Income Taxes	6 Months Ended
Jul. 02, 2016
Income Taxes
Income Taxes	13. Income Taxes CRA's effective income tax rates were 27.0% and 40.6% for the second quarters of fiscal 2016 and fiscal 2015, respectively. The effective tax rate for the second quarter of fiscal 2016 was lower than the prior year primarily due to a favorable geographical mix of earnings compared to the prior year, as well as the gain on sale of business assets of GNU of approximately $3.8 million, resulting in a disproportionately lower share of taxes as the gain was offset by net operating losses that had a full valuation allowance. The lower effective tax rate in the second quarter of fiscal 2016 was offset by the non-recurring valuation allowance benefit realized in the prior year. The effective tax rate in the second quarter of fiscal 2016 was lower than the combined Federal and state statutory tax rate due to a favorable geographical mix of earnings, as well as the sale of business assets described herein. The effective tax rate in the second quarter of fiscal 2015 was in line with the combined Federal and state statutory tax rate and included favorable rate drivers resulting from the geographical mix of earnings and the use of valuation allowances, offset by the tax treatment of contingent consideration and other permanent tax differences. Additionally, there was a discrete benefit in the quarter related to prior period true-ups primarily as a result of a statutory rate decrease for withholding taxes. CRA's effective income tax rates were 33.1% and 39.1% for the first half of fiscal 2016 and the first half of fiscal 2015, respectively. The effective tax rate for the first half of 2016 was lower than the prior year primarily due to a favorable geographical mix of earnings compared to the prior year as well as the gain on sale of business assets of GNU of approximately $3.8 million, resulting in a disproportionately lower share of taxes as the gain was offset by net operating losses that had a full valuation allowance. The lower effective tax rate in the first half of fiscal 2016 was offset by the non-recurring valuation allowance benefit realized in the prior year. The effective tax rate in the first half of fiscal 2016 was lower than the combined Federal and state statutory tax rate primarily due to a favorable geographical mix of earnings, as well as the sale of business assets described herein. The effective tax rate in the first half of fiscal 2015 was slightly lower than the combined Federal and state statutory tax rate and included favorable rates drivers resulting from the geographical mix of earnings and the use of valuation allowances, offset by the tax treatment of contingent consideration and other permanent tax differences. The valuation allowance benefit resulted from the utilization of certain historical foreign net operating losses that previously had valuation allowances. Additionally, there was a discrete benefit year-to-date related to prior period true-ups primarily as a result of a decrease in a statutory withholding tax rate, as well as the release of reserves in connection with the finalization of the tax examination in France for fiscal years 2011 and 2012, offset by a discrete provision in the first quarter of fiscal 2015 in connection with income taxes payable for a state examination that has now concluded. CRA has not provided for deferred income taxes or foreign withholding taxes on undistributed earnings from its foreign subsidiaries as of July 2, 2016 because such earnings are considered to be indefinitely reinvested. CRA does not rely on these unremitted earnings as a source of funds for its domestic business as it expects to have sufficient cash flow and availability from its U.S. revolving credit facility to fund its U.S. operational and strategic needs. If CRA were to repatriate its foreign earnings that are indefinitely reinvested, it would incur minimal additional tax expense. As of January 2, 2016, CRA had an approximate $1,265,000 balance of unrecognized tax benefits, of which, approximately $195 thousand was expected to reverse within twelve months. Of that balance, an additional $109 thousand is also expected to reverse in the foreseeable future.

13. Income Taxes

CRA's effective income tax rates were 27.0% and 40.6% for the second quarters of fiscal 2016 and fiscal 2015, respectively. The effective tax rate for the second quarter of fiscal 2016 was lower than the prior year primarily due to a favorable geographical mix of earnings compared to the prior year, as well as the gain on sale of business assets of GNU of approximately $3.8 million, resulting in a disproportionately lower share of taxes as the gain was offset by net operating losses that had a full valuation allowance. The lower effective tax rate in the second quarter of fiscal 2016 was offset by the non-recurring valuation allowance benefit realized in the prior year. The effective tax rate in the second quarter of fiscal 2016 was lower than the combined Federal and state statutory tax rate due to a favorable geographical mix of earnings, as well as the sale of business assets described herein.

The effective tax rate in the second quarter of fiscal 2015 was in line with the combined Federal and state statutory tax rate and included favorable rate drivers resulting from the geographical mix of earnings and the use of valuation allowances, offset by the tax treatment of contingent consideration and other permanent tax differences. Additionally, there was a discrete benefit in the quarter related to prior period true-ups primarily as a result of a statutory rate decrease for withholding taxes.

CRA's effective income tax rates were 33.1% and 39.1% for the first half of fiscal 2016 and the first half of fiscal 2015, respectively. The effective tax rate for the first half of 2016 was lower than the prior year primarily due to a favorable geographical mix of earnings compared to the prior year as well as the gain on sale of business assets of GNU of approximately $3.8 million, resulting in a disproportionately lower share of taxes as the gain was offset by net operating losses that had a full valuation allowance. The lower effective tax rate in the first half of fiscal 2016 was offset by the non-recurring valuation allowance benefit realized in the prior year. The effective tax rate in the first half of fiscal 2016 was lower than the combined Federal and state statutory tax rate primarily due to a favorable geographical mix of earnings, as well as the sale of business assets described herein. The effective tax rate in the first half of fiscal 2015 was slightly lower than the combined Federal and state statutory tax rate and included favorable rates drivers resulting from the geographical mix of earnings and the use of valuation allowances, offset by the tax treatment of contingent consideration and other permanent tax differences. The valuation allowance benefit resulted from the utilization of certain historical foreign net operating losses that previously had valuation allowances. Additionally, there was a discrete benefit year-to-date related to prior period true-ups primarily as a result of a decrease in a statutory withholding tax rate, as well as the release of reserves in connection with the finalization of the tax examination in France for fiscal years 2011 and 2012, offset by a discrete provision in the first quarter of fiscal 2015 in connection with income taxes payable for a state examination that has now concluded.

CRA has not provided for deferred income taxes or foreign withholding taxes on undistributed earnings from its foreign subsidiaries as of July 2, 2016 because such earnings are considered to be indefinitely reinvested. CRA does not rely on these unremitted earnings as a source of funds for its domestic business as it expects to have sufficient cash flow and availability from its U.S. revolving credit facility to fund its U.S. operational and strategic needs. If CRA were to repatriate its foreign earnings that are indefinitely reinvested, it would incur minimal additional tax expense.

As of January 2, 2016, CRA had an approximate $1,265,000 balance of unrecognized tax benefits, of which, approximately $195 thousand was expected to reverse within twelve months. Of that balance, an additional $109 thousand is also expected to reverse in the foreseeable future.