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Literally every company I’ve ever worked for... gotta move on from Uncle D!
Utilization is calculated off a 40 hour work week. 40*52*utilization target. If your target is 90% and you bill 45 hours a week then you technically only need to work 42 weeks of the year. That leaves 10 weeks for PTO, firm holidays and a little bit of bench time.
My target util is 95%, so I have 5 weeks where I can be not billing assuming 45 (most of my projects have billed 42). 2.4 of those weeks are firm holidays. I now have 2.6 weeks to take 22 days of PTO AND do proposal work AND find a new project AND do training/learning/helping initiatives in person.
Deloitte lets you do this too.