11. Share-Based Compensation

CRA recorded approximately $5.8 million, $5.3 million, and $2.9 million of compensation expense for fiscal 2015, fiscal 2014, and fiscal 2013 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 and directors based on their respective estimated grant date fair values. Performance-vesting restricted stock units are expensed using the graded acceleration method.

In addition, CRA recorded $11,000, $271,000, and $147,000 of share-based compensation expense during fiscal 2015, fiscal 2014, and fiscal 2013, respectively, for share-based awards consisting of stock options and shares of restricted stock issued to non-employees (other than directors).

CRA maintains share-based compensation plans that use restricted stock, stock options, restricted stock units, as well as an employee stock purchase plan, to provide incentives to its directors, employees and independent contractors. Additionally, during fiscal 2009, CRA implemented a long-term incentive program for certain key employees. Under this program, participants may receive a mixture of stock options, time-vesting restricted stock units, and performance-vesting restricted stock units. The program is designed to reward key employees and provide participants the opportunity to share in the long-term growth of CRA. CRA has granted options, time-vesting restricted stock units, and performance-vesting restricted stock units under this program during fiscal 2009 through fiscal 2015, except fiscal 2012. These awards are granted under the 2006 Incentive Plan discussed below.

CRA's Amended and Restated 2006 Equity Incentive Plan, as amended (the "2006 Incentive Plan"), authorizes the grant of a variety of incentive and performance awards to CRA's directors, employees and independent contractors, including incentive stock options, nonqualified stock options, restricted stock awards, restricted stock unit awards, performance awards and other share-based awards. Each share of CRA's common stock issued pursuant to an award (other than a stock option) granted under the 2006 Incentive Plan on or after April 30, 2010 counts as 1.83 shares against the maximum number of shares issuable under the plan, as does any restricted stock unit or other performance award granted under the plan on or after April 30, 2010 to the extent that shares of CRA's common stock were or will be used for measurement purposes. The maximum number of shares issuable under the 2006 Incentive Plan is 4,874,000, consisting of (1) 500,000 shares initially reserved for issuance under the 2006 Incentive Plan, (2) 1,000,000 shares that either remained for future awards under CRA's 1998 Incentive and Nonqualified Stock Option Plan (the "1998 Plan") on April 21, 2006, the date CRA's shareholders initially approved the 2006 Incentive Plan, or were subject to stock options issued under the 1998 Plan that were forfeited or terminated after April 21, 2006, (3) 210,000 shares approved by CRA's shareholders in 2008, (4) 1,464,000 shares approved by CRA's shareholders in 2010, and (5) the 1,700,000 shares that CRA has determined to use of the 2,500,000 shares approved by CRA's shareholders in 2012.

Under CRA's 2009 Nonqualified Inducement Stock Option Plan, options to purchase 200,000 shares have been granted. A maximum of 250,000 shares may be issued pursuant to stock option grants under the 2009 Nonqualified Inducement Stock Option Plan. Accordingly, there are an additional 50,000 stock options available for grant under this plan. Each stock option granted under this plan vests over four years, has a term of seven years, and an exercise price equal to $50.00 per share.

A summary of option activity from all plans is as follows:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
								(in thousands)
Outstanding at January 3, 2015		1,154,945		$	29.93
Fiscal 2015:
Granted		250,835			21.74
Exercised		(29,288	)		20.57			$	103
Expired		(138,695	)		46.22
Forfeited		(31,019	)		38.66

Outstanding at January 2, 2016		1,206,778			26.36		3.98		42


Options exercisable at January 2, 2016		701,514			28.53		2.45		21


Vested or expected to vest at January 2, 2016		1,190,974		$	26.40		3.96	$	41

The weighted average fair market value using the Black-Scholes option-pricing model of the stock options granted in fiscal 2015, fiscal 2014 and fiscal 2013 was $7.37, $12.24 and $7.77, 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:

	2015			2014			2013
Risk-free interest rate		1.4	%		1.6	%		1.4	%
Expected volatility		39	%		43	%		47	%
Forfeiture rate		1.1	%		4.0	%		4.5	%
Weighted average expected life (in years)		4.50			5.00			5.00
Expected dividends		—			—			—

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 not considered in the option-pricing formula because CRA does not pay dividends and has no current plans to do so in the future. The forfeiture rate used was based upon historical experience. CRA believes its historical experience is an appropriate indicator of future forfeiture.

The aggregate intrinsic value of stock options exercised in fiscal 2015, fiscal 2014, and fiscal 2013 was approximately $0.1 million for each year. The following table summarizes stock options outstanding and stock options exercisable as of January 2, 2016:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding at January 2, 2016		Weighted-Average Remaining Contractual Life (years)		Weighted-Average Exercise Price		Number Exercisable at January 2, 2016		Weighted-Average Exercise Price
$18.48		244,625		4.88	$	18.48		122,296	$	18.48
$18.49 - 22.81		539,238		4.43		21.61		294,029		21.68
$22.82 - 29.07		80,400		1.02		24.23		78,400		24.21
$29.08 - 32.26		180,015		5.90		30.98		44,289		30.97
$32.27 - 48.85		12,500		0.07		48.85		12,500		48.85
$48.86 - 50.00		150,000		0.51		50.00		150,000		50.00
$50.01 - 53.72		—		—		—		—		—

Total		1,206,778		3.98	$	26.36		701,514	$	28.53

The following table summarizes the status of CRA's non-vested stock options since January 3, 2015:

	Non-vested Options
	Number of Shares			Weighted-Average Fair Value
Non-vested at January 3, 2015		417,185		$	9.98
Granted		250,835			7.48
Vested		(156,737	)		9.57
Forfeited		(6,019	)		11.61

Non-vested at January 2, 2016		505,264		$	8.75

The total fair value of stock options that vested during fiscal 2015, fiscal 2014, and fiscal 2013 was $1.5 million, $1.4 million, and $1.3 million, respectively. As of January 2, 2016, there was $4.1 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 3.1 years.

CRA grants restricted stock and time-vesting restricted stock unit awards, which are subject to the execution of a restricted stock agreement or restricted stock unit agreement, as applicable. Generally, shares of restricted stock and 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 restricted stock and time-vesting restricted stock unit awards as of January 2, 2016 was $6.4 million, which is expected to be recognized over a weighted-average period of 3.1 years.

The following table summarizes the status of CRA's non-vested restricted stock and time-vesting restricted stock unit awards since January 3, 2015:

	Non-vested Restricted Stock and Stock Units
	Number of Shares			Weighted-Average Fair Value
Non-vested at January 3, 2015		286,142		$	23.72
Granted		144,784		$	22.01
Vested		(106,504	)	$	22.72
Forfeited		(3,009	)	$	28.26

Non-vested at January 2, 2016		321,413		$	23.17

The total fair value of restricted units that vested during fiscal 2015, fiscal 2014, and fiscal 2013 was $2.4 million, $3.2 million, and $3.1 million, respectively.

In accordance with ASC Topic 718, for performance-vesting restricted stock units 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. As of January 2, 2016, the following shares may become issuable under performance-vesting restricted stock unit awards upon achievement of certain financial performance goals as follows: up to approximately 121,000 shares for a measurement period falling within the first quarter of fiscal 2014 through the fourth quarter of fiscal 2015, up to approximately 150,000 shares for a measurement period falling within the first quarter of fiscal 2015 through the fourth quarter of fiscal 2016 and up to approximately 204,000 shares for a measurement period falling within the first quarter of fiscal 2016 through the fourth quarter of fiscal 2017.

In fiscal 1998, CRA adopted its 1998 Employee Stock Purchase Plan. The 1998 Employee Stock Purchase Plan 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 Stock Purchase Plan. In fiscal 2015, fiscal 2014, and fiscal 2013, there were no offering periods under this plan and no shares were issued.

During fiscal 2015, CRA modified awards through an acceleration of the vesting schedule for an employee and a director in connection with their refirement. The modification resulted in total additional compensation cost of $294 thousand dollars.