Warranty Reserves

6 Months Ended

Oct. 27, 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 and six months ended October 27, 2018 and October 28, 2017, respectively (in thousands):

	Three Months Ended				Six Months Ended
	October 27,			October 28,	October 27,		October 28,
	2018		2017		2018		2017
Beginning balance	$	3,138	$	1,624	$	2,090	$	1,947
Warranty expense		(249)		632		361		911
Changes in estimates related to pre-existing warranties		(219)		—		493		—
Warranty costs settled		(239)		(326)		(513)		(928)
Ending balance	$	2,431	$	1,930	$	2,431	$	1,930

During the six months ended October 27, 2018, the Company revised its estimates based on the results of additional engineering studies and recorded incremental warranty reserve charges totaling $519,000 related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods. At October 27, 2018, the total remaining warranty reserve related to the estimated costs to repair the impacted UAS was $493,000. As of October 27, 2018 a total of $26,000 of costs related to this warranty have been incurred.