
			Effect of the
	April 30, 2018		Adoption of		April 30, 2018
	As Reported		ASC Topic 606		As Adjusted
Assets
Current assets:
Cash and cash equivalents	$	143,517	$	—	$	143,517
Short-term investments		113,649		—		113,649
Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018		56,813		—		56,813
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018)		13,076		3,796		16,872
Inventories, net		38,640		(1,215)		37,425
Prepaid expenses and other current assets		5,103		—		5,103
Current assets of discontinued operations		28,349		(2,681)		25,668
Total current assets		399,147		(100)		399,047
Long-term investments		40,656		—		40,656
Property and equipment, net		19,219		—		19,219
Deferred income taxes		11,168		326		11,494
Other assets		2,721		281		3,002
Total assets	$	472,911	$	507	$	473,418
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	21,340	$	—	$	21,340
Wages and related accruals		16,851		—		16,851
Income taxes payable		4,085		—		4,085
Customer advances		2,145		1,419		3,564
Other current liabilities		6,892		62		6,954
Current liabilities of discontinued operations		9,184		110		9,294
Total current liabilities		60,497		1,591		62,088
Deferred rent		1,536		—		1,536
Other non-current liabilities		622		—		622
Deferred tax liability		67		—		67
Liability for uncertain tax positions		49		—		49
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value:
Authorized shares—10,000,000; none issued or outstanding at April 30, 2018		—		—		—
Common stock, $0.0001 par value:
Authorized shares—100,000,000
Issued and outstanding shares—23,908,736 at April 30, 2018		2		—		2
Additional paid-in capital		170,139		—		170,139
Accumulated other comprehensive loss		(21)		—		(21)
Retained earnings		239,997		(1,084)		238,913
Total AeroVironment stockholders’ equity		410,117		(1,084)		409,033
Noncontrolling interest		23		—		23
Total equity		410,140		(1,084)		409,056
Total liabilities and stockholders’ equity	$	472,911	$	507	$	473,418

The tables below presents the impact of adoption on the Company’s statement of operations for the fiscal years ended April 30, 2018 and 2017 (in thousands except share and per share data).


	Year Ended April 30, 2018
	As Reported		ASC Topic 606 Impact		As Adjusted
Revenue:
Product sales	$	195,330	$	(3,618)	$	191,712
Contract services (inclusive of related party revenue of $29,594 for the year ended April 30, 2018)		75,722		990		76,712
		271,052		(2,628)		268,424
Cost of sales:
Product sales		111,990		(2,597)		109,393
Contract services		50,174		1,172		51,346
		162,164		(1,425)		160,739
Gross margin:
Product sales		83,340		(1,021)		82,319
Contract services		25,548		(182)		25,366
		108,888		(1,203)		107,685
Selling, general and administrative		50,826		—		50,826
Research and development		26,433		—		26,433
Loss (income) from continuing operations		31,629		(1,203)		30,426
Other income (expense):
Interest income, net		2,240		—		2,240
Other expense, net		(49)		—		(49)
Income from continuing operations before income taxes		33,820		(1,203)		32,617
Provision for income taxes		10,177		(377)		9,800
Equity method investment loss, net of tax		(1,283)		—		(1,283)
Net (loss) income from continuing operations		22,360		(826)		21,534
Discontinued operations:
Gain on sale of business, net of tax		—		—		—
Income (loss) from discontinued operations, net of tax		(2,508)		(1,379)		(3,887)
Net income (loss) from discontinued operations		(2,508)		(1,379)		(3,887)
Net (loss) income		19,852		(2,205)		17,647
Net loss attributable to noncontrolling interest		216		—		216
Net (loss) income attributable to AeroVironment	$	20,068	$	(2,205)	$	17,863
Net (loss) income per share attributable to AeroVironment—Basic
Continuing operations	$	0.97	$	(0.03)	$	0.93
Discontinued operations		(0.11)		(0.06)		(0.17)
Net loss per share attributable to AeroVironment—Basic	$	0.86	$	(0.09)	$	0.76
Net (loss) income per share attributable to AeroVironment—Diluted
Continuing operations	$	0.95	$	(0.03)	$	0.91
Discontinued operations		(0.11)		(0.06)		(0.16)
Net (loss) per share attributable to AeroVironment—Diluted	$	0.84	$	(0.09)	$	0.75
Weighted-average shares outstanding:
Basic		23,471,241		23,471,241		23,471,241
Diluted		23,813,772		23,813,772		23,813,772


	Year Ended April 30, 2017
	As Reported		ASC Topic 606 Impact		As Adjusted
Revenue:
Product sales	$	159,630	$	(706)	$	158,924
Contract services		69,310		4,871		74,181
		228,940		4,165		233,105
Cost of sales:
Product sales		88,963		76		89,039
Contract services		44,792		2,401		47,193
		133,755		2,477		136,232
Gross margin:
Product sales		70,667		(782)		69,885
Contract services		24,518		2,470		26,988
		95,185		1,688		96,873
Selling, general and administrative		47,642		—		47,642
Research and development		28,465		—		28,465
Loss (income) from continuing operations		19,078		1,688		20,766
Other income (expense):
Interest income, net		1,618		—		1,618
Other expense, net		172		—		172
Income from continuing operations before income taxes		20,868		1,688		22,556
Provision for income taxes		4,138		620		4,758
Equity method investment loss, net of tax		(119)		—		(119)
Net (loss) income from continuing operations		16,611		1,068		17,679
Discontinued operations:
Gain on sale of business, net of tax		—		—		—
Income (loss) from discontinued operations, net of tax		(4,154)		(447)		(4,601)
Net income (loss) from discontinued operations		(4,154)		(447)		(4,601)
Net (loss) income		12,457		621		13,078
Net loss attributable to noncontrolling interest		22		—		22
Net (loss) income attributable to AeroVironment	$	12,479	$	621	$	13,100
Net (loss) income per share attributable to AeroVironment—Basic
Continuing operations	$	0.72	$	0.05	$	0.77
Discontinued operations		(0.18)		(0.02)		(0.20)
Net loss per share attributable to AeroVironment—Basic	$	0.54	$	0.03	$	0.57
Net (loss) income per share attributable to AeroVironment—Diluted
Continuing operations	$	0.72	$	0.05	$	0.76
Discontinued operations		(0.18)		(0.02)		(0.20)
Net (loss) per share attributable to AeroVironment—Diluted	$	0.54	$	0.03	$	0.56
Weighted-average shares outstanding:
Basic		23,059,045		23,059,045		23,059,045
Diluted		23,307,738		23,307,738		23,307,738

The tables below presents the impact of adoption on the Company’s statement of comprehensive (loss) income for the fiscal years ended April 30, 2018 and 2017 (in thousands).


	Year Ended April 30, 2018
	As Reported		ASC Topic 606 Impact		As Adjusted
Net (loss) income	$	19,852	$	(2,205)	$	17,647
Other comprehensive income:
Change in foreign currency translation adjustments		36		—		36
Unrealized gain on investments, net of deferred tax expense of $25 and $43 for the fiscal years ended 2018 and 2017		70		—		70
Total comprehensive (loss) income		19,958		(2,205)	$	17,753
Net loss attributable to noncontrolling interest		216		—		216
Comprehensive (loss) income attributable to AeroVironment	$	20,174	$	(2,205)	$	17,969


	Year Ended April 30, 2017
	As Reported		ASC Topic 606 Impact		As Adjusted
Net (loss) income	$	12,457	$	621	$	13,078
Other comprehensive income:
Change in foreign currency translation adjustments		—		—		—
Unrealized gain on investments, net of deferred tax expense of $25 and $43 for the fiscal years ended 2018 and 2017		74		—		74
Total comprehensive (loss) income		12,531		621	$	13,152
Net loss attributable to noncontrolling interest		22		—		22
Comprehensive (loss) income attributable to AeroVironment	$	12,553	$	621	$	13,174

The table below presents the impact of adoption on the Company’s statement of cash flows for the fiscal years ended April 30, 2018 and 2017 (in thousands).


	Year Ended April 30, 2018
	As Reported		ASC Topic 606 Impact		As Adjusted
Operating activities
Net income (loss)	$	19,852	$	(2,205)	$	17,647
Gain on sale of business, net of tax		—		—		—
Loss from discontinued operations, net of tax		2,508		1,379		3,887
Net income from continuing operations		22,360		(826)		21,534
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization		5,982		—		5,982
Loss from equity method investments		1,283		—		1,283
Impairment of long-lived assets		255		—		255
Provision for doubtful accounts		977		—		977
Impairment of intangible assets and goodwill		1,021		—		1,021
Gains on foreign currency transactions		(87)		—		(87)
Deferred income taxes		3,835		(982)		2,853
Gain on business acquisition		—		—		—
Stock-based compensation		4,956		—		4,956
Loss on disposition of property and equipment		20		—		20
Amortization of held-to-maturity investments		1,424		—		1,424
Changes in operating assets and liabilities:
Accounts receivable		11,211		(141)		11,070
Unbilled receivables and retentions		903		1,350		2,253
Inventories		2,268		(1,076)		1,192
Income tax receivable		—		—		—
Prepaid expenses and other assets		419		(280)		139
Accounts payable		5,736		—		5,736
Other liabilities		7,873		1,351		9,224
Net cash provided by (used in) operating activities of continuing operations		70,436		(604)		69,832
Investing activities
Acquisition of property and equipment		(9,563)		—		(9,563)
Equity method investments		(3,267)		—		(3,267)
Business acquisitions, net of tax		—		—		—
Proceeds from sale of business		—		—		—
Redemptions of held-to-maturity investments		227,663		—		227,663
Purchases of held-to-maturity investments		(221,680)		—		(221,680)
Redemptions of available-for-sale investments		450		—		450
Net cash provided by investing activities from continuing operations		(6,397)		—		(6,397)
Financing activities
Principal payments of capital lease obligations		(288)		—		(288)
Tax withholding payment related to net settlement of equity awards		(397)		—		(397)
Exercise of stock options		2,705		—		2,705
Net cash provided by financing activities from continuing operations		2,020		—		2,020
Discontinued operations
Operating activities of discontinued operations		(1,227)		604		(623)
Investing activities of discontinued operations		(1,219)		—		(1,219)
Financing activities of discontinued operations		—		—		—
Net cash (used in) provided by discontinued operations		(2,446)		604		(1,842)
Net increase in cash and cash equivalents		63,613		—		63,613
Cash and cash equivalents at beginning of period		79,904		—		79,904
Cash and cash equivalents at end of period	$	143,517	$	—	$	143,517
Supplemental disclosures of cash flow information
Cash paid, net during the period for:
Income taxes	$	1,813		—	$	1,813
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $25 and $43	$	70		—	$	70
Reclassification from share-based liability compensation to equity	$	384		—	$	384
Change in foreign currency translation adjustments	$	36		—	$	36
Acquisitions of property and equipment included in accounts payable	$	379		—	$	379


	Year Ended April 30, 2017
	As Reported		ASC Topic 606 Impact		As Adjusted
Operating activities
Net income (loss)	$	12,457	$	621	$	13,078
Gain on sale of business, net of tax		—		—		—
Loss from discontinued operations, net of tax		4,154		447		4,601
Net income from continuing operations		16,611		1,068		17,679
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization		5,054		—		5,054
Loss from equity method investments		119		—		119
Impairment of long-lived assets		46		—		46
Provision for doubtful accounts		48		—		48
Impairment of intangible assets and goodwill		—		—		—
Gains on foreign currency transactions		284		—		284
Deferred income taxes		(52)		361		309
Gain on business acquisition		(584)		—		(584)
Stock-based compensation		3,392		—		3,392
Loss on disposition of property and equipment		44		—		44
Amortization of held-to-maturity investments		2,382		—		2,382
Changes in operating assets and liabilities:
Accounts receivable		(19,608)		(112)		(19,720)
Unbilled receivables and retentions		4,667		(4,052)		615
Inventories		(19,225)		2,409		(16,816)
Income tax receivable		—		—		—
Prepaid expenses and other assets		(1,484)		—		(1,484)
Accounts payable		545		—		545
Other liabilities		(233)		67		(166)
Net cash provided by (used in) operating activities of continuing operations		(7,994)		(259)		(8,253)
Investing activities
Acquisition of property and equipment		(9,017)		—		(9,017)
Equity method investments		—		—		—
Business acquisitions, net of tax		(430)		—		(430)
Proceeds from sale of business		—		—		—
Redemptions of held-to-maturity investments		121,522		—		121,522
Purchases of held-to-maturity investments		(148,991)		—		(148,991)
Redemptions of available-for-sale investments		400		—		400
Net cash provided by investing activities from continuing operations		(36,516)		—		(36,516)
Financing activities
Principal payments of capital lease obligations		(390)		—		(390)
Tax withholding payment related to net settlement of equity awards		(5)		—		(5)
Exercise of stock options		3,865		—		3,865
Net cash provided by financing activities from continuing operations		3,470		—		3,470
Discontinued operations
Operating activities of discontinued operations		(2,505)		259		(2,246)
Investing activities of discontinued operations		(838)		—		(838)
Financing activities of discontinued operations		—		—		—
Net cash (used in) provided by discontinued operations		(3,343)		259		(3,084)
Net increase in cash and cash equivalents		(44,383)		—		(44,383)
Cash and cash equivalents at beginning of period		124,287		—		124,287
Cash and cash equivalents at end of period	$	79,904	$	—	$	79,904
Supplemental disclosures of cash flow information
Cash paid, net during the period for:
Income taxes	$	1,804		—	$	1,804
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $25 and $43	$	74		—	$	74
Reclassification from share-based liability compensation to equity	$	307		—	$	307
Change in foreign currency translation adjustments	$	—		—	$	—
Acquisitions of property and equipment included in accounts payable	$	724		—	$	724