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Company Name EXPONENT INC Vist SEC web-site
Category SERVICES-MANAGEMENT CONSULTING SERVICES
Trading Symbol EXPO
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Income Statement

Excrept from filing document 2025-01-03

  • The aggregate market value of the common stock held by non affiliates of the registrant based on the closing sales price of the common stock as reported on the NASDAQ Global Select Market on June 28 2024 the last business day of the registrant s most recently completed second quarter was approximately 3 7 billion Shares of the registrant s common stock held by each executive officer and director and by each entity or person that to the registrant s knowledge owned 10 or more of registrant s outstanding common stock as of June 28 2024 have been excluded in that such persons may be deemed to be affiliates of the registrant This determination of affiliate status is not necessarily a conclusive determination for other purposes The number of shares of the registrant s common stock outstanding as of February 21 2025 was 50 818 234
  • This Annual Report on Form 10 K contains and incorporates by reference certain forward looking statements as such term is defined in the Private Securities Litigation Reform Act of 1995 and the rules promulgated pursuant to the Securities Act of 1933 as amended the Securities Act and the Securities Exchange Act of 1934 as amended the Exchange Act that are based on the beliefs of the Company s management as well as assumptions made by and information currently available to the Company s management Such forward looking statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 When used in this document and in the documents incorporated herein by reference the words intend anticipate believe estimate expect and similar expressions as they relate to the Company or its management identify such forward looking statements Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks uncertainties and assumptions Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect the Company s actual results performance or achievements could differ materially from those expressed in or implied by any such forward looking statements Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions the timing of engagements for our services the effects of competitive services and pricing the absence of backlog related to our business our ability to attract and retain key employees the effect of tort reform and government regulation on our business and liabilities resulting from claims made against us Additional risks and uncertainties are discussed under the heading Risk Factors and elsewhere in this Annual Report on Form 10 K
  • The inclusion of such forward looking information should not be regarded as a representation by the Company or any other person that the future events plans or expectations contemplated by the Company will be achieved Due to such uncertainties and risks you are cautioned not to place undue reliance on such forward looking statements which speak only as of the date hereof The Company does not intend to release publicly any updates or revisions to any such forward looking statements
  • Exponent Inc together with its subsidiaries Exponent the Company we us and our is a science and engineering consulting firm that provides solutions to complex problems Our interdisciplinary team of scientists physicians engineers and business consultants draws from more than 90 technical disciplines to solve the most pressing and complicated challenges facing stakeholders today The firm leverages over 55 years of experience in analyzing accidents and failures to advise clients as they innovate their technologically complex products and processes ensure the safety and health of their users and address the challenges of sustainability
  • The history of Exponent Inc goes back to 1967 with the founding of the partnership Failure Analysis Associates which was incorporated the following year in California and reincorporated in Delaware as Failure Analysis Associates Inc in 1988 The Failure Group Inc was organized in 1989 as a holding company for Failure Analysis Associates Inc and changed its name to Exponent Inc in 1998
  • Exponent serves clients in chemical construction consumer products energy food beverage and nutrition government life sciences insurance manufacturing technology industrial equipment transportation and other sectors of the economy Many of our engagements are initiated directly by large corporations or by lawyers or insurance companies whose clients anticipate or are engaged in litigation related to their products equipment processes or services The scope of our services in failure prevention and technology evaluation has grown as the technological complexity of products has increased over the years During 2024 we provided services representing approximately 24 19 16 and 10 of revenues to clients in the consumer products industry energy and utilities industries transportation industry and chemical industry respectively
  • We provide our services on either a fixed price basis or on a time and material basis charging in the latter case hourly rates for each staff member involved in a project based on their skills and experience Our standard rates for professionals range from 210 to 1 050 per hour Our engagement agreements typically provide for monthly billing require payment of our invoices within 30 days of receipt and permit clients to terminate engagements at any time Clients normally agree to indemnify us and our personnel against liabilities arising out of the use or application of the results of our work or recommendations
  • Exponent provides high quality engineering and scientific consulting services to clients around the world Our service offerings are provided on a project by project basis Many projects require support from multiple practices We currently operate the following 16 practices in two reportable operating segments i Engineering and Other Scientific and ii Environmental and Health
  • Our Biomechanics Practice applies engineering principles and biomechanical knowledge to address intricate challenges at the intersection of biology healthcare and engineering Our expertise enables us to comprehend and evaluate the interaction between the human body as a biological system and the physical environment This analysis facilitates the identification of the causes nature and severity of injuries as well as the potential impact and optimization of human health and well being We apply biomechanical principles to assess the injury potential associated with the use and misuse of consumer and industrial products Furthermore we extend these principles to support the development and integration of wearable and digital technology solutions tailored to specific use cases and user outcomes
  • Over the past year our biomechanics staff conducted analyses of human injuries that occurred while individuals were utilizing a diverse range of products including recreational vehicles sporting goods trucks trains aircraft industrial equipment and automobiles Additionally they evaluated the implications of utilizing protective devices such as restraint systems airbags and helmets in reducing the likelihood of injury and assessed injuries in various settings including workplaces homes and recreational activities Our consultants also evaluated product designs for performance hazards and injury risks to assist clients with design modifications address consumer feedback and respond to regulatory requirements Finally they designed and conducted a series of large scale laboratory based and subsequent clinical validation and benchmarking efforts to support the design development and adoption of fit for purpose solutions
  • Our Biomedical Engineering and Sciences Practice applies engineering principles and scientific methodologies to medical technologies including the evaluation of designs and performance of medical devices pharmaceuticals and biologics Our engineers and scientists assist clients with characterization of biomaterials medical devices and their interactions with pharmaceuticals cells and tissues To assist in regulatory clearance and approval we perform preclinical testing help formulate related regulatory strategy and conduct design verification and validation We also assist with design and manufacturing failure analyses root cause assessment recall management and medical device explant analysis In addition our staff performs analysis of clinical outcomes for medical devices and related procedures using administrative claims databases Our expertise is also utilized in product liability intellectual property litigation regulatory investigation support technology acquisition and due diligence matters
  • Our Civil Structural Engineering Practice brings together decades of expertise to offer a comprehensive multidisciplinary approach to promoting the safety durability and economic viability of a wide range of infrastructure assets We address the challenges inherent in designing constructing and maintaining buildings bridges tunnels pipelines and industrial facilities investigating the extent to which these structures perform their essential functions under a variety of loading conditions and natural hazards Our team which includes structural engineers geotechnical experts architects material scientists and geologists is dedicated to identifying and solving complex engineering problems Whether it s evaluating structural failures due to natural or human induced phenomena or investigating soil issues such as landslides foundation and retaining wall damage and dam or levee failures we leverage sophisticated simulation tools on site inspections laboratory testing and state of the art remote sensing technologies to provide actionable insights and recommendations for remediation
  • In addition to failure investigations and repair recommendations we specialize in assessment and mitigation of risk to the built environment associated with hazards such as hurricanes flooding wildfires earthquakes explosions ground movement and aging infrastructure We have assessed such risks to high rise buildings bridges tunnels industrial facilities pipelines and nuclear power plant structures and provided testimony in the U S and international courts of law Our expert consultation ensures that clients from property owners and contractors to utilities and government agencies receive the highest level of technical support and innovative solutions to complex engineering challenges
  • Our Construction Consulting Practice provides expertise in the areas of project advisory risk analysis strategic planning dispute resolution delay analysis and assessment of financial damages We have continued to expand the practice by leveraging key client relationships in several industry sectors including utilities data centers infrastructure and oil and gas
  • Over the past year our team of advisors and experts have been retained on numerous complex projects around the world Our advisors and experts have successfully collaborated with our clients on numerous assignments from assisting in establishing best in class construction and risk management processes and structures managing a variety of programs and projects to providing forensic analysis and expert advice in analyzing and resolving project performance cost and schedule impact claims in both domestic and international arbitration and private and public litigation matters Our multi disciplinary staff which includes engineers project and program managers schedulers quantity surveyors and cost specialists provide these services to both the public and private sectors for clients who represent a diverse mix of corporations law firms and agencies Our projects support many sectors of the construction and engineering industry which include electric and gas utilities refineries petrochemical facilities data centers building construction transportation systems infrastructure power plants hospitals airports and sporting arenas
  • Our Data Sciences Practice comprises our core capabilities in statistics data analytics and dedicated data collection Drawing on experience in a breadth of engineering science health and environmental applications we assist clients with their most complex data challenges at all stages of the product or process life cycle Our team of interdisciplinary scientists and engineers designs sampling plans surveys and experiments to create manage and analyze data sets of all sizes and varieties User focused visualizations support data driven decision making and help clients measure risks and benefits to determine appropriate courses of action Utilizing rigorous statistical methods our team can help assess and improve quality and reliability and mitigate risk Our experience helps clients build products that perform for a wide variety of users while preventing data bias collecting personal data with consideration for privacy and managing the risks associated with global data collection
  • During the past year our team worked on diverse projects for government industry and legal clients We performed assessments of manufacturing quality systems evaluated the durability and reliability of smart cards for identity management and credentialing examined the in service safety record of home appliances and medical devices and developed sampling plans associated with product recall campaigns
  • Our Electrical Engineering and Computer Science Practice offers a broad range of expertise to address complex issues for industrial government and legal clients Our power engineers advise clients on challenges relating to reliability of electrical systems failures in power generation transmission and distribution as well as on distributed generation and renewables In the area of energy storage we are a leader in the industry in expertise and capabilities for safety of large format batteries whether for electric vehicles or distributed storage
  • Our team of electronic engineers works on failure analysis product robustness and reliability for consumer devices industrial electronics and the health industry Our computer scientists and engineers advise high tech industry clients and work with computer controlled applications to evaluate product safety and software reliability The computer science and engineering expertise we offer encompasses a breadth of areas including machine learning and artificial intelligence information and numerical sciences algorithms and data structures computer graphics computer architecture networking and communications as well as security and cryptography We operate laboratories for testing heavy equipment and electronics and we have a broad capability in analyzing computer software
  • Over the past year we performed a wide array of investigations ranging from assessing damage to electrical power infrastructure from the effect of weather related events to working with clients to develop sophisticated machine learning algorithms applied to large quantities of unstructured data We continue to work with consumer electronics manufacturers and the transportation industry on the reliability and robustness of computer controlled equipment for user safety
  • Our Human Factors Practice evaluates human performance and safety in product and system use Our consultants study how the limitations and capabilities of people including memory perception attention reaction time judgment physical size and dexterity affect the way they use a product interact with an organization or environment process information or participate in an activity
  • We apply our expertise in human behavior warnings and decision making in class actions suits and in evaluating claims seeking to establish a class In addition we assist manufacturers with compliance with regulatory guidelines related to products and work with them regarding analysis of adverse event reports and consumer complaints in publicly available databases overseen by the Consumer Product Safety Commission and the U S Food and Drug Administration
  • We examine the role that attention plays in human perception memory and behavior and how attention inattention and distraction may affect safety in a wide range of settings and activities e g operating vehicles and machinery walking and using consumer products We address the reliability of human memory and retrospective reporting in the gathering of fact based evidence We utilize scientific investigations and research e g human perception reaction time and looking behavior to assess driver behavior in both accident investigations and during the design of automotive systems Our Human Factors scientists have been actively engaged in research and project work supporting the National Highway Traffic Safety Administration NHTSA covering topics such as Advanced Driver Assistance Systems ADAS and automated vehicle technology in order to understand and advise our clients on how these technologies may change the nature and dynamic of driving and the role and performance of the driver
  • We provide user experience research including focus groups usability testing and complex user studies with custom tailored designs across a wide range of industries including consumer electronics medical devices and vehicle technologies Our state of the art Phoenix User Research Center with 5 000 square feet of research space has six lab suites including a dedicated focus group room an ophthalmological lab a motion capture lab and wearable eye tracking technology plus connectivity to our vehicle test track The scope of Human Factors engagements ranges from consulting on our clients research to providing turnkey research solutions
  • We perform incident investigations and root cause analyses of near misses and accidents involving human error in occupational and industrial settings Our Human Factors scientists have advanced technical systems training and experience required to understand how humans contribute to the initiation of and emergency response to explosions fires chemical releases and major equipment failures in the manufacturing utility oil and gas and construction industries among others We also capitalize on this knowledge to conduct human error risk and culture assessments to help clients proactively control human performance gaps improve occupational and process safety performance and create administrative controls and procedures
  • Our in depth knowledge of materials science corrosion and metallurgical engineering combined with the breadth of our collective experience across many industries and disciplines gives our Materials and Corrosion Engineering Practice a unique ability to efficiently provide our clients with solutions to their complex materials based problems We use our knowledge and experience to understand how and why materials products and processes may not perform
  • Over the past year our Materials and Corrosion Engineering Practice helped clients solve critical materials related issues in the consumer electronics medical devices battery systems chemical processing transportation energy utilities and aerospace fields among others Our support of dispute resolution in the intellectual property premises and product liability fields continued to grow supported by our strong position in direct industrial consulting
  • Our consultants review the performance and reliability of industrial processes manufactured products and engineered systems and we determine the root cause of failures We assist in legal and insurance matters failure investigations product recall investigations internal compliance programs product development workplace safety evaluations and intellectual property matters
  • Our staff members develop and utilize detailed and validated computational models and laboratory experimental methods to evaluate products systems and equipment We perform field inspections rely on industry standards and utilize operational data to inform our analyses We have performed these activities in a broad range of industries including transportation energy industrial equipment building systems medical devices and consumer products
  • Our Polymer Science and Materials Chemistry Practice consults with industrial government legal insurance and individual clients regarding polymers and textiles used in diverse applications as well as the chemistry materials and processing aspects of batteries drug delivery systems and other products that depend on highly controlled manufacturing environments
  • We assist clients in understanding the short and long term performance of plastic rubber adhesive coating composite reactive chemical systems and electrochemical energy storage systems when challenged by physical chemical thermal and other operational stressors Our work also includes customized chemical electrochemical and rheological testing and leverages expanding internal infrastructure for instrumented analysis and advanced imaging capabilities
  • Our consultants participate in product development programs perform failure analyses and provide support to clients involved in regulatory and legal proceedings and the protection of intellectual property Clients value our technical expertise related to chemistry formulation manufacturing and materials performance our understanding of the history and evolution of these materials and our ability to assist them in identifying and incorporating emerging materials and manufacturing technologies into their businesses
  • During the past year significant program activities addressed aspects of battery systems consumer electronics wearable devices implantable medical devices drug delivery systems medical diagnostics building materials water handling systems oil and gas applications the plastics supply chain fire retardancy and flammability technology scouting materials science aspects of health risk service life prediction sustainability and intellectual property related to consumer recreational medical pharmaceutical food packaging and other products
  • Our Thermal Sciences Practice provides expert analysis to investigate failures involving thermo fluid systems fires and explosions in industrial residential commercial and transportation sectors We have investigated and analyzed thousands of thermal incidents ranging from high loss accidents in the oil and gas sector and major wildland fires to small insurance claims Information gained from these analyses has allowed us to also assist clients in proactively making their assets and products safer
  • Our staff consisting of mechanical chemical fire protection aeronautical and astronautical and nuclear engineers have assisted clients in assessing risk to and from their facilities consumer product recalls regulatory compliance and frequently provide expert testimony in domestic litigation and international arbitration Our engineers use advanced computational fluid dynamics fire and explosion modeling tools to supplement our analytical experimental and field based activities Preventive services include process safety hazard analysis for the chemical oil and gas and semiconductor industries fire protection engineering product development support risk based asset management and dust explosion consulting
  • In recent years our Thermal Sciences Practice has developed tools to evaluate fire and explosion risks of lithium ion batteries in applications including consumer products vehicles and grid scale energy storage We continue to be very active in wildland fire investigation and continue to assist our clients in making informed risk based decisions related to their assets and wildfires We have also developed analytical tools to assist utility clients assess the risk of ignition from their infrastructure
  • During the past year we have continued to grow in our work in oil and gas exploration and production liquefied natural gas and downstream oil and gas Our work in fire detection and protection related issues has remained robust and our work in consumer product recall and international arbitration has also grown
  • We have performed thousands of investigations for the automotive trucking recreational vehicle marine aerospace and rail industries Internal research programs and client projects have resulted in technological contributions that have assisted manufacturers in the understanding of product performance and provided insight to government agencies in establishing policy and regulations Information gained from these analyses has also assisted clients in assessing preventive measures related to the design of their products as well as evaluating failures
  • Our Test and Engineering Center located in Phoenix Arizona is used for our most complex testing and analysis We have gained a worldwide reputation for our ability to mobilize resources expeditiously and efficiently integrate a broad array of technical disciplines and provide valuable insight that is objective and withstands rigorous scrutiny Many of our projects involve addressing the cause of accidents and our clients rely on us to determine what happened in an accident and why it happened In many cases clients also want us to assess what could have been done to reduce the severity of the accident or to mitigate occupant injuries to those involved
  • Current advances in emerging transportation technologies and concepts allow our multi disciplinary team of scientists engineers and analysts across numerous practices to focus on the development and implementation of connected vehicles automated vehicles connected smart cities and data analyses Whether the objective is design analysis component testing failure analysis or accident reconstruction our knowledge of vehicle systems and engineering principles coupled with our experience from conducting full scale tests aim to add insight and proficiency to every project
  • Our Chemical Regulation and Food Safety Practice includes both technical and regulatory specialists who are experts in dealing with foods food ingredients cosmetics dietary supplements pesticides and biocides including conventional chemicals microbials antimicrobials biocides biopesticides emerging technologies and products of biotechnology industrial chemicals pesticide biocide devices consumer products medical devices and pharmaceuticals We provide practical scientific and regulatory support to meet global business objectives at every stage of the product life cycle from research and development to retail and beyond
  • During the past year our Chemical Regulation and Food Safety staff have conducted a wide array of work The European and U S sides of the practice were jointly involved with ongoing support of several new pesticide active ingredients and end use products The European side of our business was involved with many projects related to plant protection and biocidal product regulatory submissions from new active substances and those under review to product specific dossiers for European Union member states and the United Kingdom This has included new technologies in plant protection that meet the regulatory pressures to achieve greater sustainability We have also provided support for reviews of a large number of biocidal products through European and South Korean regulatory
  • reviews In addition we provided many specialist assessments relating to human and environmental exposure risk and product efficacy as well as national and international Maximum Residue Limit import tolerance submissions covering countries such as South Korea and Japan The U S side of our business was also involved in many projects related to agrochemical antimicrobial emerging technologies and biochemical product regulatory submissions and approvals in the U S Canada Brazil and Mexico These included new active ingredients end use products emerging technologies and import tolerances EPA and FDA In addition we have supported several clients in the U S with U S Toxic Substances Control Act and USDA Animal and Plant Health Inspection Service compliance We have supported clients with scientific and regulatory human and environmental exposure risk assessments and product reviews In Europe and the U S we continued to provide clients with regulatory compliance support for food contact materials food additives novel foods nutrition related analyses as well as undertaking safety assessments for food cosmetic and consumer products Our European and U S teams have been working together to help clients navigate and comply with the FDA MoCRA Cosmetics regulations that took effect in 2023
  • We also provided proactive and reactive product safety and litigation support For industrial chemicals we continued to provide full regulatory support for our clients who prepared and submitted registrations and risk assessments Our European and U S offices were active in supporting our clients with their E U and U K Registration Evaluation Authorisation and Restriction of Chemicals and TSCA regulatory requirements
  • Our ecological and biological scientists provide strategic support on issues related to the environment and natural resources damages associated with chemicals and forest fires international environmental disputes ecosystem service assessments for businesses adverse weather events climate change ecological risk assessment ecotoxicology novel remediation methods restoration of wetlands and other natural resources large development projects resource utilization such as mineral mining oil and gas wood pulp transportation etc agriculture land use impacts genomic assessments product stewardship and the use of chemicals and other products in commerce Focusing on both legacy and emerging contaminants the practice specializes in assessing the integrated effects of chemical biological and physical stressors on aquatic and terrestrial ecosystems Many of these assessments utilize a causal analysis approach to determine causation systematically and transparently in complex and interrelated situations The practice is comprised of nationally and internationally recognized experts that cover disciplines related to the fate and effects of chemical constituents and other stressors including the ecological implications and risks associated with these projects
  • Our environmental scientists and engineers provide cost effective scientifically defensible and realistic assessments and solutions to complex environmental issues We offer technical regulatory and litigation support to industries that include oil and gas mining and minerals chemicals forest products railroads aerospace development and trade associations and to municipal and governmental clients Our consultants specialize in the areas of environmental fate and transport environmental chemistry and forensics remediation consulting environmental engineering and waste management and natural resources damages assessment
  • We provide case specific strategic and advisory consulting on risk mitigation planning and environmental regulatory and policy issues as well as high level technical strategic consulting to support critical business decisions and for complex matters where understanding the long term implications of early technical actions is critical to managing overall liability
  • Our health scientists including epidemiologists toxicologists industrial hygienists exposure scientists biostatisticians risk assessment scientists and physicians apply scientific and medical principles to examine and address complex human health related risk benefit and value issues in a variety of settings Our consultants are
  • Our work has included numerous community and environmental health assessments disease cluster investigations survey research real world data platforms cohort and case control studies exposure assessment and simulation studies biologically based modeling meta analyses and state of the art literature reviews We have addressed critical issues for clients on industrial chemicals pesticides mineral fibers pharmaceuticals medical devices consumer products digital health technology nanotechnology and other agents and products as they relate to human health risk
  • Our multidisciplinary team has extensive experience investigating a broad variety of health concerns such as claims of adverse health effects from exposures to a wide range of physical agents e g ionizing radiation and low and radio frequency electromagnetic fields chemical agents e g volatile organic compounds per and polyfluoroalkyl substances PFAS mineral fibers metals air pollutants fumes and nanoparticles and biological agents fungi molds bacteria and other micro organisms
  • We can assess the potential health effects of occupational and environmental exposures investigate accidental releases of chemicals and evaluate fate and transport of chemical substances characterize consumer and workplace exposures through simulation and exposure reconstruction develop measures of prevention and exposure control and assist clients with occupational safety and health evaluations
  • Our Health Sciences team working closely with Biomechanics Biomedical Engineering Sciences Data Sciences Human Factors Polymer Science Materials Chemistry and other practices has considerable expertise in healthcare data science strategy design and application of health economics and outcomes research such as burden of illness assessment selection quality assessment and analysis of electronic health records and healthcare claims and the explication of methodological issues such as randomization bias data linkages drug interactions and identification of high risk populations
  • The marketplace for our services is fragmented and we face different sources of competition in providing various services In addition the services that we provide to some of our clients can be performed in house by those clients Clients that have the capability to perform such services themselves will retain Exponent or other independent consultants because of independence concerns
  • In each of our practices we believe that the principal competitive factors are technical capability and breadth of services ability to deliver services on a timely basis professional reputation and knowledge of litigation and regulatory processes Although we believe that we generally compete favorably in each of these areas some of our competitors may be able to provide services acceptable to our clients at lower prices
  • Exponent is a global engineering and scientific consulting firm that partners with clients to deliver breakthrough insights and answers In a world experiencing accelerating change over our 50 years in business we still deliver the same vital promise technical excellence unrivaled expertise and a unique multidisciplinary approach to asking and answering the right questions Our vision is to work together with our teams and our clients to solve the most formidable scientific and engineering challenges to create a safe healthier sustainable world
  • We work toward this vision by creating an unrivaled environment of engineering and scientific expertise collaboration and opportunity for exceptional people to achieve breakthrough insights and objective solutions for our clients vital challenges Attracting exciting developing and rewarding these people is central to our mission and our success Our culture actively supports the development of our professionals and their potential by creating a stimulating growth oriented and inclusive environment
  • We keep our values and responsibilities front and center in everything we do our hiring our training our processes and our daily effort These values include objectivity and work grounded in evidence and facts excellence in our work and rigorous commitment to the highest standards of quality and integrity respect and care for our teammates peers and partners a commitment to a diversity of ideas disciplines and lived experiences and a shared belief in the importance of service responsibility and making a positive difference for our peers our professions and our communities
  • We advance scientific and engineering knowledge through the work of employees but also through a comprehensive commitment to education teaching mentoring publishing and serving Recognized leaders in their fields Exponent staff serve on more than 250 individual scientific and engineering committees and advisory boards Others serve in leadership roles or are actively working to develop technical standards Exponent s professionals routinely contribute to peer reviewed scientific literature and publish articles chapters and books each year To date Exponent staff have published more than 1 200 articles in scientific and engineering journals And today more than 50 Exponent consultants serve as professors lecturers instructors and advisors at universities and academic institutions across the country and around the world
  • As of January 3 2025 we employed 1 168 full time part time and intermittent employees including 917 engineering and scientific staff 49 technical support staff and 202 administrative and support staff Our staff includes 874 employees with advanced degrees of which 683 employees have achieved doctorate degrees As of January 3 2025 approximately 88 of our employees were located in the United States and 12 were located in other global regions
  • Technical full time equivalent employees is a key metric that we use to analyze our revenues During 2024 technical full time equivalent employees decreased 8 to 967 as compared to 1 047 during the prior year To ensure a compelling total rewards philosophy and practice we have practices in place to deliver fair and equitable compensation for employees based on their contribution and performance We also offer a comprehensive set of benefits for employees and their families
  • The address of our Internet website is www exponent com We make available free of charge through our website access to our Annual Reports on Form 10 K Quarterly Reports on Form 10 Q Current Reports on Form 8 K and other periodic and current Securities and Exchange Commission SEC reports along with amendments to all of those reports as soon as reasonably practicable after we file or furnish the reports with the SEC Copies of material filed or furnished by us with the SEC may also be obtained by writing to us at our corporate headquarters Exponent Inc Attention Investor Relations 149 Commonwealth Drive Menlo Park CA 94025 or by calling 650 326 9400 The content of our Internet website is not incorporated into and is not part of this Annual Report on Form 10 K
  • Catherine Ford Corrigan Ph D joined the Company in 1996 She was promoted to Principal in the Biomechanics practice in 2002 and was appointed Group Vice President in May 2012 Dr Corrigan was named President in July 2016 She was named Chief Executive Officer and elected to the Board of Directors in May 2018 Dr Corrigan earned her Ph D 1996 in Medical Engineering and Medical Physics and M S 1992 in Mechanical Engineering from the Massachusetts Institute of Technology and her B S in Bioengineering from the University of Pennsylvania Prior to joining Exponent Dr Corrigan was a researcher in the Orthopedic Biomechanics Laboratory at Beth Israel Hospital and Harvard Medical School On February 9 2021 Dr Corrigan was elected to the National Academy of Engineering
  • Brad A James Ph D joined the Company in 1994 He was promoted to Principal Engineer in 2005 and was appointed Corporate Vice President in 2014 Dr James was appointed Group Vice President on January 4 2020 Dr James received his Ph D 1994 in Metallurgical and Materials Engineering from the Colorado School of Mines and his B S 1988 in Metallurgical Engineering from the University of Washington He is a licensed professional engineer in the states of California and Texas Prior to joining Exponent Dr James was employed as a Research Engineer Materials Performance Division at the Babcock and Wilcox R D Center
  • Brian Kundert joined the Company on July 10 2023 as Vice President Human Resources and was promoted to Chief Human Resources Officer on March 16 2024 Prior to joining Exponent Mr Kundert was most recently the Global Director of Human Resources for the Resilience division at Arcadis a global design and consulting company where he worked for 19 years Mr Kundert holds a B A 1996 in Psychology from the University of California Berkeley
  • John D Pye Ph D joined the Company in 1999 He was promoted to Principal Engineer in 2006 and was appointed Corporate Vice President in 2009 Dr Pye was appointed Group Vice President in January 2014 and was appointed Vice President of Global Offices and Innovation on November 22 2024 Dr Pye received his Ph D 1999 in Aerospace Engineering from Stanford University M S 1993 in Aerospace Engineering from Stanford University and B A Sc 1992 in Engineering Science from the University of Toronto Canada He is a Registered Professional Mechanical Engineer in the State of California Prior to joining Exponent Dr Pye held a research position in the Aerospace Fluid Mechanics Lab at Stanford University where he was responsible for the renovation and redesign of the Stanford Low Speed wind tunnel as well as managing the Stanford experimental facilities for the Stanford NASA Ames Joint Institute for Aeronautics and Astronautics
  • Joseph Rakow Ph D joined the Company in 2005 He was promoted to Principal Engineer in 2012 and was appointed Corporate Vice President in 2021 Dr Rakow was appointed Group Vice President on April 1 2023 Dr Rakow received his Ph D 2005 in Aerospace Engineering and M S 2000 in Aerospace Engineering from the University of Michigan and B S 1999 in Physics from the University of California Davis He is a licensed professional engineer in the state of California and a Fellow of the American Society of Mechanical Engineers Prior to joining Exponent Dr Rakow held teaching and research positions at the University of Michigan and Sandia National Laboratories As a volunteer Dr Rakow serves on multiple academic advisory boards at the university level and is a Structures Specialist with FEMA Urban Search Rescue
  • Richard Reiss Sc D joined the Company in 2006 as a Principal Scientist He was promoted to Group Vice President in January 2015 Dr Reiss earned his Sc D 1994 in Environmental Health from the Harvard University School of Public Health M S 1991 in Environmental Engineering from Northwestern University and B S 1989 in Chemical Engineering from the University of California Santa Barbara Prior to joining Exponent he was a Vice President with Sciences International Dr Reiss is a Fellow of the Society of Risk Analysis
  • Maureen T F Reitman Sc D joined the Company in 2002 She was promoted to Principal Engineer in 2006 and was appointed Corporate Vice President in 2014 Dr Reitman was appointed Group Vice President on January 4 2020 Dr Reitman received her Sc D 1993 in Materials Science and Engineering from the Massachusetts Institute of Technology and her B S 1990 in Materials Science and Engineering from the Massachusetts Institute of Technology She is a registered Professional Mechanical Engineer in the state of Maryland and a fellow of the Society of Plastics Engineers Prior to joining Exponent Dr Reitman worked for the 3M Company in both research and management roles Her activities at 3M included technology identification materials selection and qualification product development customer support program management acquisition integration intellectual property analysis and patent litigation support On February 6 2024 Dr Reitman was elected to the National Academy of Engineering
  • Joseph Sala Ph D joined the Company in 2005 He was promoted to Principal Scientist in 2012 and was appointed Corporate Vice President in 2019 Dr Sala was appointed Group Vice President on November 22 2024 Dr Sala received his Ph D 2004 in Psychology and M A 2001 in Psychology and Brain Sciences from John Hopkins University and B A 1998 in Psychology and B S 1998 in Administration of Justice from Rutgers University Prior to joining Exponent Dr Sala was a post doctoral fellow at Stanford University where he focused his research on the cognitive neuroscience of human information processing the brain mechanisms underlying learning memory vision and cognitive control and their behavioral manifestations
  • Richard L Schlenker Jr joined the Company in 1990 Mr Schlenker is the Executive Vice President Chief Financial Officer and Corporate Secretary of the Company He was appointed Executive Vice President in April 2010 Chief Financial Officer in July 1999 and Secretary of the Company in November 1997 Mr Schlenker was the Director of Human Resources from 1998 until his appointment as Chief Financial Officer He was the Manager of Corporate Development from 1996 until 1998 From 1993 to 1996 Mr Schlenker was a Business Manager where he managed the business activities for multiple consulting practices within the Company Prior to 1993 he held several different positions in finance and accounting within the Company Mr Schlenker holds a B S in Finance from the University of Southern California
  • Exponent operates in a rapidly changing environment that involves a number of uncertainties some of which are beyond our control and may have a material adverse effect on our financial condition and results of operations These uncertainties include but are not limited to those mentioned elsewhere in this report and those set forth below Although the risks are organized by headings and each risk is discussed separately many are interrelated
  • Revenues are primarily derived from services provided in response to client requests or events that occur without notice and engagements generally billed as services are performed are terminable or subject to postponement or delay at any time by clients As a result backlog at any particular time is small in relation to our quarterly or annual revenues and is not a reliable indicator of revenues for any future periods Revenues and operating margins for any particular quarter are generally affected by staffing mix resource requirements and timing and size of engagements
  • Our expected future growth presents numerous managerial administrative operational and other challenges Our ability to manage the growth of our operations will require us to continue to improve our information systems and other internal systems and controls In addition our growth will increase our need to attract develop motivate and retain both our management and professional employees The inability to effectively manage growth or the inability of our employees to achieve anticipated performance could have a material adverse effect on our business
  • If a client s financial difficulties become severe the client may be unwilling or unable to pay our invoices in the ordinary course of business which could adversely affect collections of both our accounts receivable and unbilled services To the extent there is global economic volatility or an increase in the cost of capital there could be an adverse impact on the ability of our customers to pay for our services On occasion some of our clients have entered bankruptcy which has prevented us from collecting amounts owed to us The bankruptcy of a client with substantial accounts receivable could have a material adverse effect on our financial condition and results of operations
  • The professional reputation of Exponent and its consultants is critical to our ability to successfully compete for new client engagements and attract or retain professionals Proven or unproven allegations against us may damage our professional reputation Any factors that damage our professional reputation could have a material adverse effect on our business
  • Public concern over health safety and preservation of the environment has resulted in the enactment of a broad range of environmental and or other laws and regulations by local state and federal lawmakers and agencies These laws and the implementation of new regulations affect nearly every industry as well as the agencies of federal state and local governments charged with their enforcement To the extent deregulation and changes in such laws regulations and enforcement or other factors significantly reduce the exposures of manufacturers owners service providers and others to liability the demand for our services may be significantly reduced
  • We provide litigation support consulting and other services primarily in connection with significant disputes or other matters that are usually adversarial or that involve sensitive client information The nature of our consulting services has and will continue to preclude us from accepting engagements with other potential clients because of conflicts Accordingly the nature of our business limits the number of both potential clients and potential engagements
  • We work for various United States and foreign governmental entities and agencies Government contracts entail among other things the obligation to comply with numerous regulations and requirements that may not otherwise apply to us Government entities reserve the right to audit our contracts and conduct inquiries and investigations of our business practices with respect to government contracts Findings from an audit may result in fees being refunded to the government or prospective adjustment to previously agreed upon rates that will affect future margins If a government client discovers improper or illegal activities in the course of audits or investigations we may become subject to various civil and criminal penalties and administrative sanctions which may include termination of contracts forfeiture of profits suspension of payments fines and suspensions or debarment from doing business with other agencies of the government The inherent limitations of internal controls may not prevent or detect all improper or illegal activities regardless of the adequacy of such controls Government contracts and the proceedings surrounding them are often subject to more extensive scrutiny and publicity than other commercial contracts Negative publicity related to our government contracts regardless of whether it is accurate may further damage our business by affecting our ability to compete for new contracts
  • Many of our engagements center on disputes litigation and other event driven occurrences that require independent analysis or expert services Litigation may be settled or dismissed and disputes may be resolved in each case with little or no prior notice to us Under many of our contracts including our government contracts the client generally has the right not to exercise options to extend or expand our contracts and may otherwise terminate cancel modify or curtail our contracts at its convenience Our engagements can therefore terminate suddenly and without advance notice to us If an engagement is terminated unexpectedly our employees working on the engagement could be underutilized until we assign them to other projects In addition because much of our work is project based rather than recurring in nature our employees utilization depends on our ability to secure additional engagements on a continual basis Any decision by the client not to exercise contract options or to terminate cancel modify or curtail our projects would adversely affect our revenues revenue growth and profitability
  • Our business involves the delivery of professional services and is labor intensive Our success depends in large part upon our ability to attract retain and motivate highly qualified technical and managerial personnel Qualified personnel are in great demand and are likely to remain a limited resource for the foreseeable future We cannot provide any assurance that we can continue to attract sufficient numbers of highly qualified technical and managerial personnel and retain existing employees We have experienced and expect to continue to experience employee turnover The loss of key managerial employees business generators or any significant number of employees could have a material adverse impact on our business including our ability to secure and complete engagements We rely heavily on our executive officers group vice presidents and practice office directors to manage our operations Given the highly specialized nature of our services and the scale of our operations our executive officers group vice presidents and practice office directors must have a thorough understanding of our services and operations as well as the skills and experience necessary to manage a large organization in diverse geographic locations We are unable to predict with certainty the impact that leadership transitions and the loss of certain employees in leadership roles may have on our business operations prospects financial results client relationships or employee retention or morale
  • Our services typically involve difficult engineering and scientific assignments and carry risks of professional and other liability Many of our engagements involve matters that could have a severe impact on a client s business cause a client to lose significant amounts of money or prevent a client from pursuing desirable business opportunities Accordingly if a client is dissatisfied with our performance the client could threaten or bring litigation in order to recover damages or to contest its obligation to pay our fees Litigation alleging that we performed negligently disclosed client confidential information lost or damaged evidence infringed on patents were forced to withdraw from a legal matter due to a conflict or otherwise breached our obligations to a client could expose us to significant liabilities to our clients or other third parties or tarnish our reputation
  • Although we seek to avoid litigation whenever possible from time to time we are party to various lawsuits and claims Disputes may arise for example from employment issues regulatory actions business acquisitions and real estate and other commercial transactions There can be no assurances that any lawsuits or claims will be immaterial in the future Any material lawsuits or claims could adversely affect our business and reputation
  • We have experienced and expect to continue to be subjected to security breaches and threats none of which have been material to us to date Despite the implementation of security and business continuity measures our information technology infrastructure and networks are vulnerable to electronic breaches of security Furthermore we are subject to risks to information security posed by external or insider threats including unauthorized access manipulation misuse or improper disclosure of proprietary sensitive or confidential information by employees contractors or other insiders Any such breaches could lead to disruptions of our operations and potential unauthorized disclosure of confidential and or personal information which could result in legal claims or proceedings have impacts to our operations and or cause harm to our reputation Our systems and data are protected by a comprehensive Information Security program detailed in our Information Security Management System Dedicated security privacy information governance and compliance professionals maintain the program with oversight provided by the Board of Directors in conjunction with senior leadership See Item 1C for more information about our Cybersecurity Risk Management and Strategy While we have taken reasonable steps to prevent and mitigate the damage of a security breach by continuously improving our design and coordination of security controls across our business those steps may not be effective and there can be no assurance that any such steps can be effective against all possible risks
  • We manage utilize and store sensitive or confidential client and employee data including personal data and protected health information As a result we are subject to numerous laws and regulations designed to protect this information such as the U S federal and state laws governing the protection of health or other personally identifiable information including the Health Insurance Portability and Accountability Act and international laws such as the European Union General Data Protection Regulation and the People s Republic of China s Data Security Law In addition many states U S federal governmental authorities and non U S jurisdictions have adopted proposed or are considering adopting or proposing additional data security and or data privacy statutes or regulations For instance we may be subject to Federal Trade Commission FTC enforcement actions if the FTC has reason to believe we have engaged in unfair or deceptive privacy or data security practices in violation of the FTC Act In addition an increasing number of U S states have enacted U S state privacy laws that set forth comprehensive privacy and security obligations regarding the collection and processing of personal data including such as the California Consumer Privacy Act as amended by the California Privacy Rights Act and other state laws that set forth comprehensive privacy and security obligations regarding the collection and processing of personal data These laws and regulations are increasing in complexity and number As a result of these legal and regulatory requirements we incur and expect to continue to incur significant ongoing costs as part of our efforts to comply with applicable law Failure to comply with these laws and regulations may lead to significant monetary damages regulatory enforcement actions fines penalties or other regulatory liabilities such as orders or consent decrees forcing us to modify business practices and reputational damage or third party lawsuits for any noncompliance with such laws If any person including any of our employees negligently disregards or intentionally breaches our established controls with respect to client or employee data or otherwise mismanages or misappropriates that data we could also be subject to significant monetary damages regulatory enforcement actions fines and or criminal prosecution In addition unauthorized disclosure of sensitive or confidential client or employee data whether through systems failure employee negligence fraud or misappropriation could damage our reputation and cause us to lose clients and their related revenue in the future
  • In addition to our offices in the United States we have a presence in the United Kingdom Switzerland Hong Kong China Singapore Ireland and Germany and conduct business in several other countries We expect to continue to expand globally and our international revenues may account for an increasing portion of our revenues in the future Our international operations carry special financial business and legal risks including cultural and language differences employment laws and related factors that could result in lower utilization higher staffing costs and cyclical fluctuations of utilization and revenues currency fluctuations that adversely affect our financial position and operating results burdensome regulatory requirements and other barriers to conducting business tariffs trade disputes and other trade barriers geopolitical risks that could result in an adverse impact to our clients and Exponent such as cyberattacks trade sanctions and increased regulatory scrutiny on operations armed conflicts and wars including the Russia Ukraine war and the conflicts in the Middle East managing the risks associated with engagements with foreign officials and governmental agencies including the risks arising from the United States Foreign Corrupt Practices Act and the United Kingdom Bribery Act of 2010 managing the risks associated with global privacy and data security laws and regulations including the General Data Protection Regulation in Europe and China s data protection and national security laws greater difficulties in managing and staffing foreign operations successful entry and execution in new markets restrictions on the repatriation of earnings potentially adverse tax consequences and other impending legislation that could add additional risks to the business
  • Employee or contractor misconduct or our failure to comply with governmental regulatory and legal requirements or with our company wide Code of Business Conduct and Ethics and related policies could lead to governmental or legal proceedings that could expose us to significant liabilities and damage our reputation
  • Misconduct fraud non compliance with applicable laws and regulations or other improper activities by one of our employees agents or partners could have a significant negative impact on our business and reputation Such misconduct could include the failure to comply with government procurement regulations regulations regarding the protection of classified information regulations prohibiting bribery and other foreign corrupt practices regulations regarding the pricing of labor and other costs in government contracts regulations on lobbying or similar activities regulations pertaining to the internal controls over financial reporting environmental laws and any other applicable
  • laws or regulations Our Code of Business Conduct and Ethics and related policies mandate compliance with applicable laws including anti bribery and insider trading Nonetheless we cannot assure that our policies procedures and related training programs will ensure full compliance with all applicable legal requirements Illegal or improper conduct by our executive officers directors employees independent consultants or contractors or others who are subject to our policies and procedures could damage our reputation in the U S and internationally which could adversely affect our existing client relationships or adversely affect our ability to attract and retain new clients or lead to litigation or governmental or regulatory proceedings in the U S or foreign jurisdictions or could subject us to fines and penalties loss of security clearances and suspension or debarment from contracting any or all of which could harm our reputation reduce our revenue and profits and subject us to criminal and civil enforcement actions
  • To the extent we export technical services data and information outside of the locations where we operate we are subject to U S and international laws and regulations governing international trade and exports including but not limited to the International Traffic in Arms Regulations the Export Administration Regulations and trade sanctions against embargoed countries An increase in government use of export controls and sanctions lists could affect both our client engagements and our operations A failure to comply with these laws and regulations could result in civil or criminal sanctions including the imposition of fines the denial of export privileges and suspension or debarment from participation in U S government contracts which could have a material adverse effect on our business
  • Our business depends on our ability to use and access information systems and modernize or replace such systems from time to time and failure to effectively maintain such systems or modernize or replace systems or difficulties encountered in implementing new or replacement systems could materially adversely affect our business and operations and harm our reputation
  • We depend on multiple internal and external information systems for operating our business We utilize commercially available third party technology solutions which in many cases are customized to our business needs Our information systems may be compromised by power outages computer and telecommunications failures computer viruses security breaches hackers catastrophic events human error and other events many of which are beyond our control and are subject to obsolescence and technological changes If our information systems fail to work properly or otherwise become unavailable or if we encounter difficulties in integrating new or replacement systems we may incur substantial time efforts and costs to repair or replace such systems or otherwise carry out our operations without the ability to use such systems Failure of any such information system could result in delays significant additional costs incorrect information failure of internal control and harm to our reputation as well as expose us to regulatory actions and claims any of which could adversely affect our business and results of operations and our reputation
  • Increases in compensation and related expenses other operating expenses general and administrative expenses and tax expenses due to inflation supply chain disruptions labor market conditions real estate market conditions geographic conditions regulatory requirements or other economic or political factors may adversely affect our profitability and margins Increases in compensation and related expenses that exceed our bill rate increases increases in rent when our operating leases expire increases in compliance costs associated with new regulations and increases in tax rates would adversely affect our profitability
  • The markets for our services are highly competitive In addition there are relatively low barriers to entry into our markets and we have faced and expect to continue to face additional competition from new entrants into our markets Competitive pressure could reduce the market acceptance of our services and result in limitations in our ability to
  • Our cash equivalent portfolio as of January 3 2025 consisted primarily of obligations of the U S Treasury We follow an established investment policy to monitor manage and limit our exposure to interest rate and credit risk The policy sets forth credit quality standards and limits our exposure to any one issuer as well as our maximum exposure to various asset classes
  • Investments in some financial instruments may pose risks arising from liquidity and credit concerns As of January 3 2025 we had no impairment charge associated with our investment portfolio relating to such adverse financial market conditions Although we believe our current investment portfolio has a low risk of impairment we cannot predict future market conditions or market liquidity and can provide no assurance that our investment portfolio will remain unimpaired
  • On our balance sheet as of January 3 2025 we have 8 607 000 of goodwill subject to periodic evaluation for impairment Failure to achieve sufficient levels of cash flow at reporting units the loss of key employees changes to the scope of operations of our business or a significant and sustained decline in our stock price could result in goodwill impairment charges During times of financial market volatility significant judgment is required to determine the underlying cause of the decline and whether stock price declines are short term in nature or indicative of an event or change in circumstances
  • Our long lived assets including our office laboratory and warehouse space in Menlo Park California our Test and Engineering Center in Phoenix Arizona and our office and laboratory facilities in Natick Massachusetts are subject to periodic testing for impairment Failure to achieve sufficient levels of cash flow at the asset group level could result in impairment of our long lived assets In addition we have operating lease right of use assets for office and laboratory space which are also subject to impairment Changes in the business environment could lead to changes in the scope of operations of our business These changes including the closure of one or more offices could result in restructuring and or asset impairment charges
  • We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America GAAP These principles are subject to interpretation by the SEC and various bodies formed to interpret and create appropriate accounting principles A change in these principles can have a significant effect on our reported results and may even retroactively affect previously reported transactions Additionally the adoption of new or revised accounting principles may require that we make significant changes to our systems processes and controls
  • We are subject to risks arising from adverse changes in economic and political conditions both domestically and globally including regulatory uncertainty and unfavorable changes in economic conditions such as inflation rising interest rates or a recession and other events beyond our control such as geopolitical developments economic sanctions natural disasters pandemics epidemics political instability armed conflicts and wars including the Russia Ukraine war and the conflict in the Middle East Worsening economic conditions have had and may continue to have an adverse impact on the businesses and financial health of many of our clients As a result current or potential clients may consolidate or go out of business and thus demand for our services may be reduced significantly Political
  • changes and trends such as populism protectionism economic nationalism and sentiment toward multinational companies as well as tariffs export controls restrictions on outbound investment or other trade barriers sanctions currency controls or changes to tax or other laws or policies have been and may continue to be disruptive to our business These can interfere with our global operating model client relationships and competitive position Further escalation of any specific trade tensions between the U S and China or in global trade conflict more broadly could be harmful to global economic growth or to our business in China or other countries
  • Variations in our revenues and operating results occur from time to time as a result of a number of factors such as the significance of client engagements commenced and completed during a quarter the timing of engagements the number of working days in a quarter employee hiring and utilization rates Because a high percentage of our expenses particularly personnel and facilities related expenses are relatively fixed in advance of any particular quarter a variation in the timing of the initiation or the completion of our client assignments can cause significant variations in operating results from quarter to quarter
  • Many factors could cause the market price of our common stock to rise and fall These include the risk factors listed above and below changes in estimates of our performance or recommendations by securities analysts future sales of shares of common stock in the public market market conditions in the industry and economy as a whole acquisitions or strategic alliances involving us or our competitors restatement of financial results and changes in accounting principles or methods In addition the stock market often experiences significant price fluctuations These fluctuations are often unrelated to the operating performance of particular companies These broad market fluctuations may adversely affect the market price of our common stock When the market price of a company s stock drops significantly shareholders often institute securities class action litigation against that company Any litigation against us could cause us to incur substantial costs divert the time and attention of our management and other resources or otherwise harm our business
  • Our Board of Directors has declared quarterly dividends since March 2013 Our intent to continue to pay quarterly dividends and to repurchase our shares is subject to capital availability and in the case of dividends periodic determinations by our Board of Directors that cash dividends are in the best interest of our stockholders and are in compliance with all laws and agreements applicable to the declaration and payment of cash dividends by us Future dividends and share repurchases may also be affected by among other factors our views on potential future capital requirements for investments including acquisitions legal risks stock repurchase programs changes in federal and state income tax laws or corporate laws contractual restrictions and changes to our business model Our dividend payments and share repurchases may change from time to time and we cannot provide assurance that we will continue to declare dividends or repurchase shares at all or in any particular amounts A reduction or suspension in our dividend payments or share repurchase activity could have a negative effect on our stock price
  • We rely on our network infrastructure and certain third party hosted services to support our operations A disruption or failure of these systems in the event of a major earthquake fire flood tsunami or other weather event power loss telecommunications failure software or hardware malfunctions pandemics cyber attack war terrorist attack or other catastrophic event that our disaster recovery plans do not adequately address could have a material adverse effect on our business financial condition or results of operations
  • We maintain insurance coverage from third party insurers as part of our overall risk management strategy and because some of our contracts require us to maintain specific insurance coverage limits If any of our third party insurers fail suddenly cancel our coverage or otherwise are unable to provide us with adequate insurance coverage then our overall risk exposure and our operational expenses would increase and the management of our business operations would be disrupted In addition there can be no assurance that any of our existing insurance coverage will be renewable upon the expiration of the coverage period or that future coverage will be affordable at the required limits
  • The areas where we conduct business are vulnerable to the effects of climate change For example in California wildfire danger increases the probability of planned power outages which may impact our employees abilities to commute to work and to stay connected Climate related events including the increasing frequency of extreme weather events and their impact on critical infrastructure have the potential to disrupt our business
  • Tax reform remains a legislative priority for the U S government and certain legislations have already been enacted While there is current uncertainty regarding what changes will eventually be enacted such new laws may affect our operating results and financial conditions Changes if any to the U S or non U S taxation of our operations may increase our worldwide effective tax rate result in additional taxes or other costs or have other material consequences which could harm our business revenue cash flows and financial results
  • We recognize the critical importance of cybersecurity and data privacy in safeguarding our operations sensitive data and maintaining the trust of our stakeholders We acknowledge the significance of cybersecurity incidents and threats as potential risks that may impact our operations and information systems We have developed and implemented cybersecurity and data privacy programs in accordance with the requirements of ISO standards 27001 2022 and 27701 2019 which are intended to appropriately preserve the confidentiality integrity and availability of information maintained by our company These programs identify select maintain operate and improve cybersecurity and privacy controls
  • We have implemented processes for assessing identifying and managing material risks from cybersecurity threats These processes are designed to preserve the confidentiality integrity and availability of our information systems and the information residing therein Our cybersecurity incident response plan is based on the NIST 800 61r2 Computer Security Incident Handling Guide This plan is used to process security events identified through our real time 24x7 monitoring and is also used to conduct security incident tabletop exercises The incident response plan includes detailed steps for incident leadership escalation to established partners response protocols based on the type of incident responsibilities for follow up and reporting and steps to capture lessons learned and improvement opportunities Our vulnerability management processes include real time monitoring for vulnerabilities and standardized reporting for managing remediation efforts Our cybersecurity risk management processes are integrated into our overall risk management system to ensure alignment with our business objectives and strategies We engage assessors consultants auditors and other third parties to execute certification audits penetration tests and security framework risk assessments These external entities provide specialized expertise and insights to enhance the effectiveness of our cybersecurity risk management processes
  • We have established processes to oversee and identify cybersecurity risks associated with our use of third party service providers including cloud service providers and AI system We conduct due diligence assessments and evaluate contractual obligations to mitigate potential risks arising from third party relationships
  • Cybersecurity threats including previous incidents have the potential to materially affect our company including our business strategy results of operations and financial condition While we have not experienced material adverse effects from cybersecurity threats to date we recognize the evolving nature of these risks and remain vigilant in our efforts to mitigate potential impacts
  • Our Board of Directors provides oversight of risks from cybersecurity threats The Security and Privacy Management Committee the SPMC consists of our Chief Financial Officer General Counsel Vice President of Information Technology Chief Human Resources Officer Director of Information Security and Director of Environmental Health and Safety The SPMC is tasked with ensuring risks are adequately addressed within our governance framework
  • We maintain a dedicated team of cybersecurity professionals The Director of Information Security the Information Security team the SPMC the Vice President of Information Technology and the Information Technology leadership team are principally responsible for assessing and managing cybersecurity risks for our company These individuals possess relevant expertise in cybersecurity risk management and are equipped to address the evolving nature of cyber threats Our Director of Information Security has over 20 years of cybersecurity experience holds several professional certifications and is an adjunct faculty member teaching courses on information security management and governance Our cybersecurity professionals have a proven track record of executing strategic security objectives across various sectors including utility government healthcare and consulting They bring with them experience in designing implementing and managing information security programs focused on quality performance and compliance
  • Our information security team and our third party security service providers actively monitor the prevention detection mitigation and remediation of cybersecurity incidents ensuring timely response and resolution Processes are in place to inform relevant management positions and committees about emerging threats and incident response
  • Our Test and Engineering Center TEC occupies 147 acres in Phoenix Arizona We lease this land from the State of Arizona under a lease agreement that expires in January 2043 and have an option to renew for one 15 year period We constructed a 21 613 square foot indoor test facility as well as a 44 053 square foot engineering and test preparation building at the TEC
  • Exponent s common stock is traded on the NASDAQ Global Select Market under the symbol EXPO As of February 21 2025 there were 162 holders of record of our common stock Because many of the shares of our common stock are held by brokers and other institutions on behalf of stockholders we believe that there are considerably more beneficial holders of our common stock than record holders
  • This graph compares the Company s cumulative total stockholder return calculated on a dividend reinvested basis from 2020 through 2024 with those of the Standard Poor s S P 500 Index the S P MidCap 400 Index and the S P SmallCap 600 Index The Company does not have a comparable peer group and thus has selected the S P MidCap 400 Index The graph assumes that 100 was invested on the last day of 2019 Note that the historic price performance is not necessarily indicative of future price performance
  • This section of this Annual Report on Form 10 K generally discusses 2024 and 2023 items and year to year comparisons between 2024 and 2023 Discussions of 2023 and year to year comparisons between 2023 and 2022 that are not included in this Annual Report form 10 K can be found in Management s Discussion and Analysis of Financial Condition and Results of Operations in Part II Item 7 of the Company s Annual Report on Form 10 K for the fiscal year ended December 29 2023
  • Exponent is an engineering and scientific consulting firm providing solutions to complex problems Exponent s interdisciplinary organization of scientists physicians engineers and business consultants draws from more than 90 technical disciplines to solve the most pressing and complicated challenges facing stakeholders today The firm leverages over 50 years of experience in analyzing accidents and failures to advise clients as they innovate their technologically complex products and processes ensure the safety and health of their users and address the challenges of sustainability
  • In preparing our consolidated financial statements we make assumptions judgments and estimates that can have a significant impact on our revenue operating income and net income as well as on the value of certain assets and liabilities on our consolidated balance sheet We base our assumptions judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances On a regular basis we evaluate our assumptions judgments and estimates and make changes accordingly We believe that the assumptions judgments and estimates involved in accounting for revenue recognition and estimating the allowance for contract losses and doubtful accounts have the greatest potential impact on our consolidated financial statements so we consider these to be our critical accounting policies We discuss below the assumptions judgments and estimates associated with these policies Historically our assumptions judgments and estimates relative to our critical accounting policies have not differed materially from actual results For further information on our critical accounting policies see Note 1 of our Notes to Consolidated Financial Statements
  • Substantially all of our engagements are service contracts performed under time and material or fixed price billing arrangements For time and material and fixed price service projects revenue is generally recognized as the services are performed For substantially all of our fixed price service engagements we recognize revenue based on the relationship of incurred labor hours at standard rates to our estimate of the total labor hours at standard rates we expect to incur over the term of the contract Our estimate of total labor hours we expect to incur over the term of the contract is based on the nature of the project and our past experience on similar projects We believe this methodology achieves a reliable measure of the revenue from the consulting services we provide to our customers under fixed price contracts
  • Estimating the allowance for contract losses and doubtful accounts We make estimates of our ability to collect accounts receivable and our unbilled but recognized work in process In circumstances where we are aware of a specific customer s inability to meet its financial obligations to us or for disputes with customers that affect our ability to fully collect our accounts receivable and unbilled work in process we record a specific allowance to reduce the net recognized receivable to the amount we reasonably believe will be collected For all other customers we recognize allowances for contract losses and doubtful accounts taking into consideration factors such as historical write offs customer concentration customer creditworthiness current and forecasts of future economic conditions and aging of amounts due
  • Revenues and revenues before reimbursements for 2024 increased 4 as compared to the prior year Our focus on effective resource management drove significant improvement in utilization Demand for our proactive services strengthened during the year driven by the consumer electronics and utilities industries We saw increased activity in user research studies and product development consulting in the consumer electronics sector and strong demand for our risk related work in utilities Growth in reactive services was supported by strong activity in the utilities and medical device industries With increasing global demand for energy and the related investments in infrastructure we are actively involved in failure analysis and dispute related projects around the world Our multidisciplinary team of scientists and engineers continues to provide critical data analyses and insights for our clients
  • Society is raising the bar for safety health sustainability and reliability and clients are increasingly seeking our interdisciplinary proactive solutions As our suite of offerings and key markets expands so does the demand for our multidisciplinary services We continue to expand our client relationships and enhance our reputation and capabilities across the firm As innovation and technology become increasingly complex the critical nature of our insights uniquely positions Exponent to address our clients needs throughout the product lifecycle
  • Net income increased 9 to 109 002 000 during 2024 as compared to 100 339 000 during 2023 Diluted earnings per share increased to 2 11 for 2024 as compared to 1 94 for 2023 The increase in profitability was due to our continued efforts to better align resources with demand Net income and diluted earnings per share for 2024 and 2023 benefited from the excess tax benefit associated with stock based awards The excess tax benefit associated with stock based awards decreased to 2 793 000 during 2024 as compared to 3 620 000 during 2023 The decrease in the excess tax benefit was due to a smaller increase in value of our common stock between the grant date and the release date for the restricted stock units released during 2024 as compared to 2023
  • We remain focused on building our world class engineering and scientific team to position Exponent at the forefront of innovation and meet the ever changing needs of our clients and the market We also remain focused on capitalizing on emerging growth areas managing other operating expenses generating cash from operations maintaining a strong balance sheet and undertaking activities such as share repurchases and dividends to enhance shareholder value
  • We operate on a 52 53 week fiscal year with each year ending on the Friday closest to December 31st Fiscal period 2024 included 53 weeks of activity and ended on January 3 2025 Fiscal period 2023 included 52 weeks of activity and ended on December 29 2023 Fiscal period 2022 included 52 weeks of activity and ended on December 30 2022 Fiscal period 2025 is 52 weeks and will end on January 2 2026
  • Billable hours were 1 495 000 during both 2024 and 2023 Our utilization increased to 73 for 2024 as compared to 69 for 2023 The increase in utilization during 2024 was due to our efforts to align resources with demand Technical full time equivalent employees decreased 8 to 967 for 2024 as compared to 1 047 for 2023
  • The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billing rates and an increase in billable hours Growth in this segment during 2024 was primary driven by demand for our services across the consumer products and utilities industries In the consumer electronics sector we advised clients on projects related to digital health and wearables such as advanced sensors in health applications and engagements in augmented and virtual reality During 2024 billable hours for this segment increased by 1 to 1 199 000 as compared to 1 188 000 during 2023 Utilization for this segment increased to 75 for 2024 as compared to 70 for 2023 due to our continued efforts to align resources with demand Technical full time equivalent employees in this segment decreased 7 to 759 during 2024 as compared to 818 for 2023
  • The decrease in revenues from our Environmental and Health segment was due to a decrease in billable hours partially offset by an increase in billing rates During 2024 billable hours for this segment decreased by 4 to 296 000 as compared to 307 000 during 2023 The decrease in billable hours was related to headwinds in the chemical and life sciences sectors Utilization for this segment increased to 67 for 2024 as compared to 64 for 2023 due to our continued efforts to align resources with demand Technical full time equivalents decreased 9 to 208 during 2024 as compared to 229 for 2023
  • Revenues are primarily derived from services provided in response to client requests or events that occur without notice and engagements are generally terminable or subject to postponement or delay at any time by our clients As a result backlog at any particular time is small in relation to our quarterly or annual revenues and is not a reliable indicator of revenues for any future periods
  • The increase in compensation and related expenses during 2024 was due an increase in payroll expense an increase in bonus expense and an increase in stock based compensation During 2024 payroll expense increased 3 771 000 due to the impact of our annual salary increase partially offset by a decrease in technical full time equivalent employees During 2024 bonus expense increased by 5 096 000 due to a corresponding increase in our bonus pool Stock based compensation increased 1 150 000 during 2024 due to an increase in unvested restricted stock unit grants We expect compensation expense excluding the change in value of deferred compensation plan assets to increase as we selectively add new talent and adjust compensation to market conditions
  • Other operating expenses include facilities related costs technical materials computer related expenses and depreciation and amortization of property equipment and leasehold improvements The increase in other operating expenses was primarily due to an increase in occupancy expense of 3 437 000 an increase in information technology related expenses of 839 000 and an increase in depreciation expense of 773 000 Our land lease with the State of Arizona was extended on June 19 2024 This extension resulted in additional non cash rent expense of approximately 2 316 000 during 2024 The remainder of the increase in occupancy expense was due to investments in our office and laboratory facilities The increases in depreciation and information technology related expenses were due to continued investment in our corporate infrastructure We expect other operating expenses to grow as we selectively add new talent and continue to make investments in our corporate infrastructure
  • The decrease in general and administrative expenses during 2024 was primarily due to a decrease in outside consulting expenses of 1 304 000 a decrease in travel and meals of 844 000 and a decrease in personnel expenses of 673 000 Outside consulting decreased primarily due to activity associated with content creation for our external website during 2023 The decrease in travel and meals was due to the decrease in technical full time equivalent employees and a firm wide principals meeting which was held in 2023 We did not have any firm wide meetings during 2024 The decrease in personnel expenses was due to lower relocation and recruiting costs We expect general and administrative expenses to increase as we expand our business development and staff development initiatives
  • The increase in operating income for our Engineering and Other Scientific segment during 2024 as compared to 2023 was due to an increase in revenues and an increase in utilization The increase in revenues was due to an increase in billing rates and an increase in billable hours driven by demand for our services across the consumer products and utilities industries The increase in utilization was due to our efforts to align resources with demand The increase in operating income for our Environmental and Health segment was due to an increase in utilization due to our efforts to align resources with demand
  • Certain operating expenses are excluded from our measure of segment operating income These expenses include the costs associated with our human resources finance information technology corporate and business development groups the deferred compensation expense benefit due to the change in value of assets associated with our deferred compensation plan stock based compensation associated with restricted stock unit and stock option awards and the change in our allowance for contract losses and doubtful accounts The increase in corporate operating expenses was due to an increase in stock based compensation and an increase in the provision for contract losses and doubtful accounts
  • Other income net consists primarily of changes in the value of assets associated with our deferred compensation plan interest income earned on available cash cash equivalents and short term investments and rental income from leasing space in our Silicon Valley and Natick facilities The increase in other income net was primarily due to an increase in interest income of 2 851 000 due to an increase in cash and cash equivalents
  • The excess tax benefit associated with stock based awards decreased to 2 793 000 during 2024 as compared to 3 620 000 during 2023 The decrease in the excess tax benefit was due to a smaller increase in the value of our common stock between the grant date and the release date for the restricted stock units released in 2024 as compared to restricted stock units released in 2023 Excluding the impact of the excess tax benefit the effective tax rate would have been 27 9 and 28 8 for 2024 and 2023 respectively The decrease in our effective tax rate excluding the
  • We financed our business in 2024 through available cash and cash flows from operating activities We invest our excess cash in cash equivalents As of January 3 2025 our cash and cash equivalents were 258 901 000 as compared to 187 150 000 at December 29 2023 We believe our existing balances of cash and cash equivalents will be sufficient to satisfy our working capital needs capital expenditures outstanding commitments stock repurchases dividends and other liquidity requirements over at least the next 12 months
  • Generally our net cash provided by operating activities is used to fund our day to day operating activities First quarter operating cash requirements are generally higher due to payment in the first quarter of our annual bonuses accrued during the prior year Our largest source of operating cash flows is collections from our clients Our primary uses of cash from operating activities are for employee related expenditures leased facilities taxes and general operating expenses
  • The decrease in net cash used in financing activities during 2024 as compared to 2023 was primarily due to a decrease in repurchases of our common stock a reduction in payroll taxes for restricted stock units and an increase in exercise of stock based payment awards partially offset by an increase in dividends
  • We lease office laboratory and storage space in 13 states and the District of Columbia as well as in China Germany Hong Kong Ireland Singapore Switzerland and the United Kingdom under non cancellable operating lease arrangements that expire at various dates through 2033 On June 19 2024 we entered into an agreement with the State of Arizona to extend our land lease for 15 years beginning on January 17 2028 We are currently obligated to make payments under the lease of 1 009 000 per year which obligation will continue at that level until January 16 2028 Beginning on January 17 2028 our payments under the lease will increase to approximately 6 183 000 per year for the 15 year extension term with adjustments to the annual rent payment in 2033 and 2038 based on the consumer price index As a result of this extension we added an additional right of use asset in exchange for an operating lease liability of 48 683 000 during the second quarter of 2024 As of January 3 2025 the value of our obligations under operating leases was 81 477 000 See Note 12 of our Notes to Consolidated Financial Statements for additional information regarding our lease obligations The value of our non cancellable unconditional purchase obligations was not material at January 3 2025
  • We expect to continue our investing activities including capital expenditures Furthermore cash reserves may be used to repurchase common stock under our stock repurchase programs pay dividends procure facilities and equipment or strategically acquire professional service firms that are complementary to our business
  • We maintain nonqualified deferred compensation plans for the benefit of a select group of highly compensated employees Vested amounts due under the plans of 112 646 000 were recorded as a long term liability on our consolidated balance sheet at January 3 2025 Vested amounts due under the plans of 14 976 000 were recorded as a current liability on our consolidated balance sheet at January 3 2025 Company assets that are designated to fund the benefits under the plans are held in a rabbi trust and are subject to the claims of our creditors As of January 3 2025 invested amounts under the plans of 110 259 000 were recorded as a non current asset on our consolidated
  • As permitted under Delaware law we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity The indemnification period covers all pertinent events and occurrences during the officer s or director s lifetime The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited however we have director and officer insurance coverage that reduces our exposure and enables us to recover a portion of any future amounts paid We believe the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal
  • Regulation G conditions for use of Non Generally Accepted Accounting Principles Non GAAP financial measures and other SEC regulations define and prescribe the conditions for use of certain Non GAAP financial information Generally a Non GAAP financial measure is a numerical measure of a company s performance financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP We closely monitor two financial measures EBITDA and EBITDAS which meet the definition of Non GAAP financial measures We define EBITDA as net income before income taxes interest income depreciation and amortization We define EBITDAS as EBITDA before stock based compensation We regard EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income net income and other GAAP financial performance measures Additionally management believes that EBITDA and EBITDAS provide meaningful comparisons of past present and future operating results These measures are used to evaluate our financial results develop budgets and determine employee compensation These measures however should be considered in addition to and not as a substitute or superior to operating income cash flows or other measures of financial performance prepared in accordance with GAAP A reconciliation of the Non GAAP measures to the nearest comparable GAAP measure is set forth below
  • The increase in EBITDA as a percentage of revenues before reimbursements during 2024 as compared to 2023 was primarily due to the increase in utilization and a decrease in general and administrative expenses partially offset by an increase in other operating expenses Our utilization increased to 73 during 2024 as compared to 69 during 2023 The increase in utilization was due to demand for proactive services in the consumer electronics and utilities
  • Exponent is exposed to interest rate risk associated with our balances of cash and cash equivalents We manage our interest rate risk by maintaining an investment portfolio primarily consisting of debt instruments with high credit quality and relatively short average effective maturities in accordance with the Company s investment policy The maximum effective maturity of any issue in our portfolio of cash equivalents and short term investments is three years and the maximum average effective maturity of the portfolio cannot exceed 12 months
  • If interest rates were to instantaneously increase or decrease by 100 basis points the change in the fair value of our portfolio of cash equivalents would not have a material impact on our financial statements We do not use derivative financial instruments in our investment portfolio Notwithstanding our efforts to manage interest rate risk there can be no assurances that we will be adequately protected against the risks associated with interest rate fluctuations
  • We have foreign currency risk related to our revenues and expenses denominated in currencies other than the U S dollar primarily the British Pound the Hong Kong Dollar the Chinese Yuan and the Singapore Dollar Accordingly changes in exchange rates may negatively affect the revenues and net income of our foreign subsidiaries as expressed in U S dollars
  • At January 3 2025 we had net assets of approximately 24 2 million with a functional currency of the British Pound net assets of approximately 3 5 million with a functional currency of the Hong Kong Dollar net assets of approximately 2 3 million with a functional currency of the Chinese Yuan and net assets of approximately 1 2 million with a functional currency of the Singapore Dollar associated with our operations in the United Kingdom Hong Kong China and Singapore respectively
  • We also have foreign currency risk related to foreign currency transactions and monetary assets and liabilities denominated in currencies that are not the functional currency We have experienced and will continue to experience fluctuations in our net income as a result of gains losses on these foreign currency transactions and the re measurement of monetary assets and liabilities At January 3 2025 we had net assets denominated in the non functional currency of approximately 13 4 million
  • We do not use foreign exchange contracts to hedge any foreign currency exposures To date the impacts of foreign currency exchange rate changes on our consolidated revenues and consolidated net income have not been material However our continued international expansion increases our exposure to exchange rate fluctuations and as a result such fluctuations could have a significant impact on our future results of operations
  • Under the supervision and with the participation of our management including our principal executive officer and principal financial officer we conducted an evaluation of our disclosure controls and procedures as such term is defined under Rule 13 a 15 e promulgated under the Securities Exchange Act of 1934 as amended the Exchange Act Based on this evaluation our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Annual Report on Form 10 K
  • Our management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a 15 f Our internal control over financial reporting is designed to provide reasonable assurance but not absolute assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U S generally accepted accounting principles There are inherent limitations to the effectiveness of any system of internal control over financial reporting These limitations include the possibility of human error the circumvention or overriding of the system and reasonable resource constraints Because of its inherent limitations our internal control over financial reporting may not prevent or detect misstatements Also projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate Under the supervision and with the participation of our management including our principal executive officer and principal financial officer we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control Integrated Framework 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission Based on our evaluation under the framework in Internal Control Integrated Framework 2013 our management concluded that our internal control over financial reporting was effective at the reasonable assurance level as of January 3 2025
  • There have not been any changes in the Company s internal control over financial reporting as such term is defined in Rule 13a 15 f under the Exchange Act during the most recent fiscal quarter that have materially affected or are reasonably likely to materially affect the Company s internal control over financial reporting
  • Certain information required by Part III is omitted from this Annual Report on Form 10 K We intend to file a definitive Proxy Statement pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10 K and certain information included therein is incorporated herein by reference
  • We have audited the accompanying consolidated balance sheets of Exponent Inc and subsidiaries the Company as of January 3 2025 and December 29 2023 the related consolidated statements of income comprehensive income stockholders equity and cash flows for each of the fiscal years in the three year period ended January 3 2025 and the related notes and financial statement schedule II collectively the consolidated financial statements We also have audited the Company s internal control over financial reporting as of January 3 2025 based on criteria established in Internal Control Integrated Framework 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission
  • In our opinion the consolidated financial statements referred to above present fairly in all material respects the financial position of the Company as of January 3 2025 and December 29 2023 and the results of its operations and its cash flows for each of the fiscal years in the three year period ended January 3 2025 in conformity with U S generally accepted accounting principles Also in our opinion the Company maintained in all material respects effective internal control over financial reporting as of January 3 2025 based on criteria established in Internal Control Integrated Framework 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission
  • The Company s management is responsible for these consolidated financial statements for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management s Report on Internal Control Over Financial Reporting Our responsibility is to express an opinion on the Company s consolidated financial statements and an opinion on the Company s internal control over financial reporting based on our audits We are a public accounting firm registered with the Public Company Accounting Oversight Board United States PCAOB and are required to be independent with respect to the Company in accordance with the U S federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB
  • We conducted our audits in accordance with the standards of the PCAOB Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement whether due to error or fraud and whether effective internal control over financial reporting was maintained in all material respects
  • Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements whether due to error or fraud and performing procedures that respond to those risks Such procedures included examining on a test basis evidence regarding the amounts and disclosures in the consolidated financial statements Our audits also included evaluating the accounting principles used and significant estimates made by management as well as evaluating the overall presentation of the consolidated financial statements Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk Our audits also included performing such other procedures as we considered necessary in the circumstances We believe that our audits provide a reasonable basis for our opinions
  • A company s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles A company s internal control over financial reporting includes those policies and procedures that 1 pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company 2 provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
  • with generally accepted accounting principles and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company and 3 provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company s assets that could have a material effect on the financial statements
  • Because of its inherent limitations internal control over financial reporting may not prevent or detect misstatements Also projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate
  • The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that 1 relates to accounts or disclosures that are material to the consolidated financial statements and 2 involved our especially challenging subjective or complex judgments The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements taken as a whole and we are not by communicating the critical audit matter below providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates
  • As discussed in Notes 1 and 6 to the consolidated financial statements the Company s allowance for contract losses and doubtful accounts was 6 1 million as of January 3 2025 The Company s accounts receivable net was 161 4 million as of January 3 2025 which represents 21 of total assets and 29 of revenue for the year ended January 3 2025 As discussed in Note 1 the Company maintains allowances to estimate their ability to collect financial obligations from customers The Company records a specific allowance in circumstances where the Company is aware of a specific customer s inability to meet its financial obligations
  • We identified the assessment of the collectibility of accounts receivable as a critical audit matter Specifically the specific allowance is an estimate which involves assessing the likelihood of collection of a customer s accounts receivable by considering various factors such as communications from the customer historical collections and number of days accounts receivables have been outstanding Subjective auditor judgment was involved in evaluating the relevance and reliability of the evidence obtained in evaluating these factors
  • The following are the primary procedures we performed to address this critical audit matter We evaluated the design and tested the operating effectiveness of certain internal controls related to the critical audit matter This included controls related to the Company s assessment of the specific allowance We investigated significant fluctuations in the specific allowance as compared to gross accounts receivable and the prior year specific allowance For a selection of customer invoices and projects we inquired of Company personnel to evaluate the rationale for establishing a specific allowance for certain customers and assessed the Company s estimate of the specific customer allowance by evaluating the underlying contractual documents historical collection trends communications with customers number of days accounts receivable have been outstanding and other additional factors We also evaluated subsequent collections occurring after the balance sheet date for the selected customer invoices and projects and considered the impact of potential subsequent events on the estimate of the specific customer allowance
  • Exponent Inc together with its subsidiaries collectively referred to as the Company is a science and engineering consulting firm that provides solutions to complex problems The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries All intercompany transactions and balances have been eliminated in consolidation
  • The Company operates on a 52 53 week fiscal year with each year ending on the Friday closest to December 31st Fiscal period 2024 included 53 weeks of activity and ended on January 3 2025 Fiscal period 2023 included 52 weeks of activity and ended on December 29 2023 Fiscal period 2022 included 52 weeks of activity and ended on December 30 2022 Fiscal period 2025 is 52 weeks and will end on January 2 2026
  • The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period Estimates are used for but not limited to revenue recognition allowance for contract losses and doubtful accounts stock based compensation income taxes goodwill the useful life of property equipment and leasehold improvements and operating lease liabilities Actual results could differ from those estimates
  • The Company translates the assets and liabilities of foreign subsidiaries whose functional currency is the local currency at exchange rates in effect at the balance sheet date Revenues and expenses are translated at the average rates of exchange prevailing during the year The adjustment resulting from translating the financial statements of such foreign subsidiaries is included in accumulated other comprehensive income loss which is reflected as a separate component of stockholders equity
  • The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations or for disputes that affect the Company s ability to fully collect amounts due In circumstances where the Company is aware of a specific customer s inability to meet its financial obligations or is aware of a dispute with a specific customer a specific allowance is recorded to reduce the net recognized receivable to the amount the Company reasonably believes will be collected For all other customers the Company recognizes allowances for doubtful accounts based upon historical write offs customer concentration customer creditworthiness current and forecasts of future economic conditions aging of amounts due and changes in customer payment terms
  • Property equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization Depreciation and amortization are recognized using the straight line method Buildings are depreciated over their estimated useful lives ranging from 30 to 40 years Equipment is depreciated over its estimated useful life which generally ranges from 3 to 7 years Leasehold improvements are amortized over the shorter of their estimated useful lives generally 7 years or the term of the related lease
  • The Company evaluates long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future undiscounted cash flows to be generated by the asset If such assets are considered to be impaired the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets The Company has not recognized impairment losses on any long lived assets in 2024 2023 or 2022
  • The Company assesses the impairment of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may be impaired The Company s annual goodwill impairment review is completed during the fourth quarter of each year The Company evaluates goodwill for each reporting unit for impairment by assessing qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test The Company considers events and circumstances including but not limited to macroeconomic conditions industry and market considerations cost factors overall financial performance changes in management or key personnel changes in strategy changes in customers a change in the composition or carrying amount of a reporting unit s net assets and changes in the price of its common stock If after assessing the totality of events or circumstances the Company determines that it is more likely than not that the fair value of a reporting unit is greater than its carrying amount then the quantitative goodwill impairment test is not performed
  • The Company completed its annual assessment for all reporting units with goodwill for 2024 and determined after assessing the totality of the qualitative factors that it is more likely than not that the fair value of each reporting unit is greater than its respective carrying amount Accordingly there was no indication of impairment of goodwill for any of the Company s reporting units and the quantitative goodwill impairment test was not performed The Company did not recognize any goodwill impairment losses in 2024 2023 or 2022
  • Income taxes are accounted for under the asset and liability method Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax basis and the financial reporting basis of assets and liabilities Deferred tax assets and liabilities are measured using the enacted tax rates and laws in effect when the differences are expected to reverse The effect on deferred tax assets and liabilities from changes in tax rates is recognized in income in the period that includes the enactment date A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized An uncertain tax position is recognized if it is determined that it is more likely than not to be sustained upon examination The tax position is measured as the largest amount of benefit that is greater than 50 likely of being realized upon ultimate settlement The Company s policy is to recognize interest and penalties related to unrecognized tax benefits as income tax expense Accrued interest and penalties are insignificant at January 3 2025 and December 29 2023
  • Financial instruments consist of cash and cash equivalents short term investments accounts receivable other assets and accounts payable Cash cash equivalents and short term investments are recorded at fair value The carrying amount of the Company s accounts receivable other assets and accounts payable approximates their fair values due to their short maturities
  • Basic per share amounts are computed using the weighted average number of common shares outstanding during the period Diluted per share amounts are computed using the weighted average number of common shares outstanding and potentially dilutive securities using the treasury stock method if their effect would be dilutive
  • Common stock options to purchase 30 000 shares were excluded from the diluted per share calculation for 2024 due to their anti dilutive effect Common stock options to purchase 59 459 shares were excluded from the diluted per share calculation for 2023 due to their anti dilutive effect There were no equity awards excluded from the diluted per share calculation for 2022
  • On November 27 2023 the Financial Accounting Standards Board the FASB issued Accounting Standards Update ASU 2023 07 Segment Reporting Topic 280 Improvements to Reportable Segment Disclosures This standard improves reportable segment disclosures by adding and enhancing interim disclosure requirements clarifying circumstances in which entities can disclose multiple segment measures of profit or loss providing new segment disclosure requirements for entities with a single reportable segment and adding the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker within each reported measure of segment profit and loss This standard is effective for all entities that are subject to Topic 280 Segment Reporting for annual periods beginning after December 15 2023 and interim periods within fiscal years beginning after December 15 2024 The Company has included all required disclosures within its Form 10 K for the year ended December 31 2024 See Note 17 for further information on segment disclosures
  • In November 2024 the FASB issued ASU 2024 03 Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures subtopic 220 40 which requires disclosure of disaggregation of certain relevant expenses included in the statements of operations on an annual and interim basis ASU 2024 03 will be effective for our annual periods beginning January 1 2027 and interim periods beginning January 1 2028 The amendments must be applied retrospectively and early adoption is permitted The Company is currently evaluating the effects of adoption on our consolidated financial statements
  • Substantially all of the Company s engagements are performed under time and materials or fixed price arrangements For time and materials contracts the Company utilizes the practical expedient under Accounting Standards Codification 606 Revenue from Contracts with Customers which states if an entity has a right to consideration from a customer in an amount that corresponds directly with the value of the entity s performance completed to date for example a service contract in which an entity bills a fixed amount for each hour of service provided the entity may recognize revenue in the amount to which the entity has a right to invoice
  • For fixed price contracts the Company recognizes revenue over time because of the continuous transfer of control to the customer The customer typically controls the work in process as evidenced either by contractual termination clauses or by the Company s rights to payment for work performed to date to deliver services that do not have an alternative use to the Company Revenue for fixed price contracts is recognized based on the relationship of incurred labor hours at standard rates to the Company s estimate of the total labor hours at standard rates it expects to incur over the term of the contract The Company believes this methodology achieves a reliable measure of the revenue from the consulting services it provides to its customers under fixed price contracts given the nature of the consulting services the Company provides
  • Deferred revenues represent amounts billed to clients in advance of services provided During 2024 14 173 000 of revenues were recognized that were included in the deferred revenue balance at December 29 2023 During 2023 14 463 000 of revenues were recognized that were included in the deferred revenue balance at December 30 2022 During 2022 15 384 000 of revenues were recognized that were included in the deferred revenue balance at December 31 2021
  • Reimbursements including those related to travel and other out of pocket expenses and other similar third party costs such as the cost of materials and certain subcontracts are included in revenues and an equivalent amount of reimbursable expenses are included in operating expenses Any service fee associated with reimbursable expenses is included in revenues before reimbursements The Company reports revenues net of subcontractor fees for certain subcontracts where the Company has determined that it is acting as an agent because its performance obligation is to arrange for and not control the provision of goods or services by another party The total amount of subcontractor fees not included in revenues because the Company was acting as an agent were 10 970 000 12 268 000 and 28 754 000 during 2024 2023 and 2022 respectively
  • The Company measures certain financial assets and liabilities at fair value on a recurring basis including available for sale fixed income securities trading fixed income and equity securities held in its deferred compensation plan and the liability associated with its deferred compensation plan There have been no transfers between fair value measurement levels during 2024 2023 and 2022 Any transfers between fair value measurement levels would be recorded on the actual date of the event or change in circumstances that caused the transfer The fair value of these certain financial assets and liabilities was determined using the following inputs at January 3 2025 in thousands
  • The following financial instruments are not measured at fair value on the Company s consolidated balance sheet at January 3 2025 but require disclosure of their fair values accounts receivable other assets and accounts payable The estimated fair value of such instruments at January 3 2025 approximates their carrying value as reported on the consolidated balance sheet
  • The Company is entitled to a deduction for federal and state tax purposes with respect to employees stock award activity The net reduction in taxes otherwise payable arising from that deduction has been recorded as an income tax benefit For 2024 2023 and 2022 the net reduction in tax payable arising from employees stock award activity was 2 793 000 3 620 000 and 5 829 000 respectively
  • The Company and its subsidiaries file income tax returns in the United States federal jurisdiction California and various other state and foreign jurisdictions The Company is no longer subject to United States federal income tax examination for years prior to 2021 The Company is no longer subject to California franchise tax examinations for years prior to 2020 With few exceptions the Company is no longer subject to state and local or non United States income tax examination by tax authorities for years prior to 2020
  • Unrecognized tax benefits are included in other liabilities in the accompanying consolidated balance sheets To the extent these unrecognized tax benefits are ultimately recognized they will impact the effective tax rate by 1 918 000 in a future period There are no uncertain tax positions whose resolution in the next 12 months is expected to materially affect operating results
  • The Company repurchased 74 000 shares of its common stock for 5 710 000 during 2024 The Company repurchased 288 000 shares of its common stock for 24 208 000 during 2023 The Company repurchased 1 756 000 shares of its common stock for 155 856 000 during 2022 On February 1 2024 the Board of Directors authorized 61 600 000 for the repurchase of the Company s common stock On February 22 2022 the Board of Directors authorized 150 000 000 for the repurchase of the Company s common stock These repurchase programs have no expiration dates As of January 3 2025 the Company had remaining authorization under its stock repurchase plan of 94 290 000 to repurchase shares of common stock
  • The 2008 Equity Incentive Plan allows for the award of stock options stock awards including stock units stock grants and stock appreciation rights or other similar equity awards and cash awards to officers employees consultants and non employee members of the Board of Directors The total number of shares reserved for issuance under the 2008 Equity Incentive Plan was 13 336 300 shares of common stock subject to adjustment resulting from a stock split or the payment of a stock dividend or any other increase or decrease in the number of issued shares of the Company s stock effected without receipt of consideration by the Company As of January 3 2025 2 313 565 shares were available for grant under the 2008 Equity Incentive Plan
  • The ESPP allows for officers and employees to purchase common stock through payroll deductions of up to 15 of a participant s eligible compensation Shares of common stock are purchased under the ESPP at 95 of the fair market value of the Company s common stock on each purchase date Subject to adjustment resulting from a stock split or the payment of a stock dividend or any other increase or decrease in the number of issued shares of the Company s stock effected without receipt of consideration by the Company the total number of shares reserved for issuance under the ESPP was 1 200 000 shares of common stock As of January 3 2025 275 324 shares were available for grant Weighted average purchase prices for shares sold under the ESPP plan in 2024 2023 and 2022 were 88 70 87 12 and 91 17 respectively
  • The Company grants restricted stock units to employees and outside directors These restricted stock unit grants are designed to attract and retain employees and to better align employee interests with those of the Company s stockholders For a select group of employees up to 40 of their annual bonus is settled with fully vested restricted stock unit awards Under these fully vested restricted stock unit awards the holder of each award has the right to receive one share of the Company s common stock for each fully vested restricted stock unit four years from the date of grant Each individual who received a fully vested restricted stock unit award is granted a matching number of unvested restricted stock unit awards These unvested restricted stock unit awards cliff vest four years from the date of grant at which time the holder of each award will have the right to receive one share of the Company s common stock for each restricted stock unit award provided the holder of each award has met certain employment conditions In the case of retirement at 59 ½ years or older all unvested restricted stock unit awards will continue to vest provided the holder of each award performs all consulting work through the Company and does not become an employee for a past or present client beneficial party or competitor of the Company
  • All restricted stock units granted have dividend equivalent rights DER which entitle holders of restricted stock units to the same dividend value per share as holders of common stock DER are subject to the same vesting and other terms and conditions as the corresponding unvested restricted stock units DER are accumulated and paid when the underlying shares vest and are forfeited if the underlying shares are forfeited
  • The value of these restricted stock unit awards is determined based on the market price of the Company s common stock on the date of grant The value of fully vested restricted stock unit awards issued is recorded as a reduction to accrued bonuses The portion of bonus expense that the Company expects to settle with fully vested restricted stock unit awards is recorded as stock based compensation during the period the bonus is earned For 2024 2023 and 2022 the Company recorded stock based compensation expense associated with accrued bonus awards of 12 182 000 10 445 000 and 10 365 000 respectively
  • The Company recorded stock based compensation expense associated with the unvested restricted stock unit awards of 9 634 000 8 831 000 and 9 164 000 during 2024 2023 and 2022 respectively The total fair value of restricted stock unit awards vested during 2024 2023 and 2022 was 21 286 000 25 277 000 and 29 875 000 respectively The weighted average grant date fair values of restricted stock unit awards granted during 2024 2023 and 2022 were 79 59 99 47 and 94 24 respectively
  • The Company currently grants stock options under the 2008 Equity Incentive Plan Options are granted for terms of 10 years and generally vest ratably over a four year period from the grant date In the case of retirement at 59 ½ years or older all unvested stock options will continue to vest provided the holder of each option does all consulting work through the Company and does not become an employee for a past or present client beneficial party or competitor of the Company The Company grants options at exercise prices equal to the fair value of the Company s common stock on the date of grant All stock options have DER which entitle holders of stock options to the same dividend value per share as holders of common stock DER are subject to the same vesting terms as the corresponding stock options DER are accumulated and paid in cash when the underlying stock options vest and are forfeited if the underlying stock options do not vest During 2024 2023 and 2022 the Company recorded stock based compensation expense of 1 423 000 1 081 000 and 835 000 respectively associated with stock options
  • The total intrinsic value of options exercised during 2024 2023 and 2022 was 8 410 000 742 000 and 0 respectively The aggregate intrinsic value in the table above represents the total pre tax intrinsic value the difference between the Company s closing stock price on the last trading day of the fiscal year ended January 3 2025 and the exercise price multiplied by the number of in the money options that would have been received by the option holders had all option holders exercised their options on January 3 2025 This amount changes based on the fair value of the Company s stock
  • The Company uses the Black Scholes option pricing model to determine the fair value of options granted The determination of the fair value of stock based payment awards on the date of grant using an option pricing model is affected by the Company s stock price as well as assumptions regarding a number of complex and subjective variables These variables include expected stock price volatility over the term of the award actual and projected employee stock option exercise behaviors the risk free interest rate and expected dividends
  • The Company used historical exercise and post vesting forfeiture and expiration data to estimate the expected term of options granted The historical volatility of the Company s common stock over a period of time equal to the expected term of the options granted was used to estimate expected volatility The risk free interest rate used in the option pricing model was based on United States Treasury zero coupon issues with remaining terms similar to the expected term on the options The dividend yield assumption considers the expectation of continued declaration of dividends offset by option holders DER All stock based payment awards are recognized on a straight line basis over the requisite service periods of the awards
  • As of January 3 2025 there was 12 984 000 of unrecognized compensation cost expected to be recognized over a weighted average period of 2 5 years related to unvested restricted stock unit awards and 1 253 000 of unrecognized compensation cost expected to be recognized over a weighted average period of 2 1 years related to unvested stock options
  • The Company provides a defined contribution retirement plan for its employees whereby the Company contributes to each eligible employee s account 7 of the employee s eligible salary The employee does not need to make a contribution to the plan to be eligible for the Company s 7 contribution To be eligible under the plan an employee must be at least 21 years of age and be either a full time or part time salaried employee The 7 Company contribution will vest 20 per year for the first five years of employment and then immediately thereafter These contributions are made to the 401 k plan up to the statutory maximum Any portion of the 7 contribution in excess of the statutory maximum is made to the Company s nonqualified deferred compensation plan The Company s expenses related to this plan were 11 704 000 11 867 000 and 10 166 000 in 2024 2023 and 2022 respectively
  • The Company maintains nonqualified deferred compensation plans for the benefit of a select group of highly compensated employees Under these plans participants may elect to defer up to 100 of their compensation Company assets that are earmarked to pay benefits under the plans are held in a rabbi trust and are subject to the claims of the Company s creditors As of January 3 2025 and December 29 2023 invested amounts under the plans totaled 127 837 000 and 115 187 000 respectively These assets are classified as trading securities and are recorded at fair market value with changes recorded as adjustments to miscellaneous income net
  • As of January 3 2025 and December 29 2023 vested amounts due under the plans totaled 127 622 000 and 116 564 000 respectively Changes in the liability are recorded as adjustments to compensation and related expense During 2024 2023 and 2022 the Company recognized compensation expense of 14 928 000 14 315 000 and 14 187 000 respectively as a result of changes in the market value of the trust assets with the same amount being recorded as other income net
  • The Company determines if an arrangement is a lease at the inception of the arrangement Operating leases are included in operating lease right of use ROU assets current operating lease liabilities and long term operating lease liabilities in the Company s consolidated balance sheet The Company does not have any finance leases as of January 3 2025
  • ROU assets represent the Company s right to use an underlying asset for the lease term and lease liabilities represent the Company s obligation to make lease payments arising from the lease Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term As the Company s leases do not provide an implicit rate the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments The operating lease ROU asset also includes any lease payments made and excludes lease incentives The Company s lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option Lease expense for lease payments is recognized on a straight line basis over the lease term The amortization of operating lease ROU assets and the change in operating lease liabilities is disclosed as a single line item in the consolidated statements of cash flows
  • The Company leases office laboratory and storage space in 13 states and the District of Columbia as well as in China Hong Kong Singapore Switzerland and the United Kingdom Leases for these office laboratory and storage facilities have terms generally ranging between one and 10 years Some of these leases include options to extend or terminate the lease none of which are currently included in the lease term as the Company has determined that exercise of these options is not reasonably certain
  • The Company has a Test and Engineering Center on 147 acres of land in Phoenix Arizona The Company leases this land from the state of Arizona under a 30 year lease agreement that expires in January of 2028 and has options to renew for two 15 year periods On June 19 2024 the Company entered into an agreement with the State of Arizona
  • to extend this lease for 15 years beginning on January 17 2028 The Company is currently obligated to make payments under the lease of 1 009 000 per year which obligation will continue at that level until January 16 2028 Beginning on January 17 2028 the Company s payments under the lease will increase to approximately 6 183 000 per year for the 15 year extension term with adjustments to the annual rent payment in 2033 and 2038 based on the consumer price index As a result of this extension the Company added an additional right of use asset in exchange for an operating lease liability of 48 683 000 during the second quarter of 2024 As of January 3 2025 the Company has determined that the exercise of the second renewal option is not reasonably certain and thus that extension is not included in the lease term
  • The Company is a party to various legal actions from time to time and may be contingently liable in connection with claims and contracts arising in the normal course of business the outcome of which the Company believes after consultation with legal counsel will not have a material adverse effect on its financial condition results of operations or liquidity However due to the risks and uncertainties inherent in legal proceedings actual results could differ from current expected results All legal costs associated with litigation are expensed as incurred
  • The Company serves clients in various segments of the economy During 2024 the Company provided services representing approximately 24 19 16 and 10 of revenues to clients in the consumer products industry energy and utilities industries the transportation industry and the chemical industry respectively
  • The Company has two reportable operating segments based on two primary areas of service The Engineering and Other Scientific segment is a broad service group providing technical consulting in different practices primarily in engineering The Environmental and Health segment provides services in the area of environmental epidemiology and health risk analysis This segment provides a wide range of consulting services relating to environmental hazards and risks and the impact on both human health and the environment
  • Segment information is presented for selected data from the statements of income and statements of cash flows for 2024 2023 and 2022 Segment information for selected data from the balance sheets is presented for the fiscal years ended January 3 2025 and December 29 2023 The Company s CEO the chief operating decision maker does not review total assets in her evaluation of segment performance and capital allocation
  • Certain expenses are excluded from the Company s measure of segment compensation and related expenses These include the deferred compensation expense benefit due to changes in value of assets associated with the Company s deferred compensation plan stock based compensation associated with restricted stock unit and stock option awards and the compensation costs associated with the Company s human resources finance information technology corporate and business development groups
  • Certain operating expenses are excluded from the Company s measure of segment operating income These expenses include the costs associated with the Company s human resources finance information technology corporate and business development groups the deferred compensation expense benefit due to the change in value of assets associated with the Company s deferred compensation plan stock based compensation associated with restricted stock unit and stock option awards and the change in the Company s allowance for contract losses and doubtful accounts
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