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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 29, 2018	Feb. 22, 2019	Jun. 29, 2018
Document and Entity Information
Entity Registrant Name	CRA INTERNATIONAL, INC.
Entity Central Index Key	0001053706
Document Type	10-K
Document Period End Date	Dec. 29, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 394.5
Entity Common Stock, Shares Outstanding		8,050,334
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 417,648	$ 370,075	$ 324,779
Cost of services (exclusive of depreciation and amortization)	289,185	258,829	227,380
Selling, general and administrative expenses	89,533	86,537	70,584
Depreciation and amortization	9,995	8,945	7,896
Income from operations	28,935	15,764	18,919
GNU gain on sale of business assets and subsequent liquidation	258	250	3,836
Interest expense, net	(647)	(484)	(469)
Other income (expense), net	387	(366)	(397)
Income before provision for income taxes and noncontrolling interest	28,933	15,164	21,889
Provision for income taxes	6,461	7,463	7,656
Net income	22,472	7,701	14,233
Net (income) loss attributable to noncontrolling interest, net of tax	20	(77)	(1,345)
Net income attributable to CRA International, Inc.	$ 22,492	$ 7,624	$ 12,888
Net income per share attributable to CRA International, Inc.:
Basic (in dollars per share)	$ 2.76	$ 0.91	$ 1.50
Diluted (in dollars per share)	$ 2.61	$ 0.89	$ 1.49
Weighted average number of shares outstanding:
Basic (in shares)	8,107	8,292	8,503
Diluted (in shares)	8,570	8,497	8,601

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 22,472	$ 7,701	$ 14,233
Other comprehensive income (loss):
Foreign currency translation adjustments	(2,698)	3,922	(4,568)
Comprehensive income	19,774	11,623	9,665
Comprehensive (income) loss attributable to noncontrolling interest	20	(77)	(1,345)
Comprehensive income attributable to CRA International, Inc.	$ 19,794	$ 11,546	$ 8,320

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Current assets:
Cash and cash equivalents	$ 38,028	$ 54,035
Accounts receivable, net of allowances of $3,764 at December 29, 2018 and $5,252 at December 30, 2017	94,525	79,803
Unbilled services, net of allowances of $415 at December 29, 2018 and $704 at December 30, 2017	36,060	33,530
Prepaid expenses and other current assets	6,423	11,373
Forgivable loans	6,104	5,540
Total current assets	181,140	184,281
Property and equipment, net	48,088	44,643
Goodwill	88,208	89,000
Intangible assets, net	7,846	9,208
Deferred income taxes	9,330	8,713
Forgivable loans, net of current portion	34,190	23,088
Other assets	2,044	2,824
Total assets	370,846	361,757
Current liabilities:
Accounts payable	21,938	18,473
Accrued expenses	108,233	94,573
Deferred revenue and other liabilities	6,866	6,896
Current portion of deferred rent	1,810	1,131
Current portion of deferred compensation	3,650	908
Total current liabilities	142,497	121,981
Non-current liabilities:
Deferred compensation and other non-current liabilities	7,957	11,526
Deferred rent and facility-related non-current liabilities	23,618	20,656
Deferred income taxes	302	365
Total non-current liabilities	31,877	32,547
Commitments and contingencies (Note 14)
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; 8,010,480 and 8,297,172 shares issued and outstanding at December 29, 2018 and December 30, 2017, respectively	22,837	47,414
Retained earnings	186,229	169,390
Accumulated other comprehensive loss	(12,594)	(9,896)
Total CRA International, Inc. shareholders' equity	196,472	206,908
Noncontrolling interest		321
Total shareholders' equity	196,472	207,229
Total liabilities and shareholders' equity	$ 370,846	$ 361,757

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
CONSOLIDATED BALANCE SHEETS
Allowance for accounts receivable (in dollars)	$ 3,764	$ 5,252
Allowance for unbilled services (in dollars)	$ 415	$ 704
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	8,010,480	8,297,172
Common stock, shares outstanding	8,010,480	8,297,172

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
OPERATING ACTIVITIES:
Net income	$ 22,472	$ 7,701	$ 14,233
Adjustments to reconcile net income to net cash provided by operating activities, net of effect of acquired businesses:
Depreciation and amortization	9,942	8,859	7,875
Loss on disposal of property and equipment	54	71	2
Impairment of intangible assets		530
GNU gain on sale of business assets and subsequent liquidation	(258)	(250)	(3,836)
Deferred rent	3,596	3,171	3,260
Deferred income taxes	(829)	1,651	8,399
Share-based compensation expenses	4,819	6,616	6,867
Excess tax benefits from share-based compensation			(393)
Accounts receivable allowances	(1,410)	1,739	535
Changes in operating assets and liabilities:
Accounts receivable	(14,427)	(13,032)	(8,670)
Unbilled services	(2,987)	(7,640)	(219)
Prepaid expenses and other current assets, and other assets	5,502	6,067	(6,439)
Forgivable loans	(12,277)	5,641	10,225
Incentive cash awards	3,206	1,319
Accounts payable, accrued expenses, and other liabilities	18,786	23,415	16,324
Net cash provided by operating activities	36,189	45,858	48,163
INVESTING ACTIVITIES:
Cash consideration paid for acquisitions		(16,163)
Purchases of property and equipment	(15,447)	(9,757)	(13,023)
GNU cash proceeds from sale of business assets		250	1,100
Net cash used in investing activities	(15,447)	(25,670)	(11,923)
FINANCING ACTIVITIES:
Issuance of common stock, principally stock option exercises	2,166	6,420	2,853
Borrowings under line of credit	30,161	11,500	7,500
Payments under line of credit	(30,161)	(11,500)	(7,500)
Payments on notes payable			(75)
Tax withholding payments reimbursed by restricted shares	(3,946)	(3,262)	(1,880)
Excess tax benefits from share-based compensation			393
Cash paid on dividend equivalents	(256)	(121)
Cash dividends paid to shareholders	(5,784)	(4,941)	(1,166)
Repurchases of common stock	(27,884)	(19,528)	(19,315)
Distribution to noncontrolling interest	(43)	(419)
Net cash used in financing activities	(35,747)	(21,851)	(19,190)
Effect of foreign exchange rates on cash and cash equivalents	(1,002)	2,168	(1,659)
Net (decrease) increase in cash and cash equivalents	(16,007)	505	15,391
Cash and cash equivalents at beginning of period	54,035	53,530	38,139
Cash and cash equivalents at end of period	38,028	54,035	53,530
Noncash investing and financing activities:
Issuance of common stock for acquired business		3,044	44
Purchases of property and equipment not yet paid for	303	3,514	118
Purchases of property and equipment paid by a third party	133	1,640	92
Asset retirement obligations	223	120	844
Supplemental cash flow information:
Cash paid for taxes	4,813	7,424	6,184
Cash paid for interest	$ 509	$ 314	$ 405

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	CRA International, Inc. Shareholders' Equity	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest	Total
BALANCE at Jan. 02, 2016	$ 211,756	$ 65,731	$ 155,275	$ (9,250)	$ (688)	$ 211,068
BALANCE (in shares) at Jan. 02, 2016		8,859,231
Increase (Decrease) in Shareholders' Equity
Net income	12,888		12,888		1,345	14,233
Foreign currency translation adjustment	(4,568)			(4,568)		(4,568)
Issuance of common stock	44	$ 44				44
Issuance of common stock (in shares)		1,790
Exercise of stock options	2,853	$ 2,853				2,853
Exercise of stock options (in shares)		124,931
Share-based compensation expense for employees	6,716	$ 6,716				6,716
Restricted share vestings (in shares)		201,905
Redemption of vested employee restricted shares for tax withholding	(1,880)	$ (1,880)				(1,880)
Redemption of vested employee restricted shares for tax withholding (in shares)		(69,000)
Tax deficit on stock option exercises, expirations and restricted share vesting	(171)	$ (171)				(171)
Shares repurchased	(19,315)	$ (19,315)				(19,315)
Shares repurchased (in shares)		(784,867)
Share-based compensation expense for non-employees	146	$ 146				146
Accrued dividends on unvested shares	(83)		(83)			(83)
Cash dividends paid to shareholders	(1,166)		(1,166)			(1,166)
Equity transactions of noncontrolling interest					6	6
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
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
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 share vestings (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	(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				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 and non-employees	4,819	$ 4,819				4,819
Restricted share vestings (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	(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

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Cash dividends paid to shareholders (in dollars per share)	$ 0.71	$ 0.59	$ 0.14

Summary of Significant Accounting Policies

12 Months Ended

Dec. 29, 2018

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

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 2018, 2017 and 2016 were 52-week years.

Principles of Consolidation

The consolidated financial statements include the accounts of CRA and its wholly owned subsidiaries. In addition, as more fully explained below, the consolidated financial statements include CRA’s interest in GNU123 Liquidating Corporation (“GNU”, formerly known as NeuCo, Inc.). All significant intercompany transactions and accounts have been eliminated in consolidation.

GNU Interest

Prior to liquidation of GNU on December 18, 2018, CRA’s ownership interest in GNU was 55.89%. GNU's financial results have been consolidated with CRA, and the portion of GNU's results allocable to its other owners is shown as “noncontrolling interest.”

GNU's reporting schedule is based on calendar month-ends, but its fiscal year end is the last Saturday of November. CRA's results could include a few days reporting lag between CRA's year end and the most recent financial statements available from GNU. CRA does not believe that the reporting lag will have a significant impact on CRA's consolidated statements of operations or financial condition.

On April 13, 2016, a buyer acquired substantially all of the business assets and assumed substantially all of the liabilities of GNU for a cash purchase price of $1.4 million. Of this amount, $1.1 million was received at closing, with the remaining $0.3 million payable on or after April 13, 2017, subject to contingencies, as outlined in the asset purchase agreement, which remaining amount was paid in full on May 3, 2017. GNU recognized a gain on sale of its business assets of $0.3 million during the second quarter of fiscal 2017, of which $0.2 million is attributed to CRA, and recognized a gain on sale of $3.8 million during the second quarter of fiscal 2016, of which $2.1 million is attributed to CRA. GNU was dissolved on December 15, 2017. Subsequent to the dissolution, CRA received a partial distribution of $0.6 million in accordance with the asset purchase agreement. CRA received the final distributions from GNU, which were immaterial, in 2018. Upon liquidation of GNU during fiscal 2018, CRA recognized a gain of $0.3 million.

GNU’s revenues, which are comprised of software sales and maintenance service revenue, included in CRA’s consolidated statement of operations for fiscal 2016 totaled approximately $0.8 million. GNU did not have any revenue during fiscal 2018 or fiscal 2017 due to the cessation of the business in April 2016. GNU’s total net income included in CRA’s consolidated statements of operations for fiscal 2017 and fiscal 2016 was approximately $0.2 million, and $3.0 million, respectively. GNU’s net income, net of amounts allocable to its other owners, included in CRA’s consolidated statements of operations for fiscal 2017 and fiscal 2016 was approximately $0.1 million and $1.7 million, respectively.

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, 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 compensation, accrued exit costs, and other accrued expenses. These items are monitored and analyzed by CRA for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. CRA bases its estimates on historical experience and various other assumptions that CRA believes to be reasonable under the circumstances. Actual results may differ from those estimates if CRA’s assumptions based on past experience or other assumptions do not turn out to be substantially accurate.

Revenue Recognition

CRA derives substantially all of its revenues from the performance of professional services. The contracts that CRA enters into and operates under specify whether the engagement will be billed on a time‑and‑materials or a fixed‑price basis. These engagements generally last three to six months, although some of CRA’s engagements can be much longer in duration.

Prior to adopting ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") on December 31, 2017, as discussed below, 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 were 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 the Company in fulfilling its performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants and other reimbursable expenses.

The following discussion of CRA’s revenue recognition accounting policies is based on the accounting principles that were used to prepare the fiscal year 2018 consolidated financial statements included in this Annual Report on Form 10-K. On December 31, 2017, CRA adopted ASC 606. This standard replaces existing revenue recognition rules with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. Please refer to the section captioned “Recent Accounting Standards Adopted" below for further discussion of recently issued accounting standards.

CRA evaluates its revenue contracts with customers based on the five-step model under ASC 606. Revenues are recognized, subject to the satisfaction of other criteria as described in ASC 606, for enforceable contracts. Revenues are deferred until all criteria for an enforceable contract are met.

For enforceable contracts, revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised consulting services are transferred to customers. Revenue is measured as the amount of consideration CRA expects to receive in exchange for transferring consulting services to a customer (the “transaction price”). Variable consideration to be included in the transaction price is estimated based on the most likely amount to which CRA expects to be entitled if it is probable that a significant future reversal of cumulative revenue under the contract will not occur. For contracts that contain multiple performance obligations, the transaction price is allocated based on estimated relative standalone selling prices of the promised consulting services underlying each performance obligation. The transaction price also includes reimbursable expenses. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue.

CRA maintains accounts receivable 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.

Cash and Cash Equivalents

Cash equivalents consist principally of money market funds with maturities of three months or less when purchased. As of December 29, 2018, 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.

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 29, 2018 and December 30, 2017 that are measured and recorded in the consolidated financial statements at fair value on a recurring basis (in thousands):


	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


	December 30, 2017
	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	$	5,006	$	—	$	—
Total Assets	$	5,006	$	—	$	—
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,137
Total Liabilities	$	—	$	—	$	5,137

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 prior acquisitions. 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 financial 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 following table summarizes the changes in the contingent consideration liabilities over the fiscal year ended December 29, 2018 and the fiscal year ended December 30, 2017 (in thousands):


	December 29,		December 30,
	2018		2017
Beginning balance	$	5,137	$	549
Acquisitions		—		2,357
Remeasurement of acquisition-related contingent consideration		(244)		1,155
Accretion		1,304		1,328
Payments		—		(299)
Effects of foreign currency translation		—		47
Ending balance	$	6,197	$	5,137

CRA’s financial instruments, including cash, accounts receivable, loans and advances to employees and non‑employee experts, accounts payable, and accrued expenses, are carried at cost, which approximates their fair value because of the short‑term maturity of these instruments or because their stated interest rates are indicative of market interest rates.

Goodwill

In accordance with ASC Topic 350, “Intangibles—Goodwill and Other” (“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 2018 goodwill impairment analysis, it operates under one reporting unit, which is its consulting services. Prior to April 13, 2016, CRA operated under two reporting units, which were its consulting services and GNU.

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 of five years. Customer relationship intangible assets are amortized on a straight line basis over 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.

Leases and Deferred Rent

CRA leases all of its office space. Leases are evaluated and classified as operating or capital leases for financial reporting purposes. For leases that contain rent escalations and rent holidays, CRA records the total rent payable during the lease term on a straight‑line basis over the term of the lease and records the difference between the rents paid and the straight‑line rent as deferred rent. Additionally, any tenant improvement allowances received from the lessor are recorded as a reduction to rent expense.

Impairment of Long‑Lived Assets

CRA reviews the carrying value of its long‑lived assets (primarily property and equipment and intangible assets) to assess the recoverability of these assets whenever events or circumstances indicate that impairment may have occurred. Factors CRA considers important that could trigger an impairment review include the following:

a significant underperformance relative to expected historical or projected future operating results;

a significant change in the manner of CRA’s use of the acquired asset or the strategy for CRA’s overall business; and

a significant negative industry or economic trend.

If CRA determines that an impairment review is required, CRA would review the expected future undiscounted cash flows to be generated by the assets or asset groups. If CRA determines that the carrying value of long‑lived assets or asset groups may not be recoverable, CRA would measure any impairment based on a projected discounted cash flow method using a discount rate determined by CRA to be commensurate with the risk inherent in CRA’s current business model. If impairment is indicated through this review, the carrying amount of the assets would be reduced to their estimated fair value.

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.

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 variable accounting in accordance with ASC Topic 718 and ASC Topic 505‑50, “Equity‑Based Payments to Non‑Employees” (formerly Emerging Issues Task Force 96‑18, “Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services”), and recognizes the cost over the related vesting period.

Deferred Compensation

CRA accounts for performance and service based cash awards using a prospective accrual method. Under the requirements of ASC Topic 710, “Compensation General” (“ASC Topic 710”) to the extent the terms of the contract attribute all or a portion of the expected future benefits to a period of service greater than one year, the cost of those benefits are accrued over the period of the employee or non-employee's service in a systematic and rational manner. CRA has implemented a process that requires the liability to be re-evaluated on a quarterly basis.

The required service period typically ranges from three to six years starting at the beginning of the awards measurement period. A recipient of such an award is expected to be affiliated with CRA for the entire measurement period. If a recipient terminates affiliation with CRA during the measurement period, the amount paid will be determined in accordance with the recipient’s specific contract provisions.

Business Combinations

CRA recognizes and measures identifiable assets acquired, and liabilities assumed, of its acquirees as of the acquisition date at fair value. Fair value measurements require extensive use of estimates and assumptions, including estimates of future cash flows to be generated by the acquired assets. CRA recognizes and measures contingent consideration at fair value as of the acquisition date using a Monte Carlo simulation. Contingent consideration obligations that are classified as liabilities are remeasured at fair value each reporting period with the changes in fair value resulting from the passage of time, revised expectations of performance, or changes in the timing or amount of ultimate settlement from the initial measurement recognized in the consolidated statements of operations.

Income Taxes

CRA accounts for income taxes using the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if it is more likely than not that such assets will not be realized.

In addition, the calculation of CRA’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several different tax jurisdictions. CRA records liabilities for estimated tax obligations resulting in a provision for taxes that may become payable in the future in accordance with ASC Topic 740‑10, “Income Taxes,” which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. CRA includes accrued interest and penalties, if any, related to uncertain tax positions in income tax expense.

Foreign Currency Translation

Balance sheet accounts of CRA’s foreign subsidiaries are translated into U.S. dollars at year‑end exchange rates and operating accounts are translated at average exchange rates for each year. The resulting translation adjustments are recorded in shareholders’ equity as a component of accumulated other comprehensive income (loss). Foreign currency transactions are translated at current exchanges rates, with adjustments recorded in the statement of operations. The effect of transaction gains and losses recorded in income before provision for income taxes amounted to gains of $0.4 million for fiscal 2018, and losses of $0.4 million and $0.4 million for fiscal 2017, and fiscal 2016, respectively.

Recent Accounting Standards Adopted

Revenue from Contracts with Customers

CRA adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”), which established ASC Topic 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, Revenue Recognition (“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.

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.

Recent Accounting Standards Not Yet Adopted

Leases (Topic 842)

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which supersedes FASB ASC Topic 840, Leases (“ASC 840”). ASU 2016-02 establishes a comprehensive new lease accounting model. The new standard clarifies the definition of a lease, requires a dual approach to lease classification similar to current lease classifications, and causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset, subject to certain permitted accounting policy elections. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). In July 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”). ASU 2018-10 clarifies or corrects unintended application of guidance related to ASU 2016-02. The new standard is effective for the Company for interim and annual periods beginning December 30, 2018, the beginning of fiscal 2019.

CRA will elect the package of practical expedients allowed under ASU 2016-02 and ASU 2018-10, which allows 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 will elect an accounting policy to exclude from the consolidated balance sheets the right-of-use 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 the Company is reasonably certain to exercise.

CRA plans to adopt ASU 2016-02 using the additional modified retrospective transition method provided by ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. Under this approach, the cumulative-effect of the transition adjustments are applied to the applicable opening balances of the consolidated balance sheets in the period of adoption. However, comparative periods prior to the adoption date and their respective disclosures will be presented using the legacy guidance of ASC 840.

CRA is currently in the process of finalizing its evaluation of the impact of adopting Topic 842, including finalizing its determination of the incremental borrowing rates to be used to calculate the present value of its lease payments. The Company will finalize its evaluation during the first fiscal quarter of 2019. As a result of adopting the new standard, CRA currently estimates that the Company will recognize right-of-use assets between approximately $66.0 million and $86.0 million and recognize lease liabilities between approximately $89.0 million and $112.0 million as of December 30, 2018. The difference between the amount of right-of-use assets and lease liabilities recognized will be an adjustment to deferred rent. However, the final amounts could vary from the ranges described above based upon the finalization of our incremental borrowing rates.

CRA believes that the adoption of ASC 842 will not have a material impact on its results of operations or cash flows. CRA does not expect the adoption of ASC 842 to impact any of its existing debt covenants.

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. Early adoption is permitted for interim and annual periods beginning after December 15, 2018. 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 has not yet determined the effects, if any, that the adoption of the amendments may have on its financial position, results of operations, cash flows, or disclosures. CRA plans to adopt the amendments during the first quarter of 2020.

Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting

In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting (Topic 718) (“ASU 2018-07”). 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 is effective for interim and annual periods beginning after December 15, 2018. CRA plans to adopt ASU 2018-07 as of December 30, 2018. The new guidance requires a remeasurement of nonemployee awards at fair value as of the adoption date and disclosure of the nature of and reason for the change in accounting principle and, if applicable, quantitative information about the cumulative effect of the change on retained earnings or other components of shareholders’ equity. CRA believes that the adoption of the ASU will not have any impact on its financial position, results of operations, cash flows, or disclosures.

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 has not yet determined the effects, if any, that the adoption of ASU 2018-10 may have on its financial position, results of operations, cash flows, or disclosures.

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 new standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. CRA is currently evaluating the effects, if any, the adoption of ASU 2018-15 may have on its financial position, results of operations, cash flows, or disclosures.

Forgivable Loans

12 Months Ended

Dec. 29, 2018

Forgivable Loans

Forgivable Loans

2. 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 three 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 2018, 2017 and 2016 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 2018 and 2017, no allowances or write offs of these loans were recorded.

Forgivable loan activity for fiscal years 2018 and 2017 is as follows (in thousands):


	December 29,		December 30,
	2018		2017
Beginning balance	$	28,628	$	33,962
Advances		30,572		11,672
Repayments		(3,396)		(2,135)
Reclassification to other assets		—		(1,100)
Amortization		(15,329)		(14,155)
Effects of foreign currency translation		(181)		384
Ending balance	$	40,294	$	28,628
Current portion of forgivable loans	$	6,104	$	5,540
Non-current portion of forgivable loans	$	34,190	$	23,088

At December 29, 2018 and December 30, 2017, CRA had other loans to current and former employees included in other assets on the consolidated balance sheet, amounting to $0.1 million and $0.3 million, respectively, net of allowances.

Business Acquisitions

12 Months Ended

Dec. 29, 2018

Business Acquisitions

Business Acquisitions

3. Business Acquisitions

On January 31, 2017, CRA acquired substantially all of the assets and assumed certain liabilities of C1 Consulting LLC, an independent consulting firm, and its wholly-owned subsidiary C1 Associates (collectively, "C1") for initial consideration comprised of cash and CRA restricted common stock. The asset purchase agreement provided for additional purchase consideration to be paid for up to four years 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. The following table is the final allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed (in thousands):


Assets Acquired:
Accounts receivable and unbilled services	$	2,306
Other current assets		10
Total current assets		2,316
Property and equipment		206
Other non-current assets		106
Intangible assets		8,500
Goodwill		12,994
Total assets acquired	$	24,122


Liabilities Assumed:
Deferred revenue	$	1,950
Accrued expenses and other liabilities		652
Total current liabilities		2,602
Net assets acquired	$	21,520

The intangible assets acquired are comprised of non-competition agreements and the value of customer relationships, the fair value of which was determined using the incremental income method and multi-period excess earnings method, respectively. The non-compete agreements are being amortized over the stated term of five years on a straight-line basis. The customer relationships intangible is being amortized over a ten year life on a straight-line basis, which approximates the expected pattern of economic benefit from this asset. The fair value of the contingent consideration was determined using a Monte Carlo simulation. CRA is unable to provide a range of possible outcomes for the expected future payment of the contingent consideration due to its limited post acquisition experience with C1 and the uncertainty of achieving revenue targets over the remaining measurement period of this obligation. The fair value of the contingent acquisition liability is reassessed on a quarterly basis by CRA using additional information as it becomes available, and any change in the fair value estimate will be recorded in the earnings of that period.

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.

Goodwill and Intangible Assets

12 Months Ended

Dec. 29, 2018

Goodwill and Intangible Assets

Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

The changes in the carrying amount of goodwill for fiscal 2018 and fiscal 2017 are as follows (in thousands):


			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


			Accumulated
	Goodwill,		impairment		Goodwill,
	gross		losses		net
Balance at December 31, 2016	$	151,181	$	(76,417)	$	74,764
Goodwill adjustment related to acquisition		12,994		—		12,994
Effect of foreign currency translation		1,242		—		1,242
Balance at December 30, 2017	$	165,417	$	(76,417)	$	89,000

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 2018 or fiscal 2016. 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 29,		December 30,
	2018		2017
Non-competition agreements, net of accumulated amortization of $544 and $464, respectively	$	180	$	260
Customer relationships, net of accumulated amortization of $4,454 and $3,172, respectively		7,666		8,948
Total, net of accumulated amortization of $4,998 and $3,636, respectively	$	7,846	$	9,208

Amortization expense related to intangible assets was $1.4 million, $1.5 million, and $0.9 million in fiscal 2018, fiscal 2017, and fiscal 2016, respectively. Amortization of intangible assets held at December 29, 2018 for the next five fiscal years and thereafter is expected to be as follows (in thousands):


	Amortization
Fiscal Year	Expense
2019	$	1,370
2020		1,368
2021		927
2022		827
2023		822
Thereafter		2,532
	$	7,846

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Property and Equipment

12 Months Ended

Dec. 29, 2018

Property and Equipment

Property and Equipment

5. Property and Equipment

Property and equipment consist of the following (in thousands):


	December 29,		December 30,
	2018		2017
Computer, office equipment and software	$	27,082	$	25,447
Leasehold improvements		40,782		37,907
Furniture		11,326		8,991
Total cost		79,190		72,345
Accumulated depreciation and amortization		(31,102)		(27,702)
Total property and equipment, net	$	48,088	$	44,643

Depreciation expense was $8.6 million, $7.4 million, and $7.0 million in fiscal 2018, fiscal 2017, and fiscal 2016, respectively.

Long-lived assets by geographic location are as follows (in thousands):


	December 29,		December 30,
	2018		2017
Long-lived assets (property and equipment, net):
United States	$	39,654	$	37,192
United Kingdom		6,890		5,552
Other		1,544		1,899
Total foreign		8,434		7,451
Total long-lived assets (property and equipment, net)	$	48,088	$	44,643

Accrued Expenses

12 Months Ended

Dec. 29, 2018

Accrued Expenses

Accrued Expenses

6. Accrued Expenses

Accrued expenses consist of the following (in thousands):


	December 29,		December 30,
	2018		2017
Compensation and related expenses	$	90,711	$	80,105
Income taxes payable		514		153
Other		17,008		14,315
Total	$	108,233	$	94,573

As of December 29, 2018 and December 30, 2017, $73.9 million and $63.8 million, respectively, of accrued bonuses for fiscal 2018 and fiscal 2017 were included above in “Compensation and related expenses”. Additionally, as of December 29, 2018, “Other” accrued expenses included $9.6 million of commissions due to senior consultants, $0.7 million of direct project accruals, $6.6 million of operating expense accruals and $0.1 million of accrued leasehold improvements. As of December 30, 2017, “Other” accrued expenses consisted principally of $6.1 million of commissions due to senior consultants, $1.3 million of direct project accruals, $4.4 million of operating expense accruals and $2.5 million of accrued leasehold improvements.

Credit Agreement	12 Months Ended
Credit Agreement	Dec. 29, 2018
Credit Agreement
Credit Agreement	7. 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 29, 2018 or December 30, 2017. As of December 29, 2018, the amount available under this revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $3.9 million. 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 $29.1 million and $27.3 million in net assets as of December 29, 2018 and December 30, 2017, 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 29, 2018, CRA was in compliance with the covenants of its credit agreement.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 29, 2018
Employee Benefit Plans
Employee Benefit Plans	8. 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 $3.5 million, $3.1 million, and $2.7 million for fiscal 2018, fiscal 2017, and fiscal 2016, respectively.

Net Income Per Share

12 Months Ended

Dec. 29, 2018

Net Income Per Share

Net Income Per Share

9. 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 significant for fiscal 2018, fiscal 2017 or fiscal 2016.

The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands):


	Fiscal Year 2018		Fiscal Year 2017		Fiscal Year 2016
Net income attributable to CRA as reported	$	22,492	$	7,624	$	12,888
Less: net income attributable to participating shares		108		51		95
Net income attributable to CRA common shareholders	$	22,384	$	7,573	$	12,793

For fiscal 2018, fiscal 2017, and fiscal 2016, the following is a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands):


	Fiscal Year	Fiscal Year	Fiscal Year
	2018	2017	2016
Basic weighted average shares outstanding	8,107	8,292	8,503
Common stock equivalents:
Stock options and restricted stock units	463	205	98
Diluted weighted average shares outstanding	8,570	8,497	8,601

For fiscal 2018, fiscal 2017, and fiscal 2016, the following table presents net income per share attributable to CRA:


	Fiscal Year		Fiscal Year		Fiscal Year
	2018		2017		2016
Basic	$	2.76	$	0.91	$	1.50
Diluted	$	2.61	$	0.89	$	1.49

For fiscal 2018, fiscal 2017, and fiscal 2016, 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 29,612, 75,004, and 581,546 shares, respectively. These share-based awards were anti-dilutive because their exercise price exceeded the average market price over the respective period.

Share-Based Compensation

12 Months Ended

Dec. 29, 2018

Share-Based Compensation

Share-Based Compensation

10. Share‑Based Compensation

CRA recorded approximately $4.8 million, $6.6 million, and $6.9 million of compensation expense for fiscal 2018, fiscal 2017, and fiscal 2016, 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 29, 2018, 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 also 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 independent contractors, 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 29, 2018 was 747,926.

Stock Options. A summary of option activity during fiscal 2018 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 30, 2017	665,717	$	24.14		$	13,851
Fiscal 2018:
Granted	22,443		47.45
Exercised	(100,771)		21.50		$	2,955
Expired	—		—
Forfeited	(1,408)		30.97		$	28
Outstanding at December 29, 2018	585,981	$	25.48	3.61	$	9,286
Options exercisable at December 29, 2018	469,697	$	24.02	3.04	$	7,962
Vested or expected to vest at December 29, 2018	585,383	$	25.46	3.61	$	9,282

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, fiscal 2017, and fiscal 2016 was $19.96, $11.54, and $9.93, respectively. The fair market value of the stock options at the date of grant was estimated using the Black‑Scholes option‑pricing model with the following weighted average assumptions:


	2018		2017		2016
Risk-free interest rate	2.8	%	2.1	%	1.3	%
Expected volatility	39	%	32	%	36	%
Expected dividend yield	1.7	%	1.5	%	1.5	%
Forfeiture rate	0.4	%	0.4	%	0.5	%
Weighted average expected life (in years)	10.00		4.49		4.58

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 2018, fiscal 2017, and fiscal 2016 was approximately $3.0 million, $5.4 million, and $0.7 million, respectively.

The following table provides a roll-forward of the outstanding non-vested stock options over fiscal 2018:


	Options
		Weighted-Average
	Number of	Grant Date
	Shares	Fair Value
Non-vested at December 30, 2017	209,078	$	8.98
Granted	22,443		19.96
Vested	(113,829)		9.41
Forfeited	(1,408)		10.08
Non-vested at December 29, 2018	116,284	$	10.64

The total fair value of stock options that vested during fiscal 2018, fiscal 2017, and fiscal 2016 was $1.1 million, $1.5 million, and $1.5 million, respectively. As of December 29, 2018, there was $1.1 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 29, 2018 was $0.9 million, which is expected to be recognized over a weighted-average period of 2.7 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 2018:


	Shares of Restricted Stock
		Weighted-Average
	Number of	Grant Date
	Shares	Fair Value
Non-vested at December 30, 2017	52,725	$	27.97
Granted	8,256		54.50
Vested	(24,975)		26.02
Forfeited	—		—
Non-vested at December 29, 2018	36,006	$	35.41

The total fair value of shares of restricted stock that vested during fiscal 2018, fiscal 2017, and fiscal 2016 was $0.6 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 29, 2018 was $2.3 million, which is expected to be recognized over a weighted-average period of 2.5 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 2018:


	Time-Vesting
	Restricted Stock Units
		Weighted-Average
	Number of	Grant Date
	Units	Fair Value
Non-vested at December 30, 2017	119,820	$	27.90
Granted	21,901		46.90
Vested	(61,258)		27.18
Forfeited	(704)		32.53
Non-vested at December 29, 2018	79,759	$	33.64

The total fair value of time-vesting restricted stock units that vested during fiscal 2018, fiscal 2017, and fiscal 2016 was $1.7 million, $2.0 million, and $1.9 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 2018. 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 30, 2017	280,595	$	25.51
Granted	18,701		47.45
Vested	(151,276)		22.89
Forfeited	(26,070)		21.78
Non-vested at December 29, 2018	121,950	$	32.92

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 2018, fiscal 2017, and fiscal 2016, there were no offering periods under this plan and no shares were issued. As of December 29, 2018, 211,777 shares are available for grant under the 1998 ESPP.

Revenue Recognition

12 Months Ended

Dec. 29, 2018

Revenue Recognition

Revenue Recognition

11. Revenue Recognition

CRA offers consulting services in two broad lines: (1) litigation, regulatory, and financial consulting; and (2) management consulting. Together, these two service lines comprised all of CRA's consolidated revenues during the fiscal year ended December 29, 2018. CRA recognizes all project revenue on a gross basis based on consideration of the criteria set forth in ASC Topic 606-10-55, Principal versus Agent Considerations. 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.

CRA evaluates its revenue contracts with customers 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 revenue when (or as) each performance obligation is satisfied. CRA evaluates its contracts for legal enforceability at contract inception and subsequently throughout CRA’s relationship with its customers. If legal enforceability with regard to the rights and obligations exist for both CRA and the customer, then CRA has an enforceable contract and revenue recognition is permitted subject to the satisfaction of the other criteria. If, at the outset of an arrangement, CRA determines that a contract with enforceable rights and obligations does not exist, revenues are deferred until all criteria for an enforceable contract are met.

Revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised consulting services are transferred to customers. Revenue is measured as the amount of consideration CRA expects to receive in exchange for transferring consulting services to a customer (the “transaction price”). To the extent the transaction price includes variable consideration, CRA estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which it expects to be entitled. Variable consideration is included in the transaction price if, in CRA’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of CRA’s anticipated performance and all information (historical, current and forecasted) that is reasonably available. The transaction price also includes reimbursable expenses. 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 29, 2018.

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of each of the performance obligations. CRA determines standalone selling prices based on the price at which the performance obligation is sold separately. 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.

Contracts are often modified to account for changes in project scope. Contract modifications exist when there is a change in the scope or price (or both) of a contract that is approved by the parties to the contract. Generally, contract modifications for consulting services are not distinct from the existing contract as the modification expands CRA’s consulting services, contemplated by the existing contract and thus are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis.

Consulting services revenue is generally recognized over time as the services are delivered to the customer based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the consulting services to be provided. CRA generally measures its progress on time and materials projects based on the hours incurred and the stated rates outlined in our retention letters with our customers. For fixed price projects, progress is measured on a proportional performance basis. CRA uses the proportional performance measure of progress when it best depicts the transfer of value to the customer which occurs as it incurs costs on its contract. Under the proportional performance measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

Consulting Services Revenues

The contracts CRA enters into and operates under specify whether the engagements are billed on a time-and-materials or a fixed-price basis. Most of CRA's revenue is derived from time-and-materials service contracts. Revenues from time-and-materials service contracts are recognized as services are provided based upon hours worked and contractually agreed-upon hourly rates, as well as indirect fees based upon hours worked. Revenues from a majority of CRA's fixed-price engagements are recognized on a proportional performance method based on the ratio of costs incurred (input method), substantially all of which are labor-related, to the total estimated project costs. 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
Type of Contract	December 29,		December 30,		December 31,
	2018		2017		2016
	(52 weeks)		(52 weeks) (1)		(52 weeks) (1) (2)
Consulting services revenues
Fixed Price	$	95,096	$	93,570	$	55,100
Time-and-materials		322,552		276,505		268,853
Other		—		—		826
Total	$	417,648	$	370,075	$	324,779


	Year Ended		Year Ended		Year Ended
Geographic Breakdown	December 29,		December 30,		December 31,
	2018		2017		2016
	(52 weeks)		(52 weeks) (1)		(52 weeks) (1) (2)
Consulting services revenues
United States	$	329,678	$	295,232	$	251,962
United Kingdom		65,874		53,644		52,509
Other		22,096		21,199		20,308
Total	$	417,648	$	370,075	$	324,779

(1)

As noted above, prior period amounts have not been adjusted under the modified retrospective method.

(2)

GNU's financial information is included above and is immaterial to the overall consolidated financial statements. GNU’s revenues for fiscal 2016 were $0.8 million. Within the “Type of Contract” table, these revenues are presented within the “Other” category. Within the “Geographic Breakdown” table, these revenues are presented within the “United States” category. As previously disclosed, no revenues were recorded for GNU in fiscal 2018 or fiscal 2017.

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 variable consideration reserves, which are based on actual price concessions and those expected to be extended to CRA customers, are classified as reductions of accounts receivable and unbilled services. These calculated estimates take into consideration CRA’s historical experiences of prior period revenues that were subsequently reversed due to these price concessions. Overall, these reserves reflect CRA’s best estimates of the amount of consideration to which it is entitled based on the terms of its contracts with its customers. The amount of variable consideration that is included in the transaction price may be constrained, and is included in the net transaction price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. 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.

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. CRA maintains accounts receivable allowances for estimated losses resulting from clients' failures to make required payments. CRA bases its estimates on historical collection experience, current trends, and credit policy. In determining these estimates, CRA examines historical write‑offs of its receivables and reviews client accounts to identify any specific customer collection issues. If the financial condition of any of CRA’s customers were to deteriorate, resulting in an impairment of their ability or intent to make payment, additional allowances may be required. Expenses associated with these allowances are reported as a component of Selling, general and administrative expenses.

A rollforward of the variable consideration and allowances for accounts receivable, which includes an allowance for doubtful accounts of $0.7 million at the end of the year, is as follows (in thousands):


	Fiscal		Fiscal
	Year		Year
	2018		2017 (1)
Balance at beginning of year	$	5,252	$	3,454
Increases to reserves		3,675		5,447
Amounts written off		(5,173)		(3,660)
Effects of foreign currency translation		10		11
Balance at end of year	$	3,764	$	5,252

(1)

The allowances for fiscal 2017 were determined under ASC 605.

A rollforward of the variable consideration and allowances for unbilled services is as follows (in thousands):


	Fiscal		Fiscal
	Year		Year
	2018		2017 (1)
Balance at beginning of year	$	704	$	474
Increases to reserves		4,755		2,459
Amounts written off		(5,042)		(2,235)
Effects of foreign currency translation		(2)		6
Balance at end of year	$	415	$	704

(1) The allowances for fiscal 2017 were determined under ASC 605.

During fiscal 2018 and fiscal 2016, bad debt expense of $1.2 million and $1.1 million, respectively, was reported as a component of selling, general and administrative expenses related to credit-related losses. No bad debt expense was reported during fiscal 2017.

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 29,		December 30,		December 31,
	2018		2017		2016
	(52 weeks)		(52 weeks)		(52 weeks)
Reimbursable expenses	$	48,817	$	41,465	$	34,482

Transaction Price Allocated to Future Performance Obligations

ASC 606 requires that CRA disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of December 29, 2018. The guidance provides certain practical expedients that limit this requirement for (1) contracts with an original expected length of one year or less and (2) contracts for which revenue is recognized at the amount to which CRA has the right to invoice for consulting services performed. Given the nature of its business, CRA does not disclose the value of unsatisfied performance obligations as the practical expedients apply to its unsatisfied performance obligations as of December 29, 2018.

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. These contract assets are included in accounts receivable, net and unbilled services, net within the consolidated balance sheets. The contract assets balance was immaterial as of December 29, 2018 and December 30, 2017.

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.

During the year ended December 29, 2018, CRA recognized the following revenue as a result of changes in the contract liability balance (in thousands):


	Year Ended
	December 29,
	2018
Revenue recognized from:	(52 weeks)
Amounts included in contract liabilities at the beginning of the year	$	3,149
Performance obligations satisfied in previous years	$	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.

Costs to Obtain or Fulfill a Customer Contract

Prior to the adoption of ASC 606, CRA expensed bonuses paid to its employees. Under ASC 606, bonuses are not linked or paid based on specific contract billings or revenues and therefore do not represent incremental costs of obtaining a contract with a customer. Furthermore, even if the bonuses paid were incremental, the practical expedient in ASC 340 would apply, allowing for incremental costs of obtaining contracts to be expensed as incurred if the amortization period of the assets that it otherwise would have recognized is one year or less. As such, these costs are included in both costs of services and selling, general, and administrative expenses.

Income Taxes

12 Months Ended

Dec. 29, 2018

Income Taxes

Income Taxes

12. Income Taxes

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. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared, and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared, or analyzed.

SAB 118 summarizes a three-step process to be applied at each reporting period to account for and disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the change in tax law where accounting is not complete, but a reasonable estimate has been determined; and (3) current or deferred tax amounts reflected in accordance with law prior to the enactment of the change in tax law because the accounting of the effects of the change in tax law are not complete and a reasonable estimate has not been determined, together with qualitative disclosure of the effects of the changes in tax law for which the accounting is not compete, the reason why the accounting is not complete, and the additional information that is needed to be obtained, prepared or analyzed in order to complete the accounting. 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 has completed its accounting for all the tax effects of the Tax Act. As further discussed below, during fiscal 2018, CRA recognized an adjustment of $0.3 million to the provisional amounts recorded at December 30, 2017 and included this adjustment as a component of income tax expense from continuing operations.

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. Upon refinement of its calculations during fiscal 2018, CRA adjusted its provisional amount by $0.1 million. Additionally, as a result of anticipated guidance in connection with the deductibility of compensation paid to certain executive officers for "qualified performance-based compensation," CRA recorded a provisional amount of $0.2 million. Both adjustments were included as a component of income tax expense from continuing operations, the impact of which was to increase the fiscal 2018 effective tax rate from 21.4% to 22.3%. CRA considers its accounting for the remeasurement of deferred tax assets and liabilities as well as accounting for changes to executive compensation to be complete.

Foreign Tax Effects

The Tax Act includes a one-time mandatory repatriation transition tax on the net accumulated earnings and profits of a U.S. taxpayer's foreign subsidiaries. At December 30, 2017, CRA did not record any transition tax liability as it is in an accumulated deficit position with respect to its foreign subsidiaries based on its earnings and profits ("E&P") analysis. CRA considers its accounting for the transition tax to be complete.

The Tax Act imposes an additional minimum tax on certain corporations that make certain "base erosion payments" to foreign related parties. This Base Erosion Anti-Abuse Tax, or "BEAT," is in addition to any other tax imposed on "applicable taxpayers." An applicable taxpayer is a corporation that has average annual gross receipts for the three-taxable year period ending with the preceding tax year of at least $500.0 million and has a "base erosion percentage" of three percent or more for the tax year. Due to CRA not meeting the revenue threshold, this tax is not applicable to CRA.

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 has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. As such, CRA has included a nominal 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 29, 2018 to be $0.1 million.

The components of income before provision for income taxes are as follows (in thousands):


	2018		2017		2016
	(52 weeks)		(52 weeks)		(52 weeks)
Income before provision for income taxes:
U.S.	$	21,118	$	12,248	$	16,905
Foreign		7,815		2,916		4,984
Total	$	28,933	$	15,164	$	21,889

The provision (benefit) for income taxes consists of the following (in thousands):


	Fiscal		Fiscal		Fiscal
	Year		Year		Year
	2018		2017		2016
	(52 weeks)		(52 weeks)		(52 weeks)
Currently payable:
Federal	$	4,015	$	4,515	$	(770)
Foreign		1,487		493		664
State		1,788		804		(637)
		7,290		5,812		(743)
Deferred:
Federal		(384)		1,809		5,562
Foreign		(88)		(85)		124
State		(357)		(73)		2,713
	$	(829)	$	1,651	$	8,399
	$	6,461	$	7,463	$	7,656

A reconciliation of CRA’s tax rates with the federal statutory rate is as follows:


	Fiscal Year		Fiscal Year		Fiscal Year
	2018		2017		2016
Federal statutory rate	21.0	%	35.0	%	35.0	%
State income taxes, net of federal income tax benefit	4.9		3.9		6.1
Tax law changes	0.9		23.7		(0.3)
Share-based compensation	(6.3)		(15.8)		—
Nondeductible/nontaxable items	2.9		5.1		3.0
Foreign rate differential	—		(2.8)		(3.3)
Losses benefited/change in valuation allowance	—		(0.3)		(4.9)
Uncertain tax positions	(1.1)		(0.1)		(0.2)
Other	—		0.5		(0.4)
	22.3	%	49.2	%	35.0	%

The components of CRA’s deferred tax assets (liabilities) are as follows (in thousands):


	December 29,		December 30,
	2018		2017
Deferred tax assets:
Accrued compensation and related expense	$	12,691	$	11,445
Allowance for doubtful accounts		1,694		2,009
Net operating loss carryforwards		402		479
Accrued expenses and other		5,298		4,356
Total gross deferred tax assets		20,085		18,289
Less: valuation allowance		—		(8)
Total deferred tax assets net of valuation allowance		20,085		18,281
Deferred tax liabilities:
Goodwill and other intangible asset amortization		4,295		3,802
GNU capital gain upon distribution		—		20
Property and equipment		6,762		6,111
Total deferred tax liabilities		11,057		9,933
Net deferred tax assets	$	9,028	$	8,348

At December 29, 2018, CRA had foreign net operating losses of $1.2 million with an indefinite life.

The aggregate changes in the balances of gross unrecognized tax benefits were as follows (in thousands):


	December 29,		December 30,
	2018		2017
Balance at beginning of period	$	1,031	$	1,059
Additions for tax positions taken during the prior years		132		9
Reductions for tax positions taken during prior years		—		—
Additions for tax positions taken during the current year		—		—
Reductions as a result of a lapse of the applicable statute of limitations		(296)		(37)
Settlements with tax authorities		—		—
Balance at end of the period	$	867	$	1,031

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 2018, CRA had $0.1 million of interest included in its provision for income taxes, net of federal and state benefit , which is consistent with fiscal 2017. CRA’s total unrecognized tax benefit at the end of fiscal 2018 is $1.0 million. Of the total unrecognized tax benefit balance, $0.1 million is offset by a future tax deduction when recognized. Settlement of any particular position could require the use of cash. Of the total $0.9 million balance at the end of fiscal 2018, a favorable resolution would result in $0.8 million being recognized as a reduction to the effective income tax rate in the period of resolution. It is reasonably likely that $0.6 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 2015. Within the significant states where CRA is subject to income tax, CRA is no longer subject to examinations by state taxing authorities before fiscal 2014. 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 2017. During fiscal 2018, an examination by the Internal Revenue Service for fiscal 2014 was completed. 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 29, 2018 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.

Related-Party Transactions	12 Months Ended
Related-Party Transactions	Dec. 29, 2018
Related-Party Transactions
Related-Party Transactions	13. Related‑Party Transactions CRA made payments to shareholders of CRA who performed consulting services exclusively for CRA in the amounts of $8.8 million, $13.2 million, and $9.4 million in fiscal 2018, fiscal 2017, and fiscal 2016, 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

12 Months Ended

Dec. 29, 2018

Commitments and Contingencies

Commitments and Contingencies

14. Commitments and Contingencies

Operating Lease Commitments

At December 29, 2018, CRA had the following minimum rental commitments for office space and equipment leases, all of which are under non-cancelable operating leases (in thousands):


	Rental
Fiscal Year	Commitments
2019		13,835
2020		13,963
2021		13,914
2022		13,972
2023		14,061
Thereafter		56,272
	$	126,017

Certain office leases contain renewal options that CRA may exercise at its discretion, which were not included in the amounts above. Rent expense was approximately $13.2 million, $12.1 million, and $10.4 million in fiscal 2018, fiscal 2017, and fiscal 2016, respectively.

On February 24, 2014, CRA entered into an agreement (the "original lease") to lease 57,602 square feet of office space in Boston, Massachusetts. The lease commenced on February 1, 2015 and is set to expire on July 31, 2025. Subject to certain conditions, the lease will be extendible for two five-year periods. The annual base rent under the lease is approximately $2.4 million for the first lease year, and is subject to annual increases of approximately 2% per annum. On February 24, 2015, CRA signed a first amendment (the "first amendment lease") to lease additional office space of 10,057 square feet on the building's 25th floor for a total of 67,659 square feet. The first amendment lease commenced on June 15, 2015 and is set to expire on June 30, 2020. Subject to certain conditions, the first amendment lease will be extendible for one three-year period. The annual fixed rent under the first amendment lease is approximately $0.5 million. The original lease included a tenant improvement allowance of approximately $4.8 million, as well as a rent abatement of approximately $1.2 million. The performance of CRA’s obligations under the lease is secured by a $1.6 million letter of credit.

On August 16, 2017, the Company entered into a second amendment (the "second amendment lease") to our original lease with BP Hancock LLC, as landlord, for office space located at 200 Clarendon Street, Boston, Massachusetts. Under the second amendment, the Company will lease 28,757 square feet of office space on the building’s 11th floor, in addition to the 67,659 square feet of office space we currently lease on the building’s 9th, 10th and 25th floors. The landlord expects to deliver possession of the new space on or before April 1, 2019. If CRA does not have possession of the new space by April 1, 2020 and certain other conditions are not satisfied, the second amendment gives us a right to terminate the second amendment lease with respect to the space on the 11th floor. The second amendment also extends the base term of the original lease for an additional five years ending on July 31, 2030. Beginning six months after the landlord delivers possession of the new space on the 11th floor to the Company or, if earlier, when CRA commences operations in the new space, the annual base rent for the new space through July 30, 2030, exclusive of customary operating costs and expenses, will be approximately $1.9 million per year, subject to annual increases of approximately 1.7% per year. Beginning on August 1, 2025, the annual fixed rent for the 9th and 10th floors will be payable at the same rate per square foot then in effect for the 11th floor. The second amendment includes a tenant improvement allowance of approximately $2.9 million. Subject to certain conditions, the second amendment lease will be extendable for two additional five-year periods. The second amendment also gives the Company the right to terminate the first amendment lease of 10,057 square feet of office space on the building’s 25th floor effective as of the date on which we begin paying rent for the 11th floor. On May 24, 2018, the Company notified the landlord of its intent to terminate the first amendment lease of the 25th floor effective as of the rent commencement date of the second amendment lease, which is expected to occur on or before October 1, 2019.

On June 27, 2018, CRA entered into a third amendment (the "third amendment lease") to the lease with BP Hancock LLC for an additional 14,097 square feet of office space on the 12th floor of our Boston office building. The landlord expects to deliver possession of the new space on or before May 1, 2019. If CRA does not have possession of the new space on the 12th floor by May 1, 2020 and certain other conditions are not satisfied, the third amendment gives the Company a right to terminate the third amendment lease with respect to the new space on the 12th floor. The third amendment is coterminous with the lease for the 9th, 10th and 11th floors, ending on July 31, 2030. Beginning six months after the landlord delivers possession of the space on the 12th floor to us or, if earlier, when we commence operations in the new space, the annual base rent for the new space through the end of the third amendment lease’s base term, exclusive of customary operating costs and expenses, will be approximately $1.0 million per year, subject to annual increases of approximately 1.6% per year. The third amendment includes a tenant improvement allowance of approximately $1.2 million. The third amendment also gives the Company a right of first offer to rent certain additional office space in the building if it becomes available.

On November 29, 1999, CRA entered into an agreement to lease 44,932 square feet of office space in Washington, D.C. The lease commenced on May 1, 2000 and was set to expire on February 28, 2011. The original annual base rent was approximately $1.4 million for the first year, and subject to annual increases of approximately 2% per annum. Subsequent to entering into the lease, the original lease has had six amendments with the last being signed on July 11, 2016. The amendment consists of an additional 6,366 square feet, is set to expire on December 31, 2027, and has an annual base rent of approximately $0.3 million for the first year, subject to increases of 2.25% per annum. The amended and restated addendum includes a tenant improvement allowance of approximately $0.5 million and a rent abatement of approximately $0.2 million. The performance of CRA’s obligations under the lease is secured by a $0.2 million letter of credit.

On July 15, 2015, CRA entered into an agreement to lease 25,261 square feet of office space in New York, New York. The lease commenced on August 1, 2015 with a rent commencement date of June 1, 2016 and was set to expire on May 31, 2026. The original annual base rent was approximately $1.8 million per annum for the first five years of the lease’s base term, and subject to a maximum annual rent of $2.0 million. Subsequent to entering into the lease, the original lease was amended on April 21, 2017. On July 28, 2017, CRA entered into a second amendment to lease an additional 2,422 square feet of office space. The amendment expands the total office space to 44,270 square feet and is set to expire on April 30, 2028. The amendment includes a base rent abatement of approximately $0.2 million and a tenant improvement allowance of approximately $0.2 million, increasing the total base rent abatement to approximately $1.4 million and the total tenant improvement allowance to approximately $1.6 million. Following an initial rent abatement period, the annual base rent will be approximately $1.4 million per annum for the first five years of the lease’s base term, and subject to maximum annual rent of $1.5 million. The performance of CRA’s obligations under the lease is secured by a $1.3 million letter of credit.

On February 14, 2008, CRA entered into an agreement to lease 36,570 square feet of office space in Chicago, Illinois. The lease commenced on April 1, 2008 with a rent commencement date of August 1, 2008 and was set to expire on July 31, 2018. The annual base rent was approximately $1.0 million in fiscal year 2015 and is subject to 2.5% increases per annum. On May 8, 2017, CRA signed a first amendment to extend the term of the previously leased space of 41,642 square feet for an additional ten years ending on July 31, 2028. The amendment includes a base rent abatement of approximately $0.9 million, as well as a tenant improvement allowance of approximately $2.3 million. Following an initial rent abatement period, the annual base rent will be approximately $1.1 million per year, subject to annual increases of approximately 2.5% per year. At the end of the lease, CRA will be responsible to return the vacated floors to their original condition at CRA’s expense.

On May 20, 2016, CRA entered into an agreement to lease 22,990 square feet of office space in London, UK for the 4th and ground floors. The leases for both floors was set to expire on May 19, 2031. The initial base rent for the two floors is approximately £1.6 million per year, and is subject to increase every five years, based on rental market conditions at that time. On February 12, 2018, CRA entered into an agreement to lease an additional 7,354 square feet of office space. The agreement expands the total office space to 30,344 square feet and is set to expire on May 19, 2031. The agreement includes an additional base rent abatement and tenant improvement allowance of approximately £1.2 million, increasing the total rent incentives to approximately £4.7 million. The base rent for the additional space is approximately £0.5 million per year, increasing the total base rent to approximately £2.1 million, and is subject to increases every five years, based on rental market conditions at that time. At the end of the leases, CRA will be responsible to return the vacated floors to original condition at CRA’s expense.

On July 21, 2017, CRA entered into the first amendment of the San Francisco, CA lease, originally entered into with C1, for an additional 9,206 square feet of office space and to extend the terms for an additional eight years ending on September 30, 2025 with annual base rent of approximately $0.9 million per year, subject to increases of 3% per annum. The amendment includes a base rent abatement of approximately $0.4 million, as well as a tenant improvement allowance of approximately $1.2 million. The performance of CRA's obligations under the lease is secured by a $0.1 million letter of credit.

Other

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 $3.9 million as of December 29, 2018.

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 (Unaudited)

12 Months Ended

Dec. 29, 2018

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

15. Quarterly Financial Data (Unaudited)


	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


	Quarter Ended
	April 1,		July 1,		September 30,		December 30,
	2017		2017		2017		2017 (1) (2)
	(In thousands, except per share data)
Revenues	$	88,171	$	93,563	$	91,325	$	97,016
Income (loss) from operations		4,911		5,848		5,647		(642)
Income (loss) before provision for income taxes		4,608		5,919		5,535		(898)
Net income (loss)		2,830		3,907		3,225		(2,261)
Net (income) loss attributable to noncontrolling interest, net of tax		23		(94)		(11)		5
Net income (loss) attributable to CRA International, Inc.	$	2,853	$	3,813	$	3,214	$	(2,256)
Basic net income (loss) per share	$	0.34	$	0.45	$	0.39	$	(0.27)
Diluted net income (loss) per share	$	0.33	$	0.44	$	0.38	$	(0.28)

(1)

On November 20, 2017, CRA entered into a transaction agreement with IQVIA where CRA, and certain former employees of IQVIA, agreed to certain terms and conditions relating to the former employees’ employment agreements with IQVIA, and to settle certain claims among the parties to the agreement. CRA paid IQVIA an aggregate amount of $5.7 million as consideration under the transaction agreement. This amount has been reported as a component of selling, general and administrative expenses for fiscal 2017.

(2)

Total net income (loss) per share was computed using the two-class method earnings allocation formula when there were earnings to distribute to participating securities in a given quarter. In the quarter above that includes a net loss for the quarter, the two-class method would not apply and the treasury stock method was utilized. As such, the aggregate net income (loss) per share for fiscal 2017 as a whole would not agree in the aggregate with the quarterly information presented above.

Correction

12 Months Ended

Dec. 29, 2018

Correction

Correction

16. Correction

During the first quarter of fiscal 2018, CRA discovered the December 30, 2017 balances of deferred compensation and other non-current liabilities of $20.7 million and deferred rent and facility-related non-current liabilities of $11.5 million had been transposed. These immaterial offsetting errors had a net effect of $0 on non-current liabilities and total liabilities and have been revised as follows in the presentation of the December 30, 2017 balance sheet in this annual report on Form 10-K (in thousands):


	As previously
	reported		As revised
Deferred compensation and other non-current liabilities	$	20,656	$	11,526
Deferred rent and facility-related non-current liabilities	$	11,526	$	20,656

During fiscal 2018, CRA discovered that the accounts receivable and unbilled services allowances presented on the December 30, 2017 consolidated balance sheet required adjustment. These adjustments in disclosure are immaterial and had no effect on the amounts of accounts receivable and unbilled services presented on the December 30, 2017 consolidated balance sheet (in thousands):


	As previously
	reported		As revised
Allowance netted against accounts receivable	$	7,378	$	5,252
Accounts receivable, net of allowance	$	79,803	$	79,803
Allowance netted against unbilled service	$	1,746	$	704
Unbilled services, net of allowance	$	33,530	$	33,530

In Note 11, these adjustments are reflected within the rollforward of the accounts receivable allowances and the rollforward of the unbilled services allowances as a reduction in the “Balance at beginning of period" and " Increases to reserves” for fiscal 2017 (in thousands):


	As previously
	reported		As revised
Accounts receivable allowances
Balance at beginning of period	$	4,253	$	3,454
Increases to reserves	$	6,774	$	5,447
Unbilled services allowances
Balance at beginning of period	$	1,720	$	474
Increases to reserves	$	2,255	$	2,459

As a result of the adjustment to the accounts receivable allowance, the following classification changes were required within the operating activities portion of the December 30, 2017 and December 31, 2016 consolidated statements of cash flows (in thousands):


	2017				2016
	As previously				As previously
	reported		As revised		reported		As revised
Accounts receivable allowances	$	3,065	$	1,739	$	666	$	535
Accounts receivable	$	(14,358)	$	(13,032)	$	(8,801)	$	(8,670)
Net cash provided by operating activities	$	45,858	$	45,858	$	48,163	$	48,163

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 29, 2018
Subsequent Events
Subsequent Events	17. Subsequent Events On February 13, 2019, 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 28, 2019, CRA announced that its Board of Directors declared a quarterly cash dividend of $0.20 per common share, payable on March 22, 2019 to shareholders of record as of March 12, 2019.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 29, 2018

Summary of Significant Accounting Policies

Fiscal Year

CRA’s fiscal year end is the Saturday nearest December 31 of each year. CRA’s fiscal years periodically contain 53 weeks rather than 52 weeks. Fiscal 2018, 2017 and 2016 were 52-week years.

Principles of Consolidation

GNU Interest

Estimates

Revenue Recognition

Cash and Cash Equivalents

Fair Value of Financial Instruments


	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


	December 30, 2017
	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	$	5,006	$	—	$	—
Total Assets	$	5,006	$	—	$	—
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,137
Total Liabilities	$	—	$	—	$	5,137

The fair value of CRA’s money market mutual fund share holdings is $1.00 per share.

The following table summarizes the changes in the contingent consideration liabilities over the fiscal year ended December 29, 2018 and the fiscal year ended December 30, 2017 (in thousands):


	December 29,		December 30,
	2018		2017
Beginning balance	$	5,137	$	549
Acquisitions		—		2,357
Remeasurement of acquisition-related contingent consideration		(244)		1,155
Accretion		1,304		1,328
Payments		—		(299)
Effects of foreign currency translation		—		47
Ending balance	$	6,197	$	5,137

Goodwill

Intangible Assets

Property and Equipment

Leases and Deferred Rent

Impairment of Long-Lived Assets

Impairment of Long‑Lived Assets

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.

Net Income (Loss) Per Share

Share-Based Compensation

Share‑Based Compensation

Deferred Compensation

Business Combinations

Income Taxes

Foreign Currency Translation

Recent Accounting Standards Adopted and Not Yet Adopted

Recent Accounting Standards Adopted

Revenue from Contracts with Customers

Improvements to Employee Share-Based Payment Accounting

Statement of Cash Flows (Topic 230): Restricted Cash

Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting

Recent Accounting Standards Not Yet Adopted

Leases (Topic 842)

Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting

Fair Value Measurements (Topic 820)

Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 29, 2018

Summary of Significant Accounting Policies

Financial instruments that are measured and recorded at fair value on a recurring basis


	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


	December 30, 2017
	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	$	5,006	$	—	$	—
Total Assets	$	5,006	$	—	$	—
Liabilities:
Contingent consideration liability	$	—	$	—	$	5,137
Total Liabilities	$	—	$	—	$	5,137

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 29, 2018 and the fiscal year ended December 30, 2017 (in thousands):


	December 29,		December 30,
	2018		2017
Beginning balance	$	5,137	$	549
Acquisitions		—		2,357
Remeasurement of acquisition-related contingent consideration		(244)		1,155
Accretion		1,304		1,328
Payments		—		(299)
Effects of foreign currency translation		—		47
Ending balance	$	6,197	$	5,137

Forgivable Loans (Tables)

12 Months Ended

Dec. 29, 2018

Forgivable Loans

Schedule of forgivable loan activity

Forgivable loan activity for fiscal years 2018 and 2017 is as follows (in thousands):


	December 29,		December 30,
	2018		2017
Beginning balance	$	28,628	$	33,962
Advances		30,572		11,672
Repayments		(3,396)		(2,135)
Reclassification to other assets		—		(1,100)
Amortization		(15,329)		(14,155)
Effects of foreign currency translation		(181)		384
Ending balance	$	40,294	$	28,628
Current portion of forgivable loans	$	6,104	$	5,540
Non-current portion of forgivable loans	$	34,190	$	23,088

Business Acquisitions (Tables)

12 Months Ended

Dec. 29, 2018

C1 Consulting

Business Acquisitions

Schedule of acquired assets and liabilities assumed from the purchase

The following table is the final allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed (in thousands):


Assets Acquired:
Accounts receivable and unbilled services	$	2,306
Other current assets		10
Total current assets		2,316
Property and equipment		206
Other non-current assets		106
Intangible assets		8,500
Goodwill		12,994
Total assets acquired	$	24,122


Liabilities Assumed:
Deferred revenue	$	1,950
Accrued expenses and other liabilities		652
Total current liabilities		2,602
Net assets acquired	$	21,520

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 29, 2018

Goodwill and Intangible Assets

Schedule of changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill for fiscal 2018 and fiscal 2017 are as follows (in thousands):


			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


			Accumulated
	Goodwill,		impairment		Goodwill,
	gross		losses		net
Balance at December 31, 2016	$	151,181	$	(76,417)	$	74,764
Goodwill adjustment related to acquisition		12,994		—		12,994
Effect of foreign currency translation		1,242		—		1,242
Balance at December 30, 2017	$	165,417	$	(76,417)	$	89,000

Schedule of components of acquired identifiable intangible assets

The components of acquired identifiable intangible assets are as follows (in thousands):


	December 29,		December 30,
	2018		2017
Non-competition agreements, net of accumulated amortization of $544 and $464, respectively	$	180	$	260
Customer relationships, net of accumulated amortization of $4,454 and $3,172, respectively		7,666		8,948
Total, net of accumulated amortization of $4,998 and $3,636, respectively	$	7,846	$	9,208

Schedule of expected amortization of intangible assets

Amortization of intangible assets held at December 29, 2018 for the next five fiscal years and thereafter is expected to be as follows (in thousands):


	Amortization
Fiscal Year	Expense
2019	$	1,370
2020		1,368
2021		927
2022		827
2023		822
Thereafter		2,532
	$	7,846

Property and Equipment (Tables)

12 Months Ended

Dec. 29, 2018

Property and Equipment

Schedule of property and equipment

Property and equipment consist of the following (in thousands):


	December 29,		December 30,
	2018		2017
Computer, office equipment and software	$	27,082	$	25,447
Leasehold improvements		40,782		37,907
Furniture		11,326		8,991
Total cost		79,190		72,345
Accumulated depreciation and amortization		(31,102)		(27,702)
Total property and equipment, net	$	48,088	$	44,643

Schedule Long-lived assets by geographic location

Long-lived assets by geographic location are as follows (in thousands):


	December 29,		December 30,
	2018		2017
Long-lived assets (property and equipment, net):
United States	$	39,654	$	37,192
United Kingdom		6,890		5,552
Other		1,544		1,899
Total foreign		8,434		7,451
Total long-lived assets (property and equipment, net)	$	48,088	$	44,643

Accrued Expenses (Tables)

12 Months Ended

Dec. 29, 2018

Accrued Expenses

Schedule of accrued expenses

Accrued expenses consist of the following (in thousands):


	December 29,		December 30,
	2018		2017
Compensation and related expenses	$	90,711	$	80,105
Income taxes payable		514		153
Other		17,008		14,315
Total	$	108,233	$	94,573

Net Income per Share (Tables)

12 Months Ended

Dec. 29, 2018

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):


	Fiscal Year 2018		Fiscal Year 2017		Fiscal Year 2016
Net income attributable to CRA as reported	$	22,492	$	7,624	$	12,888
Less: net income attributable to participating shares		108		51		95
Net income attributable to CRA common shareholders	$	22,384	$	7,573	$	12,793

Schedule of reconciliation of basic to diluted weighted average shares of common stock outstanding

For fiscal 2018, fiscal 2017, and fiscal 2016, the following is a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands):


	Fiscal Year	Fiscal Year	Fiscal Year
	2018	2017	2016
Basic weighted average shares outstanding	8,107	8,292	8,503
Common stock equivalents:
Stock options and restricted stock units	463	205	98
Diluted weighted average shares outstanding	8,570	8,497	8,601

Schedule of net income per share attributable to CRA


	Fiscal Year		Fiscal Year		Fiscal Year
	2018		2017		2016
Basic	$	2.76	$	0.91	$	1.50
Diluted	$	2.61	$	0.89	$	1.49

Share-Based Compensation (Tables)

12 Months Ended

Dec. 29, 2018

Share-Based Compensation

Summary of option activity


		Weighted		Weighted Average
		Average		Remaining	Aggregate
		Exercise		Contractual	Intrinsic
	Options	Price		Term	Value
					(in thousands)
Outstanding at December 30, 2017	665,717	$	24.14		$	13,851
Fiscal 2018:
Granted	22,443		47.45
Exercised	(100,771)		21.50		$	2,955
Expired	—		—
Forfeited	(1,408)		30.97		$	28
Outstanding at December 29, 2018	585,981	$	25.48	3.61	$	9,286
Options exercisable at December 29, 2018	469,697	$	24.02	3.04	$	7,962
Vested or expected to vest at December 29, 2018	585,383	$	25.46	3.61	$	9,282

Schedule of weighted average assumptions used to estimate the fair market value of the stock options at the date of grant


	2018		2017		2016
Risk-free interest rate	2.8	%	2.1	%	1.3	%
Expected volatility	39	%	32	%	36	%
Expected dividend yield	1.7	%	1.5	%	1.5	%
Forfeiture rate	0.4	%	0.4	%	0.5	%
Weighted average expected life (in years)	10.00		4.49		4.58

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 30, 2017	209,078	$	8.98
Granted	22,443		19.96
Vested	(113,829)		9.41
Forfeited	(1,408)		10.08
Non-vested at December 29, 2018	116,284	$	10.64

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 30, 2017	52,725	$	27.97
Granted	8,256		54.50
Vested	(24,975)		26.02
Forfeited	—		—
Non-vested at December 29, 2018	36,006	$	35.41

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 30, 2017	119,820	$	27.90
Granted	21,901		46.90
Vested	(61,258)		27.18
Forfeited	(704)		32.53
Non-vested at December 29, 2018	79,759	$	33.64

Summary 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 30, 2017	280,595	$	25.51
Granted	18,701		47.45
Vested	(151,276)		22.89
Forfeited	(26,070)		21.78
Non-vested at December 29, 2018	121,950	$	32.92

Revenue Recognition (Tables)

12 Months Ended

Dec. 29, 2018

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
Type of Contract	December 29,		December 30,		December 31,
	2018		2017		2016
	(52 weeks)		(52 weeks) (1)		(52 weeks) (1) (2)
Consulting services revenues
Fixed Price	$	95,096	$	93,570	$	55,100
Time-and-materials		322,552		276,505		268,853
Other		—		—		826
Total	$	417,648	$	370,075	$	324,779


	Year Ended		Year Ended		Year Ended
Geographic Breakdown	December 29,		December 30,		December 31,
	2018		2017		2016
	(52 weeks)		(52 weeks) (1)		(52 weeks) (1) (2)
Consulting services revenues
United States	$	329,678	$	295,232	$	251,962
United Kingdom		65,874		53,644		52,509
Other		22,096		21,199		20,308
Total	$	417,648	$	370,075	$	324,779

(1)

As noted above, prior period amounts have not been adjusted under the modified retrospective method.

(2)

Schedule of rollforward of the variable consideration and allowances for accounts receivable


	Fiscal		Fiscal
	Year		Year
	2018		2017 (1)
Balance at beginning of year	$	5,252	$	3,454
Increases to reserves		3,675		5,447
Amounts written off		(5,173)		(3,660)
Effects of foreign currency translation		10		11
Balance at end of year	$	3,764	$	5,252

(1)

The allowances for fiscal 2017 were determined under ASC 605.

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
	2018		2017 (1)
Balance at beginning of year	$	704	$	474
Increases to reserves		4,755		2,459
Amounts written off		(5,042)		(2,235)
Effects of foreign currency translation		(2)		6
Balance at end of year	$	415	$	704

(1) The allowances for fiscal 2017 were determined under ASC 605.

Schedule of reimbursable expenses included in revenues

The following expenses are subject to reimbursement (in thousands):


	Year Ended		Year Ended		Year Ended
	December 29,		December 30,		December 31,
	2018		2017		2016
	(52 weeks)		(52 weeks)		(52 weeks)
Reimbursable expenses	$	48,817	$	41,465	$	34,482

Schedule of revenue recognized as a result of changes in the contract liability balance

During the year ended December 29, 2018, CRA recognized the following revenue as a result of changes in the contract liability balance (in thousands):


	Year Ended
	December 29,
	2018
Revenue recognized from:	(52 weeks)
Amounts included in contract liabilities at the beginning of the year	$	3,149
Performance obligations satisfied in previous years	$	3,346

Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

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):


	2018		2017		2016
	(52 weeks)		(52 weeks)		(52 weeks)
Income before provision for income taxes:
U.S.	$	21,118	$	12,248	$	16,905
Foreign		7,815		2,916		4,984
Total	$	28,933	$	15,164	$	21,889

Schedule of components of provision (benefit) for income taxes

The provision (benefit) for income taxes consists of the following (in thousands):


	Fiscal		Fiscal		Fiscal
	Year		Year		Year
	2018		2017		2016
	(52 weeks)		(52 weeks)		(52 weeks)
Currently payable:
Federal	$	4,015	$	4,515	$	(770)
Foreign		1,487		493		664
State		1,788		804		(637)
		7,290		5,812		(743)
Deferred:
Federal		(384)		1,809		5,562
Foreign		(88)		(85)		124
State		(357)		(73)		2,713
	$	(829)	$	1,651	$	8,399
	$	6,461	$	7,463	$	7,656

Schedule of reconciliation of tax rates with the federal statutory rate


	Fiscal Year		Fiscal Year		Fiscal Year
	2018		2017		2016
Federal statutory rate	21.0	%	35.0	%	35.0	%
State income taxes, net of federal income tax benefit	4.9		3.9		6.1
Tax law changes	0.9		23.7		(0.3)
Share-based compensation	(6.3)		(15.8)		—
Nondeductible/nontaxable items	2.9		5.1		3.0
Foreign rate differential	—		(2.8)		(3.3)
Losses benefited/change in valuation allowance	—		(0.3)		(4.9)
Uncertain tax positions	(1.1)		(0.1)		(0.2)
Other	—		0.5		(0.4)
	22.3	%	49.2	%	35.0	%

Schedule of components of deferred tax assets (liabilities)

The components of CRA’s deferred tax assets (liabilities) are as follows (in thousands):


	December 29,		December 30,
	2018		2017
Deferred tax assets:
Accrued compensation and related expense	$	12,691	$	11,445
Allowance for doubtful accounts		1,694		2,009
Net operating loss carryforwards		402		479
Accrued expenses and other		5,298		4,356
Total gross deferred tax assets		20,085		18,289
Less: valuation allowance		—		(8)
Total deferred tax assets net of valuation allowance		20,085		18,281
Deferred tax liabilities:
Goodwill and other intangible asset amortization		4,295		3,802
GNU capital gain upon distribution		—		20
Property and equipment		6,762		6,111
Total deferred tax liabilities		11,057		9,933
Net deferred tax assets	$	9,028	$	8,348

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):


	December 29,		December 30,
	2018		2017
Balance at beginning of period	$	1,031	$	1,059
Additions for tax positions taken during the prior years		132		9
Reductions for tax positions taken during prior years		—		—
Additions for tax positions taken during the current year		—		—
Reductions as a result of a lapse of the applicable statute of limitations		(296)		(37)
Settlements with tax authorities		—		—
Balance at end of the period	$	867	$	1,031

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 29, 2018

Commitments and Contingencies

Schedule of minimum rental commitments for office space and equipment leases

At December 29, 2018, CRA had the following minimum rental commitments for office space and equipment leases, all of which are under non-cancelable operating leases (in thousands):


	Rental
Fiscal Year	Commitments
2019		13,835
2020		13,963
2021		13,914
2022		13,972
2023		14,061
Thereafter		56,272
	$	126,017

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 29, 2018

Quarterly Financial Data (Unaudited)

Schedule of quarterly financial data (unaudited)


	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


	Quarter Ended
	April 1,		July 1,		September 30,		December 30,
	2017		2017		2017		2017 (1) (2)
	(In thousands, except per share data)
Revenues	$	88,171	$	93,563	$	91,325	$	97,016
Income (loss) from operations		4,911		5,848		5,647		(642)
Income (loss) before provision for income taxes		4,608		5,919		5,535		(898)
Net income (loss)		2,830		3,907		3,225		(2,261)
Net (income) loss attributable to noncontrolling interest, net of tax		23		(94)		(11)		5
Net income (loss) attributable to CRA International, Inc.	$	2,853	$	3,813	$	3,214	$	(2,256)
Basic net income (loss) per share	$	0.34	$	0.45	$	0.39	$	(0.27)
Diluted net income (loss) per share	$	0.33	$	0.44	$	0.38	$	(0.28)

(1)

(2)

Correction (Tables)

12 Months Ended

Dec. 29, 2018

Revised of non-current liabilities and total liabilities

Schedule of corrections in the presentation of on the consolidated balance sheet and classification changes on the consolidated statement of cash flows

These immaterial offsetting errors had a net effect of $0 on non-current liabilities and total liabilities and have been revised as follows in the presentation of the December 30, 2017 balance sheet in this annual report on Form 10-K (in thousands):


	As previously
	reported		As revised
Deferred compensation and other non-current liabilities	$	20,656	$	11,526
Deferred rent and facility-related non-current liabilities	$	11,526	$	20,656

Adjustments for accounts receivable and unbilled services

Schedule of corrections in the presentation of on the consolidated balance sheet and classification changes on the consolidated statement of cash flows

These adjustments in disclosure are immaterial and had no effect on the amounts of accounts receivable and unbilled services presented on the December 30, 2017 consolidated balance sheet (in thousands):


	As previously
	reported		As revised
Allowance netted against accounts receivable	$	7,378	$	5,252
Accounts receivable, net of allowance	$	79,803	$	79,803
Allowance netted against unbilled service	$	1,746	$	704
Unbilled services, net of allowance	$	33,530	$	33,530

Adjustments in rollforward of accounts receivable and unbilled receivable

Schedule of corrections in the presentation of on the consolidated balance sheet and classification changes on the consolidated statement of cash flows


	As previously
	reported		As revised
Accounts receivable allowances
Balance at beginning of period	$	4,253	$	3,454
Increases to reserves	$	6,774	$	5,447
Unbilled services allowances
Balance at beginning of period	$	1,720	$	474
Increases to reserves	$	2,255	$	2,459

Classification changes within operating activities

Schedule of corrections in the presentation of on the consolidated balance sheet and classification changes on the consolidated statement of cash flows


	2017				2016
	As previously				As previously
	reported		As revised		reported		As revised
Accounts receivable allowances	$	3,065	$	1,739	$	666	$	535
Accounts receivable	$	(14,358)	$	(13,032)	$	(8,801)	$	(8,670)
Net cash provided by operating activities	$	45,858	$	45,858	$	48,163	$	48,163

Summary of Significant Accounting Policies - Description of Business and Fiscal Year (Details)	12 Months Ended
	Dec. 29, 2018 segment item	Dec. 30, 2017 item	Dec. 31, 2016 item
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 Accounting Policies - GNU Interest (Details) - USD ($) $ in Thousands				3 Months Ended									12 Months Ended
	Dec. 18, 2018	May 03, 2017	Apr. 13, 2016	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Jul. 02, 2016	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
GNU Interest
Revenues				$ 108,763	$ 103,871	$ 105,538	$ 99,476	$ 97,016	$ 91,325	$ 93,563	$ 88,171		$ 417,648	$ 370,075	$ 324,779
Net income				$ 6,839	$ 3,908	$ 6,839	$ 4,886	$ (2,261)	$ 3,225	3,907	$ 2,830		22,472	7,701	14,233
Net income (loss), net of amounts allocable to its other owners													22,384	7,573	12,793
Sale of GNU interest
Purchase price received														250	1,100
GNU gain on sale of business assets													258	250	3,836
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| GNU
Sale of GNU interest
Cash purchase price			$ 1,400
Purchase price received		$ 300	$ 1,100
GNU
GNU Interest
Percentage of ownership interest held by the entity	55.89%
GNU
GNU Interest
Revenues													0	0	800
Net income														200	3,000
Net income (loss), net of amounts allocable to its other owners														$ 100	$ 1,700
GNU \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| GNU
Sale of GNU interest
GNU gain on sale of business assets										300		$ 3,800	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		$ 2,100

Summary of Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Dec. 29, 2018
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 Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Money market mutual funds
Fair Value of Financial Instruments
Fair value per share of CRA's money market mutual fund share holdings			$ 1.00
Recurring \| Level 1
Fair Value of Financial Instruments
Total Assets			$ 18,029	$ 5,006
Recurring \| Level 1 \| Money market mutual funds
Fair Value of Financial Instruments
Cash and cash equivalents			18,029	5,006
Recurring \| Level 3
Fair Value of Financial Instruments
Contingent consideration liability	$ 5,137	$ 549	6,197	5,137
Total Liabilities			$ 6,197	$ 5,137
Summary of changes in contingent consideration liabilities
Beginning balance	5,137	549
Acquisitions		2,357
Remeasurement of acquisition-related contingent consideration	(244)	1,155
Accretion	1,304	1,328
Payments		(299)
Effect of foreign currency translation		47
Ending balance	$ 6,197	$ 5,137

Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)		12 Months Ended
	Apr. 13, 2016 segment	Dec. 29, 2018 segment item
Goodwill
Number of reporting units \| segment	2	1
Number of trailing quarters used to determine the control premium \| item		4
Minimum
Intangible Assets
Estimated useful life (in years)		5 years
Maximum
Intangible Assets
Estimated useful life (in years)		10 years

Summary of Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 29, 2018
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 Accounting Policies - Deferred Compensation (Details)	12 Months Ended
	Dec. 29, 2018
Minimum
Deferred Compensation
Service period	3 years
Maximum
Deferred Compensation
Service period	6 years

Summary of Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Foreign Currency Translation
Transaction gains and losses recorded in income before provision for income taxes	$ 0.4	$ (0.4)	$ (0.4)

Summary of Significant Accounting Policies - Recent Accounting Standards Adopted (Details) $ in Thousands	Dec. 30, 2017 USD ($)
ASC 606
Recent Accounting Standards
Cumulative effect of a change in accounting principle	$ 366

Summary of Significant Accounting Policies - Recent Accounting Standards Not Yet Adopted (Details) - ASU 2016-02 - Net effect $ in Millions	Dec. 30, 2018 USD ($)
Minimum
Recent Accounting Standards
Recognize right-of-use assets	$ 66.0
Recognize lease liabilities	89.0
Maximum
Recent Accounting Standards
Recognize right-of-use assets	86.0
Recognize lease liabilities	$ 112.0

Forgivable Loans (Details) $ in Thousands	12 Months Ended
Forgivable Loans (Details) $ in Thousands	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)
Amount of forgivable loans write-down or write-off	$ 0	$ 0
Forgivable loan activity
Beginning balance	28,628	33,962
Advances	30,572	11,672
Repayments	(3,396)	(2,135)
Reclassification to other assets		(1,100)
Amortization	(15,329)	(14,155)
Effects of foreign currency translation	(181)	384
Ending balance	40,294	28,628
Current portion of forgivable loans	6,104	5,540
Non-current portion of forgivable loans	34,190	23,088
Other loans to current and former employees
Other loans to current and former employees, included in other assets, net of allowances	$ 100	$ 300
Minimum
Term of forgivable loans or advances	3 years
Maximum
Term of forgivable loans or advances	8 years
Interest rates (as a percent)	0.0325

Business Acquisitions (Details) - USD ($) $ in Thousands	Jan. 31, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Assets Acquired:
Goodwill		$ 88,208	$ 89,000	$ 74,764
C1 Consulting LLC
Business Acquisitions
Maximum period for additional purchase consideration to be paid	4 years
Assets Acquired:
Accounts receivable and unbilled receivables	$ 2,306
Other current assets	10
Total current assets	2,316
Property and equipment	206
Other non-current assets	106
Intangible assets	8,500
Goodwill	12,994
Total assets acquired	24,122
Liabilities Assumed:
Deferred revenue	1,950
Accrued expenses and other current liabilities	652
Total current liabilities	2,602
Net assets acquired	$ 21,520
C1 Consulting LLC \| Selling, general and administrative expenses
Liabilities Assumed:
Transaction related costs			$ 900
C1 Consulting LLC \| Non-compete agreements
Liabilities Assumed:
Estimated useful life (in years)	5 years
C1 Consulting LLC \| Customer relationships
Liabilities Assumed:
Estimated useful life (in years)	10 years

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Changes in the carrying amount of goodwill
Balance at the beginning of the period, Goodwill gross	$ 165,417	$ 151,181
Goodwill adjustment related to acquisition		12,994
Effects of foreign currency translation	(792)	1,242
Balance at the end of the period, Goodwill gross	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)
Balance at the beginning of the period, Goodwill, net	89,000	74,764
Balance at the end of the period, Goodwill, net	$ 88,208	89,000
Intangible assets impairment losses		$ 530

Goodwill and Intangible Assets - Acquired and Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Acquired identifiable intangible assets
Acquired identifiable intangible assets, net of accumulated amortization	$ 7,846	$ 9,208
Accumulated amortization	4,998	3,636
Amortization Expense
2019	1,370
2020	1,368
2021	927
2022	827
2023	822
Thereafter	2,532
Total	7,846
Amortization of expenses related to intangible assets	1,400	1,500	$ 900
Non-compete agreements
Acquired identifiable intangible assets
Acquired identifiable intangible assets, net of accumulated amortization	180	260
Accumulated amortization	544	464
Customer relationships
Acquired identifiable intangible assets
Acquired identifiable intangible assets, net of accumulated amortization	7,666	8,948
Accumulated amortization	$ 4,454	$ 3,172

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Property and Equipment
Property and equipment, gross	$ 79,190	$ 72,345
Accumulated depreciation and amortization	(31,102)	(27,702)
Total property and equipment, net	48,088	44,643
Depreciation expense	8,600	7,400	$ 7,000
Computer, office equipment and software
Property and Equipment
Property and equipment, gross	27,082	25,447
Leasehold improvements
Property and Equipment
Property and equipment, gross	40,782	37,907
Furniture
Property and Equipment
Property and equipment, gross	$ 11,326	$ 8,991

Property and Equipment - Long-lived assets (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Long-lived assets by geographic location
Long-lived assets (property and equipment, net)	$ 48,088	$ 44,643
United States
Long-lived assets by geographic location
Long-lived assets (property and equipment, net)	39,654	37,192
United Kingdom
Long-lived assets by geographic location
Long-lived assets (property and equipment, net)	6,890	5,552
Other
Long-lived assets by geographic location
Long-lived assets (property and equipment, net)	1,544	1,899
Total foreign
Long-lived assets by geographic location
Long-lived assets (property and equipment, net)	$ 8,434	$ 7,451

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Accrued Expenses
Compensation and related expenses	$ 90,711	$ 80,105
Income taxes payable	514	153
Other	17,008	14,315
Total	108,233	94,573
Compensation and related expenses
Accrued bonuses	73,900	63,800
"Other" accrued expenses
Commissions due to senior consultants	9,600	6,100
Direct project accruals	700	1,300
Operating expense accruals	6,600	4,400
Accrued leasehold improvements	$ 100	$ 2,500

Credit Agreement (Details) $ in Millions	12 Months Ended
Credit Agreement (Details) $ in Millions	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)
Revolving credit facility
Senior Loan Agreement
Revolving credit facility, maximum capacity	$ 125.0
Borrowings outstanding	$ 0.0	$ 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	$ 29.1	$ 27.3
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	3.0
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	$ 15.0
Amount available under revolving credit facility reduced	$ 3.9

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Employee Benefit Plans
Employer contributions under 401(k) plans	$ 3.5	$ 3.1	$ 2.7

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Net income available to common shareholders
Net income attributable to CRA as reported	$ 6,859	$ 3,908	$ 6,839	$ 4,886	$ (2,256)	$ 3,214	$ 3,813	$ 2,853	$ 22,492	$ 7,624	$ 12,888
Less: net income attributable to participating shares									108	51	95
Net income attributable to CRA common shareholders									$ 22,384	$ 7,573	$ 12,793
Reconciliation of basic to diluted weighted average shares of common stock outstanding
Basic weighted average shares outstanding									8,107,000	8,292,000	8,503,000
Stock options and restricted stock units									463,000	205,000	98,000
Diluted weighted average shares outstanding									8,570,000	8,497,000	8,601,000
Basic (in dollars per share)	$ 0.85	$ 0.48	$ 0.84	$ 0.59	$ (0.27)	$ 0.39	$ 0.45	$ 0.34	$ 2.76	$ 0.91	$ 1.50
Diluted (in dollars per share)	$ 0.81	$ 0.46	$ 0.79	$ 0.57	$ (0.28)	$ 0.38	$ 0.44	$ 0.33	$ 2.61	$ 0.89	$ 1.49
Calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding
Anti-dilutive securities excluded from EPS computation (in shares)									29,612	75,004	581,546

Share-Based Compensation - Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Employees and directors
Share-Based Compensation
Compensation expense	$ 4.8	$ 6.6	$ 6.9

Share-Based Compensation - 2006 Equity Plan (Details)	Dec. 29, 2018 shares
2006 Incentive Plan
Shares Using Fungibility Ratio
Shares available for grant	747,926

Share-Based Compensation - Option Activity (Details) - Options - 2006 Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Options
Outstanding at the beginning of the period (in shares)	665,717
Granted (in shares)	22,443
Exercised (in shares)	(100,771)
Forfeited (in shares)	(1,408)
Outstanding at the end of the period (in shares)	585,981	665,717
Options exercisable at the end of the period (in shares)	469,697
Vested or expected to vest at the end of the period (in shares)	585,383
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 24.14
Granted (in dollars per share)	47.45
Exercised (in dollars per share)	21.50
Forfeited (in dollars per share)	30.97
Outstanding at the end of the period (in dollars per share)	25.48	$ 24.14
Options exercisable at the end of the period (in dollars per share)	24.02
Vested or expected to vest at the end of the period (in dollars per share)	$ 25.46
Weighted Average Remaining Contractual Term
Outstanding at the beginning of the period	3 years 7 months 10 days
Outstanding at the end of the period	3 years 7 months 10 days
Options exercisable at the end of the period	3 years 15 days
Vested or expected to vest at the end of the period	3 years 7 months 10 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)	$ 13,851
Exercised (in dollars)	2,955	$ 5,400	$ 700
Forfeited (in dollars)	28
Outstanding at the end of the period (in dollars)	9,286	$ 13,851
Options exercisable at the end of the period (in dollars)	7,962
Vested or expected to vest at the end of the period (in dollars)	$ 9,282

Share-Based Compensation - Weighted Average FMV of Stock Option (Details) - Options - $ / shares	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Share-Based Compensation
Weighted average fair market value (in dollars per share)	$ 19.96
Weighted average assumptions
Risk-free interest rate (as a percent)	2.80%	2.10%	1.30%
Expected volatility (as a percent)	39.00%	32.00%	36.00%
Expected dividend yield (as a percent)	1.70%	1.50%	1.50%
Forfeiture rate (as a percent)	0.40%	0.40%	0.50%
Weighted average expected life (in years)	10 years	4 years 5 months 27 days	4 years 6 months 29 days
2006 Incentive Plan
Share-Based Compensation
Weighted average fair market value (in dollars per share)	$ 19.96	$ 11.54	$ 9.93

Share-Based Compensation - Non-vested stock options (Details) - Options	12 Months Ended
	Dec. 29, 2018 $ / shares shares
Options, Number of Shares
Non-vested balance at the beginning of the period (in shares) \| shares	209,078
Granted (in shares) \| shares	22,443
Vested (in shares) \| shares	(113,829)
Forfeited (in shares) \| shares	(1,408)
Non-vested balance at the end of the period (in shares) \| shares	116,284
Options, Weighted-Average Grant Date Fair Value
Non-vested balance at the beginning of the period (in dollars per share) \| $ / shares	$ 8.98
Granted (in dollars per share) \| $ / shares	19.96
Vested (in dollars per share) \| $ / shares	9.41
Forfeited (in dollars per share) \| $ / shares	10.08
Non-vested balance at the end of the period (in dollars per share) \| $ / shares	$ 10.64

Share-Based Compensation - Restricted Shares and Other (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 29, 2018 USD ($) item $ / shares shares	Dec. 30, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) shares
2006 Incentive Plan
Additional disclosures
Shares available for grant	747,926
Options
Additional disclosures
Fair value of options vested \| $	$ 1.1	$ 1.5	$ 1.5
Unrecognized compensation cost, net of expected forfeitures \| $	$ 1.1
Weighted-average period over which cost is expected to be recognized	2 years 6 months
Forfeiture rate (as a percent)	0.40%	0.40%	0.50%
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 8 months 12 days
Forfeiture rate (as a percent)	0.90%
Restricted Stock and Stock Units, Number of Shares
Fair value of restricted shares vested \| $	$ 0.6	$ 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)	52,725
Granted (in shares)	8,256
Vested (in shares)	(24,975)
Balance at the end of the period (in shares)	36,006	52,725
Restricted Stock and Stock Units, Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 27.97
Granted (in dollars per share) \| $ / shares	54.50
Vested (in dollars per share) \| $ / shares	26.02
Balance at the end of the period (in dollars per share) \| $ / shares	$ 35.41	$ 27.97
Time-Vesting RSUs
Additional disclosures
Number of vesting installments \| item	4
Unrecognized compensation cost, net of expected forfeitures \| $	$ 2.3
Weighted-average period over which cost is expected to be recognized	2 years 6 months
Forfeiture rate (as a percent)	0.90%
Restricted Stock and Stock Units, Number of Shares
Fair value of restricted shares vested \| $	$ 1.7	$ 2.0	$ 1.9
Time-Vesting RSUs \| 2006 Incentive Plan
Restricted Stock and Stock Units, Number of Shares
Balance at the beginning of the period (in shares)	119,820
Granted (in shares)	21,901
Vested (in shares)	(61,258)
Forfeited (in shares)	(704)
Balance at the end of the period (in shares)	79,759	119,820
Restricted Stock and Stock Units, Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 27.90
Granted (in dollars per share) \| $ / shares	46.90
Vested (in dollars per share) \| $ / shares	27.18
Forfeited (in dollars per share) \| $ / shares	32.53
Balance at the end of the period (in dollars per share) \| $ / shares	$ 33.64	$ 27.90
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)	280,595
Granted (in shares)	18,701
Vested (in shares)	(151,276)
Forfeited (in shares)	(26,070)
Balance at the end of the period (in shares)	121,950	280,595
Restricted Stock and Stock Units, Weighted-Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 25.51
Granted (in dollars per share) \| $ / shares	47.45
Vested (in dollars per share) \| $ / shares	22.89
Forfeited (in dollars per share) \| $ / shares	21.78
Balance at the end of the period (in dollars per share) \| $ / shares	$ 32.92	$ 25.51
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

Revenue Recognition - General (Details)	Dec. 29, 2018 item
Concentration Risk
Number of broad lines of consulting services	2
Revenue Benchmark \| Revenue Concentration Risk
Concentration Risk
Number of broad lines of consulting services	2

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Disaggregation of Revenue
Consulting services revenues	$ 108,763	$ 103,871	$ 105,538	$ 99,476	$ 97,016	$ 91,325	$ 93,563	$ 88,171	$ 417,648	$ 370,075	$ 324,779
GNU
Disaggregation of Revenue
Consulting services revenues									0	0	800
United States
Disaggregation of Revenue
Consulting services revenues									329,678	295,232	251,962
United Kingdom
Disaggregation of Revenue
Consulting services revenues									65,874	53,644	52,509
Other
Disaggregation of Revenue
Consulting services revenues									22,096	21,199	20,308
Fixed Price
Disaggregation of Revenue
Consulting services revenues									95,096	93,570	55,100
Time-and-materials
Disaggregation of Revenue
Consulting services revenues									$ 322,552	$ 276,505	268,853
Other
Disaggregation of Revenue
Consulting services revenues											$ 826

Revenue Recognition - Reserves for Variable Consideration and Credit Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Roll forward of the variable consideration and allowances for accounts receivable
Balance at beginning of year	$ 5,252	$ 3,454
Increases to reserves	3,675	5,447
Amounts written off	(5,173)	(3,660)
Effects of foreign currency translation	10	11
Balance at end of year	3,764	5,252	$ 3,454
Roll forward of the variable consideration and allowances for unbilled services
Balance at beginning of year	704	474
Increases to reserves	4,755	2,459
Amounts written off	(5,042)	(2,235)
Effects of foreign currency translation	(2)	6
Balance at end of year	415	704	474
Bad debt expense	(1,410)	1,739	535
Reimbursable expenses	48,817	41,465	34,482
Selling, general and administrative expenses
Roll forward of the variable consideration and allowances for unbilled services
Bad debt expense	$ 1,200	$ 0	$ 1,100

Revenue Recognition - Contract Balances from Contracts with Customers (Details) $ in Thousands	12 Months Ended
	Dec. 29, 2018 USD ($)
Revenue recognized from:
Amounts included in contract liabilities at the beginning of the year	$ 3,149
Performance obligations satisfied in previous years	$ 3,346

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Income Taxes
Remeasurement of deferred tax balances	$ 0.3
Federal statutory rate (as a percent)	21.00%	35.00%	35.00%
Provisional income tax recorded	$ 0.2	$ 3.6
Adjustment to provisional amounts recorded	$ 0.1
Effective tax rate before impact of the Tax Act (as a percent)	21.40%
Effective tax rate (as a percent)	22.30%	49.20%	35.00%

Income Taxes - Components of Income, Provision For and Reconciliation of Tax (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Income Taxes
Taxable year period (in years)									3 years
Gross annual receipts to be maintained									$ 500,000
Base erosion tax (in percentage)									3.00%
FDII deduction calculated									$ 100
Income before provision for income taxes:
U.S.									21,118	$ 12,248	$ 16,905
Foreign									7,815	2,916	4,984
Income before provision for income taxes and noncontrolling interest	$ 8,331	$ 4,939	$ 9,737	$ 5,926	$ (898)	$ 5,535	$ 5,919	$ 4,608	28,933	15,164	21,889
Currently payable:
Federal									4,015	4,515	(770)
Foreign									1,487	493	664
State									1,788	804	(637)
Currently payable									7,290	5,812	(743)
Deferred:
Federal									(384)	1,809	5,562
Foreign									(88)	(85)	124
State									(357)	(73)	2,713
Deferred									(829)	1,651	8,399
Provision (benefit) for income taxes									$ 6,461	$ 7,463	$ 7,656
Reconciliation of tax rates with the federal statutory rate
Federal statutory rate (as a percent)									21.00%	35.00%	35.00%
State income taxes, net of federal income tax benefit (as a percent)									4.90%	3.90%	6.10%
Tax law changes (as a percent)									0.90%	23.70%	(0.30%)
Share-based compensation (as a percent)									(6.30%)	(15.80%)
Nondeductible/nontaxable items (as a percent)									2.90%	5.10%	3.00%
Foreign rate differential (as a percent)										(2.80%)	(3.30%)
Losses benefited/change in valuation allowance (as a percent)										(0.30%)	(4.90%)
Uncertain tax positions (as a percent)									(1.10%)	(0.10%)	(0.20%)
Other (as a percent)										0.50%	(0.40%)
Effective tax rate (as a percent)									22.30%	49.20%	35.00%

Income Taxes - Deferred Taxes and Operating Loss Carryforwards (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017
Deferred tax assets:
Accrued compensation and related expense	$ 12,691	$ 11,445
Allowance for doubtful accounts	1,694	2,009
Net operating loss carryforwards	402	479
Accrued expenses and other	5,298	4,356
Total gross deferred tax assets	20,085	18,289
Less: valuation allowance		(8)
Total deferred tax assets net of valuation allowance	20,085	18,281
Deferred tax liabilities:
Goodwill and other intangible asset amortization	4,295	3,802
GNU capital gain upon distribution		20
Property and equipment	6,762	6,111
Total deferred tax liabilities	11,057	9,933
Net deferred tax assets	9,028	$ 8,348
Foreign
Deferred tax liabilities:
Net operating loss carryforwards	$ 1,200

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Changes in the balances of gross unrecognized tax benefits
Balance at beginning of period	$ 1,031	$ 1,059
Additions for tax positions taken during prior years	132	9
Reductions as a result of a lapse of the applicable statute of limitations	(296)	(37)
Balance at end of the period	867	$ 1,031
Interest on unrecognized tax benefits	100
Unrecognized tax benefits before adjustments	1,000
Unrecognized tax benefits offset by future tax deduction	100
Unrecognized tax benefits being recognized as a reduction to the effective income tax rate	800
Amount of unrecognized tax benefits that was expected to be reversed within the next twelve months	$ 600

Related-Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Shareholders
Related-Party Transactions
Payments for consulting services	$ 8.8	$ 13.2	$ 9.4

Commitments and Contingencies (Details) $ in Thousands, £ in Millions													12 Months Ended
	Jun. 27, 2018 USD ($) ft²	Feb. 12, 2018 GBP (£) ft²	Aug. 16, 2017 USD ($) ft² item	Jul. 28, 2017 USD ($) ft²	Jul. 21, 2017 USD ($) ft²	May 08, 2017 USD ($) ft²	Jul. 11, 2016 USD ($) ft² item	May 20, 2016 GBP (£) ft² floor	Jul. 15, 2015 USD ($) ft²	Feb. 24, 2015 USD ($) ft² item	Feb. 24, 2014 USD ($) ft² item	Nov. 29, 1999 USD ($) ft²	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)	Feb. 14, 2008 ft²
Minimum Rental Commitments
2019													$ 13,835
2020													13,963
2021													13,914
2022													13,972
2023													14,061
Thereafter													56,272
Rental commitments													126,017
Rent expense													13,200	$ 12,100	$ 10,400
Standby letters of credit
Minimum Rental Commitments
Maximum borrowing capacity													$ 3,900
Boston, Massachusetts
Minimum Rental Commitments
Lease area \| ft²										67,659	57,602
Number of times, lease can be renewed \| item			2							1	2
Lease extension term			5 years							3 years	5 years
Annual base rent	$ 1,000		$ 1,900								$ 2,400
Increase in annual base rent (as a percent)	1.60%		1.70%								2.00%
Additional lease area \| ft²	14,097		28,757							10,057
Annual fixed rent										$ 500
Rent abatement											$ 1,200
Tenant improvement allowance	$ 1,200		$ 2,900								4,800
Boston, Massachusetts \| Secured by letters of credit
Minimum Rental Commitments
Face amount of the debt											$ 1,600
Washington, D.C
Minimum Rental Commitments
Number of amendments \| item							6
Lease area \| ft²							6,366					44,932
Annual base rent							$ 300					$ 1,400
Increase in annual base rent (as a percent)							2.25%					2.00%
Rent abatement							$ 200
Tenant improvement allowance							500
Washington, D.C \| Secured by letters of credit
Minimum Rental Commitments
Face amount of the debt							$ 200
New York, New York
Minimum Rental Commitments
Lease area \| ft²				44,270					25,261
Annual base rent				$ 1,400					$ 1,800
Additional lease area \| ft²				2,422
Number of years of annual base rent				5 years					5 years
Rent abatement				$ 200
Tenant improvement allowance				200
Increase in rent abatement				1,400
Increase in tenant improvement allowance				1,600
New York, New York \| Maximum
Minimum Rental Commitments
Annual base rent				1,500					$ 2,000
New York, New York \| Secured by letters of credit
Minimum Rental Commitments
Face amount of the debt				$ 1,300
Chicago, Illinois
Minimum Rental Commitments
Lease area \| ft²						41,642											36,570
Lease extension term						10 years
Annual base rent						$ 1,100										$ 1,000
Increase in annual base rent (as a percent)						2.50%										2.50%
Rent abatement						$ 900
Tenant improvement allowance						$ 2,300
London, UK
Minimum Rental Commitments
Lease area \| ft²		30,344						22,990
Number of floors available for lease \| floor								2
Annual base rent \| £		£ 2.1						£ 1.6
Period after which lease rent will increase		5 years						5 years
Additional lease area \| ft²		7,354
Increase in annual base rent \| £		£ 0.5
Additional base rent abatement and tenant improvement allowance \| £		1.2
Total rent incentives \| £		£ 4.7
San Francisco, CA
Minimum Rental Commitments
Annual base rent					$ 900
Increase in annual base rent (as a percent)					3.00%
Additional lease area \| ft²					9,206
Number of years of annual base rent					8 years
Rent abatement					$ 400
Tenant improvement allowance					1,200
San Francisco, CA \| Secured by letters of credit
Minimum Rental Commitments
Face amount of the debt					$ 100

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended								12 Months Ended
	Nov. 30, 2017	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Quarterly Financial Data (Unaudited)
Revenues		$ 108,763	$ 103,871	$ 105,538	$ 99,476	$ 97,016	$ 91,325	$ 93,563	$ 88,171	$ 417,648	$ 370,075	$ 324,779
Income (loss) from operations		7,845	5,225	9,661	6,204	(642)	5,647	5,848	4,911	28,935	15,764	18,919
Income (loss) before provision for income taxes		8,331	4,939	9,737	5,926	(898)	5,535	5,919	4,608	28,933	15,164	21,889
Net income (loss)		6,839	3,908	6,839	4,886	(2,261)	3,225	3,907	2,830	22,472	7,701	14,233
Net (income) loss attributable to noncontrolling interest, net of tax		20				5	(11)	(94)	23	20	(77)	(1,345)
Net income attributable to CRA as reported		$ 6,859	$ 3,908	$ 6,839	$ 4,886	$ (2,256)	$ 3,214	$ 3,813	$ 2,853	$ 22,492	$ 7,624	$ 12,888
Basic net income (loss) per share (in dollars per share)		$ 0.85	$ 0.48	$ 0.84	$ 0.59	$ (0.27)	$ 0.39	$ 0.45	$ 0.34	$ 2.76	$ 0.91	$ 1.50
Diluted net income (loss) per share (in dollars per share)		$ 0.81	$ 0.46	$ 0.79	$ 0.57	$ (0.28)	$ 0.38	$ 0.44	$ 0.33	$ 2.61	$ 0.89	$ 1.49
Claims under the Transaction agreement with IQVIA Inc settled	$ 5,700

Correction (Details) - USD ($) $ in Thousands	12 Months Ended
Correction (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016	Mar. 31, 2018
Correction
Non-current liabilities	$ 31,877	$ 32,547
Revised of the presentation of the December 30, 2017 balance sheet in this annual report on Form 10-K
Deferred compensation and other non-current liabilities	7,957	11,526
Deferred rent and facility-related non-current liabilities	23,618	20,656
Adjustments in disclosure of accounts receivable and unbilled services presented on the December 30, 2017 and December 31, 2016 consolidated balance sheet
Allowance netted against accounts receivable	3,764	5,252	$ 3,454
Accounts receivable, net of allowance	94,525	79,803
Increases to reserves	3,675	5,447
Allowance netted against unbilled service	415	704	474
Unbilled services, net of allowance	36,060	33,530
Increases to reserves	4,755	2,459
Classification changes within the operating activities portion of the December 30, 2017 and December 31, 2016 consolidated statements of cash flows
Accounts receivable allowances	(1,410)	1,739	535
Accounts receivable	(14,427)	(13,032)	(8,670)
Net cash provided by operating activities	$ 36,189	45,858	48,163
As previously reported
Revised of the presentation of the December 30, 2017 balance sheet in this annual report on Form 10-K
Deferred compensation and other non-current liabilities		20,656
Deferred rent and facility-related non-current liabilities		11,526
Adjustments in disclosure of accounts receivable and unbilled services presented on the December 30, 2017 and December 31, 2016 consolidated balance sheet
Allowance netted against accounts receivable		7,378	4,253
Accounts receivable, net of allowance		79,803
Increases to reserves		6,774
Allowance netted against unbilled service		1,746	1,720
Unbilled services, net of allowance		33,530
Increases to reserves		2,255
Classification changes within the operating activities portion of the December 30, 2017 and December 31, 2016 consolidated statements of cash flows
Accounts receivable allowances		3,065	666
Accounts receivable		(14,358)	(8,801)
Net cash provided by operating activities		$ 45,858	$ 48,163
Net effect
Correction
Non-current liabilities				$ 0
Total liabilities				$ 0

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Feb. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016	Feb. 13, 2019
Subsequent Events
Common stock quarterly cash dividend declared (in dollars per share)		$ 0.71	$ 0.59	$ 0.14
Subsequent Events
Subsequent Events
Additional number of shares authorized to repurchase					$ 20.0
Common stock quarterly cash dividend declared (in dollars per share)	$ 0.20