Warranty Reserves

6 Months Ended

Oct. 29, 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 and six months ended October 29, 2016 and October 31, 2015 (in thousands):

	Three Months Ended				Six Months Ended
		October 29,		October 31,		October 29,		October 31,
		2016		2015		2016		2015
Beginning balance	$	5,223	$	2,029	$	4,134	$	2,653
Warranty expense		144		1,001		336		1,708
Changes in estimates related to pre-existing warranties		(179)		—		1,228		(424)
Warranty costs settled		(1,500)		(692)		(2,010)		(1,599)
Ending balance	$	3,688	$	2,338	$	3,688	$	2,338

During the six months ended October 29, 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 October 29, 2016, the total remaining warranty reserve related to the estimated costs to repair the impacted UAS was $865,000. As of October 29, 2016 a total of $1,114,000 of costs related to this warranty have been incurred.