Exponent Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Exponent Inc. has filed its 2023 10-K, providing a comprehensive overview of its financial performance and position.</b>

AI Summary

EXPONENT INC (EXPO) filed a Annual Report (10-K) with the SEC on February 23, 2024. Exponent Inc. filed its 10-K report for the fiscal year ending December 29, 2023. The filing details financial data, including revenue from various contract types and operating segments. Key financial statement items such as cash equivalents, trade accounts receivable, and retained earnings are reported. Information on employee stock options, restricted stock, and treasury stock is included. The report covers financial metrics for the periods ending December 31, 2021, December 30, 2022, and December 29, 2023.

Why It Matters

For investors and stakeholders tracking EXPONENT INC, this filing contains several important signals. This 10-K filing provides investors with detailed financial statements and disclosures for the fiscal year 2023, enabling informed investment decisions. The report includes specific data on revenue streams, operating segments, and balance sheet items, offering transparency into Exponent's business operations and financial health.

Risk Assessment

Risk Level: — EXPONENT INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not indicate any immediate or severe risks beyond those typically associated with public companies in the services sector.

Analyst Insight

Review the detailed financial statements and segment information within the 10-K to understand Exponent's revenue drivers and operational performance for fiscal year 2023.

Revenue Breakdown

Key Numbers

• 2023-12-29 — Fiscal Year End (Reporting period)
• 2024-02-23 — Filing Date (Date of submission)
• 8742 — SIC Code (Services-Management Consulting Services)

Key Players & Entities

• EXPONENT INC (company) — Filer name
• FAILURE GROUP INC (company) — Former company name
• 2023-12-29 (date) — Fiscal year end
• 2024-02-23 (date) — Filing date
• Menlo Park, CA (location) — Business address

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: Risk associated with reliance on a single client or a few major clients for a significant portion of revenue.
• Allowance for Contract Losses [medium — financial]: The company maintains allowances for potential contract losses, indicating inherent risks in project profitability.
• Revenue from Rights Concentration Risk [medium — operational]: Potential impact on revenue due to concentration in specific contract types or rights.

Key Dates

• 2023-12-29: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-23: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), filed by public companies to provide a comprehensive summary of their financial performance. (This filing provides the detailed financial and operational information for Exponent Inc. for the fiscal year 2023.)

Revenue from Rights Concentration Risk

A risk factor related to the concentration of revenue derived from specific rights or contracts. (Highlights potential vulnerabilities in Exponent's revenue streams due to over-reliance on certain contractual arrangements.)

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 per share EXPO Nasdaq Global Select
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• $985 — es for professionals range from $200 to $985 per hour. Our engagement agreements typ

Filing Documents

• expo-20231229.htm (10-K) — 2714KB
• expo-ex3_1ii.htm (EX-3.1(II)) — 10KB
• expo-ex21_1.htm (EX-21.1) — 11KB
• expo-ex23_1.htm (EX-23.1) — 4KB
• expo-ex31_1.htm (EX-31.1) — 14KB
• expo-ex31_2.htm (EX-31.2) — 14KB
• expo-ex32_1.htm (EX-32.1) — 8KB
• expo-ex32_2.htm (EX-32.2) — 8KB
• expo-ex97_0.htm (EX-97.0) — 36KB
• img37928738_0.jpg (GRAPHIC) — 158KB
• 0000950170-24-019390.txt (&nbsp;) — 11686KB
• expo-20231229.xsd (EX-101.SCH) — 1219KB
• expo-20231229_htm.xml (XML) — 2502KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 23 Item 1C. Cybersecurity 24 Item 2.

Properties

Properties 25 Item 3.

Legal Proceedings

Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 26 Item 6. (Reserved) 27 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 35 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 36 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 36 Item 9A.

Controls and Procedures

Controls and Procedures 36 Item 9B. Other Information 36 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 36 PART III Item 10. Directors, Executive Officers and Corporate Governance 37 Item 11.

Executive Compensation

Executive Compensation 37 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 37 Item 13. Certain Relationships and Related Transactions, and Director Independence 37 Item 14. Principal Accounting Fees and Services 37 PART IV Item 15. Exhibits and Financial Statement Schedules 38 Exhibit Index 65

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 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

B usiness

Item 1. B usiness GENERAL 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 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. 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. CLIENTS General 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 2023, we provided services representing approximately 22%, 18%, 17% and 11% of revenues to clients in the consumer products industry, energy and utilities industries, transportation industry and chemical industry, respectively. Pricing and Ter

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View this 10-K filing on SEC EDGAR