Warranty Reserves

3 Months Ended

Jul. 27, 2019

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 27, 2019 and July 28, 2018, respectively (in thousands):

	Three Months Ended
	July 27,		July 28,
	2019		2018
Beginning balance	$	1,704	$	2,090
Warranty expense		549		611
Changes in estimates related to pre-existing warranties		—		712
Warranty costs settled		(540)		(275)
Ending balance	$	1,713	$	3,138

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. At July 27, 2019, the total remaining warranty reserve related to the estimated costs to repair the impacted UAS was $222,000. As of July 27, 2019 a total of $254,000 of costs related to this warranty have been incurred.