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Customer-Funded Research & Development
3 Months Ended
Jul. 28, 2018
Customer-Funded Research & Development  
Customer-Funded Research & Development

10. Customer-Funded Research & Development

 

Customer-funded R&D costs are incurred pursuant to contracts (revenue arrangements) to perform R&D activities according to customer specifications. These costs are direct contract costs and are expensed to cost of sales as costs are incurred. Revenue from customer-funded R&D contracts are recognized in accordance with Topic 606 over time as costs are incurred. Revenue from customer-funded R&D was approximately $17,117,000 and $8,798,000 for the three months ended July 28, 2018 and July 29, 2017, respectively.