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What changed in CRA INTERNATIONAL, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of CRA INTERNATIONAL, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+137 added−140 removedSource: 10-K (2025-02-20) vs 10-K (2024-02-29)

Top changes in CRA INTERNATIONAL, INC.'s 2025 10-K

137 paragraphs added · 140 removed · 122 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeAdditionally, we encourage our employee consultants to pursue their academic interests through self-directed training modules, our on-demand library of software webinars, and external professional development and continuing education opportunities. We seek to reward both strong performance and those who demonstrate growth in their careers at CRA.
Biggest changeThrough our ongoing internally-led workshops and scheduled courses, we provide presentations, discussions, and training on topics such as analytical tools, thought leadership, service capabilities, professional skills, and feedback discussions. Additionally, we encourage our employee consultants to pursue their academic interests through self-directed training modules, our on-demand library of software webinars, and external professional development and continuing education opportunities.
We believe our financial results and reputation are directly related to the number and quality of our employee consultants. We derive most of our revenues directly from the services provided by our employee consultants. Our employee consultants have backgrounds in many disciplines, including economics, life sciences, engineering, computer science, business, corporate finance, accounting, and mathematics.
We believe our reputation and corresponding financial results are directly related to the number and quality of our employee consultants. We derive most of our revenues directly from the services provided by our employee consultants. Our employee consultants have backgrounds in many disciplines, including economics, life sciences, engineering, computer science, business, corporate finance, accounting, and mathematics.
We believe consultants choose to work for us because of our emphasis on accurate, rigorous analytics and high quality work; a culture that values intellectual curiosity, initiative, and resourcefulness; and a collegial, inclusive, and multi-disciplinary approach to complex client needs.
We believe consultants choose to work for us because of our emphasis on accurate, rigorous analytics and high quality work; a culture that values intellectual curiosity, initiative, and resourcefulness; and a collegial, collaborative, and multi-disciplinary approach to complex client needs.
For our management consulting services, we also rely on referrals from existing clients, and supplement referrals with a significant amount of direct marketing to new clients through conferences, seminars, publications, presentations, and direct solicitations. 9 Table of Contents It is important to us that we conduct business ethically and in accordance with industry standards and our own rigorous professional standards.
For our management consulting services, we also rely on referrals from existing clients, and supplement referrals with a significant amount of direct marketing to new clients through conferences, seminars, publications, presentations, and direct solicitations. It is important to us that we conduct business ethically and in accordance with industry standards and our own rigorous professional standards.
We derived approximately 18%, 19%, and 24% of consolidated revenues from fixed-price contracts in fiscal 2023, fiscal 2022, and fiscal 2021, respectively. These contracts are more common in our management consulting practices, and would likely grow in number with expansion of those practices.
We derived approximately 18%, of consolidated revenues from fixed-price contracts in fiscal 2024 and fiscal 2023, respectively and 19% in fiscal 2022. These contracts are more common in our management consulting practices, and would likely grow in number with expansion of those practices.
We carefully consider the pursuit of each specific market, client, and engagement in light of these standards. Competition The market for economic and management consulting services is intensely competitive, highly fragmented, and subject to rapid change.
We carefully consider the pursuit of each specific market, client, and engagement in light of these standards. 9 Table of Contents Competition The market for economic and management consulting services is intensely competitive, highly fragmented, and subject to rapid change.
Our policy is to keep the identities of our clients confidential unless our work for the client is already publicly disclosed. Our clients come from a broad range of industries, with no single client accounting for more than 5% of our revenues in any of fiscal 2023, fiscal 2022, or fiscal 2021.
Our policy is to keep the identities of our clients confidential unless our work for the client is already publicly disclosed. Our clients come from a broad range of industries, with no single client accounting for more than 10% of our revenues in any of fiscal 2024, fiscal 2023, or fiscal 2022.
We work regularly with renowned professors at such institutions as the University of Chicago, Georgetown University, Texas A&M University, Yale University, Duke University, Brigham Young University, Northwestern University, the University of California at Berkeley, Boston University, the University of Toronto, and other leading universities.
We work regularly with renowned professors at such institutions as the University of Chicago, Georgetown University, Texas A&M University, Yale University, Brigham Young University, Northwestern University, the University of California at Berkeley, Harvard University, the University of Texas at Austin, McGill University, and other leading universities.
As of December 30, 2023, we employed 1,004 consultants, 3 Table of Contents which consisted of 156 officers, 527 other senior staff and 321 junior staff. Approximately 75% of our senior staff have advanced degrees, with 41% of the advanced degrees being doctorate degrees. We are extremely selective in our hiring of consultants, recruiting from leading universities, industry, and government.
As of December 28, 2024, we employed 946 consultants, 3 Table of Contents which consisted of 151 officers, 552 other senior staff and 243 junior staff. Approximately 74% of our senior staff have advanced degrees, with 40% of the advanced degrees being doctorate degrees. We are extremely selective in our hiring of consultants, recruiting from leading universities, industry, and government.
Our long-term incentive program, or "LTIP," is used as a framework for equity grants made under our 2006 equity incentive plan to our senior corporate leaders, practice leaders, and key revenue generators. The equity awards granted under the LTIP include stock options, time-vesting restricted stock units, and performance-vesting restricted stock units.
Our long-term incentive program ("LTIP") serves as a framework for equity 8 Table of Contents grants under our Amended and Restated 2006 equity incentive plan, as amended (the "2006 Equity Plan"), offering stock options, time-vesting and performance-vesting restricted stock units to senior corporate leaders, practice leaders, and key revenue generators.
Human Capital As of December 30, 2023, we employed 1,004 consultants, consisting of 156 officers, 527 other senior staff and 321 junior staff. Approximately 75% of our senior staff have advanced degrees, with 41% of the advanced degrees being doctorate degrees, in addition to substantial management, technical, or industry expertise.
Human Capital As of December 28, 2024, we employed 946 consultants, consisting of 151 officers, 552 other senior staff and 243 junior staff. Approximately 74% of our senior staff have advanced degrees, with 40% of the advanced degrees being doctorate degrees, in addition to substantial management, technical, government, academic, or industry expertise.
Accordingly, we compensate our senior corporate leaders, practice leaders, key revenue generators, and other employees with salary and a 8 Table of Contents mixture of incentive-based programs that provide for cash and equity compensation. We maintain a discretionary bonus program through which we pay annual, performance-based cash bonuses to our employee consultants and certain other employees.
We seek to reward both strong performance and those who demonstrate growth in their careers at CRA. Accordingly, we compensate our senior corporate leaders, practice leaders, key revenue generators, and other employees with salary and a mixture of incentive-based programs, including a discretionary bonus program through which we pay annual, performance-based cash bonuses to our employee consultants.
These LTIP cash awards are currently granted under our cash incentive plan and reward our senior corporate leaders, practice leaders and key revenue generators with the opportunity to share in the long-term growth of our business.
The LTIP also allows for service- and performance-based cash awards, granted under our cash incentive plan, providing these leaders with opportunities to share in our business’s long-term growth.
Removed
Through our ongoing internally-led workshops, speakers deliver presentations and conduct discussions with our employee consultants on various topics ranging from analytical tools to thought leadership material and service capabilities. We also provide scheduled courses designed to improve an employee's professional skills, such as written and oral presentation, marketing techniques, feedback discussions, and business development.
Removed
Our LTIP allows us to grant service- and performance-based cash awards in lieu of, or in addition to, equity awards to our senior corporate leaders, practice leaders, and key revenue generators.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAlthough we are not able to predict the positive or negative effects that general changes in global economic, business and political conditions will have on our individual practice areas or our business as a whole, any specific changes in these conditions could have a material adverse impact on our revenues, results of operations and financial condition. 13 Table of Contents Our results of operations and consequently our business may be adversely affected if we are not able to maintain our current bill rates, compensation costs and/or utilization rate Our revenues and profitability are largely based on the bill rates charged to our clients, compensation costs and the utilization of our consultants.
Biggest changeIn addition, many of our clients are in highly regulated industries, and regulatory and legislative changes affecting these industries could impact the market for our service offerings, render our current service offerings obsolete, or increase the competition among providers of these services. 13 Table of Contents Although we are not able to predict the positive or negative effects that general changes in global economic, business and political conditions will have on our individual practice areas or our business as a whole, any specific changes in these conditions could have a material adverse impact on our revenues, results of operations and financial condition.
Hiring additional employees or acquiring businesses could also involve a number of additional risks, including: • the diversion of management's time, attention, and resources from managing and marketing our existing business; • the failure to retain key acquired personnel or retain existing personnel who may view the acquisition unfavorably; • additional conflicts of interest due to the acquired businesses that could impact our ability to secure new engagements; • the need to compensate new employees while they wait for their restrictive covenants with other institutions to expire; • the potential need to raise significant amounts of capital to finance a transaction or the potential issuance of equity securities that could be dilutive to our existing stockholders; • increased costs to improve or coordinate managerial, operational, financial, and administrative systems, including compliance with the Sarbanes-Oxley Act of 2002; 11 Table of Contents • the potential assumption of legal liabilities; • the inability to attain the expected synergies with an acquired business; • the impact of earn-outs based on the future performance of our acquired businesses that may deter the acquired company from fully integrating into our existing business; and • potential difficulties in integrating new employees whose service offerings, expertise, or staffing requirements may vary from our existing employee consultants.
Hiring additional employees or acquiring businesses could also involve a number of additional risks, including: • the diversion of management's time, attention, and resources from managing and marketing our existing business; • the failure to retain key acquired personnel or retain existing personnel who may view the acquisition unfavorably; • additional conflicts of interest due to the acquired businesses that could impact our ability to secure new engagements; • the need to compensate new employees while they wait for their restrictive covenants with other institutions to expire; • the potential need to raise significant amounts of capital to finance a transaction or the potential issuance of equity securities that could be dilutive to our existing stockholders; • increased costs to improve or coordinate managerial, operational, financial, and administrative systems, including compliance with the Sarbanes-Oxley Act of 2002; • the potential assumption of legal liabilities; • the inability to attain the expected synergies with an acquired business; 11 Table of Contents • the impact of earn-outs based on the future performance of our acquired businesses that may deter the acquired company from fully integrating into our existing business; and • potential difficulties in integrating new employees whose service offerings, expertise, or staffing requirements may vary from our existing employee consultants.
Some of these factors are: 18 Table of Contents • variations in our quarterly results of operations; • changes in quarterly dividends; • the extent of any repurchases of shares of our common stock; • the hiring or departure of key personnel or non-employee experts; • changes in our professional reputation; • the introduction of new services by us or our competitors; • acquisitions or strategic alliances involving us or our competitors; • changes in accounting principles or methods or issues with our internal control over financial reporting; • changes in estimates of our performance or recommendations by securities analysts; • future sales of shares of common stock in the public market; and • market conditions in the industry and the economy as a whole.
Some of these factors are: • variations in our quarterly results of operations; • changes in quarterly dividends; • the extent of any repurchases of shares of our common stock; • the hiring or departure of key personnel or non-employee experts; • changes in our professional reputation; • the introduction of new services by us or our competitors; • acquisitions or strategic alliances involving us or our competitors; • changes in accounting principles or methods or issues with our internal control over financial reporting; • changes in estimates of our performance or recommendations by securities analysts; 18 Table of Contents • future sales of shares of common stock in the public market; and • market conditions in the industry and the economy as a whole.
Any of these events could disrupt our or our client's business operations or cause us or our clients to incur unanticipated losses, including the costs of investigating and remediating any such event and any fines related thereto, as well as reputational damage, any of which could have a material adverse effect on our business and results of operations.
Any of these events could disrupt our or our client’s business operations or cause us or our clients to incur unanticipated losses, including the costs of investigating and remediating any such event and any fines/settlements related thereto, as well as reputational damage, any of which could have a material adverse effect on our business and results of operations.
There can be no assurance that we will continue to declare cash dividends at all or in any particular amounts Our Board of Directors declared the first quarterly dividend on our common stock during 2016 and we have continued to pay quarterly dividends throughout fiscal 2023.
There can be no assurance that we will continue to declare cash dividends at all or in any particular amounts Our Board of Directors declared the first quarterly dividend on our common stock during 2016 and we have continued to pay quarterly dividends throughout fiscal 2024.
These contracts are more common in our management consulting area, and would likely grow in number with expansion of that area. Fluctuations in the mix between time-and-material contracts, fixed-price contracts and arrangements with fees tied to performance-based criteria may result in fluctuations of revenue and results of operations.
These contracts are more common in our management consulting area, and would likely grow in number with expansion of that area. Fluctuations in the mix between time-and-material contracts, fixed-price contracts and arrangements with fees tied to performance-based criteria may result in fluctuations 16 Table of Contents of revenue and results of operations.
These provisions may also discourage proxy contests and make it more difficult for our shareholders to take some corporate actions, including the election of directors. These provisions could limit the price that investors might be willing to pay for shares of our common stock. 19 Table of Contents
These provisions may also discourage proxy contests and make it more difficult for our shareholders to take some corporate actions, including the election of directors. These provisions could limit the price that investors might be willing to pay for shares of our common stock.
Our revenues, operating results and cash flows are likely to fluctuate We experience fluctuations in our revenues, operating results and cash flows and expect that they will continue to occur in the future due to factors that are either within or outside of our control, including, but not limited to, the timing and duration of our client engagements, utilization of our employee consultants, the types of engagements we are working on at different 14 Table of Contents times, the geographic locations of our clients or where the services are rendered, the length of billing and collection cycles, hiring, business and capital expenditures, share repurchases, dividends, debt repayments, and other general economic factors.
Our revenues, operating results and cash flows are likely to fluctuate We experience fluctuations in our revenues, operating results and cash flows and expect that they will continue to occur in the future due to factors that are either within or outside of our control, including, but not limited to, the timing and duration of our client engagements, utilization of our employee consultants, the types of engagements we are working on at different times, the geographic locations of our clients or where the services are rendered, the length of billing and collection cycles, hiring, business and capital expenditures, severity of insurance claims, share repurchases, dividends, debt repayments, and other general economic factors.
From time to time, we are required to adopt new or revised accounting standards issued by recognized authoritative bodies, including the Financial Accounting Standards Board and the Securities and Exchange Commission. A change in accounting standards or practices may adversely affect our reported financial results or the way we conduct our business.
From time to time, we are required to adopt new or revised accounting standards issued by recognized authoritative bodies, including the Financial Accounting Standards Board and the Securities and Exchange Commission. A change in accounting standards or practices may adversely affect our reported 15 Table of Contents financial results or the way we conduct our business.
Similarly, our failure or perceived failure to pursue or fulfill our current or future goals, targets and objectives or to satisfy various reporting standards within the timelines we announce, or at all, could also have similar negative impacts.
Similarly, our failure or perceived failure to 14 Table of Contents pursue or fulfill our current or future goals, targets and objectives or to satisfy various reporting standards within the timelines we announce, or at all, could also have similar negative impacts.
There were no borrowings outstanding under the revolving credit facility as of December 30, 2023. Risks Related to Our Common Stock The market price of our common stock may be volatile The market price of our common stock has fluctuated widely and may continue to do so.
There were no borrowings outstanding under the revolving credit facility as of December 28, 2024. Risks Related to Our Common Stock The market price of our common stock may be volatile The market price of our common stock has fluctuated widely and may continue to do so.
For example, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters, and unfavorable ratings of the Company may lead to negative investor sentiment, stock price fluctuations and the diversion of investment to other companies.
For example, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters, and their evolving methodologies and assessments may lead to negative investor sentiment, stock price fluctuations and the diversion of investment to other companies.
Many of our competitors have national or international reputations, as well as significantly greater personnel, financial, managerial, technical, and marketing resources than we do, which could enhance their ability to respond more quickly to technological changes, finance acquisitions, and fund internal growth.
Many of our competitors have national or international reputations, as well as significantly greater personnel, financial, managerial, technical, and marketing resources than we do, which could enhance their ability to respond more quickly to technological changes, finance acquisitions, and fund internal growth. Some of our competitors also have a significantly broader geographic presence and significantly more resources than we do.
Additionally, global economic events have caused and may continue to cause significant volatility in currency exchange rate fluctuations. Revenue generated from our U.K.-based operations was approximately 15% (which includes currency exchange effects) of our total revenues for the year ended December 30, 2023.
Additionally, global economic events have caused and may continue to cause significant volatility in currency exchange rate fluctuations. Revenue generated from our U.K.-based operations was approximately 13% (which includes currency exchange effects) of our total revenues for the year ended December 28, 2024.
We must comply with applicable U.S. and foreign privacy laws and regulations, including the strict General Data Privacy Regulation ("GDPR") in the European Union, laws that adopt the GDPR as a model (such as Brazil's General Law for the Protection of Privacy), and U.S. state and federal laws such as the California Consumer Protection Act, and these laws are becoming increasingly complex and vary by jurisdiction.
Further, we also must comply with applicable U.S. and foreign privacy laws and regulations, including the General Data Privacy Regulation ("GDPR") in the European Union and its United Kingdom equivalent, laws that adopt the GDPR as a model 12 Table of Contents (such as Brazil's General Law for the Protection of Privacy), and U.S. state and federal laws such as the California Consumer Protection Act, and these laws are becoming increasingly complex and vary by jurisdiction.
Our ability to secure and maintain the confidentiality and integrity of this information is critical to our reputation and the success of our businesses.
Our ability to secure and maintain the confidentiality, integrity and availability of both these systems and this information is critical to our reputation and the success of our businesses.
Any such loss or misuse could result in our suffering claims, fines, damages, losses or reputational damage, any of which could have a material adverse effect on our business and results of operations.
Any unauthorized access, corruption, or loss of clients’ information could result in our suffering claims, fines, damages, losses or reputational damage, any of which could have a material adverse effect on our business and results of operations.
Some of our competitors also have a significantly broader geographic presence and significantly more resources than we do. 17 Table of Contents Risks Related to Our International Operations Our international operations create risks Our international operations carry financial and business risks, including: • currency fluctuations that could adversely affect our financial position and operating results; • adverse social, political and economic conditions, such as inflation, rising interest rates and risk of global or regional recession; • unexpected changes in trading policies, regulatory requirements, tariffs, and other barriers; • restrictions on the repatriation of earnings; • potentially adverse tax consequences, such as changes in tax laws and statutory tax rates; • the impact of differences in the governmental, legal and regulatory environment in foreign jurisdictions, as well as U.S. laws and regulations related to our foreign operations; • political developments, geopolitical unrest or other conflicts or natural disasters in foreign nations; and • civil disturbances or other catastrophic events that reduce business activity.
Risks Related to Our International Operations Our international operations create risks Our international operations carry financial and business risks, including: • adverse social, political and economic conditions, such as inflation, rising interest rates and risk of global or regional recession; • unexpected changes in trading policies, regulatory requirements, tariffs, and other barriers; • restrictions on the repatriation of earnings; • potentially adverse tax consequences, such as changes in tax laws and statutory tax rates; 17 Table of Contents • the impact of differences in the governmental, legal and regulatory environment in foreign jurisdictions, as well as U.S. laws and regulations related to our foreign operations; • political developments, geopolitical unrest or other conflicts or natural disasters in foreign nations; and • civil disturbances or other catastrophic events that reduce business activity.
Information, technology systems or service failures, or a cybersecurity attack or other compromise of our or our client's confidential or proprietary information, could have a material adverse effect on our reputation, business and results of operations We rely upon our information and technology infrastructure and systems to operate, manage and run our business and to provide services to our clients.
Information, technology systems or service failures, or a cybersecurity incident or other compromise of our or our client's confidential or proprietary information, as well as any violation of data protection laws, could have a material adverse effect on our reputation, business and results of operations We rely upon our information and technology infrastructure and systems, including from third parties, to operate, manage and run our business and to provide services to our clients.
The costs of complying with these laws and any fines resulting from lack of compliance, and the other costs of protecting our and our clients' confidential information, could have a material effect on our financial results.
In addition to directly applying, our clients impose contractual obligations regarding compliance with these laws. The costs of complying with these laws and any fines resulting from lack of compliance, and the other costs of protecting our and our clients' confidential information, could have a material effect on our financial results.
Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to obtain and use information that we regard as proprietary. Litigation may be necessary in the future to enforce our proprietary rights, to protect our trade secrets, to determine the validity and scope of the proprietary rights of others, or to defend against claims of infringement or invalidity.
Litigation may be necessary in the future to enforce our proprietary rights, to protect our trade secrets, to determine the validity and scope of the proprietary rights of others, or to defend against claims of infringement or invalidity.
We must pay competitive market wages for these employee consultants and increased competition for our target candidates could adversely affect our margins and results of operations. 10 Table of Contents Maintaining our professional reputation is crucial to our future success Our ability to secure new engagements and hire qualified consultants as employees depends heavily on our overall reputation as well as the individual reputations of our employee consultants and principal non-employee experts.
Maintaining our professional reputation is crucial to our future success Our ability to secure new engagements and hire qualified consultants as employees depends heavily on our overall reputation as well as the individual reputations of our employee consultants and principal non-employee experts.
It may also require changes to the current accounting treatment of certain transactions and the way they are reported in our financial statements.
It may also require changes to the current accounting treatment of certain transactions and the way they are reported in our financial statements. Additionally, such a change in accounting standards or practices may require us to enhance our internal accounting systems and processes, as well as our internal control over financial reporting.
In addition, our information and technology systems may be affected by or subject to events that are out of our control, including, but not limited to, cybersecurity or other malicious attacks, which continue to evolve and pose a constant risk, unauthorized system intrusions by unknown third parties, viruses, malicious software, worms, failures in our or our third party hosting sites' (whether hosted offsite or in the cloud) information and technology systems, disruptions in the Internet or electricity grids, natural disasters, and terrorism.
Examples of these events include malicious attacks, unauthorized system intrusions by unknown third parties, viruses, malicious software, ransomware, worms, insider threats, failures in our or our third party hosting sites’ (whether hosted offsite or in the cloud) information and technology systems, unavailability of backup restoration, disruptions in the Internet or electricity grids, natural disasters, and terrorism.
These agreements, however, may offer us only limited protection and may not be enforceable in every jurisdiction. In addition, we may incur substantial costs trying to enforce these agreements. Our services may involve the development of custom business processes or solutions for specific clients.
In addition, we may incur substantial costs trying to enforce these agreements. Our services may involve the development of custom business processes or solutions for specific clients. In some cases, the clients retain ownership or impose restrictions on our ability to use the business processes or solutions developed from these projects.
In some cases, the clients retain ownership or impose restrictions on our ability to use the business processes or solutions developed from these projects. Issues relating to the ownership of business processes or solutions can be complicated, and disputes could arise that affect our ability to resell or reuse business processes or solutions we develop for clients.
Issues relating to the ownership of business processes or solutions can be complicated, and disputes could arise that affect our ability to resell or reuse business processes or solutions we develop for clients. In recent years, there has been significant litigation in the U.S. involving patents and other intellectual property rights.
Revenue generated from fixed-price contracts was approximately 18% of our total revenues for the year ended December 30, 2023. 16 Table of Contents We could incur substantial costs protecting our proprietary rights from infringement or defending against a claim of infringement As a professional services organization, we may rely on post-employment restrictions with some of our employees and non-employee experts to protect our proprietary rights.
We could incur substantial costs protecting our proprietary rights from infringement or defending against a claim of infringement As a professional services organization, we may rely on post-employment restrictions with some of our employees and non-employee experts to protect our proprietary rights. These agreements, however, may offer us only limited protection and may not be enforceable in every jurisdiction.
Additionally, such a change in accounting standards or practices may require us to enhance our internal accounting systems and processes, as well as our internal control over financial reporting. 15 Table of Contents Our failure to execute our business strategy or manage future growth successfully could adversely affect our revenues and results of operations Any failure on our part to execute our business strategy or manage future growth successfully could adversely affect our revenues and results of operations.
Our failure to execute our business strategy or manage future growth successfully could adversely affect our revenues and results of operations Any failure on our part to execute our business strategy or manage future growth successfully could adversely affect our revenues and results of operations.
In recent years, there has been significant litigation in the U.S. involving patents and other intellectual property rights. We could incur substantial costs in prosecuting or defending any intellectual property litigation, which could adversely affect our operating results and financial condition.
We could incur substantial costs in prosecuting or defending any intellectual property litigation, which could adversely affect our operating results and financial condition. Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to obtain and use information that we regard as proprietary.
Increasing scrutiny and changing expectations from governmental organizations, investors, clients and our colleagues with respect to our ESG-related practices and those of our clients may impose additional costs on us or expose us to new or additional risks There is increased regulation and focus, including under the European Union’s Corporate Sustainability Reporting Directive and from other governmental organizations, and our investors, clients and employees, on ESG issues such as environmental stewardship, climate change, diversity and inclusion, racial justice and workplace culture conduct.
Increasing scrutiny and changing expectations from governmental organizations, investors, clients and our colleagues with respect to our ESG-related practices and those of our clients may impose additional costs on us or expose us to new or additional risks There is varied regulation and focus on ESG matters across different jurisdictions, and stakeholder views and priorities regarding these matters continue to evolve and sometimes diverge.
In addition, our or our clients' sensitive, confidential or proprietary information could be compromised or corrupted, whether intentionally or unintentionally, by our employees, outside consultants, vendors, or rogue third-party "hackers" or enterprises.
This client information could be compromised or corrupted because of groups that include without limitation our employees, outside consultants, vendors, or rogue third-party "hackers" or enterprises (including nation-state sponsored groups).
Removed
A breach or compromise of the security of our information technology systems or infrastructure, or our processes for securing sensitive, confidential or proprietary information, whether due to a cybersecurity attack or otherwise, could result 12 Table of Contents in the loss or misuse of this information.
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We must pay competitive market wages for these employee consultants and increased competition for our target candidates could adversely affect our margins and results of operations.
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In addition, many of our clients are in highly regulated industries, and regulatory and legislative changes affecting these industries could impact the market for our service offerings, render our current service offerings obsolete, or increase the competition among providers of these services.
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Additionally, failure to comply with governmental, regulatory and legal requirements or with our company-wide policies could lead to 10 Table of Contents governmental or legal proceedings that could expose us to significant liabilities and damage our reputation.
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Insurance and claims expenses could significantly reduce our profitability We are exposed to claims related to group health insurance. We self-insure a portion of the risk associated with these claims.
Added
Our information and technology systems may be affected by or subject to events that are out of our control, including, but not limited to, the possibility of disruptions or outages or cybersecurity incidents which continue to evolve (including from emerging technologies such as AI) and pose a constant risk.
Removed
If the number or severity of claims increases, or we are required to accrue or pay additional amounts because the claims prove to be more severe than our original assessment, our operating results would be adversely affected. Our future insurance and claims expense might exceed historical levels, which could reduce our earnings. We expect to periodically assess our self-insurance strategy.
Added
In the past we have experienced, and we anticipate we will continue to experience cybersecurity threats to our systems. In addition, our or our clients' sensitive, confidential or proprietary information could be compromised, corrupted, or lost whether intentionally or unintentionally, by various causes such as an inadvertent disclosure or cybersecurity incident (as described above).
Removed
We are required to periodically evaluate and adjust our claims reserves to reflect our experience. However, ultimate results may differ from our estimates, which could result in losses over our reserved amounts.
Added
Although we have insurance intended to provide coverage for cybersecurity incidents, data protective violations, and similar concepts, the level of coverage may not be sufficient for the event or the event may be outside of the policy’s coverage.
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We maintain individual and aggregate medical plan stop loss insurance with a licensed insurance carrier to limit our ultimate risk exposure for any one case and for our total liability. Many businesses are experiencing the impact of increased medical costs as well as greater variability in ongoing costs.
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Our results of operations and consequently our business may be adversely affected if we are not able to maintain our current bill rates, compensation costs and/or utilization rate Our revenues and profitability are largely based on the bill rates charged to our clients, compensation costs and the utilization of our consultants.
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As a result, our insurance and claims expense could increase, or we could raise our self-insured retention, when our policies are renewed. If these expenses increase or we experience a claim for which coverage is not provided, results of our operations and financial condition could be materially and adversely affected.
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The European Union’s Corporate Sustainability Reporting Directive and from other governmental organizations, and our investors, clients and employees, maintain interest in ESG issues such as environmental stewardship, climate change, and workforce development. How these various stakeholders evaluate and prioritize different ESG initiatives may shift over time in ways that are difficult to predict.
Added
Additionally, the relative importance that different stakeholders place on various ESG initiatives may conflict, making it difficult to satisfy all stakeholder expectations.
Added
Revenue generated from fixed-price contracts was approximately 18% of our total revenues for the year ended December 28, 2024.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe engage independent third-parties to conduct ethical hacks of key systems, aiding our understanding of control effectiveness and facilitating the implementation of more robust controls. We periodically engage with a third-party assessment firm to conduct reviews of our overall program and to examine our security controls to help us better align our cybersecurity program with industry standards.
Biggest changeWe periodically engage with a third-party assessment firm to conduct reviews of our overall program and to examine our security controls to help us better align our cybersecurity 19 Table of Contents program with industry standards.
Under the oversight of the Board of Directors, cybersecurity risk is managed under the direction of our Information Security department, the ISC and the Enterprise Risk Committee (“ERC”). The ISC is a standing committee that acts as a point of escalation for security incidents and is headed by our Chief Information Officer (“CIO”).
Under the oversight of the Board of Directors, cybersecurity risk is managed under the direction of our Information Security department, the Information Security Council ("ISC") and the Enterprise Risk Committee (“ERC”). The ISC is a standing committee that acts as a point of escalation for security incidents and is headed by our Chief Information Officer (“CIO”).
To monitor and decrease the risks from cybersecurity threats associated with our use of third-party service providers, potential new vendors with a greater degree of system or data access are subjected to a security vetting process prior to engagement. Existing critical vendors that store or process company or client information are reviewed annually through commercially reasonable efforts.
To monitor and decrease the risks from cybersecurity threats associated with our use of third-party service providers, potential new vendors with a greater degree of system or data access are subjected to a security vetting process prior to engagement. Existing critical vendors that store or process company or client information are reviewed annually through commercially reasonable efforts such as questionnaires.
Management and Board Oversight Our management is responsible for the day-to-day management of the risks that we face, while our Board of Directors, as a whole, has responsibility for the oversight of our enterprise risk management.
Management and Board Oversight Our management is responsible for the day-to-day management of the risks that we face, while our Board of Directors, as a whole, has responsibility for the oversight of our enterprise risk management, including cybersecurity.
Our CIO has over 20 years of experience in the IT field, holds a Bachelor of Science in Information Systems and is MCSE certified. Other members of the ISC include IT senior leadership, IT operations and corporate management and a member from our Forensic & Cyber Investigations practice.
Our CIO has over 20 years of experience in the IT field, holds a Bachelor of Science in Information Systems and is Microsoft Certified Solutions Expert (MCSE) certified. Other members of the ISC include IT senior leadership, IT operations and corporate management and a member from our Forensic & Cyber Investigations practice.
Once a potential cybersecurity incident is identified, IT personnel assigned to the incident assess the severity of the event and sensitivity of any compromised data and follow the reporting and escalation procedures set forth in the incident response plan. Events that could have a high impact or that require additional judgment are escalated to the Information Security Council (“ISC”).
Once a potential cybersecurity incident is identified, IT personnel assigned to the incident assess the severity of the event and sensitivity of any compromised data and follow the reporting and escalation procedures set forth in the incident response plan. Events that could have a high impact or that require additional judgment are escalated to the ISC.
See “Risk Factors–Risks Related to Our Client 20 Table of Contents Relationships–Information, technology systems or service failures, or a cybersecurity attack or other compromise of our or our client's confidential or proprietary information, could have a material adverse effect on our reputation, business and results of operations.”
See “Risk Factors–Risks Related to Our Client Relationships–Information, technology systems or service failures, or a cybersecurity incident or other compromise of our or our client's confidential or proprietary information, as well as any violation of data protection laws, could have a material adverse effect on our reputation, business and results of operations.”
Should a cybersecurity incident be escalated to the ISC, the ISC notifies the Chief Legal Counsel in his capacity as chair of the ERC. In the event of a material cybersecurity incident, the Chief Legal Counsel, as chair of the ERC, would inform the Board of Directors or the executive committee thereof.
Should a cybersecurity incident be escalated to the ISC, the ISC notifies the Chief Legal Counsel in his capacity as chair of the ERC.
Removed
Cybersecurity Risks As of December 30, 2023, we have not had any material incidences involving cybersecurity attacks. However, we face risks associated with cybersecurity threats.
Added
We engage independent third-parties to conduct ethical hacks of key systems, aiding our understanding of control effectiveness and facilitating the implementation of more robust controls.
Added
In the event of a cybersecurity incident that meets certain characteristics as defined in the incident response plan, the Chief Legal Counsel, as chair of the ERC, would inform the Board of Directors or the executive committee thereof. Cybersecurity Risks As of December 28, 2024, we have not had any material incidences involving cybersecurity attacks.
Added
However, we previously have faced, and anticipate we will continue to face risks associated with cybersecurity threats.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed1 unchanged
Biggest changeItem 2. Properties In the aggregate, as of December 30, 2023, we leased approximately 390,000 square feet of office space in locations around the world, including Boston, San Francisco, Oakland, New York, Chicago, London, and Washington, D.C. All of our offices are electronically linked and have access to our core consulting tools.
Biggest changeItem 2. Properties In the aggregate, as of December 28, 2024, we leased approximately 407,000 square feet of office space in locations around the world, including Boston, San Francisco, Oakland, New York, Chicago, London, and Washington, D.C. 20 Table of Contents All of our offices are electronically linked and have access to our core consulting tools.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIssuer Purchases of Equity Securities 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) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2) October 1, 2023 to October 28, 2023 — $ — — $ 19,277,193 October 29, 2023 to November 25, 2023 84,187 $ 93.13 84,187 $ 11,436,962 November 26, 2023 to December 30, 2023 10,469 $ 97.68 — $ 11,436,962 _________________________ (1) During the five weeks ended December 30, 2023, we accepted 10,469 shares of our common stock as a tax withholding from certain of our employees in connection with the vesting of restricted stock units that occurred during the period, pursuant to the terms of our 2006 equity incentive plan, at the average price per share of $97.68.
Biggest changeIssuer Purchases of Equity Securities 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) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(2) September 29, 2024 to October 26, 2024 — $ — — $ 13,088,568 October 27, 2024 to November 23, 2024 — $ — — $ 13,088,568 November 24, 2024 to December 28, 2024 5,782 $ 203.93 — $ 13,088,568 Total 5,782 $ 203.93 — _________________________ (1) During the five weeks ended December 28, 2024, we accepted 5,782 shares of our common stock as a tax withholding from certain of our employees in connection with the vesting of restricted stock units that occurred during the period, pursuant to the terms of our 2006 equity incentive plan, at the average price per share of $203.93.
We initiated a quarterly dividend in the fourth quarter of fiscal 2016 and continued to pay quarterly dividends throughout fiscal 2023. 22 Table of Contents 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 of Directors.
We initiated a quarterly dividend in the fourth quarter of fiscal 2016 and continued to pay quarterly dividends throughout fiscal 2024. 22 Table of Contents 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 of Directors.
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 fourth quarter of fiscal 2023.
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 fourth quarter of fiscal 2024.
The graph assumes the $100 was invested on the last calendar day of 2018 in stock or an index, where the index is calculated on a month-end basis.
The graph assumes the $100 was invested on the last calendar day of 2019 in stock or an index, where the index is calculated on a month-end basis.
We had approximately 62 holders of record of our common stock as of February 23, 2024. This number does not include shareholders for whom shares were held in a "nominee" or "street" name. Repurchases of Equity Securities. The following table provides information about our repurchases of shares of our common stock during the fiscal quarter ended December 30, 2023.
We had approximately 49 holders of record of our common stock as of February 14, 2025. This number does not include shareholders for whom shares were held in a "nominee" or "street" name. Repurchases of Equity Securities. The following table provides information about our repurchases of shares of our common stock during the fiscal quarter ended December 28, 2024.
(2) On February 29, 2024, we announced that our Board of Directors authorized an expansion to our existing share repurchase program of an additional $35.0 million of outstanding shares of our common stock.
(2) On February 20, 2025, we announced that our Board of Directors authorized an expansion to our existing share repurchase program of an additional $45.0 million of outstanding shares of our common stock.
Approximately $11.4 million and $46.4 million was available for future repurchases under this program as of December 30, 2023 and February 29, 2024, respectively. We expect to continue to repurchase shares under this program. Shareholder Return Performance Graph and Dividend Information.
Approximately $13.1 million and $58.1 million was available for future repurchases under this program as of December 28, 2024 and February 20, 2025, respectively. We expect to continue to repurchase shares under this program. Shareholder Return Performance Graph and Dividend Information.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN Among CRA International, Inc., the NASDAQ Composite Index, and a Peer Group December 29, 2018 December 28, 2019 January 2, 2021 January 1, 2022 December 31, 2022 December 30, 2023 CRA International, Inc. $ 100.00 $ 133.34 $ 129.55 $ 240.51 $ 319.70 $ 261.99 NASDAQ Composite $ 100.00 $ 136.69 $ 198.10 $ 242.03 $ 163.28 $ 236.17 Peer Group $ 100.00 $ 152.42 $ 167.78 $ 213.25 $ 210.07 $ 236.16 _______________________________________ (1) This performance graph shall not be deemed to be "soliciting material" or to be "filed" with the SEC for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, and shall not be deemed incorporated by reference into any filing of CRA International, Inc. under the Securities Act of 1933, as amended.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN Among CRA International, Inc., the NASDAQ Composite Index, and a Peer Group December 28, 2019 January 2, 2021 January 1, 2022 December 31, 2022 December 30, 2023 December 28, 2024 CRA International, Inc. $ 100.00 $ 97.16 $ 180.37 $ 239.77 $ 196.49 $ 375.29 NASDAQ Composite $ 100.00 $ 144.92 $ 177.06 $ 119.45 $ 172.77 $ 223.87 Peer Group $ 100.00 $ 110.08 $ 139.92 $ 137.83 $ 154.95 $ 158.19 _______________________________________ (1) This performance graph shall not be deemed to be "soliciting material" or to be "filed" with the SEC for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, and shall not be deemed incorporated by reference into any filing of CRA International, Inc. under the Securities Act of 1933, as amended.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

56 edited+2 added−8 removed63 unchanged
Biggest changeOur long-term incentive program, or "LTIP," as a framework for equity grants made under our 2006 equity incentive plan to our senior corporate leaders, practice leaders, and key revenue generators. The equity awards granted under the LTIP include stock options, time-vesting restricted stock units, and performance-vesting restricted stock units.
Biggest changeOur Amended and Restated 2006 Equity Incentive Plan, as amended (the "2006 Equity Plan"), authorizes the grant of a variety of incentive and performance equity awards to our directors, employees and non-employee experts, including stock options, shares of restricted stock, restricted stock units, and other equity awards. 29 Table of Contents Our long-term incentive program, or "LTIP," as a framework for equity grants made under our 2006 equity incentive plan to our senior corporate leaders, practice leaders, and key revenue generators.
Future Capital and Liquidity Needs We anticipate that our future capital and liquidity needs will principally consist of funds required for: • operating and general corporate expenses relating to the operation of our business, including the compensation of our employees under various annual bonus or long-term incentive compensation programs; • the hiring of individuals to replenish and expand our employee base; • capital expenditures, primarily for information technology equipment, office furniture and leasehold improvements; • debt service and repayments, including interest payments on borrowings from our revolving credit facility; • share repurchases under programs that we may have in effect from time to time; • dividends to shareholders; • potential acquisitions of businesses that would allow us to diversify or expand our service offerings; • contingent obligations related to our acquisitions; and • other known future contractual obligations.
Future Capital and Liquidity Needs We anticipate that our future capital and liquidity needs will principally consist of funds required for: • operating and general corporate expenses relating to the operation of our business, including the compensation of our employees under various annual bonus or long-term incentive compensation programs; • the hiring of individuals to replenish and expand our employee base; • capital expenditures, primarily for information technology equipment, office furniture and leasehold improvements; • debt service and repayments, including interest payments on borrowings from our revolving credit facility; 30 Table of Contents • share repurchases under programs that we may have in effect from time to time; • dividends to shareholders; • potential acquisitions of businesses that would allow us to diversify or expand our service offerings; • contingent obligations related to our acquisitions; and • other known future contractual obligations.
Results of Operations The following table provides operating information as a percentage of revenues for the periods indicated: Fiscal Year Ended December 30, 2023 (52 weeks) December 31, 2022 (52 weeks) January 1, 2022 (52 weeks) Revenues 100.0 % 100.0 % 100.0 % Costs of services (exclusive of depreciation and amortization) 70.5 69.4 70.7 Selling, general and administrative expenses 18.4 18.6 17.2 Depreciation and amortization 1.9 2.0 2.3 Income from operations 9.2 9.9 9.8 Interest expense, net (0.6) (0.3) (0.2) Foreign currency gains (losses), net (0.2) 0.3 (0.1) Income before provision for income taxes 8.4 10.0 9.6 Provision for income taxes 2.2 2.6 2.2 Net income 6.2 % 7.4 % 7.4 % 26 Table of Contents Fiscal 2023 Compared to Fiscal 2022 Our fiscal year end is the Saturday nearest December 31 of each year.
Results of Operations The following table provides operating information as a percentage of revenues for the periods indicated: Fiscal Year Ended December 28, 2024 (52 weeks) December 30, 2023 (52 weeks) December 31, 2022 (52 weeks) Revenues 100.0 % 100.0 % 100.0 % Costs of services (exclusive of depreciation and amortization) 69.8 70.5 69.4 Selling, general and administrative expenses 18.2 18.4 18.6 Depreciation and amortization 1.7 1.9 2.0 Income from operations 10.3 9.2 9.9 Interest expense, net (0.6) (0.6) (0.3) Foreign currency gains (losses), net — (0.2) 0.3 Income before provision for income taxes 9.6 8.4 10.0 Provision for income taxes 2.8 2.2 2.6 Net income 6.8 % 6.2 % 7.4 % 26 Table of Contents Fiscal 2024 Compared to Fiscal 2023 Our fiscal year end is the Saturday nearest December 31 of each year.
Borrowings under the revolving credit facility bear interest at a rate per annum equal to one of the following rates, at our election, plus an applicable margin as described below: (i) in the case of borrowings in U.S. dollars by us, the Base Rate (as defined in the Credit Agreement), (ii) in the case of borrowings in U.S. dollars, a rate based on Term SOFR (as defined in the Credit Agreement) for the applicable interest period, (iii) in the case of borrowings in Euros, EURIBOR (as defined in the Credit Agreement) for the applicable interest period, (iv) in the case of borrowings in Pounds Sterling, a daily rate based on SONIA (as defined in the Credit Agreement), (v) in the case of borrowings in Canadian Dollars, CDOR (as defined in the Credit Agreement) for the applicable interest period, (vi) in the case of borrowings in Swiss Francs, a daily rate based on SARON (as defined in the Credit Agreement), or (vii) in the case of borrowings in any other Alternate Currency (as defined in the Credit Agreement), the relevant daily or term rate determined as provided in the Credit Agreement.
Borrowings under the revolving credit facility bear interest at a rate per annum equal to one of the following rates, at our election, plus an applicable margin as described below: (i) in the case of borrowings in U.S. dollars, the Base Rate (as defined in the Credit Agreement), (ii) in the case of borrowings in U.S. dollars, a rate based on Term SOFR (as defined in the Credit Agreement) for the applicable interest period, (iii) in the case of borrowings in Euros, EURIBOR (as defined in the Credit Agreement) for the applicable interest period, (iv) in the case of borrowings in Pounds Sterling, a daily rate based on SONIA (as defined in the Credit Agreement), (v) in the case of borrowings in Canadian Dollars, Term CORRA (as defined in the Credit Agreement) for the applicable interest period, (vi) in the case of borrowings in Swiss Francs, a daily rate based on SARON (as defined in the Credit Agreement), or (vii) in the case of borrowings in any other Alternate Currency (as defined in the Credit Agreement), the relevant daily or term rate determined as provided in the Credit Agreement.
These financial targets may include a measure of revenue generation, profitability, or both. The amounts of the awards to be paid under these compensation arrangements could fluctuate depending on future performance during the applicable measurement periods. Changes in the 29 Table of Contents estimated awards are expensed prospectively over the remaining service period.
These financial targets may include a measure of revenue generation, profitability, or both. The amounts of the awards to be paid under these compensation arrangements could fluctuate depending on future performance during the applicable measurement periods. Changes in the estimated awards are expensed prospectively over the remaining service period.
Lease Commitments We are a lessee under certain operating leases for office space and equipment, which have remaining lease terms between one and approximately eight years, many of which include one or more options to extend the term for periods of up to five years for each option.
Lease Commitments We are a lessee under certain operating leases for office space and equipment, which have remaining lease terms between one and eleven years, many of which include one or more options to extend the term for periods of up to five years for each option.
Factors Affecting Future Performance Item 1A. Risk Factors of this annual report on Form 10-K sets forth risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements contained in this annual report on Form 31 Table of Contents 10-K.
Factors Affecting Future Performance Item 1A. Risk Factors of this annual report on Form 10-K sets forth risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements contained in this annual report on Form 10-K.
As of December 30, 2023, our cash accounts were concentrated at two financial institutions, which potentially exposes us to credit risks. The financial institutions are creditworthy and we have not experienced any losses related to such accounts. We do not believe that there is significant risk of non-performance by the financial institutions, and its cash on deposit is fully liquid.
As of December 28, 2024, our cash accounts were concentrated at two financial institutions, which potentially exposes us to credit risks. The financial institutions are creditworthy and we have not experienced any losses related to such accounts. We do not believe that there is significant risk of non-performance by the financial institutions, and its cash on deposit is fully liquid.
Utilization was 70%, 75%, and 74% for fiscal 2023, fiscal 2022, and fiscal 2021, respectively. We experience certain seasonal effects that impact our revenue. Concurrent vacations or holidays taken by a large number of consultants can adversely impact our revenue.
Utilization was 75%, 70%, and 75% for fiscal 2024, fiscal 2023, and fiscal 2022, respectively. We experience certain seasonal effects that impact our revenue. Concurrent vacations or holidays taken by a large number of consultants can adversely impact our revenue.
Additionally, for the period from January 16 to July 15 of each calendar year, CRA may elect to not increase the revolving credit facility to $250.0 million. The revolving credit facility includes a $25.0 million sublimit for the issuance of letters of credit.
Additionally, for the period from January 16 to July 15 of each calendar year, CRA may elect to not increase the revolving 28 Table of Contents credit facility to $250.0 million. The revolving credit facility includes a $25.0 million sublimit for the issuance of letters of credit.
Any indebtedness outstanding under the revolving credit facility may become immediately due upon the occurrence of stated events of default, including our failure to pay principal, interest or fees, or upon the breach of any covenant. As of December 30, 2023, we were in compliance with the covenants of the Credit Agreement.
Any indebtedness outstanding under the revolving credit facility may become immediately due upon the occurrence of stated events of default, including our failure to pay principal, interest or fees, or upon the breach of any covenant. As of December 28, 2024, we were in compliance with the covenants of the Credit Agreement.
Although we anticipate paying regular quarterly dividends on our common stock for the foreseeable future, the declaration, timing and amounts of any 30 Table of Contents such dividends remain subject to the discretion of our Board of Directors.
Although we anticipate paying regular quarterly dividends on our common stock for the foreseeable future, the declaration, timing and amounts of any such dividends remain subject to the discretion of our Board of Directors.
Liquidity and Capital Resources We believe that current cash, cash equivalents, cash generated from operations, and amounts available under our revolving credit facility will be sufficient to meet our anticipated working capital and capital expenditure requirements for at 27 Table of Contents least the next 12 months.
Liquidity and Capital Resources We believe that current cash, cash equivalents, cash generated from operations, and amounts available under our revolving credit facility will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months.
Certain of our operating leases have terms that impose asset retirement obligations due to office modifications or the periodic redecoration of the premises, which are included in other liabilities on our consolidated balance sheets and are recorded at a value based on their estimated discounted cash flows.
Certain of our operating leases have terms that impose asset retirement obligations due to office modifications or the periodic redecoration of the premises, which are included in accrued expenses and deferred compensation and other non-current liabilities in our consolidated balance sheets and are recorded at a value based on their estimated discounted cash flows.
During the fiscal years ended December 30, 2023, December 31, 2022, and January 1, 2022, we paid dividends of $10.8 million, $9.6 million, and $8.3 million, respectively. Impact of Inflation To date, inflation has not had a material impact on our financial results.
During the fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, we paid dividends of $12.3 million, $10.8 million, and $9.6 million, respectively. Impact of Inflation To date, inflation has not had a material impact on our financial results.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations This section of the Form 10-K does not address certain items regarding the year ended January 1, 2022. Discussion and analysis of year-to-year comparisons between fiscal 2022 and fiscal 2021 not included in this Form 10-K can be found in "Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations This section of the Form 10-K does not address certain items regarding the year ended December 31, 2022. Discussion and analysis of year-to-year comparisons between fiscal 2023 and fiscal 2022 not included in this Form 10-K can be found in "Item 7.
Share Repurchases In February 2024 and March 2023, our Board of Directors authorized an expansion to our existing share repurchase program, authorizing the purchase of an additional $35.0 million and $20.0 million, respectively, of our common stock.
Share Repurchases In February 2025 and February 2024, our Board of Directors authorized an expansion to our existing share repurchase program, authorizing the purchase of an additional $45.0 million and $35.0 million, respectively, of our common stock.
Management's Discussion and Analysis of Financial Conditions and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2022.
Management's Discussion and Analysis of Financial Conditions and Results of Operations" of our Annual Report on Form 10-K for the year ended December 30, 2023.
The decrease in diluted weighted average shares outstanding was primarily due to the repurchase of shares of our common stock since December 31, 2022, 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.
The decrease in diluted weighted average shares outstanding was primarily due to the repurchase of shares of our common stock since December 30, 2023, offset in part by the issuance or vesting of shares of restricted stock and time-vesting restricted stock units.
The maturities of lease liabilities, as of December 30, 2023, related to office space and equipment are discussed in Note 5 in our Notes to Consolidated Financial Statements. We have no additional operating leases we have committed to that have not yet commenced.
The maturities of lease liabilities, as of December 28, 2024, related to office space and equipment are discussed in Note 4 in our Notes to Consolidated Financial Statements. We have no additional significant operating leases we have committed to that have not yet commenced.
International Operations Revenues outside of the U.S. accounted for approximately 21% of our total revenues in fiscal 2023 and 20% of our total revenues in both fiscal 2022 and fiscal 2021, respectively. Revenue by country is detailed in Note 3 to our Notes to Consolidated Financial Statements.
International Operations Revenues outside of the U.S. accounted for approximately 19% of our total revenues in fiscal 2024, 21% of our total revenues in fiscal 2023, and 20% of our total revenues in fiscal 2022. Revenue by country is detailed in Note 2 to our Notes to Consolidated Financial Statements.
These increases were partially offset by a decrease of $0.9 million in expense related to contingent consideration in fiscal 2023 compared to fiscal 2022. As a percentage of net revenue, costs of services increased to 70.5% for fiscal 2023 as compared to 69.4% for fiscal 2022. Selling, General and Administrative Expenses.
These increases were partially offset by a decrease of $0.2 million in expense related to contingent consideration in fiscal 2024 compared to fiscal 2023. As a percentage of net revenue, costs of services decreased to 69.8% for fiscal 2024 as compared to 70.5% for fiscal 2023. Selling, General and Administrative Expenses.
There were no borrowings outstanding under the revolving credit facility as of December 30, 2023. As of December 30, 2023, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $4.5 million.
There were no borrowings outstanding under the revolving credit facility as of December 28, 2024. As of December 28, 2024, the amount available under the revolving credit facility was reduced by certain letters of credit outstanding, which amounted to $4.0 million.
At December 30, 2023, we expect to incur asset retirement obligation or redecoration obligation costs over the next twelve months of $0.1 million. The remainder of our asset retirement obligations and redecoration obligations are approximately $2.8 million and are expected to be settled between fiscal 2026 and fiscal 2031 28 Table of Contents when the underlying leases terminate.
At December 28, 2024, we expect to incur asset retirement obligation or redecoration obligation costs over the next twelve months of $0.1 million. The remainder of our asset retirement obligations and redecoration obligations are approximately $3.1 million and are expected to be settled between fiscal 2026 and fiscal 2035 when the underlying leases terminate.
Intangible assets that are separate from goodwill and have determinable useful lives are valued separately. Fair value measurements require extensive use of estimates and assumptions, including estimates of future cash flows to be generated by the acquired assets, discount rates that we believe reflect the risk factors associated with the related cash flows, and estimates of useful lives.
Fair value measurements require extensive use of estimates and assumptions, including estimates of future cash flows to be generated by the acquired assets, discount rates that we believe reflect the risk factors associated with the related cash flows, and estimates of useful lives.
We have sufficient sources of liquidity in the U.S., including cash flow from operations and availability on our revolving credit facility, to fund U.S. operations over the next 12 months without the need to repatriate funds from our foreign subsidiaries.
At December 28, 2024, $0.4 million of our cash and cash equivalents were held within the U.S. We have sufficient sources of liquidity in the U.S., including cash flow from operations and availability on our revolving credit facility, to fund U.S. operations over the next 12 months without the need to repatriate funds from our foreign subsidiaries.
During fiscal 2023, fiscal 2022, and fiscal 2021, we repurchased and retired 296,158 shares, 319,534 shares, and 270,908 shares, respectively, under our share repurchase program at an average price per share of $106.08, $86.47, and $72.53, respectively.
During fiscal 2024, fiscal 2023, and fiscal 2022, we repurchased and retired 206,379 shares, 296,158 shares, and 319,534 shares, respectively, under our share repurchase program at an average price per share of $161.59, $106.08, and $86.47, respectively.
These dividends are anticipated to be funded through cash flow from operations, available cash on hand, and/or borrowings under our revolving credit facility.
Dividends to Shareholders 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.
We had approximately $11.4 million and $46.4 million available for future repurchases under our share repurchase program as of December 30, 2023 and February 23, 2024, respectively. We plan to finance future repurchases with available cash, cash from future operations and funds from our revolving credit facility. We expect to continue to repurchase shares under our share repurchase program.
We had approximately $13.1 million and $58.1 million available for future repurchases under our share repurchase program as of December 28, 2024 and February 20, 2025, respectively. We plan to finance future repurchases with available cash, cash from future operations and funds from our revolving credit facility. We expect to continue to repurchase shares under our share repurchase program.
We used $44.5 million of net cash in financing activities during fiscal 2023, primarily as a result of $31.4 million of repurchases of our common stock, payment of $10.8 million of cash dividends and dividend equivalents, and tax withholding payments reimbursed by restricted shares of $3.1 million.
We used $48.8 million of net cash in financing activities during fiscal 2024, primarily as a result of $33.3 million of repurchases of our common stock, payment of $12.3 million of cash dividends and dividend equivalents, and tax withholding payments reimbursed by restricted shares of $3.2 million.
We continually monitor the credit ratings of these institutions. Sources and Uses of Cash. During fiscal 2023, net cash provided by operating activities was $60.1 million. Net income was $38.5 million for fiscal 2023.
We continually monitor the credit ratings of these institutions. Sources and Uses of Cash. During fiscal 2024, net cash provided by operating activities was $49.7 million. Net income was $46.7 million for fiscal 2024.
Utilization decreased to 70% for fiscal 2023 from 75% for fiscal 2022, while consultant headcount increased by 65 consultants during fiscal 2023. Billable hours increased by 4.1% for fiscal 2023 when compared to fiscal 2022. Overall, revenues outside of the U.S. increased to 21% of net revenues for fiscal 2023 from 20% for fiscal 2022.
Utilization increased to 75% for fiscal 2024 from 70% for fiscal 2023, while consultant headcount decreased by 58 consultants during fiscal 2024. Billable hours remained relatively flat for fiscal 2024 when compared to fiscal 2023. Overall, revenues outside of the U.S. decreased to 19% of net revenues for fiscal 2024 from 21% for fiscal 2023.
Selling, general and administrative expenses increased by $5.0 million, or 4.6%, to $115.1 million for fiscal 2023 from $110.1 million for fiscal 2022.
Selling, general and administrative expenses increased by $10.0 million, or 8.6%, to $125.1 million for fiscal 2024 from $115.1 million for fiscal 2023.
Costs of services (exclusive of depreciation and amortization) increased by $29.7 million, or 7.2%, to $439.8 million for fiscal 2023 from $410.1 million for fiscal 2022.
Costs of services (exclusive of depreciation and amortization) increased by $40.1 million, or 9.1%, to $479.9 million for fiscal 2024 from $439.8 million for fiscal 2023.
Our fiscal years periodically contain 53 weeks rather than 52 weeks. Fiscal 2023 and fiscal 2022 were both 52-week years. Revenues. Revenues increased by $33.1 million, or 5.6%, to $624.0 million for fiscal 2023 from $590.9 million for fiscal 2022.
Our fiscal years periodically contain 53 weeks rather than 52 weeks. Fiscal 2024 and fiscal 2023 were both 52-week years. Revenues. Revenues increased by $63.4 million, or 10.2%, to $687.4 million for fiscal 2024 from $624.0 million for fiscal 2023.
Cash provided by operating activities included the non-cash items of right-of-use asset amortization of $14.3 million, depreciation and amortization expense of $11.6 million, deferred income tax of $4.6 million, share-based compensation expenses of $4.4 million, and other non-cash deductions of $0.6 million.
Cash provided by operating activities included the non-cash items of right-of-use asset amortization of $15.1 million, depreciation and amortization expense of $11.7 million, share-based compensation expenses of $5.3 million, and deferred income taxes of $2.9 million.
These increases were partially offset by a $0.3 million decrease in legal and professional services. Commissions to our non-employee experts experienced a decrease of $4.3 million. As a percentage of revenues, selling, general and administrative expenses decreased to 18.4% for fiscal 2023 from 18.6% for fiscal 2022.
These increases were partially offset by a $0.7 million decrease in other operating expenses. As a percentage of revenues, selling, general and administrative expenses decreased to 18.2% for fiscal 2024 from 18.4% for fiscal 2023. Commissions to non-employee experts decreased to 2.1% of revenue in fiscal 2024 compared to 2.2% of revenues in fiscal 2023. Provision for Income Taxes.
Revenues derived from fixed-price engagements decreased to 18% of net revenues for fiscal 2023 from 19% for fiscal 2022. Revenues derived from time-and-materials engagements increased to 82% of net revenues for fiscal 2023 from 81% for fiscal 2022.
Revenues derived from fixed-price engagements remained at 18% of net revenues for fiscal 2024 from fiscal 2023. Revenues derived from time-and-materials engagements remained unchanged at 82% of net revenues for fiscal 2024 from fiscal 2023.
Our LTIP allows us to grant service and performance-based cash awards in lieu of, or in addition to, equity awards to our senior corporate leaders, practice leaders, and key revenue generators. The compensation committee of our Board of Directors is responsible for approving all cash and equity awards under the LTIP.
The equity awards granted under the LTIP include stock options, time-vesting restricted stock units, and performance-vesting restricted stock units. Our LTIP allows us to grant service and performance-based cash awards in lieu of, or in addition to, equity awards to our senior corporate leaders, practice leaders, and key revenue generators.
Sources of cash for operating activities included a $8.1 million increase in incentive cash awards payable, a $4.0 million increase in accounts payable, accrued expenses, and other liabilities, a $2.7 million decrease in forgivable loans, (comprised of $21.5 million of forgivable loan issuances, net of repayments, offset by $24.2 million of forgivable loan amortization), and a $1.2 million decrease in prepaid expenses and other current assets.
Offsetting these sources of cash for operating activities included, a $22.2 million increase in accounts receivable and unbilled receivables, a $14.9 million decrease in lease liabilities, a $11.8 million increase in forgivable loans, (comprised of $42.8 million of forgivable loan issuances, net of repayments, offset by $31.0 million of forgivable loan amortization), and a $10.4 million increase in prepaid expenses and other current assets.
Indebtedness On August 19, 2022, we refinanced our revolving credit facility by entering into a Credit Agreement (the "Credit Agreement") with Bank of America, N.A., as swingline lender, a letter of credit issuing bank and administrative agent, and with Citizens Bank, N.A., as a letter of credit issuing bank.
Indebtedness CRA is party to a Credit Agreement, dated as of August 19, 2022 (as amended, the "Credit Agreement") with Bank of America, N.A., as swingline lender, a letter of credit issuing bank and administrative agent, and with Citizens Bank, N.A., as a letter of credit issuing bank.
In addition, contract assets and contract liabilities are recorded in accordance with ASC 606, as we adopted Accounting Standards Update No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers on the first day of fiscal 2022.
In addition, contract assets and contract liabilities are recorded in accordance with ASC 606, Accounting Standards Update No. 2021-08 , Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . All other tangible assets and identifiable intangible assets acquired and liabilities assumed are recorded at their fair value as of the date of acquisition.
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.
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.
This increase was due primarily to a $2.7 million increase in travel and entertainment expenses, $1.5 million increase to employee and incentive compensation, a $1.5 million increase in rent expense, a $1.4 million increase in software subscription and data services, a $0.9 million increase in training and marketing expenses, a $0.8 million increase in bad debt expense, and a $0.8 million increase in other operating expenses.
This increase was due primarily to a $4.6 million increase in employee compensation and fringe benefit costs, a $2.0 million increase in legal and professional services, a $1.6 million increase in rent expense, a $1.5 million increase in software subscription and data services, a $0.7 million increase in commissions to our non-employee experts, and $0.3 million increase in travel and entertainment expenses.
All other tangible assets and identifiable intangible assets acquired and liabilities assumed are recorded at their fair value as of the date of acquisition. The purchase price is determined as the fair value of consideration transferred. Goodwill is recognized for the excess of consideration transferred over the net value of assets acquired and liabilities assumed.
The purchase price is determined as the fair value of consideration transferred. Goodwill is recognized for the excess of consideration transferred over the net value of assets acquired and liabilities assumed. Intangible assets that are separate from goodwill and have determinable useful lives are valued separately.
Commissions to non-employee experts decreased to 2.2% of revenue in fiscal 2023 compared to 3.1% of revenues in fiscal 2022. Provision for Income Taxes. For fiscal 2023, our income tax provision was $13.8 million and the effective tax rate ("ETR") was 26.4%, as compared to a provision of $15.2 million and an effective tax rate of 25.8% for fiscal 2022.
For fiscal 2024, our income tax provision was $19.6 million and the effective tax rate ("ETR") was 29.6%, as compared to a provision of $13.8 million and an effective tax rate of 26.4% for fiscal 2023.
The increase in costs of services was due primarily to an increase of $26.0 million in employee and incentive compensation attributable to salaries and benefits associated with our increased consulting headcount, an increase in forgivable loan amortization of $2.5 million, and an increase of $1.9 million of client reimbursable expenses in fiscal 2023 compared to fiscal 2022.
The increase in costs of services was due primarily to an increase of $33.5 million in employee compensation and fringe benefit costs, an increase in forgivable loan amortization of $4.6 million, and an increase of $2.3 million of client reimbursable expenses in fiscal 2024 compared to fiscal 2023.
The ETR for fiscal 2022 was lower than our combined federal and state statutory rate primarily due to the tax benefit related to shared-based compensation, partially offset by non-deductible compensation paid to executive officers. Net Income. Net income decreased by $5.1 million to $38.5 million for fiscal 2023 from $43.6 million for fiscal 2022.
The ETR for fiscal 2024 was higher than our combined federal and state statutory rate primarily due to non-deductible meals and entertainment, non-deductible compensation paid to executive officers, the remeasurement of current year deferred tax assets, partially offset by the tax benefit related to share-based compensation.
As of December 30, 2023, we have $45.6 million of cash and cash equivalents and $195.5 million of borrowing capacity under our revolving credit facility. General. In fiscal 2023, our cash and cash equivalents increased by $14.1 million, completing the year with cash and cash equivalents of $45.6 million.
As of December 28, 2024, we have $26.7 million of cash and cash equivalents and $196.0 million of borrowing capacity under our revolving credit facility. 27 Table of Contents General. In fiscal 2024, our cash and cash equivalents decreased by $18.9 million, completing the year with cash and cash equivalents of $26.7 million.
The ETR for fiscal 2023 was approximately the same as our combined federal and state statutory rate and included offsetting items noted above in addition to nondeductible compensation paid to executive officers.
The ETR for fiscal 2023 was approximately the same as our combined federal and state statutory rate and included offsetting items stemming from the release of a valuation allowance in a foreign jurisdiction and tax benefits related to share-based compensation offset by non-deductible meals, entertainment and compensation paid to executive officers. Net Income.
The diluted net income per share was $5.39 per share for fiscal 2023, compared to diluted net income per share of $5.91 per share for fiscal 2022. Diluted weighted average shares outstanding decreased by approximately 237,000 shares to approximately 7,118,000 shares for fiscal 2023 from approximately 7,355,000 shares for fiscal 2022.
Diluted weighted average shares outstanding decreased by approximately 210,000 shares to approximately 6,908,000 shares for fiscal 2024 from approximately 7,118,000 shares for fiscal 2023.
Offsetting these sources of cash for operating activities included a $17.8 million decrease in lease liabilities, a $2.9 million increase in accounts receivable and unbilled receivables, and $0.2 million related foreign currency translation.
Sources of cash for operating activities included a $23.2 million increase in accounts payable, accrued expenses, and other liabilities and a $9.8 million increase in incentive cash awards payable.
The effective tax rate for fiscal 2023 was higher than the prior year primarily due to a decrease in the tax benefit related to share-based compensation, an increase in the U.K. statutory tax rate, and an increase in non-deductible meals and entertainment expenses, partially offset by the release of a valuation allowance in a foreign jurisdiction.
The ETR for fiscal 2024 was higher than the prior year primarily due to the release of a valuation allowance in a foreign jurisdiction in the prior year that was nonrecurring in the current year, the impact of the jurisdictional mix of earnings, the remeasurement of our current-year deferred tax assets as a result of changes in tax laws, and a decrease in the tax benefit related to share-based compensation.
Business and Talent Acquisitions 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.
We expect to fund any cash payments from existing cash resources, cash generated from operations, or borrowings on our revolving credit facility. Business and Talent Acquisitions As part of our business, we regularly evaluate opportunities to acquire other consulting firms, practices or groups, or other businesses.
The principal drivers of the increase of cash were growth in sales and strong collections of accounts receivable offset by the repurchase and retirement of shares of our common stock throughout the year under our share repurchase program, payments of dividends, and payments made in respect of forgivable loans.
The principal drivers of the decrease of cash and cash equivalents were the payment of a significant portion of our fiscal 2023 performance bonuses in the first half of fiscal 2024, forgivable loan advances, purchases of property and equipment, the repurchase and retirement of shares of our common stock throughout the year under our share repurchase program and the payment of dividends.
Under our cash incentive plan, we expect to pay LTIP cash awards of approximately $11.1 million over the next twelve months and $29.2 million between fiscal 2025 and fiscal 2028. We expect to fund any cash payments from existing cash resources, cash generated from operations, or borrowings on our revolving credit facility.
The compensation committee of our Board of Directors is responsible for approving all cash and equity awards under the LTIP. Under our cash incentive plan, we expect to pay LTIP cash awards of approximately $10.1 million over the next twelve months and $22.8 million between fiscal 2026 and fiscal 2029.
Removed
During fiscal 2023, working capital (defined as current assets less current liabilities) decreased by $2.3 million to end fiscal 2023 at $29.4 million.
Added
Net income increased by $8.2 million to $46.7 million for fiscal 2024 from $38.5 million for fiscal 2023. The diluted net income per share was $6.74 per share for fiscal 2024, compared to diluted net income per share of $5.39 per share for fiscal 2023.
Removed
The decrease in working capital was principally due to an increase in accrued expenses of $15.2 million, an increase in the current portion of deferred compensation of $1.9 million, a decrease of $1.2 million in prepaid expenses and other current assets, an increase in accounts payable of $1.1 million, a decrease in the current portion of forgivable loans of $0.9 million, an increase of $0.5 million in the current portion of lease liabilities, and an increase in deferred revenue and other liabilities of $0.3 million.
Added
During fiscal 2024, net cash used in investing activities was $18.1 million, which included capital expenditures primarily related to furniture, leasehold improvements, and funding investments related to our IT infrastructure.
Removed
Partially offsetting these decreases to working capital were an increase in cash and cash equivalents of $14.1 million and an increase in accounts receivable and unbilled services of $4.6 million. At December 30, 2023, $10.6 million of our cash and cash equivalents were held within the U.S.
Removed
During fiscal 2023, net cash used in investing activities was $3.0 million, which included $2.4 million for capital expenditures and $0.6 million of net consideration paid for the acquisition of Welch Consulting, Ltd. and bioStrategies Group, Inc.
Removed
Offsetting these uses in cash for financing activities was $0.8 million received upon the issuance of shares of common stock related to the exercise of stock options.
Removed
Our Amended and Restated 2006 Equity Incentive Plan, as amended (the "2006 Equity Plan"), authorizes the grant of a variety of incentive and performance equity awards to our directors, employees and non-employee experts, including stock options, shares of restricted stock, restricted stock units, and other equity awards.
Removed
On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 that includes a one percent excise tax on net repurchases of stock after December 31, 2022. As the Company's issued and outstanding common stock is classified as permanent equity, the excise tax is treated as a specific incremental cost directly attributable to the repurchase.
Removed
As such, the incremental cost to repurchase the shares is recorded within equity with an offsetting excise tax liability recognized. In fiscal 2023, the Company had net share repurchases of $24.8 million resulting in an excise tax payable of $0.2 million. Dividends to Shareholders We anticipate paying regular quarterly dividends each year.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+1 added−0 removed6 unchanged
Biggest changeIncreases or decreases in the value of the U.S. Dollar against these currencies will affect our operating results and the value of our balance sheet items denominated in foreign currencies. Our most significant exposures to translation risk relate to functional currency assets and liabilities that are denominated in the British Pound and Euro.
Biggest changeThe functional currencies of our foreign subsidiaries are generally denominated in the local currency. Increases or decreases in the value of the U.S. Dollar against these currencies will affect our operating results and the value of our balance sheet items denominated in foreign currencies.
We had no outstanding borrowings under our revolving credit facility as of December 30, 2023. A hypothetical change in the interest rate of 10% would not have a material impact to our net income.
We had no outstanding borrowings under our revolving credit facility as of December 28, 2024. A hypothetical change in the interest rate of 10% would not have a material impact to our net income.
However, actual gains and losses in the future could differ materially from this analysis based on the timing and amount of both foreign currency exchange rate movements and our actual exposure. Translation of Financial Results Our foreign subsidiaries operate in currencies other than the U.S. Dollar. The functional currencies of our foreign subsidiaries are generally denominated in the local currency.
However, actual 31 Table of Contents gains and losses in the future could differ materially from this analysis based on the timing and amount of both foreign currency exchange rate movements and our actual exposure. Translation of Financial Results Our foreign subsidiaries operate in currencies other than the U.S. Dollar.
Holding all other variables constant, a hypothetical 10% movement in foreign exchange rates on December 30, 2023 would have affected our income before provision for income taxes for fiscal 2023 by approximately $3.4 million.
Holding all other variables constant, a hypothetical 10% movement in foreign exchange rates on December 28, 2024 would have affected our income before provision for income taxes for fiscal 2024 by approximately $2.9 million.
For our foreign subsidiaries whose functional currencies are denominated in currencies other than the U.S. Dollar, the unrealized changes in the net investments were gains of $2.8 million, losses of $5.0 million, and losses of $1.5 million for fiscal 2023, fiscal 2022, and fiscal 2021, respectively. These translation gains and losses are reflected in consolidated statements of comprehensive income.
Dollar, the unrealized changes in the net investments were losses of $2.9 million, gains of $2.8 million, and losses of $5.0 million for fiscal 2024, fiscal 2023, and fiscal 2022, respectively. These translation gains and losses are reflected in consolidated statements of comprehensive income.
Added
Our most significant exposures to translation risk relate to functional currency assets and liabilities that are denominated in the British Pound and Euro. For our foreign subsidiaries whose functional currencies are denominated in currencies other than the U.S.

Other CRAI 10-K year-over-year comparisons