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Business Acquisitions | 12 Months Ended
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Dec. 30, 2017
Business Acquisitions |
Business Acquisitions | 3. Business Acquisitions On January 31, 2017, CRA acquired substantially all of the assets and assumed certain liabilities of C1 Consulting LLC, an independent consulting firm, and its wholly-owned subsidiary C1 Associates (collectively, "C1") for initial consideration comprised of cash and CRA restricted common stock. The asset purchase agreement provided for additional purchase consideration to be paid for up to four years following the transaction in the form of an earnout, if specific performance targets are met. These earnout payments are payable in cash and CRA restricted common stock. The fair value of this obligation was measured as of the acquisition date and accounted for as a component of the purchase consideration, any adjustments to this initial valuation in future accounting periods will be reported as an adjustment to net income. C1 provides management consulting services in the life sciences industry, and has built a reputation for its specialty consulting services. Acquiring C1 will assist CRA in expanding its geographical presence in the western part of the United States and Europe, servicing CRA's existing life sciences customers more efficiently, and providing opportunities to engage with new clients in both the United States and European markets. The acquisition has been accounted for under the purchase method of accounting, and C1's results of operations have been included in the accompanying consolidated statement of operations from the date of acquisition. The following is the final allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed. The following table shows CRA's acquired assets and liabilities assumed from the purchase of C1 Consulting (in thousands):
Assets Acquired: |  |  |  |
Accounts receivable and unbilled receivables |  | $ | 2,306 |
Other current assets |  |  | 10 |
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Total current assets |  |  | 2,316 |
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Property and equipment |  |  | 206 |
Other non-current assets |  |  | 106 |
Intangible assets |  |  | 8,500 |
Goodwill |  |  | 12,994 |
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Total assets acquired |  | $ | 24,122 |
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Liabilities Assumed: |  |  |  |
Deferred revenue |  | $ | 1,950 |
Accrued expenses and other current liabilities |  |  | 652 |
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Total current liabilities |  |  | 2,602 |
Contingent consideration |  |  | 2,357 |
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Total liabilities assumed |  |  | 4,959 |
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Net assets acquired |  | $ | 19,163 |
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The intangible assets acquired are comprised of non-competition agreements and the value of customer relationships, the fair value of which was determined using the incremental income method and multi-period excess earnings method, respectively. The non-compete agreements are being amortized over the stated term of five years on a straight-line basis. The customer relationships intangible is being amortized over a ten year life on a straight-line basis, which approximates the expected pattern of economic benefit from this asset. The fair value of the contingent consideration was determined using a monte carlo simulation. CRA is unable to provide a range of possible outcomes for the expected future payment of the contingent consideration due to its limited post acquisition experience with C1 and the uncertainty of achieving revenue targets over the remaining measurement period of this obligation. The fair value of the contingent acquisition liability is reassessed on a quarterly basis by CRA using additional information as it becomes available, and any change in the fair value estimate will be recorded in the earnings of that period. Transaction related costs, which are principally legal and accounting service fees, amount to $0.9 million for the year ended December 30, 2017 and are included in selling, general and administrative expenses on the consolidated statement of operations.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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