Income Taxes	6 Months Ended
Jul. 01, 2017
Income Taxes
Income Taxes	15. Income Taxes CRA's effective income tax rates were 34.0% and 27.0% for the second quarters of fiscal 2017 and fiscal 2016, respectively. The effective tax rate for the second quarter of fiscal 2017 was higher than the prior year primarily due to the gain on the sale of business assets of GNU of approximately $3.8 million in the second quarter of fiscal 2016, resulting in a disproportionately lower share of taxes in that quarter as the gain was offset by net operating losses that had a full valuation allowance. This increase in rate was partially offset by the second quarter of fiscal 2017 tax benefit related to stock-based compensation of approximately $0.1 million, as well as the tax implications associated with the reversal of contingent consideration recorded as discrete items during the quarter. The effective tax rate in the second quarter of fiscal 2017 was lower than the combined Federal and state statutory tax rate primarily due to a favorable geographical mix of earnings as well as the tax benefit related to stock-based compensation and the tax implications associated with the reversal of contingent consideration recorded as discrete items during the quarter. 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 above. CRA's effective income tax rates were 36.0% and 33.1% for the first half of fiscal 2017 and fiscal 2016, respectively. The effective tax rate for the first half of 2017 was higher than the prior year primarily due to the gain on the sale of business assets of GNU of approximately $3.8 million in the second quarter of fiscal 2016, resulting in a disproportionately lower share of taxes in that quarter as the gain was offset by net operating losses that had a full valuation allowance. Additionally, the effective tax rate for the first half of 2017 was higher than the prior year due to an unfavorable discrete item recorded in the first quarter. This increase in rate was partially offset by the year-to-date fiscal 2017 tax benefit related to stock-based compensation of approximately $0.3 million, as well as the tax implications associated with the reversal of contingent consideration recorded as discrete items during the first and second quarters. The effective tax rate in the first half of fiscal 2017 was lower than the combined Federal and state statutory tax rate primarily due to a favorable geographical mix of earnings, as well as the tax benefit related to stock-based compensation and the tax implications associated with the reversal of contingent consideration, offset partially by an unfavorable item, all recorded discretely during the first and second fiscal quarters of 2017. 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 above. CRA has not provided for deferred income taxes or foreign withholding taxes on undistributed earnings from its foreign subsidiaries as of July 1, 2017 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 from operations and availability from its U.S. revolving credit facility to fund its U.S. operational and strategic needs.

15. Income Taxes

CRA's effective income tax rates were 34.0% and 27.0% for the second quarters of fiscal 2017 and fiscal 2016, respectively. The effective tax rate for the second quarter of fiscal 2017 was higher than the prior year primarily due to the gain on the sale of business assets of GNU of approximately $3.8 million in the second quarter of fiscal 2016, resulting in a disproportionately lower share of taxes in that quarter as the gain was offset by net operating losses that had a full valuation allowance. This increase in rate was partially offset by the second quarter of fiscal 2017 tax benefit related to stock-based compensation of approximately $0.1 million, as well as the tax implications associated with the reversal of contingent consideration recorded as discrete items during the quarter. The effective tax rate in the second quarter of fiscal 2017 was lower than the combined Federal and state statutory tax rate primarily due to a favorable geographical mix of earnings as well as the tax benefit related to stock-based compensation and the tax implications associated with the reversal of contingent consideration recorded as discrete items during the quarter. 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 above.

CRA's effective income tax rates were 36.0% and 33.1% for the first half of fiscal 2017 and fiscal 2016, respectively. The effective tax rate for the first half of 2017 was higher than the prior year primarily due to the gain on the sale of business assets of GNU of approximately $3.8 million in the second quarter of fiscal 2016, resulting in a disproportionately lower share of taxes in that quarter as the gain was offset by net operating losses that had a full valuation allowance. Additionally, the effective tax rate for the first half of 2017 was higher than the prior year due to an unfavorable discrete item recorded in the first quarter. This increase in rate was partially offset by the year-to-date fiscal 2017 tax benefit related to stock-based compensation of approximately $0.3 million, as well as the tax implications associated with the reversal of contingent consideration recorded as discrete items during the first and second quarters. The effective tax rate in the first half of fiscal 2017 was lower than the combined Federal and state statutory tax rate primarily due to a favorable geographical mix of earnings, as well as the tax benefit related to stock-based compensation and the tax implications associated with the reversal of contingent consideration, offset partially by an unfavorable item, all recorded discretely during the first and second fiscal quarters of 2017. 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 above.

CRA has not provided for deferred income taxes or foreign withholding taxes on undistributed earnings from its foreign subsidiaries as of July 1, 2017 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 from operations and availability from its U.S. revolving credit facility to fund its U.S. operational and strategic needs.