CRA INTERNATIONAL, INC.CRAI

CRA INTERNATIONAL, INC. Goodwill & Intangibles Disclosure

10-KFiled Feb 26, 20262 min read
Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for fiscal 2025 and fiscal 2024 are as follows (in thousands):
Fiscal YearFiscal Year
20252024
Goodwill$165,630 $165,882 
Accumulated goodwill impairment(71,893)(71,893)
Goodwill, net at beginning of fiscal year93,737 93,989 
Foreign currency translation adjustment981 (252)
Goodwill, net at end of fiscal year$94,718 $93,737 
Goodwill, net at January 3, 2026, is comprised of goodwill of $166.6 million and accumulated impairment of $71.9 million. There were no impairment losses related to goodwill during fiscal 2025, fiscal 2024, or fiscal 2023.
Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and amortized using the straight-line method over their expected useful lives. There were no impairment losses related to intangible assets during fiscal 2025, fiscal 2024, or fiscal 2023.
The components of acquired identifiable intangible assets are as follows (in thousands):
January 3, 2026December 28, 2024
Useful Life (in years)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Customer relationships1015,300 (9,614)5,686 15,300 (8,084)7,216 
As a result of an asset acquisition in CRA's intellectual property practice, CRA recognized $1.5 million of intangible assets related to customer relationships during the second quarter of fiscal 2024. Amortization expense related to intangible assets was $1.5 million, $1.5 million, and $1.4 million for fiscal 2025, fiscal 2024, and fiscal 2023, respectively. Amortization of intangible assets held at January 3, 2026 for the next five fiscal years and thereafter is expected to be as follows (in thousands):
Fiscal YearAmortization
Expense
2026$1,530 
2027774 
2028708 
2029708 
2030708 
Thereafter1,258 
$5,686 

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew Standards