v3.25.1
Revenues and Allowances
 3 Months Ended
Mar. 29, 2025
Revenue from Contract with Customer [Abstract]  
Revenues and Allowances Revenues and Allowances
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):
Fiscal Quarter Ended
Type of ContractMarch 29,
2025		March 30,
2024
Consulting services revenues:
Fixed-price$30,329 $30,082 
Time-and-materials151,522 141,707 
Total$181,851 $171,789 
Revenues have been attributed to locations based on the location of the legal entity generating the revenues.
Fiscal Quarter Ended
Geographic BreakdownMarch 29,
2025		March 30,
2024
Consulting services revenues:
United States$149,714 $142,204 
United Kingdom23,124 21,154 
Other9,013 8,431 
Total$181,851 $171,789 
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. Under ASC 326, CRA estimates allowances based on historical charge-off rates, adjusted for days sales outstanding and expected changes to clients’ financial conditions during the anticipated collection period. Bad debt expense, net of recoveries of previously written off allowances, is recorded as a component of selling, general and administrative expenses on the condensed consolidated statements of operations.
The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands):
Fiscal Quarter Ended
March 29,
2025		March 30,
2024
Bad debt expense (recovery), net$433 $663 
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
March 29,
2025		March 30,
2024
Reimbursable expenses$16,506 $17,061 
Contract Balances from Contracts with Customers
The timing of revenue recognition, billings, and cash collections results in accounts receivables, unbilled services, and contract liabilities on the condensed consolidated balance sheets. Revenues recognized for services performed, but not yet billed to clients, are recorded as unbilled services. The following table presents the open and closing balances of CRA's accounts receivable, net and unbilled services, net (in thousands):
March 29,
2025		December 28,
2024		December 30,
2023
Accounts receivable, net$140,326 $162,293 $142,729 
Unbilled services, net$82,925 $57,255 $56,827 
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 March 29, 2025, December 28, 2024, and December 30, 2023.
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. Contract liabilities are included in deferred revenue and other liabilities in the condensed consolidated balance sheets. The following table presents the closing balances of CRA's contract liabilities (in thousands):
March 29,
2025		December 28,
2024		December 30,
2023
Contract liabilities$4,228 $7,340 $6,037 
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
March 29,
2025		March 30,
2024
Amounts included in contract liabilities at the beginning of the period$6,290 $4,703 
Performance obligations satisfied in previous periods$2,325 $2,847