Forgivable Loans

12 Months Ended

Jan. 02, 2021

In order to attract and retain highly skilled professionals, CRA may issue forgivable loans to employees and non-employee experts, certain of which loans may be denominated in local currencies. A portion of these loans is collateralized. The forgivable loans have terms that are generally between one and eight years with interest rates currently ranging up to 2.83%. The principal amount of forgivable loans and accrued interest is forgiven by CRA over the term of the loans, so long as the employee or non-employee expert continues employment or affiliation with CRA and complies with certain contractual requirements. During fiscal years 2020, 2019 and 2018 there were no balances due under these loans for which the full principal and interest were not forgiven in the normal course or not collected upon termination of employment or affiliation with CRA. The expense associated with the forgiveness of the principal amount of the loans is recorded as compensation expense over the service period, which is consistent with the term of the loans.

Forgivable loan activity for fiscal years 2020 and 2019 is as follows (in thousands):


	Fiscal Year		Fiscal Year
	2020		2019
Beginning balance	$	55,141	$	40,294
Advances	42,418		35,166
Repayments	—		(1,173)
Reclassification from accrued expenses / to other assets (1)	(9,713)		(1,734)
Amortization	(26,628)		(17,700)
Effects of foreign currency translation	395		288
Ending balance	$	61,613	$	55,141
Current portion of forgivable loans	$	14,749	$	6,751
Non-current portion of forgivable loans	$	46,864	$	48,390

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(1)Relates to the reclassification of performance awards previously recorded as accrued expenses or forgivable loans that have been reclassified to other receivables.