The 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.


	Year Ended		Year Ended		Year Ended
Type of Contract	January 2, 2021 (53 weeks)		December 28, 2019 (52 weeks)		December 29, 2018 (52 weeks)
Consulting services revenues
Fixed-price	$	124,383	$	107,344	$	95,096
Time-and-materials	383,990		344,026		322,552
Total	$	508,373	$	451,370	$	417,648


	Year Ended		Year Ended		Year Ended
Geographic Breakdown	January 2, 2021 (53 weeks)		December 28, 2019 (52 weeks)		December 29, 2018 (52 weeks)
Consulting services revenues
United States	$	405,808	$	357,156	$	329,678
United Kingdom	79,922		72,169		65,874
Other	22,643		22,045		22,096
Total	$	508,373	$	451,370	$	417,648

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 specific 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 consolidated balance sheets. Adjustments to the reserves for variable consideration are included in revenues on the consolidated statements of operations.

CRA also maintains allowances for accounts receivable and unbilled services for estimated losses resulting from clients’ failure to make required payments. CRA adopted ASC 326 on December 29, 2019, which changed the method CRA utilizes to estimate reserves related to credit risk. Comparative periods and their respective disclosures prior to the adoption of ASC 326 have not been adjusted.

Prior to adopting ASC 326, 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. Under ASC 326, CRA estimates 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. Bad debt expense, net of recoveries of previously written off allowances, is recorded as a component of selling, general and administrative expenses on the consolidated statements of operations.

A rollforward of the variable consideration and doubtful accounts reserves for accounts receivable, which includes allowances for doubtful accounts of $0.7 million and $0.4 million as of January 2, 2021 and December 28, 2019, respectively, is as follows (in thousands):


	Fiscal Year		Fiscal Year
	2020		2019
Balance at beginning of fiscal year	$	3,838	$	3,764
Increases to reserves, net of recoveries (1)	2,092		2,926
Amounts written off and foreign currency translation	(2,335)		(2,852)
Balance at end of fiscal year	$	3,595	$	3,838

(1)Fiscal 2020 includes the cumulative effect of a change in accounting principle related to ASC 326 in the amount of $0.2 million.

A rollforward of the variable consideration and doubtful accounts reserves for unbilled services is as follows (in thousands):


	Fiscal Year		Fiscal Year
	2020		2019
Balance at beginning of fiscal year	$	1,503	$	415
Increases to reserves, net of recoveries	6,847		5,548
Amounts written off and foreign currency translation	(7,350)		(4,460)
Balance at end of fiscal year	$	1,000	$	1,503


	Year Ended		Year Ended		Year Ended
	January 2, 2021 (53 weeks)		December 28, 2019 (52 weeks)		December 29, 2018 (52 weeks)
Bad debt expense, net	$	227	$	173	$	1,237

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):


	Year Ended		Year Ended		Year Ended
	January 2, 2021 (53 weeks)		December 28, 2019 (52 weeks)		December 29, 2018 (52 weeks)
Reimbursable expenses	$	61,661	$	54,871	$	48,817

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 January 2, 2021 and December 28, 2019.

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. The following table presents the closing balances of CRA's contract liabilities (in thousands):

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):


	Year Ended		Year Ended		Year Ended
	January 2, 2021 (53 weeks)		December 28, 2019 (52 weeks)		December 29, 2018 (52 weeks)
Amounts included in contract liabilities at the beginning of the year	$	3,533	$	5,155	$	3,149
Performance obligations satisfied in previous years	$	4,503	$	3,603	$	3,346