<SEC-DOCUMENT>0001144204-15-051539.txt : 20151016
<SEC-HEADER>0001144204-15-051539.hdr.sgml : 20151016
<ACCEPTANCE-DATETIME>20150824163331
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001144204-15-051539
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20150824

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EXPONENT INC
		CENTRAL INDEX KEY:			0000851520
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MANAGEMENT CONSULTING SERVICES [8742]
		IRS NUMBER:				770218904
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0103

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		EXPONENT INC
		STREET 2:		149 COMMONWEALTH DRIVE
		CITY:			MENLO PARK
		STATE:			CA
		ZIP:			94025
		BUSINESS PHONE:		650-326-9400

	MAIL ADDRESS:	
		STREET 1:		EXPONENT INC
		STREET 2:		149 COMMONWEALTH DRIVE
		CITY:			MENLO PARK
		STATE:			CA
		ZIP:			94025

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FAILURE GROUP INC
		DATE OF NAME CHANGE:	19930831
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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">August 24, 2015</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">Via EDGAR and FedEx</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Securities and Exchange Commission</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Division of Corporation Finance</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">100 F Street, N.E.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Attn: Jaime G. John</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 5%; text-indent: 0; font-weight: bold; padding: 0"><FONT STYLE="font-weight: normal">Re:</FONT></TD>
    <TD STYLE="width: 95%; text-indent: 0; font-weight: bold; padding: 0"><FONT STYLE="font-weight: normal">Exponent, Inc.</FONT></TD></TR>
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    <TD STYLE="text-indent: 0; font-weight: bold; padding: 0">&nbsp;</TD>
    <TD STYLE="text-indent: 0; font-weight: bold; padding: 0"><FONT STYLE="font-weight: normal">Form 10-K for the period ended January 2, 2015</FONT></TD></TR>
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    <TD STYLE="text-indent: 0; font-weight: bold; padding: 0">&nbsp;</TD>
    <TD STYLE="text-indent: 0; font-weight: bold; padding: 0"><FONT STYLE="font-weight: normal">Filed March 2, 2015</FONT></TD></TR>
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    <TD STYLE="padding: 0; text-indent: 0; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0; font-weight: bold"><FONT STYLE="font-weight: normal">File No. 0-18655</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Ms. John:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On behalf of Exponent, Inc. (&ldquo;<U>Exponent</U>&rdquo;),
this letter responds to the comments of the staff (the &ldquo;<U>Staff</U>&rdquo;) of the Securities and Exchange Commission (the
&ldquo;<U>Commission</U>&rdquo;) set forth in the letter dated August 17, 2015, in connection with the filing of the above-referenced
Form 10-K (the &ldquo;<U>Form 10-K</U>&rdquo;). For your convenience, the Staff&rsquo;s comment is reproduced below in bold type
and is followed by the Company&rsquo;s response.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Item 8. Financial Statements and Supplementary Data</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Note 1 &ndash; Summary of Significant Accounting Policies</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Goodwill, page 41</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>1.</B></TD><TD><B>We note that the two-step goodwill impairment test was not performed due to your conclusions based upon various qualitative
factors. We further note the disclosure on page 22 regarding your expectations that one [of] your major investigations will step-down
from its elevated level of activity. Based upon statements made by your CEO in your July 21, 2015 earnings call, it appears that
this major investigation is related to an oil spill in the Gulf and that the revenues from this project have ceased abruptly. Please
tell us the reporting unit to which this investigation has been allocated and how the events related to this project impact your
goodwill analysis.</B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">The investigation referred to on
page 22 of our Form 10-K and also referred to in our July 21, 2015 earnings call is work performed in our Environmental &amp; Earth
Sciences practice and our Ecological &amp; Biological Sciences practice. Both of these reporting units (practices) are included
in our Environmental and Health Segment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">The step-down in activity referred
to for this project was considered in our annual goodwill analysis performed as of November 28, 2014, and did not change our conclusion
that, after assessing the totality of the qualitative factors, it is more likely than not that the fair value of each of these
reporting units is greater than their respective carrying amounts. Although we were aware that the project was winding down, we
anticipated a gradual slowdown. However, there was no indication of impairment of goodwill for these reporting units and therefore
the two-step goodwill impairment test was not performed. The aggregate goodwill of approximately $4.0 million allocated to these
reporting units originated from an acquisition in 1997. The revenue and net income for each of these reporting units have increased
significantly since 1997 and the fair value of each of these reporting units significantly exceeded their net book value based
on the last quantitative test as of November 26, 2010. As a point of reference, Exponent&rsquo;s current market capitalization
is approximately $1.1 billion as compared to the total net book value of $259.6 million, which includes goodwill totaling $8.6
million as of July 3, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">With respect to the subsequent cessation
of revenues from the project, we assessed and concluded that an interim triggering event did not occur. Because of the significant
surplus of fair value over net book value in these reporting units, even taking into account the loss of the project margin, there
is no change to our conclusion that it is not more likely than not that there is an impairment loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">* * *</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, Exponent acknowledges the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Exponent is responsible for the adequacy and accuracy of the disclosure in the filing;</TD></TR></TABLE>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action
with respect to the filing; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Exponent will not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the
federal securities laws of the United States.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Please contact me at (650) 688-7053 if you
have any questions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.25in">Sincerely,<BR>
<BR>
<BR>
<U>/s/ Richard L. Schlenker</U><BR>
Richard L. Schlenker</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.25in">Executive Vice President and Chief Financial Officer</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">cc:</TD><TD STYLE="text-align: justify">Timothy Hoxie, Jones Day</TD>
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