XML 32 R17.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes | 12 Months Ended
--- | ---
Jan. 01, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income before provision for income taxes are as follows (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| January 1, 2022 (52 weeks) |  | January 2, 2021 (53 weeks) |  | December 28, 2019 (52 weeks)
Income before provision for income taxes: |  |  |  |  |
U.S. | $ | 43,511 |  |  | $ | 26,054 |  |  | $ | 20,778 |
Foreign | 10,764 |  |  | 7,568 |  |  | 6,019 |
Total | $ | 54,275 |  |  | $ | 33,622 |  |  | $ | 26,797 |
The provision (benefit) for income taxes consists of the following (in thousands):
| Year Ended |  | Year Ended |  | Year Ended
| January 1, 2022 (52 weeks) |  | January 2, 2021 (53 weeks) |  | December 28, 2019 (52 weeks)
Currently payable: |  |  |  |  |
Federal | $ | 7,072 |  |  | $ | 4,039 |  |  | $ | 4,252 |
Foreign | 2,517 |  |  | 1,335 |  |  | 1,119 |
State | 2,561 |  |  | 2,627 |  |  | 1,838 |
Total current expense | 12,150 |  |  | 8,001 |  |  | 7,209 |
Deferred: |  |  |  |  |
Federal | (92) |  |  | 1,170 |  |  | (869) |
Foreign | 230 |  |  | 309 |  |  | 331 |
State | 308 |  |  | (365) |  |  | (621) |
Total deferred expense (benefit) | 446 |  |  | 1,114 |  |  | (1,159) |
Total tax expense | $ | 12,596 |  |  | $ | 9,115 |  |  | $ | 6,050 |
A reconciliation of CRA's tax rates with the federal statutory rate is as follows:
| Fiscal Year |  | Fiscal Year |  | Fiscal Year
| 2021 |  | 2020 |  | 2019
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal income tax benefit | 5.3 |  |  | 5.8 |  |  | 5.5 |
Tax law changes | 0.4 |  |  | 0.2 |  |  | — |
Share-based compensation | (5.0) |  |  | (1.8) |  |  | (5.0) |
Meals & Entertainment Expense | 0.1 |  |  | 0.2 |  |  | 1.7 |
Executive Compensation | 1.3 |  |  | 1.6 |  |  | 1.6 |
Uncertain tax positions | (0.3) |  |  | (0.1) |  |  | (2.5) |
Other | 0.4 |  |  | 0.2 |  |  | 0.3 |
Annual effective tax rate | 23.2 | % |  | 27.1 | % |  | 22.6 | %
The components of CRA's deferred tax assets (liabilities) are as follows (in thousands):
| January 1, 2022 |  | January 2, 2021
Deferred tax assets: |  |  |
Accrued compensation and related expense | $ | 15,047 |  |  | $ | 15,453 |
Allowance for doubtful accounts | 1,375 |  |  | 1,535 |
Net operating loss carryforwards | 281 |  |  | 194 |
Lease liabilities | 34,523 |  |  | 38,146 |
Foreign exchange and other | 76 |  |  | 79 |
Total gross deferred tax assets | 51,302 |  |  | 55,407 |
Less: valuation allowance | (308) |  |  | — |
Total deferred tax assets, net of valuation allowance | 50,994 |  |  | 55,407 |
Deferred tax liabilities: |  |  |
Goodwill and other intangible asset amortization | 4,262 |  |  | 3,523 |
Right-of-Use assets | 27,710 |  |  | 30,761 |
Property and equipment | 9,788 |  |  | 11,595 |
Prepaids and other | 944 |  |  | 586 |
Total deferred tax liabilities | 42,704 |  |  | 46,465 |
Net deferred tax assets | $ | 8,290 |  |  | $ | 8,942 |
At January 1, 2022, CRA had U.S. local and foreign net operating losses of $1.5 million with lives ranging from 20 years to indefinite. The aggregate changes in the balances of gross unrecognized tax benefits were as follows (in thousands):
| Fiscal Year |  | Fiscal Year
| 2021 |  | 2020
Balance at beginning of period | $ | 203 |  |  | $ | 242 |
Additions for tax positions taken during prior years | — |  |  | 43 |
Reductions as a result of a lapse of the applicable statutes of limitations | (162) |  |  | (82) |
Balance at end of the period | $ | 41 |  |  | $ | 203 |
CRA files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. A number of years may elapse before an uncertain tax position, for which CRA has unrecognized tax benefits, is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, CRA believes that its unrecognized tax benefits reflect the most likely outcome. CRA adjusts these unrecognized tax benefits, and the associated interest, in light of changing facts and circumstances. At the end of fiscal 2021, accrued interest for uncertain tax positions and total unrecognized tax benefit were immaterial. The number of years with open tax audits varies depending on the tax jurisdiction. CRA's major taxing jurisdiction is the United States where CRA is no longer subject to U.S. federal examinations by the Internal Revenue Service for years before fiscal 2018. Within the significant states where CRA is subject to income tax, CRA is no longer subject to examinations by state taxing authorities before fiscal 2017. CRA's United Kingdom ("U.K.") subsidiary's corporate tax returns are no longer subject to examination by Her Majesty's Revenue and Customs for years before fiscal 2020. During fiscal 2019, an examination by the German Tax Authority for fiscal years 2014-2016 commenced. CRA believes its reserves for uncertain tax positions are adequate. During the fourth quarter of fiscal 2020, CRA considered the operating needs of the U.K. subsidiary, as well as the tax implications of no longer asserting indefinite reinvestment with respect to the U.K. operations. As a result of both a qualitative and quantitative analysis, previously taxed and untaxed post fiscal 2018 U.K. earnings were no longer considered permanently reinvested. Deferred taxes that are a consequence of foreign exchange translation resulting from earnings that are no longer considered permanently reinvested are recorded as a component of foreign currency translation adjustments on the consolidated statements of comprehensive income. In fiscal 2021, CRA's U.S. parent entity received approximately $16.3 million in cash dividends from CRA's U.K. subsidiary. These dividends were distributed out of both previously taxed and untaxed earnings. The foreign exchange translation was previously accounted for through deferred taxes during fiscal 2020. Incremental foreign exchange translation on the actual distribution was immaterial. Deferred income taxes or foreign withholding taxes, estimated to be $0.3 million, have not been recorded for other jurisdictions as those earnings are considered to be permanently reinvested. Effects of the CARES Act On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was signed into law, which included a retroactive, technical correction that allows 100% bonus depreciation for qualified improvement property (“QIP”). This technical correction became effective as of the enactment of the Tax Cuts and Jobs Act of 2017 (“TCJA”) and effected a $2.2 million tax receivable stemming from 2018 and 2019 leasehold improvements that previously had a thirty-nine year life. Additionally, the CARES Act allows for employers to defer the payment of the employer share of the Social Security taxes to be paid in two installments: the first by December 31, 2021, and the remainder by December 31, 2022. Accordingly, CRA had deferred $1.3 million and $2.7 million of tax at the end of fiscal 2021 and 2020, respectively, which created book-to-tax temporary differences until paid.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration