XML 24 R13.htm IDEA: XBRL DOCUMENT v3.6.0.2
Research and Development
9 Months Ended
Nov. 30, 2016
Research and Development [Abstract]  
Research, Development, and Computer Software Disclosure [Text Block]
Research and Development

Expenditures for research and development are charged to expense as incurred. Such expenditures amounted to $7,964 and $26,411 for the three and nine months ended November 30, 2016, respectively, compared to $6,412 and $16,990 for the three and nine months ended November 30, 2015, respectively, net of customer reimbursement, and are included within Engineering and Technical Support Expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company enters into development and long-term supply agreements with certain of its OEM ("Original Equipment Manufacturer") customers. Reimbursements of the development services are recorded based upon the milestone method of revenue recognition provided certain criteria are met. Amounts due from OEM customers for development services are reflected as a reduction of research and development expense because the performance of contract development services is not central to the Company's operations. For the three and nine months ended November 30, 2016, the Company recorded $1,642 and $3,119, respectively, of development service reimbursements as a reduction of research and development expense based upon the achievement of a milestone, as compared to $3,326 and $6,446, respectively, for the three and nine months ended November 30, 2015.