Company: CRAI
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001053706-25-000014
Chunk: 44

Company: CRA INTERNATIONAL, INC.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 44
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in thousands):March 29,2025December 28,2024Compensation and related expenses$106,520 $167,899 Performance awards9,196 159 Direct project accruals2,959 2,236 Other15,764 11,119 Total accrued expenses$134,439 $181,413 As of March 29, 2025 and December 28, 2024, approximately $66.7 million and $144.2 million, respectively, of accrued bonuses were included above in “Compensation and related expenses.”

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Table of ContentsCRA INTERNATIONAL, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(Unaudited)

6. Income Taxes

For the fiscal quarters ended March 29, 2025 and March 30, 2024, CRA’s effective income tax rate (“ETR”) was 27.0% and 28.0%, respectively. The ETR for the first quarter of fiscal 2025 was lower than the first quarter of fiscal 2024 primarily due to the impact of state tax law changes effective for the 2025 tax year and an increase in the tax benefit related to share-based compensation.

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 ended March 29, 2025 and March 30, 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 ended March 29, 2025 and March 30, 2024.The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):Fiscal Quarter EndedMarch 29,2025March 30,2024Numerator:Net income — basic$18,002 $13,691 Less: net income attributable to participating shares47 46 Net income — diluted$17,955 $13,645 Denominator