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Customer-Funded Research & Development
3 Months Ended
Jul. 31, 2021
Customer-Funded Research & Development  
Customer-Funded Research & Development

13. 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 $16,911,000 and $23,426,000 for the three months ended July 31, 2021 and August 1, 2020, respectively.