Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | Apr. 26, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | CRA INTERNATIONAL, INC. | |
Entity Central Index Key | 0001053706 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,040,916 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATED INCOME STATEMENTS (unaudited) | ||
Revenues | $ 105,849 | $ 99,476 |
Costs of services (exclusive of depreciation and amortization) | 73,635 | 69,391 |
Selling, general and administrative expenses | 22,743 | 21,650 |
Depreciation and amortization | 2,616 | 2,231 |
Income from operations | 6,855 | 6,204 |
Interest expense, net | (11) | (37) |
Other expense, net | (744) | (241) |
Income before provision for income taxes | 6,100 | 5,926 |
Provision for income taxes | 1,435 | 1,040 |
Net income | $ 4,665 | $ 4,886 |
Net income per share : | ||
Basic (in dollars per share) | $ 0.58 | $ 0.59 |
Diluted (in dollars per share) | $ 0.56 | $ 0.57 |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 8,015 | 8,285 |
Diluted (in shares) | 8,346 | 8,580 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | ||
Net income | $ 4,665 | $ 4,886 |
Other comprehensive income | ||
Foreign currency translation adjustments | 712 | 1,318 |
Comprehensive income | $ 5,377 | $ 6,204 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 14,958 | $ 38,028 |
Accounts receivable, net of allowances of $3,820 at March 30, 2019 and $3,764 at December 29, 2018 | 89,268 | 94,525 |
Unbilled services, net of allowances of $632 at March 30, 2019 and $415 at December 29, 2018 | 44,963 | 36,060 |
Prepaid expenses and other current assets | 7,952 | 6,423 |
Forgivable loans | 9,632 | 6,104 |
Total current assets | 166,773 | 181,140 |
Property and equipment, net | 48,409 | 48,088 |
Goodwill | 88,508 | 88,208 |
Intangible assets, net | 7,503 | 7,846 |
Right-of-Use Assets | 81,480 | |
Deferred income taxes | 9,304 | 9,330 |
Forgivable loans, net of current portion | 46,770 | 34,190 |
Other assets | 3,028 | 2,044 |
Total assets | 451,775 | 370,846 |
Current liabilities: | ||
Accounts payable | 22,530 | 21,938 |
Accrued expenses | 72,280 | 108,233 |
Deferred revenue and other liabilities | 5,115 | 6,866 |
Current portion of lease liabilities | 9,558 | |
Current portion of deferred rent | 1,810 | |
Current portion of deferred compensation | 941 | 3,650 |
Revolving line of credit | 39,000 | |
Total current liabilities | 149,424 | 142,497 |
Non-current liabilities: | ||
Deferred compensation and other non-current liabilities | 7,847 | 7,957 |
Deferred rent and facility-related non-current liabilities | 1,364 | 23,618 |
Non-current portion of lease liabilities | 94,939 | |
Deferred income taxes | 311 | 302 |
Total non-current liabilities | 104,461 | 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; 8,005,898 and 8,010,480 shares issued and outstanding at March 30, 2019 and December 29, 2018, respectively | 20,537 | 22,837 |
Retained earnings | 189,235 | 186,229 |
Accumulated other comprehensive loss | (11,882) | (12,594) |
Total shareholders' equity | 197,890 | 196,472 |
Total liabilities and shareholders' equity | $ 451,775 | $ 370,846 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||
Allowance for accounts receivable (in dollars) | $ 3,820 | $ 3,764 |
Allowance for unbilled services (in dollars) | $ 632 | $ 415 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value ( in dollars per share ) | $ 0 | $ 0 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 8,005,898 | 8,010,480 |
Common stock, shares outstanding | 8,005,898 | 8,010,480 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 4,665 | $ 4,886 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 2,611 | 2,223 |
Loss on disposal of property and equipment | 5 | |
Deferred rent | 35 | 1,896 |
Right-of-use asset amortization | 2,209 | |
Deferred income taxes | 21 | (68) |
Share-based compensation expenses | 911 | 1,292 |
Accounts receivable allowances | 48 | 452 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,742 | 2,958 |
Unbilled services | (8,666) | (8,672) |
Prepaid expenses and other current assets, and other assets | (2,162) | 972 |
Forgivable loans | (16,957) | (16,045) |
Incentive cash awards | 1,214 | 684 |
Accounts payable, accrued expenses, and other liabilities | (42,489) | (31,117) |
Lease liabilities | (3,754) | |
Net cash used in operating activities | (56,567) | (40,539) |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (774) | (3,248) |
Net cash used in investing activities | (774) | (3,248) |
FINANCING ACTIVITIES: | ||
Issuance of common stock, principally stock options exercises | 1,526 | 535 |
Borrowings under revolving line of credit | 39,000 | 10,000 |
Tax withholding payments reimbursed by shares | (388) | (1,783) |
Cash paid on dividend equivalents | (35) | (98) |
Cash dividends paid to shareholders | (1,616) | (1,423) |
Repurchases of common stock | (4,349) | (7,230) |
Net cash provided by financing activities | 34,138 | 1 |
Effect of foreign exchange rates on cash and cash equivalents | 133 | 603 |
Net decrease in cash and cash equivalents | (23,070) | (43,183) |
Cash and cash equivalents at beginning of period | 38,028 | 54,035 |
Cash and cash equivalents at end of period | 14,958 | 10,852 |
Noncash investing and financing activities: | ||
Repurchases of common stock payable | 1,095 | |
Purchases of property and equipment not yet paid for | 1,906 | 3,923 |
Asset retirement obligations | 223 | |
Right-of-use assets obtained in exchange for lease obligations | 713 | |
Right-of-use assets related to the adoption of ASC 842 | 82,329 | |
Supplemental cash flow information: | ||
Cash paid for taxes | 298 | 212 |
Cash paid for interest | $ 59 | $ 60 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | CRA International, Inc. Shareholders' Equity | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total |
BALANCE at Dec. 30, 2017 | $ 206,908 | $ 47,414 | $ 169,390 | $ (9,896) | $ 321 | $ 207,229 |
BALANCE (in shares) at Dec. 30, 2017 | 8,297,172 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Cumulative effect of a change in accounting principle | 366 | 366 | 366 | |||
BALANCE at Dec. 31, 2017 | 206,908 | $ 47,414 | 169,390 | (9,896) | 321 | 207,229 |
BALANCE (in shares) at Dec. 31, 2017 | 8,297,172 | |||||
BALANCE at Dec. 30, 2017 | 206,908 | $ 47,414 | 169,390 | (9,896) | 321 | 207,229 |
BALANCE (in shares) at Dec. 30, 2017 | 8,297,172 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 4,886 | 4,886 | 4,886 | |||
Foreign currency translation adjustment | 1,318 | 1,318 | 1,318 | |||
Exercise of stock options | 535 | $ 535 | 535 | |||
Exercise of stock options (in shares) | 24,688 | |||||
Share-based compensation expense | 1,292 | $ 1,292 | 1,292 | |||
Restricted shares vestings (in shares) | 97,722 | |||||
Redemption of vested employee restricted shares for tax withholding | (1,783) | $ (1,783) | (1,783) | |||
Redemption of vested employee restricted shares for tax withholding (in shares) | (35,287) | |||||
Shares repurchased | (8,057) | $ (8,057) | (8,057) | |||
Shares repurchased (in shares) | (162,892) | |||||
Accrued dividends on unvested shares | 10 | 10 | 10 | |||
Cash paid on dividend equivalents | (98) | (98) | (98) | |||
Cash dividends paid to shareholders | (1,423) | (1,423) | (1,423) | |||
BALANCE at Mar. 31, 2018 | 203,954 | $ 39,401 | 173,131 | (8,578) | 321 | 204,275 |
BALANCE (in shares) at Mar. 31, 2018 | 8,221,403 | |||||
Increase (Decrease) in Shareholders' Equity | ||||||
Balance, as adjusted | $ 207,274 | $ 47,414 | 169,756 | (9,896) | $ 321 | 207,595 |
BALANCE at Dec. 29, 2018 | $ 22,837 | 186,229 | (12,594) | $ 196,472 | ||
BALANCE (in shares) at Dec. 29, 2018 | 8,010,480 | 8,010,480 | ||||
Increase (Decrease) in Shareholders' Equity | ||||||
Net income | 4,665 | $ 4,665 | ||||
Foreign currency translation adjustment | 712 | 712 | ||||
Exercise of stock options | $ 1,526 | 1,526 | ||||
Exercise of stock options (in shares) | 64,700 | |||||
Share-based compensation expense | $ 911 | 911 | ||||
Restricted shares vestings (in shares) | 25,484 | |||||
Redemption of vested employee restricted shares for tax withholding | $ (388) | (388) | ||||
Redemption of vested employee restricted shares for tax withholding (in shares) | (8,157) | |||||
Shares repurchased | $ (4,349) | (4,349) | ||||
Shares repurchased (in shares) | (86,609) | |||||
Accrued dividends on unvested shares | (8) | (8) | ||||
Cash paid on dividend equivalents | (35) | (35) | ||||
Cash dividends paid to shareholders | (1,616) | (1,616) | ||||
BALANCE at Mar. 30, 2019 | $ 20,537 | $ 189,235 | $ (11,882) | $ 197,890 | ||
BALANCE (in shares) at Mar. 30, 2019 | 8,005,898 | 8,005,898 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (unaudited) | ||
Cash dividends paid to shareholders (in dollars per share) | $ (0.20) | $ (0.17) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Description of Business 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: litigation, regulatory, and financial consulting and management consulting. CRA operates in one business segment. CRA operates its business under its registered trade name, Charles River Associates. Principles of Consolidation 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. Basis of Presentation The accompanying unaudited condensed consolidated financial statements reflect the results of operations, financial position, cash flows, and shareholders’ equity as of and for the quarters ending March 30, 2019 and March 31, 2018, respectively. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“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”) 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 29, 2018 included in CRA’s Annual Report on Form 10-K filed with the SEC on February 28, 2019 (the “2018 Form 10-K”). GNU Interest 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 quarter ended March 30, 2019 or March 31, 2018. Estimates 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 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, share-based compensation, valuation of the contingent consideration liability, valuation of acquired intangible assets, impairment of long-lived assets and goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued 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. Recent Accounting Standards Adopted Leases (Topic 842) 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 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 reported results for 2019 reflect the 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 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 adjustment to deferred taxes as a result of CRA’s 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. Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 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 requires a remeasurement of nonemployee awards at fair value as of the adoption 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. Recent Accounting Standards Not Yet Adopted 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 loans, that 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 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 has not yet determined 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. Fair Value Measurements (Topic 820) 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. 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 2018-13 may have on its financial position, results of operations, cash flows, or disclosures. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement 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 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments 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). The following tables show CRA’s financial instruments as of March 30, 2019 and December 29, 2018 that are measured and recorded in the condensed consolidated financial statements at fair value on a recurring basis (in thousands): March 30, 2019 Significant Quoted Prices in Active Markets Significant Other Unobservable for Identical Assets or Liabilities Observable Inputs Inputs Level 1 Level 2 Level 3 Assets: Money market mutual funds $ 148 $ — $ — Total Assets $ 148 $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 5,980 Total Liabilities $ — $ — $ 5,980 December 29, 2018 Significant Quoted Prices in Active Markets Significant Other Unobservable for Identical Assets or Liabilities Observable Inputs Inputs Level 1 Level 2 Level 3 Assets: Money market mutual funds $ 18,029 $ — $ — Total Assets $ 18,029 $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 6,197 Total Liabilities $ — $ — $ 6,197 The fair value of CRA’s money market mutual fund share holdings is $1.00 per share. The contingent consideration liabilities in the tables above are for estimated future contingent consideration payments related to prior acquisitions. The fair value measurement of these liabilities is based on significant inputs not observed in the market and thus represent a Level 3 measurement. The significant unobservable inputs used in the fair value measurements of these contingent consideration liabilities are CRA’s measures of the estimated payouts based on internally generated financial projections and discount rates. The fair value of the contingent consideration was determined using a Monte Carlo simulation. The fair value of these contingent consideration liabilities are 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 costs of services (exclusive of depreciation and amortization) on the condensed consolidated income statement of that period. The following table summarizes the changes in the contingent consideration liabilities over the fiscal quarter ended March 30, 2019 and the fiscal year ended December 29, 2018 (in thousands): March 30, December 29, 2019 2018 Beginning balance $ 6,197 $ 5,137 Remeasurement of acquisition-related contingent consideration (499) (244) Accretion 282 1,304 Ending balance $ 5,980 $ 6,197 |
Forgivable Loans
Forgivable Loans | 3 Months Ended |
Mar. 30, 2019 | |
Forgivable Loans | |
Forgivable Loans | 3. Forgivable Loans Forgivable loan activity for the fiscal quarter ended March 30, 2019 and the fiscal year ended December 29, 2018 is as follows (in thousands): March 30, December 29, 2019 2018 Beginning balance $ 40,294 $ 28,628 Advances 21,930 30,572 Repayments (400) (3,396) Reclassification to other assets / from accrued expenses (1,421) — Amortization (4,274) (15,329) Effects of foreign currency translation 273 (181) Ending balance $ 56,402 $ 40,294 Current portion of forgivable loans $ 9,632 $ 6,104 Non-current portion of forgivable loans $ 46,770 $ 34,190 At March 30, 2019 and December 29, 2018, CRA had other loans to current and former employees included in other assets on the condensed consolidated balance sheet, amounting to $0.3 million and $0.1 million, respectively, net of allowances. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 30, 2019 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets The changes in the carrying amount of goodwill during the fiscal quarter ended March 30, 2019, is as follows (in thousands): Accumulated Goodwill, impairment Goodwill, gross losses net Balance at December 29, 2018 $ 164,625 $ (76,417) $ 88,208 Effects of foreign currency translation 300 — 300 Balance at March 30, 2019 $ 164,925 $ (76,417) $ 88,508 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 first quarter of fiscal 2019 or during the fiscal year ended December 29, 2018. The components of acquired identifiable intangible assets are as follows (in thousands): March 30, December 29, 2019 2018 Non-competition agreements, net of accumulated amortization of $160 and $544, respectively $ 164 $ 180 Customer relationships, net of accumulated amortization of $4,781 and $4,454, respectively 7,339 7,666 Total, net of accumulated amortization of $4,941 and $4,998, respectively $ 7,503 $ 7,846 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 30, 2019 | |
Accrued Expenses | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses consist of the following (in thousands): March 30, December 29, 2019 2018 Compensation and related expenses $ 55,886 $ 90,711 Income taxes payable 649 514 Other 15,745 17,008 Total $ 72,280 $ 108,233 As of March 30, 2019 and December 29, 2018, approximately $30.0 million and $73.9 million, respectively, of accrued bonuses were included above in “Compensation and related expenses”. Additionally, as of March 30, 2019, “Other” accrued expenses included $9.4 million of commissions due to senior consultants, $0.2 million of direct project accruals, $6.0 million of operating expense accruals and $0.1 million of accrued leasehold improvements. As of December 29, 2018, “Other” accrued expenses consisted principally of $9.6 million of commissions due to senior consultants, $0.7 million of direct project accruals, $6.6 million of operating expense accruals and $0.1 million of accrued leasehold improvements. |
Credit Agreement
Credit Agreement | 3 Months Ended |
Mar. 30, 2019 | |
Credit Agreement | |
Credit Agreement | 6. Credit Agreement 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. There were $39.0 million in borrowings outstanding under this revolving credit facility as of March 30, 2019. There were no outstanding borrowings on this facility as of December 29, 2018. As of March 30, 2019, the amount available under this revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $3.9 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 March 30, 2019 and December 29, 2018, CRA was in compliance with the covenants of its credit agreement. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 30, 2019 | |
Revenue Recognition | |
Revenue Recognition | 7. Revenue Recognition CRA offers consulting services in two broad lines: (1) litigation, regulatory, and financial consulting; and (2) management consulting. Together, these two service lines comprised all of CRA's consolidated revenues during the fiscal quarter ended March 30, 2019. Disaggregation of Revenue The following table disaggregates CRA’s revenue by major business line and timing of transfer of its consulting services (in thousands): Fiscal Quarter Ended March 30, March 31, Type of Contract 2019 2018 Consulting services revenues: Fixed Price $ 21,386 $ 20,714 Time-and-materials 84,463 78,762 Total $ 105,849 $ 99,476 Fiscal Quarter Ended March 30, March 31, Geographic Breakdown 2019 2018 Consulting services revenues: United States $ 83,529 $ 76,860 United Kingdom 18,507 17,505 Other 3,813 5,111 Total $ 105,849 $ 99,476 Reserves for Variable Consideration and Credit Risk Revenues from CRA's consulting services are recorded at the net transaction price, which includes estimates of variable consideration for which reserves are established. Variable consideration reserves are based on actual price concessions and those expected to be extended to CRA customers and are recorded as a component of the allowances for accounts receivable and unbilled services. During each of the fiscal quarters ended March 30, 2019 and March 31, 2019, $1.4 million of adjustments were recorded to these allowances. Bad debt expense is reported as a component of selling, general and administrative expense. During the fiscal quarter ended March 30, 2019, no bad debt expense was reported. During the fiscal quarter ended March 31, 2018, $0.3 million of bad debt expense was reported. Reimbursable Expenses Revenues also include reimbursements for costs incurred by CRA in fulfilling its performance obligations, including travel and other out-of-pocket expenses, fees for outside consultants and other reimbursable expenses. CRA recovers substantially all of these costs. The following expenses are subject to reimbursement (in thousands): Fiscal Quarter Ended March 30, March 31, 2019 2018 Reimbursable expenses $ 12,835 $ 11,229 CRA collects goods and services and value added taxes from customers and records these amounts on a net basis, which is within the scope of ASC Topic 606-10-55, Principal versus Agent Considerations . Transaction Price Allocated to Future Performance Obligations 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 March 30, 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 March 30, 2019. Contract Balances from Contracts with Customers CRA defines contract assets as assets for which it has recorded revenue because it determines that it is probable that it will earn a performance based or contingent fee, but is not yet entitled to receive a fee, because certain events, such as completion of the measurement period or client approval, must occur. 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 March 30, 2019 and December 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): Contract Liability Year Ended Quarter Ended December 29, March 30, 2019 2018 Balance at the beginning of the period $ 5,453 $ 3,287 Balance at the end of the period $ 3,606 $ 5,453 During the fiscal quarter ended March 30, 2019, CRA recognized the following revenue as a result of changes in the contract liability balance (in thousands): Quarter Ended March 30, Revenue recognized in the period from: 2019 Amounts included in contract liabilities at the beginning of the period $ 3,663 Performance obligations satisfied in previous periods $ 2,412 The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled services and contract liabilities on the condensed consolidated balance sheets. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 30, 2019 | |
Net Income Per Share | |
Net Income Per Share | 8. Net Income per Share 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 outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. Net earnings allocable to these participating securities were not significant for the first quarter of fiscal 2019 or fiscal 2018. The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands): March 30, March 31, 2019 2018 Net income, as reported $ 4,665 $ 4,886 Common stock equivalents: Less: net income attributable to participating shares 16 29 Net income available to common shareholders $ 4,649 $ 4,857 The following table presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands): March 30, March 31, 2019 2018 Basic weighted average shares outstanding 8,015 8,285 Stock options and restricted stock units 331 295 Diluted weighted average shares outstanding 8,346 8,580 For the fiscal quarter ended March 30, 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 20,078 shares. For the fiscal quarter ended March 31, 2018, 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 5,689 shares. These share-based awards each period were anti-dilutive because their exercise price exceeded the average market price over the respective period. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2019 | |
Income Taxes | |
Income Taxes | 9. Income Taxes CRA’s effective income tax rates were 23.5% and 17.5% for the first quarters of fiscal 2019 and fiscal 2018, respectively. The effective tax rate for the first quarter of fiscal 2019 was higher than the prior year primarily due to a reduced tax benefit related to the accounting for stock-based compensation. The effective tax rate in the first quarter of fiscal 2019 was lower than the combined federal and state statutory tax rate primarily due to the tax benefit related to the accounting for stock-based compensation, partially offset by non-deductible items resulting from limitations on the deductibility of compensation paid to executive officers and the deductibility of meals and entertainment. The effective tax rate in the first quarter of fiscal 2018 was lower than the combined federal and state statutory tax rate primarily due to the tax benefit related to the accounting for stock-based compensation, partially offset by non-deductible items referenced 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 March 30, 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. |
Leases
Leases | 3 Months Ended |
Mar. 30, 2019 | |
Leases | |
Leases | 10. Leases 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 right-of-use asset (“ROU”), 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, at the inception of the contract, whether the contract is or contains a lease 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 March 30, 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. 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 for the fiscal quarter ended March 30, 2019, which are included in the condensed consolidated income statement, are as follows (in thousands): March 30, 2019 Operating lease cost $ 3,211 Short-term lease cost 108 Variable lease cost 936 Total lease cost $ 4,255 Supplemental cash flow information related to CRA’s leases for the fiscal quarter ended March 30, 2019 is as follows (in thousands): March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,627 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 713 The following table presents supplemental balance sheet information related to CRA’s operating leases as of March 30, 2019 (in thousands): March 30, 2019 Assets: Operating lease right-of-use assets $ 81,480 Liabilities: Current portion of lease liabilities $ 9,558 Non-current portion of lease liabilities 94,939 Total operating lease liabilities $ 104,497 Weighted average remaining lease term – operating leases 9.0 years Weighted average discount rate – operating leases 3.7 % At March 30, 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): Operating Lease Fiscal Year Commitments 2019 (excluding the three months ended March 30, 2019) 10,988 2020 14,083 2021 14,028 2022 14,070 2023 14,178 Thereafter 55,320 Total lease payments 122,667 Less: imputed interest (18,170) Total 104,497 As of March 30, 2019, CRA had additional operating leases for office space that have not yet commenced that have minimum rental commitments of $52.7 million. These operating leases will commence in fiscal year 2019 and have lease terms of approximately five years to eleven years, which exclude certain options to extend these leases. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 30, 2019 | |
Contingencies | |
Contingencies | 11.Contingencies 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. However, the outcome of such legal actions is inherently unpredictable and subject to inherent uncertainties. |
Correction
Correction | 3 Months Ended |
Mar. 30, 2019 | |
Correction | |
Correction | 12. Correction During fiscal 2018, CRA determined that the accounts receivable allowances presented on the December 30, 2017 consolidated balance sheet required adjustment. This adjustment in disclosure is immaterial and had no effect on the amount of accounts receivable presented on the December 30, 2017 consolidated balance sheet. As a result of the adjustment, a classification change was required within the operating activities portion of the consolidated statement of cash 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. Since the correction was discovered in the second quarter of fiscal 2018, the consolidated statement of cash flows for the first quarter of fiscal 2018 requires adjustment. These adjustments are immaterial and have no effect on the net cash used in operating activities. The following table presents the total classification changes required related to these adjustments (in thousands): For the quarter ended March 31, 2018 As previously reported As revised Accounts receivable allowances $ 174 $ 452 Accounts receivable $ 3,435 $ 2,958 Unbilled services $ (8,871) $ (8,672) Net cash used in operating activities $ (40,539) $ (40,539) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 30, 2019 | |
Subsequent Events | |
Subsequent Events | 13. Subsequent Events On May 2, 2019, CRA announced that its Board of Directors declared a quarterly cash dividend of $0.20 per common share, payable on June 14, 2019 to shareholders of record as of May 28, 2019. During the month of April 2019, CRA made borrowings of $6.0 million in the U.S. on its existing revolving line of credit to fund operations. These borrowings are expected to be repaid over the next twelve months. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
Summary of Significant Accounting Policies | |
Description of Business | Description of Business 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: litigation, regulatory, and financial consulting and management consulting. CRA operates in one business segment. CRA operates its business under its registered trade name, Charles River Associates. |
Principles of Consolidation | Principles of Consolidation 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. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements reflect the results of operations, financial position, cash flows, and shareholders’ equity as of and for the quarters ending March 30, 2019 and March 31, 2018, respectively. These financial statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“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”) 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 29, 2018 included in CRA’s Annual Report on Form 10-K filed with the SEC on February 28, 2019 (the “2018 Form 10-K”). |
GNU Interest | GNU Interest 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 quarter ended March 30, 2019 or March 31, 2018. |
Estimates | Estimates 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 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, share-based compensation, valuation of the contingent consideration liability, valuation of acquired intangible assets, impairment of long-lived assets and goodwill, accrued and deferred income taxes, valuation allowances on deferred tax assets, accrued 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. |
Recent Accounting Standards Adopted and Not Yet Adopted | Recent Accounting Standards Adopted Leases (Topic 842) 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 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 reported results for 2019 reflect the 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 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 adjustment to deferred taxes as a result of CRA’s 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. Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting 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 requires a remeasurement of nonemployee awards at fair value as of the adoption 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. Recent Accounting Standards Not Yet Adopted 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 loans, that 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 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 has not yet determined 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. Fair Value Measurements (Topic 820) 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. 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 2018-13 may have on its financial position, results of operations, cash flows, or disclosures. Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement 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 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. |
Fair value of Financial Instr_2
Fair value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Fair Value of Financial Instruments | |
Schedule of financial instruments that are measured and recorded at fair value on a recurring basis | The following tables show CRA’s financial instruments as of March 30, 2019 and December 29, 2018 that are measured and recorded in the condensed consolidated financial statements at fair value on a recurring basis (in thousands): March 30, 2019 Significant Quoted Prices in Active Markets Significant Other Unobservable for Identical Assets or Liabilities Observable Inputs Inputs Level 1 Level 2 Level 3 Assets: Money market mutual funds $ 148 $ — $ — Total Assets $ 148 $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 5,980 Total Liabilities $ — $ — $ 5,980 December 29, 2018 Significant Quoted Prices in Active Markets Significant Other Unobservable for Identical Assets or Liabilities Observable Inputs Inputs Level 1 Level 2 Level 3 Assets: Money market mutual funds $ 18,029 $ — $ — Total Assets $ 18,029 $ — $ — Liabilities: Contingent consideration liability $ — $ — $ 6,197 Total Liabilities $ — $ — $ 6,197 |
Summary of the changes in the contingent consideration liabilities | The following table summarizes the changes in the contingent consideration liabilities over the fiscal quarter ended March 30, 2019 and the fiscal year ended December 29, 2018 (in thousands): March 30, December 29, 2019 2018 Beginning balance $ 6,197 $ 5,137 Remeasurement of acquisition-related contingent consideration (499) (244) Accretion 282 1,304 Ending balance $ 5,980 $ 6,197 |
Forgivable Loans (Tables)
Forgivable Loans (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Forgivable Loans | |
Schedule of forgivable loan activity | Forgivable loan activity for the fiscal quarter ended March 30, 2019 and the fiscal year ended December 29, 2018 is as follows (in thousands): March 30, December 29, 2019 2018 Beginning balance $ 40,294 $ 28,628 Advances 21,930 30,572 Repayments (400) (3,396) Reclassification to other assets / from accrued expenses (1,421) — Amortization (4,274) (15,329) Effects of foreign currency translation 273 (181) Ending balance $ 56,402 $ 40,294 Current portion of forgivable loans $ 9,632 $ 6,104 Non-current portion of forgivable loans $ 46,770 $ 34,190 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Goodwill and Intangible Assets | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill during the fiscal quarter ended March 30, 2019, is as follows (in thousands): Accumulated Goodwill, impairment Goodwill, gross losses net Balance at December 29, 2018 $ 164,625 $ (76,417) $ 88,208 Effects of foreign currency translation 300 — 300 Balance at March 30, 2019 $ 164,925 $ (76,417) $ 88,508 |
Schedule of components of acquired identifiable intangible assets | The components of acquired identifiable intangible assets are as follows (in thousands): March 30, December 29, 2019 2018 Non-competition agreements, net of accumulated amortization of $160 and $544, respectively $ 164 $ 180 Customer relationships, net of accumulated amortization of $4,781 and $4,454, respectively 7,339 7,666 Total, net of accumulated amortization of $4,941 and $4,998, respectively $ 7,503 $ 7,846 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Accrued Expenses | |
Schedule of accrued expenses | Accrued expenses consist of the following (in thousands): March 30, December 29, 2019 2018 Compensation and related expenses $ 55,886 $ 90,711 Income taxes payable 649 514 Other 15,745 17,008 Total $ 72,280 $ 108,233 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Revenue Recognition | |
Schedule of disaggregation of revenue by type of contract and geographic breakdown | The following table disaggregates CRA’s revenue by major business line and timing of transfer of its consulting services (in thousands): Fiscal Quarter Ended March 30, March 31, Type of Contract 2019 2018 Consulting services revenues: Fixed Price $ 21,386 $ 20,714 Time-and-materials 84,463 78,762 Total $ 105,849 $ 99,476 Fiscal Quarter Ended March 30, March 31, Geographic Breakdown 2019 2018 Consulting services revenues: United States $ 83,529 $ 76,860 United Kingdom 18,507 17,505 Other 3,813 5,111 Total $ 105,849 $ 99,476 |
Schedule of reimbursable expenses included in revenues | The following expenses are subject to reimbursement (in thousands): Fiscal Quarter Ended March 30, March 31, 2019 2018 Reimbursable expenses $ 12,835 $ 11,229 |
Schedule of opening and closing balances and result of changes in contract liability balance | The following table presents the opening and closing balances of CRA’s contract liability (in thousands): Contract Liability Year Ended Quarter Ended December 29, March 30, 2019 2018 Balance at the beginning of the period $ 5,453 $ 3,287 Balance at the end of the period $ 3,606 $ 5,453 During the fiscal quarter ended March 30, 2019, CRA recognized the following revenue as a result of changes in the contract liability balance (in thousands): Quarter Ended March 30, Revenue recognized in the period from: 2019 Amounts included in contract liabilities at the beginning of the period $ 3,663 Performance obligations satisfied in previous periods $ 2,412 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Net Income Per Share | |
Schedule of reconciliation from net income to the net income available to common shareholders | The following table presents a reconciliation from net income to the net income available to common shareholders (in thousands): March 30, March 31, 2019 2018 Net income, as reported $ 4,665 $ 4,886 Common stock equivalents: Less: net income attributable to participating shares 16 29 Net income available to common shareholders $ 4,649 $ 4,857 |
Schedule of reconciliation of basic to diluted weighted average shares of common stock outstanding | The following table presents a reconciliation of basic to diluted weighted average shares of common stock outstanding (in thousands): March 30, March 31, 2019 2018 Basic weighted average shares outstanding 8,015 8,285 Stock options and restricted stock units 331 295 Diluted weighted average shares outstanding 8,346 8,580 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Leases | |
Schedule of leases | The components of CRA’s lease expenses for the fiscal quarter ended March 30, 2019, which are included in the condensed consolidated income statement, are as follows (in thousands): March 30, 2019 Operating lease cost $ 3,211 Short-term lease cost 108 Variable lease cost 936 Total lease cost $ 4,255 Supplemental cash flow information related to CRA’s leases for the fiscal quarter ended March 30, 2019 is as follows (in thousands): March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,627 Right-of-use assets obtained in exchange for lease obligations Operating leases $ 713 The following table presents supplemental balance sheet information related to CRA’s operating leases as of March 30, 2019 (in thousands): March 30, 2019 Assets: Operating lease right-of-use assets $ 81,480 Liabilities: Current portion of lease liabilities $ 9,558 Non-current portion of lease liabilities 94,939 Total operating lease liabilities $ 104,497 Weighted average remaining lease term – operating leases 9.0 years Weighted average discount rate – operating leases 3.7 % |
Schedule of maturities of lease liabilities | At March 30, 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): Operating Lease Fiscal Year Commitments 2019 (excluding the three months ended March 30, 2019) 10,988 2020 14,083 2021 14,028 2022 14,070 2023 14,178 Thereafter 55,320 Total lease payments 122,667 Less: imputed interest (18,170) Total 104,497 |
Correction (Tables)
Correction (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Total classification changes within operating activities | |
Schedule of corrections in the classification changes on the consolidated statement of cash flows | The following table presents the total classification changes required related to these adjustments (in thousands): For the quarter ended March 31, 2018 As previously reported As revised Accounts receivable allowances $ 174 $ 452 Accounts receivable $ 3,435 $ 2,958 Unbilled services $ (8,871) $ (8,672) Net cash used in operating activities $ (40,539) $ (40,539) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - (Details) | 3 Months Ended |
Mar. 30, 2019segmentitem | |
Description of Business | |
Number of broad areas of consulting services | item | 2 |
Number of business segment | segment | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - GNU Interest (Details) | Dec. 18, 2018 |
GNU | |
GNU Interest | |
Percentage of ownership interest held by the entity | 55.89% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recent Accounting Standards Adopted (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Dec. 30, 2018 | |
Recent Accounting Standards | ||
CRA elected package of practical expedients | true | |
Operating lease right-of-use assets | $ 81,480 | |
Recognize lease liabilities | 104,497 | |
ASU 2016-02 | ||
Recent Accounting Standards | ||
Operating lease right-of-use assets | 82,300 | $ 82,300 |
Recognize lease liabilities | $ 106,800 | $ 106,800 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 30, 2019 | Dec. 29, 2018 | Mar. 30, 2019 | Dec. 29, 2018 | |
Money market mutual funds | ||||
Fair Value of Financial Instruments | ||||
Fair value per share of CRA's money market mutual fund share holdings | $ 1 | |||
Recurring | Level 1 | ||||
Fair Value of Financial Instruments | ||||
Total Assets | $ 148,000 | 18,029,000 | ||
Recurring | Level 1 | Money market mutual funds | ||||
Fair Value of Financial Instruments | ||||
Cash and cash equivalents | 148,000 | 18,029,000 | ||
Recurring | Level 3 | ||||
Fair Value of Financial Instruments | ||||
Contingent consideration liability | $ 6,197,000 | $ 5,137,000 | 5,980,000 | 6,197,000 |
Total Liabilities | $ 5,980,000 | $ 6,197,000 | ||
Summary of changes in contingent consideration liabilities | ||||
Beginning balance | 6,197,000 | 5,137,000 | ||
Remeasurement of acquisition-related contingent consideration | (499,000) | (244,000) | ||
Accretion | 282,000 | 1,304,000 | ||
Ending balance | $ 5,980,000 | $ 6,197,000 |
Forgivable Loans (Details)
Forgivable Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Dec. 29, 2018 | |
Forgivable loan activity | ||
Beginning balance | $ 40,294 | $ 28,628 |
Advances | 21,930 | 30,572 |
Repayments | (400) | (3,396) |
Reclassification to other assets / from accrued expenses | (1,421) | |
Amortization | (4,274) | (15,329) |
Effects of foreign currency translation | 273 | (181) |
Ending balance | 56,402 | 40,294 |
Current portion of forgivable loans | 9,632 | 6,104 |
Non-current portion of forgivable loans | 46,770 | 34,190 |
Other loans to current and former employees | ||
Other loans to current and former employees, included in other assets, net of allowances | $ 300 | $ 100 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 30, 2019 | Dec. 29, 2018 | |
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period, Goodwill gross | $ 164,625 | |
Effects of foreign currency translation | 300 | |
Balance at the end of the period, Goodwill gross | 164,925 | $ 164,625 |
Balance at the beginning of the period, Accumulated impairment losses | (76,417) | |
Balance at the end of the period, Accumulated impairment losses | (76,417) | (76,417) |
Goodwill, net | 88,508 | 88,208 |
Balance at the end of the period, Goodwill, net | 88,508 | 88,208 |
Intangible assets impairment losses | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Acquired and Amortization (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Acquired identifiable intangible assets | ||
Acquired identifiable intangible assets, net of accumulated amortization | $ 7,503 | $ 7,846 |
Accumulated amortization | 4,941 | 4,998 |
Non-competition agreements | ||
Acquired identifiable intangible assets | ||
Acquired identifiable intangible assets, net of accumulated amortization | 164 | 180 |
Accumulated amortization | 160 | 544 |
Customer relationships | ||
Acquired identifiable intangible assets | ||
Acquired identifiable intangible assets, net of accumulated amortization | 7,339 | 7,666 |
Accumulated amortization | $ 4,781 | $ 4,454 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Accrued Expenses | ||
Compensation and related expenses | $ 55,886 | $ 90,711 |
Income taxes payable | 649 | 514 |
Other | 15,745 | 17,008 |
Total | 72,280 | 108,233 |
Compensation and related expenses | ||
Accrued bonuses | 30,000 | 73,900 |
"Other" accrued expenses | ||
Commissions due to senior consultants | 9,400 | 9,600 |
Direct project accruals | 200 | 700 |
Operating expense accruals | 6,000 | 6,600 |
Accrued leasehold improvements | $ 100 | $ 100 |
Credit Agreement (Details)
Credit Agreement (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Dec. 29, 2018 |
Revolving credit facility | ||
Senior Loan Agreement | ||
Revolving credit facility, maximum capacity | $ 125 | |
Borrowings outstanding | 39 | $ 0 |
Secured by letters of credit | ||
Senior Loan Agreement | ||
Revolving credit facility, maximum capacity | 15 | |
Amount available under revolving credit facility reduced | $ 3.9 |
Revenue Recognition - General (
Revenue Recognition - General (Details) | Mar. 30, 2019item |
Concentration Risk | |
Number of broad lines of consulting services | 2 |
Revenue Benchmark | Revenue Concentration Risk | |
Concentration Risk | |
Number of broad lines of consulting services | 2 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue | ||
Consulting services revenues | $ 105,849 | $ 99,476 |
United States | ||
Disaggregation of Revenue | ||
Consulting services revenues | 83,529 | 76,860 |
United Kingdom | ||
Disaggregation of Revenue | ||
Consulting services revenues | 18,507 | 17,505 |
Other | ||
Disaggregation of Revenue | ||
Consulting services revenues | 3,813 | 5,111 |
Fixed Price | ||
Disaggregation of Revenue | ||
Consulting services revenues | 21,386 | 20,714 |
Time-and-materials | ||
Disaggregation of Revenue | ||
Consulting services revenues | $ 84,463 | $ 78,762 |
Revenue Recognition - Reserves
Revenue Recognition - Reserves for Variable Consideration and Credit Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Adjustments to allowances | $ 1,400 | $ 1,400 |
Reimbursable expenses | 12,835 | 11,229 |
Selling, general and administrative expenses | ||
Bad debt expense | $ 0 | $ 300 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Contract liabilities: | |||
Contract liability | $ 3,606 | $ 5,453 | $ 3,287 |
Revenue recognized from: | |||
Amounts included in contract liabilities at the beginning of the period | 3,663 | ||
Performance obligations satisfied in previous years | $ 2,412 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Net income available to common shareholders | ||
Net income, as reported | $ 4,665 | $ 4,886 |
Less: net income attributable to participating shares | 16 | 29 |
Net income available to common shareholders | $ 4,649 | $ 4,857 |
Reconciliation of basic to diluted weighted average shares of common stock outstanding | ||
Basic weighted average shares outstanding | 8,015,000 | 8,285,000 |
Stock options and restricted stock units | 331,000 | 295,000 |
Diluted weighted average shares outstanding | 8,346,000 | 8,580,000 |
Calculation of common stock equivalents for purposes of computing diluted weighted average shares outstanding | ||
Anti-dilutive securities excluded from EPS computation (in shares) | 20,078 | 5,689 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Taxes | ||
Effective tax rate (as a percent) | 23.50% | 17.50% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Dec. 30, 2018 | Mar. 30, 2019 |
Leases | ||
Operating lease right-of-use assets | $ 81,480 | |
Recognize lease liabilities | 104,497 | |
Options to extend | true | |
Lease expenses included in income statement | ||
Operating lease cost | 3,211 | |
Short-term lease cost | 108 | |
Variable lease cost | 936 | |
Total lease cost | 4,255 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | 4,627 | |
Right-of-use assets obtained in exchange for lease obligations | ||
Operating leases | 713 | |
Assets | ||
Right-of-Use Assets | 81,480 | |
Liabilities: | ||
Current portion of lease liabilities | 9,558 | |
Non-current portion of lease liabilities | 94,939 | |
Total operating lease liabilities | $ 104,497 | |
Weighted average remaining lease term - operating leases | 9 years | |
Weighted average discount rate - operating leases | 3.70% | |
Minimum | ||
Leases | ||
Remaining lease terms | 1 year | |
Maximum | ||
Leases | ||
Remaining lease terms | 12 years | |
Lease extension term | 5 years | |
ASU 2016-02 | ||
Leases | ||
Operating lease right-of-use assets | $ 82,300 | $ 82,300 |
Recognize lease liabilities | 106,800 | 106,800 |
Assets | ||
Right-of-Use Assets | 82,300 | 82,300 |
Liabilities: | ||
Total operating lease liabilities | $ 106,800 | $ 106,800 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities under non-cancellable operating leases (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Operating lease commitments | |
2019 (excluding the three months ended March 30, 2019) | $ 10,988 |
2020 | 14,083 |
2021 | 14,028 |
2022 | 14,070 |
2023 | 14,178 |
Thereafter | 55,320 |
Total lease payments | 122,667 |
Less: imputed interest | (18,170) |
Total | 104,497 |
Additional operating leases that have not yet commenced | $ 52,700 |
Minimum | |
Operating lease commitments | |
Commencement of operating lease term | 5 years |
Maximum | |
Operating lease commitments | |
Commencement of operating lease term | 11 years |
Correction (Details)
Correction (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Total classification changes required related to these adjustments | ||
Accounts receivable allowances | $ 48 | $ 452 |
Accounts receivable | 5,742 | 2,958 |
Unbilled services | (8,666) | (8,672) |
Net cash used in operating activities | $ (56,567) | (40,539) |
As previously reported | ||
Total classification changes required related to these adjustments | ||
Accounts receivable allowances | 174 | |
Accounts receivable | 3,435 | |
Unbilled services | (8,871) | |
Net cash used in operating activities | $ (40,539) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | May 02, 2019 | Mar. 30, 2019 | Mar. 31, 2018 | Apr. 30, 2019 | Dec. 29, 2018 |
Subsequent Events | |||||
Common share quarterly cash dividend declared (in dollars per share) | $ (0.20) | $ (0.17) | |||
Revolving credit facility | |||||
Subsequent Events | |||||
Borrowings on revolving line of credit | $ 39 | $ 0 | |||
Subsequent Events | |||||
Subsequent Events | |||||
Common share quarterly cash dividend declared (in dollars per share) | $ 0.20 | ||||
Subsequent Events | Revolving credit facility | |||||
Subsequent Events | |||||
Borrowings on revolving line of credit | $ 6 |