Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 21, 2020 | Jun. 28, 2019 | |
Document and Entity Information | |||
Entity Registrant Name | CRA INTERNATIONAL, INC. | ||
Entity Central Index Key | 0001053706 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 28, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-28 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 291 | ||
Entity Common Stock, Shares Outstanding | 7,852,098 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenues | $ 451,370 | $ 417,648 | $ 370,075 |
Costs of services (exclusive of depreciation and amortization) | 317,761 | 289,185 | 258,829 |
Selling, general and administrative expenses | 93,613 | 89,533 | 86,537 |
Depreciation and amortization | 10,648 | 9,995 | 8,945 |
Income from operations | 29,348 | 28,935 | 15,764 |
GNU gain on sale of business assets and subsequent liquidation | 258 | 250 | |
Interest expense, net | (1,254) | (647) | (484) |
Foreign currency gains (losses), net | (1,297) | 387 | (366) |
Income before provision for income taxes and noncontrolling interest | 26,797 | 28,933 | 15,164 |
Provision for income taxes | 6,050 | 6,461 | 7,463 |
Net income | 20,747 | 22,472 | 7,701 |
Net (income) loss attributable to noncontrolling interest, net of tax | (20) | 77 | |
Net income attributable to CRA International, Inc. | $ 20,747 | $ 22,492 | $ 7,624 |
Net income per share attributable to CRA International, Inc.: | |||
Basic (in dollars per share) | $ 2.63 | $ 2.76 | $ 0.91 |
Diluted (in dollars per share) | $ 2.53 | $ 2.61 | $ 0.89 |
Weighted average number of shares outstanding: | |||
Basic (in shares) | 7,866 | 8,107 | 8,292 |
Diluted (in shares) | 8,167 | 8,570 | 8,497 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 20,747 | $ 22,472 | $ 7,701 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 831 | (2,698) | 3,922 |
Comprehensive income | 21,578 | 19,774 | 11,623 |
Comprehensive (income) loss attributable to noncontrolling interest | 20 | (77) | |
Comprehensive income attributable to CRA International, Inc. | $ 21,578 | $ 19,794 | $ 11,546 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 25,639 | $ 38,028 |
Accounts receivable, net of allowances of $3,838 at December 28, 2019 and $3,764 at December 29, 2018 | 107,841 | 94,525 |
Unbilled services, net of allowances of $1,503 at December 28, 2019 and $415 at December 29, 2018 | 36,569 | 36,060 |
Prepaid expenses and other current assets | 7,277 | 6,423 |
Forgivable loans | 6,751 | 6,104 |
Total current assets | 184,077 | 181,140 |
Property and equipment, net | 61,295 | 48,088 |
Goodwill | 88,504 | 88,208 |
Intangible assets, net | 6,476 | 7,846 |
Right-of-use assets | 130,173 | |
Deferred income taxes | 10,670 | 9,330 |
Forgivable loans, net of current portion | 48,390 | 34,190 |
Other assets | 3,658 | 2,044 |
Total assets | 533,243 | 370,846 |
Current liabilities: | ||
Accounts payable | 26,069 | 21,938 |
Accrued expenses | 121,301 | 108,233 |
Deferred revenue and other liabilities | 6,723 | 6,866 |
Current portion of lease liabilities | 12,847 | |
Current portion of deferred rent | 1,810 | |
Current portion of deferred compensation | 4,470 | 3,650 |
Total current liabilities | 171,410 | 142,497 |
Non-current liabilities: | ||
Deferred compensation and other non-current liabilities | 15,071 | 7,957 |
Deferred rent and facility-related non-current liabilities | 1,956 | 23,618 |
Non-current portion of lease liabilities | 146,551 | |
Deferred income taxes | 504 | 302 |
Total non-current liabilities | 164,082 | 31,877 |
Commitments and contingencies (note 16) | ||
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; 7,814,797 and 8,010,480 shares issued and outstanding at December 28, 2019 and December 29, 2018, respectively | 9,265 | 22,837 |
Retained earnings | 200,249 | 186,229 |
Accumulated other comprehensive loss | (11,763) | (12,594) |
Total shareholders' equity | 197,751 | 196,472 |
Total liabilities and shareholders' equity | $ 533,243 | $ 370,846 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for accounts receivable (in dollars) | $ 3,838 | $ 3,764 |
Allowance for unbilled services (in dollars) | $ 1,503 | $ 415 |
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 | 7,814,797 | 8,010,480 |
Common stock, shares outstanding | 7,814,797 | 8,010,480 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
OPERATING ACTIVITIES: | |||
Net income | $ 20,747 | $ 22,472 | $ 7,701 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 10,606 | 9,942 | 8,859 |
Loss on disposal of property and equipment | 42 | 54 | 71 |
Impairment of intangible assets | 530 | ||
GNU gain on sale of business assets and subsequent liquidation | (258) | (250) | |
Deferred rent and facility related liabilities | 117 | 3,596 | 3,171 |
Right-of-use asset amortization | 10,662 | ||
Deferred income taxes | (1,159) | (829) | 1,651 |
Share-based compensation expenses | 3,461 | 4,819 | 6,616 |
Accounts receivable allowances | 47 | (1,410) | 1,739 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (12,759) | (14,427) | (13,032) |
Unbilled services, net | (352) | (2,987) | (7,640) |
Prepaid expenses and other current assets, and other assets | (2,120) | 5,502 | 6,067 |
Forgivable loans | (16,331) | (12,277) | 5,641 |
Incentive cash awards | 4,839 | 3,206 | 1,319 |
Accounts payable, accrued expenses, and other liabilities | 16,194 | 18,786 | 23,415 |
Lease liabilities | (6,162) | ||
Net cash provided by operating activities | 27,832 | 36,189 | 45,858 |
INVESTING ACTIVITIES: | |||
Cash consideration paid for acquisitions | (16,163) | ||
Purchases of property and equipment | (16,693) | (15,447) | (9,757) |
GNU cash proceeds from sale of business assets | 250 | ||
Net cash used in investing activities | (16,693) | (15,447) | (25,670) |
FINANCING ACTIVITIES: | |||
Issuance of common stock, principally stock options exercises | 3,211 | 2,166 | 6,420 |
Borrowings under revolving line of credit | 54,000 | 30,161 | 11,500 |
Payments under line of credit | (54,000) | (30,161) | (11,500) |
Tax withholding payments reimbursed by shares | (2,176) | (3,946) | (3,262) |
Cash paid on dividend equivalents | (246) | (256) | (121) |
Cash dividends paid to shareholders | (6,539) | (5,784) | (4,941) |
Repurchases of common stock | (18,068) | (27,884) | (19,528) |
Distribution to noncontrolling interest | (43) | (419) | |
Net cash used in financing activities | (23,818) | (35,747) | (21,851) |
Effect of foreign exchange rates on cash and cash equivalents | 290 | (1,002) | 2,168 |
Net (decrease) increase in cash and cash equivalents | (12,389) | (16,007) | 505 |
Cash and cash equivalents at beginning of period | 38,028 | 54,035 | |
Cash and cash equivalents at end of period | 25,639 | 38,028 | 54,035 |
Noncash investing and financing activities: | |||
Issuance of common stock for acquired business | 3,044 | ||
Purchases of property and equipment not yet paid for | 4,914 | 303 | 3,514 |
Purchases of property and equipment paid by a third party | 156 | 133 | 1,640 |
Asset retirement obligations | 428 | 223 | 120 |
Right-of-use assets obtained in exchange for lease obligations | 57,827 | ||
Right-of-use assets related to the adoption of ASC 842 | 82,329 | ||
Lease liabilities related to the adoption of ASC 842 | 106,765 | ||
Supplemental cash flow information: | |||
Cash paid for taxes | 7,590 | 4,813 | 7,424 |
Cash paid for interest | 1,157 | $ 509 | $ 314 |
Cash paid for amounts included in operating lease liabilities | $ 14,620 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | CRA International, Inc. Shareholders' Equity | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total |
Increase (Decrease) in Shareholders' Equity | ||||||
Cumulative effect of a change in accounting principle | ASU 2016-09 | $ 48 | $ 48 | $ 48 | |||
Balance, as adjusted | 207,268 | $ 54,124 | 166,962 | $ (13,818) | $ 663 | 207,931 |
BALANCE at Dec. 31, 2016 | 207,220 | $ 54,124 | 166,914 | (13,818) | 663 | 207,883 |
BALANCE (in shares) at Dec. 31, 2016 | 8,333,990 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 7,624 | 7,624 | 77 | 7,701 | ||
Foreign currency translation adjustment | 3,922 | 3,922 | 3,922 | |||
Issuance of common stock | 3,044 | $ 3,044 | 3,044 | |||
Issuance of common stock (in shares) | 89,312 | |||||
Exercise of stock options | 6,420 | $ 6,420 | 6,420 | |||
Exercise of stock options (in shares) | 293,439 | |||||
Share-based compensation expense for employees | 6,489 | $ 6,489 | 6,489 | |||
Restricted shares vesting (in shares) | 211,320 | |||||
Redemption of vested employee restricted shares for tax withholding | (3,262) | $ (3,262) | (3,262) | |||
Redemption of vested employee restricted shares for tax withholding (in shares) | (76,181) | |||||
Shares repurchased | (19,528) | $ (19,528) | (19,528) | |||
Shares repurchased (in shares) | (554,708) | |||||
Share-based compensation expense for non-employees | 127 | $ 127 | 127 | |||
Distribution to noncontrolling interest | (419) | (419) | ||||
Accrued dividends on unvested shares | (134) | (134) | (134) | |||
Cash paid on dividend equivalents | (121) | (121) | (121) | |||
Cash dividends paid to shareholders (per share) | (4,941) | (4,941) | (4,941) | |||
BALANCE at Dec. 30, 2017 | 206,908 | $ 47,414 | 169,390 | (9,896) | 321 | 207,229 |
BALANCE (in shares) at Dec. 30, 2017 | 8,297,172 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Cumulative effect of a change in accounting principle | ASC 606 | 366 | 366 | 366 | |||
Balance, as adjusted | 207,274 | $ 47,414 | 169,756 | (9,896) | 321 | 207,595 |
Net income | 22,492 | 22,492 | (20) | 22,472 | ||
Foreign currency translation adjustment | (2,698) | (2,698) | (2,698) | |||
Exercise of stock options | 2,166 | $ 2,166 | 2,166 | |||
Exercise of stock options (in shares) | 100,771 | |||||
Share-based compensation expense for employees | 4,819 | $ 4,819 | 4,819 | |||
Restricted shares vesting (in shares) | 237,509 | |||||
Redemption of vested employee restricted shares for tax withholding | (3,946) | $ (3,946) | (3,946) | |||
Redemption of vested employee restricted shares for tax withholding (in shares) | (83,341) | |||||
Shares repurchased | (27,616) | $ (27,616) | (27,616) | |||
Shares repurchased (in shares) | (541,631) | |||||
GNU gain on sale of business assets and subsequent liquidation | (258) | (258) | ||||
Distribution to noncontrolling interest | $ (43) | (43) | ||||
Accrued dividends on unvested shares | 21 | 21 | 21 | |||
Cash paid on dividend equivalents | (256) | (256) | (256) | |||
Cash dividends paid to shareholders (per share) | (5,784) | (5,784) | (5,784) | |||
BALANCE at Dec. 29, 2018 | 196,472 | $ 22,837 | 186,229 | (12,594) | $ 196,472 | |
BALANCE (in shares) at Dec. 29, 2018 | 8,010,480 | 8,010,480 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 20,747 | 20,747 | $ 20,747 | |||
Foreign currency translation adjustment | 831 | 831 | 831 | |||
Exercise of stock options | 3,211 | $ 3,211 | 3,211 | |||
Exercise of stock options (in shares) | 140,513 | |||||
Share-based compensation expense for employees and non-employees | 3,461 | $ 3,461 | 3,461 | |||
Restricted shares vesting (in shares) | 128,089 | |||||
Redemption of vested employee restricted shares for tax withholding | (2,176) | $ (2,176) | (2,176) | |||
Redemption of vested employee restricted shares for tax withholding (in shares) | (43,173) | |||||
Shares repurchased | (18,068) | $ (18,068) | (18,068) | |||
Shares repurchased (in shares) | (421,112) | |||||
Accrued dividends on unvested shares | 58 | 58 | 58 | |||
Cash paid on dividend equivalents | (246) | (246) | (246) | |||
Cash dividends paid to shareholders (per share) | (6,539) | (6,539) | (6,539) | |||
BALANCE at Dec. 28, 2019 | $ 197,751 | $ 9,265 | $ 200,249 | $ (11,763) | $ 197,751 | |
BALANCE (in shares) at Dec. 28, 2019 | 7,814,797 | 7,814,797 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||
Cash dividends paid to shareholders (in dollars per share) | $ 0.83 | $ 0.71 | $ 0.59 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Description of Business CRA International, Inc. (“CRA or the “Company”) 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. CRA operates its business under its registered trade name, Charles River Associates. Fiscal Year and Quarters 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 2019, fiscal 2018, and fiscal 2017 were 52-week years. CRA’s fiscal quarter ends are determined as the last Saturday nearest the respective calendar quarter end. Basis of Presentation The Consolidated Financial Statements include the accounts of CRA International, Inc. and its majority-owned subsidiaries (collectively the ‘Company’) which require consolidation, after the elimination of intercompany accounts and transactions. In addition, as more fully explained in note 12, the consolidated financial statements include CRA’s interest in GNU123 Liquidating Corporation (‘GNU’). The Company’s fiscal year ends on the Saturday nearest to December 31. There were 52 weeks in each of the fiscal years 2019, 2018 and 2017. Certain prior year amounts have been reclassified to conform to current year presentation. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United State of America (“U.S. GAAP”) requires management to make significant estimates and judgments that affect the reported amounts of assets and liabilities, as well as the related 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, allowances for accounts receivable and unbilled services, revenue recognition on fixed price contracts, variable consideration to be included in the transaction price of revenue contracts, depreciation of property and equipment, measurement of operating lease right-of-use (“ROU”) assets and liabilities, share-based compensation, valuation of the contingent consideration liabilities, valuation of acquired intangible assets, impairment of long-lived assets, goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued incentive compensation, and certain 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. Cash and Cash Equivalents As of December 28, 2019, CRA's cash accounts were concentrated at two financial institutions, which potentially exposes CRA to credit risks. The financial institutions both have short-term credit ratings 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 institutions, and its cash on deposit is fully liquid. CRA continually monitors the credit ratings of the institutions. Cash equivalents consist principally of money market funds with maturities of three months or less when purchased. Foreign Currency Translation Asset and liability 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 reporting period. The resulting translation adjustments are recorded in shareholders’ equity as a component of accumulated other comprehensive income (loss). Foreign currency transactions are remeasured at current exchanges rates, with adjustments recorded in the statement of operations. The effect of transaction gains and losses recorded in income before provision for income taxes amounted to losses of $1.3 million for fiscal 2019, gains of $0.4 million for fiscal 2018, and losses of $0.4 million for fiscal 2017. Revenue Recognition and Allowances for Accounts Receivable and Unbilled Services On December 31, 2017, CRA adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective method for all contracts not completed as of the date of adoption. Under ASC 606, revenue is recognized when CRA satisfies a performance obligation by transferring services promised in a contract to a client in an amount that reflects the consideration that CRA expects to receive in exchange for those services. Performance obligations in CRA’s contracts represent distinct or separate service streams that CRA provides to clients Revenue contracts with clients are evaluated based on the five-step model under ASC 606: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenues when (or as) each performance obligation is satisfied. If, at the outset of an arrangement, CRA determines that an enforceable contract does not exist, revenues are deferred until all criteria for an enforceable contract are met. CRA derives substantially all of its revenues from the performance of professional services for its clients. The contracts that CRA enters into and operates under specify whether the engagement will be billed on a time‑and‑materials basis or a fixed‑price basis. These engagements generally last three to six months, although some engagements can be much longer in duration. Each contract must be approved by a vice president. · Time-and-materials arrangements require the client to pay based on the number of hours worked at contractually agreed-upon hourly rates. Revenues are recognized from these arrangements based on hours incurred and contracted rates based a right-to-payment for services completed to date. When a time-and-materials arrangement has a “cap” or “limit” amount, revenue is recognized up to the cap or limit amount specified by the client, based on the efforts or hours incurred and expenses incurred. Thereafter, revenue is reserved pending an amendment of the cap or limit. · Fixed-price arrangements require the client to pay a contractually agreed-upon fee in exchange for a pre-established set of professional services. Fees are based on estimates of the costs and timing for completing a performance obligation. Under fixed-price arrangements, revenues are generally recognized using a proportional performance method, which is based on the ratio of costs incurred to the total estimated costs for completing a performance obligation. CRA’s fixed-price arrangements generally have a single performance obligation. For arrangements that contain multiple performance obligations, the fixed price is allocated based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. If the standalone selling price is not observable through past transactions, CRA estimates the standalone selling price considering all available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Variable consideration to be included in the transaction price is estimated based on the most likely amount CRA expects to be entitled to if it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration are based on historical realization rates. Revenues from CRA’s consulting services are recorded at the net transaction price, which includes estimates of variable consideration for which reserves are established. These variable consideration reserves, which are based on actual price concessions and those expected to be extended to CRA clients, are classified as reductions of accounts receivable and unbilled services. Specific reserves for accounts receivable and unbilled services are a component of variable consideration. Actual amounts of consideration ultimately received may differ from CRA’s estimates. If actual results in the future vary from its estimates, CRA adjusts these estimates, which would affect net revenue and earnings in the period such variances become known. Reimbursable expenses, including those relating to travel, out-of-pocket expenses, outside consultants and other outside service costs, are generally included in revenues, and an equivalent amount of reimbursable expenses is included in costs of services in the period in which the expense is incurred. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. CRA usually issues invoices to its customers on a monthly basis, and payment is due upon receipt of the invoice. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in ASC 606, CRA does not assess whether a significant financing component exists if the period between when it performs its obligations under the contract and when the customer pays is one year or less. None of CRA’s contracts contained a significant financing component as of December 28, 2019 or December 29, 2018. Differences between the timing of billing and the recognition of revenue are recognized as either unbilled services or deferred revenues in the accompanying consolidated balance sheets. Revenues recognized for services performed but not yet billed to clients are recorded as unbilled services. Client prepayments and retainers are classified as deferred revenues and recognized over future periods as earned in accordance with the applicable retention agreement. CRA maintains accounts receivable and unbilled services allowances for estimated losses resulting from clients’ failure to make required payments. These allowances are determined for specific customer accounts and are based on the financial condition of CRA’s customer and related facts and circumstances. Expenses associated with these allowances are reported as a component of selling, general and administrative expenses. Prior to adopting ASC Topic 606 on December 31, 2017, CRA followed the revenue recognition guidance as issued in ASC Topic 605, Revenue Recognition ("ASC 605"). Under this guidance, CRA would recognize substantially all of its revenues under written service contracts when the fee was fixed and determinable, as the services were provided, and only in those situations where collection from the client was reasonably assured. In certain cases CRA provided services to its clients without sufficient contractual documentation, or fees were tied to performance-based criteria, which required the Company to defer revenue in accordance with ASC 605. In these cases, these amounts were fully reserved, and the reserve was reduced as cash was received. CRA recognized 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 . In general, project costs were classified in costs of services and were 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 the Company by its non-employee experts. Revenues from time-and-materials service contracts were recognized as the services were provided based upon hours worked and contractually agreed-upon hourly rates, as well as indirect fees based upon hours worked. Under ASC 605, revenues from a majority of CRA's fixed-price engagements were 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. The proportional performance method was used for fixed-price contracts because reasonably dependable estimates of the revenues and costs applicable to various stages of a contract could be made, based on historical experience and the terms set forth in the contract, and were indicative of the level of benefit provided to CRA's clients. CRA's management maintained contact with project managers to discuss the status of the projects and, for fixed-price engagements, management was updated on the budgeted costs and resources required to complete the project. These budgets were then used to calculate proportional performance ratios and to estimate the anticipated income or loss on the project. Provisions for estimated losses on contracts were made during the period in which such losses become probable and could be reasonably estimated. Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants and other reimbursable expenses. Deferred Compensation CRA accounts for performance-based and service-based cash awards using a an accrual method where changes in estimates are accounted for prospectively over the remaining service period. To the extent the terms of an award attribute all or a portion of the expected future benefits to a period of service greater than one year, the cost of those benefits is accrued over the employee’s or non-employee's requisite service period in a systematic and rational manner, usually on a straight-line basis. The requisite service period typically ranges from three to six years starting with the employee’s employment date or non-employee's affiliation date. For an employee or non-employee consultant currently affiliated with CRA, the requisite service period generally begins at the start of the award’s measurement period. A recipient of such an award is expected to be employed by or affiliated with CRA for the entire measurement period. If the recipient’s employment or affiliation with CRA terminates during the measurement period, the amount paid will be determined in accordance with the recipient’s specific contract provisions. The terms of award agreements may include the achievement of minimum required financial targets over the award’s measurement period. These financial targets may include a measure of revenue generation, profitability or both. The amount of the liability of the award agreements is estimated based on internally generated financial projections. The process of projecting these financial targets over the measurement period is highly subjective and requires significant judgment and estimates. There can be no assurance that the estimates and assumptions used in preparing these projections will prove to be accurate. Leases CRA is a lessee under certain operating leases for office space and equipment. Prior to adopting ASC Topic 842, Leases (“ASC 842”) on December 30, 2018, CRA followed the lease accounting guidance as issued in ASC Topic 840, Leases (“ASC 840”). Under ASC 840, CRA classified its leases as operating or capital leases based on evaluation of certain criteria of the lease agreement. For leases that contained rent escalations or rent holidays, CRA recorded the total rent expense during the lease term on a straight-line basis over the term of the lease and recorded the difference between the rents paid and the straight-line rent expense as deferred rent on the balance sheet. Any tenant improvement allowances received from the lessor were recorded as a reduction to rent expense over the term of the lease. ASC 842, which CRA adopted on December 30, 2018, requires lessees to recognize leases on the balance sheet as a lease liability with a corresponding ROU asset, subject to certain permitted accounting policy elections. Under ASC 842, CRA determines whether a contract is a lease at the inception of the contract. This determination is based on whether the contract provides CRA the right to control the use of a physically distinct asset or substantially all of the capacity of an asset. Leases with an initial noncancelable term of twelve months or less that do not include an option to purchase the underlying asset that CRA is reasonably certain to exercise are classified as short-term leases. CRA has elected as an accounting policy to exclude from the consolidated balance sheets the ROU assets and lease liabilities related to short-term leases. CRA recognizes rent expense for its operating leases on a straight-line basis over the term of the lease. Many of CRA’s equipment leases are short-term or cancellable with notice. CRA’s office space leases have remaining lease terms between one and approximately twelve years, many of which include one or more options to extend the term for periods of up to five years for each option. Certain leases contain options to terminate the lease early, which may include a penalty for exercising the option. Many of the termination options require notice within a specified period, after which the option is no longer available to CRA if not exercised. The extension options and termination options may be exercised at CRA’s sole discretion. CRA does not consider in the measurement of ROU assets and lease liabilities an option to extend or terminate a lease if CRA is not reasonably certain to exercise the option. As of December 28, 2019, CRA has not included any options to extend or terminate in its measurement of ROU assets or lease liabilities. Certain of CRA’s leases include covenants that oblige CRA, at its sole expense, to repair and maintain the leased asset periodically during the lease term. CRA is not a party to any leases that contain residual value guarantees nor is CRA a party to any leases that provide an option to purchase the underlying asset. Many of CRA’s office space leases include fixed and variable payments. Variable payments relate to real estate taxes, sales or use taxes, insurance, operating expenses, and common area maintenance, which are usually billed at actual amounts incurred proportionate to CRA’s rented square feet of the building. Variable payments that do not depend on an index or rate are expensed by CRA as they are incurred and are not included in the measurement of the lease liability. Many of CRA’s leases contain both lease and non-lease components. For office space leases, the Company has elected as an accounting policy to account for lease and nonlease components as a single component. For equipment leases, fixed and variable payments are allocated to each component relative to observable or estimated standalone prices. CRA measures its variable lease costs as the portion of variable payments that are allocated to lease components. CRA measures its lease liability for each leased asset as the present value of lease payments, as defined in ASC 842, allocated to the lease component, discounted using an incremental borrowing rate specific to the underlying asset. CRA’s ROU assets are equal to the lease liability, adjusted for lease incentives received, including tenant improvement allowances, and payments made to the lessor prior to the lease commencement date. CRA estimates its incremental borrowing rate for each leased asset based on the interest rate CRA would incur to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment. Goodwill In accordance with ASC Topic 350, Intangibles—Goodwill and Other (“ASC Topic 350”), goodwill and intangible assets with indefinite lives are not subject to amortization but are monitored annually as of October 15th 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 CRA's fiscal 2019 goodwill impairment analysis, it operates as one reporting unit, which is its consulting services. Under ASC Topic 350, in performing the goodwill impairment testing and measurement process, CRA compares the estimated value of each of its reporting units to its net book value to identify potential impairment. CRA estimates the fair value of its consulting business reporting unit utilizing its market capitalization, plus an appropriate control premium. Market capitalization is determined by multiplying CRA’s shares outstanding on the test date by the market price of its common stock on that date. CRA determines the control premium utilizing data from publicly available premium studies for the trailing four quarters for public company transactions in its industry group. If the estimated fair value of a reporting unit is less than its net book value, an impairment charge would be recorded in CRA’s consolidated statement of operations. Intangible Assets Intangible assets are comprised of non-competition agreements and customer relationship intangibles, which are separable from goodwill and have determinable useful lives, are valued separately and amortized over their estimated useful lives based on the pattern in which the economic benefit of the asset is expected to be consumed, if reliably determinable. Non-competition agreements are amortized on a straight-line basis over their useful lives, which range between five and nine years. Customer relationship intangible assets are amortized on a straight-line basis over periods that range between eight and ten years, which approximates the pattern of economic benefit. 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. Impairment of Long‑Lived Assets CRA reviews the carrying value of its long‑lived assets (primarily property and equipment, intangible assets, and ROU 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, among others, 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. 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 December 28, 2019 and December 29, 2018 that are measured and recorded in the consolidated financial statements at fair value on a recurring basis (in thousands): December 28, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets or Liabilities Inputs Inputs Level 1 Level 2 Level 3 Assets : Money market mutual funds $ 150 $ — $ — Total Assets $ 150 $ — $ — Liabilities : Contingent consideration liability $ — $ — $ 11,579 Total Liabilities $ — $ — $ 11,579 December 29, 2018 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets or Liabilities Inputs Inputs Level 1 Level 2 Level 3 Assets : Money market mutual funds $ 18,029 $ — $ — Total Assets $ 18,029 $ — $ — Liabilities : Contingent consideration liability $ — $ — $ 6,197 Total Liabilities $ — $ — $ 6,197 The fair value of CRA’s money market mutual fund share holdings is $1.00 per share. The contingent consideration liabilities in the table above are for estimated future contingent consideration payments related to the acquisition of C1 Consulting, LLC, an independent consulting firm, and its wholly-owned subsidiary C1 Associates (collectively, "C1"). The fair value measurement of these liabilities is based on significant inputs not observed in the market and thus represent a Level 3 measurement. The significant unobservable inputs used in the fair value measurements of these contingent consideration liabilities are CRA’s measures of the estimated payouts based on internally generated revenue projections, expected volatility of the revenue projections, and discount rates. The fair value of the contingent consideration was determined using a Monte Carlo simulation. The fair value of these contingent consideration liabilities are reassessed on a quarterly basis by CRA using additional information as it becomes available, and any change in the fair value estimates are recorded in costs of services (exclusive of depreciation and amortization) on the consolidated statements of operations. The contingent consideration is required to be paid prior to the end of the second quarter of fiscal 2021. The following table summarizes the changes in the contingent consideration liabilities over the fiscal year ended December 28, 2019 and the fiscal year ended December 29, 2018 (in thousands): December 28, December 29, 2019 2018 Beginning balance $ 6,197 $ 5,137 Remeasurement of acquisition-related contingent consideration 3,285 (244) Accretion 2,097 1,304 Ending balance $ 11,579 $ 6,197 CRA’s financial instruments, including cash and cash equivalents, accounts receivable, 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. Income Taxes CRA records income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized based on estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. CRA includes in the estimate of deferred tax assets and liabilities an estimate of the realizable benefits from 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. CRA is required to establish a valuation allowance on its deferred tax assets to reflect the likelihood of realization. Significant management judgment is required in determining deferred tax assets and liabilities and any valuation allowance recorded against its net deferred tax assets. The weight of all available evidence is evaluated to determine whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The decision to record a valuation allowance requires varying degrees of judgment based upon the nature of the item giving rise to the deferred tax asset. If, after a valuation allowance is recorded, it is determined that CRA would be able to realize deferred tax assets in the future in excess of their net recorded amount, CRA would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. CRA’s effective tax rate may vary from period to period based on changes in estimated taxable income or loss; changes to the valuation allowance; changes to federal, state, or foreign tax laws; future expansion into areas with varying country, state, and local income tax rates; deductibility of certain costs; uncertain tax positions; expenses by jurisdiction; and results of acquisitions or dispositions. The calculation of CRA’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different tax jurisdictions. CRA is periodically reviewed by domestic and foreign tax authorities. These reviews include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. CRA accounts for uncertainties in income tax positions in accordance with ASC Topic 740, Income Taxes (“ASC 740”). The number of years with open tax audits varies depending on the tax jurisdiction. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was signed into law. The Tax Act subjects a U.S. shareholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. As such, CRA has included its GILTI provision associated with current-year operations solely within the estimated annual effective tax rate ("EAETR") and has not provided additional GILTI on deferred items. 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. For those awards that are deemed probable of vesting, CRA recognizes the estimated fair value 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 time-vesting restricted stock units awarded to employees, CRA estimates share-based compensation cost at the grant date based on the fair value of the restricted stock units and awards and recognizes the cost for awards that are probable of vesting over the requisite service period on a straight-line basis. Performance-vesting restricted stock units are expensed using the graded acceleration method. For share‑based awards granted to non‑employee experts, CRA accounts for the compensation under the fair value recognition requirements in accordance with ASC Topic 718 and ASU 2018-07, and recognizes the cost over the related vesting period. Net Income (Loss) Per Share CRA computes basic net income or loss per share by dividing net income or loss by the weight |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 28, 2019 | |
Revenue Recognition | |
Revenue Recognition | 2. Revenue Recognition The contracts CRA enters into and operates under specify whether the engagements are billed on a time-and-materials or a fixed-price basis. Time-and-materials contracts are typically used for litigation, regulatory, and financial consulting projects while fixed-price contracts are principally used for management consulting projects. In general, project costs are classified in costs of services and are based on the direct salary of CRA’s employee consultants on the engagement plus all direct expenses incurred to complete the engagement, including any amounts billed to CRA by its non-employee experts. Disaggregation of Revenue The following table disaggregates CRA’s revenue by major business line and timing of transfer of its consulting services. Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 Type of Contract (52 weeks) (52 weeks) (52 weeks) (1) Consulting services revenues Fixed Price $ 107,344 $ 95,096 $ 93,570 Time-and-materials 344,026 322,552 276,505 Total $ 451,370 $ 417,648 $ 370,075 Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 Geographic Breakdown (52 weeks) (52 weeks) (52 weeks) (1) Consulting services revenues United States $ 357,156 $ 329,678 $ 295,232 United Kingdom 72,169 65,874 53,644 Other 22,045 22,096 21,199 Total $ 451,370 $ 417,648 $ 370,075 (1) As a result of the adoption of ASC 606 on December 31, 2017 under the modified retrospective method, prior period amounts have not been adjusted. Reserves for Variable Consideration and Credit Risk Revenues from CRA’s consulting services are recorded at the net transaction price, which includes estimates of variable consideration for which reserves are established. These calculated estimates take into consideration CRA’s historical realization rates. Specific reserves for accounts receivable and unbilled services are a component of variable consideration. CRA's accounts receivable and unbilled services 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. A rollforward of the variable consideration and allowances for accounts receivable, which includes an allowance for doubtful accounts of $0.4 million and $0.7 million as of December 28, 2019 and December 29, 2018, respectively, is as follows (in thousands): Fiscal Fiscal Year Year 2019 2018 Balance at beginning of year $ 3,764 $ 5,252 Increases to reserves 2,926 3,675 Amounts written off (2,866) (5,173) Effects of foreign currency translation 14 10 Balance at end of year $ 3,838 $ 3,764 A rollforward of the variable consideration and allowances for unbilled services is as follows (in thousands): Fiscal Fiscal Year Year 2019 2018 Balance at beginning of year $ 415 $ 704 Increases to reserves 5,548 4,755 Amounts written off (4,467) (5,042) Effects of foreign currency translation 7 (2) Balance at end of year $ 1,503 $ 415 Bad debt expense is reported as a component of selling, general and administrative expenses related to credit-related losses. Bad debt expense is as follows (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Bad debt expense $ 173 $ 1,237 $ — Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants and other reimbursable expenses. CRA recovers substantially all of these costs. The following expenses are subject to reimbursement (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Reimbursable expenses $ 54,871 $ 48,817 $ 41,465 Contract Balances from Contracts with Customers CRA defines contract assets as assets for which it has recorded revenue because it determines that it is probable that it will earn a performance based or contingent fee, but is not yet entitled to receive a fee, because certain events, such as completion of the measurement period or client approval, must occur. The contract assets balance was immaterial as of December 28, 2019 and December 29, 2018. CRA defines contract liabilities as advance payments from or billings to its clients for services that have not yet been performed or earned and retainers. These liabilities are recorded within deferred revenues and are recognized as services are provided. When consideration is received, or such consideration is unconditionally due from a customer prior to transferring consulting services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the consulting services are transferred to the customer and all revenue recognition criteria have been met. The following table presents the opening and closing balances of CRA’s contract liability (in thousands): Contract Liability Fiscal Year Fiscal Year 2019 2018 Balance at the beginning of the period $ 5,453 $ 3,287 Balance at the end of the period $ 4,007 $ 5,453 During the year ended December 28, 2019, CRA recognized the following revenue as a result of changes in the contract liability balance or performance obligations satisfied in previous years (in thousands): Year Ended Year Ended December 28, December 29, 2019 2018 (52 weeks) (52 weeks) Amounts included in contract liabilities at the beginning of the year $ 5,155 $ 3,149 Performance obligations satisfied in previous years $ 3,603 $ 3,346 The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled services and contract liabilities on the condensed consolidated balance sheets. |
Forgivable Loans
Forgivable Loans | 12 Months Ended |
Dec. 28, 2019 | |
Forgivable Loans | |
Forgivable Loans | 3. Forgivable Loans In order to attract and retain highly skilled professionals, CRA may issue forgivable loans to employees and non‑employee experts, certain of which loans may be denominated in local currencies. A portion of these loans is collateralized. The forgivable loans have terms that are generally between two and eight years with interest rates currently ranging up to 3.25%. 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. During fiscal years 2019, 2018 and 2017 there were no balances due under these loans for which the full principal and interest were not forgiven in the normal course or not collected upon termination of employment or affiliation with CRA. 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. CRA has not typically recorded an allowance for doubtful accounts for these loans due to its collection experience and its assessment of collectability. For fiscal years 2019 and 2018, no allowances or write offs of these loans were recorded. Forgivable loan activity for fiscal years 2019 and 2018 is as follows (in thousands): Fiscal Year Fiscal Year 2019 2018 Beginning balance $ 40,294 $ 28,628 Advances 35,166 30,572 Repayments (1,173) (3,396) Reclassification to other assets (1,734) — Amortization (17,700) (15,329) Effects of foreign currency translation 288 (181) Ending balance $ 55,141 $ 40,294 Current portion of forgivable loans $ 6,751 $ 6,104 Non-current portion of forgivable loans $ 48,390 $ 34,190 At December 28, 2019 CRA had no other loans to current or former employees included in other assets on the consolidated balance sheet. At December 29, 2018, CRA had other loans to current and former employees included in other assets on the consolidated balance sheet of $0.1 million, net of allowances. |
Leases
Leases | 12 Months Ended |
Dec. 28, 2019 | |
Leases | |
Leases | 4. Leases The components of CRA’s lease expenses, which are included in the condensed consolidated income statement, are as follows (in thousands): Year Ended December 28, 2019 (52 weeks) Operating lease cost $ 15,731 Short-term lease cost 511 Variable lease cost 4,461 Total lease cost $ 20,703 Base rent expense was approximately $13.2 million and $12.1 million in fiscal 2018 and fiscal 2017, respectively. The following table presents summary information for CRA’s lease terms and discount rates for its operating leases: December 28, 2019 Weighted average remaining lease term—operating leases 9.6 years Weighted average discount rate—operating leases 3.7 % At December 28, 2019, CRA had the following maturities of lease liabilities related to office space and equipment, all of which are under non-cancellable operating leases (in thousands): Operating Lease Fiscal Year Commitments 2020 $ 17,973 2021 19,866 2022 20,030 2023 20,258 2024 20,302 Thereafter 96,225 Total lease payments 194,654 Less: imputed interest (35,256) Total $ 159,398 As of December 28, 2019, CRA had an additional operating lease for office space that has not yet commenced that has minimum rental commitments of $2.8 million. This operating leases will commence in fiscal year 2020 and have a lease term of five years, subject to certain extension options. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets The changes in the carrying amount of goodwill for fiscal 2019 and fiscal 2018 are as follows (in thousands): Accumulated Goodwill, impairment Goodwill, gross losses net Balance at December 29, 2018 $ 164,625 $ (76,417) $ 88,208 Effect of foreign currency translation 296 — 296 Balance at December 28, 2019 $ 164,921 $ (76,417) $ 88,504 Accumulated Goodwill, impairment Goodwill, gross losses net Balance at December 30, 2017 $ 165,417 $ (76,417) $ 89,000 Effect of foreign currency translation (792) — (792) Balance at December 29, 2018 $ 164,625 $ (76,417) $ 88,208 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 2019 or fiscal 2018. There were impairment losses of $0.5 million related to intangible assets during fiscal 2017. The components of acquired identifiable intangible assets are as follows (in thousands): December 28, December 29, 2019 2018 Non-competition agreements, net of accumulated amortization of $205 and $544, respectively $ 119 $ 180 Customer relationships, net of accumulated amortization of $5,763 and $4,454, respectively 6,357 7,666 Total, net of accumulated amortization of $5,968 and $4,998, respectively $ 6,476 $ 7,846 Amortization expense related to intangible assets was $1.4 million, $1.4 million, and $1.5 million in fiscal 2019, fiscal 2018, and fiscal 2017, respectively. Amortization of intangible assets held at December 28, 2019 for the next five fiscal years and thereafter is expected to be as follows (in thousands): Amortization Fiscal Year Expense 2020 $ 1,368 2021 927 2022 827 2023 822 2024 822 Thereafter 1,710 $ 6,476 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
Property and Equipment | |
Property and Equipment | 6. Property and Equipment Property and equipment consist of the following (in thousands): December 28, December 29, 2019 2018 Computer, office equipment and software $ 30,627 $ 27,082 Leasehold improvements 55,471 40,782 Furniture 14,481 11,326 Total cost 100,579 79,190 Accumulated depreciation and amortization (39,284) (31,102) Total property and equipment, net $ 61,295 $ 48,088 Depreciation expense was $9.2 million, $8.6 million, and $7.4 million in fiscal 2019, fiscal 2018, and fiscal 2017, respectively. Long-lived assets by geographic location are as follows (in thousands): December 28, December 29, 2019 2018 Long-lived assets (property and equipment, net): United States $ 51,974 $ 39,654 United Kingdom 7,803 6,890 Other 1,518 1,544 Total foreign 9,321 8,434 Total long-lived assets (property and equipment, net) $ 61,295 $ 48,088 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 28, 2019 | |
Accrued Expenses | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consist of the following (in thousands): December 28, December 29, 2019 2018 Compensation and related expenses $ 99,993 $ 90,711 Income taxes payable 430 514 Commissions due to senior consultants 9,961 9,600 Direct project accruals 442 700 Accrued leasehold improvements 2,166 100 Other 8,309 6,608 Total $ 121,301 $ 108,233 As of December 28, 2019 and December 29, 2018, $81.2 million and $73.9 million, respectively, of accrued bonuses for fiscal 2019 and fiscal 2018 were included above in “Compensation and related expenses”. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Taxes | |
Income Taxes | 8. Income Taxes The components of income before provision for income taxes are as follows (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Income before provision for income taxes: U.S. $ 20,778 $ 21,118 $ 12,248 Foreign 6,019 7,815 2,916 Total $ 26,797 $ 28,933 $ 15,164 The provision (benefit) for income taxes consists of the following (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Currently payable: Federal $ 4,252 $ 4,015 $ 4,515 Foreign 1,119 1,487 493 State 1,838 1,788 804 7,209 7,290 5,812 Deferred: Federal (869) (384) 1,809 Foreign 331 (88) (85) State (621) (357) (73) (1,159) (829) 1,651 $ 6,050 $ 6,461 $ 7,463 A reconciliation of CRA’s tax rates with the federal statutory rate is as follows: Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal income tax benefit 5.5 4.9 3.9 Tax law changes — 0.9 23.7 Share-based compensation (5.0) (6.3) (15.8) Meals & Entertainment Expense 1.7 1.3 3.0 Executive Compensation 1.6 1.0 1.8 Foreign rate differential — — (2.8) Uncertain tax positions (2.5) (1.1) (0.1) Other 0.3 0.6 0.5 22.6 % 22.3 % 49.2 % Effects of the Tax Cuts and Jobs Act On December 22, 2017, the Tax Act was signed into U.S. law. The Tax Act significantly changes the Internal Revenue Code of 1986, as amended. The Tax Act, among other things, includes changes to the U.S. corporate tax rate, expands limitations on the deductibility of meals and entertainment, eliminates the exception to the section 162(m) limitation on the deductibility of the compensation paid to certain executive officers for “qualified performance-based compensation,” allows for the expensing of capital expenditures, migrates from a “worldwide” system of taxation to a territorial system, and includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. ASC Topic 740, Accounting for Income Taxes , requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017, or in the case of certain other provisions of the law, January 1, 2018. Given the significance of the legislation, the U.S. Securities and Exchange Commission staff issued SAB 118, which allows registrants to record provisional amounts during a one year "measurement period" similar to that used when accounting for business combinations. During fiscal 2018, CRA applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act. As of December 29, 2018, CRA had completed its accounting for all the tax effects of the Tax Act. Deferred tax assets and liabilities In response to the Tax Act, CRA remeasured its U.S. related deferred tax assets and liabilities based on the expected rates at which they may reverse in the future, which is generally 21%. CRA recorded a provisional amount of $3.6 million as of December 30, 2017 related to the remeasurement of its deferred tax balances, and further refined the remeasurement during fiscal 2018 by an immaterial amount. Foreign Tax Effects The Tax Act subjects a U.S. shareholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. As of the December 29, 2018 reporting period, CRA had elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. As such, CRA has included a GILTI provision associated with current-year operations solely within the estimated annual effective tax rate ("EAETR") and has not provided additional GILTI on deferred items. The Tax Act allows U.S. corporations to take a deduction related to its foreign-derived intangible income ("FDII") produced in the U.S. CRA has calculated its FDII deduction for the fiscal year ended December 28, 2019 by an immaterial amount. The components of CRA’s deferred tax assets (liabilities) are as follows (in thousands): December 28, December 29, 2019 2018 Deferred tax assets: Accrued compensation and related expense $ 12,842 $ 12,691 Allowance for doubtful accounts 2,023 1,694 Net operating loss carryforwards 335 402 Lease liabilities 39,747 — Deferred rent, accruals, and other 119 5,656 Total gross deferred tax assets 55,066 20,443 Less: valuation allowance — — Total deferred tax assets net of valuation allowance 55,066 20,443 Deferred tax liabilities: Goodwill and other intangible asset amortization 3,650 4,295 Right-of-Use assets 33,012 — Property and equipment 7,690 6,762 Prepaids and other 548 358 Total deferred tax liabilities 44,900 11,415 Net deferred tax assets $ 10,166 $ 9,028 At December 28, 2019, CRA had US local and foreign net operating losses of $1.1 million with lives ranging from 20 years to indefinite. The aggregate changes in the balances of gross unrecognized tax benefits were as follows (in thousands): Fiscal Year Fiscal Year 2019 2018 Balance at beginning of period $ 867 $ 1,031 Additions for tax positions taken during prior years — 132 Reductions for tax positions taken during prior years (25) — Additions for tax positions taken during the current year — — Reductions as a result of a lapse of the applicable statutes of limitations (600) (296) Settlements with tax authorities — — Balance at end of the period $ 242 $ 867 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 2019, accrued interest for uncertain tax positions was immaterial. CRA’s total unrecognized tax benefit at the end of fiscal 2019 is $0.2 million. Settlement of any particular position could require the use of cash. Of the total $0.2 million balance at the end of fiscal 2019, a favorable resolution would result in $0.2 million being recognized as a reduction to the effective income tax rate in the period of resolution. It is reasonably likely that $0.1 million of gross unrecognized tax benefits will reverse within the next twelve months due to lapse of the applicable statute of limitations or exam closures. The number of years with open tax audits varies depending on the tax jurisdiction. CRA’s major taxing jurisdiction is the United States where CRA is no longer subject to U.S. federal examinations by the Internal Revenue Service for years before fiscal 2016. Within the significant states where CRA is subject to income tax, CRA is no longer subject to examinations by state taxing authorities before fiscal 2015. 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 2018. During fiscal 2019, an examination by the German Tax Authority for fiscal years 2014-2016 commenced. 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 and other basis differences that may exist from its foreign subsidiaries as of December 28, 2019 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. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 28, 2019 | |
Share-Based Compensation | |
Share-Based Compensation | 9. Share‑Based Compensation CRA recorded approximately $3.5 million, $4.8 million, and $6.6 million of compensation expense for fiscal 2019, fiscal 2018, and fiscal 2017, 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, directors, and non-employees based on their respective estimated grant date fair values. Performance-vesting restricted stock units are expensed using the graded acceleration method. Share-based Compensation Plans. As of December 28, 2019, CRA’s active equity-based compensation plans consist of its Amended and Restated 2006 Equity Incentive Plan, as amended (the “2006 Equity Plan”), and its 1998 Employee Stock Purchase Plan (the “1998 ESPP”), a tax-qualified plan under Section 423 of the Internal Revenue Code. During fiscal 2009, CRA implemented a long-term incentive program, or “LTIP,” as a framework for grants made under the 2006 Equity Plan to its senior corporate leaders, practice leaders and key revenue generators. Under the LTIP, participants have received a mixture of stock options, time-vesting restricted stock units, and performance-vesting restricted stock units. In December 2016, CRA’s Board of Directors amended CRA’s Cash Incentive Plan to facilitate the grant to LTIP participants of service-based and performance-based cash awards as a component of the LTIP. The LTIP is designed to reward CRA’s senior corporate leaders, practice leaders and key revenue generators and provide them with the opportunity to share in the long-term growth of CRA. 2006 Equity Plan: Maximum and Available Shares. The 2006 Equity Plan authorizes the grant of a variety of incentive and performance awards to CRA’s directors, employees and non-employee experts, including stock options, shares of restricted stock, restricted stock units, and other equity awards. The shares available for grant under the 2006 Equity Plan as of December 28, 2019 was 623,212. Stock Options. A summary of option activity during fiscal 2019 from the 2006 Equity Plan is as follows. Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value (in thousands) Outstanding at December 29, 2018 585,981 $ 25.48 $ 9,286 Fiscal 2019: Granted — — Exercised (140,513) 22.85 $ 3,659 Expired — — Forfeited (979) 21.52 $ 28 Outstanding at December 28, 2019 444,489 $ 26.31 $ 12,115 Options exercisable at December 28, 2019 408,277 $ 24.84 $ 11,732 Vested or expected to vest at December 28, 2019 444,281 $ 26.31 $ 12,113 The weighted average fair market value using the Black‑Scholes option‑pricing model of the stock options granted under the 2006 Equity Incentive Plan in fiscal 2018 and fiscal 2017 was $19.96 and $11.54, respectively. There were no stock options granted in fiscal 2019. The fair market value of the stock options at the date of grant were estimated using the Black‑Scholes option‑pricing model with the following weighted average assumptions: Fiscal Fiscal Year Year 2018 2017 Risk-free interest rate 2.8 % 2.1 % Expected volatility 39 % 32 % Expected dividend yield 1.7 % 1.5 % Forfeiture rate 0.4 % 0.4 % Weighted average expected life (in years) 10.00 4.49 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 determined based on CRA’s annualized dividend rate per share, as a percentage of average market price of the common stock, on each dividend payment date. The forfeiture rate used was based upon historical experience. CRA believes its historical experience is an appropriate indicator of future forfeitures. The aggregate intrinsic value of stock options exercised in fiscal 2019, fiscal 2018, and fiscal 2017 was approximately $3.7 million, $3.0 million, and $5.4 million, respectively. The following table provides a roll-forward of the outstanding non-vested stock options over fiscal 2019: Options Weighted-Average Number of Grant Date Shares Fair Value Non-vested at December 29, 2018 116,284 $ 10.64 Granted — — Vested (79,093) 8.77 Forfeited (979) 7.37 Non-vested at December 28, 2019 36,212 $ 14.80 The total fair value of stock options that vested during fiscal 2019, fiscal 2018, and fiscal 2017 was $0.7 million, $1.1 million, and $1.5 million, respectively. As of December 28, 2019, there was $0.5 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 2.5 years. Options granted during or prior to fiscal 2016 expire on the seventh anniversary of the date of grant. Options granted during fiscal 2017 and fiscal 2018 expire on the tenth anniversary of the date of grant. Restricted Stock. CRA grants shares of restricted stock, which are subject to the execution of a restricted stock agreement, under its 2006 Equity Incentive Plan. Generally, shares of restricted stock 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 shares of restricted stock as of December 28, 2019 was $0.9 million, which is expected to be recognized over a weighted-average period of 2.6 years. The forfeiture rate of 0.9% used for shares of restricted stock was based upon historical experience. CRA believes its historical experience is an appropriate indicator of future forfeitures. The following table provides a roll-forward of the shares of restricted stock under the 2006 Equity Incentive Plan over fiscal 2019: Shares of Restricted Stock Weighted-Average Number of Grant Date Shares Fair Value Non-vested at December 29, 2018 36,006 $ 35.41 Granted 11,772 38.21 Vested (16,255) 31.14 Forfeited — — Non-vested at December 28, 2019 31,523 $ 38.66 The total fair value of shares of restricted stock that vested during fiscal 2019, fiscal 2018, and fiscal 2017 was $0.5 million, $0.6 million, and $0.6 million, respectively. Time-Vesting RSUs. CRA grants time-vesting restricted stock units, which are subject to the execution of a restricted stock unit agreement, under its 2006 Equity Incentive Plan. Generally, 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 time-vesting restricted stock units as of December 28, 2019 was $2.4 million, which is expected to be recognized over a weighted-average period of 3.1 years. The forfeiture rate of 0.9% used for time-vesting restricted stock units was based upon historical experience. CRA believes its historical experience is an appropriate indicator of future forfeitures. The following table provides a roll-forward of the time-vesting restricted stock units under the 2006 Equity Incentive Plan over fiscal 2019: Time-Vesting Restricted Stock Units Weighted-Average Number of Grant Date Units Fair Value Non-vested at December 29, 2018 79,759 $ 33.64 Granted 31,226 46.20 Vested (45,858) 27.91 Forfeited (489) 21.52 Non-vested at December 28, 2019 64,638 $ 43.87 The total fair value of time-vesting restricted stock units that vested during fiscal 2019, fiscal 2018, and fiscal 2017 was $1.3 million, $1.7 million, and $2.0 million, respectively. Performance-Vesting RSUs. CRA grants performance-vesting restricted stock units (“PRSUs”), which are subject to the execution of a restricted stock unit agreement, under its 2006 Equity Incentive Plan. Generally, achievement of performance measures for PRSUs are based on a two-year performance period, after which the units determined based on this achievement will vest three-fourths in the first year following the performance period and one-fourth on the fourth anniversary of the date of grant. The number of units determined based on the achievement of a PRSUs performance measures generally ranges from 50% to 125% of the PRSU’s target number of units. In accordance with ASC Topic 718, for PRSUs 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. The following table provides a roll-forward of the performance-vesting restricted stock units under the 2006 Equity Incentive Plan over fiscal 2019. For purposes of this table, granted PRSUs are counted based on the maximum number of units that could vest upon achievement of the PRSUs’ performance conditions which, for all periods presented, equaled 125% of the PRSU’s target number of units. Performance-Vesting Restricted Stock Units Weighted-Average Grant Date Number of Units Fair Value Non-vested at December 29, 2018 121,950 $ 32.92 Granted 29,234 51.31 Vested (65,976) 25.27 Forfeited (3,058) 28.77 Non-vested at December 28, 2019 82,150 $ 45.88 1998 ESPP. In fiscal 1998, CRA adopted the 1998 ESPP, a tax-qualified plan under Section 423 of the Internal Revenue Code. The 1998 ESPP 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 plan. In fiscal 2019, fiscal 2018, and fiscal 2017, there were no offering periods under this plan and no shares were issued. As of December 28, 2019, 211,777 shares are available for grant under the 1998 ESPP. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 28, 2019 | |
Net Income Per Share | |
Net Income Per Share | 10. Net Income Per Share CRA calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. CRA’s participating securities consist of unvested share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. Net earnings allocable to these participating securities were not material for fiscal 2019, fiscal 2018, or fiscal 2017. The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Net income attributable to CRA, as reported $ 20,747 $ 22,492 $ 7,624 Less: net income attributable to participating shares 55 108 51 Net income available to common shareholders $ 20,692 $ 22,384 $ 7,573 The following table presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 Basic weighted average shares outstanding 7,866 8,107 8,292 Common stock equivalents: Stock options and restricted stock units 301 463 205 Diluted weighted average shares outstanding 8,167 8,570 8,497 For fiscal 2019, fiscal 2018, and fiscal 2017, the anti-dilutive share-based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding amounted to 62,367, 29,612, and 75,004 shares, respectively. These share-based awards were anti-dilutive because their exercise price exceeded the average market price over the respective period. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 28, 2019 | |
Business Acquisitions | |
Business Acquisitions | 11. Business Acquisitions On January 31, 2017, CRA acquired substantially all of the assets and assumed certain liabilities of C1 for initial consideration comprised of cash and CRA restricted common stock. The asset purchase agreement provided for additional purchase consideration to be paid upon the conclusion of a four-year measurement period following the transaction in the form of an earnout, if specific performance targets are met. These earnout payments are payable in cash and CRA restricted common stock. The fair value of this obligation was measured as of the acquisition date and accounted for as a component of the purchase consideration, any adjustments to this initial valuation in future accounting periods will be reported as an adjustment to net income. C1 provides management consulting services in the life sciences industry, and has built a reputation for its specialty consulting services. The purpose of acquiring C1 was to assist CRA in expanding its geographical presence in the western part of the United States and Europe, servicing CRA’s existing life sciences customers more efficiently, and providing opportunities to engage with new clients in both the United States and European markets. C1’s results of operations have been included in the accompanying consolidated statements of operations from the date of acquisition. Transaction related costs, which are principally legal and accounting service fees, amounted to $0.9 million for the year ended December 30, 2017 and are included in selling, general and administrative expenses on the consolidated statement of operations. |
GNU Interest
GNU Interest | 12 Months Ended |
Dec. 28, 2019 | |
GNU Interest | |
GNU Interest | 12. GNU Interest Prior to liquidation of GNU on December 18, 2018, CRA’s ownership interest in GNU was 55.89%. GNU's financial results had been consolidated with CRA, and the portion of GNU's results allocable to its other owners was shown as “noncontrolling interest.” GNU's reporting schedule and fiscal year differed from CRA's. The reporting lag did not have a significant impact on CRA's consolidated statements of operations or financial condition. In fiscal 2016, a buyer acquired substantially all of the business assets and assumed substantially all of the liabilities of GNU. A portion of the acquisition price was paid at closing, whereas the remaining amount of $0.3 million was paid in fiscal 2017, of which $0.2 million was attributed to CRA. Subsequently, GNU was dissolved, and CRA received a partial distribution of $0.6 million in fiscal 2017. Upon liquidation of GNU during fiscal 2018, CRA recognized a gain of $0.3 million. |
Credit Agreement
Credit Agreement | 12 Months Ended |
Dec. 28, 2019 | |
Credit Agreement | |
Credit Agreement | 13. Credit Agreement CRA is party to an amended and restated credit agreement that provides CRA with a $125.0 million revolving credit facility and a $15.0 million sublimit for the issuance of letters of credit. CRA may use the proceeds of the revolving credit facility to provide working capital and for other general corporate purposes. CRA may repay any borrowings under the revolving credit facility at any time, but must repay all borrowings no later than October 24, 2022. There were no borrowings outstanding under this revolving credit facility as of December 28, 2019 or December 29, 2018. As of December 28, 2019, the amount available under this revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $4.4 million and are in support of minimum future lease payments under leases for permanent office space. Borrowings under the revolving credit facility bear interest at a rate per annum, at CRA’s election, of either (i) the adjusted base rate, as defined in the credit agreement, plus an applicable margin, which varies between 0.25% and 1.25% 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 1.25% and 2.25% 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 0.20% and 0.35% depending on its total leverage ratio. Borrowings under the revolving 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 $32.9 million and $29.1 million in net assets as of December 28, 2019 and December 29, 2018, respectively. 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 revolving 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 2.5:1.0 and to comply with a consolidated debt to adjusted consolidated EBITDA ratio of not more than 3.0:1.0. 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 December 28, 2019, CRA was in compliance with the covenants of its credit agreement. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | 14. Employee Benefit Plans CRA maintains a qualified defined‑contribution plan under Section 401(k) of the Internal Revenue Code, covering all regular U.S. employees who meet specified age, hour, 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. CRA also has defined-contribution plans covering employees in Canada (the “Canada plan”) and the United Kingdom (the “United Kingdom plan”). Company contributions to the Canada plan are made at the discretion of CRA, while Company contributions to the United Kingdom plan are made in accordance with the minimum required contributions per the United Kingdom auto-enrolment legislation. Company contributions under these plans amounted to approximately $3.9 million, $3.5 million, and $3.1 million for fiscal 2019, fiscal 2018, and fiscal 2017, respectively. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 28, 2019 | |
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 $9.3 million, $8.8 million, and $13.2 million in fiscal 2019, fiscal 2018, and fiscal 2017, respectively. These payments were to exclusive non-employee experts for consulting services performed for CRA’s clients in the ordinary course of business. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 16. Commitments and Contingencies Commitments CRA is party to standby letters of credit with its bank in support of the minimum future lease payments under leases for permanent office space amounting to $4.4 million as of December 28, 2019. Contingencies CRA is subject to legal actions arising in the ordinary course of business. In management’s opinion, CRA believes it has adequate legal defenses and/or insurance coverage with respect to the eventuality of such actions. CRA does not believe any settlement or judgment relating to any pending legal action would materially affect its financial position or results of operations. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | 17. Quarterly Financial Data (Unaudited) Quarter Ended March 30, June 29, September 28, December 28, 2019 2019 2019 2019 (In thousands, except per share data) Revenues $ 105,849 $ 110,573 $ 115,686 $ 119,262 Income from operations 6,855 8,311 6,905 7,277 Income before provision for income taxes 6,100 7,947 6,691 6,059 Net income $ 4,665 $ 5,580 $ 5,739 $ 4,763 Basic net income per share $ 0.58 $ 0.70 $ 0.74 $ 0.61 Diluted net income per share $ 0.56 $ 0.68 $ 0.71 $ 0.59 Quarter Ended March 31, June 30, September 29 , December 29, 2018 2018 2018 2018 (In thousands, except per share data) Revenues $ 99,476 $ 105,538 $ 103,871 $ 108,763 Income from operations 6,204 9,661 5,225 7,845 Income before provision for income taxes 5,926 9,737 4,939 8,331 Net income 4,886 6,839 3,908 6,839 Net loss attributable to noncontrolling interest, net of tax — — — 20 Net income attributable to CRA International, Inc. $ 4,886 $ 6,839 $ 3,908 $ 6,859 Basic net income per share $ 0.59 $ 0.84 $ 0.48 $ 0.85 Diluted net income per share $ 0.57 $ 0.79 $ 0.46 $ 0.81 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 28, 2019 | |
Subsequent Events | |
Subsequent Events | 18. Subsequent Events Subsequent to December 28, 2019, CRA borrowed $30.0 million on its revolving line of credit. On February 7, 2020, CRA’s Board of Directors authorized the repurchase of an additional $20.0 million of shares of CRA’s common stock under its existing share repurchase program. On February 27, 2020, CRA announced that its Board of Directors declared a quarterly cash dividend of $0.23 per common share, payable on March 20, 2020 to shareholders of record as of March 10, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Summary of Significant Accounting Policies | |
Description of Business | Description of Business CRA International, Inc. (“CRA or the “Company”) 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. CRA operates its business under its registered trade name, Charles River Associates. |
Fiscal Year and Quarters | Fiscal Year and Quarters 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 2019, fiscal 2018, and fiscal 2017 were 52-week years. CRA’s fiscal quarter ends are determined as the last Saturday nearest the respective calendar quarter end. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of CRA International, Inc. and its majority-owned subsidiaries (collectively the ‘Company’) which require consolidation, after the elimination of intercompany accounts and transactions. In addition, as more fully explained in note 12, the consolidated financial statements include CRA’s interest in GNU123 Liquidating Corporation (‘GNU’). The Company’s fiscal year ends on the Saturday nearest to December 31. There were 52 weeks in each of the fiscal years 2019, 2018 and 2017. Certain prior year amounts have been reclassified to conform to current year presentation. |
Estimates | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United State of America (“U.S. GAAP”) requires management to make significant estimates and judgments that affect the reported amounts of assets and liabilities, as well as the related 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, allowances for accounts receivable and unbilled services, revenue recognition on fixed price contracts, variable consideration to be included in the transaction price of revenue contracts, depreciation of property and equipment, measurement of operating lease right-of-use (“ROU”) assets and liabilities, share-based compensation, valuation of the contingent consideration liabilities, valuation of acquired intangible assets, impairment of long-lived assets, goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued incentive compensation, and certain 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents As of December 28, 2019, CRA's cash accounts were concentrated at two financial institutions, which potentially exposes CRA to credit risks. The financial institutions both have short-term credit ratings 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 institutions, and its cash on deposit is fully liquid. CRA continually monitors the credit ratings of the institutions. Cash equivalents consist principally of money market funds with maturities of three months or less when purchased. |
Foreign Currency Translation | Foreign Currency Translation Asset and liability 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 reporting period. The resulting translation adjustments are recorded in shareholders’ equity as a component of accumulated other comprehensive income (loss). Foreign currency transactions are remeasured at current exchanges rates, with adjustments recorded in the statement of operations. The effect of transaction gains and losses recorded in income before provision for income taxes amounted to losses of $1.3 million for fiscal 2019, gains of $0.4 million for fiscal 2018, and losses of $0.4 million for fiscal 2017. |
Revenue Recognition and Allowances for Accounts Receivable and Unbilled Services | Revenue Recognition and Allowances for Accounts Receivable and Unbilled Services On December 31, 2017, CRA adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) using the modified retrospective method for all contracts not completed as of the date of adoption. Under ASC 606, revenue is recognized when CRA satisfies a performance obligation by transferring services promised in a contract to a client in an amount that reflects the consideration that CRA expects to receive in exchange for those services. Performance obligations in CRA’s contracts represent distinct or separate service streams that CRA provides to clients Revenue contracts with clients are evaluated based on the five-step model under ASC 606: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to separate performance obligations; and (5) recognize revenues when (or as) each performance obligation is satisfied. If, at the outset of an arrangement, CRA determines that an enforceable contract does not exist, revenues are deferred until all criteria for an enforceable contract are met. CRA derives substantially all of its revenues from the performance of professional services for its clients. The contracts that CRA enters into and operates under specify whether the engagement will be billed on a time‑and‑materials basis or a fixed‑price basis. These engagements generally last three to six months, although some engagements can be much longer in duration. Each contract must be approved by a vice president. · Time-and-materials arrangements require the client to pay based on the number of hours worked at contractually agreed-upon hourly rates. Revenues are recognized from these arrangements based on hours incurred and contracted rates based a right-to-payment for services completed to date. When a time-and-materials arrangement has a “cap” or “limit” amount, revenue is recognized up to the cap or limit amount specified by the client, based on the efforts or hours incurred and expenses incurred. Thereafter, revenue is reserved pending an amendment of the cap or limit. · Fixed-price arrangements require the client to pay a contractually agreed-upon fee in exchange for a pre-established set of professional services. Fees are based on estimates of the costs and timing for completing a performance obligation. Under fixed-price arrangements, revenues are generally recognized using a proportional performance method, which is based on the ratio of costs incurred to the total estimated costs for completing a performance obligation. CRA’s fixed-price arrangements generally have a single performance obligation. For arrangements that contain multiple performance obligations, the fixed price is allocated based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. If the standalone selling price is not observable through past transactions, CRA estimates the standalone selling price considering all available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Variable consideration to be included in the transaction price is estimated based on the most likely amount CRA expects to be entitled to if it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration are based on historical realization rates. Revenues from CRA’s consulting services are recorded at the net transaction price, which includes estimates of variable consideration for which reserves are established. These variable consideration reserves, which are based on actual price concessions and those expected to be extended to CRA clients, are classified as reductions of accounts receivable and unbilled services. Specific reserves for accounts receivable and unbilled services are a component of variable consideration. Actual amounts of consideration ultimately received may differ from CRA’s estimates. If actual results in the future vary from its estimates, CRA adjusts these estimates, which would affect net revenue and earnings in the period such variances become known. Reimbursable expenses, including those relating to travel, out-of-pocket expenses, outside consultants and other outside service costs, are generally included in revenues, and an equivalent amount of reimbursable expenses is included in costs of services in the period in which the expense is incurred. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. CRA usually issues invoices to its customers on a monthly basis, and payment is due upon receipt of the invoice. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in ASC 606, CRA does not assess whether a significant financing component exists if the period between when it performs its obligations under the contract and when the customer pays is one year or less. None of CRA’s contracts contained a significant financing component as of December 28, 2019 or December 29, 2018. Differences between the timing of billing and the recognition of revenue are recognized as either unbilled services or deferred revenues in the accompanying consolidated balance sheets. Revenues recognized for services performed but not yet billed to clients are recorded as unbilled services. Client prepayments and retainers are classified as deferred revenues and recognized over future periods as earned in accordance with the applicable retention agreement. CRA maintains accounts receivable and unbilled services allowances for estimated losses resulting from clients’ failure to make required payments. These allowances are determined for specific customer accounts and are based on the financial condition of CRA’s customer and related facts and circumstances. Expenses associated with these allowances are reported as a component of selling, general and administrative expenses. Prior to adopting ASC Topic 606 on December 31, 2017, CRA followed the revenue recognition guidance as issued in ASC Topic 605, Revenue Recognition ("ASC 605"). Under this guidance, CRA would recognize substantially all of its revenues under written service contracts when the fee was fixed and determinable, as the services were provided, and only in those situations where collection from the client was reasonably assured. In certain cases CRA provided services to its clients without sufficient contractual documentation, or fees were tied to performance-based criteria, which required the Company to defer revenue in accordance with ASC 605. In these cases, these amounts were fully reserved, and the reserve was reduced as cash was received. CRA recognized 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 . In general, project costs were classified in costs of services and were 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 the Company by its non-employee experts. Revenues from time-and-materials service contracts were recognized as the services were provided based upon hours worked and contractually agreed-upon hourly rates, as well as indirect fees based upon hours worked. Under ASC 605, revenues from a majority of CRA's fixed-price engagements were 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. The proportional performance method was used for fixed-price contracts because reasonably dependable estimates of the revenues and costs applicable to various stages of a contract could be made, based on historical experience and the terms set forth in the contract, and were indicative of the level of benefit provided to CRA's clients. CRA's management maintained contact with project managers to discuss the status of the projects and, for fixed-price engagements, management was updated on the budgeted costs and resources required to complete the project. These budgets were then used to calculate proportional performance ratios and to estimate the anticipated income or loss on the project. Provisions for estimated losses on contracts were made during the period in which such losses become probable and could be reasonably estimated. Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants and other reimbursable expenses. |
Deferred Compensation | Deferred Compensation CRA accounts for performance-based and service-based cash awards using a an accrual method where changes in estimates are accounted for prospectively over the remaining service period. To the extent the terms of an award attribute all or a portion of the expected future benefits to a period of service greater than one year, the cost of those benefits is accrued over the employee’s or non-employee's requisite service period in a systematic and rational manner, usually on a straight-line basis. The requisite service period typically ranges from three to six years starting with the employee’s employment date or non-employee's affiliation date. For an employee or non-employee consultant currently affiliated with CRA, the requisite service period generally begins at the start of the award’s measurement period. A recipient of such an award is expected to be employed by or affiliated with CRA for the entire measurement period. If the recipient’s employment or affiliation with CRA terminates during the measurement period, the amount paid will be determined in accordance with the recipient’s specific contract provisions. The terms of award agreements may include the achievement of minimum required financial targets over the award’s measurement period. These financial targets may include a measure of revenue generation, profitability or both. The amount of the liability of the award agreements is estimated based on internally generated financial projections. The process of projecting these financial targets over the measurement period is highly subjective and requires significant judgment and estimates. There can be no assurance that the estimates and assumptions used in preparing these projections will prove to be accurate. |
Leases | Leases CRA is a lessee under certain operating leases for office space and equipment. Prior to adopting ASC Topic 842, Leases (“ASC 842”) on December 30, 2018, CRA followed the lease accounting guidance as issued in ASC Topic 840, Leases (“ASC 840”). Under ASC 840, CRA classified its leases as operating or capital leases based on evaluation of certain criteria of the lease agreement. For leases that contained rent escalations or rent holidays, CRA recorded the total rent expense during the lease term on a straight-line basis over the term of the lease and recorded the difference between the rents paid and the straight-line rent expense as deferred rent on the balance sheet. Any tenant improvement allowances received from the lessor were recorded as a reduction to rent expense over the term of the lease. ASC 842, which CRA adopted on December 30, 2018, requires lessees to recognize leases on the balance sheet as a lease liability with a corresponding ROU asset, subject to certain permitted accounting policy elections. Under ASC 842, CRA determines whether a contract is a lease at the inception of the contract. This determination is based on whether the contract provides CRA the right to control the use of a physically distinct asset or substantially all of the capacity of an asset. Leases with an initial noncancelable term of twelve months or less that do not include an option to purchase the underlying asset that CRA is reasonably certain to exercise are classified as short-term leases. CRA has elected as an accounting policy to exclude from the consolidated balance sheets the ROU assets and lease liabilities related to short-term leases. CRA recognizes rent expense for its operating leases on a straight-line basis over the term of the lease. Many of CRA’s equipment leases are short-term or cancellable with notice. CRA’s office space leases have remaining lease terms between one and approximately twelve years, many of which include one or more options to extend the term for periods of up to five years for each option. Certain leases contain options to terminate the lease early, which may include a penalty for exercising the option. Many of the termination options require notice within a specified period, after which the option is no longer available to CRA if not exercised. The extension options and termination options may be exercised at CRA’s sole discretion. CRA does not consider in the measurement of ROU assets and lease liabilities an option to extend or terminate a lease if CRA is not reasonably certain to exercise the option. As of December 28, 2019, CRA has not included any options to extend or terminate in its measurement of ROU assets or lease liabilities. Certain of CRA’s leases include covenants that oblige CRA, at its sole expense, to repair and maintain the leased asset periodically during the lease term. CRA is not a party to any leases that contain residual value guarantees nor is CRA a party to any leases that provide an option to purchase the underlying asset. Many of CRA’s office space leases include fixed and variable payments. Variable payments relate to real estate taxes, sales or use taxes, insurance, operating expenses, and common area maintenance, which are usually billed at actual amounts incurred proportionate to CRA’s rented square feet of the building. Variable payments that do not depend on an index or rate are expensed by CRA as they are incurred and are not included in the measurement of the lease liability. Many of CRA’s leases contain both lease and non-lease components. For office space leases, the Company has elected as an accounting policy to account for lease and nonlease components as a single component. For equipment leases, fixed and variable payments are allocated to each component relative to observable or estimated standalone prices. CRA measures its variable lease costs as the portion of variable payments that are allocated to lease components. CRA measures its lease liability for each leased asset as the present value of lease payments, as defined in ASC 842, allocated to the lease component, discounted using an incremental borrowing rate specific to the underlying asset. CRA’s ROU assets are equal to the lease liability, adjusted for lease incentives received, including tenant improvement allowances, and payments made to the lessor prior to the lease commencement date. CRA estimates its incremental borrowing rate for each leased asset based on the interest rate CRA would incur to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment. |
Goodwill | Goodwill In accordance with ASC Topic 350, Intangibles—Goodwill and Other (“ASC Topic 350”), goodwill and intangible assets with indefinite lives are not subject to amortization but are monitored annually as of October 15th 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 CRA's fiscal 2019 goodwill impairment analysis, it operates as one reporting unit, which is its consulting services. Under ASC Topic 350, in performing the goodwill impairment testing and measurement process, CRA compares the estimated value of each of its reporting units to its net book value to identify potential impairment. CRA estimates the fair value of its consulting business reporting unit utilizing its market capitalization, plus an appropriate control premium. Market capitalization is determined by multiplying CRA’s shares outstanding on the test date by the market price of its common stock on that date. CRA determines the control premium utilizing data from publicly available premium studies for the trailing four quarters for public company transactions in its industry group. If the estimated fair value of a reporting unit is less than its net book value, an impairment charge would be recorded in CRA’s consolidated statement of operations. |
Intangible Assets | Intangible Assets Intangible assets are comprised of non-competition agreements and customer relationship intangibles, which are separable from goodwill and have determinable useful lives, are valued separately and amortized over their estimated useful lives based on the pattern in which the economic benefit of the asset is expected to be consumed, if reliably determinable. Non-competition agreements are amortized on a straight-line basis over their useful lives, which range between five and nine years. Customer relationship intangible assets are amortized on a straight-line basis over periods that range between eight and ten years, which approximates the pattern of economic benefit. |
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. |
Impairment of Long-Lived Assets | Impairment of Long‑Lived Assets CRA reviews the carrying value of its long‑lived assets (primarily property and equipment, intangible assets, and ROU 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, among others, 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. |
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 December 28, 2019 and December 29, 2018 that are measured and recorded in the consolidated financial statements at fair value on a recurring basis (in thousands): December 28, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets or Liabilities Inputs Inputs Level 1 Level 2 Level 3 Assets : Money market mutual funds $ 150 $ — $ — Total Assets $ 150 $ — $ — Liabilities : Contingent consideration liability $ — $ — $ 11,579 Total Liabilities $ — $ — $ 11,579 December 29, 2018 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets or Liabilities Inputs Inputs Level 1 Level 2 Level 3 Assets : Money market mutual funds $ 18,029 $ — $ — Total Assets $ 18,029 $ — $ — Liabilities : Contingent consideration liability $ — $ — $ 6,197 Total Liabilities $ — $ — $ 6,197 The fair value of CRA’s money market mutual fund share holdings is $1.00 per share. The contingent consideration liabilities in the table above are for estimated future contingent consideration payments related to the acquisition of C1 Consulting, LLC, an independent consulting firm, and its wholly-owned subsidiary C1 Associates (collectively, "C1"). The fair value measurement of these liabilities is based on significant inputs not observed in the market and thus represent a Level 3 measurement. The significant unobservable inputs used in the fair value measurements of these contingent consideration liabilities are CRA’s measures of the estimated payouts based on internally generated revenue projections, expected volatility of the revenue projections, and discount rates. The fair value of the contingent consideration was determined using a Monte Carlo simulation. The fair value of these contingent consideration liabilities are reassessed on a quarterly basis by CRA using additional information as it becomes available, and any change in the fair value estimates are recorded in costs of services (exclusive of depreciation and amortization) on the consolidated statements of operations. The contingent consideration is required to be paid prior to the end of the second quarter of fiscal 2021. The following table summarizes the changes in the contingent consideration liabilities over the fiscal year ended December 28, 2019 and the fiscal year ended December 29, 2018 (in thousands): December 28, December 29, 2019 2018 Beginning balance $ 6,197 $ 5,137 Remeasurement of acquisition-related contingent consideration 3,285 (244) Accretion 2,097 1,304 Ending balance $ 11,579 $ 6,197 CRA’s financial instruments, including cash and cash equivalents, accounts receivable, 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. |
Income Taxes | Income Taxes CRA records income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized based on estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. CRA includes in the estimate of deferred tax assets and liabilities an estimate of the realizable benefits from 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. CRA is required to establish a valuation allowance on its deferred tax assets to reflect the likelihood of realization. Significant management judgment is required in determining deferred tax assets and liabilities and any valuation allowance recorded against its net deferred tax assets. The weight of all available evidence is evaluated to determine whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The decision to record a valuation allowance requires varying degrees of judgment based upon the nature of the item giving rise to the deferred tax asset. If, after a valuation allowance is recorded, it is determined that CRA would be able to realize deferred tax assets in the future in excess of their net recorded amount, CRA would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. CRA’s effective tax rate may vary from period to period based on changes in estimated taxable income or loss; changes to the valuation allowance; changes to federal, state, or foreign tax laws; future expansion into areas with varying country, state, and local income tax rates; deductibility of certain costs; uncertain tax positions; expenses by jurisdiction; and results of acquisitions or dispositions. The calculation of CRA’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different tax jurisdictions. CRA is periodically reviewed by domestic and foreign tax authorities. These reviews include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. CRA accounts for uncertainties in income tax positions in accordance with ASC Topic 740, Income Taxes (“ASC 740”). The number of years with open tax audits varies depending on the tax jurisdiction. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Tax Act") was signed into law. The Tax Act subjects a U.S. shareholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. As such, CRA has included its GILTI provision associated with current-year operations solely within the estimated annual effective tax rate ("EAETR") and has not provided additional GILTI on deferred items. |
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. For those awards that are deemed probable of vesting, CRA recognizes the estimated fair value 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 time-vesting restricted stock units awarded to employees, CRA estimates share-based compensation cost at the grant date based on the fair value of the restricted stock units and awards and recognizes the cost for awards that are probable of vesting over the requisite service period on a straight-line basis. Performance-vesting restricted stock units are expensed using the graded acceleration method. For share‑based awards granted to non‑employee experts, CRA accounts for the compensation under the fair value recognition requirements in accordance with ASC Topic 718 and ASU 2018-07, and recognizes the cost over the related vesting period. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share CRA computes basic net income or loss per share by dividing net income or loss by the weighted-average number of shares outstanding. CRA computes diluted net income or loss per share by dividing net income or loss by the sum of the weighted-average number of shares determined from the basic earnings per common share computation and the number of common stock equivalents that would have a dilutive effect. To the extent that there is a net loss, CRA assumes all common stock equivalents to be anti-dilutive, and they are excluded from diluted weighted-average shares outstanding. CRA determines common stock equivalent shares outstanding in accordance with the treasury stock method. In those years in which CRA has both net income and participating securities, CRA computes basic net income per share utilizing the two-class method earnings allocation formula to determine earnings per share for each class of stock according to dividends and participation rights in undistributed earnings. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding. CRA's participating securities consist of unvested share-based payment awards that contain a nonforfeitable right to receive dividends. |
Recent Accounting Standards Adopted and Not Yet Adopted | Recent Accounting Standards Adopted Revenue from Contracts with Customers CRA adopted ASC 606 on December 31, 2017, using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for fiscal 2018 reflect the application of ASC 606 guidance, while the reported results for fiscal 2017 were prepared under the guidance of ASC 605. The cumulative effect of applying ASC 606 to all contracts with customers that were not completed as of December 30, 2017 amounted to $0.4 million. The cumulative effect adjustment resulted in an increase to CRA's fiscal 2018 opening balance of retained earnings of $0.4 million, net of tax. Prior periods were not retrospectively adjusted. For the fiscal year ended December 29, 2018, items in the consolidated statements of operations, consolidated statements of comprehensive income, and consolidated statements of cash flows recognized under ASC 606 are not materially different from what would have been recognized under ASC 605. In addition, balances as of December 29, 2018 on the consolidated balance sheets as measured under ASC 606 are not materially different from balances if measured under ASC 605. Leases (Topic 842) CRA adopted ASC 842, which supersedes ASC 840, on December 30, 2018 using the modified retrospective transition method. The cumulative effect of the transition adjustments was recognized as of the date of adoption. CRA elected the package of practical expedients provided by ASC 842, which allowed CRA to forgo reassessing the following upon adoption of the new standard: (1) whether contracts contain leases for any expired or existing contracts, (2) the lease classification for any expired or existing leases, and (3) initial direct costs for any existing or expired leases. In addition, CRA elected an accounting policy to exclude from the consolidated balance sheets the ROU assets and lease liabilities related to short-term leases, which are those leases with an initial lease term of twelve months or less that do not include an option to purchase the underlying asset that CRA is reasonably certain to exercise. The reported results for 2019 reflect the application of ASC 842 guidance, whereas comparative periods and their respective disclosures prior to the adoption of ASC 842 are presented using the legacy guidance of ASC 840. As a result of adopting the new standard, CRA recognized ROU assets of $82.3 million and lease liabilities of $106.8 million. The difference between the amount of ROU assets and lease liabilities recognized was an adjustment to deferred rent. There was no change to net deferred tax assets as a result of CRA’s adoption of ASC 842. The adoption of ASC 842 did not have a material impact on CRA’s results of operations or cash flows, nor did it have an impact on any of CRA’s existing debt covenants. Improvements to Employee Share-Based Payment Accounting CRA adopted ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ ASU 2016-09”) on January 1, 2017. ASU 2016-09 requires all of the tax effects related to share-based payments to be recorded through the income statement. The pronouncement also allows for the option of estimating awards expected to vest or accounting for forfeitures when they occur. In the statement of cash flows, cash paid by employers when withholding shares for tax withholding purposes should be classified as a financing activity whereas cash flows resulting from excess tax benefits should be reported in operating activities. The adoption of ASU 2016-09 resulted in the recognition of an immaterial tax benefit to retained earnings as of that date. CRA had traditionally classified employee taxes paid through employer share withholdings as financing activities, therefore no further adjustment was necessary. CRA has classified the excess tax benefits from share-based compensation as operating activities on a prospective basis beginning in the quarter ended April 1, 2017. Additionally, CRA did not make any changes to its accounting for forfeitures and continues to estimate forfeitures based on historical experience. Statement of Cash Flows (Topic 230): Restricted Cash CRA adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), on December 31, 2017. ASU 2016-18 amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The new standard requires cash and cash equivalents balances on the statement of cash flows to include restricted cash and cash equivalent balances. ASU 2016-18 requires a company to provide appropriate disclosures about its accounting policies pertaining to restricted cash in accordance with GAAP. Additionally, changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, and restricted cash and restricted cash equivalents are not to be presented as cash flow activities in the statement of cash flows. The adoption of ASU 2016-18 did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures. Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment CRA adopted ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), on December 31, 2017. ASU 2017-04 simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the charge recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment charge, if applicable. The amendments also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The adoption of ASU 2017-04 did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures. Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting CRA adopted ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”), on December 31, 2017. ASU 2017-09 updates guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the amendments, an entity should account for the effects of a modification unless all the following conditions are met. First, the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. Second, the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. Third, the classification of the modified award as an equity instrument or a liability is the same as the classification of the original award immediately before the original award is modified. The adoption of ASU 2017-09 did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures. Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting CRA adopted ASU No. 2018-07, Compensation — Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting (Topic 718) (“ASU 2018-07”) on December 30, 2018. ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this update specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used effectively to provide financing to the issuer or awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers . The new guidance requires a remeasurement of nonemployee awards at fair value as of the adoption date. The adoption of ASU 2018-07 did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures. Recent Accounting Standards Not Yet Adopted Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the methodology that recognizes impairment of financial instruments when losses have been incurred with a methodology that recognizes impairment of financial instruments when losses are expected. The amendment requires entities to use a forward-looking “expected loss” model for most financial instruments, including accounts receivable and loans, that is based on historical information, current information, and reasonable and supportable forecasts. For available-for-sale debt securities with unrealized losses, credit losses will be recognized as an allowance rather than as a reduction in the amortized cost of the debt securities. ASU 2016-13 is effective for the Company for interim and annual periods beginning after December 15, 2019. Adoption of ASU 2016-13 will be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period after adoption. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). ASU 2018-19 changes the required adoption date for nonpublic business entities and clarifies that receivables arising from operating leases are not within the scope of Topic 326. CRA is currently in the process of finalizing its evaluation of the impact of adopting ASU 2016-13. CRA will finalize its evaluation during the first fiscal quarter of 2020. As a result of adopting the new standard, CRA currently estimates that the ASU will not have a material impact on its financial position, results of operations, cash flows, or disclosures on the date of transition. Fair Value Measurements (Topic 820) In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”). The ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements from ASC 820. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurement. The new standard is effective for interim and annual periods beginning after December 15, 2019. Entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. CRA currently estimates that the ASU will not have a material impact on its financial position, results of operations, cash flows, or disclosures on the date of transition. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 clarifies the accounting for implementation costs in a cloud computing arrangement that is a service contract and aligns the requirements for capitalizing those costs with the capitalization requirements for costs incurred to develop or obtain internal-use software. The ASU permits application of the guidance to implementation costs of cloud computing projects either prospectively or retrospectively at the time of transition. The new standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. CRA is currently in the process of finalizing its evaluation of the impact of adopting ASU 2018-15. CRA will finalize its evaluation during the first fiscal quarter of 2020. CRA plans to adopt ASU 2018-15 using the prospective transition approach. As a result of adopting the new standard prospectively, CRA currently estimates that ASU 2018-15 will not have a material impact on its financial position, results of operations, or cash flows on the date of transition. Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies or clarifies accounting for income taxes by changing the following current guidance: accounting for year-to-date losses in interim periods, accounting for tax law changes in interim periods, determining when a deferred tax liability is recognized for foreign subsidiaries that transition to or from being accounted for as equity method investments, application of income tax guidance to franchise taxes that are partially based on income, and making an intra-period allocation in situations where there is a loss in continuing operations and income or gain from other items. ASU 2019-12 also introduces new guidance to evaluate whether a step up in the tax basis of goodwill relates to a business combination or a separate transaction and provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. ASU 2019-12 is effective for CRA for interim and annual periods beginning after December 15, 2020. Early adoption is permitted. CRA is in the process of determining the effects, if any, the adoption of the ASU may have on its financial position, results of operations, cash flows, or disclosures. CRA plans to adopt the amendments during the first fiscal quarter of 2021. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Summary of Significant Accounting Policies | |
Financial instruments that are measured and recorded at fair value on a recurring basis | The following table shows CRA’s financial instruments as of December 28, 2019 and December 29, 2018 that are measured and recorded in the consolidated financial statements at fair value on a recurring basis (in thousands): December 28, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets or Liabilities Inputs Inputs Level 1 Level 2 Level 3 Assets : Money market mutual funds $ 150 $ — $ — Total Assets $ 150 $ — $ — Liabilities : Contingent consideration liability $ — $ — $ 11,579 Total Liabilities $ — $ — $ 11,579 December 29, 2018 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets or Liabilities Inputs Inputs Level 1 Level 2 Level 3 Assets : Money market mutual funds $ 18,029 $ — $ — Total Assets $ 18,029 $ — $ — Liabilities : Contingent consideration liability $ — $ — $ 6,197 Total Liabilities $ — $ — $ 6,197 |
Summary of the changes in the contingent consideration liabilities | The following table summarizes the changes in the contingent consideration liabilities over the fiscal year ended December 28, 2019 and the fiscal year ended December 29, 2018 (in thousands): December 28, December 29, 2019 2018 Beginning balance $ 6,197 $ 5,137 Remeasurement of acquisition-related contingent consideration 3,285 (244) Accretion 2,097 1,304 Ending balance $ 11,579 $ 6,197 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue Recognition | |
Schedule of disaggregation of revenue by type of contract and geographic breakdown | The following table disaggregates CRA’s revenue by major business line and timing of transfer of its consulting services. Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 Type of Contract (52 weeks) (52 weeks) (52 weeks) (1) Consulting services revenues Fixed Price $ 107,344 $ 95,096 $ 93,570 Time-and-materials 344,026 322,552 276,505 Total $ 451,370 $ 417,648 $ 370,075 Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 Geographic Breakdown (52 weeks) (52 weeks) (52 weeks) (1) Consulting services revenues United States $ 357,156 $ 329,678 $ 295,232 United Kingdom 72,169 65,874 53,644 Other 22,045 22,096 21,199 Total $ 451,370 $ 417,648 $ 370,075 (1) As a result of the adoption of ASC 606 on December 31, 2017 under the modified retrospective method, prior period amounts have not been adjusted. |
Schedule of rollforward of the variable consideration and allowances for accounts receivable | A rollforward of the variable consideration and allowances for accounts receivable, which includes an allowance for doubtful accounts of $0.4 million and $0.7 million as of December 28, 2019 and December 29, 2018, respectively, is as follows (in thousands): Fiscal Fiscal Year Year 2019 2018 Balance at beginning of year $ 3,764 $ 5,252 Increases to reserves 2,926 3,675 Amounts written off (2,866) (5,173) Effects of foreign currency translation 14 10 Balance at end of year $ 3,838 $ 3,764 |
Schedule of rollforward of the variable consideration and allowances for unbilled services | A rollforward of the variable consideration and allowances for unbilled services is as follows (in thousands): Fiscal Fiscal Year Year 2019 2018 Balance at beginning of year $ 415 $ 704 Increases to reserves 5,548 4,755 Amounts written off (4,467) (5,042) Effects of foreign currency translation 7 (2) Balance at end of year $ 1,503 $ 415 |
Schedule of bad debt expense | Bad debt expense is reported as a component of selling, general and administrative expenses related to credit-related losses. Bad debt expense is as follows (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Bad debt expense $ 173 $ 1,237 $ — |
Schedule of reimbursable expenses included in revenues | The following expenses are subject to reimbursement (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Reimbursable expenses $ 54,871 $ 48,817 $ 41,465 |
Schedule of opening and closing balances and result of changes in contract liability balance (in thousands) | The following table presents the opening and closing balances of CRA’s contract liability (in thousands): Contract Liability Fiscal Year Fiscal Year 2019 2018 Balance at the beginning of the period $ 5,453 $ 3,287 Balance at the end of the period $ 4,007 $ 5,453 During the year ended December 28, 2019, CRA recognized the following revenue as a result of changes in the contract liability balance or performance obligations satisfied in previous years (in thousands): Year Ended Year Ended December 28, December 29, 2019 2018 (52 weeks) (52 weeks) Amounts included in contract liabilities at the beginning of the year $ 5,155 $ 3,149 Performance obligations satisfied in previous years $ 3,603 $ 3,346 |
Forgivable Loans (Tables)
Forgivable Loans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Forgivable Loans | |
Schedule of forgivable loan activity | Forgivable loan activity for fiscal years 2019 and 2018 is as follows (in thousands): Fiscal Year Fiscal Year 2019 2018 Beginning balance $ 40,294 $ 28,628 Advances 35,166 30,572 Repayments (1,173) (3,396) Reclassification to other assets (1,734) — Amortization (17,700) (15,329) Effects of foreign currency translation 288 (181) Ending balance $ 55,141 $ 40,294 Current portion of forgivable loans $ 6,751 $ 6,104 Non-current portion of forgivable loans $ 48,390 $ 34,190 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases | |
Schedule of lease expenses and lease terms for operating leases | The components of CRA’s lease expenses, which are included in the condensed consolidated income statement, are as follows (in thousands): Year Ended December 28, 2019 (52 weeks) Operating lease cost $ 15,731 Short-term lease cost 511 Variable lease cost 4,461 Total lease cost $ 20,703 December 28, 2019 Weighted average remaining lease term—operating leases 9.6 years Weighted average discount rate—operating leases 3.7 % |
Schedule of maturities of lease liabilities related to office space and equipment | At December 28, 2019, CRA had the following maturities of lease liabilities related to office space and equipment, all of which are under non-cancellable operating leases (in thousands): Operating Lease Fiscal Year Commitments 2020 $ 17,973 2021 19,866 2022 20,030 2023 20,258 2024 20,302 Thereafter 96,225 Total lease payments 194,654 Less: imputed interest (35,256) Total $ 159,398 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for fiscal 2019 and fiscal 2018 are as follows (in thousands): Accumulated Goodwill, impairment Goodwill, gross losses net Balance at December 29, 2018 $ 164,625 $ (76,417) $ 88,208 Effect of foreign currency translation 296 — 296 Balance at December 28, 2019 $ 164,921 $ (76,417) $ 88,504 Accumulated Goodwill, impairment Goodwill, gross losses net Balance at December 30, 2017 $ 165,417 $ (76,417) $ 89,000 Effect of foreign currency translation (792) — (792) Balance at December 29, 2018 $ 164,625 $ (76,417) $ 88,208 |
Schedule of components of acquired identifiable intangible assets | The components of acquired identifiable intangible assets are as follows (in thousands): December 28, December 29, 2019 2018 Non-competition agreements, net of accumulated amortization of $205 and $544, respectively $ 119 $ 180 Customer relationships, net of accumulated amortization of $5,763 and $4,454, respectively 6,357 7,666 Total, net of accumulated amortization of $5,968 and $4,998, respectively $ 6,476 $ 7,846 |
Schedule of expected amortization of intangible assets | Amortization of intangible assets held at December 28, 2019 for the next five fiscal years and thereafter is expected to be as follows (in thousands): Amortization Fiscal Year Expense 2020 $ 1,368 2021 927 2022 827 2023 822 2024 822 Thereafter 1,710 $ 6,476 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property and Equipment | |
Schedule of property and equipment | Property and equipment consist of the following (in thousands): December 28, December 29, 2019 2018 Computer, office equipment and software $ 30,627 $ 27,082 Leasehold improvements 55,471 40,782 Furniture 14,481 11,326 Total cost 100,579 79,190 Accumulated depreciation and amortization (39,284) (31,102) Total property and equipment, net $ 61,295 $ 48,088 |
Schedule Long-lived assets by geographic location | Long-lived assets by geographic location are as follows (in thousands): December 28, December 29, 2019 2018 Long-lived assets (property and equipment, net): United States $ 51,974 $ 39,654 United Kingdom 7,803 6,890 Other 1,518 1,544 Total foreign 9,321 8,434 Total long-lived assets (property and equipment, net) $ 61,295 $ 48,088 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accrued Expenses | |
Schedule of accrued expenses | Accrued expenses consist of the following (in thousands): December 28, December 29, 2019 2018 Compensation and related expenses $ 99,993 $ 90,711 Income taxes payable 430 514 Commissions due to senior consultants 9,961 9,600 Direct project accruals 442 700 Accrued leasehold improvements 2,166 100 Other 8,309 6,608 Total $ 121,301 $ 108,233 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Taxes | |
Schedule of components of income before provision for income taxes | The components of income before provision for income taxes are as follows (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Income before provision for income taxes: U.S. $ 20,778 $ 21,118 $ 12,248 Foreign 6,019 7,815 2,916 Total $ 26,797 $ 28,933 $ 15,164 |
Schedule of components of provision (benefit) for income taxes | The provision (benefit) for income taxes consists of the following (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Currently payable: Federal $ 4,252 $ 4,015 $ 4,515 Foreign 1,119 1,487 493 State 1,838 1,788 804 7,209 7,290 5,812 Deferred: Federal (869) (384) 1,809 Foreign 331 (88) (85) State (621) (357) (73) (1,159) (829) 1,651 $ 6,050 $ 6,461 $ 7,463 |
Schedule of reconciliation of tax rates with the federal statutory rate | A reconciliation of CRA’s tax rates with the federal statutory rate is as follows: Fiscal Year Fiscal Year Fiscal Year 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal income tax benefit 5.5 4.9 3.9 Tax law changes — 0.9 23.7 Share-based compensation (5.0) (6.3) (15.8) Meals & Entertainment Expense 1.7 1.3 3.0 Executive Compensation 1.6 1.0 1.8 Foreign rate differential — — (2.8) Uncertain tax positions (2.5) (1.1) (0.1) Other 0.3 0.6 0.5 22.6 % 22.3 % 49.2 % |
Schedule of components of deferred tax assets (liabilities) | The components of CRA’s deferred tax assets (liabilities) are as follows (in thousands): December 28, December 29, 2019 2018 Deferred tax assets: Accrued compensation and related expense $ 12,842 $ 12,691 Allowance for doubtful accounts 2,023 1,694 Net operating loss carryforwards 335 402 Lease liabilities 39,747 — Deferred rent, accruals, and other 119 5,656 Total gross deferred tax assets 55,066 20,443 Less: valuation allowance — — Total deferred tax assets net of valuation allowance 55,066 20,443 Deferred tax liabilities: Goodwill and other intangible asset amortization 3,650 4,295 Right-of-Use assets 33,012 — Property and equipment 7,690 6,762 Prepaids and other 548 358 Total deferred tax liabilities 44,900 11,415 Net deferred tax assets $ 10,166 $ 9,028 |
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): Fiscal Year Fiscal Year 2019 2018 Balance at beginning of period $ 867 $ 1,031 Additions for tax positions taken during prior years — 132 Reductions for tax positions taken during prior years (25) — Additions for tax positions taken during the current year — — Reductions as a result of a lapse of the applicable statutes of limitations (600) (296) Settlements with tax authorities — — Balance at end of the period $ 242 $ 867 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-Based Compensation | |
Schedule of option activity | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Term Value (in thousands) Outstanding at December 29, 2018 585,981 $ 25.48 $ 9,286 Fiscal 2019: Granted — — Exercised (140,513) 22.85 $ 3,659 Expired — — Forfeited (979) 21.52 $ 28 Outstanding at December 28, 2019 444,489 $ 26.31 $ 12,115 Options exercisable at December 28, 2019 408,277 $ 24.84 $ 11,732 Vested or expected to vest at December 28, 2019 444,281 $ 26.31 $ 12,113 |
Schedule of weighted average assumptions used to estimate the fair market value of the stock options at the date of grant | Fiscal Fiscal Year Year 2018 2017 Risk-free interest rate 2.8 % 2.1 % Expected volatility 39 % 32 % Expected dividend yield 1.7 % 1.5 % Forfeiture rate 0.4 % 0.4 % Weighted average expected life (in years) 10.00 4.49 |
Schedule of roll-forward of the outstanding non-vested stock options | Options Weighted-Average Number of Grant Date Shares Fair Value Non-vested at December 29, 2018 116,284 $ 10.64 Granted — — Vested (79,093) 8.77 Forfeited (979) 7.37 Non-vested at December 28, 2019 36,212 $ 14.80 |
Schedule of roll-forward of the shares of restricted stock | Shares of Restricted Stock Weighted-Average Number of Grant Date Shares Fair Value Non-vested at December 29, 2018 36,006 $ 35.41 Granted 11,772 38.21 Vested (16,255) 31.14 Forfeited — — Non-vested at December 28, 2019 31,523 $ 38.66 |
Schedule of roll-forward of the time-vesting restricted stock units | Time-Vesting Restricted Stock Units Weighted-Average Number of Grant Date Units Fair Value Non-vested at December 29, 2018 79,759 $ 33.64 Granted 31,226 46.20 Vested (45,858) 27.91 Forfeited (489) 21.52 Non-vested at December 28, 2019 64,638 $ 43.87 |
Schedule of outstanding non-vested performance-vesting restricted stock units | Performance-Vesting Restricted Stock Units Weighted-Average Grant Date Number of Units Fair Value Non-vested at December 29, 2018 121,950 $ 32.92 Granted 29,234 51.31 Vested (65,976) 25.27 Forfeited (3,058) 28.77 Non-vested at December 28, 2019 82,150 $ 45.88 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Net Income Per Share | |
Schedule of reconciliation from net income to the net income available to common shareholders | The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 (52 weeks) (52 weeks) (52 weeks) Net income attributable to CRA, as reported $ 20,747 $ 22,492 $ 7,624 Less: net income attributable to participating shares 55 108 51 Net income available to common shareholders $ 20,692 $ 22,384 $ 7,573 |
Schedule of reconciliation of basic to diluted weighted average shares of common stock outstanding | The following table presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands): Year Ended Year Ended Year Ended December 28, December 29, December 30, 2019 2018 2017 Basic weighted average shares outstanding 7,866 8,107 8,292 Common stock equivalents: Stock options and restricted stock units 301 463 205 Diluted weighted average shares outstanding 8,167 8,570 8,497 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Data (Unaudited) | |
Schedule of quarterly financial data (unaudited) | Quarter Ended March 30, June 29, September 28, December 28, 2019 2019 2019 2019 (In thousands, except per share data) Revenues $ 105,849 $ 110,573 $ 115,686 $ 119,262 Income from operations 6,855 8,311 6,905 7,277 Income before provision for income taxes 6,100 7,947 6,691 6,059 Net income $ 4,665 $ 5,580 $ 5,739 $ 4,763 Basic net income per share $ 0.58 $ 0.70 $ 0.74 $ 0.61 Diluted net income per share $ 0.56 $ 0.68 $ 0.71 $ 0.59 Quarter Ended March 31, June 30, September 29 , December 29, 2018 2018 2018 2018 (In thousands, except per share data) Revenues $ 99,476 $ 105,538 $ 103,871 $ 108,763 Income from operations 6,204 9,661 5,225 7,845 Income before provision for income taxes 5,926 9,737 4,939 8,331 Net income 4,886 6,839 3,908 6,839 Net loss attributable to noncontrolling interest, net of tax — — — 20 Net income attributable to CRA International, Inc. $ 4,886 $ 6,839 $ 3,908 $ 6,859 Basic net income per share $ 0.59 $ 0.84 $ 0.48 $ 0.85 Diluted net income per share $ 0.57 $ 0.79 $ 0.46 $ 0.81 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Description of Business and Fiscal Year (Details) | 12 Months Ended | ||
Dec. 28, 2019segmentitem | Dec. 29, 2018item | Dec. 30, 2017item | |
Description of Business | |||
Number of broad areas of consulting services | 2 | ||
Number of business segment | segment | 1 | ||
Fiscal Year | |||
Number of weeks periodically contained in a fiscal year | 53 | ||
Number of weeks in a fiscal year | 52 | 52 | 52 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Foreign Currency Translation | |||
Transaction gains and losses recorded in income before provision for income taxes | $ (1,297) | $ 387 | $ (366) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Recognition and Allowances for Accounts Receivable and Unbilled Services (Details) | 12 Months Ended |
Dec. 28, 2019 | |
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 Accoun_7
Summary of Significant Accounting Policies - Deferred Compensation (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Minimum | |
Deferred Compensation | |
Service period | 3 years |
Maximum | |
Deferred Compensation | |
Service period | 6 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Leases | |
Options to extend | true |
Minimum | |
Leases | |
Remaining lease terms | 1 year |
Maximum | |
Leases | |
Remaining lease terms | 12 years |
Lease extension term | 5 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) | 12 Months Ended |
Dec. 28, 2019segmentitem | |
Goodwill | |
Number of reporting units | segment | 1 |
Number of trailing quarters used to determine the control premium | item | 4 |
Minimum | Non-competition agreements | |
Intangible Assets | |
Estimated useful life (in years) | 5 years |
Minimum | Customer relationships | |
Intangible Assets | |
Estimated useful life (in years) | 8 years |
Maximum | Non-competition agreements | |
Intangible Assets | |
Estimated useful life (in years) | 9 years |
Maximum | Customer relationships | |
Intangible Assets | |
Estimated useful life (in years) | 10 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 28, 2019 | |
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 Accou_11
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | |
Money market mutual funds | ||||
Fair Value of Financial Instruments | ||||
Fair value per share of CRA's money market mutual fund share holdings | $ 1 | |||
Recurring | Level 1 | ||||
Fair Value of Financial Instruments | ||||
Total Assets | $ 150 | $ 18,029 | ||
Recurring | Level 1 | Money market mutual funds | ||||
Fair Value of Financial Instruments | ||||
Cash and cash equivalents | 150 | 18,029 | ||
Recurring | Level 3 | ||||
Fair Value of Financial Instruments | ||||
Contingent consideration liability | $ 11,579 | $ 6,197 | 11,579 | 6,197 |
Total Liabilities | $ 11,579 | $ 6,197 | ||
Summary of changes in contingent consideration liabilities | ||||
Beginning balance | 6,197 | 5,137 | ||
Remeasurement of acquisition-related contingent consideration | 3,285 | (244) | ||
Accretion | 2,097 | 1,304 | ||
Ending balance | $ 11,579 | $ 6,197 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Recent Accounting Standards Adopted (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 30, 2017 | |
Recent Accounting Standards | ||
CRA elected package of practical expedients | true | |
Operating lease right-of-use assets | $ 130,173 | |
Recognize lease liabilities | 159,398 | |
ASC 606 | ||
Recent Accounting Standards | ||
Cumulative effect of a change in accounting principle | $ 366 | |
ASU 2016-02 | ||
Recent Accounting Standards | ||
Operating lease right-of-use assets | 82,300 | |
Recognize lease liabilities | $ 106,800 |
Revenue Recognition - General (
Revenue Recognition - General (Details) | Dec. 28, 2019item |
Revenue Recognition | |
Number of broad lines of consulting services | 2 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue | |||||||||||
Consulting services revenues | $ 119,262 | $ 115,686 | $ 110,573 | $ 105,849 | $ 108,763 | $ 103,871 | $ 105,538 | $ 99,476 | $ 451,370 | $ 417,648 | $ 370,075 |
United States | |||||||||||
Disaggregation of Revenue | |||||||||||
Consulting services revenues | 357,156 | 329,678 | 295,232 | ||||||||
United Kingdom | |||||||||||
Disaggregation of Revenue | |||||||||||
Consulting services revenues | 72,169 | 65,874 | 53,644 | ||||||||
Other | |||||||||||
Disaggregation of Revenue | |||||||||||
Consulting services revenues | 22,045 | 22,096 | 21,199 | ||||||||
Fixed Price | |||||||||||
Disaggregation of Revenue | |||||||||||
Consulting services revenues | 107,344 | 95,096 | 93,570 | ||||||||
Time-and-materials | |||||||||||
Disaggregation of Revenue | |||||||||||
Consulting services revenues | $ 344,026 | $ 322,552 | $ 276,505 |
Revenue Recognition - Reserves
Revenue Recognition - Reserves for Variable Consideration and Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Allowance for doubtful accounts | $ 400 | $ 700 | |
Roll forward of the variable consideration and allowances for accounts receivable | |||
Balance at, beginning of year | 3,764 | 5,252 | |
Increases to reserves | 2,926 | 3,675 | |
Amounts written off | (2,866) | (5,173) | |
Effects of foreign currency translation | 14 | 10 | |
Balance at, end of year | 3,838 | 3,764 | $ 5,252 |
Roll forward of the variable consideration and allowances for unbilled services | |||
Balance at beginning of year | 415 | 704 | |
Increases to reserves | 5,548 | 4,755 | |
Amounts written off | (4,467) | (5,042) | |
Effects of foreign currency translation | (7) | 2 | |
Balance at end of year | 1,503 | 415 | 704 |
Reimbursable expenses | 54,871 | 48,817 | $ 41,465 |
Selling, general and administrative expenses | |||
Roll forward of the variable consideration and allowances for accounts receivable | |||
Amounts written off | $ (173) | $ (1,237) |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Contract liabilities: | |||
Contract liability | $ 4,007 | $ 5,453 | $ 3,287 |
Revenue recognized from: | |||
Amounts included in contract liabilities at the beginning of the period | 5,155 | 3,149 | |
Performance obligations satisfied in previous years | $ 3,603 | $ 3,346 |
Forgivable Loans (Details)
Forgivable Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Amount of forgivable loans write-down or write-off | $ 0 | $ 0 |
Forgivable loan activity | ||
Beginning balance | 40,294 | 28,628 |
Advances | 35,166 | 30,572 |
Repayments | (1,173) | (3,396) |
Reclassification to other assets | (1,734) | |
Amortization | (17,700) | (15,329) |
Effects of foreign currency translation | 288 | (181) |
Ending balance | 55,141 | 40,294 |
Current portion of forgivable loans | 6,751 | 6,104 |
Non-current portion of forgivable loans | 48,390 | 34,190 |
Other loans to current and former employees | ||
Other loans to current and former employees, included in other assets, net of allowances | $ 0 | $ 100 |
Minimum | ||
Term of forgivable loans or advances | 2 years | |
Maximum | ||
Term of forgivable loans or advances | 8 years | |
Interest rates (as a percent) | 3.25 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Lease expenses included in income statement | |||
Operating lease cost | $ 15,731 | ||
Short-term lease cost | 511 | ||
Variable lease cost | 4,461 | ||
Total lease cost | $ 20,703 | ||
Base rent expense | $ 13,200 | $ 12,100 | |
Weighted average remaining lease term - operating leases | 9 years 7 months 6 days | ||
Weighted average discount rate - operating leases | 3.70% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities under non-cancellable operating leases (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Leases | |
2020 | $ 17,973 |
2021 | 19,866 |
2022 | 20,030 |
2023 | 20,258 |
2024 | 20,302 |
Thereafter | 96,225 |
Total lease payments | 194,654 |
Less: imputed interest | (35,256) |
Total | 159,398 |
Additional operating leases that have not yet commenced | $ 2,800 |
Commencement of operating lease term | 5 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period, Goodwill gross | $ 164,625 | $ 165,417 | |
Effects of foreign currency translation | 296 | (792) | |
Balance at the end of the period, Goodwill gross | 164,921 | 164,625 | $ 165,417 |
Balance at the beginning of the period, Accumulated impairment losses | (76,417) | (76,417) | |
Balance at the end of the period, Accumulated impairment losses | (76,417) | (76,417) | (76,417) |
Goodwill, net | 88,504 | 88,208 | 89,000 |
Balance at the end of the period, Goodwill, net | $ 88,504 | $ 88,208 | 89,000 |
Intangible assets impairment losses | $ 530 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquired and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Acquired identifiable intangible assets | |||
Acquired identifiable intangible assets, net of accumulated amortization | $ 6,476 | $ 7,846 | |
Accumulated amortization | 5,968 | 4,998 | |
Amortization Expense | |||
2020 | 1,368 | ||
2021 | 927 | ||
2022 | 827 | ||
2023 | 822 | ||
2024 | 822 | ||
Thereafter | 1,710 | ||
Total | 6,476 | ||
Amortization of expenses related to intangible assets | 1,400 | 1,400 | $ 1,500 |
Non-competition agreements | |||
Acquired identifiable intangible assets | |||
Acquired identifiable intangible assets, net of accumulated amortization | 119 | 180 | |
Accumulated amortization | 205 | 544 | |
Customer relationships | |||
Acquired identifiable intangible assets | |||
Acquired identifiable intangible assets, net of accumulated amortization | 6,357 | 7,666 | |
Accumulated amortization | $ 5,763 | $ 4,454 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property and Equipment | |||
Property and equipment, gross | $ 100,579 | $ 79,190 | |
Accumulated depreciation and amortization | (39,284) | (31,102) | |
Total property and equipment, net | 61,295 | 48,088 | |
Depreciation expense | 9,200 | 8,600 | $ 7,400 |
Computer, office equipment and software | |||
Property and Equipment | |||
Property and equipment, gross | 30,627 | 27,082 | |
Leasehold improvements | |||
Property and Equipment | |||
Property and equipment, gross | 55,471 | 40,782 | |
Furniture | |||
Property and Equipment | |||
Property and equipment, gross | $ 14,481 | $ 11,326 |
Property and Equipment - Long-l
Property and Equipment - Long-lived assets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Long-lived assets by geographic location | ||
Long-lived assets (property and equipment, net) | $ 61,295 | $ 48,088 |
United States | ||
Long-lived assets by geographic location | ||
Long-lived assets (property and equipment, net) | 51,974 | 39,654 |
United Kingdom | ||
Long-lived assets by geographic location | ||
Long-lived assets (property and equipment, net) | 7,803 | 6,890 |
Other | ||
Long-lived assets by geographic location | ||
Long-lived assets (property and equipment, net) | 1,518 | 1,544 |
Total foreign | ||
Long-lived assets by geographic location | ||
Long-lived assets (property and equipment, net) | $ 9,321 | $ 8,434 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Accrued Expenses | ||
Compensation and related expenses | $ 99,993 | $ 90,711 |
Income taxes payable | 430 | 514 |
Commissions due to senior consultants | 9,961 | 9,600 |
Direct project accruals | 442 | 700 |
Accrued leasehold improvements | 2,166 | 100 |
Other | 8,309 | 6,608 |
Total | 121,301 | 108,233 |
Compensation and related expenses | ||
Accrued bonuses | $ 81,200 | $ 73,900 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Taxes | |||
Federal statutory rate (as a percent) | 21.00% | 21.00% | 35.00% |
Provisional income tax recorded | $ 3.6 | ||
Effective tax rate (as a percent) | 22.60% | 22.30% | 49.20% |
Income Taxes - Components of In
Income Taxes - Components of Income, Provision For and Reconciliation of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income before provision for income taxes: | |||||||||||
U.S. | $ 20,778 | $ 21,118 | $ 12,248 | ||||||||
Foreign | 6,019 | 7,815 | 2,916 | ||||||||
Income before provision for income taxes and noncontrolling interest | $ 6,059 | $ 6,691 | $ 7,947 | $ 6,100 | $ 8,331 | $ 4,939 | $ 9,737 | $ 5,926 | 26,797 | 28,933 | 15,164 |
Currently payable: | |||||||||||
Federal | 4,252 | 4,015 | 4,515 | ||||||||
Foreign | 1,119 | 1,487 | 493 | ||||||||
State | 1,838 | 1,788 | 804 | ||||||||
Currently payable | 7,209 | 7,290 | 5,812 | ||||||||
Deferred: | |||||||||||
Federal | (869) | (384) | 1,809 | ||||||||
Foreign | 331 | (88) | (85) | ||||||||
State | (621) | (357) | (73) | ||||||||
Deferred | (1,159) | (829) | 1,651 | ||||||||
Provision (benefit) for income taxes | $ 6,050 | $ 6,461 | $ 7,463 | ||||||||
Reconciliation of tax rates with the federal statutory rate | |||||||||||
Federal statutory rate (as a percent) | 21.00% | 21.00% | 35.00% | ||||||||
State income taxes, net of federal income tax benefit (as a percent) | 5.50% | 4.90% | 3.90% | ||||||||
Tax law changes (as a percent) | 0.90% | 23.70% | |||||||||
Share-based compensation (as a percent) | (5.00%) | (6.30%) | (15.80%) | ||||||||
Meals & Entertainment Expense | 1.70% | 1.30% | 3.00% | ||||||||
Executive Compensation | 1.60% | 1.00% | 1.80% | ||||||||
Foreign rate differential (as a percent) | 0.00% | 2.80% | |||||||||
Uncertain tax positions (as a percent) | (2.50%) | (1.10%) | (0.10%) | ||||||||
Other (as a percent) | 0.30% | 0.60% | 0.50% | ||||||||
Effective tax rate (as a percent) | 22.60% | 22.30% | 49.20% |
Income Taxes - Deferred Taxes a
Income Taxes - Deferred Taxes and Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Deferred tax assets: | ||
Accrued compensation and related expense | $ 12,842 | $ 12,691 |
Allowance for doubtful accounts | 2,023 | 1,694 |
Net operating loss carryforwards | 335 | 402 |
Lease liabilities | 39,747 | 0 |
Deferred rent, accruals, and other | 119 | 5,656 |
Total gross deferred tax assets | 55,066 | 20,443 |
Less: valuation allowance | 0 | |
Total deferred tax assets net of valuation allowance | 55,066 | 20,443 |
Deferred tax liabilities: | ||
Goodwill and other intangible asset amortization | 3,650 | 4,295 |
Right-of-Use assets | 33,012 | 0 |
Property and equipment | 7,690 | 6,762 |
Prepaids and other | 548 | 358 |
Total deferred tax liabilities | 44,900 | 11,415 |
Net deferred tax assets | 10,166 | $ 9,028 |
U.S. and Foreign | ||
Deferred tax liabilities: | ||
Net operating loss carryforwards | $ 1,100 | |
U.S. and Foreign | Minimum | ||
Deferred tax liabilities: | ||
Deferred Tax Asset Carry Forward Period | 20 years |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Changes in the balances of gross unrecognized tax benefits | ||
Balance at beginning of period | $ 867 | $ 1,031 |
Additions for tax positions taken during prior years | 132 | |
Reductions for tax positions taken during prior years | (25) | 0 |
Additions for tax positions taken during the current year | 0 | |
Reductions as a result of a lapse of the applicable statute of limitations | (600) | (296) |
Settlements with tax authorities | 0 | |
Balance at end of the period | 242 | $ 867 |
Unrecognized tax benefits before adjustments | 200 | |
Unrecognized tax benefits being recognized as a reduction to the effective income tax rate | 200 | |
Amount of unrecognized tax benefits that was expected to be reversed within the next twelve months | $ 100 |
Share-Based Compensation - Expe
Share-Based Compensation - Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-Based Compensation | |||
Compensation expense | $ 3.5 | $ 4.8 | $ 6.6 |
Share-Based Compensation - 2006
Share-Based Compensation - 2006 Equity Plan (Details) | Dec. 28, 2019shares |
2006 Incentive Plan | |
Shares Using Fungibility Ratio | |
Shares available for grant | 623,212 |
Share-Based Compensation - Opti
Share-Based Compensation - Option Activity (Details) - Options - 2006 Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Options | |||
Outstanding at the beginning of the period (in shares) | 585,981 | ||
Exercised (in shares) | (140,513) | ||
Forfeited (in shares) | (979) | ||
Outstanding at the end of the period (in shares) | 444,489 | 585,981 | |
Options exercisable at the end of the period (in shares) | 408,277 | ||
Vested or expected to vest at the end of the period (in shares) | 444,281 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 25.48 | ||
Exercised (in dollars per share) | 22.85 | ||
Forfeited (in dollars per share) | 21.52 | ||
Outstanding at the end of the period (in dollars per share) | 26.31 | $ 25.48 | |
Options exercisable at the end of the period (in dollars per share) | 24.84 | ||
Vested or expected to vest at the end of the period (in dollars per share) | $ 26.31 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at the beginning of the period | 2 years 9 months 22 days | ||
Outstanding at the end of the period | 2 years 9 months 22 days | ||
Options exercisable at the end of the period | 2 years 4 months 21 days | ||
Vested or expected to vest at the end of the period | 2 years 9 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the beginning of the period (in dollars) | $ 9,286 | ||
Exercised (in dollars) | 3,659 | $ 3,000 | $ 5,400 |
Forfeited (in dollars) | 28 | ||
Outstanding at the end of the period (in dollars) | 12,115 | $ 9,286 | |
Options exercisable at the end of the period (in dollars) | 11,732 | ||
Vested or expected to vest at the end of the period (in dollars) | $ 12,113 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average FMV of Stock Option (Details) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Options | |||
Weighted average assumptions | |||
Risk-free interest rate (as a percent) | 2.80% | 2.10% | |
Expected volatility (as a percent) | 39.00% | 32.00% | |
Expected dividend yield (as a percent) | 1.70% | 1.50% | |
Forfeiture rate (as a percent) | 0.40% | 0.40% | |
Weighted average expected life (in years) | 10 years | 4 years 5 months 27 days | |
2006 Incentive Plan | |||
Share-Based Compensation | |||
Weighted average fair market value (in dollars per share) | $ 0 | $ 19.96 | $ 11.54 |
Share-Based Compensation - Non-
Share-Based Compensation - Non-vested stock options (Details) - Options | 12 Months Ended |
Dec. 28, 2019$ / sharesshares | |
Options, Number of Shares | |
Non-vested balance at the beginning of the period (in shares) | shares | 116,284 |
Vested (in shares) | shares | (79,093) |
Forfeited (in shares) | shares | (979) |
Non-vested balance at the end of the period (in shares) | shares | 36,212 |
Options, Weighted-Average Grant Date Fair Value | |
Non-vested balance at the beginning of the period (in dollars per share) | $ / shares | $ 10.64 |
Vested (in dollars per share) | $ / shares | 8.77 |
Forfeited (in dollars per share) | $ / shares | 7.37 |
Non-vested balance at the end of the period (in dollars per share) | $ / shares | $ 14.80 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Shares and Other (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 28, 2019USD ($)item$ / sharesshares | Dec. 29, 2018USD ($)$ / sharesshares | Dec. 30, 2017USD ($)shares | |
2006 Incentive Plan | |||
Additional disclosures | |||
Shares available for grant | 623,212 | ||
Options | |||
Additional disclosures | |||
Fair value of options vested | $ | $ 0.7 | $ 1.1 | $ 1.5 |
Unrecognized compensation cost, net of expected forfeitures | $ | $ 0.5 | ||
Weighted-average period over which cost is expected to be recognized | 2 years 6 months | ||
Forfeiture rate (as a percent) | 0.40% | 0.40% | |
Restricted stock | |||
Additional disclosures | |||
Number of vesting installments | item | 4 | ||
Unrecognized compensation cost, net of expected forfeitures | $ | $ 0.9 | ||
Weighted-average period over which cost is expected to be recognized | 2 years 7 months 6 days | ||
Forfeiture rate (as a percent) | 0.90% | ||
Restricted Stock and Stock Units, Number of Shares | |||
Fair value of restricted shares vested | $ | $ 0.5 | $ 0.6 | $ 0.6 |
Restricted stock | 2006 Incentive Plan | |||
Restricted Stock and Stock Units, Number of Shares | |||
Balance at the beginning of the period (in shares) | 36,006 | ||
Granted (in shares) | 11,772 | ||
Vested (in shares) | (16,255) | ||
Balance at the end of the period (in shares) | 31,523 | 36,006 | |
Restricted Stock and Stock Units, Weighted-Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 35.41 | ||
Granted (in dollars per share) | $ / shares | 38.21 | ||
Vested (in dollars per share) | $ / shares | 31.14 | ||
Balance at the end of the period (in dollars per share) | $ / shares | $ 38.66 | $ 35.41 | |
Time-Vesting RSUs | |||
Additional disclosures | |||
Number of vesting installments | item | 4 | ||
Unrecognized compensation cost, net of expected forfeitures | $ | $ 2.4 | ||
Weighted-average period over which cost is expected to be recognized | 3 years 1 month 6 days | ||
Forfeiture rate (as a percent) | 0.90% | ||
Restricted Stock and Stock Units, Number of Shares | |||
Fair value of restricted shares vested | $ | $ 1.3 | $ 1.7 | $ 2 |
Time-Vesting RSUs | 2006 Incentive Plan | |||
Restricted Stock and Stock Units, Number of Shares | |||
Balance at the beginning of the period (in shares) | 79,759 | ||
Granted (in shares) | 31,226 | ||
Vested (in shares) | (45,858) | ||
Forfeited (in shares) | (489) | ||
Balance at the end of the period (in shares) | 64,638 | 79,759 | |
Restricted Stock and Stock Units, Weighted-Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 33.64 | ||
Granted (in dollars per share) | $ / shares | 46.20 | ||
Vested (in dollars per share) | $ / shares | 27.91 | ||
Forfeited (in dollars per share) | $ / shares | 21.52 | ||
Balance at the end of the period (in dollars per share) | $ / shares | $ 43.87 | $ 33.64 | |
PRSU | |||
Additional disclosures | |||
Vesting period | 2 years | ||
PRSU | Vesting in the first year following performance period | |||
Additional disclosures | |||
Vesting percentage | 75.00% | ||
PRSU | Vesting on the fourth anniversary of date of grant | |||
Additional disclosures | |||
Vesting percentage | 25.00% | ||
PRSU | Minimum | |||
Additional disclosures | |||
PRSUs performance measure (as a percent) | 50.00% | ||
PRSU | Maximum | |||
Additional disclosures | |||
PRSUs performance measure (as a percent) | 125.00% | ||
PRSU | 2006 Incentive Plan | |||
Restricted Stock and Stock Units, Number of Shares | |||
Balance at the beginning of the period (in shares) | 121,950 | ||
Granted (in shares) | 29,234 | ||
Vested (in shares) | (65,976) | ||
Forfeited (in shares) | (3,058) | ||
Balance at the end of the period (in shares) | 82,150 | 121,950 | |
Restricted Stock and Stock Units, Weighted-Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 32.92 | ||
Granted (in dollars per share) | $ / shares | 51.31 | ||
Vested (in dollars per share) | $ / shares | 25.27 | ||
Forfeited (in dollars per share) | $ / shares | 28.77 | ||
Balance at the end of the period (in dollars per share) | $ / shares | $ 45.88 | $ 32.92 | |
Additional disclosures | |||
Achievement percentage (as a percent) | 125.00% | ||
1998 Employee Stock Purchase Plan (ESPP) | |||
Additional disclosures | |||
Number of shares authorized | 243,000 | ||
Purchase price as a percentage of fair market value (as a percent) | 85.00% | ||
Offering period under the plan (in years) | 1 year | ||
Offering period (in years) | 0 years | 0 years | 0 years |
Shares issued | 0 | 0 | 0 |
Shares available for grant | 211,777 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Net income available to common shareholders | |||||||
Net income attributable to CRA as reported | $ 6,859 | $ 3,908 | $ 6,839 | $ 4,886 | $ 20,747 | $ 22,492 | $ 7,624 |
Less: net income attributable to participating shares | 55 | 108 | 51 | ||||
Net income available to common shareholders | $ 20,692 | $ 22,384 | $ 7,573 | ||||
Reconciliation of basic to diluted weighted average shares of common stock outstanding | |||||||
Basic weighted average shares outstanding | 7,866,000 | 8,107,000 | 8,292,000 | ||||
Stock options and restricted stock units | 301,000 | 463,000 | 205,000 | ||||
Diluted weighted average shares outstanding | 8,167,000 | 8,570,000 | 8,497,000 | ||||
Calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding | |||||||
Anti-dilutive securities excluded from EPS computation (in shares) | 62,367 | 29,612 | 75,004 |
Business Acquisitions (Details)
Business Acquisitions (Details) - C1 Consulting LLC - USD ($) $ in Millions | Jan. 31, 2017 | Dec. 30, 2017 |
Business Acquisitions | ||
Maximum period for additional purchase consideration to be paid | 4 years | |
Selling, general and administrative expenses | ||
Liabilities Assumed: | ||
Transaction related costs | $ 0.9 |
GNU Interest (Details)
GNU Interest (Details) - USD ($) $ in Thousands | Dec. 18, 2018 | Dec. 29, 2018 | Dec. 30, 2017 |
Sale of GNU interest | |||
Purchase price received | $ 250 | ||
GNU gain on sale of business assets | $ 258 | 250 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | GNU | |||
Sale of GNU interest | |||
Purchase price received | 300 | ||
GNU | |||
GNU Interest | |||
Percentage of ownership interest held by the entity | 55.89% | ||
GNU | Disposal Group, Disposed of by Sale, Not Discontinued Operations | GNU | |||
Sale of GNU interest | |||
GNU gain on sale of business assets | $ 300 | ||
GNU partial distribution gain received on sale of business assets | 600 | ||
CRA | Disposal Group, Disposed of by Sale, Not Discontinued Operations | GNU | |||
Sale of GNU interest | |||
GNU gain on sale of business assets | $ 200 |
Credit Agreement (Details)
Credit Agreement (Details) | 12 Months Ended | |
Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Revolving credit facility | ||
Senior Loan Agreement | ||
Revolving credit facility, maximum capacity | $ 125,000,000 | |
Borrowings outstanding | $ 0 | $ 0 |
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 | $ 32,900,000 | $ 29,100,000 |
Revolving credit facility | Minimum | ||
Senior Loan Agreement | ||
Commitment fee payable on the unused portion of the credit facility (as a percent) | 0.20% | |
Ratio of consolidated interest expense to consolidated EBITDA | 2.5 | |
Revolving credit facility | Maximum | ||
Senior Loan Agreement | ||
Commitment fee payable on the unused portion of the credit facility (as a percent) | 0.35% | |
Ratio of consolidated debt to consolidated EBITDA | 3 | |
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) | 0.25% | |
Revolving credit facility | Base rate | Maximum | ||
Senior Loan Agreement | ||
Interest margin (as a percent) | 1.25% | |
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) | 1.25% | |
Revolving credit facility | Eurocurrency rate | Maximum | ||
Senior Loan Agreement | ||
Interest margin (as a percent) | 2.25% | |
Secured by letters of credit | ||
Senior Loan Agreement | ||
Revolving credit facility, maximum capacity | $ 15,000,000 | |
Amount available under revolving credit facility reduced | $ 4,400,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Employee Benefit Plans | |||
Employer contributions under 401(k) plans | $ 3.9 | $ 3.5 | $ 3.1 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Shareholders | |||
Related-Party Transactions | |||
Payments for consulting services | $ 9.3 | $ 8.8 | $ 13.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 28, 2019USD ($) |
Standby letters of credit | |
Maximum borrowing capacity | $ 4.4 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Data (Unaudited) | |||||||||||
Revenues | $ 119,262 | $ 115,686 | $ 110,573 | $ 105,849 | $ 108,763 | $ 103,871 | $ 105,538 | $ 99,476 | $ 451,370 | $ 417,648 | $ 370,075 |
Income from operations | 7,277 | 6,905 | 8,311 | 6,855 | 7,845 | 5,225 | 9,661 | 6,204 | 29,348 | 28,935 | 15,764 |
Income before provision for income taxes | 6,059 | 6,691 | 7,947 | 6,100 | 8,331 | 4,939 | 9,737 | 5,926 | 26,797 | 28,933 | 15,164 |
Net income | $ 4,763 | $ 5,739 | $ 5,580 | $ 4,665 | 6,839 | 3,908 | 6,839 | 4,886 | 20,747 | 22,472 | 7,701 |
Net loss attributable to noncontrolling interest, net of tax | 20 | 0 | 0 | 0 | 20 | (77) | |||||
Net income attributable to CRA International, Inc | $ 6,859 | $ 3,908 | $ 6,839 | $ 4,886 | $ 20,747 | $ 22,492 | $ 7,624 | ||||
Basic net income per share (in dollars per share) | $ 0.61 | $ 0.74 | $ 0.70 | $ 0.58 | $ 0.85 | $ 0.48 | $ 0.84 | $ 0.59 | $ 2.63 | $ 2.76 | $ 0.91 |
Diluted net income per share (in dollars per share) | $ 0.59 | $ 0.71 | $ 0.68 | $ 0.56 | $ 0.81 | $ 0.46 | $ 0.79 | $ 0.57 | $ 2.53 | $ 2.61 | $ 0.89 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 27, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Feb. 07, 2020 | Dec. 29, 2019 |
Subsequent Events | ||||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.83 | $ 0.71 | $ 0.59 | |||
Subsequent Events | ||||||
Subsequent Events | ||||||
Borrowings on revolving line of credit outstanding | $ 30 | |||||
Additional number of shares authorized to repurchase | $ 20 | |||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.23 |