EXPONENT INC

Previous wording

There have been no significant changes in our critical accounting estimates during the six months ended June 28, 2024, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2023 Annual Report.

Current wording

There have been no significant changes in our critical accounting estimates during the nine months ended September 27, 2024, as compared to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2023 Annual Report.

Previous wording

Revenues for the second quarter of 2024 were to $140,536,000 as compared to $140,221,000 during the same period last year. Revenues before reimbursements for the second quarter of 2024 increased 2% to $132,434,000 as compared to $129,653,000 during the same period last year.

Current wording

Revenues for the third quarter of 2024 increased 2% to $136,279,000 as compared to $133,336,000 during the same period last year. Revenues before reimbursements for the third quarter of 2024 increased slightly to $125,085,000 as compared to $124,959,000 during the same period last year.

Previous wording

Net income increased 14% to $29,227,000 during the second quarter of 2024 as compared to $25,748,000 during the same period last year. Diluted earnings per share increased to $0.57 per share during the second quarter of 2024 as compared to $0.50 in the same period last year. The increase in profitability was due to our successful efforts to align resources with demand.

Current wording

Net income increased 6% to $26,044,000 during the third quarter of 2024 as compared to $24,538,000 during the same period last year. Diluted earnings per share increased to $0.50 per share as compared to $0.48 in the same period last year. The increase in profitability was due to our continued efforts to better align resources with demand.

Previous wording

During the second quarter of 2024, billable hours decreased 2% to 381,000 as compared to 388,000 during the same period last year. Our utilization increased to 75% during the second quarter of 2024 as compared to 69% during the same period last year. Technical full-time equivalent employees decreased 9% to 975 during the second quarter of 2024 as compared to 1,077 during the same period last year.

Current wording

During the third quarter of 2024, billable hours decreased 5% to 362,000 as compared to 380,000 during the same period last year. Our utilization increased to 73% during the third quarter of 2024 as compared to 70% during the same period last year. Technical full-time equivalent employees decreased 10% to 949 during the third quarter of 2024 as compared to 1,050 during the same period last year.

Previous wording

The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billing rates partially offset by a decrease in billable hours. During the second quarter of 2024, billable hours for this segment decreased by 1% to 306,000 as compared to 308,000 during the same period last year. Utilization for this segment increased to 77% during the second quarter of 2024 as compared to 70% during the same period last year. The increase in revenues was driven by our services across the transportation and energy sectors. Technical full-time equivalent employees in this segment decreased 9% to 765 during the second quarter of 2024 as compared to 842 for the same period last year.

Current wording

The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billing rates partially offset by a decrease in billable hours. During the third quarter of 2024, billable hours for this segment decreased by 3% to 291,000 as compared to 301,000 during the same period last year. Utilization for this segment increased to 75% during the third quarter of 2024 as compared to 71% during the same period last year. The increase in revenues was driven by our services across the consumer electronics and utilities sectors. Technical full-time equivalent employees in this segment decreased 9% to 745 during the third quarter of 2024 as compared to 821 for the same period last year.

Previous wording

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 second quarter of 2024 was primarily due to an increase in occupancy expense of $527,000 and an increase in depreciation and amortization expense of $300,000. The increases in occupancy expense and depreciation and amortization were primarily due to investment in our corporate infrastructure. Our land lease with the State of Arizona was extended on June 19, 2024. This extension will result in additional non-cash rent expense of approximately $1,085,000 in each of the third and fourth quarters of 2024. This increased level of rent expense will continue through the extended lease term ending in January of 2043 with adjustments in 2033 and 2038 based on the consumer price index. We also expect other operating expenses to grow as we selectively add new talent and make investments in our corporate infrastructure.

Current wording

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 third quarter of 2024 was primarily due to an increase in occupancy expense of $1,062,000. Our land lease with the State of Arizona was extended on June 19, 2024. This extension resulted in additional non-cash rent expense of approximately $1,085,000 during the third quarter of 2024. This increased level of rent expense will continue through the extended lease term ending in January of 2043 with adjustments in 2033 and 2038 based on the consumer price index. We expect other operating expenses to grow as we selectively add new talent and make investments in our corporate infrastructure.

Previous wording

The amount of reimbursable expenses will vary from quarter to quarter depending on the nature of our projects. The decrease in reimbursable expenses during the second quarter of 2024 was due to a decrease in proactive projects for the consumer electronics sector.

Current wording

The amount of reimbursable expenses will vary from quarter to quarter depending on the nature of our projects. The increase in reimbursable expenses during the third quarter of 2024 as compared to the same period last year was due to an increase in proactive projects for the consumer electronics sector.

Previous wording

The decrease in general and administrative expenses was primarily due to a decrease in travel and meals of $357,000 and a decrease in bad debt expense of $173,000. The decrease in travel and meals was due to the decrease in technical full-time equivalent employees. The decrease in bad debt expense was due to a decrease in write-offs. We expect general and administrative expenses to increase as we selectively add new talent and expand our business development and staff development initiatives.

Current wording

The decrease in general and administrative expenses was primarily due to a decrease in travel and meals of $509,000 and a decrease in personnel expenses of $309,000. The decrease in travel and meals was due to the decrease in technical full-time equivalent employees and a firm-wide principals' meeting which was held in the third quarter of 2023. We did not have any firm-wide meetings during the third quarter of 2024. The decrease in personnel expenses was primarily due to lower relocation costs. We expect general and administrative expenses to increase as we add new talent and expand our business development and staff development initiatives.

Previous wording

The increase in operating income for our Engineering and Other Scientific segment during the second quarter of 2024 as compared to the same period last year was due to an increase in revenues and an increase in utilization. The increase in revenues was due to an increase in billing rates partially offset by a decrease in billable hours. Growth during the second quarter of 2024 was driven by our reactive services across the transportation and energy sectors. The increase in utilization was due to our efforts to align resources with demand. The decrease in operating income for our Environmental and Health segment during the second quarter of 2024 was due to ongoing headwinds in the chemical industry.

Current wording

The increase in operating income for our Engineering and Other Scientific segment during the third quarter of 2024 as compared to the same period last year was due to an increase in revenues and an increase in utilization. The increase in revenues was due to an increase in billing rates partially offset by a decrease in billable hours. Growth during the third quarter of 2024 was driven by our services across the consumer electronics and utilities sectors. The slight increase in operating income for our Environmental and Health segment was due to an increase in utilization.

Previous wording

Certain operating expenses are excluded from our measure of segment operating income. These expenses include the costs associated with our human resources, legal, finance, information technology, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with our deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in our allowance for contract losses and doubtful accounts.

Current wording

Certain operating expenses are excluded from our measure of segment operating income. These expenses include the costs associated with our human resources, finance, information technology, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with our deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in our allowance for contract losses and doubtful accounts.

Previous wording

The decrease in corporate operating expenses during the second quarter of 2024 as compared to the same period last year was primarily due to a decrease in deferred compensation expense partially offset by an increase in the costs associated with our human resources, legal, finance, information technology and business development groups. During the second quarter of 2024, deferred compensation expense decreased $3,247,000, with a corresponding decrease to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan. This decrease consisted of an increase in the value of plan assets of $875,000 during the second quarter of 2024 as compared to an increase in the value of plan assets of $4,122,000 during the same period last year.

Current wording

The increase in corporate operating expenses during the third quarter of 2024 as compared to the same period last year was primarily due to an increase in deferred compensation. During the third quarter of 2024, deferred compensation expense increased $9,926,000, with a corresponding increase to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan. This increase consisted of an increase in the value of plan assets of $7,157,000 during the third quarter of 2024 as compared to a decrease in the value of plan assets of $2,769,000 during the same period last year.

Previous wording

Other income, net, consists primarily of changes in the value of assets associated with our deferred compensation plan, interest income earned on available cash, cash equivalents and short-term investments, and rental income from leasing space in our Silicon Valley and Natick facilities. The decrease in other income, net, was primarily due to a change in the value of assets associated with our deferred compensation plan partially offset by an increase in interest income. During the second quarter of 2024, other income, net, decreased by $3,247,000 with a corresponding decrease to deferred compensation expense, as compared to the same period last year, due to a change in the value of assets associated with our deferred compensation plan. This decrease consisted of an increase in the value of the plan assets of $875,000 during the second quarter of 2024 as compared to an increase in the value of the plan assets of $4,122,000 during the same period last year. The increase in interest income of $638,000 was due to higher interest rates.

Current wording

Other income, net, consists primarily of changes in the value of assets associated with our deferred compensation plan, interest income earned on available cash, cash equivalents and short-term investments, and rental income from leasing space in our Silicon Valley and Natick facilities. The increase in other income, net, was primarily due to a change in the value of assets associated with our deferred compensation plan. During the third quarter of 2024, other income, net, increased by $9,926,000 with a corresponding increase to deferred compensation expense, as compared to the same period last year, 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 $7,157,000 during the third quarter of 2024 as compared to a decrease in the value of the plan assets of $2,769,000 during the same period last year.

Previous wording

The decrease in our effective tax rate was due primarily to an increase in the excess tax benefit associated with stock-based awards. The excess tax benefit associated with stock-based awards was $726,000 during the second quarter of 2024 as compared to $12,000 during the same period last year.

Current wording

The increase in income tax expense was due to an increase in pre-tax income. The decrease in our effective tax rate was due primarily to an increase in the excess tax benefit associated with stock-based awards. The excess tax benefit associated with stock-based awards was $532,000 during the third quarter of 2024 and there was no excess tax benefit associated with stock-based awards during the same period last year.

Previous wording

Six Months Ended June 28, 2024 compared to Six Months Ended June 30, 2023

Current wording

Nine Months Ended September 27, 2024 compared to Nine Months Ended September 29, 2023

Previous wording

The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billable hours and an increase in billing rates. During the first six months of 2024, billable hours for this segment increased by 1% to 620,000 as compared to 614,000 during the same period last year. Utilization for this segment increased to 77% during the first six months of 2024 as compared to 71% during the same period last year. The increase in billable hours was driven by continued strong demand from the energy, vehicle and medical device industries. Technical full-time equivalent employees in this segment decreased 7% to 775 during the first six months of 2024 as compared to 830 for the same period last year.

Current wording

The increase in revenues for our Engineering and Other Scientific segment was due to an increase in billing rates partially offset by a decrease in billable hours. During the first nine months of 2024, billable hours for this segment decreased by 1% to 911,000 as compared to 916,000 during the same period last year. Utilization for this segment increased to 76% during the first nine months of 2024 as compared to 71% during the same period last year. The increase in revenues was driven by our services across the consumer products and utilities sectors. Technical full-time equivalent employees in this segment decreased 7% to 765 during the first nine months of 2024 as compared to 827 for the same period last year.

Previous wording

The decrease in revenues for our Environmental and Health segment was due to a decrease in billable hours partially offset by an increase in our realized billing rate. During the first six months of 2024, billable hours for this segment decreased by 4% to 152,000 as compared to 159,000 during the same period last year. Utilization in this segment increased to 68% during the first six months of 2024 as compared to 65% during the same period last year. The decrease in revenues for this segment was related to ongoing headwinds in the chemical sector. Technical full-time equivalent employees in this segment decreased by 8% to 214 during the first six months of 2024 as compared to 234 during the same period last year.

Current wording

The decrease in revenues for our Environmental and Health segment was due to a decrease in billable hours partially offset by an increase in our billing rates. During the first nine months of 2024, billable hours for this segment decreased by 6% to 223,000 as compared to 238,000 during the same period last year. Utilization in this segment increased to 68% during the first nine months of 2024 as compared to 66% during the same period last year. The decrease in revenues for this segment was related to ongoing headwinds in the chemical and life sciences sectors. Technical full-time equivalent employees in this segment decreased by 9% to 211 during the first nine months of 2024 as compared to 232 during the same period last year.

Previous wording

The increase in compensation and related expenses during the first six months of 2024 was due to an increase in payroll expense, an increase in fringe benefits and an increase in bonus expense partially offset by a change in the value of assets associated with our deferred compensation plan. Payroll expense increased $1,748,000 and fringe benefits increased by $876,000 during the first six months of 2024 due to the impact of our annual salary adjustments partially offset by the decrease in technical full-time equivalent employees. Bonus expense increased by $1,409,000 during the first six months of 2024 due to a corresponding increase to our bonus pool which is equal to 33% of income before income taxes, interest income, bonus expense, and stock-based compensation. During the first six months of 2024, deferred compensation expense decreased $897,000 with a corresponding decrease to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation

Current wording

The increase in compensation and related expenses during the first nine months of 2024 was due to a change in the value of assets associated with our deferred compensation plan, an increase in bonus expense, an increase in stock-based compensation partially offset by a decrease in payroll expense and fringe benefits. During the first nine months of 2024, deferred compensation expense increased $9,028,000 with a corresponding increase to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan. This increase consisted of an increase in the value of plan assets of $14,299,000 during the first nine months of 2024 as compared to an increase in the value of plan assets of $5,271,000 during the same period last year. Bonus expense increased by $2,246,000 during the first nine months of 2024 due to a corresponding increase to our bonus pool. Stock-based compensation expense increased $206,000 during the first nine months of 2024 due to an increase in unvested restricted stock unit grants. Payroll expense decreased by $151,000 and fringe benefits decreased by $199,000 during the first nine months of 2024 due to the decrease in technical full-time equivalent employees partially offset by impact of our annual salary adjustments.

Previous wording

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 six months of 2024 was primarily due to an increase in occupancy expense of $1,003,000 and an increase in depreciation expense of $636,000. The increase in occupancy expense was primarily due to investment in our corporate infrastructure. The increase in depreciation and amortization were also due to continued investments in our corporate infrastructure. Our land lease with the State of Arizona was extended on June 19, 2024. This extension will result in additional non-cash rent expense of approximately $1,085,000 in each of the third and fourth quarters of 2024. This increased level of rent expense will continue through the extended lease term ending in January of 2043 with adjustments in 2033 and 2038 based on the consumer price index. We also expect other operating expenses to grow as we selectively add new talent and make investments in our corporate infrastructure.

Current wording

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 nine months of 2024 was primarily due to an increase in occupancy expense of $2,065,000 and an increase in depreciation expense of $664,000. The increases in depreciation and amortization were due to continued investments in our corporate infrastructure. Our land lease with the State of Arizona was extended on June 19, 2024. This extension resulted in additional non-cash rent expense of approximately $1,231,000 during the first nine months of 2024. We expect other operating expenses to grow as we make investments in our corporate infrastructure.

Previous wording

The amount of reimbursable expenses will vary from quarter to quarter depending on the nature of our projects. The decrease in reimbursable expenses during the first six months of 2024 was due to a decrease in proactive projects for the consumer electronics sector.

Current wording

The amount of reimbursable expenses will vary from quarter to quarter depending on the nature of our projects. The decrease in reimbursable expenses during the first nine months of 2024 as compared to the same period last year was due to a decrease in proactive projects for the consumer electronics sector.

Previous wording

The decrease in general and administrative expenses was primarily due to a decrease in travel and meals of $306,000, a decrease in marketing and business development expenses of $159,000 and a decrease in bad debt expense of $109,000. The decrease in travel and meals was due to the decrease in technical full-time equivalent employees. The decrease in marketing and business development expenses was due to the decrease in technical full-time equivalent employees. The decrease in bad debt expense was due to a decrease in write-offs. We expect general and administrative expenses to increase as we expand our business development and staff development initiatives.

Current wording

The decrease in general and administrative expenses was primarily due to a decrease in outside consulting of $1,106,000, a decrease in travel and meals of 815,000 and a decrease in personnel expenses of $700,000 partially offset by an increase in other professional services of $802,000. Outside consulting decreased primarily due to activity associated with content creation for our external website during the first and second quarters of 2023. The decrease in travel and meals was due to the decrease in technical full-time equivalent employees and a firm-wide principals' meeting which was held in the third quarter of 2023. We did not have any firm-wide meetings during the first nine months of 2024. The decrease in personnel expenses was due to lower relocation and recruiting costs. Professional services increased primarily due to an increase in legal fees. We expect general and administrative expenses to increase as we expand our business development and staff development initiatives.

Previous wording

The increase in operating income for our Engineering and Other Scientific segment during the first six months of 2024 as compared to the same period last year was due to an increase in revenues and an increase in utilization. The increase in revenues was primarily due to an increase in billing rates. The increase in utilization was due to our efforts to align resources with demand. Growth was driven by demand for our services across the energy, vehicle and medical device industries. The increase in operating income for our Environmental and Health segment was driven by our regulatory consulting services.

Current wording

The increase in operating income for our Engineering and Other Scientific segment during the first nine months of 2024 as compared to the same period last year was due to an increase in revenues and an increase in utilization. The increase in revenues was primarily due to an increase in billing rates. The increase in utilization was due to our efforts to align resources with demand. The increase in operating income for our Environmental and Health segment was due to an increase in utilization.

Previous wording

Certain operating expenses are excluded from our measure of segment operating income. These expenses include the costs associated with our human resources, legal, finance, information technology, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with our deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in our allowance for contract losses and doubtful accounts.

Current wording

Certain operating expenses are excluded from our measure of segment operating income. These expenses include the costs associated with our human resources, finance, information technology, and business development groups; the deferred compensation expense/benefit due to the change in value of assets associated with our deferred compensation plan; stock-based compensation associated with restricted stock unit and stock option awards; and the change in our allowance for contract losses and doubtful accounts.

Previous wording

The increase in corporate operating expenses during the first six months of 2024 as compared to the same period last year was primarily due to an increase in the costs associated with our human resources, legal, finance, information technology and business development groups partially offset by a decrease in deferred compensation expense. During the first six months of 2024, deferred compensation expense decreased $897,000, with a corresponding decrease to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan. This decrease consisted of an increase in the value of plan assets of $7,142,000 during the first six months of 2024 as compared to an increase in the value of plan assets of $8,039,000 during the same period last year.

Current wording

The increase in corporate operating expenses during the first nine months of 2024 as compared to the same period last year was primarily due to an increase in deferred compensation expense and an increase in the costs associated with our human resources, finance, information technology and business development groups. During the first nine months of 2024, deferred compensation expense increased $9,028,000, with a corresponding increase to other income, net, as compared to the same period last year, due to the change in value of assets associated with our deferred compensation plan. This increase consisted of an increase in the value of plan assets of $14,299,000 during the first nine months of 2024 as compared to an increase in the value of plan assets of $5,271,000 during the same period last year.

Previous wording

Other income, net, consists primarily of changes in the value of assets associated with our deferred compensation plan, interest income earned on available cash, cash equivalents and short-term investments, and rental income from leasing space in our Silicon Valley and Natick facilities. The increase in other income, net, was primarily due to an increase in interest income partially offset by a change in the value of assets associated with our deferred compensation plan. During the first six months of 2024, interest income increased by $1,494,000 as compared to the same period last year due to higher interest rates. During the first six months of 2024, other income, net, decreased $897,000 with a corresponding decrease to deferred compensation expense, as compared to the same period last year, due to a change in the value of assets associated with our deferred compensation plan. This decrease consisted of an increase in the value of the plan assets of $7,142,000 during the first six months of 2024 as compared to an increase in the value of the plan assets of $8,039,000 during the same period last year.

Current wording

Other income, net, consists primarily of changes in the value of assets associated with our deferred compensation plan, interest income earned on available cash, cash equivalents and short-term investments, and rental income from leasing space in our Silicon Valley and Natick facilities. The increase in other income, net, was primarily due to a change in the value of assets associated with our deferred compensation plan and an increase in interest income. During the first nine months of 2024, other income, net, increased $9,028,000 with a corresponding increase to deferred compensation expense, as compared to the same period last year, 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 $14,299,000 during the first nine months of 2024 as compared to an increase of $5,271,000 during the same period last year. During the first nine months of 2023, interest income increased by $2,195,000 as compared to the same period last year due to an increase in interest rates.

Previous wording

The excess tax benefit associated with stock-based awards was $1,672,000 during the first six months of 2024 as compared to $3,639,000 during the same period last year. Excluding the impact of the excess tax benefit, the effective tax rate would have been 28.0% during the first six months of 2024 as compared to 28.6% during the same period last year.

Current wording

The increase in income tax expense was due to an increase in pre-tax income and a decrease in the excess tax benefit associated with stock-based awards. The excess tax benefit associated with stock-based awards was $2,204,000 during the first nine months of 2024 as compared to $3,639,000 during the same period last year. Excluding the impact of the excess tax benefit, the effective tax rate would have been 28.3% during the first nine months of 2024 as compared to 28.4% during the same period last year.

Previous wording

We financed our business during the first six months of 2024 through available cash. As of June 28, 2024, our cash and cash equivalents were $203,262,000 as compared to $187,150,000 at December 29, 2023.

Current wording

We financed our business during the first nine months of 2024 through available cash. As of September 27, 2024, our cash and cash equivalents were $219,708,000 as compared to $187,150,000 at December 29, 2023.

Previous wording

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.

Current wording

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 operating activities was due to an increase in net income and a smaller increase in accounts receivable during the first nine months of 2024 as compared to the same period last year.

Previous wording

The decrease in net cash used in investing activities during the first six months of 2024, as compared to the same period last year, was due to a decrease in capital expenditures primarily due to leasehold improvements during 2023 associated with our office and lab space in Philadelphia.

Current wording

The decrease in net cash used in investing activities during the first nine months of 2024, as compared to the same period last year, was due to a decrease in capital expenditures primarily due to leasehold improvements during 2023 associated with our office and lab space in Philadelphia.

Previous wording

The increase in net cash used in financing activities during the first six months of 2024, as compared to the same period last year, was due to an increase in repurchases of our common stock and an increase in dividends partially offset by a reduction in payroll taxes for restricted stock units.

Current wording

The decrease in net cash used in financing activities during the first nine months of 2024, as compared to the same period last year, was due to a decrease in repurchases of our common stock and a reduction in payroll taxes for restricted stock units partially offset by an increase in dividends.

Previous wording

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 $108,588,000 were recorded as a long-term liability on our unaudited condensed consolidated balance sheet at June 28, 2024. Vested amounts due under the plan of $11,535,000 were recorded as a current liability on our unaudited condensed consolidated balance sheet at June 28, 2024. Our 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 June 28, 2024, invested amounts under the plan of $106,295,000 were recorded as a long-term asset on our unaudited condensed consolidated balance sheet. As of June 28, 2024, invested amounts under the plan of $12,501,000 were recorded as a current asset on our unaudited condensed consolidated balance sheet.

Current wording

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 $115,527,000 were recorded as a long-term liability on our unaudited condensed consolidated balance sheet at September 27, 2024. Vested amounts due under the plan of $12,195,000 were recorded as a current liability on our unaudited condensed consolidated balance sheet at September 27, 2024. Our 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 September 27, 2024, invested amounts under the plan of $113,225,000 were recorded as a long-term asset on our unaudited condensed consolidated balance sheet. As of September 27, 2024, invested amounts under the plan of $13,569,000 were recorded as a current asset on our unaudited condensed consolidated balance sheet.

Previous wording

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.

Current wording

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

Previous wording

The following table shows EBITDA (determined as shown in the reconciliation table below) as a percentage of revenues before reimbursements for the three and six months ended June 28, 2024 and June 30, 2023:

Current wording

The following table shows EBITDA (determined as shown in the reconciliation table below) as a percentage of revenues before reimbursements for the three months ended September 27, 2024 and September 29, 2023:

Previous wording

The increase in EBITDA as a percentage of revenues before reimbursements during the second quarter of 2024 as compared to the same period last year was primarily due an increase in utilization and a decrease in general and administrative expenses. Our utilization increased to 75% during the second quarter of 2024 as compared to 69% during the same period last year. The increase in utilization was due to strong business activity for our reactive service offerings and our successful efforts to align resources with demand. The decrease in general and administrative expenses was due to a decrease in outside consulting expenses associated with a lower level of activity of content creation for our external website and a decrease in travel and meals due to the decrease in technical full-time equivalent employees.

Current wording

The increase in EBITDA as a percentage of revenues before reimbursements during the third quarter of 2024 as compared to the same period last year was primarily due to an increase in utilization and a decrease in general and administrative expenses. Our utilization increased to 73% during the third quarter of 2024 as compared to 70% during the same period last year. The increase in utilization was due to business activity for our proactive service offerings to the consumer electronics and utilities sectors and our successful efforts to align resources with demand.

Previous wording

The increase in EBITDA as a percentage of revenues before reimbursements during the first six months of 2024 as compared to the same period last year was primarily due to an increase in utilization and a decrease in general and administrative expenses. Our utilization increased to 75% during the first six month of 2024 as compared to 70%

Current wording

The increase in EBITDA as a percentage of revenues before reimbursements during the first nine months of 2024 as compared to the same period last year was primarily due to the increase in utilization and a decrease in general and administrative expenses partially offset by an increase in other operating expenses. Our utilization increased to 75% during the first nine months of 2024 as compared to 70% during the same period last year. The increase in utilization was due to business activity across the consumer products and utilities sectors and our successful efforts to align resources with demand.

Previous wording

The following table is a reconciliation of EBITDA and EBITDAS to the most comparable GAAP measure, net income, for the three and six months ended June 28, 2024 and June 30, 2023:

Current wording

The following table is a reconciliation of EBITDA and EBITDAS to the most comparable GAAP measure, net income, for the three and nine months ended September 27, 2024 and September 29, 2023: