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Warranty Reserves
 3 Months Ended
Jul. 28, 2018
Warranty Reserves  
Warranty Reserves

7. 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 28, 2018 and July 29, 2017, respectively (in thousands):

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

July 28,

 

 

July 29,

    

 

    

 

2018

    

 

2017

 

Beginning balance

 

$

2,090

 

$

1,947

 

Warranty expense

 

 

611

 

 

279

 

Changes in estimates related to pre-existing warranties

 

 

712

 

 

 —

 

Warranty costs settled

 

 

(275)

 

 

(602)

 

Ending balance

 

$

3,138

 

$

1,624

 

 

During the three months ended July 28, 2018, the Company revised its estimates based on the results of additional engineering studies and recorded incremental warranty reserve charges totaling $712,000 related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods.