NOTE 20 — RESEARCH AND DEVELOPMENT EXPENSES
Analysis of research and development expenses is as follows:
| December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| (In millions of US$) | ||||||||||||
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Research and development costs |
(84.5 | ) | (93.2 | ) | (143.1 | ) | ||||||
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Development costs capitalized |
34.1 | 34.0 | 41.5 | |||||||||
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Research and development expensed |
(50.4 | ) | (59.2 | ) | (101.6 | ) | ||||||
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Government grants recognized in income |
21.6 | 45.6 | 32.9 | |||||||||
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Research and development costs — net |
(28.8 | ) | (13.6 | ) | (68.7 | ) | ||||||
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Research and development expenditures related primarily to:
| • |
for the Contractual Data Acquisition and GGR segments, projects concerning data processing services and marine acquisition; and |
| • |
for the Equipment segment, projects concerning seismic data recording equipment. |
The increase in Government grants recognized in income in 2016 compared to 2015 is mainly due to a higher level of US R&D tax credit in 2016.