CRA International, Inc.
(Exact name of registrant as specified in its charter)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements	31
	Condensed Consolidated Income Statements (unaudited)—Fiscal Quarters ~~Ended~~ and ~~the~~ Fiscal Year-to-Date Periods Ended September ~~29, 2018~~28, 2019 and September ~~30, 2017~~29, 2018	31
	Condensed Consolidated Statements of Comprehensive Income (unaudited)—Fiscal Quarters ~~Ended~~ and ~~the~~ Fiscal Year-to-Date Periods Ended September ~~29, 2018~~28, 2019 and September ~~30, 2017~~29, 2018	42
	Condensed Consolidated Balance Sheets (unaudited)—September ~~29, 2018~~28, 2019 and December ~~30, 2017~~29, 2018	53
	Condensed Consolidated Statements of Cash Flows (unaudited)—Fiscal Year-to-Date Periods Ended September ~~29, 2018~~28, 2019 and September ~~30, 2017~~29, 2018	64
	Condensed Consolidated ~~Statement~~Statements of Shareholders' Equity (unaudited)—Fiscal Year-to-Date ~~Period~~Periods Ended September 28, 2019 and September 29, 2018	75
	Notes to Condensed Consolidated Financial Statements ~~(Unaudited)~~(unaudited)	87
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	2823
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	3831
ITEM 4.	Controls and Procedures	3832
PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	4033
ITEM 1A.	Risk Factors	4033
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4033
ITEM 3.	Defaults Upon Senior Securities	4134
ITEM 4.	Mine Safety Disclosures	4134
ITEM 5.	Other Information	4134
ITEM 6.	Exhibits	4235
Signatures		4336

CRA ~~International, Inc.~~

~~Condensed Consolidated Income Statements~~INTERNATIONAL, INC.

	September 28, 2019			December 29, 2018

ASSETS
Current assets:
Cash and cash equivalents	$	19,833		$	38,028
Accounts receivable, net of allowances of $3,590 at September 28, 2019 and $3,764 at December 29, 2018		90,478			94,525
Unbilled services, net of allowances of $1,474 at September 28, 2019 and $415 at December 29, 2018		50,274			36,060
Prepaid expenses and other current assets		11,017			6,423
Forgivable loans		8,821			6,104

Total current assets		180,423			181,140
Property and equipment, net		57,788			48,088
Goodwill		87,813			88,208
Intangible assets, net		6,818			7,846
Right-of-use assets		110,999			—
Deferred income taxes		9,193			9,330
Forgivable loans, net of current portion		49,046			34,190
Other assets		3,444			2,044

Total assets	$	505,524		$	370,846



LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	23,636		$	21,938
Accrued expenses		94,557			108,233
Deferred revenue and other liabilities		4,149			6,866
Current portion of lease liabilities		10,598			—
Current portion of deferred rent		—			1,810
Current portion of deferred compensation		3,214			3,650
Revolving line of credit		36,000			—

Total current liabilities		172,154			142,497
Non-current liabilities:
Deferred compensation and other non-current liabilities		12,046			7,957
Deferred rent and facility-related non-current liabilities		1,810			23,618
Non-current portion of lease liabilities		126,869			—
Deferred income taxes		293			302

Total non-current liabilities		141,018			31,877
Commitments and contingencies (Note 11)
Shareholders' equity:
Preferred stock, no par value; 1,000,000 shares authorized; none issued and outstanding		—			—
Common stock, no par value; 25,000,000 shares authorized; 7,707,886 and 8,010,480 shares issued and outstanding at September 28, 2019 and December 29, 2018, respectively		9,028			22,837
Retained earnings		197,347			186,229
Accumulated other comprehensive loss		(14,023	)		(12,594	)

Total shareholders' equity		192,352			196,472

Total liabilities and shareholders' equity	$	505,524		$	370,846

	Fiscal Year-to-Date Period Ended

	September 28, 2019			September 29, 2018
OPERATING ACTIVITIES:
Net income	$	15,984		$	15,633
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		7,696			7,305
Loss on disposal of property and equipment		5			—
Deferred rent and facility related liabilities		83			3,650
Right-of-use asset amortization		7,832			—
Deferred income taxes		117			(102	)
Share-based compensation expenses		2,641			3,704
Accounts receivable allowances		(160	)		233
Changes in operating assets and liabilities:
Accounts receivable		3,626			(8,939	)
Unbilled services, net		(14,582	)		(9,976	)
Prepaid expenses and other current assets, and other assets		(5,735	)		1,417
Forgivable loans		(18,942	)		(14,716	)
Incentive cash awards		3,628			2,367
Accounts payable, accrued expenses, and other liabilities		(16,274	)		(8,970	)
Lease liabilities		(5,826	)		—

Net cash used in operating activities		(19,907	)		(8,394	)
INVESTING ACTIVITIES:
Purchases of property and equipment		(12,548	)		(13,379	)

Net cash used in investing activities		(12,548	)		(13,379	)
FINANCING ACTIVITIES:
Issuance of common stock, principally stock options exercises		2,006			1,387
Borrowings under revolving line of credit		54,000			30,161
Repayments under revolving line of credit		(18,000	)		(24,599	)
Tax withholding payments reimbursed by shares		(388	)		(1,783	)
Cash paid on dividend equivalents		(35	)		(98	)
Cash dividends paid to shareholders		(4,742	)		(4,168	)
Repurchases of common stock		(18,068	)		(20,389	)
Distribution to noncontrolling interest		—			(41	)

Net cash provided by (used in) financing activities		14,773			(19,530	)
Effect of foreign exchange rates on cash and cash equivalents		(513	)		(869	)

Net decrease in cash and cash equivalents		(18,195	)		(42,172	)
Cash and cash equivalents at beginning of period		38,028			54,035

Cash and cash equivalents at end of period	$	19,833		$	11,863



Noncash investing and financing activities:
Purchases of property and equipment not yet paid for	$	3,461		$	1,852



Purchases of property and equipment paid by a third party	$	126		$	—



Asset retirement obligations	$	427		$	217



Right-of-use assets obtained in exchange for lease obligations	$	37,298		$	—



Right-of-use assets related to the adoption of ASC 842	$	82,329		$	—



Lease liabilities related to the adoption of ASC 842	$	106,765		$	—



Supplemental cash flow information:
Cash paid for taxes	$	6,078		$	3,409



Cash paid for interest	$	848		$	380

	Common Stock

	Common Stock									Accumulated Other Comprehensive Loss
	Shares Issued			Amount			Retained Earnings			Accumulated Other Comprehensive Loss			Total Shareholders' Equity
BALANCE AT DECEMBER 29, 2018		8,010,480		$	22,837		$	186,229		$	(12,594	)	$	196,472
Net income		—			—			4,665			—			4,665
Foreign currency translation adjustment		—			—			—			712			712
Exercise of stock options		64,700			1,526			—			—			1,526
Share-based compensation expense		—			911			—			—			911
Restricted shares vestings		25,484			—			—			—			—
Redemption of vested employee restricted shares for tax withholding		(8,157	)		(388	)		—			—			(388	)
Shares repurchased		(86,609	)		(4,349	)		—			—			(4,349	)
Accrued dividends on unvested shares		—			—			(8	)		—			(8	)
Cash paid on dividend equivalents		—			—			(35	)		—			(35	)
Cash dividends paid to shareholders ($0.20 per share)		—			—			(1,616	)		—			(1,616	)

BALANCE AT MARCH 30, 2019		8,005,898		$	20,537		$	189,235		$	(11,882	)	$	197,890

Net income		—			—			5,580			—			5,580
Foreign currency translation adjustment		—			—			—			(653	)		(653	)
Share-based compensation expense		—			848			—			—			848
Restricted shares vestings		513			—			—			—			—
Shares repurchased		(177,101	)		(7,161	)		—			—			(7,161	)
Accrued dividends on unvested shares		—			—			(44	)		—			(44	)
Cash dividends paid to shareholders ($0.20 per share)		—			—			(1,580	)		—			(1,580	)

BALANCE AT JUNE 29, 2019		7,829,310		$	14,224		$	193,191		$	(12,535	)	$	194,880

Net income		—			—			5,739			—			5,739
Foreign currency translation adjustment		—			—			—			(1,488	)		(1,488	)
Exercise of stock options		21,224			480			—			—			480
Share-based compensation expense		—			882			—			—			882
Restricted shares vestings		14,754			—			—			—			—
Shares repurchased		(157,402	)		(6,558	)		—			—			(6,558	)
Accrued dividends on unvested shares		—			—			(37	)		—			(37	)
Cash dividends paid to shareholders ($0.20 per share)		—			—			(1,546	)		—			(1,546	)

BALANCE AT SEPTEMBER 28, 2019		7,707,886		$	9,028		$	197,347		$	(14,023	)	$	192,352

CRA ~~International, Inc.~~INTERNATIONAL, INC.

~~Condensed Consolidated Statements of Comprehensive Income~~CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

FOR THE FISCAL YEAR-TO-DATE PERIOD ENDED SEPTEMBER 29, 2018 (unaudited)

(In ~~thousands)~~thousands, except share data)

	Quarter Ended						Fiscal Year-to-Date Period Ended						Common Stock

	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017			Common Stock									Accumulated Other Comprehensive Loss			CRA International, Inc. Shareholders' Equity
Net income	$	3,908		$	3,225		$	15,633		$	9,962
Other comprehensive income (loss):
Foreign currency translation adjustments		(198	)		1,274			(1,483	)		3,611

Comprehensive income		3,710			4,499			14,150			13,573
Less: comprehensive income attributable to noncontrolling interest		—			(11	)		—			(82	)

Comprehensive income attributable to CRA International, Inc.	$	3,710		$	4,488		$	14,150		$	13,491
													Shares Issued			Amount			Retained Earnings			Accumulated Other Comprehensive Loss			CRA International, Inc. Shareholders' Equity			Accumulated Other Comprehensive Loss			CRA International, Inc. Shareholders' Equity			Noncontrolling Interest	Total Shareholders' Equity
BALANCE AT DECEMBER 30, 2017														8,297,172		$	47,414		$	169,390		$	321		$	207,229		Accumulated Other Comprehensive Loss			CRA International, Inc. Shareholders' Equity



Balance at December 31, 2017, as previously reported														8,297,172		$	47,414		$	169,390		$	(9,896	)		206,908		$	321		$	207,229
Cumulative effect of a change in accounting principle related to ASC 606														—			—			366			—			366			—			366

Balance at December 31, 2017, as adjusted														8,297,172		$	47,414		$	169,756		$	(9,896	)		207,274		$	321		$	207,595



Net income														—			—			4,886			—			4,886			—			4,886
Foreign currency translation adjustment														—			—			—			1,318			1,318			—			1,318
Exercise of stock options														24,688			535			—			—			535			—			535
Share-based compensation expense														—			1,292			—			—			1,292			—			1,292
Restricted shares vestings														97,722			—			—			—			—			—			—
Redemption of vested employee restricted shares for tax withholding														(35,287	)		(1,783	)		—			—			(1,783	)		—			(1,783	)
Shares repurchased														(162,892	)		(8,057	)		—			—			(8,057	)		—			(8,057	)
Accrued dividends on unvested shares														—			—			10			—			10			—			10
Cash paid on dividend equivalents														—			—			(98	)		—			(98	)		—			(98	)
Cash dividends paid to shareholders ($0.17 per share)														—			—			(1,423	)		—			(1,423	)		—			(1,423	)

BALANCE AT MARCH 31, 2018														8,221,403		$	39,401		$	173,131		$	(8,578	)	$	203,954		$	321		$	204,275

Net income														—			—			6,839			—			6,839			—			6,839
Foreign currency translation adjustment														—			—			—			(2,603	)		(2,603	)		—			(2,603	)
Exercise of stock options														19,395			381			—			—			381			—			381
Share-based compensation expense														—			1,146			—			—			1,146			—			1,146
Restricted shares vestings														513			—			—			—			—			—			—
Shares repurchased														(215,585	)		(12,064	)		—			—			(12,064	)		—			(12,064	)
Accrued dividends on unvested shares														—			—			(44	)		—			(44	)		—			(44	)
Cash dividends paid to shareholders ($0.17 per share)														—			—			(1,372	)		—			(1,372	)		—			(1,372	)

BALANCE AT JUNE 30, 2018														8,025,726		$	28,864		$	178,554		$	(11,181	)	$	196,237		$	321		$	196,558

Net income														—			—			3,908			—			3,908			—			3,908
Foreign currency translation adjustment														—			—			—			(198	)		(198	)		—			(198	)
Exercise of stock options														21,374			471			—			—			471			—			471
Share-based compensation expense														—			1,266			—			—			1,266			—			1,266
Restricted shares vestings														17,410			—			—			—			—			—			—
Shares repurchased														—			—			—			—			—			—			—
Distribution to noncontrolling interest														—			—			—			—			—			(41	)		(41	)
Accrued dividends on unvested shares														—			—			(48	)		—			(48	)		—			(48	)
Cash dividends paid to shareholders ($0.17 per share)														—			—			(1,373	)		—			(1,373	)		—			(1,373	)

BALANCE AT SEPTEMBER 29, 2018														8,064,510		$	30,601		$	181,041		$	(11,379	)	$	200,263		$	280		$	200,543

CRA ~~International, Inc.~~

~~Condensed Consolidated Balance Sheets (unaudited)~~

INTERNATIONAL, INC.~~(In thousands, except share data)~~

September 29,
2018 December 30,
2017
Assets

Current assets:

Cash and cash equivalents
$ 11,863 $ 54,035
Accounts receivable, net of allowance of $5,440 at September 29, 2018 and $5,252 at December 30, 2017
88,270 79,803
Unbilled services, net of allowance of $1,427 at September 29, 2018 and $865 at December 30, 2017
43,303 33,530
Prepaid expenses and other current assets
10,847 11,373
Forgivable loans
6,400 5,540

Total current assets
160,683 184,281
Property and equipment, net
50,068 44,643
Goodwill
88,562 89,000
Intangible assets, net
8,189 9,208
Deferred income taxes
8,585 8,713
Forgivable loans, net of current portion
36,786 23,088
Other assets
1,774 2,824

Total assets
$ 354,647 $ 361,757

Liabilities and shareholders' equity

Current liabilities:

Accounts payable
$ 23,808 $ 18,473
Accrued expenses
81,898 94,573
Borrowings on revolving line of credit
5,000 —
Deferred revenue
3,307 6,896
Current portion of deferred compensation
1,288 908
Current portion of deferred rent
1,789 1,131

Total current liabilities
117,090 121,981
Non-current liabilities:

Deferred compensation and other non-current liabilities
13,034 11,526
Deferred rent and facility-related non-current liabilities
23,703 20,656
Deferred income taxes
277 365

Total non-current liabilities
37,014 32,547
Commitments and contingencies (Note 17)

Shareholders' equity:

Preferred stock, no par value; 1,000,000 shares authorized; none issued and outstanding
— —
Common stock, no par value; 25,000,000 shares authorized; 8,064,510 shares and 8,297,172 shares issued and outstanding at September 29, 2018 and December 30, 2017, respectively
30,601 47,414
Retained earnings
181,041 169,390
Accumulated other comprehensive loss
(11,379 ) (9,896 )

Total CRA International, Inc. shareholders' equity
200,263 206,908
Noncontrolling interest
280 321

Total shareholders' equity
200,543 207,229

Total liabilities and shareholders' equity
$ 354,647 $ 361,757

~~CRA International, Inc.~~

~~Condensed Consolidated Statements of Cash Flows (unaudited)~~

~~(In thousands)~~

Fiscal Year-to-Date
Period Ended

September 29,
2018 September 30,
2017
Operating activities:

Net income
$ 15,633 $ 9,962
Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization
7,305 6,636
Loss on disposal of property and equipment
— 10
Impairment of intangible assets
— 523
GNU gain on sale of business assets
— (250 )
Deferred rent
3,650 1,316
Deferred income taxes
(102 ) 230
Share-based compensation expenses
3,704 4,633
Accounts receivable allowances
884 1,746
Changes in operating assets and liabilities:

Accounts receivable
(9,391 ) (10,180 )
Unbilled services
�� (10,175 ) (15,533 )
Prepaid expenses and other current assets, and other assets
1,417 6,505
Forgivable loans
(14,716 ) 2,418
Incentive cash awards
2,367 956
Accounts payable, accrued expenses, and other liabilities
(8,970 ) (1,181 )

Net cash provided by (used in) operating activities
(8,394 ) 7,791
Investing activities:

Cash consideration paid for acquisitions
— (16,163 )
Purchases of property and equipment
(13,379 ) (5,366 )
GNU cash proceeds from sale of business assets
— 250

Net cash used in investing activities
(13,379 ) (21,279 )
Financing activities:

Issuance of common stock, principally stock option exercises
1,387 2,950
Borrowings under revolving line of credit
30,161 11,500
Repayments under revolving line of credit
(24,599 ) (11,500 )
Tax withholding payments reimbursed by restricted shares
(1,783 ) (703 )
Cash paid on dividend equivalents
(98 ) (25 )
Cash dividends paid to shareholders
(4,168 ) (3,529 )
Repurchases of common stock
(20,389 ) (19,528 )
Distribution to noncontrolling interest
(41 ) —

Net cash used in financing activities
(19,530 ) (20,835 )
Effect of foreign exchange rates on cash and cash equivalents
(869 ) 1,692

Net decrease in cash and cash equivalents
(42,172 ) (32,631 )
Cash and cash equivalents at beginning of period
54,035 53,530

Cash and cash equivalents at end of period
$ 11,863 $ 20,899

Noncash investing and financing activities:

Issuance of common stock for acquired business
$ — $ 3,044

Purchases of property and equipment not yet paid for
$ 1,852 $ 2,568

Purchases of property and equipment paid by a third party
$ — $ 1,640

Asset retirement obligations
$ 217 $ —

Supplemental cash flow information:

Cash paid for income taxes
$ 3,409 $ 7,297

Cash paid for interest
$ 380 $ 248

~~CRA International, Inc.~~

~~Condensed Consolidated Statement of Shareholders' Equity (unaudited)~~

~~(In thousands, except share data)~~

Common Stock

CRA
International,
Inc.
Shareholders'
Equity

Accumulated
Other
Comprehensive
Loss

Shares
Issued Amount Retained
Earnings Noncontrolling
Interest Total
Shareholders'
Equity
BALANCE AT DECEMBER 30, 2017
8,297,172 $ 47,414 $ 169,390 $ (9,896 ) $ 206,908 $ 321 $ 207,229
Net income
15,633 15,633 15,633
Foreign currency translation adjustment
(1,483 ) (1,483 ) (1,483 )
Cumulative effect of a change in accounting principle related to ASC 606, net of tax
366 366 366
Exercise of stock options
65,457 1,387 1,387 1,387
Share-based compensation expense
3,704 3,704 3,704
Restricted share vestings
115,645
Redemption of vested employee restricted shares for tax withholding
(35,287 ) (1,783 ) (1,783 ) (1,783 )
Shares repurchased
(378,477 ) (20,121 ) (20,121 ) (20,121 )
Distribution to noncontrolling interest
(41 ) (41 )
Accrued dividends on unvested shares
(82 ) (82 ) (82 )
Cash paid on dividend equivalents
(98 ) (98 ) (98 )
Cash dividends paid to shareholders
(4,168 ) (4,168 ) (4,168 )

BALANCE AT SEPTEMBER 29, 2018
8,064,510 $ 30,601 $ 181,041 $ (11,379 ) $ 200,263 $ 280 $ 200,543

~~CRA International, Inc.~~

~~Notes to Condensed Consolidated Financial Statements~~

(Unaudited)

CRA International, Inc. ("CRA" or the "Company") is a worldwide leading consulting services firm that applies advanced analytic techniques and in-depth industry knowledge to complex engagements for a broad range of clients. CRA offers services in two broad areas: ~~(1)~~ litigation, regulatory, and financial ~~consulting;~~consulting and ~~(2)~~ management consulting. CRA operates in one business segment. CRA operates its business under its registered trade name, Charles River Associates.

The consolidated financial statements include the accounts of CRA and its wholly owned subsidiaries. In addition, for periods prior to December 30, 2018, the consolidated financial statements include CRA's interest in GNU123 Liquidating Corporation ("GNU", formerly known as NeuCo, Inc.). All significant intercompany transactions and accounts have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements reflect the results of operations, financial position, cash flows, and shareholders' equity as of and for the fiscal quarters and fiscal year-to-date periods ~~ended~~ending September 28, 2019 and September 29, 2018, ~~and September 30, 2017,~~ respectively. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission ~~(SEC)~~("SEC") for Quarterly Reports on Form 10-Q. Accordingly, these financial statements do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America ~~(GAAP)~~("GAAP") for annual financial statements. In the opinion of management, these financial statements reflect all adjustments of a normal, recurring nature necessary for the fair statement of CRA's results of operations, financial position, cash flows, and shareholders' equity for the interim periods presented in conformity with GAAP. Results of operations for the interim periods presented herein are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended December ~~30, 2017~~29, 2018 included in CRA's Annual Report on Form 10-K filed with the SEC on ~~March 12,~~February 28, 2019 (the "2018 Form 10-K").

Prior to liquidation of GNU on December 18, 2018, CRA's ownership interest in GNU was 55.89%. For periods prior to December 30, 2018, GNU's financial results have been consolidated with CRA, and the portion of GNU's results allocable to its other owners is shown as "noncontrolling interest." GNU did not contribute to CRA's results of operations during the fiscal quarters or fiscal year-to-date periods ended September 28, 2019 or September 29, 2018.

The preparation of financial statements in conformity with GAAP requires management to make significant estimates and judgments that affect the reported amounts of assets and liabilities, as well as the related disclosure of contingent assets and liabilities, at the date of the financial statements, and the

reported amounts of consolidated revenues and expenses during the reporting period. Estimates in these condensed consolidated financial statements include, but are not limited to, allowances for accounts receivable and unbilled services, revenue recognition on fixed price contracts, variable consideration to be included in the transaction price of revenue contracts, depreciation of property and equipment, measurement of operating lease right-of-use assets and liabilities, share-based compensation, valuation of contingent consideration liabilities, valuation of acquired intangible assets, impairment of long lived assets and goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, ~~valuation of contingent consideration,~~ accrued incentive compensation, and certain other accrued expenses. These items are monitored and analyzed by CRA for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. CRA bases its estimates on historical experience and various other assumptions that CRA believes to be reasonable under the circumstances. Actual results may differ from those estimates if CRA's assumptions based on past experience or other assumptions do not turn out to be substantially accurate.

CRA adopted Accounting Standard Update ("ASU") No. 2016-02,Leases (Topic 842), which established Accounting Standards Codification ("ASC") Topic 842 ("ASC 842") and supersedes ASC Topic 840,Leases ("ASC 840"), on December 30, 2018 using the additional modified retrospective transition method provided by ASC 842. The cumulative effect of ~~Consolidation~~the transition adjustments was recognized as of the date of adoption.

CRA elected the package of practical expedients provided by ASC 842, which allowed CRA to forgo reassessing the following upon adoption of the new standard: (1) whether contracts contain leases for any expired or existing contracts, (2) the lease classification for any expired or existing leases, and (3) initial direct costs for any existing or expired leases. In addition, CRA elected an accounting policy to exclude from the consolidated balance sheets the right-of-use ("ROU") assets and lease liabilities related to short-term leases, which are those leases with an initial lease term of twelve months or less that do not include an option to purchase the underlying asset that CRA is reasonably certain to exercise. Refer to Note 10 for further discussion of CRA's lease accounting policy.

The ~~condensed consolidated financial statements include~~reported results for 2019 reflect the ~~accounts~~application of ASC 842 guidance, whereas comparative periods and their respective disclosures prior to the adoption of ASC 842 are presented using the legacy guidance of ASC 840. As a result of adopting the new standard, CRA recognized ROU assets of $82.3 million and ~~its wholly owned subsidiaries. In addition,~~lease liabilities of $106.8 million. The difference between the amount of ROU assets and lease liabilities recognized was an adjustment to deferred rent. There was no change to net deferred tax assets as ~~more fully explained below, the condensed consolidated financial statements include~~a result of CRA's ~~interest in GNU123 Liquidating Corporation ("GNU", formerly known as~~adoption of ASC 842. The adoption of ASC 842 did not have a material impact on CRA's results of operations or cash flows, nor did it have an impact on any of CRA's existing debt covenants.

~~Notes to Condensed Consolidated Financial Statements~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

~~3. Principles~~1. Summary of ~~Consolidation~~Significant Accounting Policies (Continued)

~~NeuCo, Inc.). All significant intercompany transactions and accounts have been eliminated in consolidation.~~

CRA's ownership interest in GNU was 55.89% for all periods presented. GNU's financial results have been consolidated with CRA, and the portion of GNU's results allocable to its other owners is shown as "noncontrolling interest."

On April 13, 2016, a buyer acquired substantially all the business assets and assumed substantially all the liabilities of GNU for a purchase price of $1.35 million. Of this amount, $1.1 million was received at closing, and the remaining $0.25 million was paid in full on May 3, 2017. GNU recognized a gain on sale of its business assets of $0.25 million during the second quarter of fiscal 2017, of which $0.14 million is attributed to CRA. GNU was dissolved on December 15, 2017. In December 2017, CRA received a partial distribution of $0.6 million in accordance with the asset purchase agreement. CRA received another distribution of $0.06 million in accordance with the agreement on July 20, 2018.

~~CRA adopted Accounting Standards Update ("ASU") No. 2014-09,~~~~Revenue from Contracts with Customers (Topic 606) (~~ASC 606), which established Accounting Standards Codification ("ASC") Topic 606, on December 31, 2017, using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for fiscal 2018 reflect the application of ASC 606 guidance, while the reported results for fiscal 2017 were prepared under the guidance of ASC 605,~~Revenue Recognition~~ (ASC 605). The cumulative effect of applying ASC 606 to all contracts with customers that were not completed as of December 30, 2017 amounted to $0.4 million. The cumulative effect adjustment resulted in an increase to CRA's fiscal 2018 opening balance of retained earnings of $0.4 million, net of tax. Prior periods were not retrospectively adjusted.

~~CRA adopted ASU No. 2016-18,~~~~Statement of Cash Flows (Topic 230): Restricted Cash~~ ("ASU 2016-18"), on January 1, 2018. ASU 2016-18 amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The new standard requires cash and cash equivalents balances on the statement of cash flows to include restricted cash and cash equivalent balances. ASU 2016-18 requires a company to provide appropriate disclosures about its accounting policies pertaining to restricted cash in accordance with GAAP. Additionally, changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, and restricted cash and restricted cash equivalents are not to be presented as cash flow activities in the statement of cash flows. The adoption of ASU 2016-18 did not have a material impact on CRA's financial position, results of operations, cash flows, or disclosures.

~~Business Combinations (Topic 805): Clarifying the Definition of a Business~~

~~CRA adopted ASU No. 2017-01,~~~~Business Combinations (Topic 805): Clarifying the Definition of a Business~~ ~~("ASU 2017-01"), on January 1, 2018. ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating~~

whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the amendments, a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. The adoption of ASU 2017-01 did not have a material impact on CRA's financial position, results of operations, cash flows, or disclosures.

~~Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment~~

~~CRA adopted ASU No. 2017-04,~~~~Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment~~ ("ASU 2017-04"), on January 1, 2018. ASU 2017-04 simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the charge recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment charge, if applicable. The amendments also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The adoption of ASU 2017-04 did not have a material impact on CRA's financial position, results of operations, cash flows, or disclosures.

~~Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting~~

~~CRA adopted ASU No. 2017-09,~~~~Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting~~ ("ASU 2017-09"), on January 1, 2018. ASU 2017-09 updates guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Under the amendments, an entity should account for the effects of a modification unless all the following conditions are met. First, the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. Second, the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. Third, the classification of the modified award as an equity instrument or a liability is the same as the classification of the original award immediately before the original award is modified. The adoption of ASU 2017-09 did not have a material impact on CRA's financial position, results of operations, cash flows, or disclosures.

~~On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118, "~~~~Income Tax Accounting Implications of the Tax Cuts and Jobs Act~~" ("SAB 118"), to address the application of GAAP in situations when a company does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act (the "Tax Act"). SAB 118 summarizes a three-step process to be applied at each reporting period to account for and disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the change in tax law where accounting is not complete, but a reasonable estimate has been determined; and (3) current or deferred tax amounts reflected in accordance with law prior to the enactment of the change in tax law because the accounting of the effects of the change in tax law are not complete and a reasonable estimate has not been determined, together with qualitative disclosure of the effects of the changes in tax law for which the accounting is not compete, the reason why the accounting is not complete, and the additional information that is needed to be obtained, prepared or analyzed in order to complete the accounting. Because the Tax Act was passed late in the fourth quarter of 2017, and ongoing guidance and accounting interpretations are expected over the next 12 months, CRA considers the accounting of deferred tax remeasurements and other items to be incomplete due to the forthcoming guidance and CRA's ongoing analysis of final year-end data and tax positions. Adjustments to these preliminary amounts identified during the measurement period, as defined, will be included as an adjustment to tax expense from continuing operations in the period in which the amounts are determined. CRA believes that it has made a good faith effort to complete the accounting under ASC 740 with respect to the Tax Act. SAB 118 provides that the measurement period is complete when a company's accounting is complete and in no circumstances, should the measurement period extend beyond one year from the enactment date of the applicable change in tax law.

~~Securities and Exchange Commission Simplification and Update of Disclosure Requirements~~

In August 2018, the Securities and Exchange Commission announced that it had voted to adopt amendments to certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other Commission disclosure requirements, U.S. Generally Accepted Accounting Principles (GAAP), or changes in the information environment. The Commission has also referred certain disclosure requirements that overlap with, but require information incremental to, GAAP to the Financial Accounting Standards Board (FASB) for consideration for potential incorporation into GAAP. The amendments will be effective 30 days from publication in the Federal Register, or November 4, 2018. CRA has not yet determined the effects, if any, that the adoption of these amendments may have on its financial position, results of operations, cash flows, or disclosures.

~~In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-13,~~~~Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement~~ ~~("ASU No. 2018-13"). The ASU eliminates, adds and modifies certain~~

disclosure requirements for fair value measurements from ASC 820. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurement. The new standard is effective for interim and annual periods beginning after December 15, 2019. Entities are permitted to early adopt either the entire standard or only the provisions that eliminate or modify the requirements. CRA has not yet determined the effects, if any, that the adoption of ASU 2018-10 may have on its financial position, results of operations, cash flows, or disclosures.

~~In February 2016, the FASB issued ASU No. 2016-02,~~~~Leases (Topic 842)~~ ("ASU 2016-02"). ASU 2016-02 establishes a comprehensive new lease accounting model. The new standard clarifies the definition of a lease, requires a dual approach to lease classification similar to current lease classifications, and causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease term of more than 12 months. The new standard is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. While CRA is currently evaluating the impact of adopting ASU 2016-02, based on the lease portfolio as of September 29, 2018, CRA anticipates recording a right of use asset and a lease liability that will materially increase its assets and liabilities on the consolidated balance sheet. CRA continues to evaluate the impact on its consolidated income statement.

~~In July 2018, the FASB issued ASU No. 2018-10,~~~~Codification Improvements to Topic 842, Leases~~ ("ASU 2018-10"). ASU 2018-10 clarifies or corrects unintended application of guidance related to ASU 2016-02. The amendment affects narrow aspects of ASU 2016-02 related to (1) residual value guarantees, (2) rate implicit in the lease, (3) lessee reassessment of lease clarification, (4) lessor reassessment of lease term and purchase option, (5) variable lease payments that depend on an index or a rate, (6) investment tax credits, (7) lease term and purchase option, (8) transition guidance for amounts previously recognized in business combinations, (9) certain transition adjustments, (10) transition guidance for leases previously classified as capital leases under~~Topic 840, (11) transition guidance for modifications to leases previously classified as direct financing or sales-type leases under~~~~Topic 840~~, (12) transition guidance for sale and leaseback transactions, (13) impairment of net investment in the lease, (14) unguaranteed residual assets, (15) effect of initial direct costs on rate implicit in the lease, and (16) failed sale and leaseback transactions. The amendments in this update affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. In July 2018, the FASB issued ASU No. 2018-11,~~Leases (Topic 842), Targeted Improvements~~, which creates an optional transition expedient that allows an entity to apply the transition provisions of the new standard, including its disclosure requirements, at its adoption date instead of at the beginning of the earliest comparative period presented as originally required by FASB ASU No. 2016-02.

We are in the process of implementing a plan for the adoption of FASB ASU No. 2016-02. Through our implementation efforts, we have determined that we intend to elect to apply the package of practical expedients, and we do not intend to elect to apply the hindsight practical expedient. We will adopt FASB ASU No. 2016-02 on December 30, 2018 using this transition expedient. We expect that adoption of this standard will result in the recognition of a lease liability and right-of-use asset for certain operating leases that are currently not recorded on the consolidated balance sheets. While we have not yet quantified the impact of FASB ASU No. 2016-02 on our consolidated financial position or results of operations, at December 30, 2017, we were contractually obligated to make future payments of $134.0 million under our operating lease obligations in existence as of that date, primarily related to long-term facility leases. Under FASB ASU No. 2016-02, the related operating leases would potentially be required to be presented on our consolidated balance sheets.

Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting

~~In June 2018, the FASB issued~~CRA adopted ASU No. 2018-07,Compensation—Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting (Topic 718) ("ASU 2018-07"). on December 30, 2018. ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this update specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used effectively to provide financing to the issuer or awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606,Revenue from Contracts with Customers. The new guidance ~~is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new guidance~~ requires a remeasurement of nonemployee awards at fair value as of the adoption ~~date~~date. The adoption of ASU 2018-07 did not have a material impact on CRA's financial position, results of operations, cash flows, or disclosures.

Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13,Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 replaces the methodology that recognizes impairment of financial instruments when losses have been incurred with a methodology that recognizes impairment of financial instruments when losses are expected. The amendment requires entities to use a forward-looking "expected loss" model for most financial instruments, including accounts receivable and ~~disclosure~~loans, which is based on historical information, current information, and reasonable and supportable forecasts. For available-for-sale debt securities with unrealized losses, credit losses will be recognized as an allowance rather than as a reduction in the amortized cost of the ~~nature~~debt securities. ASU 2016-13 is effective for CRA for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual periods beginning after December 15, 2018. Adoption of ASU 2016-13 will be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period after adoption.

In November 2018, the FASB issued ASU No. 2018-19,Codification Improvements to Topic 326, Financial Instruments—Credit Losses ("ASU 2018-19"). ASU 2018-19 changes the required adoption date for nonpublic business entities and clarifies that receivables arising from operating leases are not within the scope of Topic 326.

CRA is in the process of determining the effects, if any, that the adoption of the amendments may have on its financial position, results of operations, cash flows, or disclosures. CRA plans to adopt the amendments during the first quarter of 2020.

In August 2018, the FASB issued ASU No. 2018-13,Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ("ASU No. 2018-13").

The ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements from ASC 820,Fair Value Measurements and Disclosures (Topic 820). Entities will no longer be required to disclose the amount of and ~~reason~~reasons for ~~the change in accounting principle~~transfers between Level 1 and ~~if applicable, quantitative information about the cumulative effect~~Level 2 of the ~~change on retained earnings~~fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurement. The new standard is effective for interim and annual periods beginning after December 15, 2019. Entities are permitted to early adopt either the entire standard or ~~other components of shareholders' equity.~~only the provisions that eliminate or modify the requirements. CRA has not yet determined the effects, if any, that the adoption of ASU ~~2018-07~~2018-13 may have on its financial position, results of operations, cash flows, or disclosures. CRA plans to adopt ASU 2018-13 during the first quarter of 2020.

~~On January 31, 2017, CRA acquired C1 Consulting LLC, an independent consulting firm, and its wholly-owned subsidiary C1 Associates (collectively, "C1")~~Accounting for initial consideration comprised of cash and CRA restricted common stock. The asset purchase agreement provided for additional purchase consideration to be paid for up to four years following the transactionImplementation Costs Incurred in ~~the form of an earnout, if specific performance targets are met. These earnout payments are payable in cash and CRA common stock, subject to~~ a transfer lock-up. The fair value of this obligation was measured as of the acquisition date and accounted for as a component of the purchase consideration. Any adjustments to the initial valuation of the obligation in future accounting periods will be reported as an adjustment to net income. The acquisition accounting resulted in the recognition of goodwill of $13.0 million, amortizable intangible assets of $8.5 million, and a contingent consideration liability of $2.4 million.

In August 2018, the FASB issued ASU No. 2018-15,Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). ASU 2018-15 clarifies the accounting for implementation costs in a cloud computing arrangement that is a service contract and aligns the requirements for capitalizing those costs with the capitalization requirements for costs incurred to develop or obtain internal-use software. The new standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. CRA ~~International, Inc.~~is currently evaluating the effects, if any, the adoption of ASU 2018-15 may have on its financial position, results of operations, cash flows, or disclosures. CRA plans to adopt ASU 2018-15 during the first quarter of 2020.

Cash equivalents consist principally of money market funds with maturities of three months or less when purchased. As of September 29, 2018, a substantial portion of CRA's cash accounts was concentrated at a single financial institution, which potentially exposes CRA to credit risks. The financial institution has a short-term credit rating of A-2 by Standard & Poor's ratings services. CRA has not experienced any losses related to such accounts. CRA does not believe that there is significant risk of non-performance by the financial institution, and its cash on deposit is fully liquid. CRA continually monitors the credit ratings of the institution.

Results of operations for CRA's non-U.S. subsidiaries are translated from the designated functional currency to the reporting currency of the U.S. dollar. Revenues and expenses are translated at average exchange rates for each month, while assets and liabilities are translated at balance sheet date exchange rates. The resulting net translation adjustments are recorded as a component of shareholders' equity in "Accumulated other comprehensive income (loss)."

Transaction gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in on the condensed consolidated income statements. Such transaction gains and losses may be realized or unrealized depending upon whether the transaction settled during the period or remains outstanding at the balance sheet date.

~~ASC~~ Topic 820~~Fair Value Measurements and Disclosures,~~ establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurement), then priority to quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market (Level 2 measurement), then the lowest priority to unobservable inputs (Level 3 measurement).

~~Notes to Condensed Consolidated Financial Statements~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following ~~table shows~~tables show CRA's financial instruments as of September ~~29, 2018~~28, 2019 and December ~~30, 2017~~29, 2018 that are measured and recorded in the condensed consolidated financial statements at fair value on a recurring basis (in thousands):

The fair ~~values~~value of CRA's money market funds are based on quotes received from third-party banks. The carrying value of CRA's revolving line of credit approximates the fair value based upon the short-term nature of the arrangement and the variable interest rate.mutual fund share holdings is $1.00 per share.

The contingent consideration ~~liability~~liabilities in the tables above isare for estimated future ~~contingent consideration~~ payments related to an acquisition that occurred on January 31, 2017. The asset purchase agreement provided for additional purchase consideration to be paid over a ~~prior acquisition. These deferred payments are recorded at fair value at~~period of up to four years following the ~~time~~closing of ~~acquisition and are included~~the transaction in ~~other current and/or non-current liabilities on our consolidated balance sheet.~~the form of an earnout, subject to the satisfaction of specific revenue performance targets. The fair value measurement of ~~the contingent consideration is determined using the Monte Carlo simulation (in a risk-neutral framework). The fair value of this liability~~these liabilities is based on significant inputs not observed in the market ~~such as internally generated projections of future profitability, as well as related volatility and discount rates,~~ and thus represent a Level 3 measurement. The significant unobservable inputs used in the fair value measurements of these contingent consideration liabilities are internally generated projections of sourced revenue and discount rates. The fair value of ~~this~~the contingent ~~acquisition liability~~consideration was determined using a Monte Carlo simulation. The fair value of these contingent consideration liabilities is reassessed on a quarterly basis by CRA using additional information as it becomes available, and any change in the fair value estimates are recorded in ~~cost~~costs of services (exclusive of depreciation and amortization) on the condensed consolidated income statement of that period.

~~Notes to Condensed Consolidated Financial Statements~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table summarizes the changes in the contingent consideration liabilities over the fiscal year-to-date period ended September ~~29, 2018~~28, 2019 and the fiscal year ended December ~~30, 2017~~29, 2018 (in thousands):

Forgivable loan activity for the fiscal year-to-date period ended September ~~29, 2018~~28, 2019 and the fiscal year ended December ~~30, 2017~~29, 2018 is as follows (in thousands):

The changes in the carrying amount of goodwill during the fiscal year-to-date period ended September ~~29, 2018,~~28, 2019, are as follows (in thousands):

Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and amortized over their expected useful lives. There were no impairment losses related to intangible assets during the ~~third quarter of~~ fiscal year-to-date period ended September 28, 2019 or September 29, 2018.

The components of acquired identifiable intangible assets are as follows (in thousands):

As of September 28, 2019 and December 29, 2018, ~~and December 30, 2017,~~ approximately ~~$53.1~~$59.9 million and ~~$63.8~~$73.9 million, respectively, of accrued bonuses were included above in "Compensation and related expenses". Additionally, as of September 29, 2018, "Other" accrued expenses include $6.2 million of commissions due to senior consultants, $0.8 million of direct project accruals, $6.1 million of operating expense accruals and $0.5 million of accrued leasehold improvements. As of December 30, 2017, "Other" accrued expenses include $6.1 million of commissions due to senior consultants, $1.3 million of direct project accruals, $4.4 million of operating expense accruals and $2.5 million of accrued leasehold improvements.

CRA is party to a credit agreement that provides CRA with a $125.0 million revolving credit facility and a $15.0 million sublimit for the issuance of letters of credit. CRA may use the proceeds of the revolving credit facility to provide working capital and for other general corporate purposes. CRA may repay any borrowings under the revolving credit facility at any time, but no later than October 24, 2022. ~~As of September 29, 2018, there~~There were ~~$5.0~~$36.0 million in borrowings outstanding under this revolving credit facility ~~which are expected to be repaid over the next 12 months in accordance with the terms~~as of ~~the agreement (for more details, refer to Note 19).~~September 28, 2019. There were no outstanding borrowings onunder this facility as of December ~~30, 2017.~~29, 2018.

As of September ~~29, 2018,~~28, 2019, the amount available under this revolving credit facility was reduced by ~~$3.9 million due to~~ certain letters of credit ~~outstanding.~~outstanding, which amounted to $4.4 million. Under the credit agreement, CRA must comply with various financial and non-financial covenants. Compliance with these financial

covenants is tested on a fiscal quarterly basis. As of September ~~29, 2018~~28, 2019 and December ~~30, 2017,~~29, 2018, CRA was in compliance with the covenants of its credit agreement.

CRA offers ~~consulting services in two broad lines: (1)~~functional expertise across a variety of litigation, regulatory, financial, industry and ~~financial consulting; and (2)~~ management ~~consulting.~~consulting services. Together, these ~~two service lines~~services comprised all of CRA's consolidated revenues during the fiscal ~~quarter ended September 29, 2018. CRA recognizes all project revenue on a gross basis based on consideration of the criteria set forth in ASC Topic 606-10-55,~~~~Principal versus Agent Considerations~~~~. Revenue recognized during the fiscal quarter~~quarters and fiscal year-to-date periods ended September ~~29, 2018 under ASC 606 are not materially different from the revenues that would have been recognized under ASC 605.~~

CRA evaluates its revenue contracts with customers based on the five-step model under ASC 606: (1) Identify the contract with the customer; (2) Identify the performance obligations in the contract; (3) Determine the transaction price; (4) Allocate the transaction price to separate performance obligations;28, 2019 and (5) Recognize revenue when (or as) each performance obligation is satisfied. CRA evaluates its contracts for legal enforceability at contract inception and subsequently throughout CRA's relationship with its customers. If legal enforceability with regards to the rights and obligations exist for both CRA and the customer, then CRA has an enforceable contract and revenue recognition is permitted subject to the satisfaction of the other criteria. If, at the outset of an arrangement, CRA determines that a contract with enforceable rights and obligations does not exist, revenues are deferred until all criteria for an enforceable contract are met.

Revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised consulting services are transferred to customers. Revenue is measured as the amount of consideration CRA expects to receive in exchange for transferring consulting services to a customer ("transaction price"). To the extent the transaction price includes variable consideration, CRA estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which it expects to be entitled. Variable consideration is included in the transaction price if, in CRA's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of CRA's anticipated performance and all information (historical,

~~current and forecasted) that is reasonably available. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue.~~

When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in ASC 606, CRA does not assess whether a significant financing component exists if the period between when it performs its obligations under the contract and when the customer pays is one year or less. None of the CRA's contracts contained a significant financing component as of September 29, 2018.

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised consulting services underlying each performance obligation. CRA determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, CRA estimates the standalone selling price considering all available information such as market conditions and internally approved pricing guidelines related to the performance obligations.

Contracts are often modified to account for changes in project scope. Contract modifications exist when the modification either creates new, or changes existing, enforceable rights and obligations. Generally, contract modifications for consulting services are not distinct from the existing contract as the modification expands CRA's consulting services, contemplated by the existing contract and thus are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis.

Consulting services revenue is generally recognized over time as the services are delivered to the customer based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the consulting services to be provided. Depending on which better depicts the transfer of value to the customer, CRA generally measures its progress on time and materials projects based on the hours incurred and the stated rates outlined in our retention letters with our customers. For fixed price projects progress is measured on a cost-to-cost basis. CRA uses the right-to-invoice measure of progress when it has a right to invoice the customer for an amount that corresponds directly with the value to the customer of its performance to date. Under the right-to-invoice measure of progress, revenues are recorded equal to the amount CRA could invoice the customer. CRA uses the cost-to-cost measure of progress when it best depicts the transfer of value to the customer which occurs as it incurs costs on its contract. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred.

The contracts that CRA enters into and operates under specify whether the ~~engagements are~~engagement will be billed on a time-and-materials or a fixed-price basis. ~~Most of CRA's revenue is derived from time-and-materials~~

service contracts. Revenues from time-and-materials service contracts are recognized as services are provided based upon hours worked and contractually agreed-upon hourly rates, as well as indirect fees based upon hours worked. Revenues from a majority of CRA's fixed-price engagements are recognized on a proportional performance method based on the ratio of costs incurred (input method), substantially all of which are labor-related, to the total estimated project costs. 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 engagement, including any amounts billed to CRA by its non-employee experts.

The following table disaggregates CRA's revenue by ~~major business line~~type of contract and timing of transfer of its consulting services. Refer to Note 12 to CRA's consolidated financial statements included in the annual report on Form 10-K for fiscal 2017, which was filed with the SEC on March 12, 2018, for further detail on revenues by geographicalgeographic location (in thousands).:

Revenues from CRA's consulting services are recorded at the net transaction price, which includes estimates of variable consideration for which reserves are established. ~~These variable~~Variable consideration reserves ~~which~~ are based on actual price concessions and those expected to be extended to CRA customers ~~are classified as reductions of accounts receivable~~ and ~~unbilled services. These calculated~~are

~~Notes to Condensed Consolidated Financial Statements~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

estimates take into consideration CRA's historical experiences of prior period revenues that were subsequently reversed due to these price concessions. Overall, these reserves reflect CRA's best estimatesrecorded as a component of the amount of consideration to which it is entitled based on the terms of its contracts with its customers. The amount of variable consideration that is included in the transaction price may be constrained, and is included in the net transaction price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from CRA's estimates. If actual results in the future vary from its estimates, CRA adjusts these estimates, which would affect net revenue and earnings in the period such variances become known.

~~CRA's~~allowances for accounts receivable and unbilled ~~services consist of receivables from a broad range of clients in a variety of industries located throughout~~services. Adjustments to the U.S. and in other countries. CRA performs a credit evaluation of its clients to minimize its collectability risk. Periodically, CRA will require advance payment from certain clients. However, CRA does not require collateral or other security. CRA maintains accounts receivable allowances for estimated losses and disputed amounts resulting from clients' failures to make required payments. These allowancesvariable consideration reserves are ~~determined for specific customer accounts and are based on the financial condition of CRA's customer and related facts and circumstances.~~as follows (in thousands):

	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended

	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Adjustments to reserves for variable consideration and credit risk	$	2,282	$	2,441	$	6,440	$	5,887

~~During the fiscal quarter and fiscal year-to-date period ended September 29, 2018, $0.7 million and $1.1 million, respectively were recorded as a bad~~Bad debt expense ~~and~~is reported as a component of selling, general and administrative ~~expenses related to credit-related losses.~~

~~Revenues also include reimbursable expenses, which include travel and other out-of-pocket expenses, outside consultants, and other reimbursable expenses. Reimbursable expenses are~~expense. Bad debt expense is as follows (in thousands):

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 (GST/HST) and value added taxes (VAT) from customers and records these amounts on a net basis.

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 September ~~29, 2018.~~28, 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 September ~~29, 2018.~~28, 2019.

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 September ~~29, 2018~~28, 2019 and December ~~30, 2017.~~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):

During the fiscal quarter and fiscal year-to-date period ended September ~~29, 2018,~~28, 2019, CRA recognized the following revenue as a result of changes in the contract liability balance (in thousands):

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

~~Prior to the adoption of ASC 606,~~
CRA expensed bonuses paid to its employees. Under ASC 606, bonuses are not linked or paid based on specific contract billings or revenues and therefore do not represent incremental costs of obtaining a contract with a customer. Furthermore, even if the bonuses paid were incremental, the practical expedient in ASC 340 would apply, allowing for incremental costs of obtaining contracts to be expensed as incurred if the amortization period of the assets that it otherwise would have recognized is one year or less. As such, these costs are included in both cost of services and selling, general, and administrative expenses.INTERNATIONAL, INC.

CRA calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. CRA's participating securities consist of unvested share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the

weighted-average number of common shares ~~as of~~outstanding for the ~~balance sheet date,~~period, as adjusted for the potential dilutive effect of non-participating share-based awards. Net earnings allocable to these participating securities were not ~~significant~~material for the ~~third quarter of~~ fiscal ~~2018~~quarters and fiscal ~~2017.~~year-to-date periods ended September 28, 2019 and September 29, 2018.

The following table presents a reconciliation from net income ~~attributable~~ to ~~CRA International, Inc. to~~the net income available to common shareholders (in thousands):

The following table presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands):

For the fiscal quarter and fiscal year-to-date period ended September 28, 2019, the anti-dilutive share-based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding amounted to 63,164 and 47,169 shares, respectively. For the fiscal quarter and fiscal year-to-date period ended September 29, 2018, the anti-dilutive ~~share based~~share-based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding amounted to 8,256 and 13,443 shares, respectively. For the fiscal quarter and fiscal year-to-date period ended September 30, 2017, the anti-dilutive share based awards that were excluded from the calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding amounted to 40,439 and 66,470 shares, respectively. These share-based awards each period were anti-dilutive because their exercise price exceeded the average market price over the respective period.

On May 3, 2017 and February 15, 2018, CRA announced its Board of Directors authorized the repurchase of up to an additional $20.0 million and $20.0 million, respectively, of CRA's common stock. Repurchases under these programs are discretionary and CRA may make such purchases under any of these programs in the open market (including under any Rule 10b5-1 plan adopted by CRA) or in privately negotiated transactions, in each case in accordance with applicable insider trading and other securities laws and regulations. CRA records the retirement of its repurchased shares as a reduction to common stock. During the fiscal quarter ended September 29, 2018, CRA did not repurchase any shares under these share repurchase programs. During the fiscal year-to-date period ended September 29, 2018, CRA repurchased and retired 378,477 shares under these share repurchase

~~Notes to Condensed Consolidated Financial Statements~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

programs at an average price per share of $53.90. During the fiscal quarter and fiscal year-to-date period ended September 30, 2017, CRA repurchased and retired 165,629 shares and 554,708 shares, respectively, under these share repurchase programs at an average price per share of $36.63 and $35.23, respectively. As of September 29, 2018, there was approximately $9.1 million available for future repurchases under these programs.

On December 22, 2017, the Tax Act was signed into U.S. law. The Tax Act significantly changes the Internal Revenue Code of 1986, as amended. The Tax Act, among other things, includes changes to the U.S. corporate tax rate, expands limitations on the deductibility of meals and entertainment, eliminates the exception to the section 162(m) limitation on the deductibility of the compensation paid to certain executive officers for "qualified performance-based compensation," allows for the expensing of capital expenditures, migrates from a "worldwide" system of taxation to a territorial system, and includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. ASC Topic 740, "~~Accounting for Income Taxes~~," requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions is for tax years beginning after December 31, 2017, or in the case of certain other provisions of the law, January 1, 2018.

Given the significance of the legislation, the U.S. Securities and Exchange Commission staff issued SAB 118, which allows registrants to record provisional amounts during a one year "measurement period" similar to that used when accounting for business combinations. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared, and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared, or analyzed.

SAB 118 summarizes a three-step process to be applied at each reporting period to account for and disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the change in tax law where accounting is not complete, but a reasonable estimate has been determined; and (3) current or deferred tax amounts reflected in accordance with law prior to the enactment of the change in tax law because the accounting of the effects of the change in tax law are not complete and a reasonable estimate has not been determined, together with qualitative disclosure of the effects of the changes in tax law for which the accounting is not compete, the reason why the accounting is not complete, and the additional information that is needed to be obtained, prepared or analyzed in order to complete the accounting. CRA is applying the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act. As of September 29, 2018, CRA has not completed its accounting for all the tax effects of the Tax Act; however, in certain cases, as described below, aspects of accounting are complete. Additionally, CRA has made a reasonable estimate of other effects. As further discussed below, during the fiscal year-to-date period ended September 29, 2018, CRA recognized an adjustment of $0.3 million to the provisional amounts recorded at December 30, 2017 and included this adjustment as a component of

income tax expense from continuing operations. In all cases, CRA will continue to make and refine its calculations as additional analysis is completed. CRA's estimates may also be affected as it gains a more thorough understanding of the tax law. These changes could be material to income tax expense.

Deferred tax assets and liabilities: In response to the Tax Act, CRA remeasured its U.S. related deferred tax assets and liabilities based on the expected rates at which they may reverse in the future, which is generally 21%. CRA recorded a provisional amount of $3.6 million as of December 30, 2017 related to the remeasurement of its deferred tax balances. Upon refinement of its calculations during the fiscal year-to-date period ended September 29, 2018, CRA adjusted its provisional amount by $0.1 million which was recorded during the first quarter. Additionally, as a result of anticipated guidance in connection with the deductibility of compensation paid to certain executive officers for "qualified performance-based compensation," CRA recorded a provisional amount of $0.2 million during the second quarter. Both adjustments were included as a component of income tax expense from continuing operations, the impact of which was to increase the fiscal year-to-date effective tax rate from 22.7% to 24.1%. CRA will continue to analyze and refine its calculations related to deferred tax balances.

The Tax Act includes a one-time mandatory repatriation transition tax on the net accumulated earnings and profits of a U.S. taxpayer's foreign subsidiaries. At December 30, 2017, CRA did not record any transition tax liability as it is in an accumulated deficit position with respect to its foreign subsidiaries based on its earnings and profits ("E&P") analysis. CRA considers its accounting for the transition tax to be complete.

The Tax Act subjects a U.S. shareholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. Given the complexity of the GILTI provisions, CRA is still evaluating the effects of the GILTI provisions and has not yet determined its accounting policy. As of the September 29, 2018 reporting period, CRA has included GILTI associated with current-year operations solely within the estimated annual effective tax rate ("EAETR") and has not provided additional GILTI on deferred items.

The Tax Act allows U.S. corporations to take a deduction related to its foreign-derived intangible income ("FDII") produced in the U.S. CRA expects to be able to take FDII deduction for the fiscal year ended December 29, 2018. CRA has made sufficient progress in its calculations to reasonably estimate the effect on its estimated annual effective tax rate but will continue to refine its calculations, which may result in changes to this amount.

CRA's effective income tax rates were ~~20.9%~~14.2% and ~~41.7%~~20.9% for the third quarter of fiscal ~~2018~~2019 and fiscal ~~2017,~~2018, respectively. The effective tax rate for the third quarter of fiscal ~~2018~~2019 was lower than the prior year primarily due to the release of tax reserves as a ~~lower statutory U.S. corporate~~result of expiration of statutes of limitation, partially offset by a decrease in the tax benefit related to share-based compensation. The effective tax rate in the third quarter of ~~21%, an increased~~fiscal 2019 was lower than the combined federal and state statutory tax rate primarily due to the reversal of tax reserves as a result of expiration of statutes of limitation, the tax benefit on ~~stock-based~~share-based compensation, ~~related to the adoption of ASU 2016-09,~~ and the remeasurement of U.S deferred tax assets and liabilities based on expected fiscal ~~2018~~2019 applicable state apportionment and

statutory ~~rates. Additionally, there had been a discrete provision recorded in the third quarter of fiscal 2017 that was nonrecurring in the third quarter of fiscal 2018. This was~~rates, partially offset by ~~higher~~ non-deductible items ~~as a result of the Tax Act stemming~~resulting from ~~new~~ limitations on the deductibility of compensation paid to executive officers and the deductibility of meals and entertainment. The effective tax rate in the third quarter of fiscal 2018 was lower than the combined federal and state statutory tax rate primarily due to the tax benefit on ~~stock-based~~share-based compensation ~~related to the adoption of ASU 2016-09~~ and the remeasurement of U.S deferred tax assets and liabilities based on expected fiscal 2018 applicable state apportionment and statutory rates. The effective tax rate in the third quarter of fiscal year 2017 was higher than the combined federal and state statutory tax rate due to higher executive compensation and the correction of a prior year estimate.

CRA's effective income tax rates were ~~24.1%~~22.9% and ~~38.0%~~24.1% for the fiscal year-to-date periods ended September ~~29, 2018~~28, 2019 and September ~~30, 2017,~~29, 2018, respectively. The effective tax rate for the fiscal year-to-date period ended September ~~29, 2018~~28, 2019 was lower than the prior year primarily due to ~~a lower statutory U.S. corporate~~the release of tax ~~rate of 21% as well as an increased tax benefit on stock-based compensation related to the adoption of ASU 2016-09, partially offset by higher non-deductible items~~reserves as a result of expiration of statutes of limitation, partially offset by a decrease in the ~~Tax Act stemming~~tax benefit related to share-based compensation. The effective tax rate in the fiscal year-to-date period ended September 28, 2019 was lower than the combined federal and state statutory tax rate primarily due to the release of tax reserves as a result of expiration of statutes of limitation, the tax benefit on share-based compensation, and the remeasurement of U.S deferred tax assets and liabilities based on the expected fiscal 2019 applicable state apportionment and statutory rates, partially offset by non-deductible items resulting from ~~new~~ limitations on the deductibility of compensation paid to executive officers and the deductibility of meals and entertainment. The effective tax rate for the fiscal year-to-date period ended September 29, 2018 was lower than the combined federal and state statutory tax rate primarily due to the tax benefit on ~~stock-based~~share-based compensation, ~~related to the adoption of ASU 2016-09,~~ partially offset by the non-deductible items referenced above as a result of the Tax Act. The effective tax rate for the fiscal year-to-date period ended September 30, 2017 was lower than the combined federal and state statutory tax rate primarily due to a favorable geographical mix of earnings, as well as the tax benefit related to stock-based compensation and the tax implications associated with the reversal of contingent consideration, offset partially by executive compensation and other discrete unfavorable items.above.

CRA has not provided for deferred income taxes or foreign withholding taxes on undistributed earnings and other basis differences that may exist from its foreign subsidiaries as of September ~~29, 2018~~28, 2019, because such earnings are considered to be indefinitely reinvested. CRA does not rely on these unremitted earnings as a source of funds for its domestic business as it expects to have sufficient cash flow in the U.S. to fund its U.S. operational and strategic needs. If CRA were to repatriate its foreign earnings that are indefinitely reinvested, it would accrue substantially no additional tax expense.

CRA is a lessee under certain operating leases for office space and equipment. Prior to adopting ASC 842, CRA followed the lease accounting guidance as issued in ASC 840. Under ASC 840, CRA classified its leases as operating or capital leases based on evaluation of certain criteria of the lease agreement. For leases that contained rent escalations or rent holidays, CRA recorded the total rent expense during the lease term on a straight-line basis over the term of the lease and recorded the difference between the rents paid and the straight-line rent expense as deferred rent on the balance

sheet. Any tenant improvement allowances received from the lessor were recorded as a reduction to rent expense over the term of the lease.

ASC 842, which CRA adopted on December 30, 2018, requires lessees to recognize leases on the balance sheet as a lease liability with a corresponding ROU asset, subject to certain permitted accounting policy elections. As a result of adopting the new standard, CRA recognized ROU assets of $82.3 million and lease liabilities of $106.8 million related to its operating leases as of December 30, 2018. The difference between the amount of ROU assets and lease liabilities recognized was an adjustment to eliminate the deferred rent balance, which was a component of ASC 840.

Under ASC 842, CRA determines whether a contract is a lease at the inception of the contract. This determination is based on whether the contract provides CRA the right to control the use of a physically distinct asset or substantially all of the capacity of an asset. Leases with an initial noncancelable term of twelve months or less that do not include an option to purchase the underlying asset that CRA is reasonably certain to exercise are classified as short-term leases. CRA has elected as an accounting policy to exclude from the consolidated balance sheets the ROU assets and lease liabilities related to short-term leases. CRA recognizes rent expense for its operating leases on a straight-line basis over the term of the lease.

Many of CRA's equipment leases are short-term or cancellable with notice. CRA's office space leases have remaining lease terms between one and approximately twelve years, many of which include one or more options to extend the term for periods of up to five years for each option. Certain leases contain options to terminate the lease early, which may include a penalty for exercising the option. Many of the termination options require notice within a specified period, after which the option is no longer available to CRA if not exercised. The extension options and termination options may be exercised at CRA's sole discretion. CRA does not consider in the measurement of ROU assets and lease liabilities an option to extend or terminate a lease if CRA is not reasonably certain to exercise the option. As of September 28, 2019, CRA has not included any options to extend or terminate in its measurement of ROU assets or lease liabilities.

Certain of CRA's leases include covenants that oblige CRA, at its sole expense, to repair and maintain the leased asset periodically during the lease term. CRA is not a party to any leases that contain residual value guarantees nor is CRA a party to any leases that provide an option to purchase the underlying asset.

Many of CRA's office space leases include fixed and variable payments. Variable payments relate to real estate taxes, insurance, operating expenses, and common area maintenance, which are usually billed at actual amounts incurred proportionate to CRA's rented square feet of the building. Variable payments that do not depend on an index or rate are expensed by CRA as they are incurred and are not included in the measurement of the lease liability.

Many of CRA's leases contain both lease and non-lease components. For office space leases, the Company has elected as an accounting policy to account for lease and nonlease components as a single component. For equipment leases, fixed and variable payments are allocated to each component relative to observable or estimated standalone prices. CRA measures its variable lease costs as the portion of variable payments that are allocated to lease components.

CRA measures its lease liability for each leased asset as the present value of lease payments, as defined in ASC 842, allocated to the lease component, discounted using an incremental borrowing rate specific to the underlying asset. CRA's ROU assets are equal to the lease liability, adjusted for lease incentives received, including tenant improvement allowances, and payments made to the lessor prior to the lease commencement date. CRA estimates its incremental borrowing rate for each leased asset based on the interest rate CRA would incur to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment.

The components of CRA's lease expenses, which are included in the condensed consolidated income statement, are as follows (in thousands):

Supplemental cash flow information related to CRA's leases are as follows (in thousands):

The following table presents supplemental balance sheet information related to CRA's operating leases (in thousands):

At September 28, 2019, CRA had the following maturities of lease liabilities related to office space and equipment, all of which are under non-cancellable operating leases (in thousands):

As of September 28, 2019, CRA had additional operating leases for office space that have not yet commenced that have minimum rental commitments of $28.8 million. These operating leases will commence in fiscal year 2019 and 2020 and have lease terms of approximately six years to eleven years, subject to certain extension options.

CRA is subject to legal actions arising in the ordinary course of business. In management's opinion, based on current knowledge, CRA has adequate legal defenses and/or insurance coverage with respect to the eventuality of such actions. CRA does not believe any settlement or judgment relating to any pending legal action would materially affect its financial position or results of operations.

During the ~~first~~fourth quarter of fiscal 2018, CRA ~~discovered~~determined that the December 30, 2017 balances of deferred compensation and other non-current liabilities of $20.7 million and deferred rent and facility-related non-current liabilities of $11.5 million had been transposed. These immaterial offsetting errors had a net effect of $0 on non-current liabilities and total liabilities and have been revised as followschange in accounts receivable allowances presented in the ~~presentation~~March 31, 2018 condensed consolidated statement of ~~the December 30, 2017 balance sheet in this quarterly report on Form 10-Q (in thousands):~~

~~During the second quarter of fiscal 2018, CRA discovered that the accounts receivable and unbilled services allowances presented on the December 30, 2017 consolidated balance sheet~~cash flows required adjustment. These adjustments in disclosure are immaterial and had no effect on the ~~amounts~~amount of accounts receivable ~~and unbilled services~~ presented on the ~~December 30, 2017~~March 31, 2018 condensed consolidated balance ~~sheet (in thousands):~~

sheet. As a result of ~~the adjustment to the accounts receivable allowance, the following~~these adjustments, a classification ~~changes were~~change was required within the operating activities portion of the ~~September 30, 2017~~condensed consolidated statement of cash ~~flows~~flows. As of December 29, 2018, these adjustments were corrected and the accounts receivable and accounts receivable allowances were properly presented within the consolidated financial statements.

The following table presents the total classification changes required related to these adjustments for the fiscal year-to-date period ended September 29, 2018 (in thousands):

On ~~November 1, 2018,~~October 31, 2019, CRA announced that its Board of Directors declared a quarterly cash dividend of ~~$0.20~~$0.23 per ~~share of CRA's~~ common ~~stock,~~share, payable on December ~~21, 2018~~13, 2019 to shareholders of record as of November ~~27, 2018.~~26, 2019.

During the month of October ~~2018,~~2019, CRA repaid ~~$5.0~~$10.0 million on its existing borrowings under its revolving line of credit. After this repayment, no$26.0 million of borrowings remain outstanding.

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Except for historical facts, the statements in this quarterly report are forward-looking statements. Forward-looking statements are merely our current predictions of future events. These statements are inherently uncertain, and actual events could differ materially from our predictions. Important factors that could cause actual events to vary from our predictions include those discussed below under the heading "Risk Factors." We assume no obligation to update our forward-looking statements to reflect new information or developments. We urge readers to review carefully the risk factors described in the other documents that we file with the Securities and Exchange Commission, or SEC. You can read these documents at www.sec.gov.

Our principal Internet address is www.crai.com. Our website provides a link to a third-party website through which our annual, quarterly, and current reports, and amendments to those reports, are available free of charge. We believe these reports are made available as soon as reasonably practicable after we file them electronically with, or furnish them to, the SEC. We do not maintain or provide any information directly to the third-party website, and we do not check its accuracy.

Our website also includes information about our corporate governance practices. The Investor Relations page of our website provides a link to a web page where you can obtain a copy of our code of business conduct and ethics applicable to our principal executive officer, principal financial officer, and principal accounting officer.

The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the U.S. ("U.S. GAAP"). The preparation of these financial statements requires us to make significant estimates and judgments that affect the reported amounts of assets and liabilities, as well as the related disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates in these condensed consolidated financial statements include, but are not limited to, allowances for accounts receivable and unbilled services, revenue recognition on fixed price contracts, variable consideration to be included in the transaction price of revenue contracts, depreciation of property and equipment, measurement of operating lease right-of-use ("ROU") assets and liabilities, share-based compensation, valuation of contingent consideration liabilities, valuation of acquired intangible assets, impairment of long lived assets and goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued incentive compensation, and certain other accrued expenses. These items are monitored and analyzed by management for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. We base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from our estimates if our assumptions based on past experience or our other assumptions do not turn out to be substantially accurate.

We have described our significant accounting policies in Note 1 to our consolidated financial statements included in ~~our annual report on~~the 2018 Form ~~10-K for fiscal 2017, which was filed with the SEC on March 12, 2018.~~10-K. We have reviewed our accounting policies, identifying those that we believe to be critical to the preparation and understanding of our consolidated financial statements in the list set forth below. See the disclosure under the heading "Critical Accounting Policies" in Item 7 of Part II of ~~our Annual Report on~~the 2018 Form 10-K ~~for fiscal 2017~~ for a detailed description of these policies and their potential effects on our results of operations and financial condition.

Except for the adoption of ASC ~~606,~~842 as described below, we did not adopt any changes in the fiscal year-to-date period ended September ~~29, 2018~~28, 2019 that had a material effect on these critical accounting policies, nor did we make any changes to our accounting policies in the fiscal year-to-date period ended September ~~29, 2018~~28, 2019 that changed these critical accounting policies.

We adopted ASU No. ~~2014-09,~~2016-02,~~Revenue from Contracts with Customers~~Leases (Topic ~~606)~~842) (ASC ~~606)~~842) on ~~January 1,~~December 30, 2018, using the additional modified retrospective transition method ~~for all contracts not completed as of the date of adoption.~~provided by ASC 842. The reported results for ~~fiscal 2018~~2019 reflect the application of ASC ~~606~~842 guidance while the reported results for ~~fiscal 2017~~2018 were prepared under the guidance of ASC ~~605,~~840,~~Revenue Recognition~~Leases (ASC ~~605)~~840). ~~The cumulative effect~~As a result of ~~applying ASC 606 to all contracts with customers that were not completed~~adopting the new standard, we recognized ROU assets of $82.3 million and lease liabilities of $106.8 million, of which $10.6 million is classified as a current liability, as of December 30, ~~2017 amounted~~2018. The difference between the amount of ROU assets and lease liabilities recognized was an adjustment to ~~$0.4 million. The cumulative effect adjustment resulted in an increase to our fiscal 2018 opening balance of retained earnings of $0.4 million, net of tax.~~deferred rent. Prior periods ~~were~~will not be retrospectively adjusted. See Note 1410 to our consolidated condensed financial statements included in this quarterly report on Form 10-Q for a complete description of our accounting policy.

See Note 51 to our condensed consolidated financial statements included in this quarterly report on Form 10-Q for a discussion of recent accounting standards that we have not yet ~~adopted. Additionally, Note 5 should be read in conjunction with the disclosure~~adopted under the heading "Recent Accounting ~~Standards" contained in Note 1 to our consolidated financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 30, 2017.~~

Results of Operations—For the Fiscal Quarter and Fiscal Year-to-Date Period Ended September ~~29, 2018,~~28, 2019, Compared to the Fiscal Quarter and Fiscal Year-to-Date Period Ended September ~~30, 2017~~29, 2018

The following table provides operating information as a percentage of revenues for the periods indicated:

Fiscal Quarter Ended September ~~29, 2018~~28, 2019 Compared to the Fiscal Quarter Ended September ~~30, 2017~~29, 2018

Revenues. Revenues increased by ~~$12.6~~$11.8 million, or ~~13.8%~~11.4%, to $115.7 million for the third quarter of fiscal 2019 from $103.9 million for the third quarter of fiscal ~~2018 from $91.3 million for the third quarter of fiscal 2017.~~2018. The increase in net revenue was a result of an increase in gross revenues of ~~$14.4~~$10.9 million as compared to the third quarter of fiscal ~~2017, while~~2018, and a decrease in write-offs and reserves ~~increased by $1.7~~of $0.9 million compared to the third quarter of ~~2017.~~fiscal 2018. Utilization ~~increased to~~remained flat at 76% for the third quarter of fiscal ~~2018 from 74% for~~2019 relative to the third quarter of fiscal ~~2017,~~2018, while consultant headcount grew ~~7.2% to~~8.2% from 685 at the end of the third quarter of fiscal 2018 ~~from 639~~to 741 at the end of the third quarter of fiscal ~~2017. Billable hours increased by 7.4%~~2019. Included in revenues are the effect of changes in currency exchange rates resulting in a decrease to revenue of $1.1 million for the ~~third~~fiscal quarter ended September 28, 2019, and a decrease of $0.2 million for the fiscal ~~2018 when compared to the third~~ quarter ~~of fiscal 2017.~~ended September 29, 2018.

Overall, revenues outside of the U.S. represented approximately 20% and 22% of total revenues for the third quarters of fiscal 2019 and fiscal 2018, respectively. Revenues derived from fixed-price engagements increased to 26% of total revenues for the third quarter of fiscal ~~2018, which is flat from the amount reported in the third quarter of fiscal 2017. Revenues derived from fixed-price engagements decreased to~~2019 compared with 24% of total revenues for the third quarter of fiscal ~~2018 compared with 25% of total revenues for the third quarter of fiscal 2017.~~2018. These percentages of revenue derived from fixed-price engagements depend largely on the proportion of our revenues derived from our management consulting business, which typically has a higher concentration of fixed-price service contracts.

Costs of Services (exclusive of depreciation and amortization). Costs of services (exclusive of depreciation and amortization) increased by ~~$11.3~~$10.1 million, or ~~18.1%~~13.7%, to $83.8 million for the third quarter of fiscal 2019 from $73.7 million for the third quarter of fiscal ~~2018 from $62.4 million for the third quarter of fiscal 2017.~~2018. The increase in costs of services was due primarily to an increase of ~~$1.4~~$2.3 million in employee compensation and fringe benefit

costs attributable to ~~salaries and benefits associated with~~ our increased ~~consulting~~consultant headcount, ~~an increase in forgivable loan amortization of $1.7 million,~~ an increase in incentive and retention compensation costs of ~~$4.8~~$4.6 million, an increase in forgivable loan and incentive awards amortization of $0.3 million, and an increase ~~of $2.3 million~~ in expense related to the net change in contingent consideration valuation of ~~the contingent consideration liability primarily due to improved revenue forecasts,~~$0.7 million. These increased expenses were partially offset by a decrease in stock compensation ~~expense~~ of ~~$0.3~~$0.4 million. Additionally, client reimbursable expenses increased by $2.6 million ~~during~~in the third quarter of fiscal ~~2018 as~~2019 compared to the third quarter of fiscal ~~2017. Additionally, client reimbursable expenses increased by $1.7 million in the third quarter of fiscal 2018 compared to the third quarter of fiscal 2017.~~2018. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) increased to 72.4% for the third quarter of fiscal 2019 from 70.9% for the third quarter of fiscal ~~2018 from 68.4% for the third quarter of fiscal 2017.~~2018.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by ~~$1.5~~$0.1 million, or ~~7.2%~~0.4%, to $22.4 million for the third quarter of fiscal 2019 from $22.3 million for the third quarter of fiscal ~~2018 from $20.8 million for the third quarter~~2018. Within this category of ~~fiscal 2017. A significant contributor to this increase~~expenses, there was ~~a $0.6 million increase in other operating expenses due to increased travel and entertainment costs, bad debt and professional services fees,~~ a $0.3 million increase in employee and incentive compensation, a $1.1 million increase in rent expense primarily due to additional ~~leased~~ space in our ~~London~~Boston office, ~~as well as an~~and a $0.2 million increase in commissions to our nonemployee experts ~~of $0.5 million, as a higher percentage of our revenue~~ for ~~the quarter was sourced by our nonemployee experts, as all occurred in~~ the third quarter of fiscal ~~2018~~2019 as compared to the third quarter of fiscal ~~2017.~~2018. Partially offsetting these increased expenses was a $0.4 million decrease in other operating expenses primarily due to a decrease in legal and other professional fees and a $1.0 million decrease in bad debt expense.

As a percentage of revenues, selling, general and administrative expenses decreased ~~slightly~~ to 19.4% for the third quarter of fiscal 2019 from 21.5% for the third quarter of fiscal ~~2018 from 22.8%~~2018. Commissions to our nonemployee experts decreased to 2.6% of revenues for the third quarter of fiscal ~~2017 due primarily to the aforementioned increase in selling, general and administrative expenses, offset by the effect of an increase in revenues in the third quarter of fiscal 2018 as~~2019 compared ~~with the third quarter of fiscal 2017. Commissions to our nonemployee experts increased slightly~~ to 2.7% of revenues for the third quarter of fiscal ~~2018 compared to 2.5% of revenues for the third quarter of fiscal 2017.~~2018.

Provision for Income Taxes. The income tax provision was $1.0 million and the effective tax rate was 14.2% for the third quarter of fiscal 2019 compared to $1.0 million and 20.9% for the third quarter of fiscal ~~2018 compared to $2.3 million and 41.7% for the third quarter of fiscal 2017.~~2018. The effective tax rate for the third quarter of fiscal ~~2018~~2019 was lower than the prior year primarily due to the release of tax reserves as a ~~lower statutory U.S. corporate~~result of expiration of statutes of limitation, partially

offset by a decrease in the tax benefit related to share-based compensation. The effective tax rate in the third quarter of ~~21%, an increased~~fiscal 2019 was lower than the combined federal and state statutory tax rate primarily due to the release of tax reserves as a result of expiration of statutes of limitation, the tax benefit on ~~stock-based~~share-based compensation, ~~related to the adoption of ASU 2016-09,~~ and the remeasurement of U.S deferred tax assets and liabilities based on expected fiscal ~~2018~~2019 applicable state apportionment and statutory ~~rates. This was~~rates, partially offset by ~~higher~~ non-deductible items ~~as a result of the Tax Act stemming~~resulting from ~~new~~ limitations on the deductibility of compensation paid to executive officers and the deductibility of meals and entertainment. ~~Additionally, there had been a discrete provision recorded in fiscal 2017 that was nonrecurring in fiscal 2018.~~ The effective tax rate in the third quarter of fiscal 2018 was lower than the combined federal and state statutory tax rate primarily due to the tax benefit on ~~stock-based~~share-based compensation ~~related to the adoption of ASU 2016-09~~ and the remeasurement of U.S deferred tax assets and liabilities based on expected fiscal 2018 applicable state apportionment and statutory rates. ~~The effective tax rate in~~

Net Income. Net income increased by $1.8 million to $5.7 million for the third quarter of fiscal ~~year 2017 was higher than the combined federal and state statutory tax rate due to higher executive compensation and the correction of a prior year estimate.~~

~~Net Income Attributable to CRA International, Inc.~~ ~~Net income attributable to CRA International, Inc. increased by $0.7 million to~~2019 from $3.9 million for the third quarter of fiscal ~~2018 from $3.2 million for the third quarter of fiscal 2017.~~2018. The net income per diluted share was ~~$0.46~~$0.71 per share for the third quarter of fiscal ~~2018,~~2019, compared to ~~$0.38~~$0.46 of net income per diluted share for the third quarter of fiscal ~~2017.~~2018. Weighted average diluted shares outstanding ~~increased~~decreased by approximately ~~195,000~~498,000 shares to approximately 8,050,000 shares for the third quarter of fiscal 2019 from approximately 8,548,000 shares for the third quarter of fiscal ~~2018 from approximately 8,353,000 shares for the third quarter of fiscal 2017.~~2018. The ~~increase~~decrease in ~~diluted~~ weighted average diluted shares outstanding was primarily due to the repurchase of shares of our common stock since the fiscal year-to-date period ended September 29, 2018, offset in part by the issuance or vesting of shares of restricted stock and time-vesting

restricted stock units, and the exercise of stock options, since the third quarter of fiscal ~~2017, offset in part by the repurchase of shares of our common stock since the third quarter of fiscal 2017.~~2018.

Fiscal Year-to-Date Period Ended September ~~29, 2018~~28, 2019 Compared to the Fiscal Year-to-Date Period Ended September ~~30, 2017~~29, 2018

Revenues. Revenues increased by ~~$35.9~~$23.2 million, or ~~13.1%~~7.5%, to $332.1 million for the fiscal year-to-date period ended September 28, 2019 from $308.9 million for the fiscal year-to-date period ended September 29, ~~2018 from $273.0 million for the fiscal year-to-date period ended September 30, 2017.~~2018. The increase in net revenue was a result of an increase in gross revenues of ~~$35.8~~$23.8 million as compared to the fiscal year-to-date period ended September ~~30, 2017, while~~29, 2018, offset by an increase in write-offs and reserves ~~remained flat~~of $0.6 million as compared to the fiscal year-to-date period ended September ~~30, 2017.~~29, 2018. Utilization remained flat at 76% for the fiscal year-to-date period ended September 28, 2019 relative to the fiscal year-to-date period ended September 29, 2018, while consultant headcount increased during the period. Included in revenues are the effect of changes in currency exchange rates ~~of an increase to~~resulting in a decrease in revenue of ~~$3.3 million and a decrease of $3.7~~$3.8 million for the fiscal year-to-date ~~periods~~period ended September ~~29, 2018~~28, 2019 and ~~September 30, 2017, respectively. Utilization increased to 76%~~an increase in revenue of $3.3 million for the fiscal year-to-date period ended September 29, 2018, from 74% for the fiscal year-to-date period ended September 30, 2017, while consultant headcount increased during the fiscal year-to-date period ended September 29, 2018. Billable hours increased by 8.3% for the fiscal year-to-date period ended September 29, 2018 when compared to the fiscal year-to-date period ended September 29, 2017respectively.

Overall, revenues outside of the U.S. represented approximately 21% of total revenues for each of the fiscal year-to-date periods ended September 28, 2019 and ~~20%~~September 29, 2018. Revenues derived from fixed-price engagements were 23% and 22% of total revenues for the fiscal year-to-date periods ended September ~~29, 2018~~28, 2019 and September ~~30, 2017, respectively. Revenues derived from fixed-price engagements were 22% and 25% of total revenues for the fiscal year-to-date periods ended September~~ 29, 2018, ~~and September 30, 2017,~~ respectively. These percentages of revenue derived from fixed-price engagements depend largely on the proportion of our revenues derived from our management consulting business, which typically has a higher concentration of fixed-price service contracts.

Costs of Services (exclusive of depreciation and amortization). Costs of services~~(exclusive~~ (exclusive of depreciation and amortization) increased by ~~$22.6~~$20.6 million, or ~~11.9%~~9.7%, to $233.4 million for the fiscal year-to-date period ended September 28, 2019 from $212.8 million for the fiscal year-to-date period ended September 29, ~~2018 from $190.2 million for the fiscal year-to-date period ended September 30, 2017.~~2018. The increase in costs of services was due primarily to an increase of ~~$6.3~~$5.2 million in employee compensation and fringe benefit costs ~~attributable to salaries and benefits~~ associated with our increased consulting headcount, an increase in incentive and retention compensation costs of ~~$10.2~~$7.7 million, ~~and~~ an increase in forgivable loan and incentive awards amortization of ~~$2.6 million, offset by a decrease in stock compensation expense of $1.1~~$1.7 million, and ~~a decrease~~an increase in the valuation of the contingent consideration of ~~$0.3~~$3.4 million, partially offset by a decrease in stock compensation

expense of the contingent consideration liability during the fiscal year-to-date period ended September 29, 2018 compared to an increase of $0.7 million in the valuation of the contingent consideration liability during the fiscal year-to-date period ended September 29, 2017.$1.1 million. Additionally, client reimbursable expenses increased by ~~$5.3~~$4.3 million in the fiscal year-to-date period ended September ~~29, 2018~~28, 2019 compared to the fiscal year-to-date period ended September ~~30, 2017.~~29, 2018. As a percentage of revenues, costs of services (exclusive of depreciation and amortization) ~~decreased~~increased to 70.3% for the fiscal year-to-date period ended September 28, 2019 from 68.9% for the fiscal year-to-date period ended September 29, ~~2018 from 69.7% for the fiscal year-to-date period ended September 30, 2017.~~2018.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by ~~$7.9~~$1.2 million, or ~~13.2%~~1.8%, to $68.9 million for the fiscal year-to-date period ended September 28, 2019 from $67.7 million for the fiscal year-to-date period ended September 29, ~~2018 from $59.8 million for the fiscal year-to-date period ended September 30, 2017.~~2018. The primary ~~contributors~~contributor to this increase ~~were~~was an increase in employee and incentive compensation of ~~$0.8~~$1.3 million, a ~~$2.8~~$0.7 million increase in ~~other operating expenses due to increased~~ travel and entertainment, ~~costs~~a $0.5 million increase in training and ~~professional services fees,~~marketing, a ~~$2.7~~$0.6 million increase in subscriptions and licenses, a $1.0 million increase in rent, and ~~operating costs due additional space in our New York, San Francisco, Chicago and London offices, as well as an increase in commissions to our nonemployee experts of $2.0~~a $0.2 million ~~for the fiscal year-to-date period ended September 29, 2018, as a higher percentage of our revenue for the quarter was sourced by our~~

~~nonemployee experts, all as occurred in the fiscal year to date period ended September 29, 2018 as compared to the fiscal year to date period ended September 30, 2017.~~

As a percentage of revenues, selling, general and administrative expenses increased to 22.0% for the fiscal year-to-date period ended September 29, 2018 from 21.9% for the fiscal year-to-date period ended September 30, 2017 due primarily to the increase in commissions to our nonemployee experts for the fiscal year-to-date period ended September ~~29, 2018~~30, 2019 as compared to the fiscal year-to-date period ended September ~~30, 2017.~~29, 2018, offset by a $2.0 million decrease in legal and other professional fees, a $1.0 million decrease in bad debt expense, and a $0.2 million decrease in other operating expenses.

As a percentage of revenues, selling, general and administrative expenses decreased to 20.8% for the fiscal year-to-date period ended September 28, 2019 from 21.9% for the fiscal year-to-date period ended September 29, 2018 due primarily to the increase in revenues. Commissions to our nonemployee experts ~~increased~~decreased to 2.9% of revenues for the fiscal year-to-date period ended September 28, 2019 compared to 3.0% of revenues for the fiscal year-to-date period ended September 29, 2018 ~~compared to 2.7% of revenues for the fiscal year-to-date period ended September 30, 2017~~ as less revenue was sourced by nonemployee experts in the fiscal year-to-date period ended September ~~30, 2017~~28, 2019 compared to the fiscal year-to-date period ended September 29, 2018.

~~GNU Gain on Sale of Business Assets.~~ On April 13, 2016, a buyer acquired substantially all of the business assets and assumed substantially all of the liabilities of GNU for a purchase price of $1.35 million. Of this amount, $1.1 million was received at closing, and the remaining $0.25 million was paid in full on May 3, 2017. GNU recognized a gain on sale of its business assets of $0.25 million during the second quarter of fiscal 2017, of which $0.14 million is attributed to CRA.

Provision for Income Taxes. For fiscal year-to-date period ended September 28, 2019, our income tax provision was $4.8 million, and the effective tax rate was 22.9%, compared to a provision of $5.0 million and an effective tax rate of 24.1% for the fiscal year-to-date period ended September 29, 2018, the income tax provision was $5.0 million, and the effective tax rate was 24.1%, compared to a provision of $6.1 million and an effective tax rate of 38.0% for the fiscal year-to-date period ended September 30, 2017.2018. The effective tax rate for the fiscal year-to-date period ended September ~~29, 2018~~28, 2019 was lower than the prior year primarily due to ~~a lower statutory U.S. corporate~~the release of tax ~~rate of 21% as well as an increased tax benefit on stock-based compensation related to the adoption of ASU 2016-09, partially offset by higher non-deductible items~~reserves as a result of expiration of statutes of limitation, partially offset by a decrease in the ~~Tax Act stemming~~tax benefit related to share-based compensation. The effective tax rate in the fiscal year-to-date period ended September 28, 2019 was lower than the combined federal and state statutory tax rate primarily due to the release of tax reserves as a result of expiration of statutes of limitation, the tax benefit on share-based compensation, and the remeasurement of U.S deferred tax assets and liabilities based on the expected fiscal 2019 applicable state apportionment and statutory rates, partially offset by non-deductible items resulting from ~~new~~ limitations on the deductibility of compensation paid to executive officers and the deductibility of meals and entertainment. The effective tax rate for the fiscal year-to-date period ended September 29, 2018 was lower than the combined federal and state statutory tax rate primarily due to the tax benefit on ~~stock-based~~share-based compensation, ~~related to the adoption of ASU 2016-09,~~ partially offset by non-deductible items referenced ~~above as a result of the Tax Act. The effective tax rate~~above.

Net Income. Net income increased by $0.4 million to $16.0 million for the fiscal year-to-date period ended September 30, 2017 was lower than the combined federal and state statutory tax rate primarily due to a favorable geographical mix of earnings, as well as the tax benefit related to stock-based compensation and the tax implications associated with the reversal of contingent consideration, offset partially by executive compensation and other discrete unfavorable items.

~~Net Income Attributable to CRA International, Inc.~~ ~~Net income attributable to CRA International, Inc. increased by $5.7 million to~~28, 2019 from $15.6 million for the fiscal year-to-date period ended September 29, ~~2018 from $9.9 million~~2018. The diluted net income per share was $1.94 for the fiscal year-to-date period ended September ~~30, 2017. The~~28, 2019, compared to diluted net income per share ~~was~~of $1.81 for the fiscal year-to-date period ended September 29, ~~2018, compared~~2018. Diluted weighted average shares outstanding decreased by approximately 410,000 to ~~diluted net income per share of $1.15~~approximately 8,205,000 shares for the fiscal year-to-date period ended September ~~30, 2017. Diluted weighted average shares outstanding increased by approximately 85,000 to~~28, 2019 from approximately 8,615,000 shares for the fiscal year-to-date period ended September 29, ~~2018 from approximately 8,530,000~~2018. The decrease in weighted average diluted shares ~~for~~outstanding was primarily due to the repurchase of shares of our common stock since the fiscal year-to-date period ended September ~~30, 2017. The increase~~29, 2018, offset in ~~diluted weighted average shares outstanding was primarily due to~~part by the issuance or vesting of shares of restricted stock and time-vesting restricted stock units, and the exercise of stock options, since the third quarter of fiscal ~~2017, offset in part by the repurchase of shares of our common stock since the third quarter of fiscal 2017.~~2018.

We believe that our current cash, cash equivalents, cash generated from operations, and amounts available under our bank revolving line of credit will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months.

General. InDuring the fiscal year-to-date period ended September ~~29, 2018,~~28, 2019, cash and cash equivalents decreased by ~~$42.2~~$18.2 million. We completed the period with cash and cash equivalents of ~~$11.9~~$19.8 million and working capital (defined as current assets less current liabilities) of ~~$43.6~~$8.3 million. The principal drivers of the reduction of cash ~~was~~were payment of a significant portion of our fiscal ~~2017~~2018 performance bonuses in the ~~first half~~second quarter of ~~2018, the repurchase of shares,~~2019, the funding of forgivable loans, the repurchase of shares, and capital expenditures related to the buildout ~~costs~~ of ~~our New York, San Francisco, Chicago and London offices.~~the expanded Boston office space, offset by net borrowings of $36.0 million.

Of the total cash and cash equivalents ~~of $11.9 million~~held at September ~~29, 2018, $4.8~~28, 2019, $7.8 million was held within the U.S. We have sufficient sources of liquidity in the U.S., including cash from operations and availability on our revolving line of credit, to fund U.S. activities. At September ~~29, 2018,~~28, 2019, we had outstanding borrowings on the revolving line of credit of ~~$5.0 million, which was paid on October 24, 2018.~~$36.0 million.

Sources and Uses of Cash. During the fiscal year-to-date period ended September ~~29, 2018,~~28, 2019, net cash used in operating activities was ~~$8.4~~$19.9 million. Net income was ~~$15.6~~$16.0 million for the fiscal year-to-date period ended September ~~29, 2018.~~28, 2019. The primary factor in cash used in operations was the increase in accounts receivable and unbilled services of $9.4 million and $10.2 million, respectively, due to a significant increase in consulting activity during the period. Other significant contributors to the increase in cash used in operations were a decrease in the "accounts payable, accrued expenses, and other liabilities" line item of ~~the~~our consolidated statement of cash flows of ~~$9.0 million, due to the payment~~$16.3 million. Other uses of ~~our fiscal 2017 performance bonuses during the fiscal year-to-date period ended September 29, 2018, and~~cash included an increase of ~~$14.7~~$14.6 million in ~~forgivable loans.~~unbilled receivables, a $5.7 million increase in prepaid expenses and other current assets and a $5.8 million decrease in lease liabilities. The change in forgivable loans for the period of ~~$14.7~~$18.9 million was primarily driven by ~~$26.0~~$32.3 million of forgivable loan issuances, net of repayments, offset by ~~$11.3~~$13.3 million of forgivable loan amortization. Offsetting these uses of cash was a ~~$1.4~~$3.5 million decrease in ~~the prepaid expenses and other current assets, and a $2.4 million decrease in incentive cash awards.~~accounts receivable, net. Cash provided by operations included non-cash ~~items including~~ depreciation and amortization expense of ~~$7.3~~$7.7 million, ~~and~~ share-based compensation expenses of ~~$3.7 million.~~$2.6 million, and $7.8 million in ROU amortization.

During the fiscal year-to-date period ended September ~~29, 2018,~~28, 2019, net cash used in investing activities was ~~$13.4~~$12.5 million for capital ~~expenditures.~~expenditures primarily related to the buildout of the Boston and Cambridge, UK office space.

During the fiscal year-to-date period ended September ~~29, 2018,~~28, 2019, net cash ~~used in~~provided by financing activities was ~~$19.5~~$14.8 million, primarily as a result of borrowings under the ~~revolving~~ line of credit of ~~$30.2~~$36.0 million, net of repayments, and ~~$1.4~~$2.0 million received upon the issuance of shares of common stock related to the exercise of stock options. Offsetting these increases in cash were the tax withholding payments reimbursed by restricted shares of ~~$1.8~~$0.4 million, payment of ~~$4.2~~$4.7 million of cash dividends to shareholders, ~~repayment of $24.6 million under the revolving line of credit,~~ and ~~$20.4~~$18.1 million of repurchases of common stock.

We are party to a credit agreement that provides us with a $125.0 million revolving credit facility and a $15.0 million sublimit for the issuance of letters of credit. We may use the proceeds of the revolving credit facility to provide working capital and for other general corporate purposes. Generally, we may repay any borrowings under the revolving credit facility at any time, but must repay all borrowings no later than October 24, 2022. There was ~~$5.0~~$36.0 million in outstanding borrowings under this

revolving line of credit as of September ~~29, 2018. These borrowings were repaid during the month~~28, 2019.

The amount available under this revolving line of credit is reduced by certain letters of credit outstanding, which amounted to ~~$3.9~~$4.4 million as of September ~~29, 2018.~~28, 2019. Borrowings under the revolving credit facility bear interest at a rate per annum, at our election, of either (i) the adjusted base rate, as defined in the credit agreement, plus an applicable margin, which varies between 0.25% and 1.25% depending on our total leverage ratio as determined under the credit agreement, or (ii) the adjusted eurocurrency rate, as defined in the credit agreement, plus an applicable margin, which varies between 1.25% and 2.25% depending on our total leverage ratio. We are required to pay a fee on the unused portion of the revolving credit facility at a rate per annum that varies between 0.20% and 0.35% depending on our total leverage ratio. Borrowings under the revolving credit facility are secured by 100% of the stock of certain of our U.S. subsidiaries and 65% of the stock of certain of our foreign subsidiaries, which represent approximately ~~$28.6~~$30.7 million in net assets as of September ~~29, 2018.~~28, 2019.

Under the credit agreement, we must comply with various financial and non-financial covenants. Compliance with these financial covenants is tested on a fiscal quarterly basis. Any indebtedness outstanding under the revolving credit facility may become immediately due and payable upon the occurrence of stated events of default, including our failure to pay principal, interest or fees or a violation of any financial covenant. The financial covenants require us to maintain an adjusted consolidated EBITDA to consolidated interest expense ratio of more than 2.5:1.0 and to comply with a consolidated debt to adjusted consolidated EBITDA ratio of not more than 3.0:1.0. The non-financial covenant restrictions of the senior credit agreement include, but are not limited to, our ability to incur additional indebtedness, engage in acquisitions or dispositions, and enter into business combinations.

In order to attract and retain highly skilled professionals, we may issue forgivable loans or term loans to employees and non-employee experts. A portion of these loans is collateralized by key ~~man~~person life insurance. The forgivable loans have terms that are generally between three and eight years. The principal amount of forgivable loans and accrued interest is forgiven by us over the term of the loans, so long as the employee or non-employee expert continues employment or affiliation with us and complies with certain contractual requirements. 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.

We have entered into compensation arrangements for the payment of incentive performance awards to certain of our employees and non-employee experts ~~and employees~~ if specific performance targets are met. The amounts of the awards to be paid under these compensation arrangements could fluctuate depending on future performance through the respective measurement periods. ~~Changes~~Increases in ~~the~~ estimated ~~award~~awards are expensed prospectively over the remaining service period. Decreases in estimated awards are recorded in the period incurred. We believe that we will have sufficient funds to satisfy any obligations related to the incentive performance awards. We expect to fund these payments, if any, from existing cash resources, cash generated from operations, or borrowings on our existing revolving credit facility.

As part of our business, we regularly evaluate opportunities to acquire other consulting firms, practices or groups or other businesses. In recent years, we have typically paid for acquisitions with cash, or a combination of cash and our common stock, and we may continue to do so in the future. To pay for an acquisition, we may use cash on hand, cash generated from our operations, borrowings

under our revolving credit facility, or we may pursue other forms of financing. Our ability to secure short-term and long-term debt or equity financing in the future ~~including our ability to refinance our current senior loan agreement,~~ will depend on several factors,

including our future profitability, the levels of our debt and equity, restrictions under our existing revolving line of credit with our bank, and the overall credit and equity market environments. ~~See Note 6 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further details of the C1 acquisition in 2017.~~

~~On May 3, 2017 and~~In February ~~15, 2018, we announced~~2019, our Board of Directors ~~approved~~authorized an expansion to our existing share repurchase ~~programs~~program, authorizing the purchase of ~~up to~~an additional $20.0 million ~~and $20.0 million, respectively,~~ of our common stock. We may repurchase shares under ~~these programs~~this program in open market purchases (including through any Rule 10b5-1 plan adopted by us) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations. During the fiscal quarter and fiscal year-to-date period ended September 28, 2019, we repurchased and retired 157,402 shares and 421,112 shares, respectively, under our share repurchase program at an average price per share of $41.69 and $42.94, respectively. During the fiscal quarter and fiscal year-to-date period ended September 29, 2018, we repurchased and retired 215,585 shares and 378,477 shares, respectively, under ~~these~~our share repurchase ~~programs~~program at an average price per share of ~~$53.90. During the fiscal year-to-date period ended September 30, 2017, we repurchased~~$55.99 and ~~retired 389,079 shares under these share repurchase programs at an average price per share of $34.63.~~$53.90, respectively. As of September ~~29, 2018, there was~~28, 2019, we had approximately ~~$9.1~~$3.5 million available for future repurchases under ~~these programs.~~our share repurchase program. We ~~will~~plan to finance ~~these programs~~future repurchases with available cash, cash from future operations and funds from our existing revolving credit facility. We expect to continue ~~repurchasing~~to repurchase shares under ~~these programs.~~our share repurchase program.

We anticipate paying regular quarterly dividends each year. These dividends are anticipated to be funded through cash flow from operations, available cash on hand, and/or borrowings under our revolving credit facility. Although we anticipate paying regular quarterly dividends on our common stock for the foreseeable future, the declaration of any future dividends is subject to the discretion of our ~~board~~Board of ~~directors.~~Directors. During the fiscal quarter and fiscal year-to-date period ended September 28, 2019, we paid dividends of $1.5 million and $4.8 million, respectively. During the fiscal quarter and fiscal year-to-date period ended September 29, 2018, we paid dividends of $1.4 million and $4.3 million respectively, to our shareholders.

To date, inflation has not had a material impact on our financial results. There can be no assurance, however, that inflation will not adversely affect our financial results in the future.

We anticipate that our future capital and liquidity needs will principally consist of funds required for:

The hiring of individuals to replenish and expand our employee base is an essential part of our business operations and has historically been funded principally from ~~operations.~~operations and short-term borrowings. Many of the other above activities are discretionary in nature. For example, capital expenditures can be deferred, acquisitions can be forgone, and share repurchase programs and regular dividends can be suspended. As such, our operating model provides flexibility with respect to the deployment of cash flow from operations. Given this flexibility, we believe that our cash flows from operations, supplemented by cash on hand and borrowings under our bank credit facility (as necessary), will provide adequate cash to fund our long-term cash needs from normal operations for at least the next 12twelve months.

Our conclusion that we will be able to fund our cash requirements by using existing capital resources and cash generated from operations does not take into account the impact of any future acquisition transactions or any unexpected significant changes in the number of employees or other expenditures that are currently not contemplated. The anticipated cash needs of our business could change significantly if we pursue and complete additional business acquisitions, if our business plans change, if economic conditions change from those currently prevailing or from those now anticipated, or if other unexpected circumstances arise that have a material effect on the cash flow or profitability of our business. Any of these events or circumstances, including any new business opportunities, could involve significant additional funding needs in excess of the identified currently available sources and could require us to raise additional debt or equity funding to meet those needs on terms that may be less favorable compared to our current sources of capital. Our ability to raise additional capital, if necessary, is subject to a variety of factors that we cannot predict with certainty, including:

On August 16, 2017, we entered into a second amendment to our lease with BP Hancock LLC, as landlord, for our office space located at 200 Clarendon Street, Boston, Massachusetts. Under the amendment, we will lease 28,757 square feet of office space on the building's 11^th floor, in addition to the 67,659 square feet of office space we currently lease on the building's 9th, 10th and 25th floors. The landlord expects to deliver possession of the new space on or before April 1, 2019. If we do not have possession of the new space by April 1, 2020 and certain other conditions are not satisfied, the amendment gives us a right to terminate the lease with respect to the space on the 11th floor. The amendment also extends the base term of the lease for an additional five years ending on July 31, 2030. Beginning six months after the landlord delivers possession of the new space on the 11^th floor to us or, if earlier, when we commence operations in the new space, the annual base rent for the new space through the end of the lease's base term, exclusive of customary operating costs and expenses, will be approximately $1.9 million per year, subject to annual increases of approximately 1.7% per year. Beginning on August 1, 2025, the annual fixed rent for the 9th and 10th floors will be payable at the same rate per square foot then in effect for the 11th floor. The amendment includes a tenant improvement allowance of approximately $2.9 million. Subject to certain conditions, the lease will be

~~extendable for two additional five-year periods. The amendment also gives us the right to terminate our lease of 10,057 square feet of office space on the building's 25~~^th ~~floor effective as of the date on which we begin paying rent for the 11th floor. On May 24, 2018, we notified the landlord of our intent to terminate the lease of the 25~~^th ~~floor effective as of the rent commencement date of the second amendment, which is expected to occur on or before October 1, 2019.~~

~~On June 27, 2018, we entered into a third amendment to our lease with BP Hancock LLC for an additional 14,097 square feet of office space on the 12~~^th ~~floor of our Boston office building. The landlord expects to deliver possession of the new space on or before May 1, 2019. If we do not have possession of the new space on the 12~~^th floor by May 1, 2020 and certain other conditions are not satisfied, the amendment gives us a right to terminate the lease with respect to the new space. The third amendment is coterminous with the lease for the 9^th~~, 10~~^th ~~and 11~~^th ~~floors, ending on July 31, 2030. Beginning six months after the landlord delivers possession of the new space on the 12~~^th floor to us or, if earlier, when we commence operations in the new space, the annual base rent for the new space through the end of the lease's base term, exclusive of customary operating costs and expenses, will be approximately $1.0 million per year, subject to annual increases of approximately 1.6% per year. The amendment includes a tenant improvement allowance of approximately $1.2 million. The amendment also gives us a right of first offer to rent certain additional office space in the building if it becomes available.

Important factors that could cause our actual results to differ materially from the forward-looking statements we make in this Quarterly Report on Form 10-Q, as well as a description of material risks we face, are set forth under the heading "Risk Factors" included in Part I—Item 1A of ~~our Annual Report on~~the 2018 Form ~~10-K for the fiscal year ended December 30, 2017 filed with the SEC on March 12, 2018.~~10-K. If any of these risks, or any risks not presently known to us or that we currently believe are not significant, develops into an actual event, then our business, financial condition, and results of operations could be adversely affected.

For information regarding our exposure to certain market risks see "Item 7A. Quantitative and Qualitative Disclosures about Market Risk," in ~~our Annual Report on~~the 2018 Form ~~10-K for the fiscal year ended December 30, 2017 filed with the SEC on March 12, 2018.~~10-K.

Under the supervision and with the participation of our management, including our President and Chief Executive Officer and our Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. This is done in order to ensure that information we are required to disclose in the reports that are filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Based upon that evaluation, our President and Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of September ~~29, 2018,~~28, 2019, due to the material weaknesses in internal control over financial reporting related to the inadequate design ~~and~~or execution of controls over non-routine technical accounting matters and information technology general controls ("ITGC") related to program changes to our accounting software. In addition, despite the significant efforts made during the fiscal year ended December 30, 2017 to remediate our previously identified material weaknesses, the material weakness in internal controls over ~~ITGC prevented us from~~

~~remediating~~ the ~~material weaknesses in~~completeness and accuracy of: 1) our contingent consideration and incentive-based compensation liabilities, including our internal controls over ~~financial reporting~~revenue forecasts and certain other assumptions used in ~~respect~~the computation of these liabilities; 2) revenue and related ~~reserve processes~~reserves; 3) certain accounts payable and ~~compensation-related processes~~expense accruals; and 4) the evaluation of certain technical tax matters described in Item 9A of ~~our Annual Report on~~the 2018 Form ~~10-K for the fiscal year ended December 30, 2017.~~10-K.

Notwithstanding these material weaknesses, management has concluded that the condensed consolidated financial statements included in this ~~Quarterly Report~~quarterly report on Form 10-Q present fairly, in all material aspects, our financial position at the end of, and the results of operations and cash flows for, the periods presented in conformity with accounting principles generally accepted in the United States.

Under the supervision and with the participation of our management, including our President and Chief Executive Officer and Chief Financial Officer, we evaluated whether there were any changes in our internal control over financial reporting during the third quarter of fiscal ~~year-to-date period ended September 29, 2018.~~2019. Except for the ongoing remediation of the material weaknesses in internal controls over financial reporting noted above pursuant to the ~~plans~~plan described in Item 9A of ~~our Annual Reports on~~the 2018 Form 10-K, ~~for the fiscal years ended December 31, 2016 and December 30, 2017,~~ there were no changes in our internal control over financial reporting identified in connection with the above evaluation that occurred during the third quarter of fiscal ~~2018, except those disclosed below,~~2019, that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

~~On December 31, 2017, we implemented ASC 606,~~~~Revenue from Contracts with Customers~~. Although the new revenue standard did not have a material impact on our ongoing net income, we did implement changes to our processes related to revenue recognition and the control activities within them. These included the development of new policies based on the five-step model provided in the new revenue standard, new training, ongoing contract review requirements, and gathering of information provided for disclosures.

We are committed to remediating the control deficiencies that gave rise to the material weaknesses described above. Management is responsible for implementing changes and improvements to our internal control over financial reporting and for remediating the control deficiencies that gave rise to these material weaknesses. During fiscal ~~2018,~~2019, we ~~have enhanced~~are enhancing our system of internal controls over financial reporting with the following actions:

The effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subject to various inherent limitations, including judgments used in decision making,

assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover, projections of any evaluation of effectiveness ~~with respect~~ to future periods are subject to the risk that controls may become inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time. Because of these limitations, there can be no assurance that any system of disclosure controls and procedures or internal control over financial reporting will be successful in preventing all errors or fraud or in making all material information known in a timely manner to the appropriate levels of management.

There has been no material change in any risk factors previously disclosed in ~~our Annual Report~~ on the 2018 Form ~~10-K for the fiscal year ended December 30, 2017 filed with the SEC on March 12, 2018.~~10-K. See "Risk Factors" in ~~our Annual Report on~~the 2018 Form 10-K ~~for the fiscal year ended December 30, 2017~~ for a complete description of the material risks we face.

(c) The following table provides information about our repurchases of shares of our common stock during the fiscal quarter ended September ~~29, 2018.~~28, 2019. During that period, we did not act in concert with any affiliate or any other person to acquire any of our common stock and, accordingly, we do not believe that purchases by any such affiliate or other person (if any) are reportable in the following table. For purposes of this table, we have divided the fiscal quarter into three periods of four weeks, four weeks, and five weeks, respectively, to coincide with our reporting periods during the third quarter of fiscal ~~2018.~~2019.

Period
(a)
Total Number of
Shares
Purchased(1) (b)
Average Price
Paid per Share(1) (c)
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs (d)
Maximum Number
(or Approximate
Dollar Value) of
Shares that May Yet
Be Purchased
Under the Plans
or Programs(1)
July 1, 2018 to July 28, 2018
— — — $ 9,093,724
July 29, 2018 to August 25, 2018
— — — $ 9,093,724
August 26, 2018 to September 29, 2018
— — — $ 9,093,724

Period		(b) Average Price Paid per Share			(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs

June 30, 2019 to July 27, 2019	—		—	—	$	10,075,100
July 28, 2019 to August 24, 2019	157,402	$	41.69	157,402	$	10,075,100
August 25, 2019 to September 28, 2019	—		—	—	$	3,512,496

~~(1)~~

On ~~May 3, 2017 and~~ February ~~15, 2018, we announced that~~13, 2019, our Board of Directors ~~had approved~~authorized an expansion to our existing share repurchase ~~programs~~program of ~~up to~~an additional $20.0 million ~~and $20.0 million, respectively,~~of outstanding shares of our common stock. We may repurchase shares under ~~any of these programs~~this program in open market purchases (including through any Rule 10b5-1 plan adopted by us) or in privately negotiated transactions in accordance with applicable insider trading and other securities laws and regulations. During the four weeks ended August 24, 2019, we repurchased and retired 157,402 shares under this program at an average price per share of $41.69. Approximately ~~$9.1~~$3.5 million was available for future repurchases under ~~these programs~~this program as of September ~~29, 2018.~~28, 2019. We expect to continue to repurchase shares under ~~these programs.~~

this program.

		Description

10.1	*	~~The~~Third Amendment to Lease dated September 9, 2019 by and between CRA International, Inc. ~~Amended~~ and ~~Restated Equity Incentive Plan, as amended (filed as Annex A to CRA's definitive proxy statement filed on April 27, 2018 and incorporated herein by reference)~~1411 IC-SIC Property LLC.
31.1		Rule 13a-14(a)/15d-14(a) certification of principal executive officer
31.2		Rule 13a-14(a)/15d-14(a) certification of principal financial officer
32.1		Section 1350 certification
101		The following financial statements from CRA International, Inc.'s Quarterly Report on Form 10-Q for the fiscal quarter ended September ~~29, 2018,~~28, 2019, formatted in XBRL (eXtensible Business Reporting Language), as follows: (i) Condensed Consolidated Income Statements (unaudited) for the fiscal quarters and the fiscal ~~year-to-date~~year to date periods ended September ~~29, 2018~~28, 2019 and September ~~30, 2017,~~29, 2018, (ii) Condensed Consolidated Statements of Comprehensive Income (unaudited) for the fiscal quarters ended September 28, 2019 and ~~the fiscal year-to-date periods ended~~ September 29, 2018, ~~and September 30, 2017,~~ (iii) Condensed Consolidated Balance Sheets (unaudited) as at September ~~29, 2018~~28, 2019 and December 30, ~~2017,~~2018, (iv) Condensed Consolidated Statements of Cash Flows (unaudited) for the fiscal ~~year-to-date periods~~quarters ended September ~~29, 2018~~28, 2019 and September ~~30, 2017,~~29, 2018, (v) Condensed Consolidated Statement of Shareholders' Equity (unaudited) for the fiscal ~~year-to-date period~~quarters ended September 28, 2019 and September 29, 2018, and (vi) Notes to Condensed Consolidated Financial Statements (Unaudited).

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September ~~29, 2018~~28, 2019
Oror
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


Massachusetts		04-2372210
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
200 Clarendon Street, Boston, MA		02116-5092
(Address of principal executive offices)		(Zip Code)

Title of Each Class		Trading Symbol		Name of Each Exchange on Which Registered

Common Stock, no par value		CRAI		Nasdaq Global Select Market


	Large accelerated filer o		Accelerated filer ý		Non-accelerated filer o		Smaller reporting company o Emerging growth company o

Class		Outstanding at October ~~26, 2018~~25, 2019

Common Stock, no par value per share		~~8,101,143~~7,739,409 shares

	September 29, 2018						September 28, 2019

	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs		Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Money market funds	$	29	$	—	$	—
Money market mutual funds							$	149	$	—	$	—

Total Assets	$	29	$	—	$	—	$	149	$	—	$	—



Liabilities:
Contingent consideration liability	$	—	$	—	$	5,564	$	—	$	—	$	9,632

Total Liabilities	$	—	$	—	$	5,564	$	—	$	—	$	9,632

	September 29, 2018			December 30, 2017			September 28, 2019		December 29, 2018

Beginning balance	$	5,137		$	549		$	6,197	$	5,137
Acquisitions		—			2,357
Remeasurement of acquisition-related contingent consideration		(281	)		1,155			1,868		(244	)
Accretion		708			1,328			1,567		1,304
Payments		—			(299	)
Effect of foreign currency translation		—			47

Ending balance	$	5,564		$	5,137		$	9,632	$	6,197

	September 29, 2018			December 30, 2017			September 28, 2019			December 29, 2018

Beginning balance	$	28,628		$	33,962		$	40,294		$	28,628
Advances		29,353			11,672			33,404			30,572
Repayments		(3,399	)		(2,135	)		(1,106	)		(3,396	)
Reclassification to other assets		—			(1,100	)
Reclassification from accrued expenses								(1,121	)		—
Amortization		(11,308	)		(14,155	)		(13,313	)		(15,329	)
Effects of foreign currency translation		(88	)		384			(291	)		(181	)

Ending balance	$	43,186		$	28,628		$	57,867		$	40,294



Current portion of forgivable loans	$	6,400		$	5,540		$	8,821		$	6,104



Non-current portion of forgivable loans	$	36,786		$	23,088		$	49,046		$	34,190

	Goodwill, gross			Accumulated impairment losses			Goodwill, net			Goodwill, gross			Accumulated impairment losses			Goodwill, net

Balance at December 30, 2017	$	165,417		$	(76,417	)	$	89,000
Balance at December 29, 2018										$	164,625		$	(76,417	)	$	88,208
Effects of foreign currency translation		(438	)		—			(438	)		(395	)		—			(395	)

Balance at September 29, 2018	$	164,979		$	(76,417	)	$	88,562
Balance at September 28, 2019										$	164,230		$	(76,417	)	$	87,813

	September 29, 2018		December 30, 2017		September 28, 2019		December 29, 2018

Non-competition agreements, net of accumulated amortization of $528 and $464, respectively	$	196	$	260
Customer relationships, net of accumulated amortization of $4,126 and $3,172, respectively		7,993		8,948
Non-competition agreements, net of accumulated amortization of $190 and $544, respectively					$	134	$	180
Customer relationships, net of accumulated amortization of $5,436 and $4,454, respectively						6,684		7,666

Total, net of accumulated amortization of $4,654 and $3,636, respectively	$	8,189	$	9,208
Total, net of accumulated amortization of $5,626 and $4,998, respectively					$	6,818	$	7,846

	September 29, 2018		December 30, 2017		September 28, 2019		December 29, 2018

Compensation and related expenses	$	67,616	$	80,105	$	75,319	$	90,711
Income taxes payable		661		153		702		514
Commissions due to senior consultants						8,752		9,624
Direct project accruals						1,882		684
Accrued leasehold improvements						2,321		132
Other		13,621		14,315		5,581		6,568

Total	$	81,898	$	94,573	$	94,557	$	108,233

	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended				Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended

Type of Contract	September 29, 2018		September 30, 2017(1)		September 29, 2018		September 30, 2017(1)		September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Consulting services revenues
Consulting services revenues:
Fixed Price	$	25,047	$	23,330	$	66,440	$	70,235	$	30,057	$	25,047	$	76,622	$	66,440
Time-and-materials		78,824		67,995		242,445		202,824		85,629		78,824		255,486		242,445

Total	$	103,871	$	91,325	$	308,885	$	273,059	$	115,686	$	103,871	$	332,108	$	308,885

	Fiscal Quarter Ended				Fiscal Year-to-Date Period Ended

Geographic Breakdown	September 29, 2018		September 30, 2017(1)		September 29, 2018		September 30, 2017(1)
Consulting services revenues
United States	$	80,721	$	70,910	$	244,878	$	217,609
United Kingdom		17,253		13,572		47,317		40,444
Other		5,897		6,843		16,690		15,006

Total	$	103,871	$	91,325	$	308,885	$	273,059

	Contract Liability

			Fiscal Year Ended
	Fiscal Year-to-Date Period Ended		Fiscal Year Ended
	Fiscal Year-to-Date Period Ended		December 29, 2018
	September 28, 2019		December 29, 2018
Balance at the beginning of the period	$	5,453	$	3,287
Balance at the end of the period	$	2,502	$	5,453


Revenue recognized in the period from:	Fiscal Quarter Ended September 29, 2018		Fiscal Year-to- Date Period Ended September 29, 2018
					Fiscal Quarter Ended
					Fiscal Quarter Ended		Fiscal Year-to-Date Period Ended
					September 28, 2019		Fiscal Year-to-Date Period Ended
					September 28, 2019		September 28, 2019
Amounts included in contract liabilities at the beginning of the period	$	1,505	$	6,022	$	2,405	$	4,900
Performance obligations satisfied in previous periods	$	3,442	$	8,834	$	3,395	$	3,606

	Fiscal Quarter Ended		Fiscal Year-to-Date Period Ended

	September 28, 2019		September 28, 2019
Operating lease cost	$	4,052	$	11,276
Short-term lease cost		106		295
Variable lease cost		1,181		3,150

Total lease cost	$	5,339	$	14,721

		Fiscal Year-to-Date Period Ended

		September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$12,053
Right-of-use assets obtained in exchange for lease obligations
Operating leases		$37,298

		September 28, 2019

Assets:
Operating lease right-of-use assets		$110,999



Liabilities:
Current portion of lease liabilities		$10,598
Non-current portion of lease liabilities		126,869

Total operating lease liabilities		$137,467



Weighted average remaining lease term—operating leases		9.8 years
Weighted average discount rate—operating leases		3.7%

Fiscal Year	Operating Lease Commitments

2019 (excluding the nine months ended September 28, 2019)	$	2,505
2020		16,883
2021		16,802
2022		16,907
2023		17,024
Thereafter		96,285

Total lease payments		166,406
Less: imputed interest		(28,939	)

Total	$	137,467

	As previously reported		As revised

Deferred compensation and other non-current liabilities	$	20,656	$	11,526
Deferred rent and facility-related non-current liabilities	$	11,526	$	20,656

	As previously reported		As revised

Allowance netted against accounts receivable	$	7,378	$	5,252
Accounts receivable, net of allowance	$	79,803	$	79,803
Allowance netted against unbilled service	$	1,746	$	865
Unbilled services, net of allowance	$	33,530	$	33,530

	As previously reported			As revised

Accounts receivable allowance	$	3,166		$	1,746
Accounts receivable	$	(11,600	)	$	(10,180	)
Net cash provided by operating activities	$	7,791		$	7,791

	As previously reported			As revised

Accounts receivable allowances	$	884		$	233
Accounts receivable	$	(9,391	)	$	(8,939	)
Unbilled services	$	(10,175	)	$	(9,976	)
Net cash used in operating activities	$	(8,394	)	$	(8,394	)

Period				(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(1)

July 1, 2018 to July 28, 2018	—	—	—	$	9,093,724
July 29, 2018 to August 25, 2018	—	—	—	$	9,093,724
August 26, 2018 to September 29, 2018	—	—	—	$	9,093,724


	CRA INTERNATIONAL, INC.
Date: ~~November 1, 2018~~October 31, 2019	By:	/s/ PAUL A. MALEH Paul A. Maleh President and Chief Executive Officer
Date: ~~November 1, 2018~~October 31, 2019	By:	/s/ CHAD M. HOLMES Chad M. Holmes Chief Financial Officer, Executive Vice President and Treasurer
Date: ~~November 1, 2018~~October 31, 2019	~~By:~~By	/s/ DOUGLAS C. MILLER Douglas C. Miller Vice President and Chief Accounting Officer