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Revenue Recognition
 9 Months Ended
Sep. 26, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue RecognitionThe 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 EndedFiscal Year-to-Date
Period Ended
Type of ContractSeptember 26,
2020		September 28,
2019		September 26,
2020		September 28,
2019
Consulting services revenues:
Fixed Price$26,197 $30,057 $85,968 $76,622 
Time-and-materials95,565 85,629 284,983 255,486 
Total$121,762 $115,686 $370,951 $332,108 
​Fiscal Quarter EndedFiscal Year-to-Date
Period Ended
Geographic BreakdownSeptember 26,
2020		September 28,
2019		September 26,
2020		September 28,
2019
Consulting services revenues:
United States$96,117 $92,217 $296,273 $263,221 
United Kingdom20,358 17,116 57,355 53,027 
Other5,287 6,353 17,323 15,860 
Total$121,762 $115,686 $370,951 $332,108 
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 actual 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.
CRA’s accounts receivable and unbilled services consist of receivables from a broad range of clients in a variety of industries located throughout the U.S. and other countries. CRA performs a credit evaluation of its clients to minimize its collectability risk. Periodically, CRA will require advance payment from certain clients. However, CRA does not require collateral or other security.
CRA adopted ASC 326 on December 29, 2019, which changed the method CRA utilizes to estimate reserves related to credit risk. As a result of the adoption, CRA recognized a cumulative-effect adjustment of $0.2 million to retained earnings and allowances for accounts receivable and unbilled services. Comparative periods and their respective disclosures prior to the adoption of ASC 326 have not been adjusted.
Under ASC 326, CRA maintains allowances for accounts receivable and unbilled services for estimated losses resulting from clients’ failure to make required payments. CRA estimates these allowances based on historical charge-off rates, adjusted for days of sales outstanding and expected changes to clients’ financial conditions during the anticipated collection period. CRA writes off allowances when management determines the balance is uncollectible and all efforts of collection have been exhausted. Bad debt expense, net of recoveries of previously written off allowances, is reported as a component of selling, general and administrative expenses on the condensed consolidated statements of operations.
Prior to adopting ASC 326 in fiscal 2020, CRA determined allowances for accounts receivable and unbilled services for specific customer accounts based on the financial condition of the customer and related facts and circumstances. Expenses associated with these allowances were reported as a component of selling, general and administrative expenses on the condensed consolidated statements of operations.
Adjustments to the allowances for accounts receivable and unbilled services related to reserves for credit risk are as follows (in thousands):
​Fiscal Year-to-Date
Period Ended		Fiscal Year Ended
​September 26, 2020December 28, 2019
Beginning balance$370 $639 
Cumulative effect of a change in accounting principle related to ASC 326203 — 
Provision for credit loss expense, net of recoveries228 173 
Amounts written off(128)(442)
Ending balance$673 $370 
The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands):
​Fiscal Quarter EndedFiscal Year-to-Date
Period Ended
September 26,
2020		September 28,
2019		September 26,
2020		September 28,
2019
Bad debt expense (recovery), net$271 $142 $228 $173 
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 EndedFiscal Year-to-Date
Period Ended
September 26,
2020		September 28,
2019		September 26,
2020		September 28,
2019
Reimbursable expenses$13,150 $13,978 $44,395 $38,991 
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 September 26, 2020 and December 28, 2019.
The timing of revenue recognition, billings, and cash collections results in billed receivables, unbilled services and contract liabilities on the condensed consolidated balance sheet. CRA defines contract liabilities as advance payments from or billings to its clients for services that have not yet been performed or earned and retainers. These liabilities are recorded within deferred revenues and are recognized as services are provided. 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 on the condensed consolidated balance sheet.
The following table presents the closing balances of CRA’s contract liabilities (in thousands):
​September 26, 2020December 28, 2019
Balance at the end of the period$2,201 $4,007 
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 EndedFiscal Year-to-Date
Period Ended
September 26,
2020		September 28,
2019		September 26,
2020		September 28,
2019
Revenue recognized for amounts included in contract liabilities at the beginning of the period$1,766 $2,405 $3,262 $4,900 
Revenue recognized for performance obligations satisfied in previous periods$3,987 $3,395 $4,363 $3,606