(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
Large accelerated filer | ☐ | x | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Class | Outstanding at July 30, 2021 | |||||||||||||
Common Stock, no par value per share |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Revenues | $ | $ | $ | $ | |||||||||||||||||||
Costs of services (exclusive of depreciation and amortization) | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Foreign currency gains (losses), net | ( | ( | |||||||||||||||||||||
Income before provision for income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
July 3, 2021 | January 2, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowances of $ | |||||||||||
Unbilled services, net of allowances of $ | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Forgivable loans | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Right-of-use assets | |||||||||||
Deferred income taxes | |||||||||||
Forgivable loans, net of current portion | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Deferred revenue and other liabilities | |||||||||||
Current portion of lease liabilities | |||||||||||
Current portion of deferred compensation | |||||||||||
Revolving line of credit | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities: | |||||||||||
Deferred compensation and other non-current liabilities | |||||||||||
Non-current portion of lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Total non-current liabilities | |||||||||||
Commitments and contingencies (Note 10) | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, | |||||||||||
Common stock, | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Fiscal Year-to-Date Period Ended | |||||||||||
July 3, 2021 | June 27, 2020 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Right-of-use asset amortization | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Share-based compensation expense | |||||||||||
Accounts receivable allowances | ( | ||||||||||
Unrealized foreign currency remeasurement (gains) losses, net | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Unbilled services, net | ( | ( | |||||||||
Prepaid expenses and other current assets, and other assets | ( | ( | |||||||||
Forgivable loans | ( | ||||||||||
Incentive cash awards | |||||||||||
Accounts payable, accrued expenses, and other liabilities | ( | ( | |||||||||
Lease liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Issuance of common stock, principally stock option exercises | |||||||||||
Borrowings under revolving line of credit | |||||||||||
Repayments under revolving line of credit | ( | ( | |||||||||
Tax withholding payments reimbursed by shares | ( | ( | |||||||||
Cash paid for contingent consideration | ( | ||||||||||
Cash dividends paid | ( | ( | |||||||||
Repurchase of common stock | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of foreign exchange rates on cash and cash equivalents | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Noncash investing and financing activities: | |||||||||||
Purchases of property and equipment not yet paid for | $ | $ | |||||||||
Asset retirement obligations | $ | $ | |||||||||
Right-of-use assets obtained in exchange for lease obligations | $ | $ | |||||||||
Restricted common stock issued for contingent consideration | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for taxes | $ | $ | |||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for amounts included in operating lease liabilities | $ | $ |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||
Shares Issued | Amount | ||||||||||||||||||||||||||||
BALANCE AT JANUARY 2, 2021 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ( | ( | ||||||||||||||||||||||||
Issuance of restricted common stock for contingent consideration | — | — | |||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Restricted shares vestings | — | — | — | — | |||||||||||||||||||||||||
Redemption of vested employee restricted shares for tax withholding | ( | ( | — | — | ( | ||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | — | ( | ||||||||||||||||||||||||
Accrued dividends on unvested shares | — | — | — | ||||||||||||||||||||||||||
Cash dividends paid ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
BALANCE AT APRIL 3, 2021 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ( | ( | ||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Restricted shares vestings | — | — | — | — | |||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | — | ( | ||||||||||||||||||||||||
Accrued dividends on unvested shares | — | — | ( | — | ( | ||||||||||||||||||||||||
Cash dividends paid ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
BALANCE AT JULY 3, 2021 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||||||||||||
Shares Issued | Amount | ||||||||||||||||||||||||||||
BALANCE AT DECEMBER 28, 2019 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Balance at December 29, 2019, as previously reported | $ | $ | ( | $ | |||||||||||||||||||||||||
— | — | ( | — | ( | |||||||||||||||||||||||||
Balance at December 29, 2019, as adjusted | $ | $ | ( | $ | |||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ( | ( | ||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Restricted shares vestings | — | — | — | — | |||||||||||||||||||||||||
Redemption of vested employee restricted shares for tax withholding | ( | ( | — | — | ( | ||||||||||||||||||||||||
Shares repurchased | ( | ( | — | — | ( | ||||||||||||||||||||||||
Accrued dividends on unvested shares | — | — | — | ||||||||||||||||||||||||||
Cash dividends paid ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
BALANCE AT MARCH 28, 2020 | $ | $ | ( | $ | |||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | ||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Restricted shares vestings | — | — | — | — | |||||||||||||||||||||||||
Accrued dividends on unvested shares | — | — | ( | — | ( | ||||||||||||||||||||||||
Cash dividends paid ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
BALANCE AT JUNE 27, 2020 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||
Type of Contract | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||||
Consulting services revenues | ||||||||||||||||||||||||||
Fixed-price | $ | $ | $ | $ | ||||||||||||||||||||||
Time-and-materials | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||
Geographic Breakdown | July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||||
Consulting services revenues | ||||||||||||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||||||||
United Kingdom | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Bad debt expense (recovery), net | $ | $ | ( | $ | ( | $ | ( |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Reimbursable expenses | $ | $ | $ | $ |
July 3, 2021 | January 2, 2021 | |||||||||||||
Contract liabilities | $ | $ |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Amounts included in contract liabilities at the beginning of the period | $ | $ | $ | $ | ||||||||||||||||||||||
Performance obligations satisfied in previous periods | $ | $ | $ | $ |
Fiscal Year-to-Date Period Ended | Fiscal Year Ended | |||||||||||||
July 3, 2021 | January 2, 2021 | |||||||||||||
Beginning balance | $ | $ | ||||||||||||
Advances | ||||||||||||||
Reclassifications from accrued expenses or to other assets (1) | ( | |||||||||||||
Amortization | ( | ( | ||||||||||||
Effects of foreign currency translation | ||||||||||||||
Ending balance | $ | $ | ||||||||||||
Current portion of forgivable loans | $ | $ | ||||||||||||
Non-current portion of forgivable loans | $ | $ |
Goodwill | $ | |||||||
Accumulated goodwill impairment | ( | |||||||
Goodwill, net at January 2, 2021 | ||||||||
Foreign currency translation adjustment | ||||||||
Goodwill, net at July 3, 2021 (1) | $ |
July 3, 2021 | January 2, 2021 | |||||||||||||
Non-competition agreements | $ | $ | ||||||||||||
Customer relationships | ||||||||||||||
Total cost | ||||||||||||||
Accumulated amortization | ( | ( | ||||||||||||
Total intangible assets, net | $ | $ |
July 3, 2021 | January 2, 2021 | ||||||||||
Compensation and related expenses | $ | $ | |||||||||
Income taxes payable | |||||||||||
Performance awards | |||||||||||
Other professional fees | |||||||||||
Direct project accruals | |||||||||||
Accrued leasehold improvements | |||||||||||
Other | |||||||||||
Total accrued expenses | $ | $ |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Net income, as reported | $ | $ | $ | $ | ||||||||||||||||||||||
Less: net income attributable to participating shares | ||||||||||||||||||||||||||
Net income available to common shareholders | $ | $ | $ | $ |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Basic weighted average shares outstanding | ||||||||||||||||||||||||||
Dilutive stock options and restricted stock units | ||||||||||||||||||||||||||
Diluted weighted average shares outstanding |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | |||||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | |||||||||||||||||||||||
Anti-dilutive share-based awards excluded |
January 2, 2021 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Money market mutual funds | $ | $ | $ | |||||||||||||||||
Total Assets | $ | $ | $ | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Contingent consideration liability | $ | $ | $ | |||||||||||||||||
Total Liabilities | $ | $ | $ |
Fiscal Year-to-Date Period Ended | Fiscal Year Ended | |||||||||||||
July 3, 2021 | January 2, 2021 | |||||||||||||
Beginning balance | $ | $ | ||||||||||||
Remeasurement of acquisition-related contingent consideration | ||||||||||||||
Accretion | ||||||||||||||
Payment of contingent consideration | ( | |||||||||||||
Ending balance | $ | $ |
Fiscal Quarter Ended | Fiscal Year-to-Date Period Ended | ||||||||||||||||||||||
July 3, 2021 | June 27, 2020 | July 3, 2021 | June 27, 2020 | ||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Costs of services (exclusive of depreciation and amortization) | 70.9 | 73.3 | 71.4 | 72.7 | |||||||||||||||||||
Selling, general and administrative expenses | 16.2 | 17.4 | 16.0 | 18.3 | |||||||||||||||||||
Depreciation and amortization | 2.2 | 2.5 | 2.2 | 2.4 | |||||||||||||||||||
Income from operations | 10.8 | 6.8 | 10.4 | 6.6 | |||||||||||||||||||
Interest expense, net | (0.3) | (0.3) | (0.2) | (0.3) | |||||||||||||||||||
Foreign currency gains (losses), net (1) | — | (0.1) | (0.2) | 0.5 | |||||||||||||||||||
Income before provision for income taxes | 10.5 | 6.4 | 10.0 | 6.8 | |||||||||||||||||||
Provision for income taxes | 2.7 | 1.6 | 2.5 | 1.9 | |||||||||||||||||||
Net income | 7.8 | % | 4.8 | % | 7.5 | % | 5.0 | % |
Period | (a) Total Number of Shares Purchased (1) | (b) Average Price Paid per Share (1) | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) | ||||||||||||||||||||||
April 4, 2021 to May 1, 2021 | 337,837 | $ | 74.00 | 337,837 | $ | 40,484,285 | ||||||||||||||||||||
May 2, 2021 to May 29, 2021 | — | $ | — | — | $ | 40,484,285 | ||||||||||||||||||||
May 30, 2021 to July 3, 2021 | — | $ | — | — | $ | 40,484,285 |
Item No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | The following financial statements from CRA International, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 3, 2021, formatted in Inline XBRL (eXtensible Business Reporting Language), as follows: (i) Condensed Consolidated Statements of Operations (unaudited) for the fiscal quarters and fiscal year-to-date periods ended July 3, 2021 and June 27, 2020, (ii) Condensed Consolidated Statements of Comprehensive Income (unaudited) for the fiscal quarters and fiscal year-to-date periods ended July 3, 2021 and June 27, 2020, (iii) Condensed Consolidated Balance Sheets (unaudited) at July 3, 2021 and January 2, 2021, (iv) Condensed Consolidated Statements of Cash Flows (unaudited) for the fiscal year-to-date periods ended July 3, 2021 and June 27, 2020, (v) Condensed Consolidated Statement of Shareholders’ Equity (unaudited) for the fiscal year-to-date periods ended July 3, 2021 and June 27, 2020, and (vi) Notes to Condensed Consolidated Financial Statements (Unaudited). | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
CRA INTERNATIONAL, INC. | ||||||||
Date: August 5, 2021 | By: | /s/ PAUL A. MALEH | ||||||
Paul A. Maleh | ||||||||
President and Chief Executive Officer | ||||||||
Date: August 5, 2021 | By: | /s/ DANIEL K. MAHONEY | ||||||
Daniel K. Mahoney | ||||||||
Chief Financial Officer, Executive Vice President and Treasurer | ||||||||
Date: August 5, 2021 | By: | /s/ PAUL A. MALEH | ||||||
Paul A. Maleh | ||||||||
President and Chief Executive Officer |
Date: August 5, 2021 | By: | /s/ DANIEL K. MAHONEY | ||||||
Daniel K. Mahoney | ||||||||
Chief Financial Officer, Executive Vice President and Treasurer |
/s/ PAUL A. MALEH | |||||
Paul A. Maleh | |||||
President and Chief Executive Officer | |||||
Date: August 5, 2021 |
/s/ DANIEL K. MAHONEY | |||||
Daniel K. Mahoney | |||||
Chief Financial Officer, Executive Vice President and Treasurer | |||||
Date: August 5, 2021 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2021 |
Jun. 27, 2020 |
Jul. 03, 2021 |
Jun. 27, 2020 |
|
Income Statement [Abstract] | ||||
Revenues | $ 148,237 | $ 123,031 | $ 294,755 | $ 249,189 |
Costs of services (exclusive of depreciation and amortization) | 105,042 | 90,168 | 210,416 | 181,165 |
Selling, general and administrative expenses | 24,043 | 21,418 | 47,250 | 45,541 |
Depreciation and amortization | 3,215 | 3,106 | 6,516 | 6,049 |
Income from operations | 15,937 | 8,339 | 30,573 | 16,434 |
Interest expense, net | (409) | (372) | (608) | (734) |
Foreign currency gains (losses), net | 63 | (102) | (488) | 1,320 |
Income before provision for income taxes | 15,591 | 7,865 | 29,477 | 17,020 |
Provision for income taxes | 4,025 | 1,934 | 7,410 | 4,621 |
Net income | $ 11,566 | $ 5,931 | $ 22,067 | $ 12,399 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.57 | $ 0.76 | $ 2.94 | $ 1.59 |
Diluted (in dollars per share) | $ 1.53 | $ 0.75 | $ 2.86 | $ 1.55 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 7,320 | 7,764 | 7,473 | 7,784 |
Diluted (in shares) | 7,539 | 7,920 | 7,685 | 7,979 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 03, 2021 |
Jun. 27, 2020 |
Jul. 03, 2021 |
Jun. 27, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 11,566 | $ 5,931 | $ 22,067 | $ 12,399 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments, net of tax | (136) | 536 | (247) | (1,891) |
Comprehensive income | $ 11,430 | $ 6,467 | $ 21,820 | $ 10,508 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jul. 03, 2021 |
Jan. 02, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 3,959 | $ 3,595 |
Allowance for unbilled services | $ 1,430 | $ 1,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value ( in dollars per share ) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (shares) | 7,339,322 | 7,693,497 |
Common stock, shares outstanding (shares) | 7,339,322 | 7,693,497 |
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Jul. 03, 2021 |
Apr. 03, 2021 |
Jun. 27, 2020 |
Mar. 28, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid to shareholders (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.23 | $ 0.23 |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jul. 03, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business CRA International, Inc. (“CRA” or the “Company”) is a worldwide leading consulting services firm that applies advanced analytic techniques and in-depth industry knowledge to complex engagements for a broad range of clients. CRA offers services in two broad areas: litigation, regulatory, and financial consulting and management consulting. CRA operates in one business segment. CRA operates its business under its registered trade name, Charles River Associates. Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of CRA International, Inc. and its wholly-owned subsidiaries (collectively the “Company”), which require consolidation after the elimination of intercompany accounts and transactions. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair presentation of CRA’s results of operations, financial position, cash flows, and shareholders’ equity for the interim periods presented in conformity with GAAP. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended January 2, 2021 included in CRA’s Annual Report on Form 10-K filed with the SEC on March 4, 2021 (the “2020 Form 10-K”). Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported results of operations, financial position, or cash flows. Estimates The preparation of financial statements in conformity with GAAP requires management to make significant estimates and judgments that affect the reported amounts of assets and liabilities, as well as the related disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of consolidated revenues and expenses during the reporting period. Estimates in these condensed consolidated financial statements include, but are not limited to, allowances for accounts receivable and unbilled services, revenue recognition on fixed price contracts, variable consideration to be included in the transaction price of revenue contracts, depreciation of property and equipment, measurement of operating lease right-of-use (“ROU”) assets and liabilities, share-based compensation, valuation of contingent consideration liabilities, valuation of acquired intangible assets, impairment of long-lived assets, goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued incentive compensation, and certain other accrued expenses. These items are monitored and analyzed by CRA for changes in facts and circumstances, 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. Common Stock and Equity Equity transactions consist primarily of the repurchase by CRA of its common stock under its share repurchase program and the recognition of compensation expense and issuance of common stock under CRA’s 2006 Equity Incentive Plan. The Company repurchases its common stock under its share repurchase program in open market purchases (including through any Rule 10b5-1 plan adopted by CRA) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations. During the fiscal quarter ended July 3, 2021, CRA repurchased shares of its common stock through a modified "Dutch auction" self-tender offer, as further described in Note 11. The purchase price of repurchases is first charged against available paid-in capital (“PIC”) until PIC is exhausted, wherein purchases will be charged to retained earnings. CRA’s common stock has no par value. All shares repurchased have been retired. Recent Accounting Standards Adopted Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes CRA adopted Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) on the first day of fiscal 2021. ASU 2019-12 simplifies or clarifies accounting for income taxes by changing prior guidance related to accounting for year-to-date losses in interim periods, accounting for tax law changes in interim periods, determining when a deferred tax liability is recognized for foreign subsidiaries that transition to or from being accounted for as equity method investments, application of income tax guidance to franchise taxes that are partially based on income, and making an intra-period allocation in situations where there is a loss in continuing operations and income or gain from other items. ASU 2019-12 also introduces new guidance to evaluate whether a step up in the tax basis of goodwill relates to a business combination or a separate transaction and provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. The adoption of the new standard did not have a material impact on CRA's financial position, results of operations, cash flows, or disclosures on the date of transition.
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Fair Value of Financial Instruments |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments As of July 3, 2021, CRA did not have any financial instruments measured at fair value on a recurring basis. The following table presents CRA’s financial instruments recorded in the condensed consolidated financial statements at January 2, 2021, which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):
The fair value of CRA’s money market mutual fund share holdings was $1.00 per share. The contingent consideration liability pertained to estimated future contingent consideration payments related to the acquisition of C1 Consulting, LLC, an independent consulting firm, and its wholly-owned subsidiary C1 Associates (collectively, “C1”). The following table summarizes the changes in the contingent consideration liabilities (in thousands):
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The contracts CRA enters into and operates under specify whether the projects are billed on a time-and-materials or a fixed-price basis. Time-and-materials contracts are typically used for litigation, regulatory, and financial consulting projects while fixed-price contracts are principally used for management consulting projects. In general, project costs are classified in costs of services and are based on the direct salary of CRA’s employee consultants on the engagement, plus all direct expenses incurred to complete the project, including any amounts billed to CRA by its non-employee experts. Disaggregation of Revenue The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands):
Reserves for Variable Consideration and Credit Risk Revenues from CRA's consulting services are recorded at the net transaction price, which includes estimates of variable consideration for which reserves are established. Variable consideration reserves are based on specific price concessions and those expected to be extended to CRA customers estimated by CRA's historical realization rates. Reserves for variable consideration are recorded as a component of the allowances for accounts receivable and unbilled services on the condensed consolidated balance sheets. Adjustments to the reserves for variable consideration are included in revenues on the condensed consolidated statements of operations. CRA also maintains allowances for accounts receivable and unbilled services for estimated losses resulting from clients’ failure to make required payments. CRA adopted ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326") on the first day of fiscal 2020, which changed the method CRA utilizes to estimate reserves related to credit risk. As a result of the adoption, CRA recognized a $0.2 million cumulative-effect increase to allowances for accounts receivable and unbilled services and a reduction to the fiscal 2020 opening balance of retained earnings. The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands):
Reimbursable Expenses Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants and other reimbursable expenses. CRA recovers substantially all of these costs. The following expenses are subject to reimbursement (in thousands):
Contract Balances from Contracts with Customers CRA defines contract assets as assets for which it has recorded revenue because it determines that it is probable that it will earn a performance-based or contingent fee but is not yet entitled to receive a fee because certain events, such as completion of the measurement period or client approval, must occur. The contract assets balance was immaterial as of July 3, 2021 and January 2, 2021. When consideration is received, or such consideration is unconditionally due from a customer prior to transferring consulting services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after performance obligations have been satisfied and all revenue recognition criteria have been met. The following table presents the closing balances of CRA's contract liabilities (in thousands):
CRA recognized the following revenue that was included in the contract liabilities balance as of the opening of the respective period or for performance obligations satisfied in previous periods (in thousands):
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Forgivable Loans |
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Forgivable Loans | 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 may be denominated in local currencies. A portion of these loans is collateralized. 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. 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. The following table presents forgivable loan activity for the respective periods (in thousands):
_______________________________ (1)Relates to the reclassification of performance awards previously recorded as accrued expenses or forgivable loans that have been reclassified to other receivables.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the fiscal year-to-date period ended July 3, 2021 are summarized as follows (in thousands):
_______________________________ (1)Goodwill, net at July 3, 2021, is comprised of goodwill of $161.1 million and accumulated impairment of $71.9 million. Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and amortized over their expected useful lives. There were no impairment losses related to intangible assets during the fiscal quarter ended July 3, 2021 or during the fiscal year ended January 2, 2021. The components of acquired identifiable intangible assets are as follows (in thousands):
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Accrued Expenses |
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Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands):
As of July 3, 2021, and January 2, 2021, approximately $67.5 million and $102.6 million, respectively, of accrued bonuses were included above in “Compensation and related expenses.”
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the fiscal quarters ended July 3, 2021 and June 27, 2020, CRA’s effective income tax rate (“ETR”) was 25.8% and 24.6%, respectively. The ETR for the second quarter of fiscal 2021 was higher than the prior year primarily due to the prior year's tax impact of increased forecasted profit as compared to the fiscal quarter ended March 28, 2020, that was non-recurring in the current year. The rate was also higher this year as a result of the remeasurement of the U.K.'s long-term deferred tax liabilities stemming from the enactment of a U.K. statutory tax rate increase offset by an increase in the tax benefit related to the accounting for stock-based compensation. For the fiscal year-to-date periods ended July 3, 2021 and June 27, 2020, CRA's ETR was 25.1% and 27.2%, respectively. The ETR for the current fiscal year-to-date period was lower than the prior year due in part to the higher year-to-date profit to dilute the tax impact of non-deductible items resulting primarily from limitations on the deductibility of compensation paid to executive officers. The rate was also lower due to an increase in the tax benefit related to the accounting for stock-based compensation partially offset by the impact of U.K. statutory tax rate increase. During the fourth quarter of fiscal 2020, CRA considered the operating needs of the United Kingdom ("U.K.") subsidiary, as well as the tax implications of no longer asserting indefinite reinvestment with respect to the U.K. operations. As a result of both a qualitative and quantitative analysis, previously taxed and untaxed post fiscal 2018 U.K. earnings were no longer considered permanently reinvested. Deferred taxes that are a consequence of foreign exchange translation resulting from earnings that are no longer considered permanently reinvested are recorded as a component of foreign currency translation adjustments on the condensed consolidated statements of comprehensive income. For the fiscal quarter ended April 3, 2021, CRA’s U.K. subsidiary distributed approximately £12.0 million of both previously taxed and untaxed earnings to CRA’s U.S. parent entity, the foreign currency translation impact of which was immaterial. Deferred income taxes or foreign withholding taxes, estimated to be $0.4 million, have not been recorded for other jurisdictions as those earnings are considered to be permanently reinvested.
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Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share CRA calculates basic earnings per share using the two-class method. CRA calculates diluted earnings per share using the more dilutive of either the two-class method or treasury stock method. The two-class method was more dilutive for the fiscal quarters and fiscal year-to-date periods ended July 3, 2021 and June 27, 2020. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all 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. Net earnings allocable to these participating securities were not material for the fiscal quarters and fiscal year-to-date periods ended July 3, 2021 and June 27, 2020. The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands):
The following table presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands):
The following table presents 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. For the fiscal quarter and fiscal year-to-date period ended June 27, 2020, the share-based awards each period were anti-dilutive because their exercise price exceeded the average market price over the respective period. There were no anti-dilutive shares for the fiscal quarter and fiscal year-to-date period ended July 3, 2021.
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Credit Agreement |
6 Months Ended |
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Jul. 03, 2021 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement CRA is party to an amended and restated credit agreement that provides the Company with a $175.0 million revolving credit facility, which reflects an increase to the capacity by $50.0 million per an amendment to the credit agreement on January 12, 2021, and includes a $15.0 million sublimit for the issuance of letters of credit. CRA may use the proceeds of the revolving credit facility to provide working capital and for other general corporate purposes. CRA may repay any borrowings under the revolving credit facility at any time, but any borrowings must be repaid no later than October 24, 2022. There was $45.0 million in borrowings outstanding under this revolving credit facility as of July 3, 2021. There were no borrowings outstanding under this facility as of January 2, 2021. As of July 3, 2021, the amount available under this revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $4.4 million. Under the credit agreement, CRA must comply with various financial and non-financial covenants. Compliance with these financial covenants is tested on a fiscal quarterly basis. As of July 3, 2021, CRA was in compliance with the covenants of its credit agreement.
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Commitments and Contingencies |
6 Months Ended |
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Jul. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As described in the previous note, CRA is party to standby letters of credit with its bank in support of minimum future lease payments under leases for permanent office space. CRA is subject to legal actions arising in the ordinary course of business. In management’s opinion, based on current knowledge, CRA believes it has adequate legal defenses or insurance coverage, or both, with respect to the eventuality of such actions. CRA does not believe any settlement or judgment relating to any pending legal action would materially affect its financial position or results of operations. However, the outcome of such legal actions is inherently unpredictable and subject to inherent uncertainties.
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Self-Tender Offer |
6 Months Ended |
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Jul. 03, 2021 | |
Equity [Abstract] | |
Self-Tender Offer | Self-Tender OfferOn March 8, 2021, CRA commenced a modified "Dutch auction" self-tender offer to purchase up to $25.0 million in value of shares of its common stock at a price of not less than $66.25 per share nor greater than $76.00 per share. The self-tender offer expired on April 5, 2021. On April 8, 2021, CRA paid $25.3 million, including transaction costs, to repurchase 337,837 shares at a purchase price of $74.00 per share. The purchase price and transaction costs were funded from the revolving credit facility and cash on hand. The repurchased shares were retired. |
Subsequent Events |
6 Months Ended |
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Jul. 03, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn August 5, 2021, CRA announced that its Board of Directors declared a quarterly cash dividend of $0.26 per common share, payable on September 10, 2021 to shareholders of record as of August 31, 2021. |
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jul. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of CRA International, Inc. and its wholly-owned subsidiaries (collectively the “Company”), which require consolidation after the elimination of intercompany accounts and transactions. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair presentation of CRA’s results of operations, financial position, cash flows, and shareholders’ equity for the interim periods presented in conformity with GAAP. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended January 2, 2021 included in CRA’s Annual Report on Form 10-K filed with the SEC on March 4, 2021 (the “2020 Form 10-K”). Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on previously reported results of operations, financial position, or cash flows.
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Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make significant estimates and judgments that affect the reported amounts of assets and liabilities, as well as the related disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of consolidated revenues and expenses during the reporting period. Estimates in these condensed consolidated financial statements include, but are not limited to, allowances for accounts receivable and unbilled services, revenue recognition on fixed price contracts, variable consideration to be included in the transaction price of revenue contracts, depreciation of property and equipment, measurement of operating lease right-of-use (“ROU”) assets and liabilities, share-based compensation, valuation of contingent consideration liabilities, valuation of acquired intangible assets, impairment of long-lived assets, goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued incentive compensation, and certain other accrued expenses. These items are monitored and analyzed by CRA for changes in facts and circumstances, 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.
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Common Stock and Equity | Common Stock and Equity Equity transactions consist primarily of the repurchase by CRA of its common stock under its share repurchase program and the recognition of compensation expense and issuance of common stock under CRA’s 2006 Equity Incentive Plan. The Company repurchases its common stock under its share repurchase program in open market purchases (including through any Rule 10b5-1 plan adopted by CRA) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations. During the fiscal quarter ended July 3, 2021, CRA repurchased shares of its common stock through a modified "Dutch auction" self-tender offer, as further described in Note 11. The purchase price of repurchases is first charged against available paid-in capital (“PIC”) until PIC is exhausted, wherein purchases will be charged to retained earnings. CRA’s common stock has no par value. All shares repurchased have been retired.
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Recent Accounting Standards Adopted | Recent Accounting Standards Adopted Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes CRA adopted Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) on the first day of fiscal 2021. ASU 2019-12 simplifies or clarifies accounting for income taxes by changing prior guidance related to accounting for year-to-date losses in interim periods, accounting for tax law changes in interim periods, determining when a deferred tax liability is recognized for foreign subsidiaries that transition to or from being accounted for as equity method investments, application of income tax guidance to franchise taxes that are partially based on income, and making an intra-period allocation in situations where there is a loss in continuing operations and income or gain from other items. ASU 2019-12 also introduces new guidance to evaluate whether a step up in the tax basis of goodwill relates to a business combination or a separate transaction and provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. The adoption of the new standard did not have a material impact on CRA's financial position, results of operations, cash flows, or disclosures on the date of transition.
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Fair value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets that are measured and recorded at fair value on a recurring basis | The following table presents CRA’s financial instruments recorded in the condensed consolidated financial statements at January 2, 2021, which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):
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Schedule of liabilities that are measured and recorded at fair value on a recurring basis | The following table presents CRA’s financial instruments recorded in the condensed consolidated financial statements at January 2, 2021, which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):
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Summary of the changes in the contingent consideration liabilities | The following table summarizes the changes in the contingent consideration liabilities (in thousands):
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of disaggregate CRA's revenue by type of contract and geographic location | The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands):
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Schedule of bad debt expense, net of recoveries | The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands):
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Schedule of expenses are subject to reimbursement | The following expenses are subject to reimbursement (in thousands):
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Schedule of opening and closing balances and result of changes in contract liability balance (in thousands) | The following table presents the closing balances of CRA's contract liabilities (in thousands):
CRA recognized the following revenue that was included in the contract liabilities balance as of the opening of the respective period or for performance obligations satisfied in previous periods (in thousands):
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Forgivable Loans (Tables) |
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Forgivable Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of forgivable loan activity | The following table presents forgivable loan activity for the respective periods (in thousands):
_______________________________ (1)Relates to the reclassification of performance awards previously recorded as accrued expenses or forgivable loans that have been reclassified to other receivables.
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Goodwill and Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 03, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the fiscal year-to-date period ended July 3, 2021 are summarized as follows (in thousands):
_______________________________ (1)Goodwill, net at July 3, 2021, is comprised of goodwill of $161.1 million and accumulated impairment of $71.9 million.
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Schedule of components of acquired identifiable intangible assets | The components of acquired identifiable intangible assets are as follows (in thousands):
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Accrued Expenses (Tables) |
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Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expenses | Accrued expenses consist of the following (in thousands):
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Net Income Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation from net income to the net income available to common shareholders | The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands):
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Schedule of reconciliation of basic to diluted weighted average shares of common stock outstanding | The following table presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands):
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Schedule of anti-dilutive share-based awards excluded from common stock equivalents | The following table presents 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. For the fiscal quarter and fiscal year-to-date period ended June 27, 2020, the share-based awards each period were anti-dilutive because their exercise price exceeded the average market price over the respective period. There were no anti-dilutive shares for the fiscal quarter and fiscal year-to-date period ended July 3, 2021.
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Summary of Significant Accounting Policies - Description of Business and Fiscal Year (Details) |
6 Months Ended |
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Jul. 03, 2021
segment
area
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Accounting Policies [Abstract] | |
Number of broad areas of consulting services | area | 2 |
Number of business segment | segment | 1 |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jul. 03, 2021 |
Jun. 27, 2020 |
Jul. 03, 2021 |
Jun. 27, 2020 |
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Disaggregation of Revenue | ||||
Consulting services revenues | $ 148,237 | $ 123,031 | $ 294,755 | $ 249,189 |
United States | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | 120,810 | 99,416 | 238,057 | 200,156 |
United Kingdom | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | 19,740 | 17,931 | 43,026 | 36,997 |
Other | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | 7,687 | 5,684 | 13,672 | 12,036 |
Fixed-price | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | 36,245 | 30,783 | 69,678 | 59,771 |
Time-and-materials | ||||
Disaggregation of Revenue | ||||
Consulting services revenues | $ 111,992 | $ 92,248 | $ 225,077 | $ 189,418 |
Revenue Recognition - Contract Balances from Contracts with Customers (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
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Jul. 03, 2021 |
Jun. 27, 2020 |
Jul. 03, 2021 |
Jun. 27, 2020 |
Jan. 02, 2021 |
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Contract liabilities: | |||||
Contract liabilities | $ 1,893 | $ 1,893 | $ 5,527 | ||
Revenue recognized from: | |||||
Amounts included in contract liabilities at the beginning of the period | 2,220 | $ 2,940 | 5,057 | $ 3,250 | |
Performance obligations satisfied in previous periods | $ 4,471 | $ 3,554 | $ 2,684 | $ 4,075 |
Forgivable Loans (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jul. 03, 2021 |
Jan. 02, 2021 |
|
Forgivable loan activity | ||
Beginning balance | $ 61,613 | $ 55,141 |
Advances | 4,530 | 42,418 |
Reclassifications from accrued expenses or to other assets | 0 | (9,713) |
Amortization | (12,656) | (26,628) |
Effects of foreign currency translation | 107 | 395 |
Ending balance | 53,594 | 61,613 |
Current portion of forgivable loans | 8,654 | 14,749 |
Non-current portion of forgivable loans | $ 44,940 | $ 46,864 |
Goodwill and Intangible Assets (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jul. 03, 2021 |
Jul. 03, 2021 |
Jan. 02, 2021 |
|
Changes in the carrying amount of goodwill | |||
Goodwill | $ 161,100,000 | $ 161,100,000 | $ 161,080,000 |
Accumulated goodwill impairment | (71,900,000) | (71,900,000) | (71,893,000) |
Balance at the beginning of the period, Goodwill, net | 89,187,000 | ||
Foreign currency translation adjustment and other | 56,000 | ||
Balance at the end of the period, Goodwill, net | 89,243,000 | $ 89,243,000 | 89,187,000 |
Intangible assets impairment losses | $ 0 | $ 0 |
Goodwill and Intangible Assets - Acquired and Amortization (Details) - USD ($) $ in Thousands |
Jul. 03, 2021 |
Jan. 02, 2021 |
---|---|---|
Acquired identifiable intangible assets | ||
Total intangible asset cost | $ 8,500 | $ 12,400 |
Accumulated amortization | (3,880) | (7,292) |
Total intangible assets, net | 4,620 | 5,108 |
Non-competition agreements | ||
Acquired identifiable intangible assets | ||
Total intangible asset cost | 280 | 280 |
Customer relationships | ||
Acquired identifiable intangible assets | ||
Total intangible asset cost | $ 8,220 | $ 12,120 |
Accrued Expenses (Details) - USD ($) $ in Thousands |
Jul. 03, 2021 |
Jan. 02, 2021 |
---|---|---|
Accrued Liabilities, Current [Abstract] | ||
Compensation and related expenses | $ 89,954 | $ 123,540 |
Income taxes payable | 449 | 1,927 |
Performance awards | 2,103 | 2,176 |
Other professional fees | 1,655 | 1,541 |
Direct project accruals | 2,442 | 3,988 |
Accrued leasehold improvements | 40 | 52 |
Other | 2,800 | 3,152 |
Total accrued expenses | 99,443 | 136,376 |
Compensation and related expenses | ||
Accrued bonuses | $ 67,500 | $ 102,600 |
Income Taxes (Details) £ in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 03, 2021
USD ($)
|
Apr. 03, 2021
GBP (£)
|
Jun. 27, 2020 |
Jul. 03, 2021
USD ($)
|
Jun. 27, 2020 |
|
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (as a percent) | 25.80% | 24.60% | 25.10% | 27.20% | |
Distributed foreign earnings | £ | £ 12.0 | ||||
Deferred tax liability recognized, undistributed foreign earnings | $ | $ 0.4 | $ 0.4 |
Credit Agreement (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jul. 03, 2021 |
Jan. 02, 2021 |
|
Senior Loan Agreement | ||
Borrowings on revolving line of credit outstanding | $ 45,000,000 | $ 0 |
Revolving credit facility | ||
Senior Loan Agreement | ||
Revolving credit facility, maximum capacity | 175,000,000.0 | |
Increased capacity of revolving credit facility, amount | 50,000,000.0 | |
Borrowings on revolving line of credit outstanding | 45,000,000.0 | $ 0 |
Secured by letters of credit | ||
Senior Loan Agreement | ||
Revolving credit facility, maximum capacity | 15,000,000.0 | |
Amount available under revolving credit facility reduced | $ 4,400,000 |
Self-Tender Offer (Details) - Self Tender Offer - USD ($) |
Apr. 08, 2021 |
Mar. 08, 2021 |
---|---|---|
Self-Tender Stock Offering [Line Items] | ||
Self-tender stock offering, authorized amount | $ 25,000,000.0 | |
Self-Tender stock offering, share purchase price (in dollars per share) | $ 74.00 | |
Payments for Self-Tender stock offering, net | $ 25,300,000 | |
Self-tender stock offering, number of shares repurchased (in shares) | 337,837 | |
Minimum | ||
Self-Tender Stock Offering [Line Items] | ||
Self-Tender stock offering, share purchase price (in dollars per share) | $ 66.25 | |
Maximum | ||
Self-Tender Stock Offering [Line Items] | ||
Self-Tender stock offering, share purchase price (in dollars per share) | $ 76.00 |
Subsequent Events (Details) - $ / shares |
3 Months Ended | ||||
---|---|---|---|---|---|
Aug. 05, 2021 |
Jul. 03, 2021 |
Apr. 03, 2021 |
Jun. 27, 2020 |
Mar. 28, 2020 |
|
Subsequent Events | |||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.23 | $ 0.23 | |
Subsequent Events | |||||
Subsequent Events | |||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.26 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |
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