Warranty Reserves

9 Months Ended

Jan. 27, 2018

Warranty Reserves

Warranty Reserves

6. 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 27, 2018 and January 28, 2017, respectively (in thousands):

	Three Months Ended				Nine Months Ended
		January 27,		January 28,		January 27,		January 28,
		2018		2017		2018		2017
Beginning balance	$	3,084	$	3,688	$	3,231	$	4,134
Warranty expense		1,347		245		2,513		581
Changes in estimates related to pre-existing warranties		—		200		—		1,428
Warranty costs settled		(566)		(679)		(1,879)		(2,689)
Ending balance	$	3,865	$	3,454	$	3,865	$	3,454

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 related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods. At January 27, 2018, there were no remaining estimated warranty costs related to the repair of the impacted UAS. As of January 27, 2018, a total of $2,198,000 of costs related to this warranty have been incurred.