast
network of local trucking companies that handle
pick-up and
delivery of rail freight. These contracts provide Landstar the
ability to transport freight via rail throughout the United
States, Canada and Mexico. Landstar’s rail intermodal
services include trailer on flat car, container on flat car, box
car and railcar service capabilities. The Company’s rail
intermodal services contributed 5% of total revenue in fiscal
year 2008.
Air and Ocean Services. The transportation
logistics segment provides domestic and international air and
ocean services to its customers utilizing airlines and ocean
lines. Landstar executes international air freight
transportation as an indirect air carrier (“IAC”)
registered with the U.S. Department of Transportation (the
“DOT”) and as an endorsed cargo network services
(“CNS”) agent accredited by the International Air
Transport Association (“IATA”). Landstar provides
international ocean freight transportation solutions as a
Federal Maritime Commission (“FMC”) licensed
non-vessel operating common carrier (“NVOCC”) and
ocean freight forwarder (“OFF”). Through its network
of independent commission sales agents and relationships within
a global network of foreign freight forwarders, Landstar
provides efficient and cost effective
door-to-door
transportation to most points in the world for a vast array of
cargo types such as over-sized
Table of Contents
break-bulk, consolidations, full container loads and
refrigerated cargo. The Company’s air and ocean services
contributed 2% of total revenue in fiscal year 2008.
Warehousing Services. The transportation
logistics segment offers its customers, through its independent
commission sales agent network, national warehousing services
without owning or leasing facilities or hiring employees to work
at warehouses. The Company’s warehouse offering is designed
to provide the availability of warehouse capacity nationally to
its customers utilizing a network of independently owned and
operated regional warehouse facilities linked by a single
warehouse information technology application.
Other Services. During the fiscal year ended
December 27, 2008, revenue for passenger bus capacity
provided for evacuation assistance related to the storms that
impacted the Gulf Coast in September 2008 (“Bus
Revenue”) represented 1% of the Company’s
transportation logistics segment revenue.
Insurance
Segment
The insurance segment is comprised of Signature, a wholly owned
offshore insurance subsidiary, and RMCS. This segment provides
risk and claims management services to 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 Landstar’s
Operating Subsidiaries. Revenue, representing premiums on
reinsurance programs provided to the Company’s BCO
Independent Contractors, at the insurance segment represented
approximately 1% of the Company’s total 2008 revenue.
Description
of Business
Landstar is a non-asset based transportation and logistics
services company, providing transportation capacity and related
transportation services to shippers throughout the United
States, and to a lesser extent, in Canada, and between the
United States and Canada, Mexico and other countries. These
business services emphasize safety, information coordination and
customer service and are delivered through a network of
independent commission sales agents and third party capacity
providers linked together by a series of technological
applications which are provided and coordinated by the Company.
The Company markets its services primarily through independent
commission sales agents who enter into contractual arrangements
with Landstar 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, railroads and independent warehouse capacity providers
(“Warehouse Capacity Owners” or “WCOs”). The
Company has contracts with all of the Class 1 domestic
railroads and certain Canadian railroads and contracts with
domestic and international airlines and ocean lines. Through
this network of agents and capacity providers, Landstar operates
a transportation and logistics services business primarily
throughout North America with revenue of approximately
$2.6 billion during the most recently completed fiscal year.
Historically, the Company reported the results of three
operating segments: the carrier segment, the global logistics
segment and the insurance segment. Beginning in the
thirteen-week period ended March 29, 2008, the
Table of Contents
Company revised the presentation format of its segment
disclosure to consolidate the previously reported three segments
to two segments: the transportation logistics segment and the
insurance segment. This change in segment reporting reflected
increased centralization and consolidation of certain
administrative and sales functions across all of the
Company’s Operating Subsidiaries and the increased
similarity of the services provided by the operations of the
Company’s various Operating Subsidiaries, primarily with
respect to truck brokerage services. As a result of this change
in presentation, the revenue and operating results formerly
separated into the carrier and global logistics segments,
together with corporate overhead, which was previously included
as “other” in the segment information, were
consolidated into the transportation logistics segment. This
change in segment reporting had no impact on the Company’s
consolidated balance sheets, statements of income, statements of
cash flows or statements of changes in shareholders’ equity
for any periods. This change in reporting also had no impact on
reporting with respect to the insurance segment.
Transportation
Logistics Segment
The transportation logistics segment provides a wide range of
transportation and logistics services including truckload
transportation, rail intermodal, air cargo and ocean cargo
services, the arrangement of multimodal (ground, air, ocean and
rail) moves and warehousing to a variety of industries including
automotive products, paper, lumber and building products,
metals, chemicals, foodstuffs, heavy machinery, retail,
electronics, ammunition and explosives and military hardware. In
addition, the transportation logistics segment provides
transportation services to other transportation companies,
including logistics and less-than-truckload service providers.
The transportation logistics segment also provides dedicated
contract and logistics solutions, including freight optimization
and less-than-truckload freight consolidations, expedited ground
and air delivery of time-critical freight and the movement of
containers via ocean. Each of the independent commission sales
agents has the opportunity to market all of the services
provided by the transportation logistics segment.
Truck Services. The transportation logistics
segment’s truck services include a full array of truckload
transportation for a wide range of general commodities, much of
which are over irregular or non-repetitive routes, utilizing a
wide range of specialized equipment, including dry and specialty
vans of various sizes, unsided trailers (including flatbeds,
drop decks and light specialty trailers), temperature-controlled
vans and containers. Available truckload services also include
short-to-long haul movement of containers by truck and expedited
ground and dedicated power-only truck capacity. The Company also
offers less-than-truckload services. During fiscal year 2008,
revenue hauled by BCO Independent Contractors and Truck
Brokerage Carriers was 58% and 42%, respectively, of total truck
services revenue. The Company’s truck services contributed
90% of total revenue in fiscal year 2008.
Rail Intermodal Services. The transportation
logistics segment has contracts with all of the Class 1
railroads in North America and all major asset-based intermodal
equipment providers, including agreements with stacktrain
operators and various container and trailing equipment
providers. In addition, the Company has contracts with a vast
network of local trucking companies that handle
pick-up and
delivery of rail freight. These contracts provide Landstar the
ability to transport freight via rail throughout the United
States, Canada and Mexico. Landstar’s rail intermodal
services include trailer on flat car, container on flat car, box
car and railcar service capabilities. The Company’s rail
intermodal services contributed 5% of total revenue in fiscal
year 2008.
Air and Ocean Services. The transportation
logistics segment provides domestic and international air and
ocean services to its customers utilizing airlines and ocean
lines. Landstar executes international air freight
transportation as an indirect air carrier (“IAC”)
registered with the U.S. Department of Transportation (the
“DOT”) and as an endorsed cargo network services
(“CNS”) agent accredited by the International Air
Transport Association (“IATA”). Landstar provides
international ocean freight transportation solutions as a
Federal Maritime Commission (“FMC”) licensed
non-vessel operating common carrier (“NVOCC”) and
ocean freight forwarder (“OFF”). Through its network
of independent commission sales agents and relationships within
a global network of foreign freight forwarders, Landstar
provides efficient and cost effective
door-to-door
transportation to most points in the world for a vast array of
cargo types such as over-sized
Table of Contents
break-bulk, consolidations, full container loads and
refrigerated cargo. The Company’s air and ocean services
contributed 2% of total revenue in fiscal year 2008.
Warehousing Services. The transportation
logistics segment offers its customers, through its independent
commission sales agent network, national warehousing services
without owning or leasing facilities or hiring employees to work
at warehouses. The Company’s warehouse offering is designed
to provide the availability of warehouse capacity nationally to
its customers utilizing a network of independently owned and
operated regional warehouse facilities linked by a single
warehouse information technology application.
Other Services. During the fiscal year ended
December 27, 2008, revenue for passenger bus capacity
provided for evacuation assistance related to the storms that
impacted the Gulf Coast in September 2008 (“Bus
Revenue”) represented 1% of the Company’s
transportation logistics segment revenue.
Insurance
Segment
The insurance segment is comprised of Signature, a wholly owned
offshore insurance subsidiary, and RMCS. This segment provides
risk and claims management services to 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 Landstar’s
Operating Subsidiaries. Revenue, representing premiums on
reinsurance programs provided to the Company’s BCO
Independent Contractors, at the insurance segment represented
approximately 1% of the Company’s total 2008 revenue.
Description
of Business
Landstar is a non-asset based transportation and logistics
services company, providing transportation capacity and related
transportation services to shippers throughout the United
States, and to a lesser extent, in Canada, and between the
United States and Canada, Mexico and other countries. These
business services emphasize safety, information coordination and
customer service and are delivered through a network of
independent commission sales agents and third party capacity
providers linked together by a series of technological
applications which are provided and coordinated by the Company.
The Company markets its services primarily through independent
commission sales agents who enter into contractual arrangements
with Landstar 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, railroads and independent warehouse capacity providers
(“Warehouse Capacity Owners” or “WCOs”). The
Company has contracts with all of the Class 1 domestic
railroads and certain Canadian railroads and contracts with
domestic and international airlines and ocean lines. Through
this network of agents and capacity providers, Landstar operates
a transportation and logistics services business primarily
throughout North America with revenue of approximately
$2.6 billion during the most recently completed fiscal year.
Historically, the Company reported the results of three
operating segments: the carrier segment, the global logistics
segment and the insurance segment. Beginning in the
thirteen-week period ended March 29, 2008, the
Table of Contents
Company revised the presentation format of its segment
disclosure to consolidate the previously reported three segments
to two segments: the transportation logistics segment and the
insurance segment. This change in segment reporting reflected
increased centralization and consolidation of certain
administrative and sales functions across all of the
Company’s Operating Subsidiaries and the increased
similarity of the services provided by the operations of the
Company’s various Operating Subsidiaries, primarily with
respect to truck brokerage services. As a result of this change
in presentation, the revenue and operating results formerly
separated into the carrier and global logistics segments,
together with corporate overhead, which was previously included
as “other” in the segment information, were
consolidated into the transportation logistics segment. This
change in segment reporting had no impact on the Company’s
consolidated balance sheets, statements of income, statements of
cash flows or statements of changes in shareholders’ equity
for any periods. This change in reporting also had no impact on
reporting with respect to the insurance segment.
Transportation
Logistics Segment
The transportation logistics segment provides a wide range of
transportation and logistics services including truckload
transportation, rail intermodal, air cargo and ocean cargo
services, the arrangement of multimodal (ground, air, ocean and
rail) moves and warehousing to a variety of industries including
automotive products, paper, lumber and building products,
metals, chemicals, foodstuffs, heavy machinery, retail,
electronics, ammunition and explosives and military hardware. In
addition, the transportation logistics segment provides
transportation services to other transportation companies,
including logistics and less-than-truckload service providers.
The transportation logistics segment also provides dedicated
contract and logistics solutions, including freight optimization
and less-than-truckload freight consolidations, expedited ground
and air delivery of time-critical freight and the movement of
containers via ocean. Each of the independent commission sales
agents has the opportunity to market all of the services
provided by the transportation logistics segment.
Truck Services. The transportation logistics
segment’s truck services include a full array of truckload
transportation for a wide range of general commodities, much of
which are over irregular or non-repetitive routes, utilizing a
wide range of specialized equipment, including dry and specialty
vans of various sizes, unsided trailers (including flatbeds,
drop decks and light specialty trailers), temperature-controlled
vans and containers. Available truckload services also include
short-to-long haul movement of containers by truck and expedited
ground and dedicated power-only truck capacity. The Company also
offers less-than-truckload services. During fiscal year 2008,
revenue hauled by BCO Independent Contractors and Truck
Brokerage Carriers was 58% and 42%, respectively, of total truck
services revenue. The Company’s truck services contributed
90% of total revenue in fiscal year 2008.
Rail Intermodal Services. The transportation
logistics segment has contracts with all of the Class 1
railroads in North America and all major asset-based intermodal
equipment providers, including agreements with stacktrain
operators and various container and trailing equipment
providers. In addition, the Company has contracts with a vast
network of local trucking companies that handle
pick-up and
delivery of rail freight. These contracts provide Landstar the
ability to transport freight via rail throughout the United
States, Canada and Mexico. Landstar’s rail intermodal
services include trailer on flat car, container on flat car, box
car and railcar service capabilities. The Company’s rail
intermodal services contributed 5% of total revenue in fiscal
year 2008.
Air and Ocean Services. The transportation
logistics segment provides domestic and international air and
ocean services to its customers utilizing airlines and ocean
lines. Landstar executes international air freight
transportation as an indirect air carrier (“IAC”)
registered with the U.S. Department of Transportation (the
“DOT”) and as an endorsed cargo network services
(“CNS”) agent accredited by the International Air
Transport Association (“IATA”). Landstar provides
international ocean freight transportation solutions as a
Federal Maritime Commission (“FMC”) licensed
non-vessel operating common carrier (“NVOCC”) and
ocean freight forwarder (“OFF”). Through its network
of independent commission sales agents and relationships within
a global network of foreign freight forwarders, Landstar
provides efficient and cost effective
door-to-door
transportation to most points in the world for a vast array of
cargo types such as over-sized
Table of Contents
break-bulk, consolidations, full container loads and
refrigerated cargo. The Company’s air and ocean services
contributed 2% of total revenue in fiscal year 2008.
Warehousing Services. The transportation
logistics segment offers its customers, through its independent
commission sales agent network, national warehousing services
without owning or leasing facilities or hiring employees to work
at warehouses. The Company’s warehouse offering is designed
to provide the availability of warehouse capacity nationally to
its customers utilizing a network of independently owned and
operated regional warehouse facilities linked by a single
warehouse information technology application.
Other Services. During the fiscal year ended
December 27, 2008, revenue for passenger bus capacity
provided for evacuation assistance related to the storms that
impacted the Gulf Coast in September 2008 (“Bus
Revenue”) represented 1% of the Company’s
transportation logistics segment revenue.
Insurance
Segment
The insurance segment is comprised of Signature, a wholly owned
offshore insurance subsidiary, and RMCS. This segment provides
risk and claims management services to 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 Landstar’s
Operating Subsidiaries. Revenue, representing premiums on
reinsurance programs provided to the Company’s BCO
Independent Contractors, at the insurance segment represented
approximately 1% of the Company’s total 2008 revenue.
Description
of Business
Landstar is a non-asset based transportation and logistics
services company, providing transportation capacity and related
transportation services to shippers throughout the United
States, and to a lesser extent, in Canada, and between the
United States and Canada, Mexico and other countries. These
business services emphasize safety, information coordination and
customer service and are delivered through a network of
independent commission sales agents and third party capacity
providers linked together by a series of technological
applications which are provided and coordinated by the Company.
The Company markets its services primarily through independent
commission sales agents who enter into contractual arrangements
with Landstar 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, railroads and independent warehouse capacity providers
(“Warehouse Capacity Owners” or “WCOs”). The
Company has contracts with all of the Class 1 domestic
railroads and certain Canadian railroads and contracts with
domestic and international airlines and ocean lines. Through
this network of agents and capacity providers, Landstar operates
a transportation and logistics services business primarily
throughout North America with revenue of approximately
$2.6 billion during the most recently completed fiscal year.
Historically, the Company reported the results of three
operating segments: the carrier segment, the global logistics
segment and the insurance segment. Beginning in the
thirteen-week period ended March 29, 2008, the
Table of Contents
Company revised the presentation format of its segment
disclosure to consolidate the previously reported three segments
to two segments: the transportation logistics segment and the
insurance segment. This change in segment reporting reflected
increased centralization and consolidation of certain
administrative and sales functions across all of the
Company’s Operating Subsidiaries and the increased
similarity of the services provided by the operations of the
Company’s various Operating Subsidiaries, primarily with
respect to truck brokerage services. As a result of this change
in presentation, the revenue and operating results formerly
separated into the carrier and global logistics segments,
together with corporate overhead, which was previously included
as “other” in the segment information, were
consolidated into the transportation logistics segment. This
change in segment reporting had no impact on the Company’s
consolidated balance sheets, statements of income, statements of
cash flows or statements of changes in shareholders’ equity
for any periods. This change in reporting also had no impact on
reporting with respect to the insurance segment.
Transportation
Logistics Segment
The transportation logistics segment provides a wide range of
transportation and logistics services including truckload
transportation, rail intermodal, air cargo and ocean cargo
services, the arrangement of multimodal (ground, air, ocean and
rail) moves and warehousing to a variety of industries including
automotive products, paper, lumber and building products,
metals, chemicals, foodstuffs, heavy machinery, retail,
electronics, ammunition and explosives and military hardware. In
addition, the transportation logistics segment provides
transportation services to other transportation companies,
including logistics and less-than-truckload service providers.
The transportation logistics segment also provides dedicated
contract and logistics solutions, including freight optimization
and less-than-truckload freight consolidations, expedited ground
and air delivery of time-critical freight and the movement of
containers via ocean. Each of the independent commission sales
agents has the opportunity to market all of the services
provided by the transportation logistics segment.
Truck Services. The transportation logistics
segment’s truck services include a full array of truckload
transportation for a wide range of general commodities, much of
which are over irregular or non-repetitive routes, utilizing a
wide range of specialized equipment, including dry and specialty
vans of various sizes, unsided trailers (including flatbeds,
drop decks and light specialty trailers), temperature-controlled
vans and containers. Available truckload services also include
short-to-long haul movement of containers by truck and expedited
ground and dedicated power-only truck capacity. The Company also
offers less-than-truckload services. During fiscal year 2008,
revenue hauled by BCO Independent Contractors and Truck
Brokerage Carriers was 58% and 42%, respectively, of total truck
services revenue. The Company’s truck services contributed
90% of total revenue in fiscal year 2008.
Rail Intermodal Services. The transportation
logistics segment has contracts with all of the Class 1
railroads in North America and all major asset-based intermodal
equipment providers, including agreements with stacktrain
operators and various container and trailing equipment
providers. In addition, the Company has contracts with a vast
network of local trucking companies that handle
pick-up and
delivery of rail freight. These contracts provide Landstar the
ability to transport freight via rail throughout the United
States, Canada and Mexico. Landstar’s rail intermodal
services include trailer on flat car, container on flat car, box
car and railcar service capabilities. The Company’s rail
intermodal services contributed 5% of total revenue in fiscal
year 2008.
Air and Ocean Services. The transportation
logistics segment provides domestic and international air and
ocean services to its customers utilizing airlines and ocean
lines. Landstar executes international air freight
transportation as an indirect air carrier (“IAC”)
registered with the U.S. Department of Transportation (the
“DOT”) and as an endorsed cargo network services
(“CNS”) agent accredited by the International Air
Transport Association (“IATA”). Landstar provides
international ocean freight transportation solutions as a
Federal Maritime Commission (“FMC”) licensed
non-vessel operating common carrier (“NVOCC”) and
ocean freight forwarder (“OFF”). Through its network
of independent commission sales agents and relationships within
a global network of foreign freight forwarders, Landstar
provides efficient and cost effective
door-to-door
transportation to most points in the world for a vast array of
cargo types such as over-sized
Table of Contents
break-bulk, consolidations, full container loads and
refrigerated cargo. The Company’s air and ocean services
contributed 2% of total revenue in fiscal year 2008.
Warehousing Services. The transportation
logistics segment offers its customers, through its independent
commission sales agent network, national warehousing services
without owning or leasing facilities or hiring employees to work
at warehouses. The Company’s warehouse offering is designed
to provide the availability of warehouse capacity nationally to
its customers utilizing a network of independently owned and
operated regional warehouse facilities linked by a single
warehouse information technology application.
Other Services. During the fiscal year ended
December 27, 2008, revenue for passenger bus capacity
provided for evacuation assistance related to the storms that
impacted the Gulf Coast in September 2008 (“Bus
Revenue”) represented 1% of the Company’s
transportation logistics segment revenue.
Insurance
Segment
The insurance segment is comprised of Signature, a wholly owned
offshore insurance subsidiary, and RMCS. This segment provides
risk and claims management services to 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 Landstar’s
Operating Subsidiaries. Revenue, representing premiums on
reinsurance programs provided to the Company’s BCO
Independent Contractors, at the insurance segment represented
approximately 1% of the Company’s total 2008 revenue.
Description of Business Landstar is a non-asset based transportation and logistics services company, providing transportation capacity and related transportation services to shippers throughout the United States, and to a lesser extent, in Canada, and between the United States and Canada, Mexico and other countries. These business services emphasize safety, information coordination and customer service and are delivered through a network of independent commission sales agents and third party capacity providers linked together by a series of technological applications which are provided and coordinated by the Company. The Company markets its services primarily through independent commission sales agents who enter into contractual arrangements with Landstar 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, railroads and independent warehouse capacity providers (“Warehouse Capacity Owners” or “WCOs”). The Company has contracts with all of the Class 1 domestic railroads and certain Canadian railroads and contracts with domestic and international airlines and ocean lines. Through this network of agents and capacity providers, Landstar operates a transportation and logistics services business primarily throughout North America with revenue of approximately $2.6 billion during the most recently completed fiscal year. Historically, the Company reported the results of three operating segments: the carrier segment, the global logistics segment and the insurance segment. Beginning in the thirteen-week period ended March 29, 2008, the
Table of ContentsCompany revised the presentation format of its segment disclosure to consolidate the previously reported three segments to two segments: the transportation logistics segment and the insurance segment. This change in segment reporting reflected increased centralization and consolidation of certain administrative and sales functions across all of the Company’s Operating Subsidiaries and the increased similarity of the services provided by the operations of the Company’s various Operating Subsidiaries, primarily with respect to truck brokerage services. As a result of this change in presentation, the revenue and operating results formerly separated into the carrier and global logistics segments, together with corporate overhead, which was previously included as “other” in the segment information, were consolidated into the transportation logistics segment. This change in segment reporting had no impact on the Company’s consolidated balance sheets, statements of income, statements of cash flows or statements of changes in shareholders’ equity for any periods. This change in reporting also had no impact on reporting with respect to the insurance segment. Transportation Logistics Segment The transportation logistics segment provides a wide range of transportation and logistics services including truckload transportation, rail intermodal, air cargo and ocean cargo services, the arrangement of multimodal (ground, air, ocean and rail) moves and warehousing to a variety of industries including automotive products, paper, lumber and building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, ammunition and explosives and military hardware. In addition, the transportation logistics segment provides transportation services to other transportation companies, including logistics and less-than-truckload service providers. The transportation logistics segment also provides dedicated contract and logistics solutions, including freight optimization and less-than-truckload freight consolidations, expedited ground and air delivery of time-critical freight and the movement of containers via ocean. Each of the independent commission sales agents has the opportunity to market all of the services provided by the transportation logistics segment. Truck Services. The transportation logistics segment’s truck services include a full array of truckload transportation for a wide range of general commodities, much of which are over irregular or non-repetitive routes, utilizing a wide range of specialized equipment, including dry and specialty vans of various sizes, unsided trailers (including flatbeds, drop decks and light specialty trailers), temperature-controlled vans and containers. Available truckload services also include short-to-long haul movement of containers by truck and expedited ground and dedicated power-only truck capacity. The Company also offers less-than-truckload services. During fiscal year 2008, revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers was 58% and 42%, respectively, of total truck services revenue. The Company’s truck services contributed 90% of total revenue in fiscal year 2008. Rail Intermodal Services. The transportation logistics segment has contracts with all of the Class 1 railroads in North America and all major asset-based intermodal equipment providers, including agreements with stacktrain operators and various container and trailing equipment providers. In addition, the Company has contracts with a vast network of local trucking companies that handle pick-up and delivery of rail freight. These contracts provide Landstar the ability to transport freight via rail throughout the United States, Canada and Mexico. Landstar’s rail intermodal services include trailer on flat car, container on flat car, box car and railcar service capabilities. The Company’s rail intermodal services contributed 5% of total revenue in fiscal year 2008. Air and Ocean Services. The transportation logistics segment provides domestic and international air and ocean services to its customers utilizing airlines and ocean lines. Landstar executes international air freight transportation as an indirect air carrier (“IAC”) registered with the U.S. Department of Transportation (the “DOT”) and as an endorsed cargo network services (“CNS”) agent accredited by the International Air Transport Association (“IATA”). Landstar provides international ocean freight transportation solutions as a Federal Maritime Commission (“FMC”) licensed non-vessel operating common carrier (“NVOCC”) and ocean freight forwarder (“OFF”). Through its network of independent commission sales agents and relationships within a global network of foreign freight forwarders, Landstar provides efficient and cost effective door-to-door transportation to most points in the world for a vast array of cargo types such as over-sized
Table of Contentsbreak-bulk, consolidations, full container loads and refrigerated cargo. The Company’s air and ocean services contributed 2% of total revenue in fiscal year 2008. Warehousing Services. The transportation logistics segment offers its customers, through its independent commission sales agent network, national warehousing services without owning or leasing facilities or hiring employees to work at warehouses. The Company’s warehouse offering is designed to provide the availability of warehouse capacity nationally to its customers utilizing a network of independently owned and operated regional warehouse facilities linked by a single warehouse information technology application. Other Services. During the fiscal year ended December 27, 2008, revenue for passenger bus capacity provided for evacuation assistance related to the storms that impacted the Gulf Coast in September 2008 (“Bus Revenue”) represented 1% of the Company’s transportation logistics segment revenue. Insurance Segment The insurance segment is comprised of Signature, a wholly owned offshore insurance subsidiary, and RMCS. This segment provides risk and claims management services to 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 Landstar’s Operating Subsidiaries. Revenue, representing premiums on reinsurance programs provided to the Company’s BCO Independent Contractors, at the insurance segment represented approximately 1% of the Company’s total 2008 revenue. Description of Business Landstar is a non-asset based transportation and logistics services company, providing transportation capacity and related transportation services to shippers throughout the United States, and to a lesser extent, in Canada, and between the United States and Canada, Mexico and other countries. These business services emphasize safety, information coordination and customer service and are delivered through a network of independent commission sales agents and third party capacity providers linked together by a series of technological applications which are provided and coordinated by the Company. The Company markets its services primarily through independent commission sales agents who enter into contractual arrangements with Landstar 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, railroads and independent warehouse capacity providers (“Warehouse Capacity Owners” or “WCOs”). The Company has contracts with all of the Class 1 domestic railroads and certain Canadian railroads and contracts with domestic and international airlines and ocean lines. Through this network of agents and capacity providers, Landstar operates a transportation and logistics services business primarily throughout North America with revenue of approximately $2.6 billion during the most recently completed fiscal year. Historically, the Company reported the results of three operating segments: the carrier segment, the global logistics segment and the insurance segment. Beginning in the thirteen-week period ended March 29, 2008, the
Table of ContentsCompany revised the presentation format of its segment disclosure to consolidate the previously reported three segments to two segments: the transportation logistics segment and the insurance segment. This change in segment reporting reflected increased centralization and consolidation of certain administrative and sales functions across all of the Company’s Operating Subsidiaries and the increased similarity of the services provided by the operations of the Company’s various Operating Subsidiaries, primarily with respect to truck brokerage services. As a result of this change in presentation, the revenue and operating results formerly separated into the carrier and global logistics segments, together with corporate overhead, which was previously included as “other” in the segment information, were consolidated into the transportation logistics segment. This change in segment reporting had no impact on the Company’s consolidated balance sheets, statements of income, statements of cash flows or statements of changes in shareholders’ equity for any periods. This change in reporting also had no impact on reporting with respect to the insurance segment. Transportation Logistics Segment The transportation logistics segment provides a wide range of transportation and logistics services including truckload transportation, rail intermodal, air cargo and ocean cargo services, the arrangement of multimodal (ground, air, ocean and rail) moves and warehousing to a variety of industries including automotive products, paper, lumber and building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, ammunition and explosives and military hardware. In addition, the transportation logistics segment provides transportation services to other transportation companies, including logistics and less-than-truckload service providers. The transportation logistics segment also provides dedicated contract and logistics solutions, including freight optimization and less-than-truckload freight consolidations, expedited ground and air delivery of time-critical freight and the movement of containers via ocean. Each of the independent commission sales agents has the opportunity to market all of the services provided by the transportation logistics segment. Truck Services. The transportation logistics segment’s truck services include a full array of truckload transportation for a wide range of general commodities, much of which are over irregular or non-repetitive routes, utilizing a wide range of specialized equipment, including dry and specialty vans of various sizes, unsided trailers (including flatbeds, drop decks and light specialty trailers), temperature-controlled vans and containers. Available truckload services also include short-to-long haul movement of containers by truck and expedited ground and dedicated power-only truck capacity. The Company also offers less-than-truckload services. During fiscal year 2008, revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers was 58% and 42%, respectively, of total truck services revenue. The Company’s truck services contributed 90% of total revenue in fiscal year 2008. Rail Intermodal Services. The transportation logistics segment has contracts with all of the Class 1 railroads in North America and all major asset-based intermodal equipment providers, including agreements with stacktrain operators and various container and trailing equipment providers. In addition, the Company has contracts with a vast network of local trucking companies that handle pick-up and delivery of rail freight. These contracts provide Landstar the ability to transport freight via rail throughout the United States, Canada and Mexico. Landstar’s rail intermodal services include trailer on flat car, container on flat car, box car and railcar service capabilities. The Company’s rail intermodal services contributed 5% of total revenue in fiscal year 2008. Air and Ocean Services. The transportation logistics segment provides domestic and international air and ocean services to its customers utilizing airlines and ocean lines. Landstar executes international air freight transportation as an indirect air carrier (“IAC”) registered with the U.S. Department of Transportation (the “DOT”) and as an endorsed cargo network services (“CNS”) agent accredited by the International Air Transport Association (“IATA”). Landstar provides international ocean freight transportation solutions as a Federal Maritime Commission (“FMC”) licensed non-vessel operating common carrier (“NVOCC”) and ocean freight forwarder (“OFF”). Through its network of independent commission sales agents and relationships within a global network of foreign freight forwarders, Landstar provides efficient and cost effective door-to-door transportation to most points in the world for a vast array of cargo types such as over-sized
Table of Contentsbreak-bulk, consolidations, full container loads and refrigerated cargo. The Company’s air and ocean services contributed 2% of total revenue in fiscal year 2008. Warehousing Services. The transportation logistics segment offers its customers, through its independent commission sales agent network, national warehousing services without owning or leasing facilities or hiring employees to work at warehouses. The Company’s warehouse offering is designed to provide the availability of warehouse capacity nationally to its customers utilizing a network of independently owned and operated regional warehouse facilities linked by a single warehouse information technology application. Other Services. During the fiscal year ended December 27, 2008, revenue for passenger bus capacity provided for evacuation assistance related to the storms that impacted the Gulf Coast in September 2008 (“Bus Revenue”) represented 1% of the Company’s transportation logistics segment revenue. Insurance Segment The insurance segment is comprised of Signature, a wholly owned offshore insurance subsidiary, and RMCS. This segment provides risk and claims management services to 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 Landstar’s Operating Subsidiaries. Revenue, representing premiums on reinsurance programs provided to the Company’s BCO Independent Contractors, at the insurance segment represented approximately 1% of the Company’s total 2008 revenue. Description of Business Landstar is a non-asset based transportation and logistics services company, providing transportation capacity and related transportation services to shippers throughout the United States, and to a lesser extent, in Canada, and between the United States and Canada, Mexico and other countries. These business services emphasize safety, information coordination and customer service and are delivered through a network of independent commission sales agents and third party capacity providers linked together by a series of technological applications which are provided and coordinated by the Company. The Company markets its services primarily through independent commission sales agents who enter into contractual arrangements with Landstar 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, railroads and independent warehouse capacity providers (“Warehouse Capacity Owners” or “WCOs”). The Company has contracts with all of the Class 1 domestic railroads and certain Canadian railroads and contracts with domestic and international airlines and ocean lines. Through this network of agents and capacity providers, Landstar operates a transportation and logistics services business primarily throughout North America with revenue of approximately $2.6 billion during the most recently completed fiscal year. Historically, the Company reported the results of three operating segments: the carrier segment, the global logistics segment and the insurance segment. Beginning in the thirteen-week period ended March 29, 2008, the
Table of ContentsCompany revised the presentation format of its segment disclosure to consolidate the previously reported three segments to two segments: the transportation logistics segment and the insurance segment. This change in segment reporting reflected increased centralization and consolidation of certain administrative and sales functions across all of the Company’s Operating Subsidiaries and the increased similarity of the services provided by the operations of the Company’s various Operating Subsidiaries, primarily with respect to truck brokerage services. As a result of this change in presentation, the revenue and operating results formerly separated into the carrier and global logistics segments, together with corporate overhead, which was previously included as “other” in the segment information, were consolidated into the transportation logistics segment. This change in segment reporting had no impact on the Company’s consolidated balance sheets, statements of income, statements of cash flows or statements of changes in shareholders’ equity for any periods. This change in reporting also had no impact on reporting with respect to the insurance segment. Transportation Logistics Segment The transportation logistics segment provides a wide range of transportation and logistics services including truckload transportation, rail intermodal, air cargo and ocean cargo services, the arrangement of multimodal (ground, air, ocean and rail) moves and warehousing to a variety of industries including automotive products, paper, lumber and building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, ammunition and explosives and military hardware. In addition, the transportation logistics segment provides transportation services to other transportation companies, including logistics and less-than-truckload service providers. The transportation logistics segment also provides dedicated contract and logistics solutions, including freight optimization and less-than-truckload freight consolidations, expedited ground and air delivery of time-critical freight and the movement of containers via ocean. Each of the independent commission sales agents has the opportunity to market all of the services provided by the transportation logistics segment. Truck Services. The transportation logistics segment’s truck services include a full array of truckload transportation for a wide range of general commodities, much of which are over irregular or non-repetitive routes, utilizing a wide range of specialized equipment, including dry and specialty vans of various sizes, unsided trailers (including flatbeds, drop decks and light specialty trailers), temperature-controlled vans and containers. Available truckload services also include short-to-long haul movement of containers by truck and expedited ground and dedicated power-only truck capacity. The Company also offers less-than-truckload services. During fiscal year 2008, revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers was 58% and 42%, respectively, of total truck services revenue. The Company’s truck services contributed 90% of total revenue in fiscal year 2008. Rail Intermodal Services. The transportation logistics segment has contracts with all of the Class 1 railroads in North America and all major asset-based intermodal equipment providers, including agreements with stacktrain operators and various container and trailing equipment providers. In addition, the Company has contracts with a vast network of local trucking companies that handle pick-up and delivery of rail freight. These contracts provide Landstar the ability to transport freight via rail throughout the United States, Canada and Mexico. Landstar’s rail intermodal services include trailer on flat car, container on flat car, box car and railcar service capabilities. The Company’s rail intermodal services contributed 5% of total revenue in fiscal year 2008. Air and Ocean Services. The transportation logistics segment provides domestic and international air and ocean services to its customers utilizing airlines and ocean lines. Landstar executes international air freight transportation as an indirect air carrier (“IAC”) registered with the U.S. Department of Transportation (the “DOT”) and as an endorsed cargo network services (“CNS”) agent accredited by the International Air Transport Association (“IATA”). Landstar provides international ocean freight transportation solutions as a Federal Maritime Commission (“FMC”) licensed non-vessel operating common carrier (“NVOCC”) and ocean freight forwarder (“OFF”). Through its network of independent commission sales agents and relationships within a global network of foreign freight forwarders, Landstar provides efficient and cost effective door-to-door transportation to most points in the world for a vast array of cargo types such as over-sized
Table of Contentsbreak-bulk, consolidations, full container loads and refrigerated cargo. The Company’s air and ocean services contributed 2% of total revenue in fiscal year 2008. Warehousing Services. The transportation logistics segment offers its customers, through its independent commission sales agent network, national warehousing services without owning or leasing facilities or hiring employees to work at warehouses. The Company’s warehouse offering is designed to provide the availability of warehouse capacity nationally to its customers utilizing a network of independently owned and operated regional warehouse facilities linked by a single warehouse information technology application. Other Services. During the fiscal year ended December 27, 2008, revenue for passenger bus capacity provided for evacuation assistance related to the storms that impacted the Gulf Coast in September 2008 (“Bus Revenue”) represented 1% of the Company’s transportation logistics segment revenue. Insurance Segment The insurance segment is comprised of Signature, a wholly owned offshore insurance subsidiary, and RMCS. This segment provides risk and claims management services to 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 Landstar’s Operating Subsidiaries. Revenue, representing premiums on reinsurance programs provided to the Company’s BCO Independent Contractors, at the insurance segment represented approximately 1% of the Company’s total 2008 revenue. Description of Business Landstar is a non-asset based transportation and logistics services company, providing transportation capacity and related transportation services to shippers throughout the United States, and to a lesser extent, in Canada, and between the United States and Canada, Mexico and other countries. These business services emphasize safety, information coordination and customer service and are delivered through a network of independent commission sales agents and third party capacity providers linked together by a series of technological applications which are provided and coordinated by the Company. The Company markets its services primarily through independent commission sales agents who enter into contractual arrangements with Landstar 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, railroads and independent warehouse capacity providers (“Warehouse Capacity Owners” or “WCOs”). The Company has contracts with all of the Class 1 domestic railroads and certain Canadian railroads and contracts with domestic and international airlines and ocean lines. Through this network of agents and capacity providers, Landstar operates a transportation and logistics services business primarily throughout North America with revenue of approximately $2.6 billion during the most recently completed fiscal year. Historically, the Company reported the results of three operating segments: the carrier segment, the global logistics segment and the insurance segment. Beginning in the thirteen-week period ended March 29, 2008, the
Table of ContentsCompany revised the presentation format of its segment disclosure to consolidate the previously reported three segments to two segments: the transportation logistics segment and the insurance segment. This change in segment reporting reflected increased centralization and consolidation of certain administrative and sales functions across all of the Company’s Operating Subsidiaries and the increased similarity of the services provided by the operations of the Company’s various Operating Subsidiaries, primarily with respect to truck brokerage services. As a result of this change in presentation, the revenue and operating results formerly separated into the carrier and global logistics segments, together with corporate overhead, which was previously included as “other” in the segment information, were consolidated into the transportation logistics segment. This change in segment reporting had no impact on the Company’s consolidated balance sheets, statements of income, statements of cash flows or statements of changes in shareholders’ equity for any periods. This change in reporting also had no impact on reporting with respect to the insurance segment. Transportation Logistics Segment The transportation logistics segment provides a wide range of transportation and logistics services including truckload transportation, rail intermodal, air cargo and ocean cargo services, the arrangement of multimodal (ground, air, ocean and rail) moves and warehousing to a variety of industries including automotive products, paper, lumber and building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, ammunition and explosives and military hardware. In addition, the transportation logistics segment provides transportation services to other transportation companies, including logistics and less-than-truckload service providers. The transportation logistics segment also provides dedicated contract and logistics solutions, including freight optimization and less-than-truckload freight consolidations, expedited ground and air delivery of time-critical freight and the movement of containers via ocean. Each of the independent commission sales agents has the opportunity to market all of the services provided by the transportation logistics segment. Truck Services. The transportation logistics segment’s truck services include a full array of truckload transportation for a wide range of general commodities, much of which are over irregular or non-repetitive routes, utilizing a wide range of specialized equipment, including dry and specialty vans of various sizes, unsided trailers (including flatbeds, drop decks and light specialty trailers), temperature-controlled vans and containers. Available truckload services also include short-to-long haul movement of containers by truck and expedited ground and dedicated power-only truck capacity. The Company also offers less-than-truckload services. During fiscal year 2008, revenue hauled by BCO Independent Contractors and Truck Brokerage Carriers was 58% and 42%, respectively, of total truck services revenue. The Company’s truck services contributed 90% of total revenue in fiscal year 2008. Rail Intermodal Services. The transportation logistics segment has contracts with all of the Class 1 railroads in North America and all major asset-based intermodal equipment providers, including agreements with stacktrain operators and various container and trailing equipment providers. In addition, the Company has contracts with a vast network of local trucking companies that handle pick-up and delivery of rail freight. These contracts provide Landstar the ability to transport freight via rail throughout the United States, Canada and Mexico. Landstar’s rail intermodal services include trailer on flat car, container on flat car, box car and railcar service capabilities. The Company’s rail intermodal services contributed 5% of total revenue in fiscal year 2008. Air and Ocean Services. The transportation logistics segment provides domestic and international air and ocean services to its customers utilizing airlines and ocean lines. Landstar executes international air freight transportation as an indirect air carrier (“IAC”) registered with the U.S. Department of Transportation (the “DOT”) and as an endorsed cargo network services (“CNS”) agent accredited by the International Air Transport Association (“IATA”). Landstar provides international ocean freight transportation solutions as a Federal Maritime Commission (“FMC”) licensed non-vessel operating common carrier (“NVOCC”) and ocean freight forwarder (“OFF”). Through its network of independent commission sales agents and relationships within a global network of foreign freight forwarders, Landstar provides efficient and cost effective door-to-door transportation to most points in the world for a vast array of cargo types such as over-sized
Table of Contentsbreak-bulk, consolidations, full container loads and refrigerated cargo. The Company’s air and ocean services contributed 2% of total revenue in fiscal year 2008. Warehousing Services. The transportation logistics segment offers its customers, through its independent commission sales agent network, national warehousing services without owning or leasing facilities or hiring employees to work at warehouses. The Company’s warehouse offering is designed to provide the availability of warehouse capacity nationally to its customers utilizing a network of independently owned and operated regional warehouse facilities linked by a single warehouse information technology application. Other Services. During the fiscal year ended December 27, 2008, revenue for passenger bus capacity provided for evacuation assistance related to the storms that impacted the Gulf Coast in September 2008 (“Bus Revenue”) represented 1% of the Company’s transportation logistics segment revenue. Insurance Segment The insurance segment is comprised of Signature, a wholly owned offshore insurance subsidiary, and RMCS. This segment provides risk and claims management services to 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 Landstar’s Operating Subsidiaries. Revenue, representing premiums on reinsurance programs provided to the Company’s BCO Independent Contractors, at the insurance segment represented approximately 1% of the Company’s total 2008 revenue. | EXCERPTS ON THIS PAGE:
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