Warranty Reserves

3 Months Ended

Jul. 29, 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 months ended July 29, 2017 and July 30, 2016, respectively (in thousands):

	Three Months Ended
		July 29,		July 30,
		2017		2016
Beginning balance	$	3,231	$	4,134
Warranty expense		447		192
Changes in estimates related to pre-existing warranties		—		1,407
Warranty costs settled		(793)		(510)
Ending balance	$	2,885	$	5,223

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 29, 2017, the total remaining warranty reserve related to the estimated costs to repair the impacted UAS was $5,000. As of July 29, 2017, a total of $2,198,000 of costs related to this warranty have been incurred.