Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 28, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | EXPONENT, INC. | |
Entity Central Index Key | 0000851520 | |
Current Fiscal Year End Date | --01-03 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | EXPO | |
Entity Common Stock, Shares Outstanding | 51,919,297 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity File Number | 0-18655 | |
Entity Tax Identification Number | 770218904 | |
Entity Address, Address Line One | 149 COMMONWEALTH DRIVE | |
Entity Address, City or Town | MENLO PARK | |
Entity Address, State or Province | CALIFORNIA | |
Entity Address, Postal Zip Code | 94025 | |
City Area Code | 650 | |
Local Phone Number | (650) 326-9400 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 104,452 | $ 127,059 |
Short-term investments | 90,022 | 81,495 |
Accounts receivable, net of allowance for contract losses and doubtful accounts of $5,342 and $4,066 at June 28, 2019 and December 28, 2018, respectively | 129,735 | 105,814 |
Prepaid expenses and other current assets | 10,452 | 12,244 |
Total current assets | 334,661 | 326,612 |
Property, equipment and leasehold improvements, net | 56,112 | 46,103 |
Operating lease right-of-use assets | 22,729 | |
Goodwill | 8,607 | 8,607 |
Deferred income taxes | 34,099 | 34,090 |
Deferred compensation plan assets | 63,484 | 52,286 |
Other assets | 949 | 1,238 |
Total assets | 520,641 | 468,936 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 19,678 | 12,283 |
Accrued payroll and employee benefits | 58,910 | 76,855 |
Deferred revenues | 8,550 | 9,166 |
Operating lease liabilities | 5,746 | |
Total current liabilities | 92,884 | 98,304 |
Other liabilities | 2,846 | 2,548 |
Deferred compensation plan liabilities | 63,391 | 52,708 |
Deferred rent | 1,467 | |
Operating lease liabilities | 17,668 | |
Total liabilities | 176,789 | 155,027 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; 120,000 shares authorized; 65,707 shares issued at June 28, 2019 and December 28, 2018 | 66 | 66 |
Additional paid-in capital | 240,930 | 227,283 |
Accumulated other comprehensive income (loss) | ||
Investment securities, available-for-sale | 358 | (45) |
Foreign currency translation adjustments | (2,932) | (2,808) |
Accumulated other comprehensive income (loss) | (2,574) | (2,853) |
Retained earnings | 362,959 | 342,024 |
Treasury stock, at cost; 13,788 and 14,208 shares held at June 28, 2019 and December 28, 2018, respectively | (257,529) | (252,611) |
Total stockholders’ equity | 343,852 | 313,909 |
Total liabilities and stockholders’ equity | $ 520,641 | $ 468,936 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for contract losses and doubtful accounts | $ 5,342 | $ 4,066 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 65,707,000 | 65,707,000 |
Treasury stock, shares | 13,788,000 | 14,208,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Revenues: | ||||
Revenues before reimbursements | $ 100,263 | $ 89,972 | $ 193,664 | $ 180,656 |
Reimbursements | 6,243 | 5,649 | 11,873 | 11,422 |
Revenues | 106,506 | 95,621 | 205,537 | 192,078 |
Operating expenses: | ||||
Compensation and related expenses | 61,997 | 55,458 | 127,090 | 113,037 |
Other operating expenses | 8,095 | 7,566 | 16,103 | 15,031 |
Reimbursable expenses | 6,243 | 5,649 | 11,873 | 11,422 |
General and administrative expenses | 5,348 | 4,470 | 9,894 | 8,512 |
Total operating expenses | 81,683 | 73,143 | 164,960 | 148,002 |
Operating income | 24,823 | 22,478 | 40,577 | 44,076 |
Other income, net: | ||||
Interest income, net | 924 | 543 | 1,979 | 1,073 |
Miscellaneous income, net | 3,104 | 1,898 | 9,617 | 2,220 |
Total other income, net | 4,028 | 2,441 | 11,596 | 3,293 |
Income before income taxes | 28,851 | 24,919 | 52,173 | 47,369 |
Income taxes | 7,857 | 6,494 | 8,467 | 8,604 |
Net income | $ 20,994 | $ 18,425 | $ 43,706 | $ 38,765 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.40 | $ 0.35 | $ 0.83 | $ 0.73 |
Diluted (in dollars per share) | $ 0.39 | $ 0.34 | $ 0.81 | $ 0.72 |
Shares used in per share computations: | ||||
Basic (in shares) | 52,745 | 53,008 | 52,641 | 52,876 |
Diluted (in shares) | 53,872 | 54,195 | 53,849 | 54,111 |
Cash dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.13 | $ 0.32 | $ 0.26 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 20,994 | $ 18,425 | $ 43,706 | $ 38,765 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of tax | (241) | (1,368) | (124) | (629) |
Unrealized gains (losses) on available-for-sale investment securities arising during the period, net of tax | 249 | 19 | 403 | (21) |
Comprehensive income | $ 21,002 | $ 17,076 | $ 43,985 | $ 38,115 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Retained earnings [Member] | Treasury Stock [Member] |
Balance at Dec. 29, 2017 | $ 289,088 | $ 66 | $ 210,230 | $ (2,029) | $ 303,990 | $ (223,169) |
Balances (in shares) at Dec. 29, 2017 | 65,707 | 14,169 | ||||
Employee stock purchase plan | 310 | $ 0 | 230 | 0 | 0 | $ 80 |
Employee stock purchase plan (in shares) | (8) | |||||
Amortization of unrecognized stock-based compensation | 4,057 | 0 | 4,057 | 0 | 0 | $ 0 |
Foreign currency translation adjustments | 739 | 0 | 0 | 739 | 0 | 0 |
Grant of restricted stock units to settle accrued bonus | 7,643 | 0 | 7,643 | 0 | 0 | 0 |
Settlement of restricted stock units | (8,637) | 0 | (806) | 0 | (5,892) | $ (1,939) |
Settlement of restricted stock units (in shares) | (463) | |||||
Unrealized gain (loss) on short-term investments | (40) | 0 | 0 | (40) | 0 | $ 0 |
Dividends and dividend equivalent rights | (6,875) | 0 | 585 | 0 | (7,460) | 0 |
Net income | 20,340 | 0 | 0 | 0 | 20,340 | 0 |
Balance at Mar. 30, 2018 | 306,625 | $ 66 | 221,939 | (1,330) | 310,978 | $ (225,028) |
Balances (in shares) at Mar. 30, 2018 | 65,707 | 13,698 | ||||
Balance at Dec. 29, 2017 | 289,088 | $ 66 | 210,230 | (2,029) | 303,990 | $ (223,169) |
Balances (in shares) at Dec. 29, 2017 | 65,707 | 14,169 | ||||
Foreign currency translation adjustments | (629) | |||||
Unrealized gain (loss) on short-term investments | (21) | |||||
Net income | 38,765 | |||||
Balance at Jun. 29, 2018 | 318,766 | $ 66 | 223,696 | (2,679) | 322,437 | $ (224,754) |
Balances (in shares) at Jun. 29, 2018 | 65,707 | 13,669 | ||||
Balance at Mar. 30, 2018 | 306,625 | $ 66 | 221,939 | (1,330) | 310,978 | $ (225,028) |
Balances (in shares) at Mar. 30, 2018 | 65,707 | 13,698 | ||||
Employee stock purchase plan | 382 | $ 0 | 302 | 0 | 0 | $ 80 |
Employee stock purchase plan (in shares) | (8) | |||||
Amortization of unrecognized stock-based compensation | 1,576 | 0 | 1,576 | 0 | 0 | $ 0 |
Foreign currency translation adjustments | (1,368) | 0 | 0 | (1,368) | 0 | 0 |
Settlement of restricted stock units | 0 | 0 | (194) | 0 | 0 | $ 194 |
Settlement of restricted stock units (in shares) | (21) | |||||
Unrealized gain (loss) on short-term investments | 19 | 0 | 0 | 19 | 0 | $ 0 |
Dividends and dividend equivalent rights | (6,893) | 0 | 73 | 0 | (6,966) | 0 |
Net income | 18,425 | 0 | 0 | 0 | 18,425 | 0 |
Balance at Jun. 29, 2018 | 318,766 | $ 66 | 223,696 | (2,679) | 322,437 | $ (224,754) |
Balances (in shares) at Jun. 29, 2018 | 65,707 | 13,669 | ||||
Balance at Dec. 28, 2018 | 313,909 | $ 66 | 227,283 | (2,853) | 342,024 | $ (252,611) |
Balances (in shares) at Dec. 28, 2018 | 65,707 | 14,208 | ||||
Employee stock purchase plan | 372 | $ 0 | 302 | 0 | 0 | $ 70 |
Employee stock purchase plan (in shares) | (7) | |||||
Amortization of unrecognized stock-based compensation | 3,663 | 0 | 3,663 | 0 | 0 | $ 0 |
Foreign currency translation adjustments | 117 | 0 | 0 | 117 | 0 | 0 |
Grant of restricted stock units to settle accrued bonus | 7,947 | 0 | 7,947 | 0 | 0 | 0 |
Settlement of restricted stock units | (11,194) | 0 | (860) | 0 | (5,146) | $ (5,188) |
Settlement of restricted stock units (in shares) | (395) | |||||
Unrealized gain (loss) on short-term investments | 154 | 0 | 0 | 154 | 0 | $ 0 |
Dividends and dividend equivalent rights | (8,503) | 0 | 581 | 0 | (9,084) | 0 |
Net income | 22,712 | 0 | 0 | 0 | 22,712 | 0 |
Balance at Mar. 29, 2019 | 329,177 | $ 66 | 238,916 | (2,582) | 350,506 | $ (257,729) |
Balances (in shares) at Mar. 29, 2019 | 65,707 | 13,806 | ||||
Balance at Dec. 28, 2018 | 313,909 | $ 66 | 227,283 | (2,853) | 342,024 | $ (252,611) |
Balances (in shares) at Dec. 28, 2018 | 65,707 | 14,208 | ||||
Foreign currency translation adjustments | (124) | |||||
Unrealized gain (loss) on short-term investments | 403 | |||||
Net income | 43,706 | |||||
Balance at Jun. 28, 2019 | 343,852 | $ 66 | 240,930 | (2,574) | 362,959 | $ (257,529) |
Balances (in shares) at Jun. 28, 2019 | 65,707 | 13,788 | ||||
Balance at Mar. 29, 2019 | 329,177 | $ 66 | 238,916 | (2,582) | 350,506 | $ (257,729) |
Balances (in shares) at Mar. 29, 2019 | 65,707 | 13,806 | ||||
Employee stock purchase plan | 473 | $ 0 | 385 | 0 | 0 | $ 88 |
Employee stock purchase plan (in shares) | (8) | |||||
Amortization of unrecognized stock-based compensation | 1,685 | 0 | 1,685 | 0 | 0 | $ 0 |
Foreign currency translation adjustments | (241) | 0 | 0 | (241) | 0 | 0 |
Settlement of restricted stock units | 11 | 0 | (101) | 0 | 0 | $ 112 |
Settlement of restricted stock units (in shares) | (10) | |||||
Unrealized gain (loss) on short-term investments | 249 | 0 | 0 | 249 | 0 | $ 0 |
Dividends and dividend equivalent rights | (8,496) | 0 | 45 | 0 | (8,541) | 0 |
Net income | 20,994 | 0 | 0 | 0 | 20,994 | 0 |
Balance at Jun. 28, 2019 | $ 343,852 | $ 66 | $ 240,930 | $ (2,574) | $ 362,959 | $ (257,529) |
Balances (in shares) at Jun. 28, 2019 | 65,707 | 13,788 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 28, 2019 | Jun. 29, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 43,706 | $ 38,765 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property, equipment and leasehold improvements | 3,232 | 3,149 |
Amortization of premiums and accretion of discounts on short-term investments | (298) | (19) |
Deferred rent | (153) | |
Provision for contract losses and doubtful accounts | 1,786 | 782 |
Stock-based compensation | 9,741 | 10,033 |
Deferred income tax provision | (141) | (1,379) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (25,707) | (7,214) |
Prepaid expenses and other current assets | (1,760) | (4,553) |
Change in operating leases | (209) | |
Accounts payable and accrued liabilities | 6,846 | (3,018) |
Accrued payroll and employee benefits | (11,761) | (8,182) |
Deferred revenues | (616) | (295) |
Net cash provided by operating activities | 24,819 | 27,916 |
Cash flows from investing activities: | ||
Capital expenditures | (12,494) | (8,949) |
Purchase of short-term investments | (38,693) | (19,939) |
Maturity of short-term investments | 31,000 | 16,000 |
Net cash used in investing activities | (20,187) | (12,888) |
Cash flows from financing activities: | ||
Payroll taxes for restricted stock units | (11,183) | (8,637) |
Exercise of stock-based payment awards | 845 | 692 |
Dividends and dividend equivalents rights | (16,899) | (13,732) |
Net cash used in financing activities | (27,237) | (21,677) |
Effect of foreign currency exchange rates on cash and cash equivalents | (2) | (372) |
Net decrease in cash and cash equivalents | (22,607) | (7,021) |
Cash and cash equivalents at beginning of period | 127,059 | 124,794 |
Cash and cash equivalents at end of period | $ 104,452 | $ 117,773 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 28, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1: Basis of Presentation Exponent, Inc. (referred to as the “Company” or “Exponent”) is an engineering and scientific consulting firm that provides solutions to complex problems. The Company operates on a 52-53 week fiscal year ending on the Friday closest to the last day of December. The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission. Accordingly, they do not contain all the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments which are necessary for the fair presentation of the condensed consolidated financial statements have been included and all such adjustments are of a normal and recurring nature. The operating results for the three and six months ended June 28, 2019 are not necessarily representative of the results of future quarterly or annual periods. The following information should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2018, which was filed with the U.S. Securities and Exchange Commission on February 22, 2019. The unaudited condensed consolidated financial statements include the accounts of Exponent, Inc. and its subsidiaries, which are all wholly owned. All intercompany accounts and transactions have been eliminated in consolidation. Stock Split. On May 31, 2018, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation to (i) increase the number of authorized shares of common stock to 120,000,000 and (ii) effect a two-for-one stock split. As a result of the stock split, each shareholder of record at the close of business on May 31, 2018, received one additional share of common stock for each share of common stock owned by such shareholder. Restricted stock unit awards and stock option awards have also been adjusted to reflect the two-for-one stock split. For periods prior to the stock split, all share and per share data in the Company’s condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the stock split. Use of Estimates. 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. Items subject to such estimates and assumptions include accounting for revenue recognition and estimating the allowance for contract losses and doubtful accounts. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted the ASU as of the beginning of its first quarter of fiscal 2019. A modified retrospective transition approach is required, requiring the application of the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company adopted the new standard on December 29, 2018 using the effective date as the date of initial application. Consequently, financial information was not updated and the disclosures required under the new standard were not provided for dates and periods before December 29, 2018. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits it not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. The Company elected the practical expedient to include both lease and non-lease components as a single component and account for it as a lease for all asset classes. The Company also elected to apply the short-term lease exception for all leases. Under the short-term lease exception, the Company will not recognize ROU assets or lease liabilities for leases that, at the acquisition date, have a remaining lease term of 12 months or less. The ASU had a material impact to the Company’s condensed consolidated balance sheet, but did not have an impact on its condensed consolidated statement of income. The most significant impact was the recognition of ROU assets and lease liabilities for its operating leases. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 28, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 2: Revenue Recognition 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. During the second quarter of 2019, the Company recognized revenue of $90,553,000 associated with time and materials contracts. These revenues represent 85% of the Company’s consolidated revenues and include revenues of $71,761,000 for the Company’s Engineering and Other Scientific segment and $18,792,000 for the Company’s Environmental and Health segment. During the first six months of 2019, the Company recognized revenue of $173,950,000 associated with time and materials contracts. These revenues represent 85% of the Company’s consolidated revenues and include revenues of $137,140,000 for the Company’s Engineering and Other Scientific segment and $36,810,000 for the Company’s Environmental and Health segment. During the second quarter of 2018, the Company recognized revenue of $79,965,000 associated with time and materials contracts. These revenues represent 84% of the Company’s consolidated revenues and include revenues of $62,347,000 for the Company’s Engineering and Other Scientific segment and $17,618,000 for the Company’s Environmental and Health segment. During the first six months of 2018, the Company recognized revenue of $163,136,000 associated with time and materials contracts. These revenues represent 85% of the Company’s consolidated revenues and include revenues of $126,948,000 for the Company’s Engineering and Other Scientific segment and $36,188,000 for the Company’s Environmental and Health segment. The Company’s time and materials contracts are terminable and subject to postponement or delay at any time by its clients, and as such, the performance obligations for all of the Company’s time and materials contracts have an original expected duration of one year or less. 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 and the following additional considerations: • the Company considers labor hours at standard rates and expenses to be incurred when pricing its contracts; • the Company generally does not incur set up costs on its contracts; • the Company does not believe that there are reliable milestones to measure progress towards completion; • the customer is required to pay the Company for time at standard rates plus materials incurred to date if the contract is terminated early; • the Company’s contracts do not include award fees or bonuses; • the Company does not include revenue for unpriced change orders until the customer agrees with the changes; • historically the Company has not had significant accounts receivable write-offs or cost overruns; and • the Company’s contracts are typically progress billed on a monthly basis. During the second quarter of 2019 the Company recognized revenue of $15,953,000 associated with fixed-price contracts. These revenues represent 15% of the Company’s consolidated revenues and include revenues of $15,059,000 for the Company’s Engineering and Other Scientific segment and $894,000 for the Company’s Environmental and Health segment. During the first six months of 2019 the Company recognized revenue of $31,587,000 associated with fixed-price contracts. These revenues represent 15% of the Company’s consolidated revenues and include revenues of $29,934,000 for the Company’s Engineering and Other Scientific segment and $1,653,000 for the Company’s Environmental and Health segment. During the second quarter of 2018 the Company recognized revenue of $15,656,000 associated with fixed-price contracts. These revenues represent 16% of the Company’s consolidated revenues and include revenues of $14,733,000 for the Company’s Engineering and Other Scientific segment and $923,000 for the Company’s Environmental and Health segment. During the first six months of 2018, the Company recognized revenue of $28,942,000 associated with fixed-price contracts. These revenues represent 15% of the Company’s consolidated revenues and include revenues of $27,179,000 for the Company’s Engineering and Other Scientific segment and $1,763,000 for the Company’s Environmental and Health segment. Deferred revenues represent amounts billed to clients in advance of services provided. During the second quarter of 2019, $1,876,000 of revenues were recognized that were included in the deferred revenue balance at March 29, 2019. During the first six months of 2019, $4,481,000 of revenues were recognized that were included in the deferred revenue balance at December 28, 2018. 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 mark-up on 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 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 $6.2 million during the second quarter of 2019. The total amount of subcontractor fees not included in revenues because the Company was acting as an agent were $10.4 million during the first six months of 2019. The total amount of subcontractor fees not included in revenues because the Company was acting as an agent were $5.8 million during the second quarter of 2018. The total amount of subcontractor fees not included in revenues because the Company was acting as an agent were $11.4 million during the first six months of 2018. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3: Fair Value Measurements 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 were no transfers between fair value measurement levels during the three and six months ended June 28, 2019 and June 29, 2018. 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 June 28, 2019: Fair Value Measurements at Reporting Date Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market securities (1) $ 4,222 $ 4,222 $ - $ - Fixed income available-for-sale securities (2) 90,022 - 90,022 - Fixed income trading securities held in deferred compensation plan (3) 21,845 21,845 - - Equity trading securities held in deferred compensation plan (3) 47,540 47,540 - - Total $ 163,629 $ 73,607 $ 90,022 $ - Liabilities Deferred compensation plan (4) 69,742 69,742 - - Total $ 69,742 $ 69,742 $ - $ - (1) Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet. (2) Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. (3) Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. (4) Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet. The fair value of these certain financial assets and liabilities was determined using the following inputs at December 2 8 , 201 8 : Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market securities (1) $ 6,213 $ 6,213 $ - $ - Fixed income available for sale securities (2) 81,495 - 81,495 - Fixed income trading securities held in deferred compensation plan (3) 18,618 18,618 - - Equity trading securities held in deferred compensation plan (3) 39,160 39,160 - - Total $ 145,486 $ 63,991 $ 81,495 $ - Liabilities Deferred compensation plan (4) 59,349 59,349 - - Total $ 59,349 $ 59,349 $ - $ - (1) Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet. (2) Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. (3) Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. (4) Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet. Fixed income available-for-sale securities as of June 28, 2019 and December 28, 2018 represent obligations of the United States Treasury and other United States agencies. Fixed income and equity trading securities represent mutual funds held in the Company’s deferred compensation plan. See Note 7 for additional information about the Company’s deferred compensation plan. Cash, cash equivalents and short-term investments consisted of the following as of June 28, 2019: Gross Gross Amortized Unrealized Unrealized Estimated (In thousands) Cost Gains Losses Fair Value Classified as current assets: Cash $ 95,230 $ - $ - $ 95,230 Cash equivalents: Money market securities 4,222 - - 4,222 U.S. Treasury securities 5,000 - - 5,000 Total cash equivalents 9,222 - - 9,222 Total cash and cash equivalents 104,452 - - 104,452 Short-term investments: U.S. Treasury and agency securities 89,623 423 (24 ) 90,022 Total short-term investments 89,623 423 (24 ) 90,022 Total cash, cash equivalents and short-term investments $ 194,075 $ 423 $ (24 ) $ 194,474 Cash, cash equivalents and short-term investments consisted of the following as of December 2 8 , 201 8 : Amortized Unrealized Unrealized Estimated (In thousands) Cost Gains Losses Fair Value Classified as current assets: Cash $ 120,846 $ - $ - $ 120,846 Cash equivalents: Money market securities 6,213 - - 6,213 Total cash equivalents 6,213 - - 6,213 Total cash and cash equivalents 127,059 - - 127,059 Short-term investments: U.S. Treasury and agency securities 81,634 91 (230 ) 81,495 Total short-term investments 81,634 91 (230 ) 81,495 Total cash, cash equivalents and short-term investments $ 208,693 $ 91 $ (230 ) $ 208,554 The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of June 28, 2019: Amortized Estimated (In thousands) Cost Fair Value Due within one year $ 51,880 $ 51,910 Due between one and two years 37,743 38,112 Total $ 89,623 $ 90,022 At June 28, 2019 and December 28, 2018, the Company did not have any assets or liabilities valued using significant unobservable inputs. The following financial instruments are not measured at fair value on the Company's unaudited condensed consolidated balance sheet at June 28, 2019 and December 28, 2018, but require disclosure of their fair values: accounts receivable, other assets and accounts payable. The estimated fair value of such instruments at June 28, 2019 and December 28, 2018 approximates their carrying value as reported on the Company’s unaudited condensed consolidated balance sheet. There were no other-than-temporary impairments or credit losses related to available-for-sale securities during the three and six months ended June 28, 2019 and June 29, 2018. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 28, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 4: Net Income Per Share Basic per share amounts are computed using the weighted-average number of common shares outstanding during the period. Diluted per share amounts are calculated using the weighted-average number of common shares outstanding during the period and, when dilutive, the weighted-average number of potential common shares from the issuance of common stock to satisfy outstanding restricted stock units and the exercise of outstanding options to purchase common stock using the treasury stock method. The following schedule reconciles the shares used to calculate basic and diluted net income per share: Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Shares used in basic per share computation 52,745 53,008 52,641 52,876 Effect of dilutive common stock options outstanding 470 398 463 362 Effect of dilutive restricted stock units outstanding 657 789 745 873 Shares used in diluted per share computation 53,872 54,195 53,849 54,111 There were no options excluded from the diluted per share calculations for the three and six months ended June 28, 2019. There were no options excluded from the diluted per share calculations for the three and six months ended June 29, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 28, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 5: Stock-Based Compensation Restricted Stock Units 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 receives a fully vested restricted stock unit award is also granted a matching number of unvested restricted stock unit awards. Unvested restricted stock unit awards are also granted for select new hires and promotions. These unvested restricted stock unit awards generally 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 59½ years or older, all unvested restricted stock unit awards will continue to vest, provided that the holder of each award 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 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. The Company recorded stock-based compensation expense associated with accrued bonus awards of $2,325,000 and $2,168,000 during the three months ended June 28, 2019 and June 29, 2018, respectively. For the six months ended June 28, 2019 and June 29, 2018, the Company recorded stock-based compensation expense associated with accrued bonus awards of $4,393,000 and $4,400,000, respectively. The value of the unvested restricted stock unit awards granted is recognized on a straight-line basis over the shorter of the four-year vesting period or the period between the grant date and the date the award recipient turns 59½. If the award recipient is 59½ years or older on the date of grant, the value of the entire award is expensed upon grant. The Company recorded stock-based compensation expense associated with the unvested restricted stock unit awards of $1,535,000 and $1,460,000 during the three months ended June 28, 2019 and June 29, 2018, respectively. The Company recorded stock-based compensation expense associated with the unvested restricted stock unit awards of $5,065,000 and $4,968,000 during the six months ended June 28, 2019 and June 29, 2018, respectively. Stock Options Stock options are granted for terms of ten years and generally vest 25% per year over a four-year period from the grant date. Unvested stock option awards will continue to vest in the case of retirement at 59½ years or older, provided that the holder of each award 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 value of the unvested stock option awards granted is recognized on a straight-line basis over the shorter of the four-year vesting period or the period between the grant date and the date the award recipient turns 59½. If the award recipient is 59½ years or older on the date of grant, the value of the entire award is expensed upon grant. The Company recorded stock-based compensation expense associated with stock option grants of $150,000 and $116,000 during the three months ended June 28, 2019 and June 29, 2018, respectively. The Company recorded stock-based compensation expense associated with stock option grants of $283,000 and $665,000 during the six months ended June 28, 2019 and June 29, 2018, respectively. 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 option 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, forfeiture, and post-vesting 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 of the options. The dividend yield assumption considers the expectation of continued declaration of dividends, offset by option holders’ dividend equivalent rights. The Company accounts for forfeitures of stock-based awards when they occur. All stock-based payment awards are recognized on a straight-line basis over the requisite service periods of the awards. |
Treasury Stock
Treasury Stock | 6 Months Ended |
Jun. 28, 2019 | |
Equity [Abstract] | |
Treasury Stock | Note 6: Treasury Stock On October 19, 2016, the Company’s Board of Directors announced $35,000,000 for the repurchase of shares of the Company’s common stock. On January 31, 2019, the Company’s Board of Directors announced an additional $75,000,000 for the repurchase of shares of the Company’s common stock. The Company did not repurchase any shares of its common stock during the six months ended June 28, 2019 and June 29, 2018. As of June 28, 2019, the Company had remaining authorization under its stock repurchase plans of $92,462,000 to repurchase shares of common stock. |
Deferred Compensation Plans
Deferred Compensation Plans | 6 Months Ended |
Jun. 28, 2019 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred Compensation Plans | Note 7: Deferred Compensation Plans 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 June 28, 2019 and December 28, 2018, the invested amounts under the plans totaled $69,385,000 and $57,778,000, respectively, and are recorded in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. These assets are classified as trading securities and are recorded at fair value with changes recorded as adjustments to miscellaneous income, net. As of June 28, 2019 and December 28, 2018, vested amounts due under the plans totaled $69,742,000 and $59,349,000, respectively, and are recorded within accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet. Changes in the liability are recorded as adjustments to compensation expense. During the three months ended June 28, 2019 and June 29, 2018, the Company recognized compensation expense of $2,184,000 and $1,043,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as income in miscellaneous income, net. During the six months ended June 28, 2019 and June 29, 2018, the Company recognized compensation expense of $8,053,000 and $737,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as income in miscellaneous income, net. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 28, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 8: Supplemental Cash Flow Information The following is supplemental disclosure of cash flow information: Six Months Ended (In thousands) June 28, 2019 June 29, 2018 Cash paid during period: Income taxes $ 5,972 $ 12,217 Non-cash investing and financing activities: Unrealized gain (loss) on short-term investments $ 403 $ (21 ) Vested stock unit awards issued to settle accrued bonuses $ 7,947 $ 7,643 Accrual for capital expenditures $ 1,978 $ 691 Right-of-use asset obtained in exchange for operating lease obligations $ 26,152 $ - |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 28, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Note 9: Accounts Receivable, Net At June 28, 2019 and December 28, 2018, accounts receivable, net, was comprised of the following: June 28, December 28, (In thousands) 2019 2018 Billed accounts receivable $ 87,398 $ 73,905 Unbilled accounts receivable 47,679 35,975 Allowance for contract losses and doubtful accounts (5,342 ) (4,066 ) Total accounts receivable, net $ 129,735 $ 105,814 On January 29 th |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 10: 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 areas 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. Our Chief Executive Officer, the chief operating decision maker, reviews revenues and operating income for each of our reportable segments but does not review total assets in evaluating segment performance and capital allocation. Segment information for the three and six months ended June 28, 2019 and June 29, 2018 follows: Revenues Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Engineering and Other Scientific $ 86,820 $ 77,080 $ 167,074 $ 154,127 Environmental and Health 19,686 18,541 38,463 37,951 Total revenues $ 106,506 $ 95,621 $ 205,537 $ 192,078 Operating Income Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Engineering and Other Scientific $ 29,252 $ 25,802 $ 55,226 $ 51,715 Environmental and Health 7,039 6,156 13,235 12,780 Total segment operating income 36,291 31,958 68,461 64,495 Corporate operating expense (11,468 ) (9,480 ) (27,884 ) (20,419 ) Total operating income $ 24,823 $ 22,478 $ 40,577 $ 44,076 Capital Expenditures Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Engineering and Other Scientific $ 929 $ 1,291 $ 2,707 $ 2,104 Environmental and Health 13 47 56 98 Total segment capital expenditures 942 1,338 2,763 2,202 Corporate capital expenditures 5,958 801 10,478 6,747 Total capital expenditures $ 6,900 $ 2,139 $ 13,241 $ 8,949 Depreciation and Amortization Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Engineering and Other Scientific $ 1,170 $ 1,121 $ 2,291 $ 2,216 Environmental and Health 48 41 93 80 Total segment depreciation and amortization 1,218 1,162 2,384 2,296 Corporate depreciation and amortization 424 432 848 853 Total depreciation and amortization $ 1,642 $ 1,594 $ 3,232 $ 3,149 No single client comprised more than 10% of the Company’s revenues during the three and six months ended June 28, 2019. One client comprised 12% of the Company’s revenues during the three months ended June 29, 2018. The same client comprised 14% of the Company’s revenues during the six months ended June 29, 2018. No other single client comprised more than 10% |
Leases
Leases | 6 Months Ended |
Jun. 28, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | Note 11: Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, current operating lease liabilities, and long-term operating lease liabilities in the Company’s condensed consolidated balance sheet. The Company does not have any finance leases as of June 28, 2019. 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 may 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 condensed consolidated statement of cash flows. The Company leases office, laboratory, and storage space in 13 states and the District of Columbia, as well as in Germany, China, Hong Kong, Singapore, Switzerland and the United Ki ngdom. Leases for these office , laboratory, and storage facilities have terms generally ranging between one and ten 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 fifteen-year periods. As of June 28, 2019, the Company has determined that exercise of the renewal options is not reasonably certain and thus the extension is not included in the lease term. The Company’s equipment leases are included in the ROU asset and liability balances but are not material. The Company leases excess space in its Silicon Valley facility. Rental income of $741,000 and $718,000 was included in other income for the three months ended June 28, 2019 and June 29, 2018, respectively. Rental income of $1,482,000 and $1,391,000 was included in other income for the six months ended June 28, 2019 and June 29, 2018, respectively. The components of lease expense included in other operating expenses on the condensed consolidated statement of income were as follows: (In thousands) Three Months Ended June 28, 2019 Six Months Ended June 28, 2019 Operating lease cost $ 1,867 $ 3,737 Variable lease cost 404 784 Short-term lease cost 134 229 Supplemental cash flow information related to operating leases was as follows: (In thousands) Three Months Ended June 28, 2019 Six Months Ended June 28, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,747 $ 4,281 Supplemental balance sheet information related to operating leases was as follows: June 28, 2019 Weighted Average Remaining Lease Term 5.5 years Weighted Average Discount Rate 4.5% Maturities of operating lease liabilities as of June 28, 2019: Operating (In thousands) Leases 2019 (excluding six months ended June 28, 2019) $ 3,110 2020 6,173 2021 5,129 2022 3,985 2023 2,601 2024 1,693 2025 1,491 2026 1,507 2027 1,466 Total lease payments $ 27,155 Less imputed interest (3,741 ) Total lease liability $ 23,414 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 28, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12: Contingencies 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13: Subsequent Events On July 18, 2019, the Company’s Board of Directors announced a cash dividend of $0.16 per share of the Company’s common stock, payable September 20, 2019 to stockholders of record as of September 6, 2019. The Company expects to continue paying quarterly dividends in the future, subject to declaration by the Company’s Board of Directors. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Exponent, Inc. (referred to as the “Company” or “Exponent”) is an engineering and scientific consulting firm that provides solutions to complex problems. The Company operates on a 52-53 week fiscal year ending on the Friday closest to the last day of December. The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission. Accordingly, they do not contain all the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments which are necessary for the fair presentation of the condensed consolidated financial statements have been included and all such adjustments are of a normal and recurring nature. The operating results for the three and six months ended June 28, 2019 are not necessarily representative of the results of future quarterly or annual periods. The following information should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2018, which was filed with the U.S. Securities and Exchange Commission on February 22, 2019. The unaudited condensed consolidated financial statements include the accounts of Exponent, Inc. and its subsidiaries, which are all wholly owned. All intercompany accounts and transactions have been eliminated in consolidation. |
Stock Split | Stock Split. On May 31, 2018, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation to (i) increase the number of authorized shares of common stock to 120,000,000 and (ii) effect a two-for-one stock split. As a result of the stock split, each shareholder of record at the close of business on May 31, 2018, received one additional share of common stock for each share of common stock owned by such shareholder. Restricted stock unit awards and stock option awards have also been adjusted to reflect the two-for-one stock split. For periods prior to the stock split, all share and per share data in the Company’s condensed consolidated financial statements and related notes have been retroactively adjusted to reflect the stock split. |
Use of Estimates | Use of Estimates. 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. Items subject to such estimates and assumptions include accounting for revenue recognition and estimating the allowance for contract losses and doubtful accounts. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted the ASU as of the beginning of its first quarter of fiscal 2019. A modified retrospective transition approach is required, requiring the application of the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company adopted the new standard on December 29, 2018 using the effective date as the date of initial application. Consequently, financial information was not updated and the disclosures required under the new standard were not provided for dates and periods before December 29, 2018. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits it not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. The Company elected the practical expedient to include both lease and non-lease components as a single component and account for it as a lease for all asset classes. The Company also elected to apply the short-term lease exception for all leases. Under the short-term lease exception, the Company will not recognize ROU assets or lease liabilities for leases that, at the acquisition date, have a remaining lease term of 12 months or less. The ASU had a material impact to the Company’s condensed consolidated balance sheet, but did not have an impact on its condensed consolidated statement of income. The most significant impact was the recognition of ROU assets and lease liabilities for its operating leases. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The fair value of these certain financial assets and liabilities was determined using the following inputs at June 28, 2019: Fair Value Measurements at Reporting Date Using (In thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market securities (1) $ 4,222 $ 4,222 $ - $ - Fixed income available-for-sale securities (2) 90,022 - 90,022 - Fixed income trading securities held in deferred compensation plan (3) 21,845 21,845 - - Equity trading securities held in deferred compensation plan (3) 47,540 47,540 - - Total $ 163,629 $ 73,607 $ 90,022 $ - Liabilities Deferred compensation plan (4) 69,742 69,742 - - Total $ 69,742 $ 69,742 $ - $ - (1) Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet. (2) Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. (3) Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. (4) Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet. The fair value of these certain financial assets and liabilities was determined using the following inputs at December 2 8 , 201 8 : Fair Value Measurements at Reporting Date Using Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market securities (1) $ 6,213 $ 6,213 $ - $ - Fixed income available for sale securities (2) 81,495 - 81,495 - Fixed income trading securities held in deferred compensation plan (3) 18,618 18,618 - - Equity trading securities held in deferred compensation plan (3) 39,160 39,160 - - Total $ 145,486 $ 63,991 $ 81,495 $ - Liabilities Deferred compensation plan (4) 59,349 59,349 - - Total $ 59,349 $ 59,349 $ - $ - (1) Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet. (2) Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. (3) Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. (4) Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet. |
Cash, cash equivalents and short-term investments | Cash, cash equivalents and short-term investments consisted of the following as of June 28, 2019: Gross Gross Amortized Unrealized Unrealized Estimated (In thousands) Cost Gains Losses Fair Value Classified as current assets: Cash $ 95,230 $ - $ - $ 95,230 Cash equivalents: Money market securities 4,222 - - 4,222 U.S. Treasury securities 5,000 - - 5,000 Total cash equivalents 9,222 - - 9,222 Total cash and cash equivalents 104,452 - - 104,452 Short-term investments: U.S. Treasury and agency securities 89,623 423 (24 ) 90,022 Total short-term investments 89,623 423 (24 ) 90,022 Total cash, cash equivalents and short-term investments $ 194,075 $ 423 $ (24 ) $ 194,474 Cash, cash equivalents and short-term investments consisted of the following as of December 2 8 , 201 8 : Amortized Unrealized Unrealized Estimated (In thousands) Cost Gains Losses Fair Value Classified as current assets: Cash $ 120,846 $ - $ - $ 120,846 Cash equivalents: Money market securities 6,213 - - 6,213 Total cash equivalents 6,213 - - 6,213 Total cash and cash equivalents 127,059 - - 127,059 Short-term investments: U.S. Treasury and agency securities 81,634 91 (230 ) 81,495 Total short-term investments 81,634 91 (230 ) 81,495 Total cash, cash equivalents and short-term investments $ 208,693 $ 91 $ (230 ) $ 208,554 |
Summary of Cost and Estimated Fair Value of Short Term Fixed Income Securities | The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated effective maturities as of June 28, 2019: Amortized Estimated (In thousands) Cost Fair Value Due within one year $ 51,880 $ 51,910 Due between one and two years 37,743 38,112 Total $ 89,623 $ 90,022 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Earnings Per Share [Abstract] | |
Reconciles Shares to Calculate Basic and Diluted Net Income Per Share | The following schedule reconciles the shares used to calculate basic and diluted net income per share: Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Shares used in basic per share computation 52,745 53,008 52,641 52,876 Effect of dilutive common stock options outstanding 470 398 463 362 Effect of dilutive restricted stock units outstanding 657 789 745 873 Shares used in diluted per share computation 53,872 54,195 53,849 54,111 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosure of Cash Flow Information | The following is supplemental disclosure of cash flow information: Six Months Ended (In thousands) June 28, 2019 June 29, 2018 Cash paid during period: Income taxes $ 5,972 $ 12,217 Non-cash investing and financing activities: Unrealized gain (loss) on short-term investments $ 403 $ (21 ) Vested stock unit awards issued to settle accrued bonuses $ 7,947 $ 7,643 Accrual for capital expenditures $ 1,978 $ 691 Right-of-use asset obtained in exchange for operating lease obligations $ 26,152 $ - |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, Net | At June 28, 2019 and December 28, 2018, accounts receivable, net, was comprised of the following: June 28, December 28, (In thousands) 2019 2018 Billed accounts receivable $ 87,398 $ 73,905 Unbilled accounts receivable 47,679 35,975 Allowance for contract losses and doubtful accounts (5,342 ) (4,066 ) Total accounts receivable, net $ 129,735 $ 105,814 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Segment information for the three and six months ended June 28, 2019 and June 29, 2018 follows: Revenues Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Engineering and Other Scientific $ 86,820 $ 77,080 $ 167,074 $ 154,127 Environmental and Health 19,686 18,541 38,463 37,951 Total revenues $ 106,506 $ 95,621 $ 205,537 $ 192,078 Operating Income Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Engineering and Other Scientific $ 29,252 $ 25,802 $ 55,226 $ 51,715 Environmental and Health 7,039 6,156 13,235 12,780 Total segment operating income 36,291 31,958 68,461 64,495 Corporate operating expense (11,468 ) (9,480 ) (27,884 ) (20,419 ) Total operating income $ 24,823 $ 22,478 $ 40,577 $ 44,076 Capital Expenditures Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Engineering and Other Scientific $ 929 $ 1,291 $ 2,707 $ 2,104 Environmental and Health 13 47 56 98 Total segment capital expenditures 942 1,338 2,763 2,202 Corporate capital expenditures 5,958 801 10,478 6,747 Total capital expenditures $ 6,900 $ 2,139 $ 13,241 $ 8,949 Depreciation and Amortization Three Months Ended Six Months Ended (In thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Engineering and Other Scientific $ 1,170 $ 1,121 $ 2,291 $ 2,216 Environmental and Health 48 41 93 80 Total segment depreciation and amortization 1,218 1,162 2,384 2,296 Corporate depreciation and amortization 424 432 848 853 Total depreciation and amortization $ 1,642 $ 1,594 $ 3,232 $ 3,149 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 28, 2019 | |
Leases [Abstract] | |
Lease, Cost | (In thousands) Three Months Ended June 28, 2019 Six Months Ended June 28, 2019 Operating lease cost $ 1,867 $ 3,737 Variable lease cost 404 784 Short-term lease cost 134 229 |
Supplemental Cash Flow Information Related to Operating Lease | Supplemental cash flow information related to operating leases was as follows: (In thousands) Three Months Ended June 28, 2019 Six Months Ended June 28, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,747 $ 4,281 |
Supplemental Balance Sheet Information Related to Operating Lease | Supplemental balance sheet information related to operating leases was as follows: June 28, 2019 Weighted Average Remaining Lease Term 5.5 years Weighted Average Discount Rate 4.5% |
Maturities of Lease Liabilities | Maturities of operating lease liabilities as of June 28, 2019: Operating (In thousands) Leases 2019 (excluding six months ended June 28, 2019) $ 3,110 2020 6,173 2021 5,129 2022 3,985 2023 2,601 2024 1,693 2025 1,491 2026 1,507 2027 1,466 Total lease payments $ 27,155 Less imputed interest (3,741 ) Total lease liability $ 23,414 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - shares | Jun. 28, 2019 | Dec. 28, 2018 | May 31, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Common Stock, Shares Authorized | 120,000,000 | 120,000,000 | 120,000,000 |
Revenue Recognition- Additional
Revenue Recognition- Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Revenues | $ 106,506,000 | $ 95,621,000 | $ 205,537,000 | $ 192,078,000 |
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Deferred Revenue, Revenue Recognized | $ 1,876,000 | $ 4,481,000 | ||
Subcontractor Fees Not Included In Revenues | 6,200,000 | $ 5,800,000 | 10,400,000 | $ 11,400,000 |
Engineering and Other Scientific [Member] | Time And Materials Contracts [Member] | ||||
Revenues | 71,761,000 | 62,347,000 | 137,140,000 | 126,948,000 |
Engineering and Other Scientific [Member] | Fixed Price Contracts [Member] | ||||
Revenues | 15,059,000 | 14,733,000 | 29,934,000 | 27,179,000 |
Environmental and Health [Member] | Time And Materials Contracts [Member] | ||||
Revenues | 18,792,000 | 17,618,000 | 36,810,000 | 36,188,000 |
Environmental and Health [Member] | Fixed Price Contracts [Member] | ||||
Revenues | 894,000 | 923,000 | 1,653,000 | 1,763,000 |
Sales Revenue, Net [Member] | Time And Materials Contracts [Member] | ||||
Revenues | $ 90,553,000 | $ 79,965,000 | $ 173,950,000 | $ 163,136,000 |
Sales Revenue, Net [Member] | Time And Materials Contracts [Member] | Revenue from Rights Concentration Risk [Member] | ||||
Concentration Risk, Percentage | 85.00% | 84.00% | 85.00% | 85.00% |
Sales Revenue, Net [Member] | Fixed Price Contracts [Member] | ||||
Revenues | $ 15,953,000 | $ 15,656,000 | $ 31,587,000 | $ 28,942,000 |
Sales Revenue, Net [Member] | Fixed Price Contracts [Member] | Revenue from Rights Concentration Risk [Member] | ||||
Concentration Risk, Percentage | 15.00% | 16.00% | 15.00% | 15.00% |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Jun. 28, 2019 | Dec. 28, 2018 | |
Assets | |||
Money market securities | $ 194,474,000 | $ 208,554,000 | |
Trading securities held in deferred compensation plan | 69,385,000 | 57,778,000 | |
Total | 163,629,000 | 145,486,000 | |
Liabilities | |||
Deferred compensation plan | [1] | 69,742,000 | 59,349,000 |
Total | 69,742,000 | 59,349,000 | |
Money market securities | |||
Assets | |||
Money market securities | [2] | 4,222,000 | 6,213,000 |
Fixed income securities | |||
Assets | |||
Fixed income available-for-sale securities | [3] | 90,022,000 | 81,495,000 |
Trading securities held in deferred compensation plan | [4] | 21,845,000 | 18,618,000 |
Equity securities | |||
Assets | |||
Trading securities held in deferred compensation plan | [4] | 47,540,000 | 39,160,000 |
Fair Value, Inputs, Level 1 | |||
Assets | |||
Total | 73,607,000 | 63,991,000 | |
Liabilities | |||
Deferred compensation plan | [1] | 69,742,000 | 59,349,000 |
Total | 69,742,000 | 59,349,000 | |
Fair Value, Inputs, Level 1 | Money market securities | |||
Assets | |||
Money market securities | [2] | 4,222,000 | 6,213,000 |
Fair Value, Inputs, Level 1 | Fixed income securities | |||
Assets | |||
Fixed income available-for-sale securities | [3] | 0 | 0 |
Trading securities held in deferred compensation plan | [4] | 21,845,000 | 18,618,000 |
Fair Value, Inputs, Level 1 | Equity securities | |||
Assets | |||
Trading securities held in deferred compensation plan | [4] | 47,540,000 | 39,160,000 |
Fair Value, Inputs, Level 2 | |||
Assets | |||
Total | 90,022,000 | 81,495,000 | |
Liabilities | |||
Deferred compensation plan | [1] | 0 | 0 |
Total | 0 | 0 | |
Fair Value, Inputs, Level 2 | Money market securities | |||
Assets | |||
Money market securities | [2] | 0 | 0 |
Fair Value, Inputs, Level 2 | Fixed income securities | |||
Assets | |||
Fixed income available-for-sale securities | [3] | 90,022,000 | 81,495,000 |
Trading securities held in deferred compensation plan | [4] | 0 | 0 |
Fair Value, Inputs, Level 2 | Equity securities | |||
Assets | |||
Trading securities held in deferred compensation plan | [4] | 0 | 0 |
Fair Value, Inputs, Level 3 | |||
Assets | |||
Total | 0 | 0 | |
Liabilities | |||
Deferred compensation plan | [1] | 0 | 0 |
Total | 0 | 0 | |
Fair Value, Inputs, Level 3 | Money market securities | |||
Assets | |||
Money market securities | [2] | 0 | 0 |
Fair Value, Inputs, Level 3 | Fixed income securities | |||
Assets | |||
Fixed income available-for-sale securities | [3] | 0 | 0 |
Trading securities held in deferred compensation plan | [4] | 0 | 0 |
Fair Value, Inputs, Level 3 | Equity securities | |||
Assets | |||
Trading securities held in deferred compensation plan | [4] | $ 0 | $ 0 |
[1] | Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet. | ||
[2] | Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet. | ||
[3] | Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet. | ||
[4] | Included in prepaid expenses and other current assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. |
Cash, cash equivalents and shor
Cash, cash equivalents and short-term investments (Detail) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Fair Value Measurements [Line Items] | ||
Amortized Cost | $ 194,075 | $ 208,693 |
Gross Unrealized Gains | 423 | 91 |
Gross Unrealized Losses | (24) | (230) |
Estimated Fair Value | 194,474 | 208,554 |
Cash | ||
Fair Value Measurements [Line Items] | ||
Amortized Cost | 95,230 | 120,846 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 95,230 | 120,846 |
Money market securities | ||
Fair Value Measurements [Line Items] | ||
Amortized Cost | 4,222 | 6,213 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 4,222 | 6,213 |
U.S. Treasury securities | ||
Fair Value Measurements [Line Items] | ||
Amortized Cost | 5,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 5,000 | |
Total cash equivalents | ||
Fair Value Measurements [Line Items] | ||
Amortized Cost | 9,222 | 6,213 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 9,222 | 6,213 |
Total cash and cash equivalents | ||
Fair Value Measurements [Line Items] | ||
Amortized Cost | 104,452 | 127,059 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 104,452 | 127,059 |
U.S. Treasury and agency securities | ||
Fair Value Measurements [Line Items] | ||
Amortized Cost | 89,623 | 81,634 |
Gross Unrealized Gains | 423 | 91 |
Gross Unrealized Losses | (24) | (230) |
Estimated Fair Value | 90,022 | 81,495 |
Total short-term investments | ||
Fair Value Measurements [Line Items] | ||
Amortized Cost | 89,623 | 81,634 |
Gross Unrealized Gains | 423 | 91 |
Gross Unrealized Losses | (24) | (230) |
Estimated Fair Value | $ 90,022 | $ 81,495 |
Summarizes Cost And Estimated F
Summarizes Cost And Estimated Fair Value Of Short Term Fixed Income Securities (Detail) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Fair Value Disclosures [Abstract] | ||
Due within one year, Amortized Cost | $ 51,880 | |
Due between one and two years, Amortized Cost | 37,743 | |
Total Amortized Cost | 89,623 | |
Due within one year, Estimated Fair Value | 51,910 | |
Due between one and two years, Estimated Fair Value | 38,112 | |
Total Estimated Fair Value | $ 90,022 | $ 81,495 |
Reconciles the Denominators of
Reconciles the Denominators of the Company's Calculation for Basic and Diluted Net Income per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Schedule Of Earnings Per Share Basic and Diluted [Line Items] | ||||
Shares used in basic per share computation | 52,745 | 53,008 | 52,641 | 52,876 |
Shares used in diluted per share computation | 53,872 | 54,195 | 53,849 | 54,111 |
Employee Stock Option | ||||
Schedule Of Earnings Per Share Basic and Diluted [Line Items] | ||||
Effect of dilutive stock outstanding | 470 | 398 | 463 | 362 |
Restricted Stock Units (RSUs) | ||||
Schedule Of Earnings Per Share Basic and Diluted [Line Items] | ||||
Effect of dilutive stock outstanding | 657 | 789 | 745 | 873 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Income Statement [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Options Expiration Term | 10 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of annual bonus settled with fully vested restricted stock unit awards | 40.00% | |||
Vested Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation, holding period | 4 years | |||
Stock based compensation expense | $ 2,325,000 | $ 2,168,000 | $ 4,393,000 | $ 4,400,000 |
Unvested Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation, vesting period | 4 years | |||
Unvested Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 1,535,000 | 1,460,000 | $ 5,065,000 | 4,968,000 |
Unvested Restricted Stock Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recipient age to expense award on grant date | 59 years 6 months | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation, vesting period | 4 years | |||
Stock based compensation expense | $ 150,000 | $ 116,000 | $ 283,000 | $ 665,000 |
Vesting percentage of stock options granted per year | 25.00% | |||
Unvested Stock Options [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recipient age to expense award on grant date | 59 years 6 months |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | Jun. 28, 2019 | Jan. 31, 2019 | Oct. 19, 2016 |
Equity [Abstract] | |||
Stock Repurchase Program, Authorized Amount | $ 75,000,000 | $ 35,000,000 | |
Remaining authorized amount for repurchase of common stock | $ 92,462,000 |
Deferred Compensation Plans - A
Deferred Compensation Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | Dec. 28, 2018 | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Trading securities held in deferred compensation plan | $ 69,385,000 | $ 69,385,000 | $ 57,778,000 | |||
Deferred compensation plan | [1] | 69,742,000 | 69,742,000 | $ 59,349,000 | ||
Change in market value of trust assets | $ 2,184,000 | $ 1,043,000 | $ 8,053,000 | $ 737,000 | ||
Maximum | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Percentage of compensation deferred | 100.00% | |||||
[1] | Included in accrued payroll and employee benefits and deferred compensation plan liabilities on the Company’s unaudited condensed consolidated balance sheet. |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2019 | Mar. 29, 2019 | Jun. 29, 2018 | Mar. 30, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Cash paid during period: | ||||||
Income taxes | $ 5,972 | $ 12,217 | ||||
Non-cash investing and financing activities: | ||||||
Unrealized gain (loss) on short-term investments | $ 249 | $ 154 | $ 19 | $ (40) | 403 | (21) |
Vested stock unit awards issued to settle accrued bonuses | 7,947 | 7,643 | ||||
Accrual for capital expenditures | 1,978 | $ 691 | ||||
Right-of-use asset obtained in exchange for operating lease obligations | $ 26,152 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for contract losses and doubtful accounts | $ (5,342) | $ (4,066) |
Total accounts receivable, net | 129,735 | 105,814 |
Billed accounts receivable | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts Receivable | 87,398 | 73,905 |
Unbilled accounts receivable | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts Receivable | $ 47,679 | $ 35,975 |
Accounts Receivable, Net - Addi
Accounts Receivable, Net - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 28, 2019 | Dec. 28, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, net current | $ 129,735 | $ 105,814 |
PG&E [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts receivable, net current | $ 3,000 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 106,506 | $ 95,621 | $ 205,537 | $ 192,078 |
Operating Income | 24,823 | 22,478 | 40,577 | 44,076 |
Capital Expenditures | 6,900 | 2,139 | 13,241 | 8,949 |
Depreciation and Amortization | 1,642 | 1,594 | 3,232 | 3,149 |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | 36,291 | 31,958 | 68,461 | 64,495 |
Capital Expenditures | 942 | 1,338 | 2,763 | 2,202 |
Depreciation and Amortization | 1,218 | 1,162 | 2,384 | 2,296 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | (11,468) | (9,480) | (27,884) | (20,419) |
Capital Expenditures | 5,958 | 801 | 10,478 | 6,747 |
Depreciation and Amortization | 424 | 432 | 848 | 853 |
Engineering and Other Scientific | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 86,820 | 77,080 | 167,074 | 154,127 |
Operating Income | 29,252 | 25,802 | 55,226 | 51,715 |
Capital Expenditures | 929 | 1,291 | 2,707 | 2,104 |
Depreciation and Amortization | 1,170 | 1,121 | 2,291 | 2,216 |
Environmental and Health | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 19,686 | 18,541 | 38,463 | 37,951 |
Operating Income | 7,039 | 6,156 | 13,235 | 12,780 |
Capital Expenditures | 13 | 47 | 56 | 98 |
Depreciation and Amortization | $ 48 | $ 41 | $ 93 | $ 80 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | Dec. 28, 2018 | |
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 12.00% | 14.00% | |||
Accounts Receivable [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of account receivable | 10.00% | 10.00% | 10.00% |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 | |
Other Income [Member] | ||||
Rental Income | $ 741,000 | $ 718,000 | $ 1,482,000 | $ 1,391,000 |
Phoenix Arizona [Member] | ||||
Lessee, Operating Lease, Term of Contract | 30 years | 30 years |
Components of Lease Expense (De
Components of Lease Expense (Details) - Other Operating Income (Expense) [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 28, 2019 | Jun. 28, 2019 | |
Operating lease cost | $ 1,867 | $ 3,737 |
Variable lease cost | 404 | 784 |
Short-term lease cost | $ 134 | $ 229 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 28, 2019 | Jun. 28, 2019 | |
Cash paid for amounts included in the measurement of operating lease liabilities: | ||
Operating cash flows from operating leases | $ 1,747 | $ 4,281 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information (Details) | Jun. 28, 2019 |
Leases [Abstract] | |
Weighted Average Remaining Lease Term | 5 years 6 months |
Weighted Average Discount Rate | 4.50% |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 28, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding six months ended June 28, 2019) | $ 3,110 |
2020 | 6,173 |
2021 | 5,129 |
2022 | 3,985 |
2023 | 2,601 |
2024 | 1,693 |
2025 | 1,491 |
2026 | 1,507 |
2027 | 1,466 |
Total lease payments | 27,155 |
Less imputed interest | (3,741) |
Total lease liability | $ 23,414 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Jul. 18, 2019 | Jun. 28, 2019 | Jun. 29, 2018 | Jun. 28, 2019 | Jun. 29, 2018 |
Subsequent Event [Line Items] | |||||
Cash dividends declared per common share (in dollars per share) | $ 0.16 | $ 0.13 | $ 0.32 | $ 0.26 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared per common share (in dollars per share) | $ 0.16 | ||||
Dividends Payable, Date Declared | Jul. 18, 2019 | ||||
Dividends Payable, Date to be Paid | Sep. 20, 2019 | ||||
Dividends Payable, Date of Record | Sep. 6, 2019 |