16. Restructuring Charges

CRA did not incur any restructuring charges during fiscal 2013.

During fiscal 2012, CRA incurred pre-tax restructuring expenses of $6.7 million, of which approximately $5.4 million was for termination benefits, facility-related charges, asset write-downs and other charges in connection with the plan committed to by CRA's management during the third quarter of fiscal 2012 to eliminate and restructure selected practice areas and reduce selling, general and administrative costs. In connection with this plan, CRA eliminated its Chemicals practice and closed its Middle East operations. These restructuring actions, along with the repositioning of other select underperforming practice areas, resulted in the reduction of more than 60 consulting positions. Commensurate with these consulting staff reductions, CRA also took significant actions to lower its selling, general and administrative costs by reducing CRA's administrative staff, eliminating excess office space capacity, better rationalizing remaining office space, and lowering administrative spending, particularly related to outside contractors and professional fees. These restructuring actions were designed to intensify the focus of CRA's portfolio, increase the cohesiveness of its services and improve its margins and profitability. The majority of these actions occurred during the third quarter of fiscal 2012, and the remainder was completed during the fourth quarter of fiscal 2012.

Additionally, during fiscal 2012, CRA entered into an agreement with the landlord of its London, England office to surrender the lease of one of the three floors it leased in the office building in London. Under this agreement, CRA surrendered its lease of this floor on June 30, 2012, instead of on the lease's original termination date of October 2, 2016, and paid the landlord approximately $1.2 million in connection with the surrender. In connection with this surrender, CRA incurred pre-tax restructuring charges of $1.7 million, which included the $1.2 million surrender charge and approximately $0.5 million of fixed asset write-offs and other charges or offsets. During fiscal 2012, CRA also recorded pre-tax restructuring credits of approximately $0.4 million related primarily to adjustments to its leased office space in Houston, TX and Chicago, IL.Of the $6.7 million of restructuring charges recorded during fiscal 2012, approximately $3.8 million was charged to cost of sales, $1.5 million was charged to selling, general and administrative expenses, and $1.4 million was charged to depreciation and amortization expense.

The restructuring expenses and reserve balance are as follows as of December 28, 2013 and December 29, 2012 (in thousands):

	Office Vacancies			Employee Workforce Reduction			Total Restructuring

Balance at December 31, 2011	$	3,737		$	—		$	3,737
Charges incurred during fiscal 2012		2,110			4,618			6,728
Amounts paid, net of amounts received, during fiscal 2012		(3,514	)		(3,718	)		(7,232	)
Non-cash adjustments and effect of foreign currency translation during fiscal 2012		(227	)		(27	)		(254	)


Balance at December 29, 2012	$	2,106		$	873		$	2,979
Charges incurred during fiscal 2013		—			—			—
Amounts paid, net of amounts received, during fiscal 2013		(759	)		(729	)		(1,488	)
Non-cash adjustments and effect of foreign currency translation during fiscal 2013		(177	)		(144	)		(321	)


Balance at December 28, 2013	$	1,170		$	—		$	1,170

The $1.2 million restructuring liability as of December 28, 2013 is expected to be paid during the period from fiscal 2014 through the third quarter of fiscal 2015.

On the accompanying balance sheet as of December 28, 2013, the reserve balance of $1.2 million was classified as follows: $0.8 million in "current portion of deferred rent" and $0.4 million in "deferred rent and other non-current liabilities".