EXPONENT INC Segments Disclosure
Note 17: Segment Reporting
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 2025, 2024 and 2023. Segment information for selected data from the balance sheets is presented for the fiscal years ended January 2, 2026 and January 3, 2025. The Company’s CEO, the chief operating decision maker, does not review total assets in her evaluation of segment performance and capital allocation.
Revenues
|
|
Fiscal Years |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Engineering and Other Scientific |
|
$ |
493,893 |
|
|
$ |
469,544 |
|
|
$ |
446,888 |
|
Environmental and Health |
|
|
88,121 |
|
|
|
88,970 |
|
|
|
89,878 |
|
Total revenues |
|
$ |
582,014 |
|
|
$ |
558,514 |
|
|
$ |
536,766 |
|
Compensation and related expenses
|
|
Fiscal Years |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Engineering and Other Scientific |
|
$ |
230,326 |
|
|
$ |
223,395 |
|
|
$ |
215,650 |
|
Environmental and Health |
|
|
47,767 |
|
|
|
47,600 |
|
|
|
48,619 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total segment compensation and related expenses |
|
|
278,093 |
|
|
|
270,995 |
|
|
|
264,269 |
|
|
|
|
|
|
|
|
|
|
|
|||
Corporate compensation and related expenses |
|
|
63,901 |
|
|
|
59,016 |
|
|
|
55,617 |
|
Total compensation and related expenses |
|
$ |
341,994 |
|
|
$ |
330,011 |
|
|
$ |
319,886 |
|
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.
Operating Income
|
|
Fiscal Years |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Engineering and Other Scientific |
|
$ |
173,625 |
|
|
$ |
164,883 |
|
|
$ |
153,918 |
|
Environmental and Health |
|
|
30,558 |
|
|
|
29,995 |
|
|
|
28,432 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total segment operating income |
|
|
204,183 |
|
|
|
194,878 |
|
|
|
182,350 |
|
|
|
|
|
|
|
|
|
|
|
|||
Corporate operating expense |
|
|
(84,396 |
) |
|
|
(75,321 |
) |
|
|
(71,028 |
) |
Total operating income |
|
$ |
119,787 |
|
|
$ |
119,557 |
|
|
$ |
111,322 |
|
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.
Capital Expenditures
|
|
Fiscal Years |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Engineering and Other Scientific |
|
$ |
5,341 |
|
|
$ |
3,257 |
|
|
$ |
3,895 |
|
Environmental and Health |
|
|
238 |
|
|
|
77 |
|
|
|
170 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total segment capital expenditures |
|
|
5,579 |
|
|
|
3,334 |
|
|
|
4,065 |
|
|
|
|
|
|
|
|
|
|
|
|||
Corporate capital expenditures |
|
|
3,478 |
|
|
|
4,043 |
|
|
|
14,630 |
|
Total capital expenditures |
|
$ |
9,057 |
|
|
$ |
7,377 |
|
|
$ |
18,695 |
|
Certain capital expenditures associated with the Company's corporate cost centers and the related depreciation are excluded from the Company's segment information.
Depreciation and Amortization
|
|
Fiscal Years |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Engineering and Other Scientific |
|
$ |
7,344 |
|
|
$ |
6,833 |
|
|
$ |
6,087 |
|
Environmental and Health |
|
|
201 |
|
|
|
206 |
|
|
|
213 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total segment depreciation and amortization |
|
|
7,545 |
|
|
|
7,039 |
|
|
|
6,300 |
|
|
|
|
|
|
|
|
|
|
|
|||
Corporate depreciation and amortization |
|
|
2,538 |
|
|
|
2,650 |
|
|
|
2,616 |
|
Total depreciation and amortization |
|
$ |
10,083 |
|
|
$ |
9,689 |
|
|
$ |
8,916 |
|
Information regarding the Company’s operations in different geographical areas:
Property, Equipment and Leasehold Improvements, net
|
|
Fiscal Years |
|
|||||
(In thousands) |
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
71,135 |
|
|
$ |
72,418 |
|
Foreign Countries |
|
|
846 |
|
|
|
589 |
|
Total |
|
$ |
71,981 |
|
|
$ |
73,007 |
|
Revenues (1)
|
|
Fiscal Years |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
United States |
|
$ |
520,591 |
|
|
$ |
493,067 |
|
|
$ |
470,078 |
|
Foreign Countries |
|
|
61,423 |
|
|
|
65,447 |
|
|
|
66,688 |
|
Total |
|
$ |
582,014 |
|
|
$ |
558,514 |
|
|
$ |
536,766 |
|
Below is a breakdown of goodwill, reported by segment as of January 2, 2026 and January 3, 2025:
(In thousands) |
|
Environmental |
|
|
Engineering |
|
|
Total |
|
|||
Goodwill |
|
$ |
8,099 |
|
|
$ |
508 |
|
|
$ |
8,607 |
|
There were no changes in the carrying amount of goodwill for 2025, 2024 and 2023. There were no goodwill impairments or gains or losses on disposals for any portion of the Company’s reporting units during 2025, 2024, and 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 27, 2026 | Showing above |
| 2025 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 28, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.