What changed in this filing

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Item 1. Business

2022-03-03 compared with 2021-03-04 · 46 added, 55 removed, 271 unchanged (27% of the section changed)

7 unchanged sentences

Important factors that could cause actual events to vary from our predictions include those discussed in this annual report under the heading "Risk Factors." We assume no obligation to update our forward-looking statements to reflect new information or developments.

We urge readers to review carefully the risk factors described in this annual report and in the other documents that we file with the Securities and Exchange Commission, or SEC.

We urge readers to review carefully the risk factors described in this annual report and in the other documents that we file with the Securities and Exchange Commission ("SEC").

You can read these documents at www.sec.gov.

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The Investor Relations page of our website provides a link to a web page where you can obtain a copy of our code of business conduct and ethics applicable to our principal executive officer, principal financial officer, and principal accounting officer.

We intend to make required disclosures of amendments to our code of business conduct and ethics, or waivers of a provision of our code of business conduct and ethics, on the Corporate Governance Documents page linked from the Investor Relations page of our website.

We intend to make required disclosures of amendments to our code of business conduct and ethics, or waivers of a provision of our code of business conduct and ethics, on the Governance Documents & Reports page linked from the Investor Relations page of our website.

CRA International, Inc.

17 unchanged sentences

We provide consulting services to corporate clients and attorneys in a wide range of litigation and regulatory proceedings, providing high-quality research and analysis, expert testimony, and comprehensive support in litigation and regulatory proceedings in all areas of finance, accounting, economics, insurance, and forensic accounting and investigations.

We also use our expertise in economics, finance, and business to offer law firms, businesses, and government agencies services related to class certification, damages analysis, expert reports and testimony, regulatory analysis, strategy development, valuation of tangible and intangible assets, risk management, and transaction support.

In our management consulting services, we use our expertise in economics, finance, and business analysis to offer our clients such services as strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, new product pricing strategies, valuation of intellectual property and other assets, assessment of competitors' actions, and analysis of new sources of supply.

Our analytical expertise in advanced economic and financial methods is complemented by our in-depth expertise in specific industries, including agriculture;

banking and capital markets;

communications and media;

consumer products;

entertainment;

We also use our expertise in economics, finance, and business to offer law firms, businesses, and government agencies services related to class certification, damages analysis, expert reports and testimony, regulatory analysis, antitrust and competition matters, strategy development, forensic accounting, information security and privacy matters, labor and employment disputes, transfer pricing issues, valuation of tangible and intangible assets, intellectual property litigation and damages, risk management, and transaction support.

In our management consulting services, we use our expertise in economics, finance, and business analysis to offer our clients such services as strategy development, performance improvement, corporate strategy and portfolio analysis, estimation of market demand, ESG and sustainability strategy and analysis, design and implementation of auction and competitive bidding, new product pricing strategies, valuation of intellectual property and other assets, assessment of competitors' actions, and analysis of new sources of supply.

Our analytical expertise in advanced economic and financial methods is complemented by our in-depth expertise in specific industries, including communications and media;

consumer products, health, and wellness;

entertainment and leisure;

financial services;

life sciences;

manufacturing;

metals, mining, and materials;

telecommunications;

transportation;

and technology.

manufacturing and industrials;

natural resources;

retail and distribution;

and transportation.

We have completed thousands of engagements for clients around the world, including domestic and foreign companies;

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We deliver our services through an international network of coordinated offices.

Headquartered in Boston, Massachusetts, we have offices throughout North America, Europe, and Australia.

Headquartered in Boston, Massachusetts, we have offices throughout the Americas, Europe, and Australia.

Industry Overview

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Finally, litigants and law firms are using economic and finance theory to help determine liability and to calculate damages in complex and high-stakes litigation.

At times, companies and their counsel may require eDiscovery strategies for data preservation, collection, analysis, reporting, and delivery.

As the need for complex economic and financial analysis becomes more widespread, companies and governments are turning to outside consulting firms, such as ours, for access to the independent and specialized expertise, experience, and prestige that are not available to them internally.

5 unchanged sentences

High Level of Repeat Business.

Since 1965, we have been a leader in providing sophisticated economic analysis and original, authoritative advice to clients involved in complex litigation and

regulatory proceedings, and we also provide management consulting services to companies facing strategic, organizational, and operational challenges.

Since 1965, we have been a leader in providing sophisticated economic analysis and original, authoritative advice to clients involved in complex litigation and regulatory proceedings, and we also provide management consulting services to companies facing strategic, organizational, and operational challenges.

As a result, we believe we have established a strong reputation among leading law firms and business clients as a preferred source of expertise in economics, finance, business, and management consulting, as evidenced by our high level of repeat business.

2 unchanged sentences

We believe our most important asset is our base of employee consultants, particularly our senior employee consultants.

As of January 2, 2021, we employed 831 consultants, which consisted of 137 officers, 471 senior staff and 223 junior staff.

Approximately 80% of our senior staff have advanced degrees, with 41% having doctorate degrees.

As of January 1, 2022, we employed 861 consultants, which consisted of 140 officers, 477 other senior staff and 244 junior staff.

Approximately 77% of our senior staff have advanced degrees, with 42% of the advanced degrees being doctorate degrees.

We are extremely selective in our hiring of consultants, recruiting from leading universities, industry, and government.

24 unchanged sentences

We have completed thousands of engagements for clients in a broad range of industries around the world.

Our clients are major firms, and national and international law firms representing such clients, across a multitude of industries that include agriculture;

banking and capital markets;

communications and media;

consumer products;

entertainment;

Our clients are major firms, and national and international law firms representing such clients, across a multitude of industries that include communications and media;

consumer products, health, and wellness;

entertainment and leisure;

financial services;

life sciences;

manufacturing;

metals, mining, and materials;

telecommunications;

transportation;

and technology.

manufacturing and industrials;

natural resources;

retail and distribution;

and transportation.

Established Corporate Culture.

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Depending on client needs, we use non-employee experts for their specialized expertise, assistance in conceptual problem-solving, and expert witness testimony.

We work regularly with renowned professors at such institutions as the University of Chicago, the University of California at Berkeley, Yale University, Georgetown University, Boston University, Northwestern University, the University of Pennsylvania, Harvard University, Texas A&M University, Brigham Young University, and other leading universities.

University of Toronto, Harvard University, Texas A&M University, Brigham Young University, and other leading universities.

These experts also generate business for us and provide us access to other leading academic and industry experts.

33 unchanged sentences

fraud, corruption, bribery and embezzlement investigations;

financial reporting misstatements, misconduct, and non-compliance allegations;

white collar defense;

3 unchanged sentences

and other independent professional services that help clients preserve their reputation and support their commitment to integrity.

Insurance Economics Matters pertaining to advising insurers, regulators, and legislators with respect to management, insurance products, and litigation and regulation.

Areas of Functional Expertise Description of Area of Service

Insurance Economics Matters pertaining to advising insurers, regulators, and legislators with respect to management, insurance products, and litigation and regulation.

Intellectual Property Matters pertaining to all types of intellectual property assets including valuation, litigation, transaction and strategic advisory services, patents, trade secrets, copyrights, and trademarks as well as economic damages in intellectual property litigation, valuations of intellectual property assets for strategic and regulatory purposes, and transactional advisory services for licensing and other intellectual property-rich transactions.

33 unchanged sentences

Additionally, we challenge clients to develop fresh approaches by sharing industry insights, focusing on facts, and questioning tradition.

We support clients in implementation by setting priorities, focusing resources, and aligning operations, and we get results by helping clients make distinctive, substantial improvements in their organizations' performance.

We support clients in business improvement implementation by setting priorities, focusing resources, and aligning operations, and we get results by helping clients make distinctive, substantial improvements in their organizations' performance.

The following is a summary of the areas of functional expertise that we offer in management consulting.

28 unchanged sentences

While we provide services to clients in a wide variety of industries, we have particular expertise in the following industries:

• Agriculture

• Banking & Capital Markets

• Communications & Media

• Consumer Products

• Entertainment

• Consumer Products, Health, & Wellness

• Entertainment & Leisure

• Financial Services

• Health Care

• Life Sciences

• Manufacturing

• Metals, Mining, & Materials

• Real Estate

• Telecommunications

• Manufacturing & Industrials

• Natural Resources

• Retail & Distribution

• Transportation

9 unchanged sentences

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 2021, fiscal 2020, or fiscal 2019.

We derived approximately 24%, 24%, and 23% of consolidated revenues from fixed-price contracts in fiscal 2020, fiscal 2019, and fiscal 2018, respectively.

These contracts are more common in our management consulting area, and would likely grow in number with expansion of that area.

We derived approximately 24% of consolidated revenues from fixed-price contracts in each of fiscal 2021, fiscal 2020, and fiscal 2019.

These contracts are more common in our management consulting practices, and would likely grow in number with expansion of those practices.

Human Capital

As of January 1, 2022, we employed 861 consultants, consisting of 140 officers, 477 senior staff and 244 junior staff.

Approximately 80% of our senior staff have advanced degrees, with 41% having doctorate degrees, in addition to substantial management, technical, or industry expertise.

Approximately 77% of our senior staff have advanced degrees, with 42% of the advanced degrees being doctorate degrees, in addition to substantial management, technical, or industry expertise.

We believe our financial results and reputation are directly related to the number and quality of our employee consultants.

2 unchanged sentences

We are highly selective in our hiring of consultants, recruiting primarily from a select group of leading universities and degree programs, industry, and government.

We foster a culture where different ideas and perspectives are both welcomed and encouraged, and we strive to retain and promote diverse and dynamic talent.

Our recruitment process evaluates an individual's experience, skills, and potential for growth, and is tailored to meet both the needs of the role and the interests of the candidate.

We have trained our interviewing professionals on practices associated with inclusive interviewing, including how to minimize unconscious bias.

We believe consultants choose to work for us because of our emphasis on accurate, rigorous analytics and high quality work;

1 unchanged sentence

and our collegial, inclusive, and multi-disciplinary approach to complex client needs.

We use a decentralized, team hiring approach.

Our training and career development programs for our employee consultants focus on providing multi-dimensional technical, foundational, and consulting skills.

3 unchanged sentences

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.

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 opportunities.

Many of our vice presidents have signed non-solicitation agreements, which generally prohibit the employee from soliciting our clients or soliciting or hiring our employees for one year or longer following termination of the person's employment with us.

We seek to align each vice president's interest with our overall interests, and many of our strongest contributors have an equity interest in us.

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.

Many of our employee consultants have signed non-solicitation agreements, which generally prohibit the employee from soliciting our clients or soliciting or hiring our employees for one year or longer following termination of the person's employment with us.

We seek to align each employee's interest with our overall interests, and many of our strongest contributors have an equity interest in us.

We compensate our senior corporate leaders, practice leaders, key revenue generators, and other employees with salary and a mixture of incentive-based programs that provide for cash and equity compensation.

10 unchanged sentences

We believe these experts choose to work with us because of the interesting and challenging nature of our work, the opportunity to work with our quality-oriented consultants, and the financially rewarding nature of the work.

Several non-employee experts, generally comprising the more active of those with whom we work, have entered into restrictive covenants with us of varying lengths, which, in some cases, include noncompetition agreements.

Our revenues largely depend on the number of hours worked by our employee consultants.

5 unchanged sentences

On occasion, employee consultants work with one or more non-employee experts to market our services.

In addition, we rely upon business development professionals to ensure that the value of our litigation consulting service offerings is fully realized in the marketplace.

They focus on deepening and broadening client relationships with law firms and general counsels, ensuring that both existing and potential clients have access to our broad array of services, as well as helping to bring the best talent to any given assignment.

We supplement the personal marketing efforts of our employee consultants with diverse business development and marketing activities, including virtual and in-person seminars and presentations, speaking at and attending relevant conferences, social networking events, social media, and extensive thought leadership that we publish in industry, business, economic, legal, or scientific journals.

We supplement the personal marketing efforts of our employee consultants with diverse business development and marketing activities, including virtual and in-person seminars and presentations, speaking at and attending relevant conferences, social networking events, podcasts, videos, social media, and extensive thought leadership that we publish in industry, business, economic, legal, or scientific journals.

We regularly organize seminars for existing and potential clients featuring panel members that include our employee consultants, non-employee experts, and leading government officials.

We have an extensive set of brochures organized around our service areas, which describe our experience and capabilities.

We have an extensive set of brochures and infographics organized around our service areas, which describe our experience and capabilities.

Our corporate website is another means of marketing our consultants and capabilities as it houses information about our business development activities, engagements, and biographies of our employee consultants and academic affiliates.

We distribute publications to existing and potential clients highlighting emerging trends and noteworthy engagements.

We distribute publications to existing and potential clients highlighting emerging trends and noteworthy hires, awards, and engagements.

Because existing clients are an important source of repeat business and referrals, we communicate regularly with our existing clients to keep them informed of developments that affect their markets and industries.

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business