Company: CRAI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001053706-25-000020
Chunk: 53

Company: CRA INTERNATIONAL, INC.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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%, respectively. The ETR for the current fiscal year-to-date period was lower than the prior year-to-date period primarily due to the impact of state tax law changes effective for the 2025 tax year and an increased benefit related to share-based compensation and the foreign-derived intangible income (“FDII”) deduction. The impact of these items were partially offset by a tax reserve recognized in the estimated annual effective tax rate of fiscal 2025.

On July 4, 2025, tax legislation known as the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. The Company is currently evaluating the impact of U.S. tax law changes introduced by OBBBA on our consolidated financial statements but does not currently expect a material impact on CRA. 

7. Net Income Per Share

CRA calculates basic earnings per share using the two-class method. CRA calculates diluted earnings per share using the more dilutive of either the two-class method or treasury stock method. The two-class method was more dilutive for the fiscal quarters and fiscal year-to-date periods ended June 28, 2025 and June 29, 2024.Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all 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. Net earnings allocable to these participating securities were not material for the fiscal quarters and fiscal year-to-date periods ended June 28, 2025 and June 29, 2024.The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):Fiscal Quarter EndedFiscal Year-to-DatePeriod EndedJune 28,2025June 29,2024June 28,2025June 29,2024Numerator:Net income — basic$12,122 $6,538 $30,124 $20,229 Less: net income attributable to participating shares23 22 61 68 Net income — diluted$12,099 $6,516 $30,063 $20,161 Denominator:Weighted average shares outstanding — basic6,694 6,834 $6,734 $6,880 Effect of dilutive stock options and restricted stock units59 77 73 81