Revenue Recognition

9 Months Ended

Oct. 01, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenues and AllowancesThe 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):

	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended
Type of Contract	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Consulting services revenues:
Fixed-price	$	24,201	$	31,741	$	80,515	$	101,419
Time-and-materials	124,240		104,671		365,410		329,748
Total	$	148,441	$	136,412	$	445,925	$	431,167

	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended
Geographic Breakdown	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Consulting services revenues:
United States	$	121,496	$	109,387	$	358,583	$	347,444
United Kingdom	20,069		20,177		63,322		63,203
Other	6,876		6,848		24,020		20,520
Total	$	148,441	$	136,412	$	445,925	$	431,167

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. The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands):

	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Bad debt expense (recovery), net	$	(83)	$	55	$	(345)	$	44

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):

	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Reimbursable expenses	$	15,009	$	15,727	$	47,654	$	49,382

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 October 1, 2022 and January 1, 2022.

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):

	October 1, 2022		January 1, 2022
Contract liabilities	$	2,684	$	8,811

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):

	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Amounts included in contract liabilities at the beginning of the period	$	1,831	$	1,603	$	8,101	$	5,051
Performance obligations satisfied in previous periods	$	3,495	$	3,925	$	2,193	$	2,805