Warranty Reserves

6 Months Ended

Oct. 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 six months ended October 28, 2017 and October 29, 2016, respectively (in thousands):

	Three Months Ended				Six Months Ended
		October 28,		October 29,		October 28,		October 29,
		2017		2016		2017		2016
Beginning balance	$	2,885	$	5,223	$	3,231	$	4,134
Warranty expense		719		144		1,166		336
Changes in estimates related to pre-existing warranties		—		(179)		—		1,228
Warranty costs settled		(520)		(1,500)		(1,313)		(2,010)
Ending balance	$	3,084	$	3,688	$	3,084	$	3,688

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 28, 2017, there were no remaining estimated warranty costs related to the repair of the impacted UAS. As of October 28, 2017, a total of $2,198,000 of costs related to this warranty have been incurred.