7. Revenue Recognition

CRA offers consulting services in two broad lines: (1) litigation, regulatory, and financial consulting; and (2) management consulting. Together, these two service lines comprised all of CRA's consolidated revenues during the fiscal quarter ended March 30, 2019.

Disaggregation of Revenue

The following table disaggregates CRA’s revenue by major business line and timing of transfer of its consulting services (in thousands):


	Fiscal Quarter Ended
	March 30,		March 31,
Type of Contract	2019		2018
Consulting services revenues:
Fixed Price	$	21,386	$	20,714
Time-and-materials		84,463		78,762
Total	$	105,849	$	99,476


	Fiscal Quarter Ended
	March 30,		March 31,
Geographic Breakdown	2019		2018
Consulting services revenues:
United States	$	83,529	$	76,860
United Kingdom		18,507		17,505
Other		3,813		5,111
Total	$	105,849	$	99,476

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 and are recorded as a component of the allowances for accounts receivable and unbilled services. During each of the fiscal quarters ended March 30, 2019 and March 31, 2019, $1.4 million of adjustments were recorded to these allowances.

Bad debt expense is reported as a component of selling, general and administrative expense. During the fiscal quarter ended March 30, 2019, no bad debt expense was reported. During the fiscal quarter ended March 31, 2018, $0.3 million of bad debt expense was reported.

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):

CRA collects goods and services and value added taxes from customers and records these amounts on a net basis, which is within the scope of ASC Topic 606-10-55, Principal versus Agent Considerations.

Transaction Price Allocated to Future Performance Obligations

ASC 606 requires that CRA disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of March 30, 2019. The guidance provides certain practical expedients that limit this requirement for (1) contracts with an original expected length of one year or less and (2) contracts for which revenue is recognized at the amount to which CRA has the right to invoice for consulting services performed. Given the nature of its business, CRA does not disclose the value of unsatisfied performance obligations as the practical expedients apply to its unsatisfied performance obligations as of March 30, 2019.

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. These contract assets are included in accounts receivable, net and unbilled services, net within the consolidated balance sheets. The contract assets balance was immaterial as of March 30, 2019 and December 29, 2018.

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 control of the consulting services are transferred to the customer and all revenue recognition criteria have been met.

The following table presents the opening and closing balances of CRA’s contract liability (in thousands):


	Contract Liability
			Year Ended
	Quarter Ended		December 29,
	March 30, 2019		2018
Balance at the beginning of the period	$	5,453	$	3,287
Balance at the end of the period	$	3,606	$	5,453

During the fiscal quarter ended March 30, 2019, CRA recognized the following revenue as a result of changes in the contract liability balance (in thousands):


	Quarter Ended
	March 30,
Revenue recognized in the period from:	2019
Amounts included in contract liabilities at the beginning of the period	$	3,663
Performance obligations satisfied in previous periods	$	2,412

The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled services and contract liabilities on the condensed consolidated balance sheets.

Fiscal Quarter Ended

Reimbursable expenses