Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 03, 2015 | Mar. 10, 2015 | Jun. 28, 2014 |
Document and Entity Information | |||
Entity Registrant Name | CRA INTERNATIONAL, INC. | ||
Entity Central Index Key | 1053706 | ||
Document Type | 10-K | ||
Document Period End Date | 3-Jan-15 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -2 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $220.30 | ||
Entity Common Stock, Shares Outstanding | 9,205,740 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenues | $306,371 | $278,432 | $270,390 |
Costs of services | 206,813 | 189,262 | 182,381 |
Gross profit | 99,558 | 89,170 | 88,009 |
Selling, general and administrative expenses | 69,074 | 64,242 | 67,235 |
Depreciation and amortization | 6,443 | 6,411 | 7,190 |
Goodwill impairment | 0 | 0 | 71,394 |
Income (loss) from operations | 24,041 | 18,517 | -57,810 |
Interest income | 163 | 155 | 264 |
Interest expense | -594 | -574 | -300 |
Other expense, net | -295 | -180 | -177 |
Income (loss) before (provision) benefit for income taxes | 23,315 | 17,918 | -58,023 |
(Provision) benefit for income taxes | -9,908 | -6,683 | 5,180 |
Net income (loss) | 13,407 | 11,235 | -52,843 |
Net (income) loss attributable to noncontrolling interest, net of tax | 231 | 135 | -147 |
Net income (loss) attributable to CRA International, Inc. | $13,638 | $11,370 | ($52,990) |
Net income per share attributable to CRA International, Inc.: | |||
Basic (in dollars per share) | $1.40 | $1.13 | ($5.21) |
Diluted (in dollars per share) | $1.38 | $1.12 | ($5.21) |
Weighted average number of shares outstanding: | |||
Basic (in shares) | 9,747 | 10,084 | 10,167 |
Diluted (in shares) | 9,897 | 10,173 | 10,167 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $13,407 | $11,235 | ($52,843) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | -3,280 | 964 | 1,950 |
Comprehensive income (loss) | 10,127 | 12,199 | -50,893 |
Less: comprehensive (income) loss attributable to noncontrolling interest | 231 | 135 | -147 |
Comprehensive income (loss) attributable to CRA International, Inc. | $10,358 | $12,334 | ($51,040) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $48,199 | $51,251 |
Accounts receivable, net of allowances of $4,177 at January 3, 2015 and $7,210 at December 28, 2013 | 58,080 | 57,856 |
Unbilled services, net of allowance of $2,233 at January 3, 2015 and at $1,827 at December 28, 2013 | 25,085 | 24,275 |
Prepaid expenses and other current assets | 13,165 | 11,775 |
Deferred income taxes | 20,638 | 17,806 |
Total current assets | 165,167 | 162,963 |
Property and equipment, net | 14,696 | 15,655 |
Goodwill | 82,303 | 81,573 |
Intangible assets, net of accumulated amortization of $9,584 at January 3, 2015 and $8,392 at December 28, 2013 | 4,757 | 4,537 |
Deferred income taxes, net of current portion | 174 | 955 |
Other assets | 47,915 | 54,621 |
Total assets | 315,012 | 320,304 |
Current liabilities: | ||
Accounts payable | 13,700 | 13,766 |
Accrued expenses | 66,548 | 65,657 |
Deferred revenue and other liabilities | 6,220 | 6,098 |
Deferred income taxes | 121 | |
Current portion of deferred rent | 1,623 | 2,322 |
Current portion of deferred compensation | 182 | 117 |
Total current liabilities | 88,394 | 87,960 |
Notes payable, net of current portion | 981 | 1,007 |
Deferred rent and facility-related non-current liabilities | 4,535 | 3,669 |
Deferred compensation and other non-current liabilities | 3,371 | 1,446 |
Deferred income taxes, net of current portion | 3,027 | 1,585 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, no par value; 1,000,000 shares authorized; none issued and outstanding | ||
Common stock, no par value; 25,000,000 shares authorized; 9,228,272 and 10,048,611 shares issued and outstanding at January 3, 2015 and December 28, 2013, respectively | 73,171 | 93,242 |
Retained earnings | 147,618 | 133,980 |
Accumulated other comprehensive loss | -6,704 | -3,424 |
Total CRA International, Inc. shareholders' equity | 214,085 | 223,798 |
Noncontrolling interest | 619 | 839 |
Total shareholders' equity | 214,704 | 224,637 |
Total liabilities and shareholders' equity | $315,012 | $320,304 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, net of allowances (in dollars) | $4,177 | $7,210 |
Allowance for unbilled services (in dollars) | 2,233 | 1,827 |
Intangible assets, net of accumulated amortization (in dollars) | $9,584 | $8,392 |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value ( in dollars per share ) | $0 | $0 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 9,228,272 | 10,048,611 |
Common stock, shares outstanding | 9,228,272 | 10,048,611 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Operating activities: | |||
Net income (loss) | $13,407 | $11,235 | ($52,843) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities, net of effect of acquired businesses: | |||
Depreciation and amortization | 6,438 | 6,460 | 5,841 |
Loss on disposal of property and equipment | 28 | 16 | 1,444 |
Goodwill impairment | 0 | 0 | 71,394 |
Deferred rent | 220 | -1,903 | -4,475 |
Deferred income taxes | -1,431 | 3,924 | -9,882 |
Share-based compensation expenses | 5,619 | 3,035 | 4,947 |
Excess tax benefits from share-based compensation | -392 | -7 | -81 |
Accounts receivable allowances | -2,996 | -2,186 | 2,814 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,929 | 9,917 | 10,271 |
Unbilled services | -738 | -2,997 | -4,674 |
Prepaid expenses and other current assets, and other assets | -86 | -20,160 | -19,870 |
Accounts payable, accrued expenses, and other liabilities | 8,152 | 11,114 | -13,411 |
Net cash provided by (used in) operating activities | 30,150 | 18,448 | -8,525 |
INVESTING ACTIVITIES | |||
Consideration relating to acquisitions, net | -1,784 | -15,591 | |
Purchase of property and equipment | -4,192 | -2,816 | -2,732 |
Purchase of investments | -9,494 | ||
Sale of investments | 23,989 | ||
Collections on notes receivable | 114 | 14 | 989 |
Net cash (used in) provided by investing activities | -5,862 | -18,393 | 12,752 |
Financing activities: | |||
Issuance of common stock, principally stock option exercises | 469 | 207 | 647 |
Borrowings under line of credit | 17,320 | ||
payments under line of credit | -17,320 | ||
Payments on notes payable | -26 | -700 | -650 |
Payments of debt issuance costs | -1,120 | ||
Tax withholding payment reimbursed by restricted shares | -1,222 | -730 | -1,360 |
Excess tax benefits from share-based compensation | 392 | 7 | 81 |
Repurchase of common stock | -25,492 | -2,190 | -9,062 |
Net cash used in financing activities | -25,879 | -4,526 | -10,344 |
Effect of foreign exchange rates on cash and cash equivalents | -1,461 | 271 | -19 |
Net decrease in cash and cash equivalents | -3,052 | -4,200 | -6,136 |
Cash and cash equivalents at beginning of period | 51,251 | 55,451 | 61,587 |
Cash and cash equivalents at end of period | 48,199 | 51,251 | 55,451 |
Noncash investing and financing activities: | |||
Issuance of common stock for acquired business | 427 | ||
Supplemental cash flow information: | |||
Cash paid for taxes | 15,580 | 2,887 | 8,718 |
Cash paid for interest | $443 | $339 | $223 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | CRA International, Inc. Shareholders' Equity | Common Stock | Receivables from Shareholders | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total |
In Thousands, except Share data, unless otherwise specified | |||||||
BALANCE at Dec. 31, 2011 | $267,604 | $98,578 | ($236) | $175,600 | ($6,338) | $803 | $268,407 |
BALANCE (in shares) at Dec. 31, 2011 | 10,329,051 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income (loss) | -52,990 | -52,990 | 147 | -52,843 | |||
Foreign currency translation adjustment | 1,950 | 1,950 | 1,950 | ||||
Exercise of stock options | 647 | 647 | 647 | ||||
Exercise of stock options (in shares) | 47,185 | 47,185 | |||||
Share-based compensation expense for employees | 4,868 | 4,868 | 4,868 | ||||
Restricted share vesting (in shares) | 216,528 | ||||||
Redemption of vested employee restricted shares for tax withholding | -1,360 | -1,360 | -1,360 | ||||
Redemption of vested employee restricted shares for tax withholding (in shares) | -69,207 | ||||||
Tax (deficit) benefit on stock options and restricted shares vesting | -576 | -576 | -576 | ||||
Payments received on notes receivable from shareholders | 116 | 116 | 116 | ||||
Shares repurchased | -9,062 | -9,062 | -9,062 | ||||
Shares repurchased (in shares) | -466,109 | -466,109 | |||||
Share-based compensation expense for non-employees | 79 | 79 | 79 | ||||
Equity transactions of noncontrolling interest | 8 | 8 | |||||
BALANCE at Dec. 29, 2012 | 211,276 | 93,174 | -120 | 122,610 | -4,388 | 958 | 212,234 |
BALANCE (in shares) at Dec. 29, 2012 | 10,057,448 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income (loss) | 11,370 | 11,370 | -135 | 11,235 | |||
Foreign currency translation adjustment | 964 | 964 | 964 | ||||
Exercise of stock options | 207 | 207 | 207 | ||||
Exercise of stock options (in shares) | 13,389 | 13,389 | |||||
Share-based compensation expense for employees | 2,888 | 2,888 | 2,888 | ||||
Restricted share vesting (in shares) | 134,384 | ||||||
Redemption of vested employee restricted shares for tax withholding | -730 | -730 | -730 | ||||
Redemption of vested employee restricted shares for tax withholding (in shares) | -37,642 | ||||||
Tax (deficit) benefit on stock options and restricted shares vesting | -254 | -254 | -254 | ||||
Payments received on notes receivable from shareholders | 120 | 120 | 120 | ||||
Shares repurchased | -2,190 | -2,190 | -2,190 | ||||
Shares repurchased (in shares) | -118,968 | -118,968 | |||||
Share-based compensation expense for non-employees | 147 | 147 | 147 | ||||
Equity transactions of noncontrolling interest | 16 | 16 | |||||
BALANCE at Dec. 28, 2013 | 223,798 | 93,242 | 133,980 | -3,424 | 839 | 224,637 | |
BALANCE (in shares) at Dec. 28, 2013 | 10,048,611 | 10,048,611 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income (loss) | 13,638 | 13,638 | -231 | 13,407 | |||
Foreign currency translation adjustment | -3,280 | -3,280 | -3,280 | ||||
Issuance of common stock | 427 | 427 | 427 | ||||
Issuance of common stock (in shares) | 22,520 | ||||||
Exercise of stock options | 469 | 469 | 469 | ||||
Exercise of stock options (in shares) | 20,931 | 20,931 | |||||
Share-based compensation expense for employees | 5,348 | 5,348 | 5,348 | ||||
Restricted share vesting (in shares) | 149,195 | ||||||
Redemption of vested employee restricted shares for tax withholding | -1,222 | -1,222 | -1,222 | ||||
Redemption of vested employee restricted shares for tax withholding (in shares) | -41,470 | ||||||
Tax (deficit) benefit on stock options and restricted shares vesting | 128 | 128 | 128 | ||||
Shares repurchased | -25,492 | -25,492 | -25,492 | ||||
Shares repurchased (in shares) | -971,515 | -971,515 | |||||
Share-based compensation expense for non-employees | 271 | 271 | 271 | ||||
Equity transactions of noncontrolling interest | 11 | 11 | |||||
BALANCE at Jan. 03, 2015 | $214,085 | $73,171 | $147,618 | ($6,704) | $619 | $214,704 | |
BALANCE (in shares) at Jan. 03, 2015 | 9,228,272 | 9,228,272 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies | ||||||||||
Description of Business | |||||||||||
CRA International, Inc. ("CRA") is a worldwide leading consulting services firm that applies advanced analytic techniques and in-depth industry knowledge to complex engagements for a broad range of clients. CRA offers services in two broad areas: litigation, regulatory, and financial consulting and management consulting. CRA operates in one business segment, which is consulting services. CRA operates its business under its registered trade name, Charles River Associates. | |||||||||||
Fiscal Year | |||||||||||
CRA's fiscal year end is the Saturday nearest December 31 of each year. CRA's fiscal years periodically contain 53 weeks rather than 52 weeks. Fiscal 2014 was a 53-week year; fiscal 2013 and fiscal 2012 were 52-week years. | |||||||||||
Principles of Consolidation | |||||||||||
The consolidated financial statements include the accounts of CRA and its wholly owned subsidiaries. In addition, as more fully explained below, the consolidated financial statements include CRA's interest in NeuCo, Inc. ("NeuCo"). All significant intercompany accounts have been eliminated. | |||||||||||
NeuCo Interest | |||||||||||
CRA's ownership interest in NeuCo is 55.89% for all periods presented. Therefore, NeuCo's financial results have been consolidated with CRA's and the portion of NeuCo's results allocable to its other owners is shown as "noncontrolling interest." NeuCo's revenues included in CRA's consolidated statements of operations for fiscal 2014, fiscal 2013, and fiscal 2012 totaled approximately $4.8 million, $5.1 million, and $5.5 million, respectively. NeuCo's net loss included in CRA's consolidated statements of operations for fiscal 2014 and fiscal 2013 was approximately $0.5 million and $0.3 million, respectively. NeuCo's net income included in CRA's consolidated statements of operations for fiscal fiscal 2012 was approximately $0.3 million. NeuCo's net loss, net of amounts allocable to its other owners, included in CRA's consolidated statements of operations for each of fiscal 2014 and fiscal 2013 was approximately $0.2 million. NeuCo's net income, net of amounts allocable to its other owners, included in CRA's consolidated statements of operations for fiscal 2012 was approximately $0.2 million. NeuCo's interim reporting schedule is based on calendar month-ends, and its fiscal year end is the last Saturday of November. CRA's quarterly results could include a few days reporting lag between CRA's quarter end and the most recent financial statements available from NeuCo. CRA does not believe that the reporting lag, if any, will have a significant impact on CRA's consolidated statements of operations or financial condition. | |||||||||||
Estimates | |||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make significant estimates and judgments 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 consolidated revenues and expenses during the reporting period. Estimates in these consolidated financial statements include, but are not limited to, accounts and unbilled receivable allowances, revenue recognition on fixed price contracts, depreciation of property and equipment, share-based compensation, valuation of acquired intangible assets, impairment of long lived assets and goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued compensation, accrued exit costs, and other accrued expenses. These items are monitored and analyzed by CRA for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. CRA bases its estimates on historical experience and various other assumptions that CRA believes to be reasonable under the circumstances. Actual results may differ from those estimates if CRA's assumptions based on past experience or other assumptions do not turn out to be substantially accurate. | |||||||||||
Revenue Recognition | |||||||||||
CRA derives substantially all of its revenues from the performance of professional services. The contracts that CRA enters into and operates under specify whether the engagement will be billed on a time-and-materials or a fixed-price basis. These engagements generally last three to six months, although some of CRA's engagements can be much longer in duration. Each contract must be approved by one of CRA's vice presidents. | |||||||||||
CRA recognizes substantially all of its revenues under written service contracts with its clients when the fee is fixed or determinable, as the services are provided, and only in those situations where collection from the client is reasonably assured and sufficient contractual documentation has been obtained. In certain cases CRA provides services to its clients without sufficient contractual documentation, or fees are tied to performance-based criteria, which require CRA to defer revenue in accordance with U.S. GAAP. In these cases, these amounts are fully reserved until all criteria for recognizing revenue are met. | |||||||||||
CRA's revenues include projects secured by our non-employee experts as well as projects secured by our employees. CRA recognizes all project revenue on a gross basis based on the consideration of the criteria set forth in Accounting Standards Codification ("ASC") Topic 605-45, Principal Agent Considerations. | |||||||||||
Most of CRA's revenue is derived from time-and-materials service contracts. Revenues from time-and-materials service contracts are recognized as services are provided based upon hours worked and contractually agreed-upon hourly rates, as well as indirect fees based upon hours worked. | |||||||||||
Revenues from the majority of CRA's fixed-price engagements are recognized on a proportional performance method based on the ratio of costs incurred, substantially all of which are labor-related, to the total estimated project costs. CRA derived approximately 15%, 13%, and 15% of consolidated revenues from fixed-price engagements in fiscal 2014, fiscal 2013, and fiscal 2012, respectively. In general, project costs are classified as costs of services and are based on the direct salary of the consultants on the engagement plus all direct expenses incurred to complete the engagement, including any amounts billed to CRA by non-employee experts. The proportional performance method is used for fixed-price contracts because reasonably dependable estimates of the revenues and costs applicable to various stages of a contract can be made, based on historical experience and the terms set forth in the contract, and are indicative of the level of benefit provided to CRA's clients. Fixed-price contracts generally convert to time-and-materials contracts in the event the contract terminates. CRA's management maintains contact with project managers to discuss the status of the projects and, for fixed-price engagements, management is updated on the budgeted costs and resources required to complete the project. These budgets are then used to calculate revenue recognition and to estimate the anticipated income or loss on the project. Occasionally, CRA has been required to commit unanticipated additional resources to complete projects, which has resulted in lower than anticipated income or losses on those contracts. CRA may experience similar situations in the future. Provisions for estimated losses on contracts are made during the period in which such losses become probable and can be reasonably estimated. To date, such losses have not been significant. | |||||||||||
Revenues also include reimbursable expenses, which include reimbursements for travel and other out-of-pocket expenses, outside consultants, and other reimbursable expenses. Reimbursable expenses are as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | |||||||||
January 3, | December 28, | December 29, | |||||||||
2015 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Reimbursable expenses | $ | 36,676 | $ | 37,320 | $ | 33,530 | |||||
CRA maintains accounts receivable allowances for estimated losses and disputed amounts resulting from clients' failure to make required payments. CRA bases its estimates on historical collection experience, current trends, and credit policy. In determining these estimates, CRA examines historical write-offs of its receivables and reviews client accounts to identify any specific customer collection issues. | |||||||||||
If the financial condition of CRA's customers were to deteriorate or disputes were to arise regarding the services provided, resulting in an impairment of their ability or intent to make payment, additional allowances may be required. | |||||||||||
Unbilled services represent revenue recognized by CRA for services performed but not yet billed to the client. Deferred revenue represents amounts billed or collected in advance of services rendered. | |||||||||||
CRA collects goods and services and value added taxes from customers and records these amounts on a net basis, which is within the scope of ASC Topic 605-45, Principal Agent Considerations. | |||||||||||
Cash Equivalents | |||||||||||
Cash equivalents consist principally of money market funds and commercial paper with maturities of three months or less when purchased. As of January 3, 2015, a substantial portion of CRA's cash accounts was concentrated at a single financial institution, which potentially exposes CRA to credit risks. The financial institution has a short-term credit rating of A-2 by Standard & Poor's ratings services. CRA has not experienced any losses related to such accounts. CRA does not believe that there is significant risk of non-performance by the financial institution. CRA's cash on deposit is fully liquid and CRA continually monitors the credit ratings of the institution. | |||||||||||
The carrying amounts of these instruments classified as cash equivalents are stated at amortized cost, which approximates fair value because of their short-term maturity. | |||||||||||
Fair Value of Financial Instruments | |||||||||||
ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement), then priority to quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market (Level 2 measurement), then the lowest priority to unobservable inputs (Level 3 measurement). | |||||||||||
The following table shows CRA's financial instruments as of January 3, 2015 and December 28, 2013 that are measured and recorded in the financial statements at fair value on a recurring basis (in thousands): | |||||||||||
January 3, 2015 | |||||||||||
Quoted Prices in | Significant | Unobservable | |||||||||
Active Markets | Other | Inputs | |||||||||
for Identical | Observable | ||||||||||
Assets or Liabilities | Inputs | ||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Assets: | |||||||||||
Money market funds | $ | 20,042 | $ | — | $ | — | |||||
Commercial paper | — | — | — | ||||||||
| | | | | | | | | | | |
Total Assets | $ | 20,042 | $ | — | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Liabilities: | |||||||||||
Contingent acquisition liability | $ | — | $ | — | $ | 316 | |||||
| | | | | | | | | | | |
Total Liabilities | $ | — | $ | — | $ | 316 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
December 28, 2013 | |||||||||||
Quoted Prices in | Significant | Unobservable | |||||||||
Active Markets | Other | Inputs | |||||||||
for Identical | Observable | ||||||||||
Assets or Liabilities | Inputs | ||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Assets: | |||||||||||
Money market funds | $ | 21,034 | $ | — | $ | — | |||||
Commercial paper | — | 9,000 | — | ||||||||
| | | | | | | | | | | |
Total Assets | $ | 21,034 | $ | 9,000 | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Liabilities: | |||||||||||
Contingent acquisition liability | $ | — | $ | — | $ | — | |||||
| | | | | | | | | | | |
Total Liabilities | $ | — | $ | — | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The fair values of CRA's money market funds are based on quotes received from third-party banks. The fair value of commercial paper is based on broker quotes that utilize observable market inputs. | |||||||||||
The fair value of the contingent acquisition liability is based on the use of a Monte Carlo model. This fair value measure is based on significant inputs not observed in the market and thus represents a Level 3 measurement. The significant unobservable inputs used in the fair value measurements of this contingent acquisition liability are CRA's measures of the estimated payouts based on internally generated financial projections and discount rates. | |||||||||||
CRA's financial instruments, including cash, accounts receivable, loans and advances to employees and non-employee experts, accounts payable, and accrued expenses, are carried at cost, which approximates their fair value because of the short-term maturity of these instruments or because their stated interest rates are indicative of market interest rates. | |||||||||||
Goodwill | |||||||||||
In accordance with ASC Topic 350, "Intangibles—Goodwill and Other", goodwill is not subject to amortization, but is monitored at least annually for impairment, or more frequently, as necessary, if events or circumstances exist that would more likely than not reduce the fair value of the reporting unit below its carrying amount. For the CRA's goodwill impairment analysis, CRA operates under one reporting unit. Under ASC Topic 350, in performing the first step of the goodwill impairment testing and measurement process, CRA compares its entity-wide estimated fair value to net book value to identify potential impairment. Management estimates the entity-wide fair value utilizing CRA's market capitalization, plus an appropriate control premium. Market capitalization is determined by multiplying the shares outstanding on the test date by the market price of CRA's common stock on that date. CRA has utilized a control premium which considers appropriate industry, market and other pertinent factors, including indications of such premiums from data on recent acquisition transactions. If the fair value of CRA is less than its net book value, the second step is performed to determine if goodwill is impaired. If CRA determines through the impairment evaluation process that goodwill has been impaired, an impairment charge would be recorded in the consolidated statement of operations. | |||||||||||
There were no impairment losses related to goodwill during fiscal 2014 and fiscal 2013 as there were no events or circumstances that would more likely than not reduce CRA's fair value below its carrying amount. | |||||||||||
When CRA performed its annual impairment test in the fourth quarter of fiscal 2012, its net book value exceeded its market capitalization plus an estimated control premium. Therefore, CRA was required to perform the second step of the goodwill impairment test. In this step, CRA's fair value is allocated among all of its assets and liabilities, including any unrecognized intangible assets, in a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if CRA were being acquired in a business acquisition. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge is recorded for the difference. During the process of conducting the second step of the annual goodwill impairment test in the fourth quarter of fiscal 2012, CRA identified significant unrecognized intangible assets. The combination of these hypothetical unrecognized intangible assets and other hypothetical unrecognized fair value changes to the carrying values of other assets and liabilities, together with the lower fair value calculated in the first step of the annual impairment test, resulted in a goodwill impairment charge of $71.4 million in the fourth quarter of fiscal 2012. | |||||||||||
The re-measurement of goodwill is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed using CRA-specific information. CRA used a combination of the income, cost and market approach techniques to determine the fair value of its assets and liabilities. The fair value adjustment to goodwill was computed as the difference between CRA's fair value and the fair value of underlying assets and liabilities. The unobservable inputs used to determine the fair value of the underlying assets and liabilities were based on CRA-specific information such as estimates of revenue and cost growth rates, profit margins, discount rates, and cost estimates. | |||||||||||
Intangible Assets | |||||||||||
Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and amortized over their estimated useful lives. Intangible assets consist of non-competition agreements, customer relationships, customer lists, developed technology, and trademarks, all of which are amortized on a straight-line basis over their remaining useful lives of four to ten years. | |||||||||||
Property and Equipment | |||||||||||
Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method based on the estimated useful lives of three years for computer equipment, three to ten years for computer software, and ten years for furniture and fixtures. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the lease term or the estimated useful life of the leasehold improvements. Expenditures for maintenance and repairs are expensed as incurred. Expenditures for renewals and betterments are capitalized. | |||||||||||
Leases and Deferred Rent | |||||||||||
CRA leases all of its office space. Leases are evaluated and classified as operating or capital leases for financial reporting purposes. For leases that contain rent escalations and rent holidays, CRA records the total rent payable during the lease term, as determined above, on a straight-line basis over the term of the lease and records the difference between the rents paid and the straight-line rent as deferred rent. Additionally, any tenant improvement allowances received from the lessor are recorded as a reduction to rent expense. | |||||||||||
Impairment of Long-Lived Assets | |||||||||||
CRA reviews the carrying value of its long-lived assets (primarily property and equipment and intangible assets) to assess the recoverability of these assets whenever events or circumstances indicate that impairment may have occurred. Factors CRA considers important that could trigger an impairment review include the following: | |||||||||||
• | a significant underperformance relative to expected historical or projected future operating results; | ||||||||||
• | a significant change in the manner of CRA's use of the acquired asset or the strategy for CRA's overall business; and | ||||||||||
• | a significant negative industry or economic trend. | ||||||||||
If CRA determines that an impairment review is required, CRA would review the expected future undiscounted cash flows to be generated by the assets or asset groups. If CRA determines that the carrying value of long-lived assets or asset groups may not be recoverable, CRA would measure any impairment based on a projected discounted cash flow method using a discount rate determined by CRA to be commensurate with the risk inherent in CRA's current business model. If impairment is indicated through this review, the carrying amount of the assets would be reduced to their estimated fair value. | |||||||||||
Concentration of Credit Risk | |||||||||||
CRA's billed and unbilled receivables consist of receivables from a broad range of clients in a variety of industries located throughout the U.S. and in other countries. CRA performs a credit evaluation of its clients to minimize its collectability risk. Periodically, CRA will require advance payment from certain clients. However, CRA does not require collateral or other security. CRA maintains accounts receivable allowances for estimated losses and disputed amounts resulting from clients' failures to make required payments. CRA bases its estimates on historical collection experience, current trends, and credit policy. In determining these estimates, CRA examines historical write-offs of its receivables and reviews client accounts to identify any specific customer collection issues. If the financial condition of any of CRA's customers were to deteriorate, resulting in an impairment of their ability or intent to make payment, additional allowances may be required. | |||||||||||
A rollforward of the accounts receivable allowances is as follows (in thousands): | |||||||||||
Fiscal | Fiscal | Fiscal | |||||||||
Year | Year | Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 7,210 | $ | 9,459 | $ | 6,548 | |||||
Change related to NeuCo | (18 | ) | (2 | ) | — | ||||||
Increases to reserve | 948 | 5,619 | 6,854 | ||||||||
Amounts written off | (3,993 | ) | (7,891 | ) | (3,897 | ) | |||||
Effects of foreign currency translation | 30 | 25 | (46 | ) | |||||||
| | | | | | | | | | | |
Balance at end of period | $ | 4,177 | $ | 7,210 | $ | 9,459 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
A rollforward of the unbilled receivables allowances is as follows (in thousands): | |||||||||||
Fiscal | Fiscal | Fiscal | |||||||||
Year | Year | Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 1,827 | $ | 2,921 | $ | 2,521 | |||||
Increases to reserves | 5,242 | 443 | 1,329 | ||||||||
Amounts written off | (4,836 | ) | (1,538 | ) | (928 | ) | |||||
Effects of foreign currency translation | — | 1 | (1 | ) | |||||||
| | | | | | | | | | | |
Balance at end of period | $ | 2,233 | $ | 1,827 | $ | 2,921 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Amounts deemed uncollectible are recorded as a reduction to revenues. | |||||||||||
Share-Based Compensation | |||||||||||
CRA accounts for equity-based compensation using a fair value based recognition method. Under the fair value recognition requirements of ASC Topic 718, "Compensation-Stock Compensation" ("ASC Topic 718"), share-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as expense over the requisite service period of the award. The amount of share-based compensation expense recognized at any date must at least equal the portion of grant date value of the award that is vested at that date. In accordance with ASC Topic 718, for performance-vesting restricted stock units awarded to employees, CRA estimates share-based compensation cost at the grant date based on the fair value of the award and recognizes the cost over the requisite service period using the graded acceleration method. | |||||||||||
For share-based awards granted to non-employee experts, CRA accounts for the compensation under variable accounting in accordance with ASC Topic 718 and ASC Topic 505-50, "Equity-Based Payments to Non-Employees" (formerly Emerging Issues Task Force 96-18, "Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services"), and recognizes the cost over the related vesting period. | |||||||||||
Income Taxes | |||||||||||
CRA accounts for income taxes using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. | |||||||||||
In addition, the calculation of CRA's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different tax jurisdictions. CRA records liabilities for estimated tax obligations resulting in a provision for taxes that may become payable in the future, in accordance with ASC Topic 740-10, "Income Taxes," which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. CRA includes accrued interest and penalties, if any, related to uncertain tax positions in income tax expense. | |||||||||||
Foreign Currency Translation | |||||||||||
Balance sheet accounts of CRA's foreign subsidiaries are translated into U.S. dollars at year-end exchange rates and operating accounts are translated at average exchange rates for each year. The resulting translation adjustments are recorded in shareholders' equity as a component of accumulated other comprehensive income (loss). Foreign currency transactions are translated at current exchanges rates, with adjustments recorded in the statement of operations. The effect of transaction gains and losses recorded in income (loss) before (provision) benefit for income taxes amounted to losses of $0.3 million, $0.2 million, and $0.2 million for fiscal 2014, fiscal 2013, and fiscal 2012, respectively. | |||||||||||
Recent Accounting Standards | |||||||||||
Reporting of Going-Concern Uncertainties | |||||||||||
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and provides guidance to an organization's management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. CRA believes that the adoption of ASU 2014-15 will not have a material impact on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Accounting for Share-Based Payments | |||||||||||
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) ("ASU 2014-12"). ASU 2014-12 clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity's satisfaction of a performance target until it becomes probable that the performance target will be met. There are no new disclosures required under ASU 2014-12. ASU 2014-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. CRA believes that the adoption of ASU 2014-12 will not have a material impact on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Revenue from Contracts with Customers | |||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). The main provision of ASU 2014-09 is to recognize revenue when control of the goods or services transfers to the customer, as opposed to the existing guidance of recognizing revenue when the risks and rewards transfer to the customer. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. CRA has not yet determined the effects, if any, that the adoption of ASU 2014-09 may have on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Presentation of Unrecognized Tax Benefits | |||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11") to clarify the presentation of current and deferred income taxes on the balance sheet. Under ASU 2013-11, companies generally must present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, for a net operating loss carryforward, similar tax loss, or tax credit carryforward using the "net presentation" approach as a reduction of a deferred tax asset, with some allowed exceptions. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. CRA's adoption of ASU 2013-11 in the first quarter of fiscal 2014 had no impact on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Cumulative Translation Adjustment | |||||||||||
In March 2013, the FASB issued ASU No. 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity ("ASU 2013-05"). ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. ASU 2013-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied prospectively. CRA's adoption of ASU 2013-05 in the first quarter of fiscal 2014 had no impact on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Business_Acquisition
Business Acquisition | 12 Months Ended |
Jan. 03, 2015 | |
Business Acquisition | |
Business Acquisition | 2. Business Acquisition |
On January 31, 2013, CRA announced that an approximate 40-person litigation consulting team joined CRA, effective February 1, 2013. Under an agreement to hire the team, CRA accelerated the previously announced start dates of certain key personnel from May 2013. Under the terms of the transaction, CRA acquired certain intangible assets, accounts receivable, and certain client projects currently underway. The fair values of the assets acquired and the liabilities assumed as part of the acquisition were finalized in the first quarter of fiscal 2014. The acquisition was not material. The acquisition was accounted for under the purchase method of accounting, and the results of operations have been included in the accompanying statements of operations from the date of acquisition. | |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets, and Other Assets | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Prepaid Expenses and Other Current Assets, and Other Assets | ||||||||
Prepaid Expenses and Other Current Assets, and Other Assets | 3. Prepaid Expenses and Other Current Assets, and Other Assets | |||||||
Prepaid expenses and other current assets consist of the following (in thousands): | ||||||||
January 3, | December 28, | |||||||
2015 | 2013 | |||||||
Term loans to employees | $ | 1,564 | $ | 1,764 | ||||
Other | 11,601 | 10,011 | ||||||
| | | | | | | | |
Total | $ | 13,165 | $ | 11,775 | ||||
| | | | | | | | |
| | | | | | | | |
Other assets consist of the following (in thousands): | ||||||||
January 3, | December 28, | |||||||
2015 | 2013 | |||||||
Forgivable loans to employees and non-employee experts | $ | 42,907 | $ | 51,083 | ||||
Other | 5,008 | 3,538 | ||||||
| | | | | | | | |
Total | $ | 47,915 | $ | 54,621 | ||||
| | | | | | | | |
| | | | | | | | |
In order to attract and retain highly skilled professionals, CRA may issue forgivable loans or term loans to employees and non-employee experts which are classified in "prepaid expenses and other current assets" and "other assets" on the accompanying balance sheets as of January 3, 2015 and December 28, 2013. A portion of these loans is collateralized. The forgivable loans have terms that are generally between three and eight years. The principal amount of forgivable loans and accrued interest is forgiven by CRA over the term of the loans, so long as the employee or non-employee expert continues employment or affiliation with CRA and complies with certain contractual requirements. The expense associated with the forgiveness of the principal amount of the loans is recorded as compensation expense over the service period, which is consistent with the term of the loans. During fiscal 2014 and fiscal 2013, CRA issued approximately $10.9 million and $38.8 million, respectively, in forgivable loans to employees and non-employee experts for future service. | ||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Goodwill and Intangible Assets | |||||||||||
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets | ||||||||||
The changes in the carrying amount of goodwill for fiscal 2014 and fiscal 2013 are as follows (in thousands): | |||||||||||
Goodwill, | Accumulated | Goodwill, | |||||||||
gross | impairment | net | |||||||||
losses | |||||||||||
Balance at December 28, 2013 | $ | 153,466 | $ | (71,893 | ) | $ | 81,573 | ||||
Goodwill adjustments related to acquisitions | 1,797 | — | 1,797 | ||||||||
Effect of foreign currency translation | (1,067 | ) | — | (1,067 | ) | ||||||
| | | | | | | | | | | |
Balance at January 3, 2015 | $ | 154,196 | $ | (71,893 | ) | $ | 82,303 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Goodwill, | Accumulated | Goodwill, | |||||||||
gross | impairment | net | |||||||||
losses | |||||||||||
Balance at December 29, 2012 | $ | 142,658 | $ | (71,893 | ) | $ | 70,765 | ||||
Goodwill adjustments related to acquisitions | 10,563 | — | 10,563 | ||||||||
Goodwill adjustments related to NeuCo | (63 | ) | — | (63 | ) | ||||||
Effect of foreign currency translation | 308 | — | 308 | ||||||||
| | | | | | | | | | | |
Balance at December 28, 2013 | $ | 153,466 | $ | (71,893 | ) | $ | 81,573 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
There were no impairment losses related to goodwill during fiscal 2014 or fiscal 2013. When CRA performed its annual impairment test in the fourth quarter of fiscal 2012, its net book value exceeded its market capitalization plus an estimated control premium. Therefore, CRA was required to perform the second step of the goodwill impairment test, which resulted in a goodwill impairment charge of $71.4 million. CRA recorded this goodwill impairment charge in the fourth quarter of fiscal 2012. | |||||||||||
Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and amortized over their expected useful lives. There were no impairment losses related to intangible assets during fiscal 2014, fiscal 2013, or fiscal 2012. | |||||||||||
The components of acquired identifiable intangible assets are as follows (in thousands): | |||||||||||
January 3, | December 28, | ||||||||||
2015 | 2013 | ||||||||||
Non-competition agreements, net of accumulated amortization of $4,046 and $3,802, respectively | $ | 236 | $ | 598 | |||||||
Customer relationships, net of accumulated amortization of $3,746 and $3,550, respectively | 4,521 | 3,909 | |||||||||
Other intangible assets, net of accumulated amortization of $1,792 and $1,040, respectively | — | 30 | |||||||||
| | | | | | | | ||||
$ | 4,757 | $ | 4,537 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Amortization of intangible assets was $1.4 million, $1.2 million, and $0.8 million in fiscal 2014, fiscal 2013, and fiscal 2012, respectively. Amortization of intangible assets held at January 3, 2015 for the next five fiscal years is expected to be as follows (in thousands): | |||||||||||
Fiscal Year | Amortization | ||||||||||
Expense | |||||||||||
2015 | $ | 1,063 | |||||||||
2016 | 899 | ||||||||||
2017 | 857 | ||||||||||
2018 | 831 | ||||||||||
2019 | 563 | ||||||||||
| | | | | |||||||
$ | 4,213 | ||||||||||
| | | | | |||||||
| | | | | |||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Property and Equipment | ||||||||
Property and Equipment | 5. Property and Equipment | |||||||
Property and equipment consist of the following (in thousands): | ||||||||
January 3, | December 28, | |||||||
2015 | 2013 | |||||||
Computer, office equipment and software | $ | 24,197 | $ | 25,034 | ||||
Leasehold improvements | 21,613 | 21,388 | ||||||
Furniture | 7,730 | 7,788 | ||||||
| | | | | | | | |
53,540 | 54,210 | |||||||
Accumulated depreciation and amortization | (38,844 | ) | (38,555 | ) | ||||
| | | | | | | | |
$ | 14,696 | $ | 15,655 | |||||
| | | | | | | | |
| | | | | | | | |
Depreciation expense, including amounts recorded in costs of services, was $5.0 million, $5.2 million, and $5.0 million, in fiscal 2014, fiscal 2013, and fiscal 2012, respectively. | ||||||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Accrued Expenses. | ||||||||
Accrued Expenses | 6. Accrued Expenses | |||||||
Accrued expenses consist of the following (in thousands): | ||||||||
January 3, | December 28, | |||||||
2015 | 2013 | |||||||
Compensation and related expenses | $ | 61,527 | $ | 51,960 | ||||
Income taxes payable | 490 | 3,503 | ||||||
Other | 4,531 | 10,194 | ||||||
| | | | | | | | |
$ | 66,548 | $ | 65,657 | |||||
| | | | | | | | |
| | | | | | | | |
As of January 3, 2015 and December 28, 2013, $49.2 million and $40.0 million of accrued bonuses for fiscal 2014 and fiscal 2013, respectively, were included above in "Compensation and related expenses". | ||||||||
Credit_Agreement
Credit Agreement | 12 Months Ended |
Jan. 03, 2015 | |
Credit Agreement | |
Credit Agreement | 7. Credit Agreement |
CRA is party to a credit agreement that provides CRA with a $125.0 million revolving credit facility and a $15 million sublimit for the issuance of letters of credit. CRA may use the proceeds of the revolving credit facility for working capital and other general corporate purposes. CRA may repay any borrowings under the revolving credit facility at any time, but no later than April 24, 2018. There was no amount outstanding under this revolving line of credit as of January 3, 2015. | |
As of January 3, 2015, the amount available under this revolving line of credit was reduced by certain letters of credit outstanding, which amounted to $1.3 million. Borrowings under the revolving credit facility bear interest at a rate per annum of either (i) the adjusted base rate, as defined in the credit agreement, plus an applicable margin, which varies between 0.50% and 1.50% depending on CRA's total leverage ratio as determined under the credit agreement, or (ii) the adjusted eurocurrency rate, as defined in the credit agreement, plus an applicable margin, which varies between 1.50% and 2.50% depending on CRA's total leverage ratio. CRA is required to pay a fee on the unused portion of the revolving credit facility at a rate per annum that varies between 0.25% and 0.375% depending on its total leverage ratio. Borrowings under the credit facility are secured by 100% of the stock of certain of CRA's U.S. subsidiaries and 65% of the stock of certain of its foreign subsidiaries, which represent approximately $6.4 million in net assets as of January 3, 2015. | |
Under the credit agreement, CRA must comply with various financial and non-financial covenants. Compliance with these financial covenants is tested on a fiscal quarterly basis. Any indebtedness outstanding under the credit facility may become immediately due and payable upon the occurrence of stated events of default, including CRA's failure to pay principal, interest or fees or a violation of any financial covenant. The financial covenants require CRA to maintain an adjusted consolidated EBITDA to consolidated interest expense ratio of more than 2.5 to 1.0 and to comply with a consolidated debt to adjusted consolidated EBITDA ratio of not more than 3.0 to 1.0. The non-financial covenant restrictions of the senior credit agreement include, but are not limited to, CRA's ability to incur additional indebtedness, engage in acquisitions or dispositions, and enter into business combinations. As of January 3, 2015, CRA was in compliance with the covenants of its credit agreement. | |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 03, 2015 | |
Employee Benefit Plans | |
Employee Benefit Plans | 8. Employee Benefit Plans |
CRA maintains qualified defined-contribution plans under Section 401(k) of the Internal Revenue Code, covering substantially all U.S. employees who meet specified age and service requirements. Company contributions are made at the discretion of CRA, and cannot exceed the maximum amount deductible under applicable provisions of the Internal Revenue Code. Effective in fiscal 2014, CRA also has a defined-contribution plan covering employees in the United Kingdom for which company contributions are made at the discretion of CRA. Company contributions under these plans amounted to approximately $1.6 million, $1.7 million, and $1.8 million for fiscal 2014, fiscal 2013, and fiscal 2012, respectively. | |
Leases
Leases | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Leases | |||||
Leases | 9. Leases | ||||
At January 3, 2015, CRA had the following minimum rental commitments for office space and equipment leases, all of which are under non-cancelable operating leases (in thousands): | |||||
Fiscal Year | Rental | ||||
Commitments | |||||
2015 | $ | 9,683 | |||
2016 | 7,160 | ||||
2017 | 5,991 | ||||
2018 | 5,020 | ||||
2019 | 4,172 | ||||
Thereafter | 27,329 | ||||
| | | | | |
$ | 59,355 | ||||
Future minimum rentals under sublease arrangements | (457 | ) | |||
| | | | | |
$ | 58,898 | ||||
| | | | | |
| | | | | |
Certain office leases contain renewal options that CRA may exercise at its discretion, which were not included in the amounts above. Rent expense was approximately $10.0 million, $9.6 million, and $12.4 million in fiscal 2014, fiscal 2013, and fiscal 2012, respectively. Included in rent expense was $0.9 million in restructuring charges in fiscal 2012. There were no restructuring charges during fiscal 2014 and fiscal 2013. | |||||
CRA is party to standby letters of credit with its bank in support of the minimum future lease payments under leases for office space amounting to $1.3 million as of January 3, 2015. | |||||
See Note 18 for subsequent event related to operating lease obligations. | |||||
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Net Income (Loss) Per Share | |||||||||||
Net Income per Share | 10. Net Income (Loss) Per Share | ||||||||||
Basic net income (loss) per share represents net income (loss) attributable to CRA International, Inc., divided by the weighted average shares of common stock outstanding during the period. Diluted net income per share represents net income divided by the weighted average shares of common stock and common stock equivalents, if applicable, outstanding during the period. Common stock equivalents arise from stock options, unvested shares of restricted stock and unvested restricted stock units, using the treasury stock method. Under the treasury stock method, the amount CRA would receive on the exercise of stock options, the vesting of shares of restricted stock and restricted stock units, the amount of compensation cost for future service that CRA has not yet recognized, and the amount of tax benefits that would be recorded in common stock when these stock options, shares of restricted stock, and restricted stock units become deductible are assumed to be used to repurchase shares at the average share price over the applicable fiscal period, and these repurchased shares are netted against the shares underlying these stock options, unvested shares of restricted stock, and unvested restricted stock units. CRA's unvested shares of restricted stock that contain rights to receive non-forfeitable dividends are considered participating securities, but net earnings available to these participating securities were not significant for fiscal 2014. A reconciliation of basic to diluted weighted average shares of common stock outstanding is as follows (in thousands): | |||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Basic weighted average shares outstanding | 9,747 | 10,084 | 10,167 | ||||||||
Common stock equivalents: | |||||||||||
Stock options and restricted stock | 150 | 89 | — | ||||||||
| | | | | | | | | | | |
Diluted weighted average shares outstanding | 9,897 | 10,173 | 10,167 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
For fiscal 2014, fiscal 2013, and fiscal 2012, certain share-based awards, which amounted to 764,748, 1,138,411, and 1,947,992 shares, respectively, were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding because they were anti-dilutive. These share-based awards were anti-dilutive because their exercise price exceeded the average market price over the applicable period. Additionally, approximately 140,000 common stock equivalents were excluded from diluted weighted average shares outstanding for fiscal 2012 because they were anti-dilutive as CRA had a net loss for that period. | |||||||||||
Common_Stock
Common Stock | 12 Months Ended |
Jan. 03, 2015 | |
Common Stock. | |
Common Stock | 11. Common Stock |
Share-Based Compensation. Approximately $5.3 million, $2.9 million, and $4.9 million of share-based compensation expense was recorded in fiscal 2014, fiscal 2013, and fiscal 2012, respectively, as an increase to common stock for share-based payment awards made to CRA's employees and directors, based on the estimated grant date fair values of stock options, shares of restricted stock, and restricted stock units vesting during the period. | |
CRA also recorded $271,000, $147,000, and $79,000 for fiscal 2014, fiscal 2013, and fiscal 2012, respectively, in shared-based compensation expense for grants to non-employees (other than directors). | |
Restricted Share Vesting. In fiscal 2014, fiscal 2013, and fiscal 2012, 149,195, 134,384, and 216,528 shares of restricted stock and restricted stock units vested, respectively. CRA redeemed 41,470, 37,642, and 69,207, of these shares from their holders in order to pay $1.2 million, $0.7 million, and $1.4 million, respectively, of employee tax withholdings. | |
Common Stock Repurchases and Retirements. On August 10, 2012, February 13, 2014, and October 23, 2014, CRA's Board of Directors authorized the repurchase of up to $5.0 million, $15.0 million, and $30.0 million, respectively, of CRA's common stock. CRA may repurchase shares under any of these programs in open market purchases (including through any Rule 10b5-1 plan adopted by CRA) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations. CRA records the retirement of its repurchased shares as a reduction to common stock. | |
During fiscal 2014, CRA repurchased and retired 971,515 shares of its common stock under these programs at an aggregate price of approximately $25.5 million, resulting in approximately $20.9 million available for future repurchases as of January 3, 2015. During fiscal 2013, CRA repurchased and retired 118,968 shares of its common stock under these programs at an aggregate price of approximately $2.2 million. During fiscal 2012, CRA repurchased and retired 466,109 shares of its common stock under these programs at an aggregate price of approximately $9.1 million. CRA records the retirement of its repurchased common stock as a reduction to common stock. | |
During fiscal 2014, fiscal 2013, and fiscal 2012, CRA did not repurchase any shares of its common stock from non-employee experts or employees based on contractual rights of first purchase contained in their stock purchase agreement with CRA. | |
Exercise of Stock Options. During fiscal 2014, 20,931 options were exercised for $0.5 million of proceeds. During fiscal 2013, 13,389 options were exercised for $0.2 million of proceeds. During fiscal 2012, 47,185 options were exercised for $0.6 million of proceeds. | |
Tax Benefits and Deficits on Stock Option Exercises and Restricted Share Vesting. In fiscal 2014, CRA recorded $0.1 million of tax benefits on stock options exercises and the vesting of shares of restricted stock and restricted stock units as a decrease to common stock. CRA recorded tax deficits on stock options exercises and vesting of shares of restricted stock and restricted stock units as a decrease to common stock in fiscal 2013 and fiscal 2012, totaling $0.3 million and $0.6 million, respectively. | |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Compensation Arrangements | 12. Share-Based Compensation | ||||||||||||||||
CRA recorded approximately $5.3 million, $2.9 million, and $4.9 million of compensation expense for fiscal 2014, fiscal 2013, and fiscal 2012, respectively, for share-based awards consisting of stock options, shares of restricted stock, time-vesting restricted stock units, and performance-vesting restricted stock units issued to employees and directors based on their respective estimated grant date fair values. Performance-vesting restricted stock units are expensed using the graded acceleration method. | |||||||||||||||||
In addition, CRA recorded $271,000, $147,000, and $79,000 of share-based compensation expense during fiscal 2014, fiscal 2013, and fiscal 2012, respectively, for share-based awards consisting of stock options and shares of restricted stock issued to non-employees (other than directors). | |||||||||||||||||
CRA maintains share-based compensation plans that use restricted stock, stock options, restricted stock units, as well as an employee stock purchase plan, to provide incentives to its directors, employees and independent contractors. Additionally, during fiscal 2009, CRA implemented a long-term incentive program ("LTIP") for certain key employees. Under this program, participants may receive a mixture of stock options, time-vesting restricted stock units, and performance-vesting restricted stock units. The program is designed to reward key employees and provide participants the opportunity to share in the long-term growth of CRA. CRA has granted options, time-vesting restricted stock units, and performance-vesting restricted stock units under this program during fiscal 2009 through fiscal 2014, except fiscal 2012. These awards are granted under the 2006 Incentive Plan discussed below. | |||||||||||||||||
CRA's Amended and Restated 2006 Equity Incentive Plan, as amended (the "2006 Incentive Plan"), authorizes the grant of a variety of incentive and performance awards to CRA's directors, employees and independent contractors, including incentive stock options, nonqualified stock options, restricted stock awards, restricted stock unit awards, performance awards and other share-based awards. Each share of CRA's common stock issued pursuant to an award (other than a stock option) granted under the 2006 Incentive Plan on or after April 30, 2010 counts as 1.83 shares against the maximum number of shares issuable under the plan, as does any restricted stock unit or other performance award granted under the plan on or after April 30, 2010 to the extent that shares of CRA's common stock were or will be used for measurement purposes. This "fungibility ratio" with respect to shares of CRA's common stock issued pursuant to awards (other than stock options) granted under the plan, as well as restricted stock unit and other performance awards granted under the plan to the extent that shares of CRA's common stock are used for measurement purposes, was 2.2 for grants made on or after March 12, 2008 and before April 30, 2010 and 1.8 for grants made before March 12, 2008. The maximum number of shares issuable under the 2006 Incentive Plan is 4,874,000, consisting of (1) 500,000 shares initially reserved for issuance under the 2006 Incentive Plan, (2) 1,000,000 shares that either remained for future awards under our 1998 Incentive and Nonqualified Stock Option Plan (the "1998 Plan") on April 21, 2006, the date CRA's shareholders initially approved the 2006 Incentive Plan, or were subject to stock options issued under the 1998 Plan that were forfeited or terminated after April 21, 2006, (3) 210,000 shares approved by CRA's shareholders in 2008, (4) 1,464,000 shares approved by CRA's shareholders in 2010, and (5) the 1,700,000 shares that CRA has determined to use of the 2,500,000 shares approved by CRA's shareholders in 2012. | |||||||||||||||||
The following is a rollforward of the maximum number of shares issuable under the 2006 Incentive Plan as of January 3, 2015: | |||||||||||||||||
Actual | Shares Using | ||||||||||||||||
Shares | Fungibility Ratio | ||||||||||||||||
Maximum shares of common stock issuable under the 2006 Incentive Plan | 4,874,000 | ||||||||||||||||
Restricted shares or units granted/reserved through March 12, 2008 | 471,827 | (849,289 | ) | ||||||||||||||
Restricted shares or units granted/reserved from March 12, 2008 to April 29, 2010 | 352,932 | (776,450 | ) | ||||||||||||||
Restricted shares or units granted/reserved on or after April 30, 2010 | 1,481,999 | (2,710,594 | ) | ||||||||||||||
Cancellation of restricted shares or units through March 12, 2008 | 91,277 | 164,299 | |||||||||||||||
Cancellation of restricted shares or units from March 12, 2008 to April 29, 2010 | 91,964 | 202,321 | |||||||||||||||
Cancellation of restricted shares or units on or after April 30, 2010 | 470,424 | 860,877 | |||||||||||||||
Options granted | (1,094,726 | ) | |||||||||||||||
Options cancelled | 193,183 | ||||||||||||||||
Options forfeited | 27,731 | ||||||||||||||||
| | | | | | | | ||||||||||
Shares available for grant under the 2006 Incentive Plan | 891,352 | ||||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Under the 1998 Plan, 3,839,216 options to purchase shares have been granted. With the adoption of the 2006 Incentive Plan, no new options will be granted under the 1998 Plan. Under the terms of the 1998 Plan, options have been granted at an exercise price equal to the fair market value of the shares of common stock at the date of grant. Vesting terms were determined at the discretion of the Board of Directors and generally range from immediate vesting to vesting at various rates up to five years. In general, stock options terminate 7 to 10 years after the date of grant. | |||||||||||||||||
In addition, under CRA's 2004 Nonqualified Inducement Stock Option Plan, options to purchase 359,420 shares have been granted. With the adoption of the 2006 Incentive Plan, no new stock options will be granted under the 2004 Nonqualified Inducement Stock Option Plan. | |||||||||||||||||
Under CRA's 2009 Nonqualified Inducement Stock Option Plan, options to purchase 200,000 shares have been granted. A maximum of 250,000 shares may be issued pursuant to stock option grants under the 2009 Nonqualified Inducement Stock Option Plan. Accordingly, there are an additional 50,000 stock options available for grant under this plan. Each stock option granted under this plan vests over four years, has a term of seven years, and an exercise price equal to $50.00 per share. | |||||||||||||||||
A summary of option activity from all plans is as follows: | |||||||||||||||||
Options | Weighted | Weighted Average | Aggregate | ||||||||||||||
Average | Remaining | Intrinsic | |||||||||||||||
Exercise | Contractual | Value | |||||||||||||||
Price | Term | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding at December 28, 2013 | 1,292,349 | $ | 30.43 | ||||||||||||||
Fiscal 2014: | |||||||||||||||||
Granted | 178,608 | 30.97 | |||||||||||||||
Exercised | (20,931 | ) | 22.4 | ||||||||||||||
Forfeited | (295,081 | ) | 33.26 | ||||||||||||||
| | | | | | | | | | | | | | ||||
Outstanding at January 3, 2015 | 1,154,945 | 29.93 | 3.73 | $ | 6,403 | ||||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Options exercisable at January 3, 2015 | 737,760 | $ | 33.14 | 2.39 | $ | 3,746 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
The weighted average fair market value using the Black-Scholes option-pricing model of the stock options granted in fiscal 2014 and fiscal 2013 was $12.24 and $7.77, respectively. There were no stock options granted during fiscal 2012. The fair market value of the stock options at the date of grant was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate | 1.6 | % | 1.4 | % | |||||||||||||
Expected volatility | 43 | % | 47 | % | |||||||||||||
Weighted average expected life (in years) | 5.00 | 5.00 | |||||||||||||||
Expected dividends | — | — | |||||||||||||||
The risk-free interest rate is based on U.S. Treasury interest rates with corresponding terms consistent with the expected life of the stock options. Expected volatility and expected life are based on CRA's historical experience. Expected dividend yield was not considered in the option-pricing formula because CRA does not pay dividends and has no current plans to do so in the future. The forfeiture rate used was based upon historical experience. CRA may adjust the estimated forfeiture rate based upon actual experience. | |||||||||||||||||
The aggregate intrinsic value of stock options exercised in fiscal 2014, fiscal 2013, and fiscal 2012 was approximately $0.1 million, $0.1 million, and $0.4 million, respectively. The following table summarizes stock options outstanding and stock options exercisable as of January 3, 2015: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Prices | Number | Weighted-Average | Weighted-Average | Number | Weighted-Average | ||||||||||||
Outstanding at | Remaining | Exercise | Exercisable | Exercise | |||||||||||||
January 3, | Contractual | Price | at January 3, | Price | |||||||||||||
2015 | Life (years) | 2015 | |||||||||||||||
$18.48 | 254,355 | 5.88 | $ | 18.48 | 63,578 | $ | 18.48 | ||||||||||
$18.49 - 22.81 | 328,253 | 3.39 | 21.68 | 284,453 | 21.64 | ||||||||||||
$22.82 - 29.07 | 86,665 | 2.00 | 24.22 | 82,665 | 24.18 | ||||||||||||
$29.08 - 32.26 | 178,608 | 6.93 | 30.97 | — | — | ||||||||||||
$32.27 - 48.85 | 42,500 | 0.79 | 42.58 | 42,500 | 42.58 | ||||||||||||
$48.86 - 50.00 | 150,000 | 1.50 | 50.00 | 150,000 | 50.00 | ||||||||||||
$50.01 - 53.72 | 114,564 | 0.25 | 50.73 | 114,564 | 50.73 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total | 1,154,945 | 3.73 | $ | 29.93 | 737,760 | $ | 33.14 | ||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The following table summarizes the status of CRA's non-vested stock options since December 28, 2013: | |||||||||||||||||
Non-vested Options | |||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||
Shares | Fair Value | ||||||||||||||||
Non-vested at December 28, 2013 | 401,678 | $ | 8.16 | ||||||||||||||
Granted | 178,608 | 12.24 | |||||||||||||||
Vested | (153,126 | ) | 9.03 | ||||||||||||||
Forfeited | (9,975 | ) | 8.3 | ||||||||||||||
| | | | | | | | ||||||||||
Non-vested at January 3, 2015 | 417,185 | $ | 9.98 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
The total fair value of stock options that vested during fiscal 2014, fiscal 2013, and fiscal 2012 was $1.4 million, $1.3 million, and $1.5 million, respectively. As of January 3, 2015, there was $3.6 million of total unrecognized compensation cost, net of expected forfeitures, related to non-vested stock options granted. That cost is expected to be recognized over a weighted-average period of 3.2 years. | |||||||||||||||||
CRA grants restricted stock and time-vesting restricted stock unit awards, which are subject to the execution of a restricted stock agreement or restricted stock unit agreement, as applicable. Generally, shares of restricted stock and time-vesting restricted stock units vest in four equal annual installments beginning on the first anniversary of the date of grant. Total unrecognized compensation cost, net of expected forfeitures, related to restricted stock and time-vesting restricted stock unit awards as of January 3, 2015 was $5.8 million, which is expected to be recognized over a weighted-average period of 3.1 years. | |||||||||||||||||
The following table summarizes the status of CRA's non-vested restricted stock and time-vesting restricted stock unit awards since December 28, 2013: | |||||||||||||||||
Non-vested | |||||||||||||||||
Restricted Stock and Stock | |||||||||||||||||
Units | |||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||
Shares | Fair Value | ||||||||||||||||
Non-vested at December 28, 2013 | 309,038 | $ | 20.39 | ||||||||||||||
Granted | 135,593 | 28.51 | |||||||||||||||
Vested | (149,195 | ) | 21.75 | ||||||||||||||
Forfeited | (9,294 | ) | 20.95 | ||||||||||||||
| | | | | | | | ||||||||||
Non-vested at January 3, 2015 | 286,142 | $ | 23.72 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
In accordance with ASC Topic 718, for performance-vesting restricted stock units awarded to employees, CRA estimates share-based compensation cost at the grant date based on the fair value of the award and recognizes the cost over the requisite service period using the graded acceleration method. As of January 3, 2015, up to approximately 212,000 shares may become issuable under performance-vesting restricted stock unit awards upon achievement of certain financial performance goals, including revenue and profits, for a measurement period falling within the first quarter of fiscal 2014 through the fourth quarter of fiscal 2015, and up to approximately 149,000 shares may become issuable under performance-vesting restricted stock unit awards upon achievement of certain financial performance goals, including revenue and profits, for a measurement period falling within the first quarter of fiscal 2015 through the fourth quarter of fiscal 2016. | |||||||||||||||||
In fiscal 1998, CRA adopted its 1998 Employee Stock Purchase Plan. The 1998 Employee Stock Purchase Plan authorizes the issuance of up to an aggregate of 243,000 shares of common stock to participating employees at a purchase price equal to 85% of fair market value on either the first or the last day of the one-year offering period under the Stock Purchase Plan. In fiscal 2014, fiscal 2013, and fiscal 2012, there were no offering periods under this plan and no shares were issued. | |||||||||||||||||
Business_Segment_and_Geographi
Business Segment and Geographic Information | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Business Segment and Geographic Information | |||||||||||
Business Segment and Geographic Information | 13. Business Segment and Geographic Information | ||||||||||
CRA operates in one business segment, which is consulting services. Revenue and long-lived assets by country, based on the physical location of the operation to which the revenues or the assets relate, are as follows (in thousands): | |||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Revenue: | |||||||||||
United States | $ | 238,466 | $ | 216,815 | $ | 207,779 | |||||
United Kingdom | 49,127 | 46,987 | 51,059 | ||||||||
Other | 18,778 | 14,630 | 11,552 | ||||||||
| | | | | | | | | | | |
Total foreign | 67,905 | 61,617 | 62,611 | ||||||||
| | | | | | | | | | | |
$ | 306,371 | $ | 278,432 | $ | 270,390 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
January 3, | December 28, | ||||||||||
2015 | 2013 | ||||||||||
Long-lived assets (property and equipment, net): | |||||||||||
United States | $ | 12,753 | $ | 13,657 | |||||||
United Kingdom | 1,595 | 1,911 | |||||||||
Other | 348 | 87 | |||||||||
| | | | | | | | ||||
Total foreign | 1,943 | 1,998 | |||||||||
| | | | | | | | ||||
$ | 14,696 | $ | 15,655 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Income Taxes | |||||||||||
Income Taxes | 14. Income Taxes | ||||||||||
The components of income (loss) before (provision) benefit for income taxes are as follows (in thousands): | |||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Income (loss) before (provision) benefit for income taxes: | |||||||||||
U.S. | $ | 20,899 | $ | 13,659 | $ | (27,290 | ) | ||||
Foreign | 2,416 | 4,259 | (30,733 | ) | |||||||
| | | | | | | | | | | |
Total | $ | 23,315 | $ | 17,918 | $ | (58,023 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The provision (benefit) for income taxes consists of the following (in thousands): | |||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Currently payable: | |||||||||||
Federal | $ | 8,585 | $ | 1,241 | $ | 3,637 | |||||
Foreign | 876 | 1,264 | 50 | ||||||||
State | 1,878 | 254 | 1,015 | ||||||||
| | | | | | | | | | | |
11,339 | 2,759 | 4,702 | |||||||||
Deferred: | |||||||||||
Federal | (1,068 | ) | 3,592 | (8,163 | ) | ||||||
Foreign | (505 | ) | (238 | ) | 21 | ||||||
State | 142 | 570 | (1,740 | ) | |||||||
| | | | | | | | | | | |
$ | (1,431 | ) | $ | 3,924 | $ | (9,882 | ) | ||||
| | | | | | | | | | | |
$ | 9,908 | $ | 6,683 | $ | (5,180 | ) | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
A reconciliation of CRA's tax rates with the Federal statutory rate is as follows: | |||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Federal statutory rate | 35 | % | 35 | % | (35.0 | )% | |||||
State income taxes, net of federal income tax benefit | 3.6 | 4.4 | (1.3 | ) | |||||||
Goodwill impairment | — | — | 20.6 | ||||||||
Foreign losses benefited | (1.8 | ) | (2.8 | ) | (0.1 | ) | |||||
Losses not benefited | 0.6 | 0.3 | 4.2 | ||||||||
Foreign rate differential | 0.6 | (0.4 | ) | 2.1 | |||||||
Foreign tax credit | — | (0.1 | ) | (0.5 | ) | ||||||
Uncertain tax positions | 0.7 | (2.1 | ) | — | |||||||
Impact of NeuCo's tax provision charges | 0.9 | 1.5 | 0.1 | ||||||||
Permanently disallowed expenses | 2.1 | 1.6 | 1 | ||||||||
Prior period adjustments | 3 | — | — | ||||||||
Release of valuation allowance | (2.2 | ) | — | — | |||||||
Other | — | (0.1 | ) | — | |||||||
| | | | | | | | | | | |
42.5 | % | 37.3 | % | (8.9 | )% | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The effective tax rate in fiscal 2014 was higher than CRA's combined Federal and state statutory tax rate primarily due to a non-cash tax expense recorded in the second quarter of fiscal 2014 to correct an immaterial error in our previously issued consolidated financial statements offset slightly by other prior period adjustments recorded in the fourth quarter. The effective tax rate also included a benefit for the release of a valuation allowance as a result of recording a deferred tax liability associated with acquisition-related intangibles and the utilization of certain historical net operating losses that previously had a valuation allowance which were realized due to the profitability of the acquired business. | |||||||||||
The components of CRA's deferred tax assets (liabilities) are as follows (in thousands): | |||||||||||
January 3, | December 28, | ||||||||||
2015 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Accrued compensation and related expense | $ | 23,876 | $ | 21,064 | |||||||
Tax basis in excess of financial basis of net accounts receivable | 2,065 | 2,363 | |||||||||
Net operating loss carryforwards | 5,201 | 5,421 | |||||||||
Tax basis in excess of financial basis of fixed assets | 19 | 1,489 | |||||||||
Accrued expenses and other | 967 | 902 | |||||||||
| | | | | | | | ||||
Total gross deferred tax assets | 32,128 | 31,239 | |||||||||
Less: valuation allowance | (4,912 | ) | (6,101 | ) | |||||||
| | | | | | | | ||||
Total deferred tax assets net of valuation allowance | 27,216 | 25,138 | |||||||||
Deferred tax liabilities: | |||||||||||
Excess tax over book amortization | 5,708 | 2,938 | |||||||||
Tax basis in excess of financial basis of debentures | 3,844 | 5,024 | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | 9,552 | 7,962 | |||||||||
| | | | | | | | ||||
Net deferred tax assets | $ | 17,664 | $ | 17,176 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
In general, a valuation allowance is recorded against deferred tax assets because CRA's management believes, after considering the available evidence, that it is more likely than not that the assets will not be realized. Reductions in valuation allowances are a result of management's consideration of historical profitability, future expected results and the nature of the related deferred tax assets. | |||||||||||
The net change in the total valuation allowance for fiscal 2014 was a decrease of approximately $1.2 million compared to fiscal 2013. The $1.2 million decrease was primarily related to the recording of a $0.5 million deferred tax liability associated with acquisition-related intangibles, the utilization of $0.4 million net operating losses also as a result of the acquisition, as well as deferred tax changes that lowered the need for a valuation allowance by $0.2 million, offset partially by an additional valuation allowance recorded against certain foreign net operating losses of $0.1 million. | |||||||||||
The ultimate realization of deferred tax assets that continue to be subject to valuation allowances is dependent upon the generation of future taxable income during the periods and in the tax jurisdictions in which those temporary differences become deductible. | |||||||||||
At January 3, 2015 CRA had $9.9 million of foreign net operating loss carry forwards. The foreign operating losses have an indefinite life, except for $0.2 million that will begin to expire in fiscal 2016. NeuCo has net operating loss carryforwards for U.S. federal and U.S. state tax purposes of $10.4 million which are subject to a full valuation allowance and begin to expire in 2015. NeuCo files a separate U.S. federal tax return and none of its losses are available to offset CRA's consolidated taxable income. | |||||||||||
The aggregate changes in the balances of gross unrecognized tax benefits were as follows (in thousands): | |||||||||||
January 3, | December 28, | ||||||||||
2015 | 2013 | ||||||||||
Balance at beginning of period | $ | 372 | $ | 3,032 | |||||||
Additions for tax positions taken during prior years | 127 | 372 | |||||||||
Additions for tax positions taken during the current year | 45 | — | |||||||||
Settlements with tax authorities | (9 | ) | (3,032 | ) | |||||||
| | | | | | | | ||||
Balance at end of the period | $ | 535 | $ | 372 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
CRA files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. A number of years may elapse before an uncertain tax position, for which CRA has unrecognized tax benefits, is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, CRA believes that its unrecognized tax benefits reflect the most likely outcome. CRA adjusts these unrecognized tax benefits, and the associated interest, in light of changing facts and circumstances. At the end of fiscal 2014, CRA had $185,000 of interest accrued on its unrecognized tax benefit balance for a total unrecognized tax benefit balance on the balance sheet of $720,000. Of the total unrecognized tax benefit balance, $111,000 is offset by a future tax deduction when recognized. CRA reported $85,000 of interest and penalties related to unrecognized tax benefits in income tax expense during fiscal 2014 as compared to $67,000 during fiscal 2013. Settlement of any particular position could require the use of cash. Of the total $535,000 balance at the end of fiscal 2014, a favorable resolution would result in $467,000 being recognized as a reduction to the effective income tax rate in the period of resolution. It is reasonably likely that $162,000 of gross unrecognized tax benefits will reverse within the next twelve months. | |||||||||||
The number of years with open tax audits varies depending on the tax jurisdiction. CRA's major taxing jurisdiction is the United States. CRA is no longer subject to U.S. federal examinations by the Internal Revenue Service for years before fiscal 2011. CRA's United Kingdom subsidiary's corporate tax returns are no longer subject to examination by Her Majesty's Revenue and Customs for fiscal years before fiscal 2013. CRA is currently under examination in Germany for fiscal 2008 through fiscal 2011 and in France for fiscal 2011 and fiscal 2012. CRA believes its reserves for uncertain tax positions are adequate. | |||||||||||
CRA has not provided for deferred income taxes or foreign withholding taxes on undistributed earnings from its foreign subsidiaries of approximately $3.5 million as of January 3, 2015 because such earnings are considered to be indefinitely reinvested. CRA does not rely on these unremitted earnings as a source of funds for its domestic business as it expects to have sufficient cash flow in the U.S. to fund its U.S. operational and strategic needs. If CRA were to repatriate its foreign earnings that are indefinitely reinvested, it would accrue substantially no additional tax expense. | |||||||||||
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended |
Jan. 03, 2015 | |
Related-Party Transactions | |
Related-Party Transactions | 15. Related-Party Transactions |
CRA made payments to shareholders of CRA who performed consulting services exclusively for CRA in the amounts of $10.2 million, $6.1 million, and $5.4 million in fiscal 2014, fiscal 2013, and fiscal 2012, respectively. These payments were to exclusive non-employee experts for consulting services performed for CRA's clients in the ordinary course of business. | |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Restructuring Charges | |||||||||||
Restructuring Charges | 16. Restructuring Charges | ||||||||||
CRA did not incur any restructuring charges during fiscal 2014 and fiscal 2013. | |||||||||||
During fiscal 2012, CRA incurred pre-tax restructuring expenses of $6.7 million, of which approximately $5.4 million was for termination benefits, facility-related charges, asset write-downs and other charges in connection with the plan committed to by CRA's management during the third quarter of fiscal 2012 to eliminate and restructure selected practice areas and reduce selling, general and administrative costs. In connection with this plan, CRA eliminated its Chemicals practice and closed its Middle East operations. These restructuring actions, along with the repositioning of other select underperforming practice areas, resulted in the reduction of more than 60 consulting positions. Commensurate with these consulting staff reductions, CRA also took significant actions to lower its selling, general and administrative costs by reducing CRA's administrative staff, eliminating excess office space capacity, better rationalizing remaining office space, and lowering administrative spending, particularly related to outside contractors and professional fees. These restructuring actions were designed to intensify the focus of CRA's portfolio, increase the cohesiveness of its services and improve its margins and profitability. The majority of these actions occurred during the third quarter of fiscal 2012, and the remainder was completed during the fourth quarter of fiscal 2012. | |||||||||||
Additionally, during fiscal 2012, CRA entered into an agreement with the landlord of its London, England office to surrender the lease of one of the three floors it leased in the office building in London. Under this agreement, CRA surrendered its lease of this floor on June 30, 2012, instead of on the lease's original termination date of October 2, 2016, and paid the landlord approximately $1.2 million in connection with the surrender. In connection with this surrender, CRA incurred pre-tax restructuring charges of $1.7 million, which included the $1.2 million surrender charge and approximately $0.5 million of fixed asset write-offs and other charges or offsets. During fiscal 2012, CRA also recorded pre-tax restructuring credits of approximately $0.4 million related primarily to adjustments to its leased office space in Houston, TX and Chicago, IL. Of the $6.7 million of restructuring charges recorded during fiscal 2012, approximately $3.8 million was charged to cost of sales, $1.5 million was charged to selling, general and administrative expenses, and $1.4 million was charged to depreciation and amortization expense. | |||||||||||
The restructuring expenses and reserve balance are as follows as of January 3, 2015 and December 28, 2013 (in thousands): | |||||||||||
Office | Employee | Total | |||||||||
Vacancies | Workforce | Restructuring | |||||||||
Reduction | |||||||||||
Balance at December 29, 2012 | $ | 2,106 | $ | 873 | $ | 2,979 | |||||
Amounts paid, net of amounts received, during fiscal 2013 | (759 | ) | (729 | ) | (1,488 | ) | |||||
Non-cash adjustments and effect of foreign currency translation during fiscal 2013 | (177 | ) | (144 | ) | (321 | ) | |||||
| | | | | | | | | | | |
Balance at December 28, 2013 | $ | 1,170 | $ | — | $ | 1,170 | |||||
Amounts paid, net of amounts received, during fiscal 2014 | (750 | ) | — | (750 | ) | ||||||
Non-cash adjustments and effect of foreign currency translation during fiscal 2014 | 42 | — | 42 | ||||||||
| | | | | | | | | | | |
Balance at January 3, 2015 | $ | 462 | $ | — | $ | 462 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The $0.5 million restructuring liability as of January 3, 2015 is expected to be paid through the third quarter of fiscal 2015 and was classified in "current portion of deferred rent" on the accompanying balance sheet as of January 3, 2015. | |||||||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||
Jan. 03, 2015 | ||||||||||||||
Unaudited Interim Condensed Consolidated Financial Statements and Estimates | ||||||||||||||
Quarterly Financial Data (Unaudited) | 17. Quarterly Financial Data (Unaudited) | |||||||||||||
Quarter Ended | ||||||||||||||
March 29, | June 28, | September 27, | January 3, | |||||||||||
2014 | 2014 | 2014 | 2015 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenues | $ | 76,245 | $ | 78,184 | $ | 73,483 | $ | 78,459 | ||||||
Gross profit | 24,379 | 25,515 | 24,066 | 25,598 | ||||||||||
Income from operations | 5,629 | 6,493 | 5,795 | 6,124 | ||||||||||
Income before provision for income taxes | 5,384 | 6,334 | 5,575 | 6,022 | ||||||||||
Net income | 3,308 | 3,167 | 3,189 | 3,743 | ||||||||||
Net loss attributable to noncontrolling interest, net of tax | 102 | 21 | 35 | 73 | ||||||||||
Net income attributable to CRA International, Inc. | $ | 3,410 | $ | 3,188 | $ | 3,224 | 3,816 | |||||||
Basic net income per share | $ | 0.34 | $ | 0.32 | $ | 0.33 | $ | 0.41 | ||||||
Diluted net income per share | $ | 0.34 | $ | 0.32 | $ | 0.33 | $ | 0.40 | ||||||
Weighted average number of shares outstanding: | ||||||||||||||
Basic | 10,029 | 9,919 | 9,729 | 9,344 | ||||||||||
Diluted | 10,108 | 10,026 | 9,919 | 9,560 | ||||||||||
Quarter Ended | ||||||||||||||
March 30, | June 29, | September 28, | December 28, | |||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenues | $ | 63,130 | $ | 65,203 | $ | 74,427 | $ | 75,672 | ||||||
Gross profit | 21,115 | 20,161 | 23,850 | 24,044 | ||||||||||
Income (loss) from operations | 3,774 | 3,170 | 6,114 | 5,459 | ||||||||||
Income (loss) before (provision) benefit for income taxes | 3,377 | 3,368 | 5,952 | 5,221 | ||||||||||
Net income (loss) | 2,835 | 1,351 | 3,333 | 3,716 | ||||||||||
Net (income) loss attributable to noncontrolling interest, net of tax | 134 | 58 | (63 | ) | 6 | |||||||||
Net income (loss) attributable to CRA International, Inc. | 2,969 | 1,409 | 3,270 | 3,722 | ||||||||||
Basic net income (loss) per share | $ | 0.3 | $ | 0.14 | $ | 0.32 | $ | 0.37 | ||||||
Diluted net income (loss) per share | $ | 0.29 | $ | 0.14 | $ | 0.32 | $ | 0.37 | ||||||
Weighted average number of shares outstanding: | ||||||||||||||
Basic | 9,994 | 10,100 | 10,093 | 10,071 | ||||||||||
Diluted | 10,084 | 10,188 | 10,192 | 10,148 | ||||||||||
Earnings per share is calculated for each period, and the sum of the four quarters may not equal the full year amount. | ||||||||||||||
During the second quarter of fiscal 2014, CRA identified a prior period error, which was related to the valuation of deferred tax assets in CRA's previously issued consolidated financial statements, and recorded a non-cash tax expense of approximately $0.8 million to correct this error. CRA concluded that this error was not material to its prior reporting periods. | ||||||||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended |
Jan. 03, 2015 | |
Subsequent Event | |
Subsequent Event | 18. Subsequent Event |
On February 24, 2015, CRA entered into an amendment to its lease with BP Hancock LLC for the office space it rents in the building at 200 Clarendon Street, Boston, Massachusetts. Under this amendment, CRA will lease an additional 10,057 square feet of office space on the twenty-fifth floor of this building, at an annual rate (excluding customary operating costs and expenses) of $49 per square foot, for a term beginning on June 15, 2015 (or, if later, when landlord completes certain improvements to the space) and ending on June 30, 2020, with the option to extend this term for an additional three-year period. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Fiscal Year | Fiscal Year | ||||||||||
CRA's fiscal year end is the Saturday nearest December 31 of each year. CRA's fiscal years periodically contain 53 weeks rather than 52 weeks. Fiscal 2014 was a 53-week year; fiscal 2013 and fiscal 2012 were 52-week years. | |||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||
The consolidated financial statements include the accounts of CRA and its wholly owned subsidiaries. In addition, as more fully explained below, the consolidated financial statements include CRA's interest in NeuCo, Inc. ("NeuCo"). All significant intercompany accounts have been eliminated. | |||||||||||
NeuCo Interest | NeuCo Interest | ||||||||||
CRA's ownership interest in NeuCo is 55.89% for all periods presented. Therefore, NeuCo's financial results have been consolidated with CRA's and the portion of NeuCo's results allocable to its other owners is shown as "noncontrolling interest." NeuCo's revenues included in CRA's consolidated statements of operations for fiscal 2014, fiscal 2013, and fiscal 2012 totaled approximately $4.8 million, $5.1 million, and $5.5 million, respectively. NeuCo's net loss included in CRA's consolidated statements of operations for fiscal 2014 and fiscal 2013 was approximately $0.5 million and $0.3 million, respectively. NeuCo's net income included in CRA's consolidated statements of operations for fiscal fiscal 2012 was approximately $0.3 million. NeuCo's net loss, net of amounts allocable to its other owners, included in CRA's consolidated statements of operations for each of fiscal 2014 and fiscal 2013 was approximately $0.2 million. NeuCo's net income, net of amounts allocable to its other owners, included in CRA's consolidated statements of operations for fiscal 2012 was approximately $0.2 million. NeuCo's interim reporting schedule is based on calendar month-ends, and its fiscal year end is the last Saturday of November. CRA's quarterly results could include a few days reporting lag between CRA's quarter end and the most recent financial statements available from NeuCo. CRA does not believe that the reporting lag, if any, will have a significant impact on CRA's consolidated statements of operations or financial condition. | |||||||||||
Estimates | Estimates | ||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make significant estimates and judgments 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 consolidated revenues and expenses during the reporting period. Estimates in these consolidated financial statements include, but are not limited to, accounts and unbilled receivable allowances, revenue recognition on fixed price contracts, depreciation of property and equipment, share-based compensation, valuation of acquired intangible assets, impairment of long lived assets and goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued compensation, accrued exit costs, and other accrued expenses. These items are monitored and analyzed by CRA for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. CRA bases its estimates on historical experience and various other assumptions that CRA believes to be reasonable under the circumstances. Actual results may differ from those estimates if CRA's assumptions based on past experience or other assumptions do not turn out to be substantially accurate. | |||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||
CRA derives substantially all of its revenues from the performance of professional services. The contracts that CRA enters into and operates under specify whether the engagement will be billed on a time-and-materials or a fixed-price basis. These engagements generally last three to six months, although some of CRA's engagements can be much longer in duration. Each contract must be approved by one of CRA's vice presidents. | |||||||||||
CRA recognizes substantially all of its revenues under written service contracts with its clients when the fee is fixed or determinable, as the services are provided, and only in those situations where collection from the client is reasonably assured and sufficient contractual documentation has been obtained. In certain cases CRA provides services to its clients without sufficient contractual documentation, or fees are tied to performance-based criteria, which require CRA to defer revenue in accordance with U.S. GAAP. In these cases, these amounts are fully reserved until all criteria for recognizing revenue are met. | |||||||||||
CRA's revenues include projects secured by our non-employee experts as well as projects secured by our employees. CRA recognizes all project revenue on a gross basis based on the consideration of the criteria set forth in Accounting Standards Codification ("ASC") Topic 605-45, Principal Agent Considerations. | |||||||||||
Most of CRA's revenue is derived from time-and-materials service contracts. Revenues from time-and-materials service contracts are recognized as services are provided based upon hours worked and contractually agreed-upon hourly rates, as well as indirect fees based upon hours worked. | |||||||||||
Revenues from the majority of CRA's fixed-price engagements are recognized on a proportional performance method based on the ratio of costs incurred, substantially all of which are labor-related, to the total estimated project costs. CRA derived approximately 15%, 13%, and 15% of consolidated revenues from fixed-price engagements in fiscal 2014, fiscal 2013, and fiscal 2012, respectively. In general, project costs are classified as costs of services and are based on the direct salary of the consultants on the engagement plus all direct expenses incurred to complete the engagement, including any amounts billed to CRA by non-employee experts. The proportional performance method is used for fixed-price contracts because reasonably dependable estimates of the revenues and costs applicable to various stages of a contract can be made, based on historical experience and the terms set forth in the contract, and are indicative of the level of benefit provided to CRA's clients. Fixed-price contracts generally convert to time-and-materials contracts in the event the contract terminates. CRA's management maintains contact with project managers to discuss the status of the projects and, for fixed-price engagements, management is updated on the budgeted costs and resources required to complete the project. These budgets are then used to calculate revenue recognition and to estimate the anticipated income or loss on the project. Occasionally, CRA has been required to commit unanticipated additional resources to complete projects, which has resulted in lower than anticipated income or losses on those contracts. CRA may experience similar situations in the future. Provisions for estimated losses on contracts are made during the period in which such losses become probable and can be reasonably estimated. To date, such losses have not been significant. | |||||||||||
Revenues also include reimbursable expenses, which include reimbursements for travel and other out-of-pocket expenses, outside consultants, and other reimbursable expenses. Reimbursable expenses are as follows (in thousands): | |||||||||||
Year Ended | Year Ended | Year Ended | |||||||||
January 3, | December 28, | December 29, | |||||||||
2015 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Reimbursable expenses | $ | 36,676 | $ | 37,320 | $ | 33,530 | |||||
CRA maintains accounts receivable allowances for estimated losses and disputed amounts resulting from clients' failure to make required payments. CRA bases its estimates on historical collection experience, current trends, and credit policy. In determining these estimates, CRA examines historical write-offs of its receivables and reviews client accounts to identify any specific customer collection issues. | |||||||||||
If the financial condition of CRA's customers were to deteriorate or disputes were to arise regarding the services provided, resulting in an impairment of their ability or intent to make payment, additional allowances may be required. | |||||||||||
Unbilled services represent revenue recognized by CRA for services performed but not yet billed to the client. Deferred revenue represents amounts billed or collected in advance of services rendered. | |||||||||||
CRA collects goods and services and value added taxes from customers and records these amounts on a net basis, which is within the scope of ASC Topic 605-45, Principal Agent Considerations. | |||||||||||
Cash Equivalents | Cash Equivalents | ||||||||||
Cash equivalents consist principally of money market funds and commercial paper with maturities of three months or less when purchased. As of January 3, 2015, a substantial portion of CRA's cash accounts was concentrated at a single financial institution, which potentially exposes CRA to credit risks. The financial institution has a short-term credit rating of A-2 by Standard & Poor's ratings services. CRA has not experienced any losses related to such accounts. CRA does not believe that there is significant risk of non-performance by the financial institution. CRA's cash on deposit is fully liquid and CRA continually monitors the credit ratings of the institution. | |||||||||||
The carrying amounts of these instruments classified as cash equivalents are stated at amortized cost, which approximates fair value because of their short-term maturity. | |||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||
ASC Topic 820, Fair Value Measurements and Disclosures, establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement), then priority to quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market (Level 2 measurement), then the lowest priority to unobservable inputs (Level 3 measurement). | |||||||||||
The following table shows CRA's financial instruments as of January 3, 2015 and December 28, 2013 that are measured and recorded in the financial statements at fair value on a recurring basis (in thousands): | |||||||||||
January 3, 2015 | |||||||||||
Quoted Prices in | Significant | Unobservable | |||||||||
Active Markets | Other | Inputs | |||||||||
for Identical | Observable | ||||||||||
Assets or Liabilities | Inputs | ||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Assets: | |||||||||||
Money market funds | $ | 20,042 | $ | — | $ | — | |||||
Commercial paper | — | — | — | ||||||||
| | | | | | | | | | | |
Total Assets | $ | 20,042 | $ | — | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Liabilities: | |||||||||||
Contingent acquisition liability | $ | — | $ | — | $ | 316 | |||||
| | | | | | | | | | | |
Total Liabilities | $ | — | $ | — | $ | 316 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
December 28, 2013 | |||||||||||
Quoted Prices in | Significant | Unobservable | |||||||||
Active Markets | Other | Inputs | |||||||||
for Identical | Observable | ||||||||||
Assets or Liabilities | Inputs | ||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Assets: | |||||||||||
Money market funds | $ | 21,034 | $ | — | $ | — | |||||
Commercial paper | — | 9,000 | — | ||||||||
| | | | | | | | | | | |
Total Assets | $ | 21,034 | $ | 9,000 | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Liabilities: | |||||||||||
Contingent acquisition liability | $ | — | $ | — | $ | — | |||||
| | | | | | | | | | | |
Total Liabilities | $ | — | $ | — | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The fair values of CRA's money market funds are based on quotes received from third-party banks. The fair value of commercial paper is based on broker quotes that utilize observable market inputs. | |||||||||||
The fair value of the contingent acquisition liability is based on the use of a Monte Carlo model. This fair value measure is based on significant inputs not observed in the market and thus represents a Level 3 measurement. The significant unobservable inputs used in the fair value measurements of this contingent acquisition liability are CRA's measures of the estimated payouts based on internally generated financial projections and discount rates. | |||||||||||
CRA's financial instruments, including cash, accounts receivable, loans and advances to employees and non-employee experts, accounts payable, and accrued expenses, are carried at cost, which approximates their fair value because of the short-term maturity of these instruments or because their stated interest rates are indicative of market interest rates. | |||||||||||
Goodwill | Goodwill | ||||||||||
In accordance with ASC Topic 350, "Intangibles—Goodwill and Other", goodwill is not subject to amortization, but is monitored at least annually for impairment, or more frequently, as necessary, if events or circumstances exist that would more likely than not reduce the fair value of the reporting unit below its carrying amount. For the CRA's goodwill impairment analysis, CRA operates under one reporting unit. Under ASC Topic 350, in performing the first step of the goodwill impairment testing and measurement process, CRA compares its entity-wide estimated fair value to net book value to identify potential impairment. Management estimates the entity-wide fair value utilizing CRA's market capitalization, plus an appropriate control premium. Market capitalization is determined by multiplying the shares outstanding on the test date by the market price of CRA's common stock on that date. CRA has utilized a control premium which considers appropriate industry, market and other pertinent factors, including indications of such premiums from data on recent acquisition transactions. If the fair value of CRA is less than its net book value, the second step is performed to determine if goodwill is impaired. If CRA determines through the impairment evaluation process that goodwill has been impaired, an impairment charge would be recorded in the consolidated statement of operations. | |||||||||||
There were no impairment losses related to goodwill during fiscal 2014 and fiscal 2013 as there were no events or circumstances that would more likely than not reduce CRA's fair value below its carrying amount. | |||||||||||
When CRA performed its annual impairment test in the fourth quarter of fiscal 2012, its net book value exceeded its market capitalization plus an estimated control premium. Therefore, CRA was required to perform the second step of the goodwill impairment test. In this step, CRA's fair value is allocated among all of its assets and liabilities, including any unrecognized intangible assets, in a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if CRA were being acquired in a business acquisition. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge is recorded for the difference. During the process of conducting the second step of the annual goodwill impairment test in the fourth quarter of fiscal 2012, CRA identified significant unrecognized intangible assets. The combination of these hypothetical unrecognized intangible assets and other hypothetical unrecognized fair value changes to the carrying values of other assets and liabilities, together with the lower fair value calculated in the first step of the annual impairment test, resulted in a goodwill impairment charge of $71.4 million in the fourth quarter of fiscal 2012. | |||||||||||
The re-measurement of goodwill is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed using CRA-specific information. CRA used a combination of the income, cost and market approach techniques to determine the fair value of its assets and liabilities. The fair value adjustment to goodwill was computed as the difference between CRA's fair value and the fair value of underlying assets and liabilities. The unobservable inputs used to determine the fair value of the underlying assets and liabilities were based on CRA-specific information such as estimates of revenue and cost growth rates, profit margins, discount rates, and cost estimates. | |||||||||||
Intangible Assets | Intangible Assets | ||||||||||
Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and amortized over their estimated useful lives. Intangible assets consist of non-competition agreements, customer relationships, customer lists, developed technology, and trademarks, all of which are amortized on a straight-line basis over their remaining useful lives of four to ten years. | |||||||||||
Property and Equipment | Property and Equipment | ||||||||||
Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method based on the estimated useful lives of three years for computer equipment, three to ten years for computer software, and ten years for furniture and fixtures. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the lease term or the estimated useful life of the leasehold improvements. Expenditures for maintenance and repairs are expensed as incurred. Expenditures for renewals and betterments are capitalized. | |||||||||||
Leases and Deferred Rent | Leases and Deferred Rent | ||||||||||
CRA leases all of its office space. Leases are evaluated and classified as operating or capital leases for financial reporting purposes. For leases that contain rent escalations and rent holidays, CRA records the total rent payable during the lease term, as determined above, on a straight-line basis over the term of the lease and records the difference between the rents paid and the straight-line rent as deferred rent. Additionally, any tenant improvement allowances received from the lessor are recorded as a reduction to rent expense. | |||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | ||||||||||
CRA reviews the carrying value of its long-lived assets (primarily property and equipment and intangible assets) to assess the recoverability of these assets whenever events or circumstances indicate that impairment may have occurred. Factors CRA considers important that could trigger an impairment review include the following: | |||||||||||
• | a significant underperformance relative to expected historical or projected future operating results; | ||||||||||
• | a significant change in the manner of CRA's use of the acquired asset or the strategy for CRA's overall business; and | ||||||||||
• | a significant negative industry or economic trend. | ||||||||||
If CRA determines that an impairment review is required, CRA would review the expected future undiscounted cash flows to be generated by the assets or asset groups. If CRA determines that the carrying value of long-lived assets or asset groups may not be recoverable, CRA would measure any impairment based on a projected discounted cash flow method using a discount rate determined by CRA to be commensurate with the risk inherent in CRA's current business model. If impairment is indicated through this review, the carrying amount of the assets would be reduced to their estimated fair value. | |||||||||||
Concentration of Credit Risk | Concentration of Credit Risk | ||||||||||
CRA's billed and unbilled receivables consist of receivables from a broad range of clients in a variety of industries located throughout the U.S. and in other countries. CRA performs a credit evaluation of its clients to minimize its collectability risk. Periodically, CRA will require advance payment from certain clients. However, CRA does not require collateral or other security. CRA maintains accounts receivable allowances for estimated losses and disputed amounts resulting from clients' failures to make required payments. CRA bases its estimates on historical collection experience, current trends, and credit policy. In determining these estimates, CRA examines historical write-offs of its receivables and reviews client accounts to identify any specific customer collection issues. If the financial condition of any of CRA's customers were to deteriorate, resulting in an impairment of their ability or intent to make payment, additional allowances may be required. | |||||||||||
A rollforward of the accounts receivable allowances is as follows (in thousands): | |||||||||||
Fiscal | Fiscal | Fiscal | |||||||||
Year | Year | Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 7,210 | $ | 9,459 | $ | 6,548 | |||||
Change related to NeuCo | (18 | ) | (2 | ) | — | ||||||
Increases to reserve | 948 | 5,619 | 6,854 | ||||||||
Amounts written off | (3,993 | ) | (7,891 | ) | (3,897 | ) | |||||
Effects of foreign currency translation | 30 | 25 | (46 | ) | |||||||
| | | | | | | | | | | |
Balance at end of period | $ | 4,177 | $ | 7,210 | $ | 9,459 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
A rollforward of the unbilled receivables allowances is as follows (in thousands): | |||||||||||
Fiscal | Fiscal | Fiscal | |||||||||
Year | Year | Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 1,827 | $ | 2,921 | $ | 2,521 | |||||
Increases to reserves | 5,242 | 443 | 1,329 | ||||||||
Amounts written off | (4,836 | ) | (1,538 | ) | (928 | ) | |||||
Effects of foreign currency translation | — | 1 | (1 | ) | |||||||
| | | | | | | | | | | |
Balance at end of period | $ | 2,233 | $ | 1,827 | $ | 2,921 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Amounts deemed uncollectible are recorded as a reduction to revenues. | |||||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||||
CRA accounts for equity-based compensation using a fair value based recognition method. Under the fair value recognition requirements of ASC Topic 718, "Compensation-Stock Compensation" ("ASC Topic 718"), share-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as expense over the requisite service period of the award. The amount of share-based compensation expense recognized at any date must at least equal the portion of grant date value of the award that is vested at that date. In accordance with ASC Topic 718, for performance-vesting restricted stock units awarded to employees, CRA estimates share-based compensation cost at the grant date based on the fair value of the award and recognizes the cost over the requisite service period using the graded acceleration method. | |||||||||||
For share-based awards granted to non-employee experts, CRA accounts for the compensation under variable accounting in accordance with ASC Topic 718 and ASC Topic 505-50, "Equity-Based Payments to Non-Employees" (formerly Emerging Issues Task Force 96-18, "Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services"), and recognizes the cost over the related vesting period. | |||||||||||
Income Taxes | Income Taxes | ||||||||||
CRA accounts for income taxes using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized. | |||||||||||
In addition, the calculation of CRA's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different tax jurisdictions. CRA records liabilities for estimated tax obligations resulting in a provision for taxes that may become payable in the future, in accordance with ASC Topic 740-10, "Income Taxes," which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. CRA includes accrued interest and penalties, if any, related to uncertain tax positions in income tax expense. | |||||||||||
Foreign Currency Translation | Foreign Currency Translation | ||||||||||
Balance sheet accounts of CRA's foreign subsidiaries are translated into U.S. dollars at year-end exchange rates and operating accounts are translated at average exchange rates for each year. The resulting translation adjustments are recorded in shareholders' equity as a component of accumulated other comprehensive income (loss). Foreign currency transactions are translated at current exchanges rates, with adjustments recorded in the statement of operations. The effect of transaction gains and losses recorded in income (loss) before (provision) benefit for income taxes amounted to losses of $0.3 million, $0.2 million, and $0.2 million for fiscal 2014, fiscal 2013, and fiscal 2012, respectively. | |||||||||||
Recent Accounting Standards | Recent Accounting Standards | ||||||||||
Reporting of Going-Concern Uncertainties | |||||||||||
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and provides guidance to an organization's management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. CRA believes that the adoption of ASU 2014-15 will not have a material impact on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Accounting for Share-Based Payments | |||||||||||
In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) ("ASU 2014-12"). ASU 2014-12 clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity's satisfaction of a performance target until it becomes probable that the performance target will be met. There are no new disclosures required under ASU 2014-12. ASU 2014-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. CRA believes that the adoption of ASU 2014-12 will not have a material impact on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Revenue from Contracts with Customers | |||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). The main provision of ASU 2014-09 is to recognize revenue when control of the goods or services transfers to the customer, as opposed to the existing guidance of recognizing revenue when the risks and rewards transfer to the customer. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. CRA has not yet determined the effects, if any, that the adoption of ASU 2014-09 may have on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Presentation of Unrecognized Tax Benefits | |||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11") to clarify the presentation of current and deferred income taxes on the balance sheet. Under ASU 2013-11, companies generally must present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, for a net operating loss carryforward, similar tax loss, or tax credit carryforward using the "net presentation" approach as a reduction of a deferred tax asset, with some allowed exceptions. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. CRA's adoption of ASU 2013-11 in the first quarter of fiscal 2014 had no impact on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Cumulative Translation Adjustment | |||||||||||
In March 2013, the FASB issued ASU No. 2013-05, Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity ("ASU 2013-05"). ASU 2013-05 addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. ASU 2013-05 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied prospectively. CRA's adoption of ASU 2013-05 in the first quarter of fiscal 2014 had no impact on its financial position, results of operations, cash flows, or disclosures. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Schedule of reimbursable expenses included in revenues | Reimbursable expenses are as follows (in thousands): | ||||||||||
Year Ended | Year Ended | Year Ended | |||||||||
January 3, | December 28, | December 29, | |||||||||
2015 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Reimbursable expenses | $ | 36,676 | $ | 37,320 | $ | 33,530 | |||||
Fair value of Financial Instruments | The following table shows CRA's financial instruments as of January 3, 2015 and December 28, 2013 that are measured and recorded in the financial statements at fair value on a recurring basis (in thousands): | ||||||||||
January 3, 2015 | |||||||||||
Quoted Prices in | Significant | Unobservable | |||||||||
Active Markets | Other | Inputs | |||||||||
for Identical | Observable | ||||||||||
Assets or Liabilities | Inputs | ||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Assets: | |||||||||||
Money market funds | $ | 20,042 | $ | — | $ | — | |||||
Commercial paper | — | — | — | ||||||||
| | | | | | | | | | | |
Total Assets | $ | 20,042 | $ | — | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Liabilities: | |||||||||||
Contingent acquisition liability | $ | — | $ | — | $ | 316 | |||||
| | | | | | | | | | | |
Total Liabilities | $ | — | $ | — | $ | 316 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
December 28, 2013 | |||||||||||
Quoted Prices in | Significant | Unobservable | |||||||||
Active Markets | Other | Inputs | |||||||||
for Identical | Observable | ||||||||||
Assets or Liabilities | Inputs | ||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Assets: | |||||||||||
Money market funds | $ | 21,034 | $ | — | $ | — | |||||
Commercial paper | — | 9,000 | — | ||||||||
| | | | | | | | | | | |
Total Assets | $ | 21,034 | $ | 9,000 | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Liabilities: | |||||||||||
Contingent acquisition liability | $ | — | $ | — | $ | — | |||||
| | | | | | | | | | | |
Total Liabilities | $ | — | $ | — | $ | — | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of rollforward of the accounts receivable allowances | A rollforward of the accounts receivable allowances is as follows (in thousands): | ||||||||||
Fiscal | Fiscal | Fiscal | |||||||||
Year | Year | Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 7,210 | $ | 9,459 | $ | 6,548 | |||||
Change related to NeuCo | (18 | ) | (2 | ) | — | ||||||
Increases to reserve | 948 | 5,619 | 6,854 | ||||||||
Amounts written off | (3,993 | ) | (7,891 | ) | (3,897 | ) | |||||
Effects of foreign currency translation | 30 | 25 | (46 | ) | |||||||
| | | | | | | | | | | |
Balance at end of period | $ | 4,177 | $ | 7,210 | $ | 9,459 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of rollforward of unbilled accounts receivable allowances | A rollforward of the unbilled receivables allowances is as follows (in thousands): | ||||||||||
Fiscal | Fiscal | Fiscal | |||||||||
Year | Year | Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 1,827 | $ | 2,921 | $ | 2,521 | |||||
Increases to reserves | 5,242 | 443 | 1,329 | ||||||||
Amounts written off | (4,836 | ) | (1,538 | ) | (928 | ) | |||||
Effects of foreign currency translation | — | 1 | (1 | ) | |||||||
| | | | | | | | | | | |
Balance at end of period | $ | 2,233 | $ | 1,827 | $ | 2,921 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets, and Other Assets (Tables) | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Prepaid Expenses and Other Current Assets, and Other Assets | ||||||||
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following (in thousands): | |||||||
January 3, | December 28, | |||||||
2015 | 2013 | |||||||
Term loans to employees | $ | 1,564 | $ | 1,764 | ||||
Other | 11,601 | 10,011 | ||||||
| | | | | | | | |
Total | $ | 13,165 | $ | 11,775 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of other assets | Other assets consist of the following (in thousands): | |||||||
January 3, | December 28, | |||||||
2015 | 2013 | |||||||
Forgivable loans to employees and non-employee experts | $ | 42,907 | $ | 51,083 | ||||
Other | 5,008 | 3,538 | ||||||
| | | | | | | | |
Total | $ | 47,915 | $ | 54,621 | ||||
| | | | | | | | |
| | | | | | | | |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Goodwill and Intangible Assets | |||||||||||
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for fiscal 2014 and fiscal 2013 are as follows (in thousands): | ||||||||||
Goodwill, | Accumulated | Goodwill, | |||||||||
gross | impairment | net | |||||||||
losses | |||||||||||
Balance at December 28, 2013 | $ | 153,466 | $ | (71,893 | ) | $ | 81,573 | ||||
Goodwill adjustments related to acquisitions | 1,797 | — | 1,797 | ||||||||
Effect of foreign currency translation | (1,067 | ) | — | (1,067 | ) | ||||||
| | | | | | | | | | | |
Balance at January 3, 2015 | $ | 154,196 | $ | (71,893 | ) | $ | 82,303 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Goodwill, | Accumulated | Goodwill, | |||||||||
gross | impairment | net | |||||||||
losses | |||||||||||
Balance at December 29, 2012 | $ | 142,658 | $ | (71,893 | ) | $ | 70,765 | ||||
Goodwill adjustments related to acquisitions | 10,563 | — | 10,563 | ||||||||
Goodwill adjustments related to NeuCo | (63 | ) | — | (63 | ) | ||||||
Effect of foreign currency translation | 308 | — | 308 | ||||||||
| | | | | | | | | | | |
Balance at December 28, 2013 | $ | 153,466 | $ | (71,893 | ) | $ | 81,573 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of acquired identifiable intangible assets | The components of acquired identifiable intangible assets are as follows (in thousands): | ||||||||||
January 3, | December 28, | ||||||||||
2015 | 2013 | ||||||||||
Non-competition agreements, net of accumulated amortization of $4,046 and $3,802, respectively | $ | 236 | $ | 598 | |||||||
Customer relationships, net of accumulated amortization of $3,746 and $3,550, respectively | 4,521 | 3,909 | |||||||||
Other intangible assets, net of accumulated amortization of $1,792 and $1,040, respectively | — | 30 | |||||||||
| | | | | | | | ||||
$ | 4,757 | $ | 4,537 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of expected amortization of intangible assets | Amortization of intangible assets held at January 3, 2015 for the next five fiscal years is expected to be as follows (in thousands): | ||||||||||
Fiscal Year | Amortization | ||||||||||
Expense | |||||||||||
2015 | $ | 1,063 | |||||||||
2016 | 899 | ||||||||||
2017 | 857 | ||||||||||
2018 | 831 | ||||||||||
2019 | 563 | ||||||||||
| | | | | |||||||
$ | 4,213 | ||||||||||
| | | | | |||||||
| | | | | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Property and Equipment | ||||||||
Schedule of property and equipment | Property and equipment consist of the following (in thousands): | |||||||
January 3, | December 28, | |||||||
2015 | 2013 | |||||||
Computer, office equipment and software | $ | 24,197 | $ | 25,034 | ||||
Leasehold improvements | 21,613 | 21,388 | ||||||
Furniture | 7,730 | 7,788 | ||||||
| | | | | | | | |
53,540 | 54,210 | |||||||
Accumulated depreciation and amortization | (38,844 | ) | (38,555 | ) | ||||
| | | | | | | | |
$ | 14,696 | $ | 15,655 | |||||
| | | | | | | | |
| | | | | | | | |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
Accrued Expenses. | ||||||||
Schedule of accrued expenses | Accrued expenses consist of the following (in thousands): | |||||||
January 3, | December 28, | |||||||
2015 | 2013 | |||||||
Compensation and related expenses | $ | 61,527 | $ | 51,960 | ||||
Income taxes payable | 490 | 3,503 | ||||||
Other | 4,531 | 10,194 | ||||||
| | | | | | | | |
$ | 66,548 | $ | 65,657 | |||||
| | | | | | | | |
| | | | | | | | |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
Leases | |||||
Schedule of minimum rental commitments for office space and equipment leases | At January 3, 2015, CRA had the following minimum rental commitments for office space and equipment leases, all of which are under non-cancelable operating leases (in thousands): | ||||
Fiscal Year | Rental | ||||
Commitments | |||||
2015 | $ | 9,683 | |||
2016 | 7,160 | ||||
2017 | 5,991 | ||||
2018 | 5,020 | ||||
2019 | 4,172 | ||||
Thereafter | 27,329 | ||||
| | | | | |
$ | 59,355 | ||||
Future minimum rentals under sublease arrangements | (457 | ) | |||
| | | | | |
$ | 58,898 | ||||
| | | | | |
| | | | | |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Net Income (Loss) Per Share | |||||||||||
Schedule of reconciliation of basic to diluted weighted average shares of common stock outstanding | A reconciliation of basic to diluted weighted average shares of common stock outstanding is as follows (in thousands): | ||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Basic weighted average shares outstanding | 9,747 | 10,084 | 10,167 | ||||||||
Common stock equivalents: | |||||||||||
Stock options and restricted stock | 150 | 89 | — | ||||||||
| | | | | | | | | | | |
Diluted weighted average shares outstanding | 9,897 | 10,173 | 10,167 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Schedule of rollforward of the maximum number of shares issuable under the 2006 Incentive Plan | The following is a rollforward of the maximum number of shares issuable under the 2006 Incentive Plan as of January 3, 2015: | ||||||||||||||||
Actual | Shares Using | ||||||||||||||||
Shares | Fungibility Ratio | ||||||||||||||||
Maximum shares of common stock issuable under the 2006 Incentive Plan | 4,874,000 | ||||||||||||||||
Restricted shares or units granted/reserved through March 12, 2008 | 471,827 | (849,289 | ) | ||||||||||||||
Restricted shares or units granted/reserved from March 12, 2008 to April 29, 2010 | 352,932 | (776,450 | ) | ||||||||||||||
Restricted shares or units granted/reserved on or after April 30, 2010 | 1,481,999 | (2,710,594 | ) | ||||||||||||||
Cancellation of restricted shares or units through March 12, 2008 | 91,277 | 164,299 | |||||||||||||||
Cancellation of restricted shares or units from March 12, 2008 to April 29, 2010 | 91,964 | 202,321 | |||||||||||||||
Cancellation of restricted shares or units on or after April 30, 2010 | 470,424 | 860,877 | |||||||||||||||
Options granted | (1,094,726 | ) | |||||||||||||||
Options cancelled | 193,183 | ||||||||||||||||
Options forfeited | 27,731 | ||||||||||||||||
| | | | | | | | ||||||||||
Shares available for grant under the 2006 Incentive Plan | 891,352 | ||||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Summary of option activity | |||||||||||||||||
Options | Weighted | Weighted Average | Aggregate | ||||||||||||||
Average | Remaining | Intrinsic | |||||||||||||||
Exercise | Contractual | Value | |||||||||||||||
Price | Term | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding at December 28, 2013 | 1,292,349 | $ | 30.43 | ||||||||||||||
Fiscal 2014: | |||||||||||||||||
Granted | 178,608 | 30.97 | |||||||||||||||
Exercised | (20,931 | ) | 22.4 | ||||||||||||||
Forfeited | (295,081 | ) | 33.26 | ||||||||||||||
| | | | | | | | | | | | | | ||||
Outstanding at January 3, 2015 | 1,154,945 | 29.93 | 3.73 | $ | 6,403 | ||||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Options exercisable at January 3, 2015 | 737,760 | $ | 33.14 | 2.39 | $ | 3,746 | |||||||||||
| | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | ||||
Schedule of weighted average assumptions used to estimate the fair market value of the stock options at the date of grant | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate | 1.6 | % | 1.4 | % | |||||||||||||
Expected volatility | 43 | % | 47 | % | |||||||||||||
Weighted average expected life (in years) | 5.00 | 5.00 | |||||||||||||||
Expected dividends | — | — | |||||||||||||||
Summary of options outstanding and options exercisable | The following table summarizes stock options outstanding and stock options exercisable as of January 3, 2015: | ||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Prices | Number | Weighted-Average | Weighted-Average | Number | Weighted-Average | ||||||||||||
Outstanding at | Remaining | Exercise | Exercisable | Exercise | |||||||||||||
January 3, | Contractual | Price | at January 3, | Price | |||||||||||||
2015 | Life (years) | 2015 | |||||||||||||||
$18.48 | 254,355 | 5.88 | $ | 18.48 | 63,578 | $ | 18.48 | ||||||||||
$18.49 - 22.81 | 328,253 | 3.39 | 21.68 | 284,453 | 21.64 | ||||||||||||
$22.82 - 29.07 | 86,665 | 2.00 | 24.22 | 82,665 | 24.18 | ||||||||||||
$29.08 - 32.26 | 178,608 | 6.93 | 30.97 | — | — | ||||||||||||
$32.27 - 48.85 | 42,500 | 0.79 | 42.58 | 42,500 | 42.58 | ||||||||||||
$48.86 - 50.00 | 150,000 | 1.50 | 50.00 | 150,000 | 50.00 | ||||||||||||
$50.01 - 53.72 | 114,564 | 0.25 | 50.73 | 114,564 | 50.73 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total | 1,154,945 | 3.73 | $ | 29.93 | 737,760 | $ | 33.14 | ||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Summary of non-vested stock options | The following table summarizes the status of CRA's non-vested stock options since December 28, 2013: | ||||||||||||||||
Non-vested Options | |||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||
Shares | Fair Value | ||||||||||||||||
Non-vested at December 28, 2013 | 401,678 | $ | 8.16 | ||||||||||||||
Granted | 178,608 | 12.24 | |||||||||||||||
Vested | (153,126 | ) | 9.03 | ||||||||||||||
Forfeited | (9,975 | ) | 8.3 | ||||||||||||||
| | | | | | | | ||||||||||
Non-vested at January 3, 2015 | 417,185 | $ | 9.98 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Summary of non-vested restricted stock and time-vesting restricted stock unit awards | The following table summarizes the status of CRA's non-vested restricted stock and time-vesting restricted stock unit awards since December 28, 2013: | ||||||||||||||||
Non-vested | |||||||||||||||||
Restricted Stock and Stock | |||||||||||||||||
Units | |||||||||||||||||
Number of | Weighted-Average | ||||||||||||||||
Shares | Fair Value | ||||||||||||||||
Non-vested at December 28, 2013 | 309,038 | $ | 20.39 | ||||||||||||||
Granted | 135,593 | 28.51 | |||||||||||||||
Vested | (149,195 | ) | 21.75 | ||||||||||||||
Forfeited | (9,294 | ) | 20.95 | ||||||||||||||
| | | | | | | | ||||||||||
Non-vested at January 3, 2015 | 286,142 | $ | 23.72 | ||||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
Business_Segment_and_Geographi1
Business Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Business Segment and Geographic Information | |||||||||||
Schedule of revenue and long-lived assets by country, based on the physical location of the operation to which the revenues or the assets relate | Revenue and long-lived assets by country, based on the physical location of the operation to which the revenues or the assets relate, are as follows (in thousands): | ||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Revenue: | |||||||||||
United States | $ | 238,466 | $ | 216,815 | $ | 207,779 | |||||
United Kingdom | 49,127 | 46,987 | 51,059 | ||||||||
Other | 18,778 | 14,630 | 11,552 | ||||||||
| | | | | | | | | | | |
Total foreign | 67,905 | 61,617 | 62,611 | ||||||||
| | | | | | | | | | | |
$ | 306,371 | $ | 278,432 | $ | 270,390 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
January 3, | December 28, | ||||||||||
2015 | 2013 | ||||||||||
Long-lived assets (property and equipment, net): | |||||||||||
United States | $ | 12,753 | $ | 13,657 | |||||||
United Kingdom | 1,595 | 1,911 | |||||||||
Other | 348 | 87 | |||||||||
| | | | | | | | ||||
Total foreign | 1,943 | 1,998 | |||||||||
| | | | | | | | ||||
$ | 14,696 | $ | 15,655 | ||||||||
| | | | | | | | ||||
| | | | | | | | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Income Taxes | |||||||||||
Schedule of components of income (loss) before (provision) benefit for income taxes | The components of income (loss) before (provision) benefit for income taxes are as follows (in thousands): | ||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Income (loss) before (provision) benefit for income taxes: | |||||||||||
U.S. | $ | 20,899 | $ | 13,659 | $ | (27,290 | ) | ||||
Foreign | 2,416 | 4,259 | (30,733 | ) | |||||||
| | | | | | | | | | | |
Total | $ | 23,315 | $ | 17,918 | $ | (58,023 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of provision (benefit) for income taxes | The provision (benefit) for income taxes consists of the following (in thousands): | ||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
(53 weeks) | (52 weeks) | (52 weeks) | |||||||||
Currently payable: | |||||||||||
Federal | $ | 8,585 | $ | 1,241 | $ | 3,637 | |||||
Foreign | 876 | 1,264 | 50 | ||||||||
State | 1,878 | 254 | 1,015 | ||||||||
| | | | | | | | | | | |
11,339 | 2,759 | 4,702 | |||||||||
Deferred: | |||||||||||
Federal | (1,068 | ) | 3,592 | (8,163 | ) | ||||||
Foreign | (505 | ) | (238 | ) | 21 | ||||||
State | 142 | 570 | (1,740 | ) | |||||||
| | | | | | | | | | | |
$ | (1,431 | ) | $ | 3,924 | $ | (9,882 | ) | ||||
| | | | | | | | | | | |
$ | 9,908 | $ | 6,683 | $ | (5,180 | ) | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation of tax rates with the federal statutory rate | |||||||||||
Fiscal Year | Fiscal Year | Fiscal Year | |||||||||
2014 | 2013 | 2012 | |||||||||
Federal statutory rate | 35 | % | 35 | % | (35.0 | )% | |||||
State income taxes, net of federal income tax benefit | 3.6 | 4.4 | (1.3 | ) | |||||||
Goodwill impairment | — | — | 20.6 | ||||||||
Foreign losses benefited | (1.8 | ) | (2.8 | ) | (0.1 | ) | |||||
Losses not benefited | 0.6 | 0.3 | 4.2 | ||||||||
Foreign rate differential | 0.6 | (0.4 | ) | 2.1 | |||||||
Foreign tax credit | — | (0.1 | ) | (0.5 | ) | ||||||
Uncertain tax positions | 0.7 | (2.1 | ) | — | |||||||
Impact of NeuCo's tax provision charges | 0.9 | 1.5 | 0.1 | ||||||||
Permanently disallowed expenses | 2.1 | 1.6 | 1 | ||||||||
Prior period adjustments | 3 | — | — | ||||||||
Release of valuation allowance | (2.2 | ) | — | — | |||||||
Other | — | (0.1 | ) | — | |||||||
| | | | | | | | | | | |
42.5 | % | 37.3 | % | (8.9 | )% | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of deferred tax assets (liabilities) | The components of CRA's deferred tax assets (liabilities) are as follows (in thousands): | ||||||||||
January 3, | December 28, | ||||||||||
2015 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Accrued compensation and related expense | $ | 23,876 | $ | 21,064 | |||||||
Tax basis in excess of financial basis of net accounts receivable | 2,065 | 2,363 | |||||||||
Net operating loss carryforwards | 5,201 | 5,421 | |||||||||
Tax basis in excess of financial basis of fixed assets | 19 | 1,489 | |||||||||
Accrued expenses and other | 967 | 902 | |||||||||
| | | | | | | | ||||
Total gross deferred tax assets | 32,128 | 31,239 | |||||||||
Less: valuation allowance | (4,912 | ) | (6,101 | ) | |||||||
| | | | | | | | ||||
Total deferred tax assets net of valuation allowance | 27,216 | 25,138 | |||||||||
Deferred tax liabilities: | |||||||||||
Excess tax over book amortization | 5,708 | 2,938 | |||||||||
Tax basis in excess of financial basis of debentures | 3,844 | 5,024 | |||||||||
| | | | | | | | ||||
Total deferred tax liabilities | 9,552 | 7,962 | |||||||||
| | | | | | | | ||||
Net deferred tax assets | $ | 17,664 | $ | 17,176 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of aggregate changes in the balances of gross unrecognized tax benefits | The aggregate changes in the balances of gross unrecognized tax benefits were as follows (in thousands): | ||||||||||
January 3, | December 28, | ||||||||||
2015 | 2013 | ||||||||||
Balance at beginning of period | $ | 372 | $ | 3,032 | |||||||
Additions for tax positions taken during prior years | 127 | 372 | |||||||||
Additions for tax positions taken during the current year | 45 | — | |||||||||
Settlements with tax authorities | (9 | ) | (3,032 | ) | |||||||
| | | | | | | | ||||
Balance at end of the period | $ | 535 | $ | 372 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||||||||
Jan. 03, 2015 | |||||||||||
Restructuring Charges | |||||||||||
Schedule of restructuring reserve balance | The restructuring expenses and reserve balance are as follows as of January 3, 2015 and December 28, 2013 (in thousands): | ||||||||||
Office | Employee | Total | |||||||||
Vacancies | Workforce | Restructuring | |||||||||
Reduction | |||||||||||
Balance at December 29, 2012 | $ | 2,106 | $ | 873 | $ | 2,979 | |||||
Amounts paid, net of amounts received, during fiscal 2013 | (759 | ) | (729 | ) | (1,488 | ) | |||||
Non-cash adjustments and effect of foreign currency translation during fiscal 2013 | (177 | ) | (144 | ) | (321 | ) | |||||
| | | | | | | | | | | |
Balance at December 28, 2013 | $ | 1,170 | $ | — | $ | 1,170 | |||||
Amounts paid, net of amounts received, during fiscal 2014 | (750 | ) | — | (750 | ) | ||||||
Non-cash adjustments and effect of foreign currency translation during fiscal 2014 | 42 | — | 42 | ||||||||
| | | | | | | | | | | |
Balance at January 3, 2015 | $ | 462 | $ | — | $ | 462 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Jan. 03, 2015 | ||||||||||||||
Unaudited Interim Condensed Consolidated Financial Statements and Estimates | ||||||||||||||
Schedule of quarterly financial data (unaudited) | ||||||||||||||
Quarter Ended | ||||||||||||||
March 29, | June 28, | September 27, | January 3, | |||||||||||
2014 | 2014 | 2014 | 2015 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenues | $ | 76,245 | $ | 78,184 | $ | 73,483 | $ | 78,459 | ||||||
Gross profit | 24,379 | 25,515 | 24,066 | 25,598 | ||||||||||
Income from operations | 5,629 | 6,493 | 5,795 | 6,124 | ||||||||||
Income before provision for income taxes | 5,384 | 6,334 | 5,575 | 6,022 | ||||||||||
Net income | 3,308 | 3,167 | 3,189 | 3,743 | ||||||||||
Net loss attributable to noncontrolling interest, net of tax | 102 | 21 | 35 | 73 | ||||||||||
Net income attributable to CRA International, Inc. | $ | 3,410 | $ | 3,188 | $ | 3,224 | 3,816 | |||||||
Basic net income per share | $ | 0.34 | $ | 0.32 | $ | 0.33 | $ | 0.41 | ||||||
Diluted net income per share | $ | 0.34 | $ | 0.32 | $ | 0.33 | $ | 0.40 | ||||||
Weighted average number of shares outstanding: | ||||||||||||||
Basic | 10,029 | 9,919 | 9,729 | 9,344 | ||||||||||
Diluted | 10,108 | 10,026 | 9,919 | 9,560 | ||||||||||
Quarter Ended | ||||||||||||||
March 30, | June 29, | September 28, | December 28, | |||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenues | $ | 63,130 | $ | 65,203 | $ | 74,427 | $ | 75,672 | ||||||
Gross profit | 21,115 | 20,161 | 23,850 | 24,044 | ||||||||||
Income (loss) from operations | 3,774 | 3,170 | 6,114 | 5,459 | ||||||||||
Income (loss) before (provision) benefit for income taxes | 3,377 | 3,368 | 5,952 | 5,221 | ||||||||||
Net income (loss) | 2,835 | 1,351 | 3,333 | 3,716 | ||||||||||
Net (income) loss attributable to noncontrolling interest, net of tax | 134 | 58 | (63 | ) | 6 | |||||||||
Net income (loss) attributable to CRA International, Inc. | 2,969 | 1,409 | 3,270 | 3,722 | ||||||||||
Basic net income (loss) per share | $ | 0.3 | $ | 0.14 | $ | 0.32 | $ | 0.37 | ||||||
Diluted net income (loss) per share | $ | 0.29 | $ | 0.14 | $ | 0.32 | $ | 0.37 | ||||||
Weighted average number of shares outstanding: | ||||||||||||||
Basic | 9,994 | 10,100 | 10,093 | 10,071 | ||||||||||
Diluted | 10,084 | 10,188 | 10,192 | 10,148 | ||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
item | item | item | |||||||||
segment | |||||||||||
Description of Business | |||||||||||
Number of broad areas of services | 2 | ||||||||||
Number of business segments | 1 | ||||||||||
Fiscal Year Change | |||||||||||
Number of weeks periodically contained in a fiscal year | 53 | ||||||||||
Number of weeks in a fiscal year | 52 | 52 | 52 | ||||||||
NeuCo Interest | |||||||||||
Net revenue | $78,459 | $73,483 | $78,184 | $76,245 | $75,672 | $74,427 | $65,203 | $63,130 | $306,371 | $278,432 | $270,390 |
Net income | 3,743 | 3,189 | 3,167 | 3,308 | 3,716 | 3,333 | 1,351 | 2,835 | 13,407 | 11,235 | -52,843 |
Net income attributable to CRA International, Inc. | 3,816 | 3,224 | 3,188 | 3,410 | 3,722 | 3,270 | 1,409 | 2,969 | 13,638 | 11,370 | -52,990 |
Repayments of Notes Payable | 26 | 700 | 650 | ||||||||
NeuCo, Inc. | |||||||||||
NeuCo Interest | |||||||||||
Percentage of ownership interest held by the entity | 55.89% | ||||||||||
Net revenue | 4,800 | 5,100 | 5,500 | ||||||||
Net income | -500 | -300 | 300 | ||||||||
Net income attributable to CRA International, Inc. | ($200) | ($200) | $200 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Revenue recognition | |||
Reimbursable expenses | $36,676 | $37,320 | $33,530 |
Revenues | Fixed-price engagements | |||
Revenue recognition | |||
Percentage of consolidated revenues | 15.00% | 13.00% | 15.00% |
Minimum | |||
Revenue recognition | |||
Period in which engagements are generally completed | 3 months | ||
Maximum | |||
Revenue recognition | |||
Period in which engagements are generally completed | 6 months |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Level 3 | ||
Fair Value of Financial Instruments | ||
Contingent acquisition liability | $316 | |
Level 3 | Commercial Paper | ||
Fair Value of Financial Instruments | ||
Total Liabilities | 316 | |
Recurring | Level 1 | ||
Fair Value of Financial Instruments | ||
Total Assets | 20,042 | 21,034 |
Recurring | Level 1 | Money Market Funds | ||
Fair Value of Financial Instruments | ||
Cash and cash equivalents | 20,042 | 21,034 |
Recurring | Level 2 | ||
Fair Value of Financial Instruments | ||
Total Assets | 9,000 | |
Recurring | Level 2 | Commercial Paper | ||
Fair Value of Financial Instruments | ||
Cash and cash equivalents | $9,000 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
segment | |||
Goodwill | |||
Number of reporting units | 1 | ||
Goodwill impairment | $0 | $0 | $71,394 |
Minimum | |||
Intangible assets | |||
Remaining useful lives | 4 years | ||
Maximum | |||
Intangible assets | |||
Remaining useful lives | 10 years |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 5) | 12 Months Ended |
Jan. 03, 2015 | |
Computer equipment | |
Property and equipment | |
Estimated useful lives | 3 years |
Computer software | Minimum | |
Property and equipment | |
Estimated useful lives | 3 years |
Computer software | Maximum | |
Property and equipment | |
Estimated useful lives | 10 years |
Furniture | |
Property and equipment | |
Estimated useful lives | 10 years |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Details 6) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Roll forward of the accounts receivable allowance | |||
Balance at beginning of period | $7,210,000 | ||
Balance at end of period | 4,177,000 | 7,210,000 | |
Foreign Currency Translation | |||
Transaction gains and losses recorded in income (loss) before (provision) benefit for income taxes | 300,000 | 200,000 | 200,000 |
Billed Revenues | |||
Roll forward of the accounts receivable allowance | |||
Balance at beginning of period | 7,210,000 | 9,459,000 | 6,548,000 |
Increases to reserve | 948,000 | 5,619,000 | 6,854,000 |
Amounts written off | -3,993,000 | -7,891,000 | -3,897,000 |
Effects of foreign currency translation | 30,000 | 25,000 | -46,000 |
Balance at end of period | 4,177,000 | 7,210,000 | 9,459,000 |
Unbilled Revenues | |||
Roll forward of the accounts receivable allowance | |||
Balance at beginning of period | 1,827,000 | 2,921,000 | 2,521,000 |
Increases to reserve | 5,242,000 | 443,000 | 1,329,000 |
Amounts written off | -4,836,000 | -1,538,000 | -928,000 |
Effects of foreign currency translation | 1,000 | -1,000 | |
Balance at end of period | 2,233,000 | 1,827,000 | 2,921,000 |
NeuCo, Inc. | Billed Revenues | |||
Roll forward of the accounts receivable allowance | |||
Change related to NeuCo | ($18,000) | ($2,000) |
Business_Acquisition_Details
Business Acquisition (Details) | Jan. 31, 2013 |
person | |
Business Acquisition | |
Number of litigation consulting team members who joined the entity | 40 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets, and Other Assets (Details) (USD $) | 12 Months Ended | |
Jan. 03, 2015 | Dec. 28, 2013 | |
Prepaid expenses and other current assets | ||
Term loans to employees | $1,564,000 | $1,764,000 |
Other | 11,601,000 | 10,011,000 |
Total | 13,165,000 | 11,775,000 |
Other assets | ||
Forgivable loans to employees and non-employee experts | 42,907,000 | 51,083,000 |
Other | 5,008,000 | 3,538,000 |
Total | 47,915,000 | 54,621,000 |
Prepaid expenses and other assets disclosures | ||
Term of forgivable loans or advances to employees and non-employee experts, minimum | 3 years | |
Term of forgivable loans or advances to employees and non-employee experts, maximum | 8 years | |
Forgivable loans issued to future employees for future service | $10,900,000 | $38,800,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Goodwill and Intangible Assets | |||
Goodwill impairment | $0 | $0 | $71,394 |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period, gross | 153,466 | 142,658 | |
Goodwill adjustments related to acquisitions | 1,797 | 10,563 | |
Goodwill adjustments related to NeuCo | -63 | ||
Effect of foreign currency translation | -1,067 | 308 | |
Balance at the end of the period, gross | 154,196 | 153,466 | 142,658 |
Balance at the beginning of the period, Accumulated impairment losses | -71,893 | -71,893 | |
Goodwill impairment | 0 | 0 | -71,394 |
Balance at the end of the period, Accumulated impairment losses | -71,893 | -71,893 | -71,893 |
Balance at the beginning of the period, net | 81,573 | 70,765 | |
Balance at the end of the period, net | 82,303 | 81,573 | 70,765 |
Intangible assets impairment losses | $0 | $0 | $0 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Acquired identifiable intangible assets | |||
Acquired identifiable intangible assets, net of accumulated amortization | $4,757,000 | $4,537,000 | |
Accumulated amortization | 9,584,000 | 8,392,000 | |
Amortization of intangible assets | 1,400,000 | 1,200,000 | 800,000 |
Amortization Expense | |||
2015 | 1,063,000 | ||
2016 | 899,000 | ||
2017 | 857,000 | ||
2018 | 831,000 | ||
2019 | 563,000 | ||
Total | 4,213,000 | ||
Non-competition agreements | |||
Acquired identifiable intangible assets | |||
Acquired identifiable intangible assets, net of accumulated amortization | 236,000 | 598,000 | |
Accumulated amortization | 4,046,000 | 3,802,000 | |
Customer relationships | |||
Acquired identifiable intangible assets | |||
Acquired identifiable intangible assets, net of accumulated amortization | 4,521,000 | 3,909,000 | |
Accumulated amortization | 3,746,000 | 3,550,000 | |
Other intangible assets | |||
Acquired identifiable intangible assets | |||
Acquired identifiable intangible assets, net of accumulated amortization | 30,000 | ||
Accumulated amortization | $1,792,000 | $1,040,000 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Property and equipment | |||
Property and equipment, gross | $53,540,000 | $54,210,000 | |
Accumulated depreciation and amortization | -38,844,000 | -38,555,000 | |
Property and equipment, net | 14,696,000 | 15,655,000 | |
Depreciation expense, including amounts recorded in costs of services | 5,000,000 | 5,200,000 | 5,000,000 |
Computer, office equipment and software | |||
Property and equipment | |||
Property and equipment, gross | 24,197,000 | 25,034,000 | |
Leasehold improvements | |||
Property and equipment | |||
Property and equipment, gross | 21,613,000 | 21,388,000 | |
Furniture | |||
Property and equipment | |||
Property and equipment, gross | $7,730,000 | $7,788,000 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
Accrued Expenses. | ||
Compensation and related expenses | $61,527,000 | $51,960,000 |
Income taxes payable | 490,000 | 3,503,000 |
Other | 4,531,000 | 10,194,000 |
Total | 66,548,000 | 65,657,000 |
Accrued bonuses | $49,200,000 | $40,000,000 |
Credit_Agreement_Details
Credit Agreement (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 03, 2015 |
Senior Loan Agreement | |
Amounts outstanding under letters of credit | $1.30 |
Revolving credit facility | |
Senior Loan Agreement | |
Revolving credit facility, maximum capacity | 125 |
Amount outstanding under revolving line of credit | 0 |
Amounts outstanding under letters of credit | 1.3 |
Percentage of stock of domestic subsidiaries pledged as collateral for borrowings | 100.00% |
Percentage of stock of foreign subsidiaries pledged as collateral for borrowings | 65.00% |
Value of stock in net assets pledged as collateral for borrowings | 6.4 |
Ratio of consolidated interest expense to consolidated EBITDA | 2.5 |
Ratio of consolidated debt to consolidated EBITDA | 3 |
Revolving credit facility | Minimum | |
Senior Loan Agreement | |
Commitment fee payable on the unused portion of the credit facility (as a percent) | 0.25% |
Revolving credit facility | Maximum | |
Senior Loan Agreement | |
Commitment fee payable on the unused portion of the credit facility (as a percent) | 0.38% |
Revolving credit facility | Base rate | |
Senior Loan Agreement | |
Variable rate basis | base rate |
Revolving credit facility | Base rate | Minimum | |
Senior Loan Agreement | |
Interest margin (as a percent) | 0.50% |
Revolving credit facility | Base rate | Maximum | |
Senior Loan Agreement | |
Interest margin (as a percent) | 1.50% |
Revolving credit facility | Eurocurrency rate | |
Senior Loan Agreement | |
Variable rate basis | eurocurrency rate |
Revolving credit facility | Eurocurrency rate | Minimum | |
Senior Loan Agreement | |
Interest margin (as a percent) | 1.50% |
Revolving credit facility | Eurocurrency rate | Maximum | |
Senior Loan Agreement | |
Interest margin (as a percent) | 2.50% |
Letters of credit | |
Senior Loan Agreement | |
Revolving credit facility, maximum capacity | $15 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Employee Benefit Plans | |||
Employer contributions under 401(k) plans | $1.60 | $1.70 | $1.80 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Rental Commitments | |||
2015 | $9,683,000 | ||
2016 | 7,160,000 | ||
2017 | 5,991,000 | ||
2018 | 5,020,000 | ||
2019 | 4,172,000 | ||
Thereafter | 27,329,000 | ||
Rental commitments, gross | 59,355,000 | ||
Future minimum rentals under sublease arrangements | -457,000 | ||
Rental commitments | 58,898,000 | ||
Additional disclosures | |||
Rent expense | 10,000,000 | 9,600,000 | 12,400,000 |
Restructuring expenses | 6,700,000 | ||
Standby letters of credit in support of the minimum future lease payments | 1,300,000 | ||
Rent expense | |||
Additional disclosures | |||
Restructuring expenses | $0 | $0 | $900,000 |
Net_Income_Loss_Per_Share_Deta
Net Income (Loss) Per Share (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Reconciliation of basic to diluted weighted average shares of common stock outstanding | |||||||||||
Basic weighted average shares outstanding | 9,344,000 | 9,729,000 | 9,919,000 | 10,029,000 | 10,071,000 | 10,093,000 | 10,100,000 | 9,994,000 | 9,747,000 | 10,084,000 | 10,167,000 |
Common stock equivalents: | |||||||||||
Stock options and restricted shares (in shares) | 150,000 | 89,000 | |||||||||
Diluted weighted average shares outstanding | 9,560,000 | 9,919,000 | 10,026,000 | 10,108,000 | 10,148,000 | 10,192,000 | 10,188,000 | 10,084,000 | 9,897,000 | 10,173,000 | 10,167,000 |
Calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding | |||||||||||
Anti-dilutive securities excluded from EPS computation (in shares) | 764,748 | 1,138,411 | 1,947,992 | ||||||||
Additional anti-dilutive shares | 140,000 |
Common_Stock_Details
Common Stock (Details) (USD $) | 12 Months Ended | |||||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Oct. 23, 2014 | Feb. 13, 2014 | Aug. 10, 2012 | |
Share-Based Compensation | ||||||
Share-based compensation expense | $5,300,000 | $2,900,000 | $4,900,000 | |||
Non-employee compensation expense | 271,000 | 147,000 | 79,000 | |||
Employee tax withholdings paid on redemption of vested restricted shares | 1,222,000 | 730,000 | 1,360,000 | |||
Common Stock Repurchases and Retirements | ||||||
Share repurchase program, amount authorized to be repurchased | 30,000,000 | 15,000,000 | 5,000,000 | |||
Number of shares repurchased and retired | 971,515 | 118,968 | 466,109 | |||
Aggregate price of shares repurchased and retired | 25,492,000 | 2,190,000 | 9,062,000 | |||
Amount available for future repurchases | 20,900,000 | |||||
Restricted shares | ||||||
Share-Based Compensation | ||||||
Vested (in shares) | 149,195 | 134,384 | 216,528 | |||
Redemption of vested restricted shares in order to pay employee tax withholdings (in shares) | 41,470 | 37,642 | 69,207 | |||
Employee tax withholdings paid on redemption of vested restricted shares | 1,200,000 | 700,000 | 1,400,000 | |||
Employees and directors | ||||||
Share-Based Compensation | ||||||
Share-based compensation expense | $5,300,000 | $2,900,000 | $4,900,000 |
Common_Stock_Detail_2
Common Stock (Detail 2) (USD $) | 12 Months Ended | |||||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Oct. 23, 2014 | Feb. 13, 2014 | Aug. 10, 2012 | |
Share Repurchase Program | ||||||
Share repurchase program, amount authorized to be repurchased | $30,000,000 | $15,000,000 | $5,000,000 | |||
Options exercised (in shares) | ||||||
Exercise of stock options (in shares) | 20,931 | 13,389 | 47,185 | |||
Proceeds from exercise of options | 500,000 | 200,000 | 600,000 | |||
Tax Deficit on Stock Option Exercises and Restricted Share Vesting | ||||||
Tax deficits on stock options exercises and restricted share vestings | ($128,000) | $254,000 | $576,000 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Share-Based Compensation | |||
Compensation expense | $5,300,000 | $2,900,000 | $4,900,000 |
Weighted average fair market value (in dollars per share) | $12.24 | ||
Options granted (in shares) | 178,608 | ||
Non Employee Stock Options | |||
Share-Based Compensation | |||
Non-employee compensation expense | $271,000 | $147,000 | $79,000 |
Options | |||
Share-Based Compensation | |||
Weighted average fair market value (in dollars per share) | $12.24 | $7.77 | |
Weighted average assumptions | |||
Risk-free interest rate (as a percent) | 1.60% | 1.40% | |
Expected volatility (as a percent) | 43.00% | 47.00% | |
Weighted average expected life (in years) | 5 years | 5 years |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 2) | 12 Months Ended | 26 Months Ended | 56 Months Ended | 108 Months Ended | 12 Months Ended | |
Jan. 03, 2015 | Apr. 29, 2010 | Mar. 12, 2008 | Jan. 03, 2015 | Jan. 03, 2015 | Dec. 29, 2012 | |
Shares Using Fungibility Ratio | ||||||
Options granted (in shares) | -178,608 | |||||
Options forfeited (in shares) | 295,081 | |||||
2006 Incentive Plan | ||||||
Shares Using Fungibility Ratio | ||||||
Maximum shares of common stock issuable | 4,874,000 | 4,874,000 | 4,874,000 | |||
Shares initially reserved for issuance | 500,000 | 500,000 | 500,000 | |||
Shares available for grant | 891,352 | 891,352 | 891,352 | |||
2006 Incentive Plan | On or after April 30, 2010 | ||||||
Share-based compensation | ||||||
Fungibility ratio (as a percent) | 1.83% | |||||
2006 Incentive Plan | On or after March 12, 2008 and before April 30, 2010 | ||||||
Share-based compensation | ||||||
Fungibility ratio (as a percent) | 2.20% | |||||
2006 Incentive Plan | Before March 12, 2008 | ||||||
Share-based compensation | ||||||
Fungibility ratio (as a percent) | 1.80% | |||||
2006 Incentive Plan | Shares approved in 2008 | ||||||
Shares Using Fungibility Ratio | ||||||
Maximum shares of common stock issuable | 210,000 | 210,000 | 210,000 | |||
2006 Incentive Plan | Shares approved in 2010 | ||||||
Shares Using Fungibility Ratio | ||||||
Maximum shares of common stock issuable | 1,464,000 | 1,464,000 | 1,464,000 | |||
2006 Incentive Plan | Shares approved in 2012 | ||||||
Shares Using Fungibility Ratio | ||||||
Maximum shares of common stock issuable | 2,500,000 | 2,500,000 | 2,500,000 | |||
Shares available for grant | 1,700,000 | 1,700,000 | 1,700,000 | |||
2006 Incentive Plan | Restricted shares | ||||||
Actual Shares | ||||||
Restricted shares or units granted/reserved | 352,932 | 471,827 | 1,481,999 | |||
Cancellation of restricted shares or units | 91,964 | 91,277 | 470,424 | |||
Shares Using Fungibility Ratio | ||||||
Restricted shares or units granted/reserved increase (decrease), available for grant | -776,450 | -849,289 | -2,710,594 | |||
Cancellation of restricted shares or units increase (decrease), available for grant | 202,321 | 164,299 | 860,877 | |||
2006 Incentive Plan | Options | ||||||
Shares Using Fungibility Ratio | ||||||
Options granted (in shares) | -1,094,726 | |||||
Options cancelled (in shares) | 193,183 | |||||
Options forfeited (in shares) | 27,731 | |||||
1998 Plan | ||||||
Shares Using Fungibility Ratio | ||||||
Shares available for grant | 1,000,000 | 1,000,000 | 1,000,000 | |||
1998 Plan | Options | ||||||
Shares Using Fungibility Ratio | ||||||
Shares available for grant | 0 | 0 | 0 | |||
LTIP | Options | ||||||
Shares Using Fungibility Ratio | ||||||
Options granted (in shares) | 0 |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details 3) (USD $) | 12 Months Ended |
Jan. 03, 2015 | |
Share-based compensation | |
Exercise price (in dollars per share) | $30.97 |
1998 Plan | |
Share-based compensation | |
Shares available for grant | 1,000,000 |
1998 Plan | Options | |
Share-based compensation | |
Aggregate options granted (in shares) | 3,839,216 |
Shares available for grant | 0 |
1998 Plan | Options | Minimum | |
Share-based compensation | |
Termination period | 7 years |
1998 Plan | Options | Maximum | |
Share-based compensation | |
Vesting period | 5 years |
Termination period | 10 years |
2004 Nonqualified Inducement Stock Option Plan | Options | |
Share-based compensation | |
Aggregate options granted (in shares) | 359,420 |
Shares available for grant | 0 |
2009 Nonqualified Inducement Stock Option Plan | |
Share-based compensation | |
Shares authorized | 250,000 |
2009 Nonqualified Inducement Stock Option Plan | Options | |
Share-based compensation | |
Aggregate options granted (in shares) | 200,000 |
Vesting period | 4 years |
Termination period | 7 years |
Shares available for grant | 50,000 |
Exercise price (in dollars per share) | $50 |
ShareBased_Compensation_Detail3
Share-Based Compensation (Details 4) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Options | |||
Outstanding at the beginning of the period (in shares) | 1,292,349 | ||
Granted (in shares) | 178,608 | ||
Exercised (in shares) | -20,931 | -13,389 | -47,185 |
Forfeited (in shares) | -295,081 | ||
Outstanding at the end of the period (in shares) | 1,154,945 | 1,292,349 | |
Options exercisable at the end of the period (in shares) | 737,760 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $30.43 | ||
Granted (in dollars per share) | $30.97 | ||
Exercised (in dollars per share) | $22.40 | ||
Forfeited (in dollars per share) | $33.26 | ||
Outstanding at the end of the period (in dollars per share) | $29.93 | $30.43 | |
Options exercisable at the end of the period (in dollars per share) | $33.14 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at the end of the period | 3 years 8 months 23 days | ||
Options exercisable at the end of the period | 2 years 4 months 21 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period (in dollars) | $6,403,000 | ||
Options exercisable at the end of the period (in dollars) | 3,746,000 | ||
Aggregate intrinsic value of stock options exercised | $100,000 | $100,000 | $400,000 |
ShareBased_Compensation_Detail4
Share-Based Compensation (Details 5) (USD $) | 12 Months Ended | |
Jan. 03, 2015 | Dec. 28, 2013 | |
Options Outstanding | ||
Number Outstanding (in shares) | 1,154,945 | |
Weighted-Average Remaining Contractual Life | 3 years 8 months 23 days | |
Weighted-Average Exercise Price (in dollars per share) | $29.93 | |
Options Exercisable | ||
Number Exercisable (in shares) | 737,760 | |
Weighted-Average Exercise Price (in dollars per share) | $33.14 | |
Non-vested Options, Number of Shares | ||
Balance at the beginning of the period (in shares) | 401,678 | |
Granted (in shares) | 178,608 | |
Vested (in shares) | -153,126 | |
Forfeited (in shares) | -9,975 | |
Balance at the end of the period (in shares) | 417,185 | |
Non-vested Options, Weighted-Average Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $8.16 | |
Granted (in dollars per share) | $12.24 | |
Vested (in dollars per share) | $9.03 | |
Forfeited (in dollars per share) | $8.30 | |
Balance at the end of the period (in dollars per share) | $9.98 | |
$18.48 | ||
Options Outstanding | ||
Number Outstanding (in shares) | 254,355 | |
Weighted-Average Remaining Contractual Life | 5 years 10 months 17 days | |
Weighted-Average Exercise Price (in dollars per share) | $18.48 | $18.48 |
Options Exercisable | ||
Number Exercisable (in shares) | 63,578 | |
Weighted-Average Exercise Price (in dollars per share) | $18.48 | |
$18.49 - 22.81 | ||
Share-based compensation | ||
Exercise price, low end of range (in dollars per share) | $18.49 | |
Exercise price, high end of range (in dollars per share) | $22.81 | |
Options Outstanding | ||
Number Outstanding (in shares) | 328,253 | |
Weighted-Average Remaining Contractual Life | 3 years 4 months 21 days | |
Weighted-Average Exercise Price (in dollars per share) | $21.68 | |
Options Exercisable | ||
Number Exercisable (in shares) | 284,453 | |
Weighted-Average Exercise Price (in dollars per share) | $21.64 | |
$22.82 - 29.07 | ||
Share-based compensation | ||
Exercise price, low end of range (in dollars per share) | $22.82 | |
Exercise price, high end of range (in dollars per share) | $29.07 | |
Options Outstanding | ||
Number Outstanding (in shares) | 86,665 | |
Weighted-Average Remaining Contractual Life | 2 years | |
Weighted-Average Exercise Price (in dollars per share) | $24.22 | |
Options Exercisable | ||
Number Exercisable (in shares) | 82,665 | |
Weighted-Average Exercise Price (in dollars per share) | $24.18 | |
$29.08 - 32.26 | ||
Share-based compensation | ||
Exercise price, low end of range (in dollars per share) | $29.08 | |
Exercise price, high end of range (in dollars per share) | $32.26 | |
Options Outstanding | ||
Number Outstanding (in shares) | 178,608 | |
Weighted-Average Remaining Contractual Life | 6 years 11 months 5 days | |
Weighted-Average Exercise Price (in dollars per share) | $30.97 | |
$32.27 - 48.85 | ||
Share-based compensation | ||
Exercise price, low end of range (in dollars per share) | $32.27 | |
Exercise price, high end of range (in dollars per share) | $48.85 | |
Options Outstanding | ||
Number Outstanding (in shares) | 42,500 | |
Weighted-Average Remaining Contractual Life | 9 months 15 days | |
Weighted-Average Exercise Price (in dollars per share) | $42.58 | |
Options Exercisable | ||
Number Exercisable (in shares) | 42,500 | |
Weighted-Average Exercise Price (in dollars per share) | $42.58 | |
$48.86 - 50.00 | ||
Share-based compensation | ||
Exercise price, low end of range (in dollars per share) | $48.86 | |
Exercise price, high end of range (in dollars per share) | $50 | |
Options Outstanding | ||
Number Outstanding (in shares) | 150,000 | |
Weighted-Average Remaining Contractual Life | 1 year 6 months | |
Weighted-Average Exercise Price (in dollars per share) | $50 | |
Options Exercisable | ||
Number Exercisable (in shares) | 150,000 | |
Weighted-Average Exercise Price (in dollars per share) | $50 | |
$50.01 - 53.72 | ||
Share-based compensation | ||
Exercise price, low end of range (in dollars per share) | $50.01 | |
Exercise price, high end of range (in dollars per share) | $53.72 | |
Options Outstanding | ||
Number Outstanding (in shares) | 114,564 | |
Weighted-Average Remaining Contractual Life | 3 months | |
Weighted-Average Exercise Price (in dollars per share) | $50.73 | |
Options Exercisable | ||
Number Exercisable (in shares) | 114,564 | |
Weighted-Average Exercise Price (in dollars per share) | $50.73 |
ShareBased_Compensation_Detail5
Share-Based Compensation (Details 6) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
1998 Employee Stock Purchase Plan | |||
Additional disclosures | |||
Number of shares authorized | 243,000 | ||
Purchase price as a percentage of fair market value | 85.00% | ||
Offering period | 1 year | ||
Shares issued | 0 | 0 | 0 |
Options | |||
Additional disclosures | |||
Fair value of options vested | 1.4 | 1.3 | 1.5 |
Unrecognized compensation cost, net of expected forfeitures | 3.6 | ||
Weighted-average period over which cost is expected to be recognized | 3 years 2 months 12 days | ||
Restricted shares | |||
Additional disclosures | |||
Number of vesting installments | 4 | ||
Unrecognized compensation cost, net of expected forfeitures | 5.8 | ||
Weighted-average period over which cost is expected to be recognized | 3 years 1 month 6 days | ||
Non-vested Restricted Stock and Stock Units, Number of Shares | |||
Balance at the beginning of the period (in shares) | 309,038 | ||
Granted (in shares) | 135,593 | ||
Vested (in shares) | -149,195 | -134,384 | -216,528 |
Forfeited (in shares) | -9,294 | ||
Balance at the end of the period (in shares) | 286,142 | 309,038 | |
Non-vested Restricted Stock and Stock Units, Weighted-Average Fair Value | |||
Balance at the beginning of the period (in dollars per share) | 20.39 | ||
Granted (in dollars per share) | 28.51 | ||
Vested (in dollars per share) | 21.75 | ||
Forfeited (in dollars per share) | 20.95 | ||
Balance at the end of the period (in dollars per share) | 23.72 | 20.39 | |
Additional disclosures | |||
Number of shares issuable upon achievement of certain financial performance goals, specified period one | 212,000 | ||
Number of shares issuable upon achievement of certain financial performance goals, specified period two | 149,000 |
Business_Segment_and_Geographi2
Business Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
segment | |||||||||||
Business segment and geographic information | |||||||||||
Number of business segments | 1 | ||||||||||
Revenues | $78,459 | $73,483 | $78,184 | $76,245 | $75,672 | $74,427 | $65,203 | $63,130 | $306,371 | $278,432 | $270,390 |
Long-lived assets (property and equipment, net) | 14,696 | 15,655 | 14,696 | 15,655 | |||||||
United States | |||||||||||
Business segment and geographic information | |||||||||||
Revenues | 238,466 | 216,815 | 207,779 | ||||||||
Long-lived assets (property and equipment, net) | 12,753 | 13,657 | 12,753 | 13,657 | |||||||
United Kingdom | |||||||||||
Business segment and geographic information | |||||||||||
Revenues | 49,127 | 46,987 | 51,059 | ||||||||
Long-lived assets (property and equipment, net) | 1,595 | 1,911 | 1,595 | 1,911 | |||||||
Other | |||||||||||
Business segment and geographic information | |||||||||||
Revenues | 18,778 | 14,630 | 11,552 | ||||||||
Long-lived assets (property and equipment, net) | 348 | 87 | 348 | 87 | |||||||
Total foreign | |||||||||||
Business segment and geographic information | |||||||||||
Revenues | 67,905 | 61,617 | 62,611 | ||||||||
Long-lived assets (property and equipment, net) | $1,943 | $1,998 | $1,943 | $1,998 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Income (loss) before (provision) benefit for income taxes: | |||||||||||
U.S. | $20,899 | $13,659 | ($27,290) | ||||||||
Foreign | 2,416 | 4,259 | -30,733 | ||||||||
Income (loss) before (provision) benefit for income taxes | 6,022 | 5,575 | 6,334 | 5,384 | 5,221 | 5,952 | 3,368 | 3,377 | 23,315 | 17,918 | -58,023 |
Components of income tax provision (benefit) | |||||||||||
Income tax provision (benefit) | 9,908 | 6,683 | -5,180 | ||||||||
Currently payable: | |||||||||||
Federal | 8,585 | 1,241 | 3,637 | ||||||||
Foreign | 876 | 1,264 | 50 | ||||||||
State | 1,878 | 254 | 1,015 | ||||||||
Currently payable | 11,339 | 2,759 | 4,702 | ||||||||
Deferred: | |||||||||||
Federal | -1,068 | 3,592 | -8,163 | ||||||||
Foreign | -505 | -238 | 21 | ||||||||
State | 142 | 570 | -1,740 | ||||||||
Deferred | -1,431 | 3,924 | -9,882 | ||||||||
Provision (benefit) for income taxes | $9,908 | $6,683 | ($5,180) | ||||||||
Reconciliation of tax rates with federal statutory rate | |||||||||||
Federal statutory rate (as a percent) | 35.00% | 35.00% | -35.00% | ||||||||
State income taxes, net of federal income tax benefit (as a percent) | 3.60% | 4.40% | -1.30% | ||||||||
Goodwill impairment (as a percent) | 20.60% | ||||||||||
Foreign losses benefited (as a percent) | -1.80% | -2.80% | -0.10% | ||||||||
Losses not benefited (as a percent) | 0.60% | 0.30% | 4.20% | ||||||||
Foreign rate differential (as a percent) | 0.60% | -0.40% | 2.10% | ||||||||
Foreign tax credit (as a percent) | -0.10% | -0.50% | |||||||||
Uncertain tax positions (as a percent) | 0.70% | -2.10% | |||||||||
Impact of NeuCo's tax provision charges (as a percent) | 0.90% | 1.50% | 0.10% | ||||||||
Permanently disallowed expenses (as a percent) | 2.10% | 1.60% | 1.00% | ||||||||
Prior period adjustments (as a percent) | 3.00% | ||||||||||
Release of valuation allowance (as a percent) | -2.20% | ||||||||||
Other (as a percent) | -0.10% | ||||||||||
Effective tax rate (as a percent) | 42.50% | 37.30% | -8.90% |
Income_Taxes_Detail_2
Income Taxes (Detail 2) (USD $) | 12 Months Ended | |
Jan. 03, 2015 | Dec. 28, 2013 | |
Deferred tax assets: | ||
Accrued compensation and related expense | $23,876,000 | $21,064,000 |
Tax basis in excess of financial basis of net accounts receivable | 2,065,000 | 2,363,000 |
Net operating loss carryforwards | 5,201,000 | 5,421,000 |
Tax basis in excess of financial basis of fixed assets | 19,000 | 1,489,000 |
Accrued expenses and other | 967,000 | 902,000 |
Total gross deferred tax assets | 32,128,000 | 31,239,000 |
Less: valuation allowance | -4,912,000 | -6,101,000 |
Total deferred tax assets net of valuation allowance | 27,216,000 | 25,138,000 |
Deferred tax liabilities: | ||
Tax basis in excess of financial basis of debentures | 5,708,000 | 2,938,000 |
Excess tax over book amortization | 3,844,000 | 5,024,000 |
Total deferred tax liabilities | 9,552,000 | 7,962,000 |
Net deferred tax assets | 17,664,000 | 17,176,000 |
Valuation allowance | ||
Net change in valuation allowance | -1,200,000 | |
Decrease related to deferred tax liability | 500,000 | |
Net operating losses | ||
Valuation allowance | ||
Decrease in valuation allowance from provision to return differences | -200,000 | |
Net operating losses | Foreign | ||
Valuation allowance | ||
Net change in valuation allowance | 100,000 | |
Decrease in valuation allowance from benefits on prior net operating losses | ($400,000) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Jan. 03, 2015 |
In Millions, unless otherwise specified | |
Foreign | |
Operating loss carryforwards | |
Net operating loss carryforwards | $9.90 |
Operating losses subject to expiration | 0.2 |
U.S. federal and U.S. state | NeuCo, Inc. | |
Operating loss carryforwards | |
Net operating loss carryforwards | 10.4 |
Federal | NeuCo, Inc. | |
Operating loss carryforwards | |
Operating losses available to offset the entity's consolidated taxable income | $0 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
Jan. 03, 2015 | Dec. 28, 2013 | |
Changes in the balances of gross unrecognized tax benefits | ||
Balance at beginning of period | $372,000 | $3,032,000 |
Additions for tax positions taken during prior years | 127,000 | 372,000 |
Additions for tax positions taken during the current year | 45,000 | |
Settlements with tax authorities | -9,000 | -3,032,000 |
Balance at end of the period | 535,000 | 372,000 |
Interest accrued on unrecognized tax benefits | 185,000 | |
Unrecognized tax benefits before adjustments | 720,000 | |
Unrecognized tax benefits offset by future tax deduction | 111,000 | |
Interest and penalties on unrecognized tax benefits | 85,000 | 67,000 |
Unrecognized tax benefits being recognized as a reduction to the effective income tax rate | 467,000 | |
Amount of unrecognized tax benefits that is reasonably possible to be reversed within the next twelve months | 162,000 | |
Additional disclosures | ||
Undistributed earnings from foreign subsidiaries | $3,500,000 |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (Shareholders, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Shareholders | |||
Related-Party Transactions | |||
Payments for consulting services | $10.20 | $6.10 | $5.40 |
Restructuring_Charges_Details
Restructuring Charges (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jun. 30, 2012 | |
Restructuring charges disclosures | ||||
Restructuring expenses | $6,700,000 | |||
Restructuring charges related to termination benefits, facility related charges, asset write downs and other charges | 5,400,000 | |||
Restructuring expenses and reserve balance | ||||
Balance at the beginning of the period | 1,170,000 | 2,979,000 | ||
Amounts paid, net of amounts received | -750,000 | -1,488,000 | ||
Non-cash adjustments and effect of foreign currency translation | 42,000 | -321,000 | ||
Balance at the end of the period | 462,000 | 1,170,000 | 2,979,000 | |
Cost of sales | ||||
Restructuring charges disclosures | ||||
Restructuring expenses | 3,800,000 | |||
Selling, general and administrative expenses | ||||
Restructuring charges disclosures | ||||
Restructuring expenses | 1,500,000 | |||
Depreciation and amortization expense | ||||
Restructuring charges disclosures | ||||
Restructuring expenses | 1,400,000 | |||
Office Vacancies | ||||
Restructuring expenses and reserve balance | ||||
Balance at the beginning of the period | 1,170,000 | 2,106,000 | ||
Amounts paid, net of amounts received | -750,000 | -759,000 | ||
Non-cash adjustments and effect of foreign currency translation | 42,000 | -177,000 | ||
Balance at the end of the period | 462,000 | 1,170,000 | ||
Employee Workforce Reduction | ||||
Restructuring expenses and reserve balance | ||||
Balance at the beginning of the period | 873,000 | |||
Amounts paid, net of amounts received | -729,000 | |||
Non-cash adjustments and effect of foreign currency translation | -144,000 | |||
London office surrender | ||||
Restructuring charges disclosures | ||||
Restructuring expenses | 1,700,000 | |||
Number of floors under lease surrendered | 1 | |||
Number of floors under lease | 3 | |||
London office surrender | Lease surrender | ||||
Restructuring expenses and reserve balance | ||||
Amounts paid, net of amounts received | -1,200,000 | |||
London office surrender | Other restructuring | ||||
Restructuring charges disclosures | ||||
Restructuring expenses | 500,000 | |||
Houston office space adjustments | ||||
Restructuring charges disclosures | ||||
Pre-tax restructuring credit related to adjustments of leased office space in Houston, TX | $400,000 | |||
Restructuring Plan, July 2012 | Minimum | ||||
Restructuring charges disclosures | ||||
Number of consulting positions reduced under the plan | 60 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Jan. 03, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 |
Unaudited Interim Condensed Consolidated Financial Statements and Estimates | |||||||||||
Revenues | $78,459,000 | $73,483,000 | $78,184,000 | $76,245,000 | $75,672,000 | $74,427,000 | $65,203,000 | $63,130,000 | $306,371,000 | $278,432,000 | $270,390,000 |
Gross profit | 25,598,000 | 24,066,000 | 25,515,000 | 24,379,000 | 24,044,000 | 23,850,000 | 20,161,000 | 21,115,000 | 99,558,000 | 89,170,000 | 88,009,000 |
Income from operations | 6,124,000 | 5,795,000 | 6,493,000 | 5,629,000 | 5,459,000 | 6,114,000 | 3,170,000 | 3,774,000 | 24,041,000 | 18,517,000 | -57,810,000 |
Income before provision for income taxes | 6,022,000 | 5,575,000 | 6,334,000 | 5,384,000 | 5,221,000 | 5,952,000 | 3,368,000 | 3,377,000 | 23,315,000 | 17,918,000 | -58,023,000 |
Net income | 3,743,000 | 3,189,000 | 3,167,000 | 3,308,000 | 3,716,000 | 3,333,000 | 1,351,000 | 2,835,000 | 13,407,000 | 11,235,000 | -52,843,000 |
Net (income) loss attributable to noncontrolling interest, net of tax | 73,000 | 35,000 | 21,000 | 102,000 | 6,000 | -63,000 | 58,000 | 134,000 | 231,000 | 135,000 | -147,000 |
Net income attributable to CRA International, Inc. | 3,816,000 | 3,224,000 | 3,188,000 | 3,410,000 | 3,722,000 | 3,270,000 | 1,409,000 | 2,969,000 | 13,638,000 | 11,370,000 | -52,990,000 |
Basic net income (loss) per share (in dollars per share) | $0.41 | $0.33 | $0.32 | $0.34 | $0.37 | $0.32 | $0.14 | $0.30 | $1.40 | $1.13 | ($5.21) |
Diluted net income (loss) per share (in dollars per share) | $0.40 | $0.33 | $0.32 | $0.34 | $0.37 | $0.32 | $0.14 | $0.29 | $1.38 | $1.12 | ($5.21) |
Deferred tax assets valuation error correction | $800,000 | ||||||||||
Weighted average number of shares outstanding: | |||||||||||
Basic (in shares) | 9,344 | 9,729 | 9,919 | 10,029 | 10,071 | 10,093 | 10,100 | 9,994 | 9,747 | 10,084 | 10,167 |
Diluted (in shares) | 9,560 | 9,919 | 10,026 | 10,108 | 10,148 | 10,192 | 10,188 | 10,084 | 9,897 | 10,173 | 10,167 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent event., B P Hancock) | 0 Months Ended | |
Feb. 24, 2015 | Feb. 24, 2015 | |
sqft | ||
Subsequent event. | B P Hancock | ||
Subsequent Event | ||
Additional lease area | 10,057 | 10,057 |
Annual rate (in dollars per sq. ft.) | 49 | 49 |
Lease extension term | 3 years |