Warranty Reserves

3 Months Ended

Jul. 30, 2016

Warranty Reserves

Warranty Reserves

5. Warranty Reserves

The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred. The warranty reserve is included in other current liabilities. The related expense is included in cost of sales. Warranty reserve activity is summarized as follows for the three months ended July 30, 2016 and August 1, 2015 (in thousands):

	Three Months Ended
		July 30,		August 1,
		2016		2015
Beginning balance	$	4,134	$	2,653
Warranty expense		192		707
Changes in estimates related to pre-existing warranties		1,407		(424)
Warranty costs settled		(510)		(907)
Ending balance	$	5,223	$	2,029

During the three months ended July 30, 2016, the Company revised its estimates based on the results of additional engineering studies and recorded incremental warranty reserve charges totaling $1,407,000 related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods. At July 30, 2016, the total warranty reserve related to the estimated costs to repair the impacted UAS was $1,959,000.  No costs related to this warranty have been incurred as of July 30, 2016.