10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 10-Q

 ___________________________

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 3, 2015

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File Number 0-18655

EXPONENT, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	77-0218904
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

149 COMMONWEALTH DRIVE, MENLO PARK, CALIFORNIA	94025
(Address of principal executive office)	(Zip Code)

(650) 326-9400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company ¨
		(Do not check if a smaller  reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of May 1, 2015, the latest practicable date, the registrant had 12,990,741 shares of common stock, $0.001 par value per share, outstanding.

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EXPONENT, INC.

FORM 10-Q

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited):
	Condensed Consolidated Balance Sheets April 3, 2015 and January 2, 2015	3
	Condensed Consolidated Statements of Income Three Months Ended April 3, 2015 and April 4, 2014	4
	Condensed Consolidated Statements of Comprehensive Income Three Months Ended April 3, 2015 and April 4, 2014	5
	Condensed Consolidated Statements of Cash Flows Three Months Ended April 3, 2015 and April 4, 2014	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	23
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	24
Signatures		25

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

EXPONENT, INC.

Condensed Consolidated Balance Sheets

April 3, 2015 and January 2, 2015

(in thousands, except par value)

(unaudited)

	April 3,			January 2,
	2015			2015
Assets
Current assets:
Cash and cash equivalents	$	123,658		$	129,490
Short-term investments		21,368			24,913
Accounts receivable, net of allowance for doubtful accounts
of $3,596 and $3,386 at April 3, 2015 and
January 2, 2015, respectively		88,076			86,368
Prepaid expenses and other assets		12,121			14,727
Deferred income taxes		11,602			11,002
Total current assets		256,825			266,500
Property, equipment and leasehold improvements, net		27,587			28,264
Goodwill		8,607			8,607
Deferred income taxes		25,917			24,612
Deferred compensation plan assets		37,148			36,195
Other assets		1,159			1,121
Total assets	$	357,243		$	365,299
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities	$	8,933		$	8,935
Accrued payroll and employee benefits		40,169			62,184
Deferred revenues		5,776			8,226
Total current liabilities		54,878			79,345
Other liabilities		1,985			1,862
Deferred compensation		44,648			37,745
Deferred rent		1,914			2,059
Total liabilities		103,425			121,011
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized;
16,427 shares issued at April 3, 2015 and January 2, 2015		16			16
Additional paid-in capital		174,161			160,225
Accumulated other comprehensive income
Investment securities, available-for-sale		7			14
Foreign currency translation adjustments		(1,419	)		(918	)
		(1,412	)		(904	)
Retained earnings		248,089			246,961
Treasury stock, at cost; 3,436 and 3,556 shares held at
April 3, 2015 and January 2, 2015, respectively		(167,036	)		(162,010	)
Total stockholders’ equity		253,818			244,288
Total liabilities and stockholders’ equity	$	357,243		$	365,299

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

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EXPONENT, INC.

Condensed Consolidated Statements of Income

For the Three Months Ended April 3, 2015 and April 4, 2014

(in thousands, except per share data)

(unaudited)

	Three Months Ended
	April 3, 2015		April 4, 2014
Revenues:
Revenues before reimbursements	$	76,141	$	72,967
Reimbursements		4,152		2,995
Revenues		80,293		75,962
Operating expenses:
Compensation and related expenses		51,115		48,858
Other operating expenses		6,510		6,317
Reimbursable expenses		4,152		2,995
General and administrative expenses		3,488		3,698
Total operating expenses		65,265		61,868
Operating income		15,028		14,094
Other income, net:
Interest income, net		34		44
Miscellaneous income, net		2,009		1,227
Total other income, net		2,043		1,271
Income before income taxes		17,071		15,365
Income taxes		6,738		6,211
Net income	$	10,333	$	9,154
Net income per share:
Basic	$	0.78	$	0.68
Diluted	$	0.75	$	0.66
Shares used in per share computations:
Basic		13,311		13,537
Diluted		13,695		13,940
Cash dividends declared per common share	$	0.30	$	0.25

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements

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EXPONENT, INC.

Condensed Consolidated Statements of Comprehensive Income

For the Three Months Ended April 3, 2015 and April 4, 2014

(in thousands)

(unaudited)

	Three Months Ended
	April 3, 2015			April 4, 2014
Net income	$	10,333		$	9,154
Other comprehensive income (loss):
Foreign currency translation
adjustments, net of tax		(501	)		52
Unrealized (losses) gains on available-for-sale investment securities
arising during the period, net of tax		(7	)		14
Comprehensive income	$	9,825		$	9,220

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements

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EXPONENT, INC.

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended April 3, 2015 and April 4, 2014

(in thousands)

(unaudited)

	Three Months Ended
	April 3, 2015			April 4, 2014
Cash flows from operating activities:
Net income	$	10,333		$	9,154
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization of property, equipment and
leasehold improvements		1,381			1,322
Amortization of premiums and accretion of discounts on
short-term investments		213			225
Deferred rent		(145	)		(99	)
Provision for doubtful accounts		390			249
Stock-based compensation		5,221			5,293
Deferred income tax provision		(1,938	)		(3,324	)
Excess tax benefit from equity incentive plans		(4,431	)		(4,499	)
Changes in operating assets and liabilities:
Accounts receivable		(2,098	)		(8,215	)
Prepaid expenses and other assets		2,689			(4,988	)
Accounts payable and accrued liabilities		4,553			8,167
Accrued payroll and employee benefits		(12,017	)		(9,838	)
Deferred revenues		(2,450	)		433
Net cash provided by (used in) operating activities		1,701			(6,120	)
Cash flows from investing activities:
Capital expenditures		(627	)		(915	)
Maturity of short-term investments		3,320			1,140
Net cash provided by investing activities		2,693			225
Cash flows from financing activities:
Excess tax benefit from equity incentive plans		4,431			4,499
Payroll taxes for restricted stock units		(7,267	)		(6,267	)
Repurchase of common stock		(3,500	)		(6,831	)
Exercise of share-based payment awards		289			329
Dividends and dividend equivalents rights		(4,023	)		(3,310	)
Net cash used in financing activities		(10,070	)		(11,580	)
Effect of foreign currency exchange rates on cash and cash equivalents		(156	)		148
Net decrease in cash and cash equivalents		(5,832	)		(17,327	)
Cash and cash equivalents at beginning of period		129,490			122,948
Cash and cash equivalents at end of period	$	123,658		$	105,621

The accompanying notes are an integral part of these Unaudited Condensed Consolidated Financial Statements.

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EXPONENT, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 of the 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 months ended April 3, 2015 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 January 2, 2015 which was filed with the U.S. Securities and Exchange Commission on March 2, 2015.

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.

Dividend. The Company declared and paid cash dividends per common share during the periods presented as follows:

	Fiscal Year 2015
	Dividends		Amount
	Per Share		(in thousands)
First Quarter	$	0.30	$	3,858
			$	3,858

	Fiscal Year 2014
	Dividends		Amount
	Per Share		(in thousands)
First Quarter	$	0.25	$	3,262
Second Quarter	$	0.25		3,270
Third Quarter	$	0.25		3,262
Fourth Quarter	$	0.25		3,216
			$	13,010

The Company expects to continue paying quarterly dividends in the future, subject to declaration by the Company’s Board of Directors.

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. Significant items subject to such estimates and assumptions include accounting for revenue recognition and estimating the allowance for doubtful accounts and contract losses. Actual results could differ from those estimates.

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Recently Adopted Accounting Pronouncements. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles (“GAAP”) when it becomes effective. The new standard is effective for the Company on the first day of fiscal 2017 (December 31, 2016), or 2018 if the FASB’s proposal for a one year deferral is approved. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

Note 2: 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 have been no transfers between fair value measurement levels during the three months ended April 3, 2015 and April 4, 2014. 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 April 3, 2015:

	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)	$	48,940	$	48,940	$	-	$	-
Fixed income available-
for-sale securities (2)		21,368		-		21,368		-
Fixed income trading
securities held in deferred
compensation plan (3)		12,376		12,376		-		-
Equity trading securities
held in deferred
compensation plan (3)		31,542		31,542		-		-
Total	$	114,226	$	92,858	$	21,368	$	-
Liabilities
Deferred compensation
plan (4)		51,419		51,419		-		-
Total	$	51,419	$	51,419	$	-	$	-

⁽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 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 on the Company’s unaudited condensed consolidated balance sheet.

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The fair value of these certain financial assets and liabilities was determined using the following inputs at January 2, 2015:

	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)	$	45,478	$	45,478	$	-	$	-
Fixed income available-
for-sale securities (2)		24,913		-		24,913		-
Fixed income trading
securities held in deferred
compensation plan (3)		9,672		9,672		-		-
Equity trading securities
held in deferred
compensation plan (3)		34,176		34,176		-		-
Total	$	114,239	$	89,326	$	24,913	$	-
Liabilities
Deferred compensation
plan (4)		45,394		45,394		-		-
Total	$	45,394	$	45,394	$	-	$	-

⁽¹⁾ Included in cash and cash equivalents on the Company’s consolidated balance sheet.

⁽²⁾ Included in short-term investments on the Company’s consolidated balance sheet.

⁽³⁾ Included in prepaid expenses and other assets and deferred compensation plan assets on the Company’s consolidated balance sheet.

⁽⁴⁾ Included in accrued payroll and employee benefits and deferred compensation on the Company’s consolidated balance sheet.

Fixed income available-for-sale securities as of April 3, 2015 and January 2, 2015 represent primarily obligations of state and local government agencies. Fixed income and equity trading securities represent mutual funds held in the Company’s deferred compensation plan. See Note 6 for additional information about the Company’s deferred compensation plan.

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Cash, cash equivalents and short-term investments consisted of the following as of April 3, 2015:

	Amortized		Unrealized		Unrealized			Estimated
(In thousands)	Cost		Gains		Losses			Fair Value
Classified as current assets:
Cash	$	74,718	$	-	$	-		$	74,718
Cash equivalents:
Money market securities		48,940		-		-			48,940
Total cash equivalents		48,940		-		-			48,940
Total cash and cash equivalents		123,658		-		-			123,658
Short-term investments:
State and municipal bonds		21,357		13		(2	)		21,368
Total short-term investments		21,357		13		(2	)		21,368
Total cash, cash equivalents
and short-term investments	$	145,015	$	13	$	(2	)	$	145,026

Cash, cash equivalents and short-term investments consisted of the following as of January 2, 2015:

	Amortized		Unrealized		Unrealized			Estimated
(In thousands)	Cost		Gains		Losses			Fair Value
Classified as current assets:
Cash	$	84,012	$	-	$	-		$	84,012
Cash equivalents:
Money market securities		45,478		-		-			45,478
Total cash equivalents		45,478		-		-			45,478
Total cash and cash equivalents		129,490		-		-			129,490
Short-term investments:
State and municipal bonds		24,890		27		(4	)		24,913
Total short-term investments		24,890		27		(4	)		24,913
Total cash, cash equivalents
and short-term investments	$	154,380	$	27	$	(4	)	$	154,403

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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 April 3, 2015:

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due within one year	$	18,739	$	18,750
Due between one and two years		2,618		2,618
Total	$	21,357	$	21,368

At April 3, 2015 and January 2, 2015, 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 consolidated balance sheet at April 3, 2015 and January 2, 2015, but require disclosure of their fair values: accounts receivable, other assets and accounts payable. The estimated fair value of such instruments at April 3, 2015 and January 2, 2015 approximates their carrying value as reported on the consolidated balance sheet.

There were no other-than-temporary impairments or credit losses related to available-for-sale securities during the three months ended April 3, 2015 and April 4, 2014.

Note 3: 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
(In thousands)	April 3, 2015		April 4, 2014
Shares used in basic per share computation		13,311		13,537
Effect of dilutive common stock options outstanding		71		79
Effect of dilutive restricted stock units outstanding		313		324
Shares used in diluted per share computation		13,695		13,940

Common stock options to purchase 10,989 shares were excluded from the diluted per share calculation for the three months ended April 3, 2015 due to their antidilutive effect. The weighted-average exercise price for the antidilutive shares was $88.39 for the three months ended April 3, 2015. There were no options excluded from the diluted per share calculations for the three months ended April 4, 2014.

Note 4: 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.

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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 $1,693,000 and $1,586,000 during the three months ended April 3, 2015 and April 4, 2014, respectively. The value of the unvested restricted stock unit awards granted, adjusted for estimated forfeitures, 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 $3,131,000 and $3,227,000 during the three months ended April 3, 2015 and April 4, 2014, 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. For options granted on or after January 1, 2012, all 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 Company grants options at exercise prices equal to the fair value of the Company’s common stock on the date of grant. The Company recorded stock-based compensation expense associated with stock option grants of $397,000 and $480,000 during the three months ended April 3, 2015 and April 4, 2014, 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 and post-vesting forfeiture and expiration data to estimate the expected term of options granted. The historical volatility of the Company’s common stock over a period of time equal to the expected term of the options granted was used to estimate expected volatility. The risk-free interest rate used in the option-pricing model was based on United States Treasury zero-coupon issues with remaining terms similar to the expected term on the options. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. Historical data was used to estimate pre-vesting option forfeitures and stock-based compensation expense was recorded only for those awards that are expected to vest. All stock-based payment awards are recognized on a straight-line basis over the requisite service periods of the awards.

Note 5: Treasury Stock

On February 9, 2012, the Company’s Board of Directors authorized $35,000,000 for the repurchase of the Company’s common stock. On February 15, 2013, the Company’s Board of Directors authorized an additional $35,000,000 for the repurchase of the Company’s common stock. On May 29, 2014, the Company’s Board of Directors authorized an additional $35,000,000 for the repurchase of the Company’s common stock.

The Company repurchased 40,483 shares of its common stock for $3,500,000 during the three months ended April 3, 2015.  The Company repurchased 102,719 shares of its common stock for $7,631,000 during the three months ended April 4, 2014.  As of April 3, 2015, the Company had remaining authorization under its stock repurchase plans of $31,578,000 to repurchase shares of common stock.

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Net losses related to the re-issuance of treasury stock to settle restricted stock unit and stock option awards of $4,943,000 and $6,050,000 were recorded as a reduction to retained earnings during the three months ended April 3, 2015 and April 4, 2014, respectively.

Note 6: 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 April 3, 2015 and January 2, 2015, the invested amounts under the plans totaled $43,918,000 and $43,848,000, respectively. These assets are classified as trading securities and are recorded at fair value with changes recorded as adjustments to other income and expense.

As of April 3, 2015 and January 2, 2015, vested amounts due under the plans totaled $51,419,000 and $45,394,000, respectively. Changes in the liability are recorded as adjustments to compensation expense. During the three months ended April 3, 2015 and April 4, 2014, the Company recognized compensation expense of $1,381,000 and $731,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as income in other income (expense), net.

Note 7: Supplemental Cash Flow Information

The following is supplemental disclosure of cash flow information:

	Three Months Ended
(In thousands)	April 3, 2015			April 4, 2014
Cash paid during period:
Income taxes	$	390		$	428
Non-cash investing and financing activities:
Unrealized (loss) gain on short-term investments	$	(7	)	$	14
Vested stock unit awards issued to settle accrued bonuses	$	6,169		$	6,008
Stock repurchases payable to broker	$	-		$	800

Note 8: Accounts Receivable, Net

At April 3, 2015 and January 2, 2015, accounts receivable, net, was comprised of the following:

	April 3,			January 2,
(In thousands)	2015			2015
Billed accounts receivable	$	58,799		$	63,331
Unbilled accounts receivable		32,873			26,423
Allowance for doubtful accounts		(3,596	)		(3,386	)
Total accounts receivable, net	$	88,076		$	86,368

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Note 9: Segment Reporting

The Company has two operating segments based on two primary areas of service. The Engineering and Other Scientific operating segment is a broad service group providing technical consulting in different practices primarily in engineering. The Environmental and Health operating segment provides services in the area of environmental, epidemiology and health risk analysis. This operating 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 for the three months ended April 3, 2015 and April 4, 2014 follows:

Revenues
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	59,801	$	55,827
Environmental and Health		20,492		20,135
Total revenues	$	80,293	$	75,962

Operating Income
	Three Months Ended
(In thousands)	April 3, 2015			April 4, 2014
Engineering and Other Scientific	$	19,245		$	18,818
Environmental and Health		6,464			5,973
Total segment operating income		25,709			24,791
Corporate operating expense		(10,681	)		(10,697	)
Total operating income	$	15,028		$	14,094

Capital Expenditures
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	392	$	530
Environmental and Health		24		55
Total segment capital expenditures		416		585
Corporate capital expenditures		211		330
Total capital expenditures	$	627	$	915

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Depreciation and Amortization
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	1,104	$	873
Environmental and Health		43		47
Total segment depreciation and amortization		1,147		920
Corporate depreciation and amortization		234		402
Total depreciation and amortization	$	1,381	$	1,322

No single customer comprised more than 10% of the Company’s revenues during the three months ended April 3, 2015 and April 4, 2014. No single customer comprised more than 10% of the Company’s accounts receivable at April 3, 2015 and January 2, 2015.

Note 10: Goodwill

Below is a breakdown of goodwill reported by segment as of April 3, 2015:

	Environmental		Engineering and
(In thousands)	and Health		Other Scientific		Total
Goodwill	$	8,099	$	508	$	8,607

There were no acquisitions, dispositions, impairments or other changes in the carrying amount of goodwill, nor any changes in the composition of the Company’s reporting units, during the three months ended April 3, 2015.

Note 11: 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.

Note 12: Subsequent Event

On April 22, 2015, the Company announced that its Board of Directors approved a two-for-one stock split of its common stock and a change in the number of authorized shares of common and preferred stock to 80 million and 2 million, respectively, each subject to stockholder approval of both the split and the change in authorized shares at the 2015 annual meeting of stockholders on May 28, 2015. If the Company’s stockholders approve the stock split and the change in authorized shares, each stockholder of record at the close of business on May 28, 2015 will receive one additional share of common stock for every outstanding share of common stock held on the record date.

On April 22, 2015, the Company announced that its Board of Directors declared a cash dividend to be paid on June 26, 2015 to all common stockholders of record as of June 12, 2015. If the proposed stock split and the change in authorized shares are approved by stockholders the cash dividend will be $0.15 per share after giving effect to the split. If the proposed stock split, the change in authorized shares, or both are not approved by stockholders (such that the split does not occur), the cash dividend will be $0.30 per share.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included herein and with our audited consolidated financial statements and notes thereto for the fiscal year ended January 2, 2015, which are contained in our fiscal 2014 Annual Report on Form 10-K which was filed with the U.S. Securities and Exchange Commission on March 2, 2015.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Such forward-looking statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. When used in this document the words “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in general and industry specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our fiscal 2014 Annual Report on Form 10-K under the heading “Risk Factors” and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. Due to such uncertainties and risks, you are warned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company does not intend to release publicly any updates or revisions to any such forward-looking statements.

Business Overview

Exponent, Inc. is an engineering and scientific consulting firm that provides solutions to complex problems. Our multidisciplinary team of scientists, physicians, engineers and business consultants brings together more than 90 different technical disciplines to solve complicated issues facing industry and business today. Our services include analysis of product development, product recall, regulatory compliance, and discovery of potential problems related to products, people or property and impending litigation.

CRITICAL ACCOUNTING ESTIMATES

In preparing our unaudited condensed consolidated financial statements, we make assumptions, judgments and estimates that can have a significant impact on our revenue, operating income and net income, as well as on the value of certain assets and liabilities on our consolidated balance sheet. We base our assumptions, judgments and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. On a regular basis we evaluate our assumptions, judgments and estimates and make changes accordingly. We believe that the assumptions, judgments and estimates involved in the accounting for revenue recognition and estimating the allowance for doubtful accounts and contract losses have the greatest potential impact on our consolidated financial statements, so we consider these to be our critical accounting policies. Historically, our assumptions, judgments and estimates relative to our critical accounting policies have not differed materially from actual results. Policies covering revenue recognition and estimating the allowance for doubtful accounts and contract losses are described in our fiscal 2014 Annual Report on Form 10-K under “Critical Accounting Estimates” and Note 1 (Summary of Significant Accounting Policies) of the Notes to Consolidated Financial Statements.

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RESULTS OF CONSOLIDATED OPERATIONS

Executive Summary

Revenues for the first quarter of 2015 increased 6% and revenues before reimbursements increased 4% as compared to the same period last year. The increase in revenues and revenues before reimbursements was due to an increase in billable hours. We experienced strong demand for our consulting services from a diverse set of clients for both reactive and proactive projects.

For the quarter we had notable performances from our materials & corrosion engineering, mechanical engineering, polymer science & materials chemistry, human factors, and buildings & structures practices, as well as from our environmental group.

Net income increased to $10,333,000 during the first quarter of 2015 as compared to $9,154,000 during the same period last year. Diluted earnings per share increased to $0.75 per share as compared to $0.66 in the same period last year due to the increase in net income and our ongoing share repurchase program.

We remain focused on selectively adding top talent and developing the skills necessary to expand our market position, providing clients with in-depth scientific research and analysis to determine what happened and how to prevent failures or exposures in the future, capitalizing on emerging growth areas, managing other operating expenses, generating cash from operations, maintaining a strong balance sheet and undertaking activities such as share repurchases and dividends to enhance shareholder value. We continue to expect one of our major investigations to step down from its elevated level of activity as it moves through the project life cycle. We also continue to expect a step down in the level of activity in our technology development practice due to the constraints on defense spending and the withdrawal of United States and United Kingdom combat troops from Afghanistan.

Overview of the Three Months Ended April 3, 2015

During the first quarter of 2015, billable hours increased 7% to 292,000 as compared to 274,000 during the same period last year due to continued demand for our proactive and reactive consulting services. Our utilization increased to 75% during the first quarter of 2015 as compared to 72% during the first quarter of 2014. The increase in utilization was due to demand for our consulting services from a diverse set of clients for both reactive and proactive projects and our management of headcount to better align resources with anticipated demand. Technical full-time equivalent employees increased 2% to 745 during the first quarter of 2015 as compared to 732 during the same period last year due to our recruiting and retention efforts. We continue to selectively hire key talent to expand our capabilities.

Three Months Ended April 3, 2015 compared to Three Months Ended April 4, 2014

Revenues
	Three Months Ended
(in thousands, except percentages)	April 3, 2015			April 4, 2014			Percent Change
Engineering and Other Scientific	$	59,801		$	55,827		7.1%
Percentage of total revenues		74.5	%		73.5	%
Environmental and Health		20,492			20,135		1.8%
Percentage of total revenues		25.5	%		26.5	%
Total revenues	$	80,293		$	75,962		5.7%

The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billable hours. During the first quarter of 2015, billable hours for this segment increased by 7% to 211,000 as compared to 197,000 during the same period last year. Utilization increased to 77% during the first quarter of 2015 as compared to 75% during the same period last year. The increase in billable hours and utilization was due to demand for our services in our materials & corrosion engineering, polymer science & materials chemistry, human factors, and buildings & structures practices. Technical full-time equivalent employees increased 4% to 529 during the first quarter of 2015 as compared to 508 for the same period last year due to our continuing recruiting and retention efforts.

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The increase in revenues for our Environmental and Health segment was due to an increase in billable hours partially offset by the impact of unfavorable foreign exchange rates. During the first quarter of 2015, billable hours for this segment increased by 5% to 81,000 as compared to 77,000 during the same period last year. Utilization increased to 72% for the first quarter of 2015 as compared to 66% for the same period last year. The increase in billable hours and utilization was due to strong demand for our services in our environmental & earth sciences, ecological & biological sciences, and chemical regulation & food safety practices. Technical full-time equivalent employees decreased by 4% to 216 during the first quarter of 2015 as compared to 224 during the same period last year .

Compensation and Related Expenses
	Three Months Ended
(in thousands, except percentages)	April 3, 2015			April 4, 2014			Percent Change
Compensation and related expenses	$	51,115		$	48,858		4.6%
Percentage of total revenues		63.7	%		64.3	%

The increase in compensation and related expenses during the first quarter of 2015 was due to an increase in bonus expense, an increase in payroll and benefits expense, and the change in the value of assets associated with our deferred compensation plan. Bonus expense increased $952,000 due to an increase in income before income taxes, before bonus expense, and before stock-based compensation expense. Payroll expense increased $503,000 and fringe benefits increased $296,000 due to the increase in technical full-time equivalent employees. During the first quarter of 2015, deferred compensation expense increased $650,000 with a corresponding increase to other income (expense), net, as compared to the first quarter of 2014 due to the change in value of assets associated with our deferred compensation plan. This increase consisted of an increase in the value of the plan assets of $1,381,000 during the first quarter of 2015 as compared to an increase in the value of the plan assets of $731,000 during same period last year. We expect our compensation expense, excluding the change in value of deferred compensation plan assets, to increase as we selectively add new talent.

Other Operating Expenses
	Three Months Ended
(in thousands, except percentages)	April 3, 2015			April 4, 2014			Percent Change
Other operating expenses	$	6,510		$	6,317		3.1%
Percentage of total revenues		8.1	%		8.3	%

Other operating expenses include facilities-related costs, technical materials, computer-related expenses and depreciation and amortization of property, equipment and leasehold improvements. The increase in other operating expenses during the first quarter of 2015 was due to investments in our corporate infrastructure and costs associated with the increase in technical full-time equivalent employees. We expect other operating expenses to grow as we selectively add new talent and make investments in our corporate infrastructure.

Reimbursable Expenses
	Three Months Ended
(in thousands, except percentages)	April 3, 2015			April 4, 2014			Percent Change
Reimbursable expenses	$	4,152		$	2,995		38.6%
Percentage of total revenues		5.2	%		3.9	%

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The increase in reimbursable expenses was primarily due to an increase in project-related costs in our technology development and materials & corrosion engineering practices within our Engineering and Other Scientific segment. The amount of reimbursable expenses will vary from quarter to quarter depending on the nature of our projects.

General and Administrative Expenses
	Three Months Ended
(in thousands, except percentages)	April 3, 2015			April 4, 2014			Percent Change
General and administrative expenses	$	3,488		$	3,698		(5.7)%
Percentage of total revenues		4.3	%		4.9	%

The decrease in general and administrative expenses during the first quarter of 2015 was due to a decrease in legal expenses of $417,000 partially offset by an increase in bad debt expense of $118,000 and an increase in outside consulting services of $73,000. The decrease in legal expenses was due to a decrease in costs associated with legal claims during the first quarter of 2015 as compared to the first quarter of 2014. We expect general and administrative expenses to increase as we selectively add new talent, expand our business development initiatives and pursue staff development initiatives.

Other Income (Expense), Net
	Three Months Ended
(in thousands, except percentages)	April 3, 2015			April 4, 2014			Percent Change
Other income (expense), net	$	2,043		$	1,271		60.7%
Percentage of total revenues		2.5	%		1.7	%

Other income (expense), net, consists primarily of interest income earned on available cash, cash equivalents and short-term investments, changes in the value of assets associated with our deferred compensation plan and rental income from leasing space in our Silicon Valley facility. During the first quarter of 2015, other income (expense), net, increased $650,000 with a corresponding increase to deferred compensation expense, as compared to the first quarter in 2014 due to a change in the value of assets associated with our deferred compensation plan. This increase consisted of an increase in the value of the plan assets of $1,381,000 during the first quarter of 2015 as compared to an increase in the value of the plan assets of $731,000 during the first quarter of 2014.

Income Taxes
	Three Months Ended
(in thousands, except percentages)	April 3, 2015			April 4, 2014			Percent Change
Income taxes	$	6,738		$	6,211		8.5%
Percentage of total revenues		8.4	%		8.2	%
Effective tax rate		39.5	%		40.4	%

The increase in income taxes was due to a corresponding increase in pre-tax income. The decrease in our effective tax rate was due to an increase in undistributed foreign earnings from tax jurisdictions with lower income tax rates than the United States. These undistributed foreign earnings in the U.K., Germany and China are indefinitely invested outside of the United States.

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LIQUIDITY AND CAPITAL RESOURCES

	Three Months Ended
(in thousands)	April 3, 2015			April 4, 2014
Net cash provided by (used in) operating activities	$	1,701		$	(6,120	)
Net cash provided by investing activities		2,693			225
Net cash used in financing activities		(10,070	)		(11,580	)

We financed our business during the first quarter of 2015 through available cash. We invest our excess cash in cash equivalents and short-term investments. As of April 3, 2015, our cash, cash equivalents and short-term investments were $145.0 million compared to $154.4 million at January 2, 2015. We believe our existing balances of cash, cash equivalents and short-term investments will be sufficient to satisfy our working capital needs, capital expenditures, outstanding commitments, stock repurchases, dividends and other liquidity requirements over at least the next twelve months.

Generally, our net cash provided by operating activities is used to fund our day to day operating activities. First quarter operating cash requirements are generally higher due to payment in the first quarter of our annual bonuses accrued during the prior year. Our largest source of operating cash flows is collections from our clients. Our primary uses of cash from operating activities are for employee related expenditures, leased facilities, taxes, and general operating expenses including marketing and travel.

The increase in net cash provided by investing activities during the first three months of 2015 as compared to the same period last year was due to an increase in maturities of short term investments.

The decrease in net cash used in financing activities during the first three months of 2015 as compared to the same period last year was due to a decrease in repurchases of common stock.

We expect to continue our investing activities, including capital expenditures. Furthermore, cash reserves may be used to repurchase common stock under our stock repurchase programs, pay dividends or strategically acquire professional service firms that are complementary to our business.

For a summary of our commitments to make future payments under contractual obligations, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” in our Annual Report on Form 10-K for the year ended January 2, 2015. There have been no material changes in our contractual obligations since January 2, 2015.

We maintain a nonqualified deferred compensation plan for the benefit of a select group of highly compensated employees. Vested amounts due under the plan of $44,648,000 were recorded as a long-term liability on our unaudited condensed consolidated balance sheet at April 3, 2015. Company assets that are earmarked to pay benefits under the plan are held in a rabbi trust and are subject to the claims of our creditors. As of April 3, 2015 invested amounts under the plan of $37,148,000 were recorded as a long-term asset on our unaudited condensed consolidated balance sheet.

As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The indemnification period covers all pertinent events and occurrences during the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have director and officer insurance coverage that reduces our exposure and enables us to recover a portion of any future amounts paid.

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Non-GAAP Financial Measures

Regulation G, Conditions for Use of Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures, and other SEC rules and regulations define and prescribe the conditions for use of Non-GAAP financial information. Generally, a Non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We closely monitor two financial measures, EBITDA and EBITDAS, which meet the definition of Non-GAAP financial measures. We define EBITDA as net income before income taxes, net interest income, depreciation and amortization. We define EBITDAS as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. These measures are used to evaluate our financial results, develop budgets and determine employee compensation. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of the Non-GAAP measures to the nearest comparable GAAP measure is set forth below.

The following table shows EBITDA as a percentage of revenues before reimbursements for the three months ended April 3, 2015 and April 4, 2014:

	Three Months Ended
(in thousands, except percentages)	April 3, 2015			April 4, 2014
Revenues before reimbursements	$	76,141		$	72,967
EBITDA	$	18,418		$	16,643
EBITDA as a % of revenues before reimbursements		24.2	%		22.8	%

The increase in EBITDA as a percentage of revenues before reimbursements during the first quarter of 2015 as compared to the same period last year was primarily due to revenue growth partially offset by moderate growth in compensation and related expenses and other operating expenses.

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The following table is a reconciliation of EBITDA and EBITDAS to the most comparable GAAP measure, net income, for the three months ended April 3, 2015 and April 4, 2014:

	Three Months Ended
(in thousands)	April 3, 2015			April 4, 2014
Net income	$	10,333		$	9,154
Add back (subtract):
Income taxes		6,738			6,211
Interest income, net		(34	)		(44	)
Depreciation and amortization		1,381			1,322
EBITDA		18,418			16,643
Stock-based compensation		5,221			5,293
EBITDAS	$	23,639		$	21,936

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to interest rate risk associated with our balances of cash, cash equivalents and short-term investments. We manage our interest rate risk by maintaining an investment portfolio primarily consisting of debt instruments with high credit quality and relatively short average effective maturities in accordance with our investment policy. The maximum effective maturity of any issue in our portfolio is 3 years and the maximum average effective maturity of the portfolio cannot exceed 12 months. If interest rates were to instantaneously increase or decrease by 100 basis points, the change in the fair market value of our portfolio of cash equivalents and short-term investments would not have a material impact on our financial statements. We do not use derivative financial instruments in our portfolio. There have not been any material changes during the period covered by this Quarterly Report on Form 10-Q to our interest rate risk exposures, or how these exposures are managed. Notwithstanding our efforts to manage interest rate risk, there can be no assurances that we will be adequately protected against the risks associated with interest rate fluctuations.

We have foreign currency risk related to our revenues and expenses denominated in currencies other than the U.S. dollar, primarily the British Pound, the Euro, and the Chinese Yuan. Accordingly, changes in exchange rates may negatively affect the revenues and net income of our foreign subsidiaries as expressed in U.S. dollars.

At April 3, 2015, we had net assets of approximately $2.6 million with a functional currency of the British Pound, net assets of approximately $2.3 million with a functional currency of the Euro, and net assets of approximately $1.6 million with a functional currency of the Chinese Yuan associated with our operations in the United Kingdom, Germany, and China, respectively.

We also have foreign currency risk related to foreign currency transactions and monetary assets and liabilities denominated in currencies that are not the functional currency. We have experienced and will continue to experience fluctuations in our net income as a result of gains (losses) on these foreign currency transactions and the remeasurement of monetary assets and liabilities. At April 3, 2015, we had net assets denominated in the non-functional currency of approximately $0.6 million. As such, a ten percent change in the value of the local currency would result in $0.06 million foreign currency gain or loss in our results of operations.

We do not use foreign exchange contracts to hedge any foreign currency exposures. To date, the impacts of foreign currency exchange rate changes on our consolidated revenues and consolidated net income have not been material. However, our continued international expansion increases our exposure to exchange rate fluctuations and as a result such fluctuations could have a significant impact on our future results of operations.

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Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this quarterly report. Based on that evaluation, the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.

We intend to review and evaluate the design and effectiveness of our disclosure controls and procedures on an ongoing basis, to improve our controls and procedures over time and to correct any deficiencies that we may discover in the future. Our goal is to ensure that our senior management has timely access to all material financial and non-financial information concerning our business. While we believe the present design of our disclosure controls and procedures is effective to achieve our goal, future events affecting our business may cause us to significantly modify our disclosure controls and procedures.

(b) Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three month period ended April 3, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Exponent is not engaged in any material legal proceedings.

Item 1A. Risk Factors

There have been no material changes from risk factors as previously discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended January 2, 2015.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information on the Company’s repurchases of the Company’s common stock for the three months ended April 3, 2015 (in thousands, except price per share):

	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (1)
January 3 to January 30		-	$	-		-	$	35,078
January 31 to February 27		-		-		-	$	35,078
February 28 to April 3		40		86.45		40	$	31,578
Total		40	$	86.45		40	$	31,578

⁽¹⁾ On February 9, 2012, the Board of Directors authorized $35,000,000 for the repurchase of the Company’s common stock. On February 15, 2013, the Board of Directors authorized an additional $35,000,000 for the repurchase of the Company’s common stock. On May 29, 2014, the Company’s Board of Directors authorized an additional $35,000,000 for the repurchase of the Company’s common stock. These plans have no expiration date.

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Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

(a) Exhibit Index

31.1 Certification of Chief Executive Officer pursuant to Rule 13a – 14(a) under the Securities Exchange Act of 1934.

31.2 Certification of Chief Financial Officer pursuant to Rule 13a – 14(a) under the Securities Exchange Act of 1934.

32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.

32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Schema Document

101.CAL XBRL Taxonomy Calculation Linkbase Document

101.DEF XBRL Taxonomy Definition Linkbase Document

101.LAB XBRL Taxonomy Label Linkbase Document

101.PRE XBRL Taxonomy Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	EXPONENT, INC.
	(Registrant)
Date: May 8, 2015
	/s/ Paul R. Johnston
	Paul R. Johnston, Ph.D., Chief Executive Officer
	/s/ Richard L. Schlenker
	Richard L. Schlenker, Chief Financial Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Paul R. Johnston, Ph.D., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Exponent, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2015

/s/ Paul R. Johnston

Paul R. Johnston, Ph.D.

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Richard L. Schlenker, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Exponent, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2015

/s/ Richard L. Schlenker

Richard L. Schlenker

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Exponent, Inc. (the "Company") on Form 10-Q for the fiscal period ending April 3, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Paul R. Johnston, Ph.D., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 8, 2015

/s/ Paul R. Johnston

Paul R. Johnston, Ph.D.

Chief Executive Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of that section. Such certification will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Exponent, Inc. (the "Company") on Form 10-Q for the fiscal period ending April 3, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard L. Schlenker, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 8, 2015

/s/ Richard L. Schlenker

Richard L. Schlenker

Chief Financial Officer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of that section. Such certification will not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

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Breakdown of Goodwill Reported by Segment (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 03, 2015	Jan. 02, 2015
Goodwill [Line Items]
Goodwill	$ 8,607	$ 8,607
Environmental and Health
Goodwill [Line Items]
Goodwill	8,099
Engineering and Other Scientific
Goodwill [Line Items]
Goodwill	$ 508

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Treasury Stock - Additional Information (Detail) (USD $)	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014	May 29, 2014	Feb. 15, 2013	Feb. 09, 2012
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Authorized Amount			$ 35,000,000	$ 35,000,000	$ 35,000,000
Purchase of treasury shares (in shares)	40,483	102,719
Repurchase of treasury shares	3,500,000	7,631,000
Remaining authorized amount for repurchase of common stock	31,578,000
Treasury stock reissued at lower than repurchase price	$ 4,943,000	$ 6,050,000

XML

Goodwill (Tables)

3 Months Ended

Apr. 03, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Breakdown of Goodwill Reported by Segment

Below is a breakdown of goodwill reported by segment as of April 3, 2015:

	Environmental		Engineering and
(In thousands)	and Health		Other Scientific		Total
Goodwill	$	8,099	$	508	$	8,607

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Segment Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014
Segment Reporting Information [Line Items]
Revenues	$ 80,293	$ 75,962
Operating Income	15,028	14,094
Capital Expenditures	627	915
Depreciation and Amortization	1,381	1,322
Engineering and Other Scientific
Segment Reporting Information [Line Items]
Revenues	59,801	55,827
Operating Income	19,245	18,818
Capital Expenditures	392	530
Depreciation and Amortization	1,104	873
Environmental and Health
Segment Reporting Information [Line Items]
Revenues	20,492	20,135
Operating Income	6,464	5,973
Capital Expenditures	24	55
Depreciation and Amortization	43	47
Operating segments
Segment Reporting Information [Line Items]
Operating Income	25,709	24,791
Capital Expenditures	416	585
Depreciation and Amortization	1,147	920
Corporate
Segment Reporting Information [Line Items]
Operating Income	(10,681)	(10,697)
Capital Expenditures	211	330
Depreciation and Amortization	$ 234	$ 402

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Net Income Per Share

3 Months Ended

Apr. 03, 2015

Earnings Per Share [Abstract]

Net Income Per Share

Note 3: 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
(In thousands)	April 3, 2015		April 4, 2014
Shares used in basic per share computation		13,311		13,537
Effect of dilutive common stock options outstanding		71		79
Effect of dilutive restricted stock units outstanding		313		324
Shares used in diluted per share computation		13,695		13,940

Common stock options to purchase 10,989 shares were excluded from the diluted per share calculation for the three months ended April 3, 2015 due to their antidilutive effect. The weighted-average exercise price for the antidilutive shares was $88.39 for the three months ended April 3, 2015. There were no options excluded from the diluted per share calculations for the three months ended April 4, 2014.

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Summarizes Cost And Estimated Fair Value Of Short Term Fixed Income Securities (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 03, 2015	Jan. 02, 2015
Fair Value Measurements [Line Items]
Due within one year, Amortized Cost	$ 18,739
Due between one and two years, Amortized Cost	2,618
Total Amortized Cost	21,357
Due within one year, Estimated Fair Value	18,750
Due between one and two years, Estimated Fair Value	2,618
Total Estimated Fair Value	$ 21,368	$ 24,913

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Cash, cash equivalents and short-term investments (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 03, 2015	Jan. 02, 2015
Fair Value Measurements [Line Items]
Amortized Cost	$ 145,015	$ 154,380
Unrealized Gains	13	27
Unrealized Losses	(2)	(4)
Estimated Fair Value	145,026	154,403
Total short-term investments
Fair Value Measurements [Line Items]
Amortized Cost	21,357	24,890
Unrealized Gains	13	27
Unrealized Losses	(2)	(4)
Estimated Fair Value	21,368	24,913
Money market securities
Fair Value Measurements [Line Items]
Amortized Cost	48,940	45,478
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	48,940	45,478
Total cash and cash equivalents
Fair Value Measurements [Line Items]
Amortized Cost	123,658	129,490
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	123,658	129,490
Cash
Fair Value Measurements [Line Items]
Amortized Cost	74,718	84,012
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	74,718	84,012
Total cash equivalents
Fair Value Measurements [Line Items]
Amortized Cost	48,940	45,478
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	48,940	45,478
State and municipal bonds
Fair Value Measurements [Line Items]
Amortized Cost	21,357	24,890
Unrealized Gains	13	27
Unrealized Losses	(2)	(4)
Estimated Fair Value	$ 21,368	$ 24,913

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Net Income Per Share - Additional Information (Detail) (USD $)	3 Months Ended
	Apr. 04, 2014	Apr. 03, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		10,989
Antidilutive Shares Weighted Average Exercise Price		$ 88.39

XML

Reconciliation of Shares Used to Calculate Basic and Diluted Net Income Per Share (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014
Schedule Of Earnings Per Share Basic and Diluted [Line Items]
Shares used in basic per share computation	13,311	13,537
Shares used in diluted per share computation	13,695	13,940
Employee Stock Option
Schedule Of Earnings Per Share Basic and Diluted [Line Items]
Effect of dilutive stock outstanding	71	79
Restricted Stock Units (RSUs)
Schedule Of Earnings Per Share Basic and Diluted [Line Items]
Effect of dilutive stock outstanding	313	324

XML

Fair Value Measurements

3 Months Ended

Apr. 03, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 2: 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 have been no transfers between fair value measurement levels during the three months ended April 3, 2015 and April 4, 2014. 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 April 3, 2015:

	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)	$	48,940	$	48,940	$	-	$	-
Fixed income available-
for-sale securities (2)		21,368		-		21,368		-
Fixed income trading
securities held in deferred
compensation plan (3)		12,376		12,376		-		-
Equity trading securities
held in deferred
compensation plan (3)		31,542		31,542		-		-
Total	$	114,226	$	92,858	$	21,368	$	-
Liabilities
Deferred compensation
plan (4)		51,419		51,419		-		-
Total	$	51,419	$	51,419	$	-	$	-

⁽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 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 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 January 2, 2015:

	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)	$	45,478	$	45,478	$	-	$	-
Fixed income available-
for-sale securities (2)		24,913		-		24,913		-
Fixed income trading
securities held in deferred
compensation plan (3)		9,672		9,672		-		-
Equity trading securities
held in deferred
compensation plan (3)		34,176		34,176		-		-
Total	$	114,239	$	89,326	$	24,913	$	-
Liabilities
Deferred compensation
plan (4)		45,394		45,394		-		-
Total	$	45,394	$	45,394	$	-	$	-

⁽¹⁾ Included in cash and cash equivalents on the Company’s consolidated balance sheet.

⁽²⁾ Included in short-term investments on the Company’s consolidated balance sheet.

⁽³⁾ Included in prepaid expenses and other assets and deferred compensation plan assets on the Company’s consolidated balance sheet.

⁽⁴⁾ Included in accrued payroll and employee benefits and deferred compensation on the Company’s consolidated balance sheet.

Fixed income available-for-sale securities as of April 3, 2015 and January 2, 2015 represent primarily obligations of state and local government agencies. Fixed income and equity trading securities represent mutual funds held in the Company’s deferred compensation plan. See Note 6 for additional information about the Company’s deferred compensation plan.

Cash, cash equivalents and short-term investments consisted of the following as of April 3, 2015:

	Amortized		Unrealized		Unrealized		Estimated
(In thousands)	Cost		Gains		Losses		Fair Value
Classified as current assets:
Cash	$	74,718	$	-	$	-	$	74,718
Cash equivalents:
Money market securities		48,940		-		-		48,940
Total cash equivalents		48,940		-		-		48,940
Total cash and cash equivalents		123,658		-		-		123,658
Short-term investments:
State and municipal bonds		21,357		13		(2)		21,368
Total short-term investments		21,357		13		(2)		21,368
Total cash, cash equivalents
and short-term investments	$	145,015	$	13	$	(2)	$	145,026

Cash, cash equivalents and short-term investments consisted of the following as of January 2, 2015:

	Amortized		Unrealized		Unrealized		Estimated
(In thousands)	Cost		Gains		Losses		Fair Value
Classified as current assets:
Cash	$	84,012	$	-	$	-	$	84,012
Cash equivalents:
Money market securities		45,478		-		-		45,478
Total cash equivalents		45,478		-		-		45,478
Total cash and cash equivalents		129,490		-		-		129,490
Short-term investments:
State and municipal bonds		24,890		27		(4)		24,913
Total short-term investments		24,890		27		(4)		24,913
Total cash, cash equivalents
and short-term investments	$	154,380	$	27	$	(4)	$	154,403

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 April 3, 2015:

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due within one year	$	18,739	$	18,750
Due between one and two years		2,618		2,618
Total	$	21,357	$	21,368

At April 3, 2015 and January 2, 2015, 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 consolidated balance sheet at April 3, 2015 and January 2, 2015, but require disclosure of their fair values: accounts receivable, other assets and accounts payable. The estimated fair value of such instruments at April 3, 2015 and January 2, 2015 approximates their carrying value as reported on the consolidated balance sheet.

There were no other-than-temporary impairments or credit losses related to available-for-sale securities during the three months ended April 3, 2015 and April 4, 2014.

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Stock-Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014
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%
Unvested Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation, vesting period	4 years
Unvested Restricted Stock | 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 expense	$ 397,000	$ 480,000
Vesting percentage of stock options granted per year	25.00%
Stock based compensation, vesting period	4 years
Vested Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	1,693,000	1,586,000
Stock based compensation, holding period	4 years
Unvested Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 3,131,000	$ 3,227,000
Unvested Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recipient age to expense award on grant date	59 years 6 months

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Goodwill - Additional Information (Detail) (USD $)	3 Months Ended
	Apr. 03, 2015
Goodwill [Line Items]
Goodwill, Acquisitions	$ 0
Goodwill, Dispositions	0
Goodwill, Impairments or other change	0
Goodwill, Changes in the composition	$ 0

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Apr. 03, 2015	Jan. 02, 2015
Current assets:
Cash and cash equivalents	$ 123,658	$ 129,490
Short-term investments	21,368	24,913
Accounts receivable, net of allowance for doubtful accounts of $3,596 and $3,386 at April 3, 2015 and January 2, 2015, respectively	88,076	86,368
Prepaid expenses and other assets	12,121	14,727
Deferred income taxes	11,602	11,002
Total current assets	256,825	266,500
Property, equipment and leasehold improvements, net	27,587	28,264
Goodwill	8,607	8,607
Deferred income taxes	25,917	24,612
Deferred compensation plan assets	37,148	36,195
Other assets	1,159	1,121
Total assets	357,243	365,299
Current liabilities:
Accounts payable and accrued liabilities	8,933	8,935
Accrued payroll and employee benefits	40,169	62,184
Deferred revenues	5,776	8,226
Total current liabilities	54,878	79,345
Other liabilities	1,985	1,862
Deferred compensation	44,648	37,745
Deferred rent	1,914	2,059
Total liabilities	103,425	121,011
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized; 16,427 shares issued at April 3, 2015 and January 2, 2015	16	16
Additional paid-in capital	174,161	160,225
Accumulated other comprehensive income
Investment securities, available-for-sale	7	14
Foreign currency translation adjustments	(1,419)	(918)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total	(1,412)	(904)
Retained earnings	248,089	246,961
Treasury stock, at cost; 3,436 and 3,556 shares held at April 3, 2015 and January 2, 2015, respectively	(167,036)	(162,010)
Total stockholders’ equity	253,818	244,288
Total liabilities and stockholders' equity	$ 357,243	$ 365,299

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014
Cash flows from operating activities:
Net income	$ 10,333	$ 9,154
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of property, equipment and leasehold improvements	1,381	1,322
Amortization of premiums and accretion of discounts on short-term investments	213	225
Deferred rent	(145)	(99)
Provision for doubtful accounts	390	249
Stock-based compensation	5,221	5,293
Deferred income tax provision	(1,938)	(3,324)
Excess tax benefit from equity incentive plans	(4,431)	(4,499)
Changes in operating assets and liabilities:
Accounts receivable	(2,098)	(8,215)
Prepaid expenses and other assets	2,689	(4,988)
Accounts payable and accrued liabilities	4,553	8,167
Accrued payroll and employee benefits	(12,017)	(9,838)
Deferred revenues	(2,450)	433
Net cash provided by (used in) operating activities	1,701	(6,120)
Cash flows from investing activities:
Capital expenditures	(627)	(915)
Maturity of short-term investments	3,320	1,140
Net cash provided by investing activities	2,693	225
Cash flows from financing activities:
Excess tax benefit from equity incentive plans	4,431	4,499
Payroll taxes for restricted stock units	(7,267)	(6,267)
Repurchase of common stock	(3,500)	(6,831)
Exercise of share-based payment awards	289	329
Dividends and dividend equivalents rights	(4,023)	(3,310)
Net cash used in financing activities	(10,070)	(11,580)
Effect of foreign currency exchange rates on cash and cash equivalents	(156)	148
Net decrease in cash and cash equivalents	(5,832)	(17,327)
Cash and cash equivalents at beginning of period	129,490	122,948
Cash and cash equivalents at end of period	$ 123,658	$ 105,621

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Supplemental Disclosure of Cash Flow Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014
Cash paid during period:
Income taxes	$ 390	$ 428
Non-cash investing and financing activities:
Unrealized (loss) gain on short-term investments	(7)	14
Vested stock unit awards issued to settle accrued bonuses	6,169	6,008
Stock repurchases payable to broker	$ 0	$ 800

XML

Supplemental Cash Flow Information (Tables)

3 Months Ended

Apr. 03, 2015

Supplemental Cash Flow Information [Abstract]

Supplemental Disclosure of Cash Flow Information

The following is supplemental disclosure of cash flow information:

	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Cash paid during period:
Income taxes	$	390	$	428
Non-cash investing and financing activities:
Unrealized (loss) gain on short-term investments	$	(7)	$	14
Vested stock unit awards issued to settle accrued bonuses	$	6,169	$	6,008
Stock repurchases payable to broker	$	-	$	800

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Accounts Receivable, Net (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 03, 2015	Jan. 02, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	$ (3,596)	$ (3,386)
Total accounts receivable, net	88,076	86,368
Unbilled accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	32,873	26,423
Billed accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 58,799	$ 63,331

XML

Segment Reporting (Tables)

3 Months Ended

Apr. 03, 2015

Disclosure Segment Information [Abstract]

Segment Reporting Information, by Segment

Segment information for the three months ended April 3, 2015 and April 4, 2014 follows:

Revenues
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	59,801	$	55,827
Environmental and Health		20,492		20,135
Total revenues	$	80,293	$	75,962

Operating Income
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	19,245	$	18,818
Environmental and Health		6,464		5,973
Total segment operating income		25,709		24,791
Corporate operating expense		(10,681)		(10,697)
Total operating income	$	15,028	$	14,094

Capital Expenditures
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	392	$	530
Environmental and Health		24		55
Total segment capital expenditures		416		585
Corporate capital expenditures		211		330
Total capital expenditures	$	627	$	915

Depreciation and Amortization
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	1,104	$	873
Environmental and Health		43		47
Total segment depreciation and amortization		1,147		920
Corporate depreciation and amortization		234		402
Total depreciation and amortization	$	1,381	$	1,322

XML

Basis of Presentation

3 Months Ended

Apr. 03, 2015

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 of the 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 months ended April 3, 2015 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 January 2, 2015 which was filed with the U.S. Securities and Exchange Commission on March 2, 2015.

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.

Dividend. The Company declared and paid cash dividends per common share during the periods presented as follows:

	Fiscal Year 2015
	Dividends		Amount
	Per Share		(in thousands)
First Quarter	$	0.30	$	3,858
			$	3,858

	Fiscal Year 2014
	Dividends		Amount
	Per Share		(in thousands)
First Quarter	$	0.25	$	3,262
Second Quarter	$	0.25		3,270
Third Quarter	$	0.25		3,262
Fourth Quarter	$	0.25		3,216
			$	13,010

The Company expects to continue paying quarterly dividends in the future, subject to declaration by the Company’s Board of Directors.

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. Significant items subject to such estimates and assumptions include accounting for revenue recognition and estimating the allowance for doubtful accounts and contract losses. Actual results could differ from those estimates.

Recently Adopted Accounting Pronouncements. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles (“GAAP”) when it becomes effective. The new standard is effective for the Company on the first day of fiscal 2017 (December 31, 2016), or 2018 if the FASB’s proposal for a one year deferral is approved. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Apr. 03, 2015	Jan. 02, 2015
Accounts receivable, allowance for contract losses and doubtful accounts	$ 3,596	$ 3,386
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	16,427	16,427
Treasury stock, shares	3,436	3,556

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Contingencies

3 Months Ended

Apr. 03, 2015

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Note 11: 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.

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Document And Entity Information	3 Months Ended
	Apr. 03, 2015	May 01, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 03, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Registrant Name	EXPONENT INC
Entity Central Index Key	0000851520
Current Fiscal Year End Date	--01-01
Entity Filer Category	Large Accelerated Filer
Trading Symbol	EXPO
Entity Common Stock, Shares Outstanding		12,990,741

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Subsequent Event

3 Months Ended

Apr. 03, 2015

Subsequent Events [Abstract]

Subsequent Event

Note 12: Subsequent Event

On April 22, 2015, the Company announced that its Board of Directors approved a two-for-one stock split of its common stock and a change in the number of authorized shares of common and preferred stock to 80 million and 2 million, respectively, each subject to stockholder approval of both the split and the change in authorized shares at the 2015 annual meeting of stockholders on May 28, 2015. If the Company’s stockholders approve the stock split and the change in authorized shares, each stockholder of record at the close of business on May 28, 2015 will receive one additional share of common stock for every outstanding share of common stock held on the record date.

On April 22, 2015, the Company announced that its Board of Directors declared a cash dividend to be paid on June 26, 2015 to all common stockholders of record as of June 12, 2015. If the proposed stock split and the change in authorized shares are approved by stockholders the cash dividend will be $0.15 per share after giving effect to the split. If the proposed stock split, the change in authorized shares, or both are not approved by stockholders (such that the split does not occur), the cash dividend will be $0.30 per share.

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Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014
Revenues:
Revenues before reimbursements	$ 76,141	$ 72,967
Reimbursements	4,152	2,995
Revenues	80,293	75,962
Operating expenses:
Compensation and related expenses	51,115	48,858
Other operating expenses	6,510	6,317
Reimbursable expenses	4,152	2,995
General and administrative expenses	3,488	3,698
Total operating expenses	65,265	61,868
Operating income	15,028	14,094
Other income, net:
Interest income, net	34	44
Miscellaneous income, net	2,009	1,227
Total other income, net	2,043	1,271
Income before income taxes	17,071	15,365
Income taxes	6,738	6,211
Net income	$ 10,333	$ 9,154
Net income per share:
Basic	$ 0.78	$ 0.68
Diluted	$ 0.75	$ 0.66
Shares used in per share computations:
Basic	13,311	13,537
Diluted	13,695	13,940
Cash dividends declared per common share	$ 0.3	$ 0.25

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Deferred Compensation Plans

3 Months Ended

Apr. 03, 2015

Deferred Compensation Arrangements [Abstract]

Deferred Compensation Plan

Note 6: 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 April 3, 2015 and January 2, 2015, the invested amounts under the plans totaled $43,918,000 and $43,848,000, respectively. These assets are classified as trading securities and are recorded at fair value with changes recorded as adjustments to other income and expense.

As of April 3, 2015 and January 2, 2015, vested amounts due under the plans totaled $51,419,000 and $45,394,000, respectively. Changes in the liability are recorded as adjustments to compensation expense. During the three months ended April 3, 2015 and April 4, 2014, the Company recognized compensation expense of $1,381,000 and $731,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as income in other income (expense), net.

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Treasury Stock

3 Months Ended

Apr. 03, 2015

Equity [Abstract]

Treasury Stock

Note 5: Treasury Stock

On February 9, 2012, the Company’s Board of Directors authorized $35,000,000 for the repurchase of the Company’s common stock. On February 15, 2013, the Company’s Board of Directors authorized an additional $35,000,000 for the repurchase of the Company’s common stock. On May 29, 2014, the Company’s Board of Directors authorized an additional $35,000,000 for the repurchase of the Company’s common stock.

The Company repurchased 40,483 shares of its common stock for $3,500,000 during the three months ended April 3, 2015.  The Company repurchased 102,719 shares of its common stock for $7,631,000 during the three months ended April 4, 2014.  As of April 3, 2015, the Company had remaining authorization under its stock repurchase plans of $31,578,000 to repurchase shares of common stock.

Net losses related to the re-issuance of treasury stock to settle restricted stock unit and stock option awards of $4,943,000 and $6,050,000 were recorded as a reduction to retained earnings during the three months ended April 3, 2015 and April 4, 2014, respectively.

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Accounts Receivable, Net (Tables)

3 Months Ended

Apr. 03, 2015

Receivables [Abstract]

Accounts Receivable, Net

At April 3, 2015 and January 2, 2015, accounts receivable, net, was comprised of the following:

	April 3,		January 2,
(In thousands)	2015		2015
Billed accounts receivable	$	58,799	$	63,331
Unbilled accounts receivable		32,873		26,423
Allowance for doubtful accounts		(3,596)		(3,386)
Total accounts receivable, net	$	88,076	$	86,368

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Basis of Presentation (Tables)

3 Months Ended

Apr. 03, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Common Stock Dividends Declared Per Share

The Company declared and paid cash dividends per common share during the periods presented as follows:

	Fiscal Year 2015
	Dividends		Amount
	Per Share		(in thousands)
First Quarter	$	0.30	$	3,858
			$	3,858

	Fiscal Year 2014
	Dividends		Amount
	Per Share		(in thousands)
First Quarter	$	0.25	$	3,262
Second Quarter	$	0.25		3,270
Third Quarter	$	0.25		3,262
Fourth Quarter	$	0.25		3,216
			$	13,010

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Segment Reporting

3 Months Ended

Apr. 03, 2015

Disclosure Segment Information [Abstract]

Segment Reporting

Note 9: Segment Reporting

The Company has two operating segments based on two primary areas of service. The Engineering and Other Scientific operating segment is a broad service group providing technical consulting in different practices primarily in engineering. The Environmental and Health operating segment provides services in the area of environmental, epidemiology and health risk analysis. This operating 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 for the three months ended April 3, 2015 and April 4, 2014 follows:

Revenues
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	59,801	$	55,827
Environmental and Health		20,492		20,135
Total revenues	$	80,293	$	75,962

Operating Income
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	19,245	$	18,818
Environmental and Health		6,464		5,973
Total segment operating income		25,709		24,791
Corporate operating expense		(10,681)		(10,697)
Total operating income	$	15,028	$	14,094

Capital Expenditures
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	392	$	530
Environmental and Health		24		55
Total segment capital expenditures		416		585
Corporate capital expenditures		211		330
Total capital expenditures	$	627	$	915

Depreciation and Amortization
	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Engineering and Other Scientific	$	1,104	$	873
Environmental and Health		43		47
Total segment depreciation and amortization		1,147		920
Corporate depreciation and amortization		234		402
Total depreciation and amortization	$	1,381	$	1,322

No single customer comprised more than 10% of the Company’s revenues during the three months ended April 3, 2015 and April 4, 2014. No single customer comprised more than 10% of the Company’s accounts receivable at April 3, 2015 and January 2, 2015.

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Supplemental Cash Flow Information

3 Months Ended

Apr. 03, 2015

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Note 7: Supplemental Cash Flow Information

The following is supplemental disclosure of cash flow information:

	Three Months Ended
(In thousands)	April 3, 2015		April 4, 2014
Cash paid during period:
Income taxes	$	390	$	428
Non-cash investing and financing activities:
Unrealized (loss) gain on short-term investments	$	(7)	$	14
Vested stock unit awards issued to settle accrued bonuses	$	6,169	$	6,008
Stock repurchases payable to broker	$	-	$	800

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Accounts Receivable, Net

3 Months Ended

Apr. 03, 2015

Receivables [Abstract]

Accounts Receivable, Net

Note 8: Accounts Receivable, Net

At April 3, 2015 and January 2, 2015, accounts receivable, net, was comprised of the following:

	April 3,		January 2,
(In thousands)	2015		2015
Billed accounts receivable	$	58,799	$	63,331
Unbilled accounts receivable		32,873		26,423
Allowance for doubtful accounts		(3,596)		(3,386)
Total accounts receivable, net	$	88,076	$	86,368

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Goodwill

3 Months Ended

Apr. 03, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Note 10: Goodwill

Below is a breakdown of goodwill reported by segment as of April 3, 2015:

	Environmental		Engineering and
(In thousands)	and Health		Other Scientific		Total
Goodwill	$	8,099	$	508	$	8,607

There were no acquisitions, dispositions, impairments or other changes in the carrying amount of goodwill, nor any changes in the composition of the Company’s reporting units, during the three months ended April 3, 2015.

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Deferred Compensation Plans - Additional Information (Detail) (USD $)	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014	Jan. 02, 2015
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Trading securities	$ 43,918,000		$ 43,848,000
Deferred compensation plan vested amounts due	51,419,000		45,394,000
Change in market value of trust assets	$ 1,381,000	$ 731,000
Maximum
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Percentage of compensation deferred	100.00%

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Net Income Per Share (Tables)

3 Months Ended

Apr. 03, 2015

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
(In thousands)	April 3, 2015		April 4, 2014
Shares used in basic per share computation		13,311		13,537
Effect of dilutive common stock options outstanding		71		79
Effect of dilutive restricted stock units outstanding		313		324
Shares used in diluted per share computation		13,695		13,940

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Common Stock Dividends Declared And Paid Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended					12 Months Ended
	Apr. 03, 2015	Jan. 02, 2015	Oct. 03, 2014	Jul. 04, 2014	Apr. 04, 2014	Jan. 02, 2015
Class of Stock [Line Items]
Dividends Per Share	$ 0.3	$ 0.25	$ 0.25	$ 0.25	$ 0.25
Amount	$ 3,858	$ 3,216	$ 3,262	$ 3,270	$ 3,262	$ 13,010

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Subsequent Event - Additional Information (Detail)	1 Months Ended
	Apr. 22, 2015	Apr. 03, 2015	Jan. 02, 2015
Subsequent Event [Line Items]
Common Stock Shares Authorized		100,000,000	100,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Common Stock Shares Authorized	80,000,000
Preferred Stock, Shares Authorized	2,000,000
Dividend Declared Stock Split Authorized	If the proposed stock split and the change in authorized shares are approved by stockholders the cash dividend will be $0.15 per share after giving effect to the split. If the proposed stock split, the change in authorized shares, or both are not approved by stockholders (such that the split does not occur), the cash dividend will be $0.30 per share.
Stockholders' Equity Note, Stock Split	two-for-one stock split

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Condensed Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 03, 2015	Apr. 04, 2014
Net income	$ 10,333	$ 9,154
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(501)	52
Unrealized (losses) gains on available-for-sale investment securities arising during the period, net of tax	(7)	14
Comprehensive income	$ 9,825	$ 9,220

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Stock-Based Compensation

3 Months Ended

Apr. 03, 2015

Share-Based Compensation [Abstract]

Stock-Based Compensation

Note 4: 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 $1,693,000 and $1,586,000 during the three months ended April 3, 2015 and April 4, 2014, respectively. The value of the unvested restricted stock unit awards granted, adjusted for estimated forfeitures, 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 $3,131,000 and $3,227,000 during the three months ended April 3, 2015 and April 4, 2014, 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. For options granted on or after January 1, 2012, all 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 Company grants options at exercise prices equal to the fair value of the Company’s common stock on the date of grant. The Company recorded stock-based compensation expense associated with stock option grants of $397,000 and $480,000 during the three months ended April 3, 2015 and April 4, 2014, 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 and post-vesting forfeiture and expiration data to estimate the expected term of options granted. The historical volatility of the Company’s common stock over a period of time equal to the expected term of the options granted was used to estimate expected volatility. The risk-free interest rate used in the option-pricing model was based on United States Treasury zero-coupon issues with remaining terms similar to the expected term on the options. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. Historical data was used to estimate pre-vesting option forfeitures and stock-based compensation expense was recorded only for those awards that are expected to vest. All stock-based payment awards are recognized on a straight-line basis over the requisite service periods of the awards.

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Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Apr. 03, 2015		Jan. 02, 2015
Assets
Money market securities	$ 48,940	[1]	$ 45,478	[2]
Total	114,226		114,239
Liabilities
Deferred compensation plan	51,419	[3]	45,394	[4]
Total	51,419		45,394
Fixed income securities
Assets
Fixed income available-for-sale securities	21,368	[5]	24,913	[6]
Fixed income trading securities held in deferred compensation plan	12,376	[7]	9,672	[8]
Equity securities
Assets
Equity trading securities held in deferred compensation plan	31,542	[7]	34,176	[8]
Fair Value, Inputs, Level 1
Assets
Money market securities	48,940	[1]	45,478	[2]
Total	92,858		89,326
Liabilities
Deferred compensation plan	51,419	[3]	45,394	[4]
Total	51,419		45,394
Fair Value, Inputs, Level 1 | Fixed income securities
Assets
Fixed income available-for-sale securities	0	[5]	0	[6]
Fixed income trading securities held in deferred compensation plan	12,376	[7]	9,672	[8]
Fair Value, Inputs, Level 1 | Equity securities
Assets
Equity trading securities held in deferred compensation plan	31,542	[7]	34,176	[8]
Fair Value, Inputs, Level 2
Assets
Money market securities	0	[1]	0	[2]
Total	21,368		24,913
Liabilities
Deferred compensation plan	0	[3]	0	[4]
Total	0		0
Fair Value, Inputs, Level 2 | Fixed income securities
Assets
Fixed income available-for-sale securities	21,368	[5]	24,913	[6]
Fixed income trading securities held in deferred compensation plan	0	[7]	0	[8]
Fair Value, Inputs, Level 2 | Equity securities
Assets
Equity trading securities held in deferred compensation plan	0	[7]	0	[8]
Fair Value, Inputs, Level 3
Assets
Money market securities	0	[1]	0	[2]
Total	0		0
Liabilities
Deferred compensation plan	0	[3]	0	[4]
Total	0		0
Fair Value, Inputs, Level 3 | Fixed income securities
Assets
Fixed income available-for-sale securities	0	[5]	0	[6]
Fixed income trading securities held in deferred compensation plan	0	[7]	0	[8]
Fair Value, Inputs, Level 3 | Equity securities
Assets
Equity trading securities held in deferred compensation plan	$ 0	[7]	$ 0	[8]

[1] Included in cash and cash equivalents on the Company’s unaudited condensed consolidated balance sheet.

[2] Included in cash and cash equivalents on the Company’s consolidated balance sheet.

[3] Included in accrued payroll and employee benefits and deferred compensation on the Company’s unaudited condensed consolidated balance sheet.

[4] Included in accrued payroll and employee benefits and deferred compensation on the Company’s consolidated balance sheet.

[5] Included in short-term investments on the Company’s unaudited condensed consolidated balance sheet.

[6] Included in short-term investments on the Company’s consolidated balance sheet.

[7] Included in prepaid expenses and other assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet.

[8] Included in prepaid expenses and other assets and deferred compensation plan assets on the Company’s consolidated balance sheet.

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Segment Reporting - Additional Information (Detail)	3 Months Ended
	Apr. 03, 2015	Jan. 02, 2015	Apr. 04, 2014
Segment Reporting Information [Line Items]
Number of Operating Segments	2
Percentage of account receivable	10.00%	10.00%
Percentage of Company's revenue	10.00%		10.00%

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Fair Value Measurements (Tables)

3 Months Ended

Apr. 03, 2015

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 April 3, 2015:

	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)	$	48,940	$	48,940	$	-	$	-
Fixed income available-
for-sale securities (2)		21,368		-		21,368		-
Fixed income trading
securities held in deferred
compensation plan (3)		12,376		12,376		-		-
Equity trading securities
held in deferred
compensation plan (3)		31,542		31,542		-		-
Total	$	114,226	$	92,858	$	21,368	$	-
Liabilities
Deferred compensation
plan (4)		51,419		51,419		-		-
Total	$	51,419	$	51,419	$	-	$	-

⁽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 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 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 January 2, 2015:

	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)	$	45,478	$	45,478	$	-	$	-
Fixed income available-
for-sale securities (2)		24,913		-		24,913		-
Fixed income trading
securities held in deferred
compensation plan (3)		9,672		9,672		-		-
Equity trading securities
held in deferred
compensation plan (3)		34,176		34,176		-		-
Total	$	114,239	$	89,326	$	24,913	$	-
Liabilities
Deferred compensation
plan (4)		45,394		45,394		-		-
Total	$	45,394	$	45,394	$	-	$	-

⁽¹⁾ Included in cash and cash equivalents on the Company’s consolidated balance sheet.

⁽²⁾ Included in short-term investments on the Company’s consolidated balance sheet.

⁽³⁾ Included in prepaid expenses and other assets and deferred compensation plan assets on the Company’s consolidated balance sheet.

⁽⁴⁾ Included in accrued payroll and employee benefits and deferred compensation on the Company’s consolidated balance sheet.

Cash, cash equivalents and short-term investments

Cash, cash equivalents and short-term investments consisted of the following as of April 3, 2015:

	Amortized		Unrealized		Unrealized		Estimated
(In thousands)	Cost		Gains		Losses		Fair Value
Classified as current assets:
Cash	$	74,718	$	-	$	-	$	74,718
Cash equivalents:
Money market securities		48,940		-		-		48,940
Total cash equivalents		48,940		-		-		48,940
Total cash and cash equivalents		123,658		-		-		123,658
Short-term investments:
State and municipal bonds		21,357		13		(2)		21,368
Total short-term investments		21,357		13		(2)		21,368
Total cash, cash equivalents
and short-term investments	$	145,015	$	13	$	(2)	$	145,026

Cash, cash equivalents and short-term investments consisted of the following as of January 2, 2015:

	Amortized		Unrealized		Unrealized		Estimated
(In thousands)	Cost		Gains		Losses		Fair Value
Classified as current assets:
Cash	$	84,012	$	-	$	-	$	84,012
Cash equivalents:
Money market securities		45,478		-		-		45,478
Total cash equivalents		45,478		-		-		45,478
Total cash and cash equivalents		129,490		-		-		129,490
Short-term investments:
State and municipal bonds		24,890		27		(4)		24,913
Total short-term investments		24,890		27		(4)		24,913
Total cash, cash equivalents
and short-term investments	$	154,380	$	27	$	(4)	$	154,403

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 April 3, 2015:

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due within one year	$	18,739	$	18,750
Due between one and two years		2,618		2,618
Total	$	21,357	$	21,368