Company: CRAI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001053706-25-000020
Chunk: 23

Company: CRA INTERNATIONAL, INC.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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43,315 Other12,670 10,680 21,684 19,110 Total$186,878 $171,442 $368,729 $343,230 Reserves for Variable Consideration and Credit RiskRevenues 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 specific price concessions and those expected to be extended to CRA customers estimated by CRA's historical realization rates. Reserves for variable consideration are recorded as a component of the allowances for accounts receivable and unbilled services on the condensed consolidated balance sheets. Adjustments to the reserves for variable consideration are included in revenues on the condensed consolidated statements of operations.

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

CRA also maintains allowances for accounts receivable and unbilled services for estimated losses resulting from clients’ failure to make required payments. Under ASC Topic 326, Financial Instruments—Credit Losses, CRA estimates allowances based on historical charge-off rates, adjusted for days sales outstanding and expected changes to clients’ financial conditions during the anticipated collection period. Bad debt expense, net of recoveries of previously written off allowances, is recorded as a component of selling, general and administrative expenses on the condensed consolidated statements of operations.The following table presents CRA's bad debt expense, net of recoveries of previously written off allowances (in thousands):Fiscal Quarter EndedFiscal Year-to-DatePeriod EndedJune 28,2025June 29,2024June 28,2025June 29,2024Bad debt expense (recovery), net$129 $18 $563 $681 Reimbursable ExpensesRevenues 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 EndedFiscal Year-to-DatePeriod EndedJune 28,2025June 29,2024June 28,2025June 29,2024Reimbursable expenses$19,615 $16,361 $36,121 $33,423 Contract Balances from Contracts with CustomersThe timing of revenue recognition, billings, and cash collections results in accounts receiv