7. Goodwill

In accordance with Accounting Standards Codification ("ASC") Topic 350, Intangibles—Goodwill and Other, goodwill is not subject to amortization, but is monitored at least annually for impairment, or more frequently, as necessary, if events or circumstances exist that would more likely than not reduce the fair value of the reporting unit below its carrying amount. For CRA's goodwill impairment analysis, CRA operates under one reporting unit. Under ASC Topic 350, in performing the first step of the goodwill impairment testing and measurement process, CRA compares its entity-wide estimated fair value to its net book value to identify potential impairment. Management estimates the entity-wide fair value utilizing CRA's market capitalization, plus an appropriate control premium. Market capitalization is determined by multiplying the shares outstanding on the test date by the market price of CRA's common stock on that date. CRA has utilized a control premium that considers appropriate industry, market and other pertinent factors, including indications of such premiums from data on recent acquisition transactions. If the fair value of CRA is less than its net book value, the second step is performed to determine if goodwill is impaired. If CRA determines through the impairment evaluation process that goodwill has been impaired, an impairment charge would be recorded in its consolidated income statements.

There were no impairment losses related to goodwill during each of the fiscal year to date periods ended June 28, 2014 and June 29, 2013, respectively, as there were no events or circumstances that would more likely than not reduce CRA's fair value below its carrying amount.

CRA continues to monitor its market capitalization. If CRA's market capitalization, plus an estimated control premium, is below its net book value for a period considered to be other-than-temporary, it is possible that CRA may be required to record an impairment of goodwill either as a result of the annual assessment that CRA conducts in the fourth quarter of each fiscal year, or in a future quarter if events or circumstances exist that would more likely than not reduce CRA's fair value below its carrying amount. A non-cash goodwill impairment charge would have the effect of decreasing CRA's earnings in such period.

The changes in the carrying amount of goodwill during the fiscal year to date period ended June 28, 2014, are as follows (in thousands):

	Goodwill, gross		Accumulated impairment losses			Goodwill, net

Balance at December 28, 2013	$	153,466	$	(71,893	)	$	81,573
Goodwill adjustments related to acquisitions		1,829		—			1,829
Effect of foreign currency translation		494		—			494


Balance at June 28, 2014	$	155,789	$	(71,893	)	$	83,896

The changes in the carrying amount of goodwill during the fiscal year to date period ended June 29, 2013, are as follows (in thousands):

	Goodwill, gross			Accumulated impairment losses			Goodwill, net

Balance at December 29, 2012	$	142,658		$	(71,893	)	$	70,765
Goodwill adjustments related to acquisition		5,358			—			5,358
Goodwill adjustments related to NeuCo		(63	)		—			(63	)
Effect of foreign currency translation		(787	)		—			(787	)


Balance at June 29, 2013	$	147,166		$	(71,893	)	$	75,273