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Revenue Recognition
 6 Months Ended
Jul. 03, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
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.
Disaggregation of Revenue
The following tables disaggregate CRA’s revenue by type of contract and geographic location (in thousands):
Fiscal Quarter EndedFiscal Year-to-Date
Period Ended
Type of ContractJuly 3,
2021		June 27,
2020		July 3,
2021		June 27,
2020
Consulting services revenues
Fixed-price$36,245 $30,783 $69,678 $59,771 
Time-and-materials111,992 92,248 225,077 189,418 
Total$148,237 $123,031 $294,755 $249,189 
Fiscal Quarter EndedFiscal Year-to-Date
Period Ended
Geographic BreakdownJuly 3,
2021		June 27,
2020		July 3,
2021		June 27,
2020
Consulting services revenues
United States$120,810 $99,416 $238,057 $200,156 
United Kingdom19,740 17,931 43,026 36,997 
Other7,687 5,684 13,672 12,036 
Total$148,237 $123,031 $294,755 $249,189 
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 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 condensed consolidated balance sheets. Adjustments to the reserves for variable consideration are included in revenues on the condensed 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 ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326") on the first day of fiscal 2020, which changed the method CRA utilizes to estimate reserves related to credit risk. As a result of the adoption, CRA recognized a $0.2 million cumulative-effect increase to allowances for accounts receivable and unbilled services and a reduction to the fiscal 2020 opening balance of retained earnings.
The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands):
Fiscal Quarter EndedFiscal Year-to-Date
Period Ended
July 3,
2021		June 27,
2020		July 3,
2021		June 27,
2020
Bad debt expense (recovery), net$2 $(102)$(11)$(43)
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):
Fiscal Quarter EndedFiscal Year-to-Date
Period Ended
July 3,
2021		June 27,
2020		July 3,
2021		June 27,
2020
Reimbursable expenses$17,176 $14,815 $33,655 $31,245 
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. The contract assets balance was immaterial as of July 3, 2021 and January 2, 2021.
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):
July 3,
2021		January 2,
2021
Contract liabilities$1,893 $5,527 
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):
Fiscal Quarter EndedFiscal Year-to-Date
Period Ended
July 3,
2021		June 27,
2020		July 3,
2021		June 27,
2020
Amounts included in contract liabilities at the beginning of the period$2,220 $2,940 $5,057 $3,250 
Performance obligations satisfied in previous periods$4,471 $3,554 $2,684 $4,075