Warranty Reserves

9 Months Ended

Jan. 28, 2017

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 nine months ended January 28, 2017 and January 30, 2016, respectively (in thousands):

	Three Months Ended				Nine Months Ended
		January 28,		January 30,		January 28,		January 30,
		2017		2016		2017		2016
Beginning balance	$	3,688	$	2,338	$	4,134	$	2,653
Warranty expense		245		1,032		581		2,740
Changes in estimates related to pre-existing warranties		200		—		1,428		(424)
Warranty costs settled		(679)		(508)		(2,689)		(2,107)
Ending balance	$	3,454	$	2,862	$	3,454	$	2,862

During the three and nine months ended January 28, 2017, the Company revised its estimates based on the results of additional engineering studies and recorded incremental warranty reserve charges totaling $328,000 and $1,735,000, respectively, related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods. At January 28, 2017, the total remaining warranty reserve related to the estimated costs to repair the impacted UAS was $950,000. As of January 28, 2017 a total of $1,329,000 of costs related to this warranty have been incurred.