CRA International (CRAI) 10-Q 29 Oct 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 26, 2020	Oct. 23, 2020
Cover [Abstract]
Entity Registrant Name	CRA International, Inc.
Entity Central Index Key	0001053706
Document Type	10-Q
Document Period End Date	Sep. 26, 2020
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-24049
Entity Address, Postal Zip Code	02116-5092
Entity Incorporation, State or Country Code	MA
Entity Address, Address Line One	200 Clarendon Street
Entity Address, City or Town	Boston
Entity Tax Identification Number	04-2372210
Local Phone Number	425-3000
City Area Code	617
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	CRAI
Security Exchange Name	NASDAQ
Entity Address, State or Province	MA
Current Fiscal Year End Date	--01-02
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		7,776,333
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Income Statement [Abstract]
Revenues	$ 121,762	$ 115,686	$ 370,951	$ 332,108
Costs of services (exclusive of depreciation and amortization)	88,304	83,805	269,462	233,412
Selling, general and administrative expenses	22,194	22,449	67,742	68,929
Depreciation and amortization	3,244	2,527	9,293	7,696
Income from operations	8,020	6,905	24,454	22,071
Interest expense, net	(277)	(424)	(1,011)	(954)
Foreign currency gains (losses), net	(217)	210	1,103	(379)
Income before provision for income taxes	7,526	6,691	24,546	20,738
Provision for income taxes	2,123	952	6,744	4,754
Net income	$ 5,403	$ 5,739	$ 17,802	$ 15,984
Net income per share:
Basic (in dollars per share)	$ 0.69	$ 0.74	$ 2.28	$ 2.02
Diluted (in dollars per share)	$ 0.68	$ 0.71	$ 2.23	$ 1.94
Weighted average number of shares outstanding:
Basic (in shares)	7,771	7,769	7,780	7,903
Diluted (in shares)	7,934	8,050	7,964	8,205

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 5,403	$ 5,739	$ 17,802	$ 15,984
Other comprehensive income (loss)
Foreign currency translation adjustments	1,589	(1,488)	(302)	(1,429)
Comprehensive income	$ 6,992	$ 4,251	$ 17,500	$ 14,555

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 24,108	$ 25,639
Accounts receivable, net of allowances	106,175	107,841
Unbilled services, net of allowances	51,509	36,569
Prepaid expenses and other current assets	8,832	7,277
Forgivable loans	6,037	6,751
Total current assets	196,661	184,077
Property and equipment, net	64,886	61,295
Goodwill	88,290	88,504
Intangible assets, net	5,449	6,476
Right-of-use assets	123,390	130,173
Deferred income taxes	10,241	10,670
Forgivable loans, net of current portion	58,138	48,390
Other assets	3,122	3,658
Total assets	550,177	533,243
Current liabilities:
Accounts payable	16,574	26,069
Accrued expenses	103,952	121,301
Deferred revenue and other liabilities	6,368	6,723
Current portion of lease liabilities	14,551	12,847
Current portion of deferred compensation	17,737	4,470
Revolving line of credit	38,000	0
Total current liabilities	197,182	171,410
Non-current liabilities:
Deferred compensation and other non-current liabilities	4,759	15,071
Facility-related non-current liabilities	1,962	1,956
Non-current portion of lease liabilities	141,331	146,551
Deferred income taxes	548	504
Total non-current liabilities	148,600	164,082
Commitments and contingencies
Shareholders’ equity:
Preferred Stock, Value, Issued	0	0
Common Stock, Value, Issued	4,092	9,265
Retained earnings	212,368	200,249
Accumulated other comprehensive loss	(12,065)	(11,763)
Total shareholders’ equity	204,395	197,751
Total liabilities and shareholders’ equity	$ 550,177	$ 533,243

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Statement of Financial Position [Abstract]
Allowance for accounts receivable (in dollars)	$ 3,126	$ 3,838
Allowance for unbilled services (in dollars)	$ 942	$ 1,503
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	7,739,550	7,814,797
Common stock, shares outstanding	7,739,550	7,814,797

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019
OPERATING ACTIVITIES:
Net income	$ 17,802	$ 15,984
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	9,293	7,701
Facility-related liabilities	104	83
Right-of-use asset amortization	8,900	7,832
Deferred income taxes	496	117
Share-based compensation expense	2,357	2,641
Accounts receivable allowances	(894)	(160)
Unrealized foreign currency remeasurement losses, net	129	0
Changes in operating assets and liabilities:
Accounts receivable	1,952	3,626
Unbilled services, net	(14,994)	(14,582)
Prepaid expenses and other current assets, and other assets	(979)	(5,735)
Forgivable loans	(18,963)	(18,942)
Incentive cash awards	4,862	3,628
Accounts payable, accrued expenses, and other liabilities	(15,191)	(16,274)
Lease liabilities	(5,526)	(5,826)
Net cash used in operating activities	(10,652)	(19,907)
INVESTING ACTIVITIES:
Purchases of property and equipment	(15,742)	(12,548)
Net cash used in investing activities	(15,742)	(12,548)
FINANCING ACTIVITIES:
Issuance of common stock, principally stock option exercises	1,667	2,006
Borrowings under revolving line of credit	77,000	54,000
Repayments under revolving line of credit	(39,000)	(18,000)
Tax withholding payments reimbursed by shares	(390)	(388)
Cash paid on dividend equivalents	(40)	(35)
Cash dividends paid to shareholders	(5,372)	(4,742)
Repurchase of common stock	(8,807)	(18,068)
Net cash provided by financing activities	25,058	14,773
Effect of foreign exchange rates on cash and cash equivalents	(195)	(513)
Net decrease in cash and cash equivalents	(1,531)	(18,195)
Cash and cash equivalents at beginning of period	25,639	38,028
Cash and cash equivalents at end of period	24,108	19,833
Noncash investing and financing activities:
Purchases of property and equipment not yet paid for	3,923	3,461
Purchases of property and equipment paid by a third party	0	126
Asset retirement obligations	155	427
Right-of-use assets obtained in exchange for lease obligations	2,601	37,298
Right-of-use assets related to the adoption of ASC 842	0	82,329
Lease liabilities related to the adoption of ASC 842	0	106,765
Supplemental cash flow information:
Cash paid for taxes	5,933	6,078
Cash paid for interest	932	848
Cash paid for amounts included in operating lease liabilities	$ 13,736	$ 12,053

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Total	Cumulative-effect adjustment	Adjusted Balance	Common Stock	Common StockAdjusted Balance	Retained Earnings	Retained EarningsCumulative-effect adjustment	Retained EarningsAdjusted Balance	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive LossAdjusted Balance
Beginning balance at Dec. 29, 2018	$ 196,472			$ 22,837		$ 186,229			$ (12,594)
Beginning balance (in shares) at Dec. 29, 2018				8,010,480
Increase (Decrease) in Shareholders' Equity
Net income	4,665					4,665
Foreign currency translation adjustment	712								712
Exercise of stock options	1,526			$ 1,526
Exercise of stock options (in shares)				64,700
Share-based compensation expense	911			$ 911
Restricted shares vesting (in shares)				25,484
Redemption of vested employee restricted shares for tax withholding	(388)			$ (388)
Redemption of vested employee restricted shares for tax withholding (in shares)				(8,157)
Shares repurchased	(4,349)			$ (4,349)
Shares repurchased (in shares)				(86,609)
Accrued dividends on unvested shares	8					8
Cash paid on dividend equivalents	(35)					(35)
Cash dividends paid to shareholders (per share)	(1,616)					(1,616)
Ending balance at Mar. 30, 2019	197,890			$ 20,537		189,235			(11,882)
Ending balance (in shares) at Mar. 30, 2019				8,005,898
Beginning balance at Dec. 29, 2018	196,472			$ 22,837		186,229			(12,594)
Beginning balance (in shares) at Dec. 29, 2018				8,010,480
Increase (Decrease) in Shareholders' Equity
Net income	15,984
Foreign currency translation adjustment	(1,429)
Ending balance at Sep. 28, 2019	192,352			$ 9,028		197,347			(14,023)
Ending balance (in shares) at Sep. 28, 2019				7,707,886
Beginning balance at Mar. 30, 2019	197,890			$ 20,537		189,235			(11,882)
Beginning balance (in shares) at Mar. 30, 2019				8,005,898
Increase (Decrease) in Shareholders' Equity
Net income	5,580					5,580
Foreign currency translation adjustment	(653)								(653)
Share-based compensation expense	848			$ 848
Restricted shares vesting (in shares)				513
Shares repurchased	(7,161)			$ (7,161)
Shares repurchased (in shares)				(177,101)
Accrued dividends on unvested shares	44					44
Cash paid on dividend equivalents	(1,580)					(1,580)
Ending balance at Jun. 29, 2019	194,880			$ 14,224		193,191			(12,535)
Ending balance (in shares) at Jun. 29, 2019				7,829,310
Increase (Decrease) in Shareholders' Equity
Net income	5,739					5,739
Foreign currency translation adjustment	(1,488)								(1,488)
Exercise of stock options	480			$ 480
Exercise of stock options (in shares)				21,224
Share-based compensation expense	882			$ 882
Restricted shares vesting (in shares)				14,754
Shares repurchased	(6,558)			$ (6,558)
Shares repurchased (in shares)				(157,402)
Accrued dividends on unvested shares	37					37
Cash dividends paid to shareholders (per share)	(1,546)					(1,546)
Ending balance at Sep. 28, 2019	192,352			$ 9,028		197,347			(14,023)
Ending balance (in shares) at Sep. 28, 2019				7,707,886
Beginning balance at Dec. 28, 2019	$ 197,751	$ (203)	$ 197,548	$ 9,265	$ 9,265	200,249	$ (203)	$ 200,046	(11,763)	$ (11,763)
Beginning balance (in shares) at Dec. 28, 2019	7,814,797			7,814,797	7,814,797
Increase (Decrease) in Shareholders' Equity
Net income	$ 6,468					6,468
Foreign currency translation adjustment	(2,427)								(2,427)
Exercise of stock options	151			$ 151
Exercise of stock options (in shares)				8,200
Share-based compensation expense	655			$ 655
Restricted shares vesting (in shares)				23,884
Redemption of vested employee restricted shares for tax withholding	(390)			$ (390)
Redemption of vested employee restricted shares for tax withholding (in shares)				(7,843)
Shares repurchased	(3,810)			$ (3,810)
Shares repurchased (in shares)				(82,613)
Accrued dividends on unvested shares	(1)					(1)
Cash paid on dividend equivalents	(40)					(40)
Cash dividends paid to shareholders (per share)	(1,796)					(1,796)
Ending balance at Mar. 28, 2020	196,360			$ 5,871		204,679			(14,190)
Ending balance (in shares) at Mar. 28, 2020				7,756,425
Beginning balance at Dec. 28, 2019	$ 197,751	$ (203)	$ 197,548	$ 9,265	$ 9,265	200,249	$ (203)	$ 200,046	(11,763)	$ (11,763)
Beginning balance (in shares) at Dec. 28, 2019	7,814,797			7,814,797	7,814,797
Increase (Decrease) in Shareholders' Equity
Net income	$ 17,802
Foreign currency translation adjustment	(302)
Ending balance at Sep. 26, 2020	$ 204,395			$ 4,092		212,368			(12,065)
Ending balance (in shares) at Sep. 26, 2020	7,739,550			7,739,550
Beginning balance at Mar. 28, 2020	$ 196,360			$ 5,871		204,679			(14,190)
Beginning balance (in shares) at Mar. 28, 2020				7,756,425
Increase (Decrease) in Shareholders' Equity
Net income	5,931					5,931
Foreign currency translation adjustment	536								536
Exercise of stock options	418			$ 418
Exercise of stock options (in shares)				22,611
Share-based compensation expense	796			$ 796
Restricted shares vesting (in shares)				513
Accrued dividends on unvested shares	38					38
Cash paid on dividend equivalents	(1,788)					(1,788)
Ending balance at Jun. 27, 2020	202,215			$ 7,085		208,784			(13,654)
Ending balance (in shares) at Jun. 27, 2020				7,779,549
Increase (Decrease) in Shareholders' Equity
Net income	5,403					5,403
Foreign currency translation adjustment	1,589								1,589
Exercise of stock options	1,098			$ 1,098
Exercise of stock options (in shares)				57,219
Share-based compensation expense	906			$ 906
Restricted shares vesting (in shares)				12,936
Shares repurchased	(4,997)			$ (4,997)
Shares repurchased (in shares)				(110,154)
Accrued dividends on unvested shares	31					31
Cash paid on dividend equivalents	(1,788)					(1,788)
Ending balance at Sep. 26, 2020	$ 204,395			$ 4,092		$ 212,368			$ (12,065)
Ending balance (in shares) at Sep. 26, 2020	7,739,550			7,739,550

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends paid to shareholders (in dollars per share)	$ 0.23	$ 0.23	$ 0.23	$ 0.20	$ 0.20	$ 0.20

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 26, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	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. Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of CRA International, Inc. and its wholly-owned subsidiaries (collectively the “Company”), which require consolidation after the elimination of intercompany accounts and transactions. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair presentation of CRA’s results of operations, financial position, cash flows, and shareholders’ equity for the interim periods presented in conformity with GAAP. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 28, 2019 included in CRA’s Annual Report on Form 10-K filed with the SEC on February 27, 2020 (the “2019 Form 10-K”). Certain prior year amounts have been reclassified to conform to current year presentation. These reclassifications had no effect on previously reported results of operations, financial position, or cash flows. Estimates The preparation of financial statements in conformity with 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 condensed 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 contingent consideration liabilities, valuation of acquired intangible assets, impairment of long-lived assets and 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. 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. Common Stock and Equity Equity transactions consist primarily of the repurchase by CRA of its common stock under its share repurchase program and the recognition of compensation expense and issuance of common stock under CRA’s 2006 Equity Incentive Plan. Under CRA’s share repurchase program, the Company repurchases its common stock in open market purchases (including through any Rule 10b5-1 plan adopted by CRA) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations. The purchase price is first charged against available paid-in capital (“PIC”) until PIC is exhausted, wherein purchases will be charged to retained earnings. CRA’s common stock has no par value. All shares repurchased have been retired. Recent Accounting Standards Adopted Leases (Topic 842) CRA adopted Accounting Standards Codification (“ASC”) Topic 842, Leases (“ASC 842”), which supersedes ASC Topic 840, Leases (“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. As a result of adopting the new standard, CRA recognized ROU assets of $82.3 million and lease liabilities of $106.8 million on December 30, 2018. 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. Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting CRA adopted Accounting Standards Update (“ASU”) No. 2018-7, Compensation–Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting (Topic 718) (“ASU 2018-7”) on December 30, 2018. ASU 2018-7 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 2018-7 did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures. Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments CRA adopted ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”) on December 29, 2019. ASC 326 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, unbilled services, and loans, that is based on historical information, current information, and reasonable and supportable forecasts. As a result of adopting the new standard, CRA recognized a cumulative increase to allowances for accounts receivable and unbilled services and a reduction to the fiscal 2020 opening balance of retained earnings of $0.2 million. Comparative periods prior to the adoption of ASC 326 and their respective disclosures have not been adjusted. The adoption of ASC 326 did not have a material impact on CRA’s results of operations or cash flows on the date of transition. Fair Value Measurements (Topic 820) CRA adopted ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”) on December 29, 2019. 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 adoption of the new standard did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures on the date of transition. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement CRA adopted 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”) on December 29, 2019. 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. CRA adopted the ASU using the prospective transition approach, as permitted under the new guidance. The adoption of the new standard did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures on the date of transition. Recent Accounting Standards Not Yet Adopted 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.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 26, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The following tables show CRA’s financial instruments as of September 26, 2020 and December 28, 2019 that are measured and recorded in the condensed consolidated financial statements at fair value on a recurring basis (in thousands): ​ September 26, 2020 ​ Quoted Prices in Active Significant Other Significant Unobservable ​ Level 1 Level 2 Level 3 Assets: Money market mutual funds $ 150 $ — $ — Total Assets $ 150 $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 13,480 Total Liabilities $ — $ — $ 13,480 ​ ​ December 28, 2019 ​ Quoted Prices in Active Significant Other Significant Unobservable ​ 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 ​ The fair value of CRA’s money market mutual fund share holdings is $1.00 per share. The contingent consideration liability in the table above is 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 the liability is based on significant inputs not observed in the market and thus represents a Level 3 measurement. The significant unobservable inputs used in the fair value measurement of the contingent consideration liability 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 liability had been determined using a Monte Carlo simulation in prior fiscal quarters. In the current fiscal quarter, the fair value was estimated using an accrual method that approximates the fair value, as the end of the measurement period occurs during the first quarter of fiscal 2021. The fair value of the contingent consideration liability is 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 condensed 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 (in thousands): ​ Fiscal Year-to-Date Fiscal Year Ended ​ September 26, 2020 December 28, 2019 Beginning balance $ 11,579 $ 6,197 Remeasurement of acquisition-related contingent consideration 921 3,285 Accretion 980 2,097 Ending balance $ 13,480 $ 11,579

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 26, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue RecognitionThe contracts CRA enters into and operates under specify whether the projects 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 project, including any amounts billed to CRA by its non-employee experts. Disaggregation of Revenue The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date Type of Contract September 26, September 28, September 26, September 28, Consulting services revenues: Fixed Price $ 26,197 $ 30,057 $ 85,968 $ 76,622 Time-and-materials 95,565 85,629 284,983 255,486 Total $ 121,762 $ 115,686 $ 370,951 $ 332,108 ​ Fiscal Quarter Ended Fiscal Year-to-Date Geographic Breakdown September 26, September 28, September 26, September 28, Consulting services revenues: United States $ 96,117 $ 92,217 $ 296,273 $ 263,221 United Kingdom 20,358 17,116 57,355 53,027 Other 5,287 6,353 17,323 15,860 Total $ 121,762 $ 115,686 $ 370,951 $ 332,108 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. Variable consideration reserves are based on actual price concessions and those expected to be extended to CRA customers estimated by CRA's historical realization rates. Reserves for variable consideration are recorded as a component of the allowances for accounts receivable and unbilled services on the condensed consolidated balance sheets. 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 other countries. CRA performs a credit evaluation of its clients to minimize its collectability risk. Periodically, CRA will require advance payment from certain clients. However, CRA does not require collateral or other security. CRA adopted ASC 326 on December 29, 2019, which changed the method CRA utilizes to estimate reserves related to credit risk. As a result of the adoption, CRA recognized a cumulative-effect adjustment of $0.2 million to retained earnings and allowances for accounts receivable and unbilled services. Comparative periods and their respective disclosures prior to the adoption of ASC 326 have not been adjusted. Under ASC 326, CRA maintains allowances for accounts receivable and unbilled services for estimated losses resulting from clients’ failure to make required payments. CRA estimates these allowances based on historical charge-off rates, adjusted for days of sales outstanding and expected changes to clients’ financial conditions during the anticipated collection period. CRA writes off allowances when management determines the balance is uncollectible and all efforts of collection have been exhausted. Bad debt expense, net of recoveries of previously written off allowances, is reported as a component of selling, general and administrative expenses on the condensed consolidated statements of operations. Prior to adopting ASC 326 in fiscal 2020, CRA determined allowances for accounts receivable and unbilled services for specific customer accounts based on the financial condition of the customer and related facts and circumstances. Expenses associated with these allowances were reported as a component of selling, general and administrative expenses on the condensed consolidated statements of operations. Adjustments to the allowances for accounts receivable and unbilled services related to reserves for credit risk are as follows (in thousands): ​ Fiscal Year-to-Date Fiscal Year Ended ​ September 26, 2020 December 28, 2019 Beginning balance $ 370 $ 639 Cumulative effect of a change in accounting principle related to ASC 326 203 — Provision for credit loss expense, net of recoveries 228 173 Amounts written off (128) (442) Ending balance $ 673 $ 370 The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Bad debt expense (recovery), net $ 271 $ 142 $ 228 $ 173 Reimbursable Expenses 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): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Reimbursable expenses $ 13,150 $ 13,978 $ 44,395 $ 38,991 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 September 26, 2020 and December 28, 2019. The timing of revenue recognition, billings, and cash collections results in billed receivables, unbilled services and contract liabilities on the condensed consolidated balance sheet. 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 performance obligations have been satisfied and all revenue recognition criteria have been met. Contract liabilities are included in deferred revenue and other liabilities on the condensed consolidated balance sheet. The following table presents the closing balances of CRA’s contract liabilities (in thousands): ​ September 26, 2020 December 28, 2019 Balance at the end of the period $ 2,201 $ 4,007 CRA recognized the following revenue that was included in the contract liabilities balance as of the opening of the respective period or for performance obligations satisfied in previous periods (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Revenue recognized for amounts included in contract liabilities at the beginning of the period $ 1,766 $ 2,405 $ 3,262 $ 4,900 Revenue recognized for performance obligations satisfied in previous periods $ 3,987 $ 3,395 $ 4,363 $ 3,606

Forgivable Loans

Forgivable Loans	9 Months Ended
	Sep. 26, 2020
Forgivable Loans
Forgivable Loans	Forgivable Loans Forgivable loan activity for the fiscal year-to-date period ended September 26, 2020 and the fiscal year ended December 28, 2019 is as follows (in thousands): ​ Fiscal Year-to-Date Fiscal Year Ended ​ September 26, 2020 December 28, 2019 Beginning balance $ 55,141 $ 40,294 Advances 38,478 35,166 Repayments — (1,173) Reclassification from accrued expenses / to other assets (9,713) (1,734) Amortization (19,517) (17,700) Effects of foreign currency translation (214) 288 Ending balance $ 64,175 $ 55,141 Current portion of forgivable loans $ 6,037 $ 6,751 Non-current portion of forgivable loans $ 58,138 $ 48,390 At September 26, 2020 and December 28, 2019, CRA had no other loans to current or former employees included in other assets on the condensed consolidated balance sheet. The principal amount of forgivable loans and accrued interest is forgiven by CRA over the term of the loans, provided that the employee or non-employee expert continues employment or affiliation with CRA and complies with certain contractual requirements. CRA maintains an allowance for doubtful accounts for amounts not expected to be collected, which is initially assessed when the employee or non-employee fails to comply with contractual requirements or ceases employment or affiliation with CRA. The allowances are determined per specific borrower and are based on their financial condition and related facts and circumstances, including consideration of collateral. For the fiscal year-to-date period ended September 26, 2020 and the fiscal year ended December 28, 2019, no allowances or write-offs of these loans were recorded. ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 26, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible AssetsThe changes in the carrying amount of goodwill during the fiscal year ended December 28, 2019 and the fiscal year- to-date period ended September 26, 2020, are as follows (in thousands): Balance at December 28, 2019 Goodwill $ 164,921 Accumulated goodwill impairment (76,417) Goodwill, net at December 28, 2019 88,504 Foreign currency translation adjustment and other (1) (214) Goodwill, net at September 26, 2020 (2) $ 88,290 _______________________________ (1) During the fiscal quarter ended March 28, 2020, goodwill and accumulated goodwill impairment were reduced by $4.5 million as a result of the dissolution and final liquidation of GNU123 Liquidating Corporation. (2) Goodwill, net at September 26, 2020, is comprised of goodwill of $160.2 million and accumulated impairment of $71.9 million. 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 the fiscal year-to-date periods ended September 26, 2020 or September 28, 2019. The components of acquired identifiable intangible assets are as follows (in thousands): ​ September 26, 2020 December 28, 2019 Non-competition agreements $ 280 $ 324 Customer relationships 12,120 12,120 Total cost 12,400 12,444 Accumulated amortization (6,951) (5,968) Total intangible assets, net $ 5,449 $ 6,476

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 26, 2020
Accrued Liabilities, Current [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consist of the following (in thousands): ​ September 26, 2020 December 28, 2019 Compensation and related expenses $ 92,200 $ 99,993 Income taxes payable 488 430 Commissions due to non-employee experts 1,808 9,961 Other professional fees 2,116 2,077 Direct project accruals 3,622 3,201 Accrued leasehold improvements 441 2,166 Other 3,277 3,473 Total accrued expenses $ 103,952 $ 121,301 As of September 26, 2020, and December 28, 2019, approximately $71.3 million and $81.2 million, respectively, of accrued bonuses were included above in “Compensation and related expenses.” ​

Income Taxes

Income Taxes	9 Months Ended
	Sep. 26, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesFor the fiscal quarters ended September 26, 2020 and September 28, 2019, CRA’s effective income tax rate (“ETR”) was 28.2% and 14.2%, respectively. The difference in the ETR for the third quarter of fiscal 2020 from CRA's annual ETR for the fiscal year ended December 28, 2019, was primarily due to remeasuring the U.S. deferred tax assets and liabilities based on expected fiscal 2020 state apportionment, as well as the release of tax reserves recorded in the prior year that were nonrecurring in the current year. Partially offsetting this increase was a decrease in non-deductible meals and entertainment and a larger tax benefit related to the accounting for stock-based compensation. For the fiscal year-to-date periods ended September 26, 2020 and September 28, 2019, CRA’s ETR was 27.5% and 22.9%, respectively. The difference in the ETR for fiscal year-to-date period ended September 26, 2020 from CRA's annual ETR for the fiscal year ended December 28, 2019, was primarily due to remeasuring the U.S. deferred tax assets and liabilities based on expected fiscal 2020 state apportionment, as well as the release of tax reserves recorded in the prior year that were nonrecurring in the current year-to-date period.

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 26, 2020
Earnings Per Share [Abstract]
Net Income Per Share	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 outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. Net earnings allocable to these participating securities were not material for the fiscal quarters and fiscal year-to-date periods ended September 26, 2020 and September 28, 2019. The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Net income, as reported $ 5,403 $ 5,739 $ 17,802 $ 15,984 Less: net income attributable to participating shares 22 12 53 47 Net income available to common shareholders $ 5,381 $ 5,727 $ 17,749 $ 15,937 The following table presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Basic weighted average shares outstanding 7,771 7,769 7,780 7,903 Dilutive stock options and restricted stock units 163 281 184 302 Diluted weighted average shares outstanding 7,934 8,050 7,964 8,205 ​ For the fiscal quarter and fiscal year-to-date periods ended September 26, 2020, 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 76,399 and 62,808 shares, respectively. For the fiscal quarter and fiscal year-to-date periods ended September 28, 2019, 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 63,164 and 47,169 shares, respectively. These share-based awards each period were anti-dilutive because their exercise price exceeded the average market price over the respective period. ​

Credit Agreement

Credit Agreement	9 Months Ended
	Sep. 26, 2020
Debt Disclosure [Abstract]
Credit Agreement	Credit Agreement CRA is party to a 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 any borrowings must be repaid no later than October 24, 2022. There were $38.0 million in borrowings outstanding under this revolving credit facility as of September 26, 2020. There were no outstanding borrowings under this facility as of December 28, 2019. As of September 26, 2020, the amount available under this revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $4.7 million. 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. As of September 26, 2020 and December 28, 2019, CRA was in compliance with the covenants of its credit agreement. ​

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 26, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As described in Note 9, CRA is party to standby letters of credit with its bank in support of minimum future lease payments under leases for permanent office space. CRA is subject to legal actions arising in the ordinary course of business. In management’s opinion, based on current knowledge, CRA 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 . However, the outcome of such legal actions is inherently unpredictable and subject to inherent uncertainties. While CRA has not experienced a material adverse impact to its business, financial condition or results of operations from the COVID-19 pandemic to date, there continues to be uncertainty about client demand for the Company’s services and the worldwide economy. Consequently, the financial results for the current fiscal quarter and fiscal year-to-date periods ended September 26, 2020, may not be indicative of the results to be expected for the full fiscal year. The timing of ongoing projects and new project originations may be delayed or otherwise disrupted due to the length and severity of current business closures and other restrictions implemented in response to COVID-19, which may impact the timing and amount of future revenues. The magnitude of any impact on CRA's business and its duration is uncertain and cannot be reasonably estimated at this time. CRA is not aware of any specific events or circumstances that would require an update to its estimates or adjustments to the carrying value of its assets and liabilities as of October 29, 2020, the issuance date of this Quarterly Report on Form 10-Q. ​

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 26, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn October 29, 2020, CRA announced that its Board of Directors declared a quarterly cash dividend of $0.26 per common share, payable on December 11, 2020 to shareholders of record as of November 24, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 26, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of CRA International, Inc. and its wholly-owned subsidiaries (collectively the “Company”), which require consolidation after the elimination of intercompany accounts and transactions. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair presentation of CRA’s results of operations, financial position, cash flows, and shareholders’ equity for the interim periods presented in conformity with GAAP. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December 28, 2019 included in CRA’s Annual Report on Form 10-K filed with the SEC on February 27, 2020 (the “2019 Form 10-K”). Certain prior year amounts have been reclassified to conform to current year presentation. These reclassifications had no effect on previously reported results of operations, financial position, or cash flows.
Estimates	Estimates The preparation of financial statements in conformity with 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 condensed 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 contingent consideration liabilities, valuation of acquired intangible assets, impairment of long-lived assets and 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. 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.
Common Stock and Equity	Common Stock and Equity Equity transactions consist primarily of the repurchase by CRA of its common stock under its share repurchase program and the recognition of compensation expense and issuance of common stock under CRA’s 2006 Equity Incentive Plan. Under CRA’s share repurchase program, the Company repurchases its common stock in open market purchases (including through any Rule 10b5-1 plan adopted by CRA) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations. The purchase price is first charged against available paid-in capital (“PIC”) until PIC is exhausted, wherein purchases will be charged to retained earnings. CRA’s common stock has no par value. All shares repurchased have been retired.
Recent Accounting Standards Adopted and Not Yet Adopted	Recent Accounting Standards Adopted Leases (Topic 842) CRA adopted Accounting Standards Codification (“ASC”) Topic 842, Leases (“ASC 842”), which supersedes ASC Topic 840, Leases (“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. As a result of adopting the new standard, CRA recognized ROU assets of $82.3 million and lease liabilities of $106.8 million on December 30, 2018. 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. Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting CRA adopted Accounting Standards Update (“ASU”) No. 2018-7, Compensation–Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting (Topic 718) (“ASU 2018-7”) on December 30, 2018. ASU 2018-7 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 2018-7 did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures. Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments CRA adopted ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”) on December 29, 2019. ASC 326 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, unbilled services, and loans, that is based on historical information, current information, and reasonable and supportable forecasts. As a result of adopting the new standard, CRA recognized a cumulative increase to allowances for accounts receivable and unbilled services and a reduction to the fiscal 2020 opening balance of retained earnings of $0.2 million. Comparative periods prior to the adoption of ASC 326 and their respective disclosures have not been adjusted. The adoption of ASC 326 did not have a material impact on CRA’s results of operations or cash flows on the date of transition. Fair Value Measurements (Topic 820) CRA adopted ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU No. 2018-13”) on December 29, 2019. 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 adoption of the new standard did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures on the date of transition. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement CRA adopted 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”) on December 29, 2019. 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. CRA adopted the ASU using the prospective transition approach, as permitted under the new guidance. The adoption of the new standard did not have a material impact on CRA’s financial position, results of operations, cash flows, or disclosures on the date of transition. Recent Accounting Standards Not Yet Adopted 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.

Fair value of Financial Instr_2

Fair value of Financial Instruments (Tables)	9 Months Ended
	Sep. 26, 2020
Fair Value Disclosures [Abstract]
Schedule of financial instruments that are measured and recorded at fair value on a recurring basis	The following tables show CRA’s financial instruments as of September 26, 2020 and December 28, 2019 that are measured and recorded in the condensed consolidated financial statements at fair value on a recurring basis (in thousands): ​ September 26, 2020 ​ Quoted Prices in Active Significant Other Significant Unobservable ​ Level 1 Level 2 Level 3 Assets: Money market mutual funds $ 150 $ — $ — Total Assets $ 150 $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 13,480 Total Liabilities $ — $ — $ 13,480 ​ ​ December 28, 2019 ​ Quoted Prices in Active Significant Other Significant Unobservable ​ 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
Summary of the changes in the contingent consideration liability	The following table summarizes the changes in the contingent consideration liabilities (in thousands): ​ Fiscal Year-to-Date Fiscal Year Ended ​ September 26, 2020 December 28, 2019 Beginning balance $ 11,579 $ 6,197 Remeasurement of acquisition-related contingent consideration 921 3,285 Accretion 980 2,097 Ending balance $ 13,480 $ 11,579

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 26, 2020
Revenue from Contract with Customer [Abstract]
Schedule of disaggregate CRA's revenue by type of contract and geographic location	The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date Type of Contract September 26, September 28, September 26, September 28, Consulting services revenues: Fixed Price $ 26,197 $ 30,057 $ 85,968 $ 76,622 Time-and-materials 95,565 85,629 284,983 255,486 Total $ 121,762 $ 115,686 $ 370,951 $ 332,108 ​ Fiscal Quarter Ended Fiscal Year-to-Date Geographic Breakdown September 26, September 28, September 26, September 28, Consulting services revenues: United States $ 96,117 $ 92,217 $ 296,273 $ 263,221 United Kingdom 20,358 17,116 57,355 53,027 Other 5,287 6,353 17,323 15,860 Total $ 121,762 $ 115,686 $ 370,951 $ 332,108
Schedule of adjustments to allowances for accounts receivable and unbilled services related to reserves for credit risk	Adjustments to the allowances for accounts receivable and unbilled services related to reserves for credit risk are as follows (in thousands): ​ Fiscal Year-to-Date Fiscal Year Ended ​ September 26, 2020 December 28, 2019 Beginning balance $ 370 $ 639 Cumulative effect of a change in accounting principle related to ASC 326 203 — Provision for credit loss expense, net of recoveries 228 173 Amounts written off (128) (442) Ending balance $ 673 $ 370
Schedule of bad debt expense, net of recoveries	The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Bad debt expense (recovery), net $ 271 $ 142 $ 228 $ 173
Schedule of expenses are subject to reimbursement	The following expenses are subject to reimbursement (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Reimbursable expenses $ 13,150 $ 13,978 $ 44,395 $ 38,991
Schedule of opening and closing balances and result of changes in contract liability balance (in thousands)	The following table presents the closing balances of CRA’s contract liabilities (in thousands): ​ September 26, 2020 December 28, 2019 Balance at the end of the period $ 2,201 $ 4,007 CRA recognized the following revenue that was included in the contract liabilities balance as of the opening of the respective period or for performance obligations satisfied in previous periods (in thousands): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Revenue recognized for amounts included in contract liabilities at the beginning of the period $ 1,766 $ 2,405 $ 3,262 $ 4,900 Revenue recognized for performance obligations satisfied in previous periods $ 3,987 $ 3,395 $ 4,363 $ 3,606

Forgivable Loans (Tables)

Forgivable Loans (Tables)	9 Months Ended
	Sep. 26, 2020
Forgivable Loans
Schedule of forgivable loan activity	Forgivable loan activity for the fiscal year-to-date period ended September 26, 2020 and the fiscal year ended December 28, 2019 is as follows (in thousands): ​ Fiscal Year-to-Date Fiscal Year Ended ​ September 26, 2020 December 28, 2019 Beginning balance $ 55,141 $ 40,294 Advances 38,478 35,166 Repayments — (1,173) Reclassification from accrued expenses / to other assets (9,713) (1,734) Amortization (19,517) (17,700) Effects of foreign currency translation (214) 288 Ending balance $ 64,175 $ 55,141 Current portion of forgivable loans $ 6,037 $ 6,751 Non-current portion of forgivable loans $ 58,138 $ 48,390

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 26, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the fiscal year ended December 28, 2019 and the fiscal year- to-date period ended September 26, 2020, are as follows (in thousands): Balance at December 28, 2019 Goodwill $ 164,921 Accumulated goodwill impairment (76,417) Goodwill, net at December 28, 2019 88,504 Foreign currency translation adjustment and other (1) (214) Goodwill, net at September 26, 2020 (2) $ 88,290 _______________________________ (1) During the fiscal quarter ended March 28, 2020, goodwill and accumulated goodwill impairment were reduced by $4.5 million as a result of the dissolution and final liquidation of GNU123 Liquidating Corporation. (2) Goodwill, net at September 26, 2020, is comprised of goodwill of $160.2 million and accumulated impairment of $71.9 million.
Schedule of components of acquired identifiable intangible assets	The components of acquired identifiable intangible assets are as follows (in thousands): ​ September 26, 2020 December 28, 2019 Non-competition agreements $ 280 $ 324 Customer relationships 12,120 12,120 Total cost 12,400 12,444 Accumulated amortization (6,951) (5,968) Total intangible assets, net $ 5,449 $ 6,476

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 26, 2020
Accrued Liabilities, Current [Abstract]
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): ​ September 26, 2020 December 28, 2019 Compensation and related expenses $ 92,200 $ 99,993 Income taxes payable 488 430 Commissions due to non-employee experts 1,808 9,961 Other professional fees 2,116 2,077 Direct project accruals 3,622 3,201 Accrued leasehold improvements 441 2,166 Other 3,277 3,473 Total accrued expenses $ 103,952 $ 121,301

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 26, 2020
Earnings Per Share [Abstract]
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): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Net income, as reported $ 5,403 $ 5,739 $ 17,802 $ 15,984 Less: net income attributable to participating shares 22 12 53 47 Net income available to common shareholders $ 5,381 $ 5,727 $ 17,749 $ 15,937
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): ​ Fiscal Quarter Ended Fiscal Year-to-Date September 26, September 28, September 26, September 28, Basic weighted average shares outstanding 7,771 7,769 7,780 7,903 Dilutive stock options and restricted stock units 163 281 184 302 Diluted weighted average shares outstanding 7,934 8,050 7,964 8,205

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Description of Business and Fiscal Year (Details)	9 Months Ended
	Sep. 26, 2020businessSegmentarea
Description of Business
Number of broad areas of consulting services | area	2
Number of business segment | businessSegment	1

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Recent Accounting Standards Not Yet Adopted (Details) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 29, 2019	Dec. 28, 2019	Dec. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use assets	$ 123,390		$ 130,173
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use assets				$ 82,300
Recognize lease liabilities				$ 106,800
ASU 2016-13 Financial Instruments-Credit Losses Topic 326 | Retained Earnings | Cumulative-effect adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Opening balance of retained earnings at December 28, 2019		$ (200)

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 26, 2020	Dec. 28, 2019	Sep. 26, 2020	Dec. 28, 2019
Fair Value of Financial Instruments
Contingent consideration liability	$ 11,579	$ 11,579	$ 13,480	$ 11,579
Summary of changes in contingent consideration liability
Beginning balance	11,579
Ending balance	13,480	11,579
Money market mutual funds
Fair Value of Financial Instruments
Fair value per share of CRA's money market mutual fund share holdings (in dollars per share)				$ 1
Recurring | Level 1
Fair Value of Financial Instruments
Total Assets			150	$ 150
Contingent consideration liability	0	0	0	0
Total Liabilities			0	0
Summary of changes in contingent consideration liability
Beginning balance	0
Ending balance	0	0
Recurring | Level 1 | Money market mutual funds
Fair Value of Financial Instruments
Cash and cash equivalents			150	150
Recurring | Level 2
Fair Value of Financial Instruments
Total Assets			0	0
Contingent consideration liability	0	0	0	0
Total Liabilities			0	0
Summary of changes in contingent consideration liability
Beginning balance	0
Ending balance	0	0
Recurring | Level 2 | Money market mutual funds
Fair Value of Financial Instruments
Cash and cash equivalents			0	0
Recurring | Level 3
Fair Value of Financial Instruments
Total Assets			0	0
Contingent consideration liability	11,579	6,197	13,480	11,579
Total Liabilities			13,480	11,579
Summary of changes in contingent consideration liability
Beginning balance	11,579	6,197
Remeasurement of acquisition-related contingent consideration	921	3,285
Accretion	980	2,097
Ending balance	$ 13,480	$ 11,579
Recurring | Level 3 | Money market mutual funds
Fair Value of Financial Instruments
Cash and cash equivalents			$ 0	$ 0

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Disaggregation of Revenue
Consulting services revenues	$ 121,762	$ 115,686	$ 370,951	$ 332,108
United States
Disaggregation of Revenue
Consulting services revenues	96,117	92,217	296,273	263,221
United Kingdom
Disaggregation of Revenue
Consulting services revenues	20,358	17,116	57,355	53,027
Other
Disaggregation of Revenue
Consulting services revenues	5,287	6,353	17,323	15,860
Fixed Price
Disaggregation of Revenue
Consulting services revenues	26,197	30,057	85,968	76,622
Time-and-materials
Disaggregation of Revenue
Consulting services revenues	$ 95,565	$ 85,629	$ 284,983	$ 255,486

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 26, 2020	Dec. 28, 2019
Revenue from Contract with Customer [Abstract]
Cumulative effect of a change in accounting principle related to ASC 326	$ 203	$ 0

Revenue Recognition - Reserves

Revenue Recognition - Reserves for Variable Consideration and Credit Risk (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019	Dec. 28, 2019
Adjustments to the allowances for accounts receivable and unbilled services related to reserves for credit risk
Beginning balance			$ 370	$ 639	$ 639
Cumulative effect of a change in accounting principle related to ASC 326			203		0
Provision for credit loss expense, net of recoveries			228		173
Amounts written off			(128)		(442)
Ending balance	$ 673		673		$ 370
Bad debt expense, net of recoveries of previously written off allowances
Bad debt expense (recovery), net	271	$ 142	228	173
Reimbursable expenses	$ 13,150	$ 13,978	$ 44,395	$ 38,991

Revenue Recognition - Contract

Revenue Recognition - Contract Balances from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019	Dec. 28, 2019
Contract liabilities:
Balance at the end of the period	$ 2,201		$ 2,201		$ 4,007
Revenue recognized from:
Revenue recognized for amounts included in contract liabilities at the beginning of the period	1,766	$ 2,405	3,262	$ 4,900
Revenue recognized for performance obligations satisfied in previous periods	$ 3,987	$ 3,395	$ 4,363	$ 3,606

Forgivable Loans (Details)

Forgivable Loans (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 26, 2020	Dec. 28, 2019
Forgivable Loans
Allowances for forgivable loans	$ 0	$ 0
Amount of forgivable loans written-off	0	0
Forgivable loan activity
Beginning balance	55,141,000	40,294,000
Advances	38,478,000	35,166,000
Repayments	0	(1,173,000)
Reclassification from accrued expenses / to other assets	(9,713,000)	(1,734,000)
Amortization	(19,517,000)	(17,700,000)
Effects of foreign currency translation	(214,000)	288,000
Ending balance	64,175,000	55,141,000
Current portion of forgivable loans	6,037,000	6,751,000
Non-current portion of forgivable loans	$ 58,138,000	$ 48,390,000

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 28, 2020	Sep. 26, 2020	Sep. 28, 2019	Dec. 28, 2019
Changes in the carrying amount of goodwill
Goodwill		$ 160,200,000		$ 164,921,000
Accumulated goodwill impairment		(71,900,000)		(76,417,000)
Balance at the beginning of the period, Goodwill, net	$ 88,504,000	88,504,000
Foreign currency translation adjustment and other		(214,000)
Balance at the end of the period, Goodwill, net		88,290,000
Decrease to goodwill from dissolution and final liquidation of GNU123 Liquidating Corporation	$ 4,500,000
Accumulated impairment		(71,900,000)		$ (76,417,000)
Intangible assets impairment losses		$ 0	$ 0

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Acquired and Amortization (Details) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Acquired identifiable intangible assets
Total intangible asset cost	$ 12,400	$ 12,444
Accumulated amortization	(6,951)	(5,968)
Total intangible assets, net	5,449	6,476
Non-competition agreements
Acquired identifiable intangible assets
Total intangible asset cost	280	324
Customer relationships
Acquired identifiable intangible assets
Total intangible asset cost	$ 12,120	$ 12,120

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019
Accrued Liabilities, Current [Abstract]
Compensation and related expenses	$ 92,200	$ 99,993
Income taxes payable	488	430
Commissions due to non-employee experts	1,808	9,961
Other professional fees	2,116	2,077
Direct project accruals	3,622	3,201
Accrued leasehold improvements	441	2,166
Other	3,277	3,473
Total accrued expenses	103,952	121,301
Compensation and related expenses
Accrued bonuses	$ 71,300	$ 81,200

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	28.20%	14.20%	27.50%	22.90%

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Sep. 26, 2020	Sep. 28, 2019
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract]
Net income	$ 5,403	$ 5,931	$ 6,468	$ 5,739	$ 5,580	$ 4,665	$ 17,802	$ 15,984
Less: net income attributable to participating shares	22			12			53	47
Net income available to common shareholders	$ 5,381			$ 5,727			$ 17,749	$ 15,937
Reconciliation of basic to diluted weighted average shares of common stock outstanding
Basic weighted average shares outstanding	7,771,000			7,769,000			7,780,000	7,903,000
Dilutive stock options and restricted stock units	163,000			281,000			184,000	302,000
Diluted weighted average shares outstanding	7,934,000			8,050,000			7,964,000	8,205,000
Calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding
Anti-dilutive securities excluded from EPS computation (in shares)	76,399,000			63,164,000			62,808,000	47,169,000

Credit Agreement (Details)

Credit Agreement (Details) - USD ($)	Sep. 26, 2020	Dec. 28, 2019
Senior Loan Agreement
Borrowings on revolving line of credit outstanding	$ 38,000,000	$ 0
Revolving credit facility
Senior Loan Agreement
Revolving credit facility, maximum capacity	125,000,000
Borrowings on revolving line of credit outstanding	38,000,000	$ 0
Secured by letters of credit
Senior Loan Agreement
Revolving credit facility, maximum capacity	15,000,000
Amount available under revolving credit facility reduced	$ 4,700,000

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Oct. 29, 2020	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019
Subsequent Events
Common share quarterly cash dividend declared (in dollars per share)		$ 0.23	$ 0.23	$ 0.23	$ 0.20	$ 0.20	$ 0.20
Subsequent Events
Subsequent Events
Common share quarterly cash dividend declared (in dollars per share)	$ 0.26