View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Oct. 27, 2018	Nov. 21, 2018
Document and Entity Information
Entity Registrant Name	AeroVironment Inc
Entity Central Index Key	0001368622
Document Type	10-Q
Document Period End Date	Oct. 27, 2018
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		23,928,373
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Emerging Growth Company	false
Entity Small Business	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 30, 2018	Oct. 28, 2017	Apr. 30, 2017
Current assets:
Cash and cash equivalents	$ 151,255	$ 143,517	$ 117,109	$ 79,904
Short-term investments	138,536	113,649
Accounts receivable, net of allowance for doubtful accounts of $1,054 at October 27, 2018 and $1,080 at April 30, 2018	34,639	56,813
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $7,764 at October 27, 2018 and $3,145 at April 30, 2018)	45,654	16,872
Inventories, net	46,096	37,425
Prepaid expenses and other current assets	5,732	5,103
Current assets of discontinued operations		25,668
Total current assets	421,912	399,047
Long-term investments	30,459	40,656
Property and equipment, net	20,460	19,219
Deferred income taxes	12,108	11,494
Other assets	1,628	3,002
Total assets	486,567	473,418
Current liabilities:
Accounts payable	14,149	21,340
Wages and related accruals	11,071	16,851
Income taxes payable	4,851	4,085
Customer advances	2,449	3,564
Other current liabilities	6,971	6,954
Current liabilities of discontinued operations		9,294
Total current liabilities	39,491	62,088
Deferred rent	1,478	1,536
Other non-current liabilities	1,306	622
Deferred tax liability	67	67
Liability for uncertain tax positions	49	49
Commitments and contingencies
Stockholders' equity:
Authorized shares—10,000,000; none issued or outstanding at October 27, 2018 and April 30, 2018
Issued and outstanding shares—23,928,373 shares at October 27, 2018 and 23,908,736 at April 30, 2018	2	2
Additional paid-in capital	171,867	170,139
Accumulated other comprehensive income (loss)	5	(21)
Retained earnings	272,300	238,913
Total AeroVironment stockholders' equity	444,174	409,033
Noncontrolling interest	2	23
Total equity	444,176	409,056
Total liabilities and stockholders' equity	$ 486,567	$ 473,418

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 30, 2018
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,054	$ 1,080
Due from Related Parties	$ 7,764	$ 3,145
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, Authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, Authorized shares	100,000,000	100,000,000
Common stock, Issued shares	23,928,373	23,908,736
Common stock, outstanding shares	23,928,373	23,908,736

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Revenue:
Total revenue	$ 72,979,000	$ 65,801,000	$ 151,022,000	$ 100,162,000
Cost of sales:
Cost of sales	44,580,000	35,658,000	90,034,000	61,321,000
Gross margin:
Total gross margin	28,399,000	30,143,000	60,988,000	38,841,000
Selling, general and administrative	13,646,000	12,768,000	25,602,000	24,055,000
Research and development	8,109,000	6,844,000	14,544,000	12,386,000
Income from continuing operations	6,644,000	10,531,000	20,842,000	2,400,000
Other income:
Interest income, net	1,068,000	432,000	1,974,000	944,000
Other income (expense), net	1,291,000	(55,000)	9,679,000	(51,000)
Income from continuing operations before income taxes	9,003,000	10,908,000	32,495,000	3,293,000
Provision for income taxes	1,211,000	3,358,000	3,778,000	137,000
Equity method investment activity, net of tax	(752,000)		(1,354,000)
Net income from continuing operations	7,040,000	7,550,000	27,363,000	3,156,000
Discontinued operations:
(Loss) gain on sale of business, net of tax (benefit) expense of $(114) and $2,463 for the three and six months ended October 27, 2018, respectively	(391,000)		8,452,000
Loss from discontinued operations, net of tax	(599,000)	(33,000)	(2,449,000)	(1,521,000)
Net (loss) income from discontinued operations	(990,000)	(33,000)	6,003,000	(1,521,000)
Net income	6,050,000	7,517,000	33,366,000	1,635,000
Net loss attributable to noncontrolling interest	7,000	206,000	21,000	229,000
Net income attributable to AeroVironment	$ 6,057,000	$ 7,723,000	$ 33,387,000	$ 1,864,000
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)	$ 0.30	$ 0.33	$ 1.16	$ 0.14
Basic, discontinuing (in dollars per share)	(0.04)		0.25	(0.06)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)	0.26	0.33	1.41	0.08
Diluted, continuing (in dollars per share)	0.29	0.32	1.14	0.14
Diluted, discontinued (in dollars per share)	(0.04)		0.25	(0.06)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)	$ 0.25	$ 0.32	$ 1.39	$ 0.08
Weighted average shares outstanding:
Basic (in shares)	23,667,400	23,477,914	23,621,720	23,407,500
Diluted (in shares)	24,098,833	23,832,959	24,059,394	23,715,997
Product sales
Revenue:
Revenue	$ 47,056,000	$ 48,420,000	$ 102,369,000	$ 67,200,000
Cost of sales:
Cost of sales	26,567,000	25,196,000	56,378,000	41,168,000
Gross margin:
Total gross margin	20,489,000	23,224,000	45,991,000	26,032,000
Contract services
Revenue:
Revenue	25,923,000	17,381,000	48,653,000	32,962,000
Cost of sales:
Cost of sales	18,013,000	10,462,000	33,656,000	20,153,000
Gross margin:
Total gross margin	$ 7,910,000	$ 6,919,000	$ 14,997,000	$ 12,809,000

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
CONSOLIDATED STATEMENTS OF INCOME
Revenue from Related Parties	$ 12,832	$ 7,071	$ 24,395	$ 9,622
Tax expense	$ (114)	$ 0	$ 2,463	$ 0

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 6,050	$ 7,517	$ 33,366	$ 1,635
Other comprehensive income:
Change in foreign currency translation adjustments	(11)		(31)
Unrealized gain on investments, net of deferred tax expense of $0 and $17 for the three months ended October 27, 2018 and October 28, 2017, respectively; and net of deferred tax expense of $51 and $19 for the six months ended October 27, 2018 and October 28, 2017, respectively		26	57	29
Total comprehensive income	6,039	7,543	33,392	1,664
Net loss attributable to noncontrolling interest	7	206	21	229
Comprehensive income attributable to AeroVironment	$ 6,046	$ 7,749	$ 33,413	$ 1,893

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109223946&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591552-111686

+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized gain on investments, net of deferred tax expense (benefit)	$ 0	$ 17	$ 51	$ 19

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Operating activities
Net income	$ 33,366	$ 1,635
Gain on sale of business, net of tax expense	(8,452)
Loss from discontinued operations, net of tax	2,449	1,521
Net income from continuing operations	27,363	3,156
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization	3,584	2,784
Loss from equity method investments	1,354
Impairment of long-lived assets		255
Provision for doubtful accounts	(27)	935
Impairment of intangible assets and goodwill		1,021
Gains on foreign currency transactions	(13)	(108)
Deferred income taxes	(614)	(1,094)
Stock-based compensation	2,517	2,535
Loss on disposition of property and equipment		15
Amortization of held-to-maturity investments	(459)	897
Changes in operating assets and liabilities:
Accounts receivable	22,261	39,861
Unbilled receivables and retentions	(28,782)	600
Inventories	(8,671)	(13,772)
Income tax receivable		(307)
Prepaid expenses and other assets	(831)	413
Accounts payable	(8,841)	(2,972)
Other liabilities	(6,184)	(4,225)
Net cash provided by operating activities of continuing operations	2,657	29,994
Investing activities
Acquisition of property and equipment	(4,135)	(5,455)
Proceeds from sale of business	31,994
Redemptions of held-to-maturity investments	153,029	105,758
Purchases of held-to-maturity investments	(169,402)	(88,763)
Redemptions of available-for-sale investments	2,250	450
Net cash used in investing activities from continuing operations	13,736	11,990
Financing activities
Principal payments of capital lease obligations	(111)	(173)
Tax withholding payment related to net settlement of equity awards	(975)	(313)
Exercise of stock options	71	2,164
Net cash (used in) provided by financing activities from continuing operations	(1,015)	1,678
Discontinued operations
Operating activities of discontinued operations	(7,188)	(5,875)
Investing activities of discontinued operations	(452)	(582)
Net cash used in discontinued operations	(7,640)	(6,457)
Net increase in cash and cash equivalents	7,738	37,205
Cash and cash equivalents at beginning of period	143,517	79,904
Cash and cash equivalents at end of period	151,255	117,109
Cash (refunds) paid, net during the period for:
Income tax refund	5,270	1,803
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $51 and $19, respectively	57	29
Reclassification from share-based liability compensation to equity		384
Change in foreign currency translation adjustments	(31)
Acquisitions of property and equipment included in accounts payable	$ 753	$ 888

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Consolidated Statements of Cash Flows
Unrealized change in fair value on long-term investments recorded in other comprehensive income loss, net of tax expenses (benefit)	$ (51)	$ (19)

Organization and Significant Accounting Policies

6 Months Ended

Oct. 27, 2018

Organization and Significant Accounting Policies

Organization and Significant Accounting Policies

AeroVironment, Inc.

Notes to Consolidated Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies

Organization

AeroVironment, Inc., a Delaware corporation (the “Company”), is engaged in the design, development, production, support and operation of unmanned aircraft systems (“UAS”) for various industries and governmental agencies.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation with respect to the interim financial statements have been included. The results of operations for the three and six months ended October 27, 2018 are not necessarily indicative of the results for the full year ending April 30, 2019. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended April 30, 2018, included in the Company’s Annual Report on Form 10-K.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, including estimates of anticipated contract costs and revenue utilized in the revenue recognition process, that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

The Company’s consolidated financial statements include the assets, liabilities and operating results of wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.

The accompanying consolidated financial statements include the balance sheet and results of operations of Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”), in which the Company increased its ownership to a controlling interest of 85% during the fourth quarter of the fiscal year ended April 30, 2017. Prior to the increase in ownership, the Company's investment in Altoy was accounted for under the equity method.

In December 2017, the Company and SoftBank Corp. (“SoftBank”) formed a joint venture, HAPSMobile, Inc. (“HAPSMobile”). As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile, the Company’s investment has been accounted for as an equity method investment. The Company has presented its proportion of HAPSMobile’s net loss in “Equity method investment activity, net of tax” in the consolidated statements of operations. The carrying value of the investment in HAPSMobile was recorded in “Other assets.” Refer to Note 6—Equity Method Investments for further details.

On June 29, 2018, the Company completed the sale of substantially all of the assets and related liabilities of its efficient energy systems business segment (“the EES Business”) to Webasto Charging Systems, Inc. (“Webasto”) pursuant to an Asset Purchase Agreement (the “Purchase Agreement”) between Webasto and the Company. The Company determined that the EES Business met the criteria for classification as an asset held for sale at April 30, 2018 and represents a strategic shift in the Company’s operations. Therefore, the assets and liabilities and the results of operations of the EES Business are reported as discontinued operations for all periods presented. Refer to Note 2—Discontinued Operations for further details.

Recently Adopted Accounting Standards

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments (Topic 230). This ASU adds and clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The Company’s adoption of ASU No. 2017-01 effective May 1, 2018 did not have a material impact on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01, Business Combinations—Clarifying the definition of a business (Topic 805). This ASU clarifies the definition of a business with the objective of providing a more robust framework to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company’s adoption of ASU No. 2017-01 effective May 1, 2018 did not have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718). This ASU reduces the diversity in practice and cost and complexity when applying the guidance in Topic 718 to a change in terms or conditions of a share-based payment award. The Company’s adoption of ASU No. 2017-09 effective May 1, 2018 did not have a material impact on its consolidated financial statements.

In the first quarter of its fiscal 2019, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), using the full retrospective method. Topic 606 requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services.

Revenue for small UAS product contracts with both the U.S. government and foreign governments under the new standard will be recognized at the point in time when the transfer of control passes to the customer, which is generally when title and risk of loss transfer. Revenue for Tactical Missile Systems (“TMS”) contracts will now be recognized under the new standard over time as costs are incurred. Under previous U.S. GAAP, revenue was generally recognized when deliveries of the related TMS products were made. The new standard accelerates the timing of when the revenue is recognized; however, it does not change the total amount of revenue recognized on these contracts. The new standard does not affect revenue recognition for the Company’s Customer-Funded Research and Development (“R&D”) contracts. The Company continues to recognize revenue for these contracts over time as costs are incurred. The adoption of Topic 606 resulted in a cumulative adjustment to decrease retained earnings by $1,084,000 at May 1, 2018 relating to both the Company’s continuing and discontinued operations. For the Company’s continuing operations, the adoption of Topic 606 resulted in a cumulative adjustment to increase retained earnings by $1,063,000 at May 1, 2018.

The Company applied the standard’s practical expedient that permits the omission of prior-period information about the Company’s remaining performance obligations, the practical expedient that permits the Company to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset the entity otherwise would have recognized is one year or less, and the practical expedient that permits the Company to not retrospectively restate contracts which were modified prior to the Company’s initial date of adoption, or May 1, 2016. Instead the Company reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price. No other practical expedients were applied.

Revenue Recognition

The Company’s revenue is generated pursuant to written contractual arrangements to design, develop, manufacture and/or modify complex products, and to provide related engineering, technical and other services according to the specifications of the customers. These contracts may be firm fixed price (“FFP”), cost plus fixed fee (“CPFF”), or time and materials (“T&M”). The Company considers all such contracts to be within the scope of ASC Topic 606.

Performance Obligations

A performance obligation is a promise in a contract to transfer distinct goods or services to a customer, and it is the unit of account in ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and revenue is recognized when each performance obligation under the terms of a contract is satisfied. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using its observable standalone selling price for products and services. When the standalone selling price is not directly observable, the Company uses its best estimate of the standalone selling price of each distinct good or service in the contract using the cost plus margin approach. This approach estimates the Company’s expected costs of satisfying the performance obligation and then adds an appropriate margin for that distinct good or service.

Contract modifications are routine in the performance of the Company’s contracts. In most instances, contract modifications are for additional goods and/or services that are distinct and, therefore, accounted for as new contracts.

The Company’s performance obligations are satisfied over time or at a point in time. Performance obligations are satisfied over time if the customer receives the benefits as the Company performs, if the customer controls the asset as it is being developed or produced, or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment for the Company’s costs incurred to date plus a reasonable margin. The contractual right to payment is generally supported by termination for convenience clauses that allow the customer to unilaterally terminate the contract for convenience, pay the Company for costs incurred plus a reasonable profit, and take control of any work in process. Revenue for TMS product deliveries and Customer-Funded R&D contracts is recognized over time as costs are incurred. Contract services revenue is composed of revenue recognized on contracts for the provision of services, including repairs and maintenance, training, engineering design, development and prototyping activities, and technical support services. Contract services revenue is recognized over time as services are rendered. Typically, revenue is recognized over time using an input measure (e.g., costs incurred to date relative to total estimated costs at completion) to measure progress. Training services are recognized over time using an output method based on days of training completed.

For performance obligations satisfied over time, revenue is generally recognized using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which correspond with, and thereby best depict, transfer of control to the customer. Contract costs include labor, materials, subcontractors’ costs, other direct costs, and indirect costs applicable on government and commercial contracts.

For performance obligations which are not satisfied over time per the aforementioned criteria above, revenue is recognized at the point in time in which each performance obligation is fully satisfied. The Company’s small UAS product sales revenue is composed of revenue recognized on contracts for the delivery of small UAS systems and spare parts. Revenue is recognized at the point in time when control transfers to the customer, which generally occurs when title and risk of loss have passed to the customer.

On October 27, 2018, the Company had approximately $163,852,000 of remaining performance obligations under fully funded contracts with its customers, which the Company also refers to as funded backlog. The Company currently expects to recognize approximately 77% of the remaining performance obligations as revenue in fiscal 2019, an additional 17% in fiscal 2020, and the balance thereafter.

The Company collects sales, value add, and other taxes concurrent with revenue producing activities, which are excluded from revenue when they are both imposed on a specific transaction and collected from a customer.

Contract Estimates

Accounting for contracts and programs primarily with a duration of less than six months involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, the Company estimates the total expected costs to complete the contract and recognizes revenue based on the percentage of costs incurred at period end. Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company’s performance obligations. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials, subcontractors’ costs, other direct costs, and indirect costs applicable on government and commercial contracts.

Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer.

The nature of the Company’s contracts gives rise to several types of variable consideration, including penalty fees and incentive awards generally for late delivery and early delivery, respectively. The Company generally estimates such variable consideration as the most likely amount. In addition, the Company includes the estimated variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the related uncertainty is resolved. These estimates are based on historical award experience, anticipated performance and the Company’s best judgment at the time. Because of the certainty in estimating these amounts, they are included in the transaction price of the Company’s contracts and the associated remaining performance obligations.

As a significant change in one or more of these estimates could affect the profitability of the Company’s contracts, the Company regularly reviews and updates its contract-related estimates. Changes in cumulative revenue estimates, due to changes in the estimated transaction price or cost estimates, are recorded using a cumulative catch-up adjustment in the period identified for contracts with performance obligations recognized over time. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes the total loss in the quarter it is identified.

The impact of adjustments in contract estimates on the Company’s operating earnings can be reflected in either operating costs and expenses or revenue. The aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was not significant for the three or six month periods ended October 27, 2018 and October 28, 2017. No adjustment on any one contract was material to the Company’s unaudited consolidated financial statements for the three and six month periods ended October 27, 2018 and October 28, 2017.

Revenue by Category

Revenue from products and services during the six months ended October 27, 2018 consisted of revenue derived from over 230 active contracts. The following tables present the Company’s revenue disaggregated by major product line, contract type, customer category and geographic location (in thousands):


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by major product line/program	2018		2017		2018		2017
Small UAS	$	42,199	$	47,021	$	83,415	$	67,082
TMS		15,019		9,366		37,785		18,931
HAPS		12,832		7,071		24,395		9,622
Other		2,929		2,343		5,427		4,527
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by contract type	2018		2017		2018		2017
FFP	$	50,054	$	56,761	$	108,057	$	82,615
CPFF		22,870		8,948		42,853		17,321
T&M		55		92		112		226
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162

Each of these contract types presents advantages and disadvantages. Typically, the Company assumes more risk with FFP contracts. However, these types of contracts generally offer additional profits when the Company completes the work for less than originally estimated. CPFF contracts generally subject the Company to lower risk. Accordingly, the associated base fees are usually lower than fees on FFP contracts. Under T&M contracts, the Company’s profit may vary if actual labor hour rates vary significantly from the negotiated rates.


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by customer category	2018		2017		2018		2017
U.S. government:	$	46,941	$	40,578	$	82,849	$	63,471
Non-U.S. government		26,038		25,223		68,173		36,691
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by geographic location	2018		2017		2018		2017
Domestic	$	46,726	$	39,170	$	82,078	$	60,740
International		26,253		26,631		68,944		39,422
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and customer advances and deposits on the consolidated balance sheet. In the Company’s services contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals, which is generally monthly, or upon the achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets recorded in “Unbilled receivables and retentions” on the consolidated balance sheet. However, the Company sometimes receives advances or deposits from its customers before revenue is recognized, resulting in contract liabilities recorded in “Customer advances” on the consolidated balance sheet. Contract liabilities are not a significant financing component as they are generally utilized to pay for contract costs within a one-year period or are used to ensure the customer meets contractual requirements. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. For the Company’s product revenue, the Company generally receives cash payments subsequent to satisfying the performance obligation via delivery of the product, resulting in billed accounts receivable. Changes in the contract asset and liability balances during the six-month period ended October 27, 2018 were not materially impacted by any other factors. For the Company’s contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration.

Revenue recognized for the three month periods ended October 27, 2018 and October 28, 2017 that was included in contract liability balances at the beginning of each year were $6,000 and $0, respectively; and revenue recognized for the six month periods ended October 27, 2018 and October 28, 2017 that was included in contract liability balances at the beginning of each year were $1,554,000 and $764,000, respectively.

Segments

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s CODM, who is the Chief Executive Officer, makes operating decisions, assesses performance and makes resource allocation decisions, including the focus of R&D, on a consolidated basis for the Company’s continuing operations. Accordingly, the Company operates its business as a single reportable segment.

Investments

The Company’s investments are accounted for as held-to-maturity and reported at amortized cost and fair value, respectively.

Fair Values of Financial Instruments

Fair values of cash and cash equivalents, accounts receivable, unbilled receivables and retentions, and accounts payable approximate cost due to the short period of time to maturity.

Government Contracts

Payments to the Company on government CPFF or T&M contracts are based on provisional, or estimated indirect rates, which are subject to an annual audit by the Defense Contract Audit Agency (“DCAA”). The cost audits result in the negotiation and determination of the final indirect cost rates that the Company may use for the period(s) audited. The final rates, if different from the provisional rates, may create an additional receivable or liability for the Company.

For example, during the course of its audits, the DCAA may question the Company’s incurred costs, and if the DCAA believes the Company has accounted for such costs in a manner inconsistent with the requirements under Federal Acquisition Regulations, the DCAA auditor may recommend to the Company’s administrative contracting officer to disallow such costs. Historically, the Company has not experienced material disallowed costs as a result of government audits. However, the Company can provide no assurance that the DCAA or other government audits will not result in material disallowances for incurred costs in the future.

The Company’s revenue recognition policy calls for revenue recognized on all CPFF or T&M government contracts to be recorded at actual rates unless collectability is not reasonably assured. During the fiscal year ended April 30, 2017, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2011 through 2014 without payment of any consideration. At October 27, 2018 and April 30, 2018, the Company had $179,000 and $77,000 reserved for incurred cost claim audits, respectively.

Earnings Per Share

Basic earnings per share is computed using the weighted-average number of common shares outstanding, excluding shares of unvested restricted stock.

The reconciliation of basic to diluted shares is as follows (in thousands except share data):


		Three Months Ended				Six Months Ended
Income (loss) from	October 27, 2018		October 28, 2017		October 27, 2018		October 28, 2017
Continuing operations attributable to AeroVironment	$	7,047	$	7,756	$	27,384	$	3,385
Discontinued operations, net of tax		(990)		(33)		6,003		(1,521)
Net income attributable to AeroVironment	$	6,057	$	7,723	$	33,387	$	1,864
Denominator for basic earnings per share:
Weighted average common shares		23,667,400		23,477,914		23,621,720		23,407,500
Dilutive effect of employee stock options, restricted stock and restricted stock units		431,433		355,045		437,674		308,497
Denominator for diluted earnings per share		24,098,833		23,832,959		24,059,394		23,715,997

Potentially dilutive shares not included in the computation of diluted weighted-average common shares because their effect would have been anti-dilutive were 598 and 7,130 for the three and six months ended October 27, 2018, respectively. There were no potentially dilutive shares for the three months ended October 27, 2018. Potentially dilutive shares not included in the computation of diluted weighted average common shares because their effect would have been antidilutive were 14,820 for the six months ended October 28, 2017, respectively.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires the lessee to recognize the assets and liabilities for the rights and obligations created by leases with terms of 12 months or more. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. The Company plans to adopt Topic 842 using the required modified retrospective approach with the election to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company currently does not hold a large number of leases that are classified as operating leases under the existing lease standard, with the only significant leases being the Company’s various property leases. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other

Comprehensive Income. This ASU permits but does not require the Company to reclassify the disproportionate income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on items within AOCI to retained earnings. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

Discontinued Operations

6 Months Ended

Oct. 27, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

2. Discontinued Operations

On June 29, 2018, the Company completed the sale of the EES Business to Webasto. In accordance with the terms of the Purchase Agreement, as amended by a Side Letter Agreement executed at the closing, the Company received cash consideration of $31,994,000 upon closing, which resulted in a gain of $11,420,000 which has been recorded in “Gain on sale of business, net of tax” in the consolidated statements of operations. During the three-months ended October 27, 2018, the Company recorded a reduction to the gain resulting from a working capital adjustment of $504,000. In addition, the Company is in the process of submitting a Webasto working capital dispute in the amount of $1,085,000 to an independent accounting firm for resolution pursuant to the terms of the Purchase Agreement. No amounts have been recorded in the consolidated financial statements related to the additional working capital dispute as Company has assessed the likelihood of a loss to be less than probable.

The Company is entitled to receive additional cash consideration of $6,500,000 (the “Holdback”) upon tendering consents to assignment of two remaining customer contracts to Webasto. The Holdback was not recorded in the Company’s consolidated financial statements as the amount was not realized or realizable as of October 27, 2018. The Company’s satisfaction of the requirements for the payment of the Holdback is currently in dispute.

During the three months ended October 27, 2018, Webasto filed a recall report with the National Highway Traffic Safety Administration that named certain of the Company’s EES products as subject to the recall. The Company is continuing to assess the facts giving rise to the recall. Under the terms of the Purchase Agreement, the Company may be responsible for certain costs of such recall of named products the Company manufactured, sold or serviced prior to the closing of the sale of the EES Business.

Concurrent with the execution of the Purchase Agreement, the Company entered into a transition services agreement (the “TSA”) to provide certain general and administrative services to Webasto for a defined period. Income from performing services under the TSA income of $1,221,000 and $1,620,000 has been recorded in “Other income, net” in the consolidated statements of operations for three and six months ended October 27, 2018, respectively.

The Company determined that the EES Business met the criteria for classification as an asset held for sale as of April 30, 2018 and represents a strategic shift in in the Company’s operations. Therefore, the assets and liabilities and the results of operations of the EES Business are reported as discontinued operations for all periods presented. The table below presents the statements of operations data for the EES Business (in thousands).


	Three Months Ended				Six Months Ended
	October 27, 2018		October 28, 2017		October 27, 2018		October 28, 2017
Net sales	$	—	$	9,965	$	4,256	$	17,575
Cost of sales		748		8,293		5,026		14,803
Gross margin		(748)		1,672		(770)		2,772
Selling, general and administrative		50		1,696		1,503		3,740
Research and development		(25)		429		1,040		1,348
Other income, net		—		—		1		—
Loss from discontinued operations before income taxes		(773)		(453)		(3,312)		(2,316)
Benefit for income taxes		(174)		(420)		(863)		(795)
Net loss from discontinued operations	$	(599)	$	(33)	$	(2,449)	$	(1,521)
(Loss) gain on sale of business, net of tax (benefit) expense of $(114) and $2,463 for the three and six months ended October 27, 2018, respectively		(391)		—		8,452		—
Net income (loss) from discontinued operations	$	(990)	$	(33)	$	6,003	$	(1,521)

The major classes of assets and liabilities included in discontinued operations related to the EES Business are presented in the table below (in thousands).


	April 30,
	2018
Carrying amount of assets classified as discontinued operations
Current assets:
Accounts receivable, net of allowance for doubtful accounts of $139 at April 30, 2018	$	6,889
Inventories, net		15,494
Prepaid expenses and other current assets		185
Property and equipment, net		3,100
Total current assets classified as discontinued operations		25,668
Total assets classified as discontinued operations	$	25,668
Carrying amount of liabilities classified as discontinued operations
Current liabilities:
Accounts payable	$	5,121
Wages and related accruals		1,946
Customer advances		1,028
Other current liabilities		1,199
Total current liabilities		9,294
Total liabilities classified as discontinued operations	$	9,294

Investments

6 Months Ended

Oct. 27, 2018

Investments

Investments

3. Investments

Investments consist of the following (in thousands):


	October 27,		April 30,
	2018		2018
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	14,326	$	35,344
U.S. government securities		36,948		31,620
Corporate bonds		82,262		46,685
Certificates of deposit		5,000		—
Total held-to-maturity and short-term investments	$	138,536	$	113,649
Long-term investments:
Held-to-maturity securities:
Municipal securities	$	993	$	2,046
U.S. government securities		26,746		27,356
Corporate bonds		2,720		9,112
Total held-to-maturity investments		30,459		38,514
Available-for-sale securities:
Auction rate securities		—		2,142
Total available-for-sale investments		—		2,142
Total long-term investments	$	30,459	$	40,656

Held-To-Maturity Securities

As of October 27, 2018 and April 30, 2018, the balance of held-to-maturity securities consisted of state and local government municipal securities, U.S. treasury securities, U.S. government-guaranteed agency securities, U.S. government-sponsored agency debt securities, highly rated corporate bonds, and certificates of deposit. Interest earned from these investments is recorded in interest income.

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of October 27, 2018 were as follows (in thousands):


	October 27, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	15,319	$	—	$	(12)	$	15,307
U.S. government securities		63,694		3		(271)		63,426
Corporate bonds		84,982		2		(76)		84,908
Certificates of deposit		5,000		—		—		5,000
Total held-to-maturity investments	$	168,995	$	5	$	(359)	$	168,641

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2018 were as follows (in thousands):


	April 30, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	37,390	$	9	$	(36)	$	37,363
U.S. government securities		58,976		—		(367)		58,609
Corporate bonds		55,797		2		(71)		55,728
Certificates of deposit		—		—		—		—
Total held-to-maturity investments	$	152,163	$	11	$	(474)	$	151,700

The amortized cost and fair value of the held-to-maturity securities by contractual maturity at October 27, 2018 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	138,536	$	138,270
Due after one year through five years		30,459		30,371
Total	$	168,995	$	168,641

Available-For-Sale Securities

Auction Rate Securities

As of April 30, 2018, the balance of available-for-sale auction rate securities consisted of two investment grade auction rate municipal bonds with maturities ranging from 1 to 16 years. These investments have characteristics similar to short term investments, because at predetermined intervals, generally ranging from 30 to 35 days, there is a new auction process at which the interest rates for these securities are reset to current interest rates. At the end of such period, the Company chooses to roll over its holdings or redeem the investments for cash. A market maker facilitates the redemption of the securities and the underlying issuers are not required to redeem the investment within 365 days. Interest earned from these investments is recorded in interest income.

During the three months ended July 28, 2018, the remaining investment grade auction rate municipal bonds were redeemed at par value.

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the auction rate securities as of April 30, 2018, were as follows (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Auction rate securities	$	2,250	$	—	$	(108)	$	2,142
Total available-for-sale investments	$	2,250	$	—	$	(108)	$	2,142

Fair Value Measurements

6 Months Ended

Oct. 27, 2018

Fair Value Measurements

Fair Value Measurements

4. Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:

Level 1—Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date.

Level 2—Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data.

Level 3—Inputs to the valuation that are unobservable inputs for the asset or liability.

The Company did not have any financial assets measured at fair value on a recurring basis at October 27, 2018 as the Company’s remaining auction rate securities were redeemed during the three months ended July 28, 2018 at par value. The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) (in thousands):


	Fair Value
	Measurements Using
	Significant
	Unobservable Inputs
Description	(Level 3)
Balance at May 1, 2018	$	2,142
Transfers to Level 3		—
Total gains (realized or unrealized)
Included in earnings		—
Included in other comprehensive income		108
Settlements		(2,250)
Balance at October 27, 2018	$	—
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at October 27, 2018	$	—

The auction rate securities were valued using a discounted cash flow model. The analysis considered, among other items, the collateralization underlying the security investments, the creditworthiness of the counterparty, the timing of expected future cash flows and the estimated date upon which the security is expected to have a successful auction.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories, net

6 Months Ended

Oct. 27, 2018

Inventories, net

Inventories, net

5. Inventories, net

Inventories consist of the following (in thousands):


	October 27,		April 30,
	2018		2018
Raw materials	$	14,271	$	12,020
Work in process		12,311		14,780
Finished goods		24,241		14,578
Inventories, gross		50,823		41,378
Reserve for inventory excess and obsolescence		(4,727)		(3,953)
Inventories, net	$	46,096	$	37,425

Equity Method Investments	6 Months Ended
Equity Method Investments	Oct. 27, 2018
Equity Method Investments
Equity Method Investments	6. Equity Method Investments In December 2017, the Company and SoftBank formed a joint venture, HAPSMobile. HAPSMobile is a Japanese corporation that is 5% owned by the Company and 95% owned by SoftBank and is governed by a Joint Venture Agreement (the “JVA”). The Company purchased its 5% stake in HAPSMobile for 210,000,000 yen ($1,860,000) effective as of December 27, 2017 and 150,000,000 yen ($1,407,000) on April 17, 2018. Under the JVA, the Company committed to make an additional capital contribution of 209,500,000 yen (approximately $1,900,000) in or around January 2019 to maintain its 5% ownership stake. Additionally, under the JVA, the Company may purchase additional shares of HAPSMobile, at the same per share price for the purchase of its original 5% stake, to increase its ownership percentage of HAPSMobile up to 19% prior to the first flight test of the prototype aircraft produced under a design and development agreement between HAPSMobile and the Company. As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile, the Company’s investment is accounted for as an equity method investment. For the three and six months ended October 27, 2018, the Company recorded 5% of the net loss of HAPSMobile, or $752,000 and $1,354,000, respectively, in “Equity method investment activity, net of tax” in the unaudited consolidated statement of operations. At October 27, 2018, the carrying value of the investment in HAPSMobile was $625,000 and was recorded in “Other assets.”

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.

Intangibles

6 Months Ended

Oct. 27, 2018

Intangibles

Intangibles

8. Intangibles

Intangibles are included in other assets on the consolidated balance sheets. The components of intangibles are as follows:


	October 27,		April 30,
	2018		2018
	(In thousands)
Licenses	$	1,006	$	818
Customer relationships		733		733
Trademarks and tradenames		28		28
Other		3		3
Intangibles, gross		1,770		1,582
Less accumulated amortization		(1,104)		(954)
Intangibles, net	$	666	$	628

The customer relationships, trademarks and tradenames, and other intangible assets were recognized in conjunction with the Company’s acquisition of a controlling interest in Altoy on February 1, 2017.

Accumulated Other Comprehensive Income (Loss) and Reclassifications Adjustments

6 Months Ended

Oct. 27, 2018

Accumulated Other Comprehensive Income (Loss) and Reclassifications Adjustments

Accumulated Other Comprehensive Loss and Reclassifications

9. Accumulated Other Comprehensive Income (Loss) and Reclassifications Adjustments

The components of accumulated other comprehensive loss and adjustments are as follows (in thousands):


	Available-for-Sale		Foreign Currency		Accumulated Other
	Securities		Translation Adjustments		Comprehensive Income (Loss)
Balance, net of $76 of taxes, as of April 30, 2018	$	(57)	$	36	$	(21)
Reclassifications out of accumulated other comprehensive loss, net of taxes		—		—		—
Change in foreign currency translation adjustments, net of $0 taxes		—		(31)		(31)
Unrealized gains, net of $51 of taxes		57		—		57
Balance, net of $0 of taxes, as of October 27, 2018	$	—	$	5	$	5

Customer-Funded Research & Development	6 Months Ended
Customer-Funded Research & Development	Oct. 27, 2018
Customer-Funded Research & Development
Customer-Funded Research & Development	10. Customer-Funded Research & Development Customer-funded R&D costs are incurred pursuant to contracts (revenue arrangements) to perform R&D activities according to customer specifications. These costs are direct contract costs and are expensed to cost of sales as costs are incurred. Revenue from customer-funded R&D contracts are recognized in accordance with Topic 606 over time as costs are incurred. Revenue from customer-funded R&D was approximately $18,790,000 and $35,907,000 for the three and six months ended October 27, 2018, respectively. Revenue from customer-funded R&D was approximately $11,864,000 and $20,662,000 for the three and six months ended October 28, 2017, respectively.

Long-Term Incentive Awards	6 Months Ended
Long-Term Incentive Awards	Oct. 27, 2018
Long-Term Incentive Awards.
Stock-Based Compensation	11. Long-Term Incentive Awards During the three months ended July 28, 2018, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2019 LTIP”). Awards under the Fiscal 2019 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2019, July 2020 and July 2021, and (ii) performance-based restricted stock units (“PRSUs”) which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2021. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of common stock. As of October 27, 2018, the Company recorded $255,000 of compensation expense related to the Fiscal 2019 LTIP. At October 27, 2018, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2019 LTIP is $3,733,000. During the three months ended July 29, 2017, the Company granted awards under the Restated 2006 Plan to key employees (“Fiscal 2018 LTIP”). Awards under the Fiscal 2018 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2018, July 2019 and July 2020, and (ii) PRSUs which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2020. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of common stock. As of October 27, 2018, the Company recorded $603,000 of compensation expense related to the Fiscal 2018 LTIP. At October 27, 2018, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2018 LTIP is $2,850,000. During the three months ended July 29, 2017, the Company also granted awards under the Restated 2006 Plan to key employees (“Fiscal 2017 LTIP”). Awards under the Fiscal 2017 LTIP consist of: (i) time-based restricted stock awards which vest in equal tranches in July 2017, July 2018 and July 2019, and (ii) PRSUs which vest based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2019. At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric. Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 200% for each such metric were also established. The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of common stock. As of October 27, 2018, the Company recorded $289,000 of compensation expense related to the Fiscal 2017 LTIP. At October 27, 2018, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2017 LTIP is $2,630,000. At each reporting period, the Company reassesses the probability of achieving the performance targets. The estimation of whether the performance targets will be achieved requires judgment, and, to the extent actual results or updated estimates differ from the Company’s current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period estimates are revised.

Income Taxes	6 Months Ended
Income Taxes	Oct. 27, 2018
Income Taxes
Income Taxes	12. Income Taxes On December 22, 2017, the Tax Act was signed into law, which resulted in significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, repeal of the corporate alternative minimum tax, repeal of the deduction for domestic production activities, a deduction for certain Foreign Derived Intangible Income (“FDII”), and limitation on the deductibility of certain executive compensation. In accordance with ASC 740, Income Taxes, the Company is required to record the effects of tax law changes in the period enacted. As the Company has an April 30 fiscal year end, its U.S. federal corporate income tax rate was blended in fiscal 2018, resulting in a statutory federal rate of approximately 30.4% (8 months at 35% and 4 months at 21%), and 21% for subsequent fiscal years. The Company remeasured its existing deferred tax assets and liabilities at the rate the Company expects to be in effect when those deferred taxes will be realized and recorded a one-time deferred tax expense of approximately $3,300,000 during the fiscal year ended April 30, 2018. The Company followed the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740 in situations where the Company does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Act’s enactment date and ending when the Company has obtained, prepared, and analyzed the information needed in order to complete the accounting requirements but in no circumstances should the measurement period extend beyond one year from the enactment date. The $3,300,000 expense for the one-time deferred tax remeasurement is a provisional estimate of the impact of the Tax Act. In addition, for the year ending April 30, 2019 the Company has estimated that the FDII deduction will benefit the Company’s full year estimated effective tax rate by approximately 2% and that it will not have an income tax payable as a result of the one-time deemed repatriation transition tax on unrepatriated foreign earnings. These amounts are considered provisional because they use estimates for which final tax computations or returns have not been completed and because estimated amounts may be impacted by future regulatory and accounting guidance if and when issued. The Company’s financial statements do not reflect the impact of certain aspects of the Tax Act as the Company did not have the necessary information available, prepared, or analyzed (including computations), or because sufficient guidance has not been issued in order to determine an actual or provisional amount for the tax effects of the Act. To date, these aspects include the new compensation related provisions under section 162(m) and the state income tax conformity to the Tax Act. For the three and six months ended October 27, 2018, the Company recorded a provision for income taxes of $1,211,000 and $3,778,000, respectively, yielding effective tax rates of 13.5% and 11.6%, respectively. For the three and six months ended October 28, 2017, the Company recorded a provision for income taxes of $3,358,000 and $137,000, respectively, yielding effective tax rates of 30.8% and 4.2%, respectively. The variance from statutory rates for the three and six months ended October 27, 2018 was primarily due to federal R&D credits and the recording of discrete excess tax benefits of $357,000 and $1,507,000, respectively, resulting from the vesting of restricted stock awards and exercises of stock options. The variance from statutory rates for the three and six months ended October 28, 2017 was primarily due to federal R&D credits and the recording of discrete excess tax benefits of $376,000 and $1,401,000 resulting from the vesting of restricted stock awards and exercises of stock options.

Share Repurchase	6 Months Ended
Share Repurchase	Oct. 27, 2018
Share Repurchase
Share Repurchase	13. Share Repurchase In September 2015, the Company’s Board of Directors authorized a program to repurchase up to $25,000,000 of the Company’s common stock with no specified termination date for the program. No shares were repurchased under the program during the three and six months ended October 27, 2018. As of October 27, 2018 and April 30, 2018, approximately $21.2 million remained authorized for future repurchases under this program.

Related Party Transactions	6 Months Ended
Related Party Transactions	Oct. 27, 2018
Related Party Transactions
Related Party Transactions	14. Related Party Transactions Related party transactions are defined as transactions between the Company and entities either controlled by the Company or that the Company can significantly influence. Although SoftBank has a controlling interest in HAPSMobile, the Company determined that it has the ability to exercise significant influence over HAPSMobile. As such, HAPSMobile and SoftBank are considered related parties of the Company. Concurrent with the formation of HAPSMobile, the Company executed a Design and Development Agreement (the “DDA”) with HAPSMobile. Under the DDA, the Company will use its best efforts, up to a maximum net value of $76,589,000, to design and build prototype solar powered high altitude aircraft and ground control stations for HAPSMobile and conduct low altitude and high altitude flight tests of the prototype aircraft. The Company recorded revenue under the DDA and preliminary design agreements between the Company and SoftBank of $12,832,000 and $24,395,000 for the three and six months ended October 27, 2018, respectively. The Company recorded revenue under the DDA and preliminary design agreements between the Company and SoftBank of $7,071,000 and $9,622,000 for the three and six months ended October 28, 2017, respectively. At October 27, 2018 and April 30, 2018, the Company had unbilled related party receivables from HAPSMobile of $7,764,000 and $3,145,000 recorded in “Unbilled receivables and retentions” on the consolidated balance sheets, respectively. During the year ended April 30, 2018, the Company purchased a 5% stake in accordance with the JVA. Refer to Note 6—Equity Method Investments for further details.

Legal Settlements	6 Months Ended
Legal Settlements	Oct. 27, 2018
Disclosure Text Block [Abstract]
Legal Settlements	15. Legal Settlements In May 2018, the Company entered into a settlement agreement to dismiss its claims against MicaSense Inc. and former AeroVironment employees, Gabriel Torres, Justin McAllister, and Jeff McBride. The terms and amount of the settlement agreement are confidential. The proceeds of the settlement were received during the three months ended July 28, 2018 and have been recorded in “Other income, net” on the consolidated statements of operations.

Impact of Adoption of New Accounting Standards

6 Months Ended

Oct. 27, 2018

Revenue, Initial Application Period Cumulative Effect Transition [Abstract]

Impact of Adoption of New Accounting Standards

16. Impact of Adoption of New Accounting Standards

During the three months ended July 28, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The impact to the Company’s unaudited balance sheet as a result of adopting the standard was as follows (in thousands):


			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 unaudited statement of operations for the three and six months ended October 27, 2018 (in thousands except share and per share data).


	Three Months Ended		Effect of the		Three Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Revenue:
Product sales	$	43,675	$	4,745	$	48,420
Contract services (inclusive of related party revenue of $7,071 for the three months ended October 28, 2017, respectively)		20,313		(2,932)		17,381
		63,988		1,813		65,801
Cost of sales:
Product sales		23,194		2,002		25,196
Contract services		12,101		(1,639)		10,462
		35,295		363		35,658
Gross margin:
Product sales		20,481		2,743		23,224
Contract services		8,212		(1,293)		6,919
		28,693		1,450		30,143
Selling, general and administrative		12,768		—		12,768
Research and development		6,844		—		6,844
Income from continuing operations		9,081		1,450		10,531
Other income (expense):
Interest income, net		432		—		432
Other (expense), net		(55)		—		(55)
Income from continuing operations before income taxes		9,458		1,450		10,908
Provision for income taxes		2,975		383		3,358
Equity method investment activity, net of tax		—		—		—
Net income from continuing operations		6,483		1,067	$	7,550
Discontinued operations:
Gain on sale of business, net of tax expense of $0 for the three months ended October 28, 2017		—		—		—
Income (Loss) from discontinued operations, net of tax		329		(362)		(33)
Net income (loss) from discontinued operations		329		(362)		(33)
Net income		6,812		705		7,517
Net loss attributable to noncontrolling interest		206		—		206
Net income attributable to AeroVironment	$	7,018	$	705	$	7,723
Net income (loss) per share attributable to AeroVironment—Basic
Continuing operations	$	0.29	$	0.05	$	0.33
Discontinued operations		0.01		(0.02)		—
Net income per share attributable to AeroVironment—Basic	$	0.30	$	0.03	$	0.33
Net income (loss) per share attributable to AeroVironment—Diluted
Continuing operations	$	0.28	$	0.05	$	0.32
Discontinued operations		0.01		(0.02)		—
Net income per share attributable to AeroVironment—Diluted	$	0.29	$	0.03	$	0.32
Weighted-average shares outstanding:
Basic		23,477,914		23,477,914		23,477,914
Diluted		23,832,959		23,832,959		23,832,959


	Six Months Ended		Effect of the		Six Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Revenue:
Product sales	$	67,773	$	(573)	$	67,200
Contract services (inclusive of related party revenue of $9,622 for the six months ended October 28, 2017, respectively)		32,465		497		32,962
		100,238		(76)		100,162
Cost of sales:
Product sales		41,978		(810)		41,168
Contract services		19,472		681		20,153
		61,450		(129)		61,321
Gross margin:
Product sales		25,795		237		26,032
Contract services		12,993		(184)		12,809
		38,788		53		38,841
Selling, general and administrative		24,055		—		24,055
Research and development		12,386		—		12,386
Income from continuing operations		2,347		53		2,400
Other income (expense):
Interest income, net		944		—		944
Other expense, net		(51)		—		(51)
Income from continuing operations before income taxes		3,240		53		3,293
Provision (benefit) for income taxes		144		(7)		137
Equity method investment activity, net of tax		—		—		—
Net income from continuing operations		3,096		60	$	3,156
Discontinued operations:
Gain on sale of business, net of tax expense of $0 for the six months ended October 28, 2017		—		—		—
Loss from discontinued operations, net of tax		(750)		(771)		(1,521)
Net loss from discontinued operations		(750)		(771)		(1,521)
Net income (loss)		2,346		(711)		1,635
Net loss attributable to noncontrolling interest		229		—		229
Net income (loss) attributable to AeroVironment	$	2,575	$	(711)	$	1,864
Net income (loss) per share attributable to AeroVironment—Basic
Continuing operations	$	0.14	$	0.00	$	0.14
Discontinued operations		(0.03)		(0.03)		(0.06)
Net income (loss) per share attributable to AeroVironment—Basic	$	0.11	$	(0.03)	$	0.08
Net income (loss) per share attributable to AeroVironment—Diluted
Continuing operations	$	0.14	$	0.00	$	0.14
Discontinued operations		(0.03)		(0.03)		(0.06)
Net income (loss) per share attributable to AeroVironment—Diluted	$	0.11	$	(0.03)	$	0.08
Weighted-average shares outstanding:
Basic		23,407,500		23,407,500		23,407,500
Diluted		23,715,997		23,715,997		23,715,997

The tables below presents the impact of adoption on the Company’s unaudited statement of comprehensive loss for the three and six months October 28, 2017 (in thousands).


	Three Months Ended		Effect of the		Three Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Net income	$	6,812	$	705	$	7,517
Other comprehensive income:
Change in foreign currency translation adjustments		—		—		—
Unrealized gain on investments, net of deferred tax expense of $17 for the three months ended October 28, 2017, respectively		26		—		26
Total comprehensive income		6,838		705	$	7,543
Net loss attributable to noncontrolling interest		206		—		206
Comprehensive income attributable to AeroVironment	$	7,044	$	705	$	7,749


	Six Months Ended		Effect of the		Six Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Net income	$	2,346	$	(711)	$	1,635
Other comprehensive income:
Change in foreign currency translation adjustments		—		—		—
Unrealized gain on investments, net of deferred tax expense of $19 for the six months ended October 28, 2017, respectively		29		—		29
Total comprehensive income		2,375		(711)	$	1,664
Net loss attributable to noncontrolling interest		229		—		229
Comprehensive income attributable to AeroVironment	$	2,604	$	(711)	$	1,893

The table below presents the impact of adoption on the Company’s unaudited statement of cash flows (in thousands).


	Six Months Ended		Effect of the		Six Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Operating activities
Net income	$	2,346	$	(711)	$	1,635
Gain on sale of business, net of tax		—		—		—
Loss from discontinued operations, net of tax		750		771		1,521
Net income from continuing operations		3,096		60		3,156
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization		2,784		—		2,784
Loss from equity method investments		—		—		—
Impairment of long-lived assets		255		—		255
Provision for doubtful accounts		935		—		935
Impairment of intangible assets and goodwill		1,021		—		1,021
Gains on foreign currency transactions		(108)		—		(108)
Deferred income taxes		(1,094)		—		(1,094)
Stock-based compensation		2,535		—		2,535
Loss on disposition of property and equipment		15		—		15
Amortization of held-to-maturity investments		897		—		897
Changes in operating assets and liabilities:
Accounts receivable		39,861		—		39,861
Unbilled receivables and retentions		625		(25)		600
Inventories		(13,621)		(151)		(13,772)
Income tax receivable		—		(307)		(307)
Prepaid expenses and other assets		413		—		413
Accounts payable		(2,972)		—		(2,972)
Other liabilities		(4,348)		123		(4,225)
Net cash provided by (used in) operating activities of continuing operations		30,294		(300)		29,994
Investing activities
Acquisition of property and equipment		(5,455)		—		(5,455)
Proceeds from sale of business		—		—		—
Redemptions of held-to-maturity investments		105,758		—		105,758
Purchases of held-to-maturity investments		(88,763)		—		(88,763)
Redemptions of available-for-sale investments		450		—		450
Net cash provided by investing activities from continuing operations		11,990		—		11,990
Financing activities
Principal payments of capital lease obligations		(173)		—		(173)
Tax withholding payment related to net settlement of equity awards		(313)		—		(313)
Exercise of stock options		2,164		—		2,164
Net cash provided by financing activities from continuing operations		1,678		—		1,678
Discontinued operations
Operating activities of discontinued operations		(6,175)		300		(5,875)
Investing activities of discontinued operations		(582)		—		(582)
Financing activities of discontinued operations		—		—		—
Net cash used in discontinued operations		(6,757)		300		(6,457)
Net increase in cash and cash equivalents		37,205		—		37,205
Cash and cash equivalents at beginning of period		79,904		—		79,904
Cash and cash equivalents at end of period	$	117,109	$	—	$	117,109
Supplemental disclosures of cash flow information
Cash paid, net during the period for:
Income taxes	$	1,803		—	$	1,803
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $19	$	29		—	$	29
Reclassification from share-based liability compensation to equity	$	384		—	$	384
Change in foreign currency translation adjustments	$	—		—	$	—
Acquisitions of property and equipment included in accounts payable	$	888		—	$	888

Organization and Significant Accounting Policies (Policies)

6 Months Ended

Oct. 27, 2018

Organization and Significant Accounting Policies

Segments

Basis of Presentation

The Company’s consolidated financial statements include the assets, liabilities and operating results of wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated.

Recently Adopted Accounting Standards

Revenue Recognition

Performance Obligations

Contract Estimates

Revenue by Category


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by major product line/program	2018		2017		2018		2017
Small UAS	$	42,199	$	47,021	$	83,415	$	67,082
TMS		15,019		9,366		37,785		18,931
HAPS		12,832		7,071		24,395		9,622
Other		2,929		2,343		5,427		4,527
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by contract type	2018		2017		2018		2017
FFP	$	50,054	$	56,761	$	108,057	$	82,615
CPFF		22,870		8,948		42,853		17,321
T&M		55		92		112		226
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by customer category	2018		2017		2018		2017
U.S. government:	$	46,941	$	40,578	$	82,849	$	63,471
Non-U.S. government		26,038		25,223		68,173		36,691
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by geographic location	2018		2017		2018		2017
Domestic	$	46,726	$	39,170	$	82,078	$	60,740
International		26,253		26,631		68,944		39,422
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162

Contract Balances

Segments

Investments

The Company’s investments are accounted for as held-to-maturity and reported at amortized cost and fair value, respectively.

Fair Values of Financial Instruments

Fair values of cash and cash equivalents, accounts receivable, unbilled receivables and retentions, and accounts payable approximate cost due to the short period of time to maturity.

Government Contracts

Earnings Per Share

Basic earnings per share is computed using the weighted-average number of common shares outstanding, excluding shares of unvested restricted stock.

The reconciliation of basic to diluted shares is as follows (in thousands except share data):


		Three Months Ended				Six Months Ended
Income (loss) from	October 27, 2018		October 28, 2017		October 27, 2018		October 28, 2017
Continuing operations attributable to AeroVironment	$	7,047	$	7,756	$	27,384	$	3,385
Discontinued operations, net of tax		(990)		(33)		6,003		(1,521)
Net income attributable to AeroVironment	$	6,057	$	7,723	$	33,387	$	1,864
Denominator for basic earnings per share:
Weighted average common shares		23,667,400		23,477,914		23,621,720		23,407,500
Dilutive effect of employee stock options, restricted stock and restricted stock units		431,433		355,045		437,674		308,497
Denominator for diluted earnings per share		24,098,833		23,832,959		24,059,394		23,715,997

Recently Issued Accounting Standards

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other

Organization and Significant Accounting Policies (Tables)

6 Months Ended

Oct. 27, 2018

Organization and Significant Accounting Policies

Schedule of revenue by category


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by major product line/program	2018		2017		2018		2017
Small UAS	$	42,199	$	47,021	$	83,415	$	67,082
TMS		15,019		9,366		37,785		18,931
HAPS		12,832		7,071		24,395		9,622
Other		2,929		2,343		5,427		4,527
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by contract type	2018		2017		2018		2017
FFP	$	50,054	$	56,761	$	108,057	$	82,615
CPFF		22,870		8,948		42,853		17,321
T&M		55		92		112		226
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by customer category	2018		2017		2018		2017
U.S. government:	$	46,941	$	40,578	$	82,849	$	63,471
Non-U.S. government		26,038		25,223		68,173		36,691
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162


	Three Months Ended				Six Months Ended
	October 27,		October 28,		October 27,		October 28,
Revenue by geographic location	2018		2017		2018		2017
Domestic	$	46,726	$	39,170	$	82,078	$	60,740
International		26,253		26,631		68,944		39,422
Total revenue	$	72,979	$	65,801	$	151,022	$	100,162

Schedule of reconciliation of basic to diluted shares

The reconciliation of basic to diluted shares is as follows (in thousands except share data):


		Three Months Ended				Six Months Ended
Income (loss) from	October 27, 2018		October 28, 2017		October 27, 2018		October 28, 2017
Continuing operations attributable to AeroVironment	$	7,047	$	7,756	$	27,384	$	3,385
Discontinued operations, net of tax		(990)		(33)		6,003		(1,521)
Net income attributable to AeroVironment	$	6,057	$	7,723	$	33,387	$	1,864
Denominator for basic earnings per share:
Weighted average common shares		23,667,400		23,477,914		23,621,720		23,407,500
Dilutive effect of employee stock options, restricted stock and restricted stock units		431,433		355,045		437,674		308,497
Denominator for diluted earnings per share		24,098,833		23,832,959		24,059,394		23,715,997

Discontinued Operations (Tables)

6 Months Ended

Oct. 27, 2018

Discontinued Operations and Disposal Groups [Abstract]

Schedule of statements of operations data for the EES Business

The table below presents the statements of operations data for the EES Business (in thousands).


	Three Months Ended				Six Months Ended
	October 27, 2018		October 28, 2017		October 27, 2018		October 28, 2017
Net sales	$	—	$	9,965	$	4,256	$	17,575
Cost of sales		748		8,293		5,026		14,803
Gross margin		(748)		1,672		(770)		2,772
Selling, general and administrative		50		1,696		1,503		3,740
Research and development		(25)		429		1,040		1,348
Other income, net		—		—		1		—
Loss from discontinued operations before income taxes		(773)		(453)		(3,312)		(2,316)
Benefit for income taxes		(174)		(420)		(863)		(795)
Net loss from discontinued operations	$	(599)	$	(33)	$	(2,449)	$	(1,521)
(Loss) gain on sale of business, net of tax (benefit) expense of $(114) and $2,463 for the three and six months ended October 27, 2018, respectively		(391)		—		8,452		—
Net income (loss) from discontinued operations	$	(990)	$	(33)	$	6,003	$	(1,521)

Major classes of assets and liabilities

The major classes of assets and liabilities included in discontinued operations related to the EES Business are presented in the table below (in thousands).


	April 30,
	2018
Carrying amount of assets classified as discontinued operations
Current assets:
Accounts receivable, net of allowance for doubtful accounts of $139 at April 30, 2018	$	6,889
Inventories, net		15,494
Prepaid expenses and other current assets		185
Property and equipment, net		3,100
Total current assets classified as discontinued operations		25,668
Total assets classified as discontinued operations	$	25,668
Carrying amount of liabilities classified as discontinued operations
Current liabilities:
Accounts payable	$	5,121
Wages and related accruals		1,946
Customer advances		1,028
Other current liabilities		1,199
Total current liabilities		9,294
Total liabilities classified as discontinued operations	$	9,294

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721665-107760

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109226691&loc=d3e2941-110230

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Investments (Tables)

6 Months Ended

Oct. 27, 2018

Investments

Schedule of investments

Investments consist of the following (in thousands):


	October 27,		April 30,
	2018		2018
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	14,326	$	35,344
U.S. government securities		36,948		31,620
Corporate bonds		82,262		46,685
Certificates of deposit		5,000		—
Total held-to-maturity and short-term investments	$	138,536	$	113,649
Long-term investments:
Held-to-maturity securities:
Municipal securities	$	993	$	2,046
U.S. government securities		26,746		27,356
Corporate bonds		2,720		9,112
Total held-to-maturity investments		30,459		38,514
Available-for-sale securities:
Auction rate securities		—		2,142
Total available-for-sale investments		—		2,142
Total long-term investments	$	30,459	$	40,656

Held to maturity securities

Investments

Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of held-to-maturity investments

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of October 27, 2018 were as follows (in thousands):


	October 27, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	15,319	$	—	$	(12)	$	15,307
U.S. government securities		63,694		3		(271)		63,426
Corporate bonds		84,982		2		(76)		84,908
Certificates of deposit		5,000		—		—		5,000
Total held-to-maturity investments	$	168,995	$	5	$	(359)	$	168,641

The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the held-to-maturity investments as of April 30, 2018 were as follows (in thousands):


	April 30, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	37,390	$	9	$	(36)	$	37,363
U.S. government securities		58,976		—		(367)		58,609
Corporate bonds		55,797		2		(71)		55,728
Certificates of deposit		—		—		—		—
Total held-to-maturity investments	$	152,163	$	11	$	(474)	$	151,700

Schedule of amortized cost and fair value by contractual maturity

The amortized cost and fair value of the held-to-maturity securities by contractual maturity at October 27, 2018 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	138,536	$	138,270
Due after one year through five years		30,459		30,371
Total	$	168,995	$	168,641

Available-for-sale securities | Auction rate securities

Investments

Schedule of amortized cost and fair value by contractual maturity


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
Auction rate securities	$	2,250	$	—	$	(108)	$	2,142
Total available-for-sale investments	$	2,250	$	—	$	(108)	$	2,142

Fair Value Measurements (Tables)

6 Months Ended

Oct. 27, 2018

Fair Value Measurements

Schedule of financial assets measured at fair value on a recurring basis

The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) (in thousands):


	Fair Value
	Measurements Using
	Significant
	Unobservable Inputs
Description	(Level 3)
Balance at May 1, 2018	$	2,142
Transfers to Level 3		—
Total gains (realized or unrealized)
Included in earnings		—
Included in other comprehensive income		108
Settlements		(2,250)
Balance at October 27, 2018	$	—
The amount of total gains or (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at October 27, 2018	$	—

Inventories, net (Tables)

6 Months Ended

Oct. 27, 2018

Inventories, net

Schedule of inventories

Inventories consist of the following (in thousands):


	October 27,		April 30,
	2018		2018
Raw materials	$	14,271	$	12,020
Work in process		12,311		14,780
Finished goods		24,241		14,578
Inventories, gross		50,823		41,378
Reserve for inventory excess and obsolescence		(4,727)		(3,953)
Inventories, net	$	46,096	$	37,425

Warranty Reserves (Tables)

6 Months Ended

Oct. 27, 2018

Warranty Reserves

Summary of warranty reserve activity

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

Intangibles (Tables)

6 Months Ended

Oct. 27, 2018

Intangibles

Schedule of components of intangibles


	October 27,		April 30,
	2018		2018
	(In thousands)
Licenses	$	1,006	$	818
Customer relationships		733		733
Trademarks and tradenames		28		28
Other		3		3
Intangibles, gross		1,770		1,582
Less accumulated amortization		(1,104)		(954)
Intangibles, net	$	666	$	628

Accumulated Other Comprehensive Income (Loss) and Reclassifications Adjustments (Tables)

6 Months Ended

Oct. 27, 2018

Accumulated Other Comprehensive Income (Loss) and Reclassifications Adjustments

Schedule of components of accumulated other comprehensive loss

The components of accumulated other comprehensive loss and adjustments are as follows (in thousands):


	Available-for-Sale		Foreign Currency		Accumulated Other
	Securities		Translation Adjustments		Comprehensive Income (Loss)
Balance, net of $76 of taxes, as of April 30, 2018	$	(57)	$	36	$	(21)
Reclassifications out of accumulated other comprehensive loss, net of taxes		—		—		—
Change in foreign currency translation adjustments, net of $0 taxes		—		(31)		(31)
Unrealized gains, net of $51 of taxes		57		—		57
Balance, net of $0 of taxes, as of October 27, 2018	$	—	$	5	$	5

Impact of Adoption of New Accounting Standards (Tables)

6 Months Ended

Oct. 27, 2018

Revenue, Initial Application Period Cumulative Effect Transition [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

16. Impact of Adoption of New Accounting Standards


			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


	Three Months Ended		Effect of the		Three Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Revenue:
Product sales	$	43,675	$	4,745	$	48,420
Contract services (inclusive of related party revenue of $7,071 for the three months ended October 28, 2017, respectively)		20,313		(2,932)		17,381
		63,988		1,813		65,801
Cost of sales:
Product sales		23,194		2,002		25,196
Contract services		12,101		(1,639)		10,462
		35,295		363		35,658
Gross margin:
Product sales		20,481		2,743		23,224
Contract services		8,212		(1,293)		6,919
		28,693		1,450		30,143
Selling, general and administrative		12,768		—		12,768
Research and development		6,844		—		6,844
Income from continuing operations		9,081		1,450		10,531
Other income (expense):
Interest income, net		432		—		432
Other (expense), net		(55)		—		(55)
Income from continuing operations before income taxes		9,458		1,450		10,908
Provision for income taxes		2,975		383		3,358
Equity method investment activity, net of tax		—		—		—
Net income from continuing operations		6,483		1,067	$	7,550
Discontinued operations:
Gain on sale of business, net of tax expense of $0 for the three months ended October 28, 2017		—		—		—
Income (Loss) from discontinued operations, net of tax		329		(362)		(33)
Net income (loss) from discontinued operations		329		(362)		(33)
Net income		6,812		705		7,517
Net loss attributable to noncontrolling interest		206		—		206
Net income attributable to AeroVironment	$	7,018	$	705	$	7,723
Net income (loss) per share attributable to AeroVironment—Basic
Continuing operations	$	0.29	$	0.05	$	0.33
Discontinued operations		0.01		(0.02)		—
Net income per share attributable to AeroVironment—Basic	$	0.30	$	0.03	$	0.33
Net income (loss) per share attributable to AeroVironment—Diluted
Continuing operations	$	0.28	$	0.05	$	0.32
Discontinued operations		0.01		(0.02)		—
Net income per share attributable to AeroVironment—Diluted	$	0.29	$	0.03	$	0.32
Weighted-average shares outstanding:
Basic		23,477,914		23,477,914		23,477,914
Diluted		23,832,959		23,832,959		23,832,959


	Six Months Ended		Effect of the		Six Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Revenue:
Product sales	$	67,773	$	(573)	$	67,200
Contract services (inclusive of related party revenue of $9,622 for the six months ended October 28, 2017, respectively)		32,465		497		32,962
		100,238		(76)		100,162
Cost of sales:
Product sales		41,978		(810)		41,168
Contract services		19,472		681		20,153
		61,450		(129)		61,321
Gross margin:
Product sales		25,795		237		26,032
Contract services		12,993		(184)		12,809
		38,788		53		38,841
Selling, general and administrative		24,055		—		24,055
Research and development		12,386		—		12,386
Income from continuing operations		2,347		53		2,400
Other income (expense):
Interest income, net		944		—		944
Other expense, net		(51)		—		(51)
Income from continuing operations before income taxes		3,240		53		3,293
Provision (benefit) for income taxes		144		(7)		137
Equity method investment activity, net of tax		—		—		—
Net income from continuing operations		3,096		60	$	3,156
Discontinued operations:
Gain on sale of business, net of tax expense of $0 for the six months ended October 28, 2017		—		—		—
Loss from discontinued operations, net of tax		(750)		(771)		(1,521)
Net loss from discontinued operations		(750)		(771)		(1,521)
Net income (loss)		2,346		(711)		1,635
Net loss attributable to noncontrolling interest		229		—		229
Net income (loss) attributable to AeroVironment	$	2,575	$	(711)	$	1,864
Net income (loss) per share attributable to AeroVironment—Basic
Continuing operations	$	0.14	$	0.00	$	0.14
Discontinued operations		(0.03)		(0.03)		(0.06)
Net income (loss) per share attributable to AeroVironment—Basic	$	0.11	$	(0.03)	$	0.08
Net income (loss) per share attributable to AeroVironment—Diluted
Continuing operations	$	0.14	$	0.00	$	0.14
Discontinued operations		(0.03)		(0.03)		(0.06)
Net income (loss) per share attributable to AeroVironment—Diluted	$	0.11	$	(0.03)	$	0.08
Weighted-average shares outstanding:
Basic		23,407,500		23,407,500		23,407,500
Diluted		23,715,997		23,715,997		23,715,997

The tables below presents the impact of adoption on the Company’s unaudited statement of comprehensive loss for the three and six months October 28, 2017 (in thousands).


	Three Months Ended		Effect of the		Three Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Net income	$	6,812	$	705	$	7,517
Other comprehensive income:
Change in foreign currency translation adjustments		—		—		—
Unrealized gain on investments, net of deferred tax expense of $17 for the three months ended October 28, 2017, respectively		26		—		26
Total comprehensive income		6,838		705	$	7,543
Net loss attributable to noncontrolling interest		206		—		206
Comprehensive income attributable to AeroVironment	$	7,044	$	705	$	7,749


	Six Months Ended		Effect of the		Six Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Net income	$	2,346	$	(711)	$	1,635
Other comprehensive income:
Change in foreign currency translation adjustments		—		—		—
Unrealized gain on investments, net of deferred tax expense of $19 for the six months ended October 28, 2017, respectively		29		—		29
Total comprehensive income		2,375		(711)	$	1,664
Net loss attributable to noncontrolling interest		229		—		229
Comprehensive income attributable to AeroVironment	$	2,604	$	(711)	$	1,893

The table below presents the impact of adoption on the Company’s unaudited statement of cash flows (in thousands).


	Six Months Ended		Effect of the		Six Months Ended
	October 28, 2017		Adoption of		October 28, 2017
	As Reported		ASC Topic 606		As Adjusted
Operating activities
Net income	$	2,346	$	(711)	$	1,635
Gain on sale of business, net of tax		—		—		—
Loss from discontinued operations, net of tax		750		771		1,521
Net income from continuing operations		3,096		60		3,156
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization		2,784		—		2,784
Loss from equity method investments		—		—		—
Impairment of long-lived assets		255		—		255
Provision for doubtful accounts		935		—		935
Impairment of intangible assets and goodwill		1,021		—		1,021
Gains on foreign currency transactions		(108)		—		(108)
Deferred income taxes		(1,094)		—		(1,094)
Stock-based compensation		2,535		—		2,535
Loss on disposition of property and equipment		15		—		15
Amortization of held-to-maturity investments		897		—		897
Changes in operating assets and liabilities:
Accounts receivable		39,861		—		39,861
Unbilled receivables and retentions		625		(25)		600
Inventories		(13,621)		(151)		(13,772)
Income tax receivable		—		(307)		(307)
Prepaid expenses and other assets		413		—		413
Accounts payable		(2,972)		—		(2,972)
Other liabilities		(4,348)		123		(4,225)
Net cash provided by (used in) operating activities of continuing operations		30,294		(300)		29,994
Investing activities
Acquisition of property and equipment		(5,455)		—		(5,455)
Proceeds from sale of business		—		—		—
Redemptions of held-to-maturity investments		105,758		—		105,758
Purchases of held-to-maturity investments		(88,763)		—		(88,763)
Redemptions of available-for-sale investments		450		—		450
Net cash provided by investing activities from continuing operations		11,990		—		11,990
Financing activities
Principal payments of capital lease obligations		(173)		—		(173)
Tax withholding payment related to net settlement of equity awards		(313)		—		(313)
Exercise of stock options		2,164		—		2,164
Net cash provided by financing activities from continuing operations		1,678		—		1,678
Discontinued operations
Operating activities of discontinued operations		(6,175)		300		(5,875)
Investing activities of discontinued operations		(582)		—		(582)
Financing activities of discontinued operations		—		—		—
Net cash used in discontinued operations		(6,757)		300		(6,457)
Net increase in cash and cash equivalents		37,205		—		37,205
Cash and cash equivalents at beginning of period		79,904		—		79,904
Cash and cash equivalents at end of period	$	117,109	$	—	$	117,109
Supplemental disclosures of cash flow information
Cash paid, net during the period for:
Income taxes	$	1,803		—	$	1,803
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $19	$	29		—	$	29
Reclassification from share-based liability compensation to equity	$	384		—	$	384
Change in foreign currency translation adjustments	$	—		—	$	—
Acquisitions of property and equipment included in accounts payable	$	888		—	$	888

Organization and Significant Accounting Policies Other (Details)	Apr. 30, 2017
Altoy
Research and Development
Ownership percentage	85.00%

Organization and Significant Accounting Policies Other - Recently Adopted Accounting Standards (Details) - USD ($)	6 Months Ended
	Oct. 27, 2018	May 01, 2018	Apr. 30, 2018
Revenue Recognition
Retained earnings	$ 272,300,000		$ 238,913,000
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false]	true
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]	true
Revenue, Practical Expedient, Initial Application and Transition, Completed Contract, Same Reporting Period [true false]	true
ASU 2014-09 \| Effect of the Adoption of ASC Topic 606
Revenue Recognition
Retained earnings		$ (1,084,000)	$ (1,084,000)
Retained earnings, continuing operations		$ 1,063,000

Organization and Significant Accounting Policies Other - Performance Obligations (Details)	Oct. 27, 2018 USD ($)
Organization and Significant Accounting Policies
Remaining performance obligations	$ 163,852,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-30
Organization and Significant Accounting Policies
Remaining performance obligations (as a percentage)	77.00%
Performance Obligations
Year of performance obligations	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-30
Organization and Significant Accounting Policies
Remaining performance obligations (as a percentage)	17.00%
Performance Obligations
Year of performance obligations	2 years

Organization and Significant Accounting Policies Other - Revenue by category (Details)	3 Months Ended		6 Months Ended
	Oct. 27, 2018 USD ($) contract	Oct. 28, 2017 USD ($)	Oct. 27, 2018 USD ($) contract	Oct. 28, 2017 USD ($)
Disaggregation of revenue
Total revenue	$ 72,979,000	$ 65,801,000	$ 151,022,000	$ 100,162,000
Number of active contracts \| contract	230		230
Contract Liability
Disaggregation of revenue
Revenue	$ 6,000	0	$ 1,554,000	764,000
Geographic Distribution, Domestic [Member]
Disaggregation of revenue
Revenue	46,726,000	39,170,000	82,078,000	60,740,000
Geographic Distribution International
Disaggregation of revenue
Revenue	26,253,000	26,631,000	68,944,000	39,422,000
U.S. Government
Disaggregation of revenue
Revenue	46,941,000	40,578,000	82,849,000	63,471,000
Non-U.S. Government
Disaggregation of revenue
Revenue	26,038,000	25,223,000	68,173,000	36,691,000
FFP
Disaggregation of revenue
Revenue	50,054,000	56,761,000	108,057,000	82,615,000
CPFF
Disaggregation of revenue
Revenue	22,870,000	8,948,000	42,853,000	17,321,000
T&M
Disaggregation of revenue
Revenue	55,000	92,000	112,000	226,000
Small UAS
Disaggregation of revenue
Revenue	42,199,000	47,021,000	83,415,000	67,082,000
TMS
Disaggregation of revenue
Revenue	15,019,000	9,366,000	37,785,000	18,931,000
HAPS
Disaggregation of revenue
Revenue	12,832,000	7,071,000	24,395,000	9,622,000
Other
Disaggregation of revenue
Revenue	$ 2,929,000	$ 2,343,000	$ 5,427,000	$ 4,527,000

Organization and Significant Accounting Policies Other - Government Contracts (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017	Apr. 30, 2018
Government Contracts
Reserves for incurred cost claim audits	$ 179,000		$ 179,000		$ 77,000
Numerator for basic earnings per share:
Continuing operations attributable to AeroVironment	7,047,000	$ 7,756,000	27,384,000	$ 3,385,000
Net (loss) income from discontinued operations	(990,000)	(33,000)	6,003,000	(1,521,000)
Net income attributable to AeroVironment	$ 6,057,000	$ 7,723,000	$ 33,387,000	$ 1,864,000
Denominator for basic (loss) earnings per share:
Weighted-average common shares outstanding, excluding unvested restricted stock (in shares)	23,667,400	23,477,914	23,621,720	23,407,500
Dilutive effect of employee stock options and unvested restricted stock (in shares)	431,433	355,045	437,674	308,497
Denominator for diluted (loss) earnings per share (in shares)	24,098,833	23,832,959	24,059,394	23,715,997
Number of shares reserved for issuance that are anti-dilutive	598		7,130	14,820
Potentially dilutive shares	0

Discontinued Operations (Details)		3 Months Ended		6 Months Ended
Discontinued Operations (Details)	Jun. 29, 2018 USD ($) contract	Oct. 27, 2018 USD ($)	Oct. 28, 2017 USD ($)	Oct. 27, 2018 USD ($)	Oct. 28, 2017 USD ($)
Statement of operations
Net loss from discontinued operations		$ (599,000)	$ (33,000)	$ (2,449,000)	$ (1,521,000)
(Loss) gain on sale of business, net of tax (benefit) expense of $(114) and $2,463 for the three and six months ended October 27, 2018, respectively		(391,000)		8,452,000
Tax expense		(114,000)	0	2,463,000	0
Net (loss) income from discontinued operations		(990,000)	(33,000)	6,003,000	(1,521,000)
EES Business \| Disposed of by sale
Discontinued operations
Cash consideration received	$ 31,994,000
Gain on sale of business	11,420,000	(504,000)
Working capital dispute		1,085,000
Amounts recorded in the consolidated financial statements		0
EES Business \| Disposed of by sale \| Other income
Statement of operations
Net Sales		1,221,000		1,620,000
EES Business \| Discontinued Operations
Statement of operations
Net Sales			9,965,000	4,256,000	17,575,000
Cost of sales		748,000	8,293,000	5,026,000	14,803,000
Gross margin		(748,000)	1,672,000	(770,000)	2,772,000
Selling, general and administrative		50,000	1,696,000	1,503,000	3,740,000
Research and development		(25,000)	429,000	1,040,000	1,348,000
Other income, net				1,000
Loss from discontinued operations before income taxes		(773,000)	(453,000)	(3,312,000)	(2,316,000)
Benefit for income taxes		(174,000)	(420,000)	(863,000)	(795,000)
Net loss from discontinued operations		(599,000)	(33,000)	(2,449,000)	(1,521,000)
(Loss) gain on sale of business, net of tax (benefit) expense of $(114) and $2,463 for the three and six months ended October 27, 2018, respectively		(391,000)		8,452,000
Tax expense		(114,000)		2,463,000
Net (loss) income from discontinued operations		$ (990,000)	$ (33,000)	$ 6,003,000	$ (1,521,000)
Holdback \| Disposed of by sale
Discontinued operations
Cash consideration received	$ 6,500,000
Number of remaining contracts \| contract	2

Discontinued Operations - Assets and liabilities (Details) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 30, 2018
Balance Sheet
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,054	$ 1,080
Total current assets classified as discontinued operations		25,668
Total current liabilities		9,294
EES Business \| Discontinued Operations
Balance Sheet
Accounts receivable, net of allowance for doubtful accounts of $139 at April 30, 2018		6,889
Accounts receivable, allowance for doubtful accounts (in dollars)		139
Inventories, net		15,494
Prepaid expenses and other current assets		185
Property and equipment, current net		3,100
Total current assets classified as discontinued operations		25,668
Total assets classified as discontinued operations		25,668
Accounts payable		5,121
Wages and related accruals		1,946
Customer advances		1,028
Other current liabilities		1,199
Total current liabilities		9,294
Total liabilities classified as discontinued operations		$ 9,294

Investments (Details) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 30, 2018
Short-term investments:
Total held-to-maturity and short-term investments	$ 138,536	$ 113,649
Long-term investments:
Total long-term investments	30,459	40,656
Held to maturity securities
Long-term investments:
Total long-term investments	30,459	38,514
Held to maturity securities \| Municipal securities
Short-term investments:
Total held-to-maturity and short-term investments	14,326	35,344
Long-term investments:
Total long-term investments	993	2,046
Held to maturity securities \| U.S. government securities
Short-term investments:
Total held-to-maturity and short-term investments	36,948	31,620
Long-term investments:
Total long-term investments	26,746	27,356
Held to maturity securities \| Corporate bonds
Short-term investments:
Total held-to-maturity and short-term investments	82,262	46,685
Long-term investments:
Total long-term investments	2,720	9,112
Held to maturity securities \| Certificates of deposit
Short-term investments:
Total held-to-maturity and short-term investments	$ 5,000
Available-for-sale securities
Long-term investments:
Total long-term investments		2,142
Available-for-sale securities \| Auction rate securities
Long-term investments:
Total long-term investments		$ 2,142

Investments - Held-To-Maturity Securities (Details) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 30, 2018
Held To Maturity Securities
Amortized Cost	$ 168,995	$ 152,163
Gross Unrealized Gains	5	11
Gross Unrealized Losses	(359)	(474)
Fair Value	168,641	151,700
Municipal securities
Held To Maturity Securities
Amortized Cost	15,319	37,390
Gross Unrealized Gains		9
Gross Unrealized Losses	(12)	(36)
Fair Value	15,307	37,363
U.S. government securities
Held To Maturity Securities
Amortized Cost	63,694	58,976
Gross Unrealized Gains	3
Gross Unrealized Losses	(271)	(367)
Fair Value	63,426	58,609
Corporate bonds
Held To Maturity Securities
Amortized Cost	84,982	55,797
Gross Unrealized Gains	2	2
Gross Unrealized Losses	(76)	(71)
Fair Value	84,908	$ 55,728
Certificates of deposit
Held To Maturity Securities
Amortized Cost	5,000
Fair Value	$ 5,000

Investments - Amortized Cost and Fair Value of the Held-to-Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 30, 2018
Amortized cost of held-to-maturity securities by contractual maturity
Due within one year	$ 138,536
Due after one year through five years	30,459
Total	168,995	$ 152,163
Fair value of held-to-maturity securities by contractual maturity
Due within one year	138,270
Due after one year through five years	30,371
Fair Value	$ 168,641	$ 151,700

Investments - Auction rate securities (Details) $ in Thousands	12 Months Ended
	Apr. 30, 2018 USD ($) item
Available-For-Sale Securities
Amortized Cost	$ 2,250
Gross Unrealized Losses	(108)
Total	$ 2,142
Auction rate securities
Investments
Number of available-for-sale securities \| item	2
Available For Sale Securities
Period for which the issuer of securities is not required to redeem the securities	365 days
Available-For-Sale Securities
Amortized Cost	$ 2,250
Gross Unrealized Losses	(108)
Total	$ 2,142
Auction rate securities \| Minimum
Available For Sale Securities
Maturity period of available-for-sale securities	1 year
Pre-determined interval to reset interest rates to current rates	30 days
Auction rate securities \| Maximum
Available For Sale Securities
Maturity period of available-for-sale securities	16 years
Pre-determined interval to reset interest rates to current rates	35 days

Fair Value Measurements Reconciliation (Details) - Significant unobservable inputs (Level 3) $ in Thousands	6 Months Ended
	Oct. 27, 2018 USD ($)
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Balance at the beginning of the period	$ 2,142
Total gains (realized or unrealized) included in other comprehensive income	108
Purchases, issuances and settlements, net	$ (2,250)

Inventories, net (Details) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 30, 2018
Inventories, net
Raw materials	$ 14,271	$ 12,020
Work in process	12,311	14,780
Finished goods	24,241	14,578
Inventories, gross	50,823	41,378
Reserve for inventory excess and obsolescence	(4,727)	(3,953)
Inventories, net	$ 46,096	$ 37,425

Equity Method Investments (Details)	3 Months Ended	6 Months Ended
Equity Method Investments (Details)	Oct. 27, 2018 USD ($)	Oct. 27, 2018 USD ($)	Jan. 31, 2019 JPY (¥)	Jan. 31, 2019 USD ($)	Apr. 17, 2018 JPY (¥)	Apr. 17, 2018 USD ($)	Dec. 27, 2017 JPY (¥)	Dec. 27, 2017 USD ($)
Equity Method Investments
Equity method investment activity, net of tax	$ (752,000)	$ (1,354,000)
HAPSMobile
Equity Method Investments
Payments for purchase of interest					¥ 1,407,000	$ 150,000,000	¥ 1,860,000	$ 210,000,000
HAPSMobile \| Expected
Equity Method Investments
Payments for purchase of interest			¥ 209,500,000	$ 1,900,000
HAPSMobile \| Equity method investment activity, net of tax
Equity Method Investments
Equity method investment activity, net of tax	(752,000)	(1,354,000)
HAPSMobile \| Other assets, long term
Equity Method Investments
Carrying value of investment	$ 625,000	$ 625,000
HAPSMobile \| SoftBank
Equity Method Investments
Ownership percentage							95.00%	95.00%
AeroVironment \| HAPSMobile
Equity Method Investments
Ownership percentage							5.00%	5.00%
Option to increase its ownership percentage	19.00%	19.00%

Warranty Reserves (Details) - Warranty reserve - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Warranty Reserves
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

Warranty Reserves Estimated Cost (Details)	6 Months Ended
Warranty Reserves Estimated Cost (Details)	Oct. 27, 2018 USD ($)
Warranty Reserves
Product Warranty Expense	$ 26,000
UAS \| Warranty reserve.
Warranty Reserves
Revised warranty reserve charges	519,000
Standard Product Warranty Accrual, Preexisting, Increase (Decrease)	$ 493,000

Intangibles (Details) - USD ($) $ in Thousands	Oct. 27, 2018	Apr. 30, 2018
Intangibles
Intangibles, gross	$ 1,770	$ 1,582
Less accumulated amortization	(1,104)	(954)
Intangibles, net	666	628
Licenses
Intangibles
Intangibles, gross	1,006	818
Customer relationships
Intangibles
Intangibles, gross	733	733
Trademarks and tradenames
Intangibles
Intangibles, gross	28	28
Other
Intangibles
Intangibles, gross	$ 3	$ 3

Accumulated Other Comprehensive Income (Loss) and Reclassifications Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017	Apr. 30, 2018
Accumulated other comprehensive loss
Balance, net of $76 of taxes, as of April 30, 2018			$ (21)
Balance, net of $0 of taxes, as of October 27, 2018	$ 5		5		$ (21)
Other comprehensive income, tax			0		76
Change in foreign currency translation adjustments			0
Unrealized gain, tax portion	0	$ 17	51	$ 19
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive loss
Balance, net of $76 of taxes, as of April 30, 2018			(21)
Change in foreign currency translation adjustments, net of $0 taxes	(31)		(31)
Unrealized gains, net of $51 of taxes			57
Balance, net of $0 of taxes, as of October 27, 2018	5		5		(21)
Foreign Currency Translation Adjustments
Accumulated other comprehensive loss
Balance, net of $76 of taxes, as of April 30, 2018			36
Change in foreign currency translation adjustments, net of $0 taxes	(31)		(31)
Balance, net of $0 of taxes, as of October 27, 2018	$ 5		5		36
Available-For-Sale Securities.
Accumulated other comprehensive loss
Balance, net of $76 of taxes, as of April 30, 2018			(57)
Unrealized gains, net of $51 of taxes			$ 57
Balance, net of $0 of taxes, as of October 27, 2018					$ (57)

Customer-Funded Research & Development (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Customer-Funded Research & Development
Revenue from customer funded research and development	$ 18,790,000	$ 11,864,000	$ 35,907,000	$ 20,662,000

Long-Term Incentive Awards (Details) - Performance based restricted stock units	6 Months Ended
	Oct. 27, 2018 USD ($)
Fiscal 2019 LTIP
Stock Based Compensation
Stock based compensation expense	$ 255,000
Fiscal 2019 LTIP \| 100% Vested
Stock Based Compensation
Vesting (as a percentage)	100.00%
Fiscal 2019 LTIP \| 50% Vested
Stock Based Compensation
Vesting (as a percentage)	50.00%
Fiscal 2019 LTIP \| 200% Vested
Stock Based Compensation
Vesting (as a percentage)	200.00%
Fiscal 2019 LTIP \| Maximum
Stock Based Compensation
Stock based compensation expense	$ 3,733,000
Fiscal 2018 LTIP
Stock Based Compensation
Stock based compensation expense	$ 603,000
Exercisable period from grant date	3 years
Fiscal 2018 LTIP \| 100% Vested
Stock Based Compensation
Vesting (as a percentage)	100.00%
Fiscal 2018 LTIP \| 50% Vested
Stock Based Compensation
Vesting (as a percentage)	50.00%
Fiscal 2018 LTIP \| 200% Vested
Stock Based Compensation
Vesting (as a percentage)	200.00%
Fiscal 2018 LTIP \| Maximum
Stock Based Compensation
Stock based compensation expense	$ 2,850,000
Fiscal 2017 LTIP
Stock Based Compensation
Stock based compensation expense	$ 289,000
Exercisable period from grant date	3 years
Fiscal 2017 LTIP \| 100% Vested
Stock Based Compensation
Vesting (as a percentage)	100.00%
Fiscal 2017 LTIP \| 50% Vested
Stock Based Compensation
Vesting (as a percentage)	50.00%
Fiscal 2017 LTIP \| 200% Vested
Stock Based Compensation
Vesting (as a percentage)	200.00%
Fiscal 2017 LTIP \| Maximum
Stock Based Compensation
Stock based compensation expense	$ 2,630,000

Income Taxes (Details) - USD ($)	3 Months Ended		4 Months Ended	6 Months Ended		8 Months Ended	12 Months Ended
Income Taxes (Details) - USD ($)	Oct. 27, 2018	Oct. 28, 2017	Apr. 30, 2018	Oct. 27, 2018	Oct. 28, 2017	Dec. 31, 2017	Apr. 30, 2019	Apr. 30, 2018
Income taxes
U.S. federal statutory income tax rate (as a percent)			21.00%	30.40%		35.00%
Deferred tax expense								$ 3,300,000
Provision for income taxes	$ 1,211,000	$ 3,358,000		$ 3,778,000	$ 137,000
Effective tax benefit rate (as a percent)	13.50%	30.80%		11.60%	4.20%
Excess tax benefits	$ 357,000	$ 376,000		$ 1,507,000	$ 1,401,000
Expected
Income taxes
Decrease in effective tax rate							2.00%

Share Repurchase (Details) - USD ($)	3 Months Ended	6 Months Ended
Share Repurchase (Details) - USD ($)	Oct. 27, 2018	Oct. 27, 2018	Apr. 30, 2018	Sep. 30, 2015
Share Repurchase
Stock Repurchase Program, Authorized Amount				$ 25,000,000
Shares repurchased and retired	0	0
Share authorized for future repurchases	$ 21,200,000	$ 21,200,000	$ 21,200,000

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
Related Party Transactions (Details) - USD ($)	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017	Apr. 30, 2018	Dec. 27, 2017
Long-Term Incentive Awards
Revenue	$ 12,832,000	$ 7,071,000	$ 24,395,000	$ 9,622,000
Unbilled related party receivables	7,764,000		7,764,000		$ 3,145,000
Design and Development Agreement
Long-Term Incentive Awards
Maximum net value	76,589,000		76,589,000
HAPSMobile \| Design and Development Agreement
Long-Term Incentive Awards
Revenue	12,832,000	$ 7,071,000	24,395,000	$ 9,622,000
Unbilled related party receivables	$ 7,764,000		$ 7,764,000		$ 3,145,000
AeroVironment \| HAPSMobile
Long-Term Incentive Awards
Ownership percentage						5.00%

Impact of Adoption of New Accounting Standards - Balance Sheet (Details) - USD ($)	Oct. 27, 2018	May 01, 2018	Apr. 30, 2018	Oct. 28, 2017	Apr. 30, 2017
Current assets:
Cash and cash equivalents	$ 151,255,000		$ 143,517,000	$ 117,109,000	$ 79,904,000
Short-term investments	138,536,000		113,649,000
Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018	34,639,000		56,813,000
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018)	45,654,000		16,872,000
Inventories, net	46,096,000		37,425,000
Prepaid expenses and other current assets	5,732,000		5,103,000
Current assets of discontinued operations			25,668,000
Total current assets	421,912,000		399,047,000
Long-term investments	30,459,000		40,656,000
Property and equipment, net	20,460,000		19,219,000
Deferred income taxes	12,108,000		11,494,000
Other assets	1,628,000		3,002,000
Total assets	486,567,000		473,418,000
Current liabilities:
Accounts payable	14,149,000		21,340,000
Wages and related accruals	11,071,000		16,851,000
Income taxes payable	4,851,000		4,085,000
Customer advances	2,449,000		3,564,000
Other current liabilities	6,971,000		6,954,000
Current liabilities of discontinued operations			9,294,000
Total current liabilities	39,491,000		62,088,000
Deferred rent	1,478,000		1,536,000
Other non-current liabilities	1,306,000		622,000
Deferred tax liability	67,000		67,000
Liability for uncertain tax positions	49,000		49,000
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	2,000		2,000
Additional paid-in capital	171,867,000		170,139,000
Accumulated other comprehensive loss	5,000		(21,000)
Retained earnings	272,300,000		238,913,000
Total AeroVironment stockholders' equity	444,174,000		409,033,000
Noncontrolling interest	2,000		23,000
Total equity	444,176,000		409,056,000
Total liabilities and stockholders' equity	$ 486,567,000		473,418,000
Effect of the Adoption of ASC Topic 606 \| ASU 2014-09
Current assets:
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018)			3,796,000
Inventories, net			(1,215,000)
Current assets of discontinued operations			(2,681,000)
Total current assets			(100,000)
Deferred income taxes			326,000
Other assets			281,000
Total assets			507,000
Current liabilities:
Customer advances			1,419,000
Other current liabilities			62,000
Current liabilities of discontinued operations			110,000
Total current liabilities			1,591,000
Stockholders' equity:
Retained earnings		$ (1,084,000)	(1,084,000)
Total AeroVironment stockholders' equity			(1,084,000)
Total equity			(1,084,000)
Total liabilities and stockholders' equity			507,000
As Reported
Current assets:
Cash and cash equivalents				$ 117,109,000	$ 79,904,000
As Reported \| ASU 2014-09
Current assets:
Cash and cash equivalents			143,517,000
Short-term investments			113,649,000
Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018			56,813,000
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018)			13,076,000
Inventories, net			38,640,000
Prepaid expenses and other current assets			5,103,000
Current assets of discontinued operations			28,349,000
Total current assets			399,147,000
Long-term investments			40,656,000
Property and equipment, net			19,219,000
Deferred income taxes			11,168,000
Other assets			2,721,000
Total assets			472,911,000
Current liabilities:
Accounts payable			21,340,000
Wages and related accruals			16,851,000
Income taxes payable			4,085,000
Customer advances			2,145,000
Other current liabilities			6,892,000
Current liabilities of discontinued operations			9,184,000
Total current liabilities			60,497,000
Deferred rent			1,536,000
Other non-current liabilities			622,000
Deferred tax liability			67,000
Liability for uncertain tax positions			49,000
Stockholders' equity:
Common stock, $0.0001 par value: Authorized shares—100,000,000 Issued and outstanding shares—23,908,736 at April 30, 2018			2,000
Additional paid-in capital			170,139,000
Accumulated other comprehensive loss			(21,000)
Retained earnings			239,997,000
Total AeroVironment stockholders' equity			410,117,000
Noncontrolling interest			23,000
Total equity			410,140,000
Total liabilities and stockholders' equity			$ 472,911,000

Impact of Adoption of New Accounting Standards - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 27, 2018	Apr. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,054	$ 1,080
Due from Related Parties	$ 7,764	$ 3,145
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, Authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, Authorized shares	100,000,000	100,000,000
Common stock, Issued shares	23,928,373	23,908,736
Common stock, outstanding shares	23,928,373	23,908,736

Impact of Adoption of New Accounting Standards - Income Statement (Details) - USD ($)	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Revenue:
Total revenue	$ 72,979,000	$ 65,801,000	$ 151,022,000	$ 100,162,000
Cost of sales:
Cost of sales	44,580,000	35,658,000	90,034,000	61,321,000
Gross margin:
Gross margin	28,399,000	30,143,000	60,988,000	38,841,000
Selling, general and administrative	13,646,000	12,768,000	25,602,000	24,055,000
Research and development	8,109,000	6,844,000	14,544,000	12,386,000
Income from continuing operations	6,644,000	10,531,000	20,842,000	2,400,000
Other income:
Interest income, net	1,068,000	432,000	1,974,000	944,000
Other income (expense), net	1,291,000	(55,000)	9,679,000	(51,000)
Income from continuing operations before income taxes	9,003,000	10,908,000	32,495,000	3,293,000
Provision for income taxes	1,211,000	3,358,000	3,778,000	137,000
Equity method investment activity, net of tax	(752,000)		(1,354,000)
Net income from continuing operations	7,040,000	7,550,000	27,363,000	3,156,000
Discontinued operations:
Gain on sale of business, net of tax	(391,000)		8,452,000
Loss from discontinued operations, net of tax	(599,000)	(33,000)	(2,449,000)	(1,521,000)
Net (loss) income from discontinued operations	(990,000)	(33,000)	6,003,000	(1,521,000)
Net income	6,050,000	7,517,000	33,366,000	1,635,000
Net loss attributable to noncontrolling interest	7,000	206,000	21,000	229,000
Net income attributable to AeroVironment	$ 6,057,000	$ 7,723,000	$ 33,387,000	$ 1,864,000
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)	$ 0.30	$ 0.33	$ 1.16	$ 0.14
Basic, discontinuing (in dollars per share)	(0.04)		0.25	(0.06)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)	0.26	0.33	1.41	0.08
Diluted, continuing (in dollars per share)	0.29	0.32	1.14	0.14
Diluted, discontinued (in dollars per share)	(0.04)		0.25	(0.06)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)	$ 0.25	$ 0.32	$ 1.39	$ 0.08
Weighted average shares outstanding:
Basic (in shares)	23,667,400	23,477,914	23,621,720	23,407,500
Diluted (in shares)	24,098,833	23,832,959	24,059,394	23,715,997
Product sales
Revenue:
Revenue	$ 47,056,000	$ 48,420,000	$ 102,369,000	$ 67,200,000
Cost of sales:
Cost of sales	26,567,000	25,196,000	56,378,000	41,168,000
Gross margin:
Gross margin	20,489,000	23,224,000	45,991,000	26,032,000
Contract services
Revenue:
Revenue	25,923,000	17,381,000	48,653,000	32,962,000
Cost of sales:
Cost of sales	18,013,000	10,462,000	33,656,000	20,153,000
Gross margin:
Gross margin	$ 7,910,000	6,919,000	$ 14,997,000	12,809,000
Effect of the Adoption of ASC Topic 606
Revenue:
Total revenue		1,813,000		(76,000)
Cost of sales:
Cost of sales		363,000		(129,000)
Gross margin:
Gross margin		1,450,000		53,000
Income from continuing operations		1,450,000		53,000
Other income:
Income from continuing operations before income taxes		1,450,000		53,000
Provision for income taxes		383,000		(7,000)
Net income from continuing operations		1,067,000		60,000
Discontinued operations:
Loss from discontinued operations, net of tax		(362,000)		(771,000)
Net (loss) income from discontinued operations		(362,000)		(771,000)
Net income		705,000		(711,000)
Net income attributable to AeroVironment		$ 705,000		$ (711,000)
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)		$ 0.05		$ 0.00
Basic, discontinuing (in dollars per share)		(0.02)		(0.03)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)		0.03		(0.03)
Diluted, continuing (in dollars per share)		0.05		0.00
Diluted, discontinued (in dollars per share)		(0.02)		(0.03)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)		$ 0.03		$ (0.03)
Weighted average shares outstanding:
Basic (in shares)		23,477,914		23,407,500
Diluted (in shares)		23,832,959		23,715,997
Effect of the Adoption of ASC Topic 606 \| Product sales
Revenue:
Revenue		$ 4,745,000		$ (573,000)
Cost of sales:
Cost of sales		2,002,000		(810,000)
Gross margin:
Gross margin		2,743,000		237,000
Effect of the Adoption of ASC Topic 606 \| Contract services
Revenue:
Revenue		(2,932,000)		497,000
Cost of sales:
Cost of sales		(1,639,000)		681,000
Gross margin:
Gross margin		(1,293,000)		(184,000)
As Reported
Revenue:
Total revenue		63,988,000		100,238,000
Cost of sales:
Cost of sales		35,295,000		61,450,000
Gross margin:
Gross margin		28,693,000		38,788,000
Selling, general and administrative		12,768,000		24,055,000
Research and development		6,844,000		12,386,000
Income from continuing operations		9,081,000		2,347,000
Other income:
Interest income, net		432,000		944,000
Other income (expense), net		(55,000)		(51,000)
Income from continuing operations before income taxes		9,458,000		3,240,000
Provision for income taxes		2,975,000		144,000
Net income from continuing operations		6,483,000		3,096,000
Discontinued operations:
Loss from discontinued operations, net of tax		329,000		(750,000)
Net (loss) income from discontinued operations		329,000		(750,000)
Net income		6,812,000		2,346,000
Net loss attributable to noncontrolling interest		206,000		229,000
Net income attributable to AeroVironment		$ 7,018,000		$ 2,575,000
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)		$ 0.29		$ 0.14
Basic, discontinuing (in dollars per share)		0.01		(0.03)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)		0.30		0.11
Diluted, continuing (in dollars per share)		0.28		0.14
Diluted, discontinued (in dollars per share)		0.01		(0.03)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)		$ 0.29		$ 0.11
Weighted average shares outstanding:
Basic (in shares)		23,477,914		23,407,500
Diluted (in shares)		23,832,959		23,715,997
As Reported \| Product sales
Revenue:
Revenue		$ 43,675,000		$ 67,773,000
Cost of sales:
Cost of sales		23,194,000		41,978,000
Gross margin:
Gross margin		20,481,000		25,795,000
As Reported \| Contract services
Revenue:
Revenue		20,313,000		32,465,000
Cost of sales:
Cost of sales		12,101,000		19,472,000
Gross margin:
Gross margin		$ 8,212,000		$ 12,993,000

Impact of Adoption of New Accounting Standards - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Abstract]
Revenue from Related Parties	$ 12,832	$ 7,071	$ 24,395	$ 9,622
Tax expense	$ (114)	$ 0	$ 2,463	$ 0

Impact of Adoption of New Accounting Standards - Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net income	$ 6,050	$ 7,517	$ 33,366	$ 1,635
Other comprehensive income:
Change in foreign currency translation adjustments	(11)		(31)
Unrealized gain on investments, net of deferred tax expense of $17 for the three months ended October 28, 2017, respectively		26	57	29
Total comprehensive income	6,039	7,543	33,392	1,664
Net loss attributable to noncontrolling interest	7	206	21	229
Comprehensive income attributable to AeroVironment	$ 6,046	7,749	$ 33,413	1,893
Effect of the Adoption of ASC Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net income		705		(711)
Other comprehensive income:
Total comprehensive income		705		(711)
Comprehensive income attributable to AeroVironment		705		(711)
As Reported
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net income		6,812		2,346
Other comprehensive income:
Unrealized gain on investments, net of deferred tax expense of $17 for the three months ended October 28, 2017, respectively		26		29
Total comprehensive income		6,838		2,375
Net loss attributable to noncontrolling interest		206		229
Comprehensive income attributable to AeroVironment		$ 7,044		$ 2,604

Impact of Adoption of New Accounting Standards - Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Abstract]
Unrealized gain on investments, net of deferred tax expense (benefit)	$ 0	$ 17	$ 51	$ 19

Impact of Adoption of New Accounting Standards - Statement Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017	Oct. 27, 2018	Oct. 28, 2017
Operating activities
Net income	$ 6,050	$ 7,517	$ 33,366	$ 1,635
Gain on sale of business, net of tax expense	391		(8,452)
Loss from discontinued operations, net of tax	599	33	2,449	1,521
Net income from continuing operations	7,040	7,550	27,363	3,156
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization			3,584	2,784
Loss from equity method investments	752		1,354
Impairment of long-lived assets				255
Provision for doubtful accounts			(27)	935
Impairment of intangible assets and goodwill				1,021
Gains on foreign currency transactions			(13)	(108)
Deferred income taxes			(614)	(1,094)
Stock-based compensation			2,517	2,535
Loss on disposition of property and equipment				15
Amortization of held-to-maturity investments			(459)	897
Changes in operating assets and liabilities:
Accounts receivable			22,261	39,861
Unbilled receivables and retentions			(28,782)	600
Inventories			(8,671)	(13,772)
Income tax receivable				(307)
Prepaid expenses and other assets			(831)	413
Accounts payable			(8,841)	(2,972)
Other liabilities			(6,184)	(4,225)
Net cash provided by operating activities of continuing operations			2,657	29,994
Investing activities
Acquisition of property and equipment			(4,135)	(5,455)
Proceeds from sale of business			31,994
Redemptions of held-to-maturity investments			153,029	105,758
Purchases of held-to-maturity investments			(169,402)	(88,763)
Redemptions of available-for-sale investments			2,250	450
Net cash used in investing activities from continuing operations			13,736	11,990
Financing activities
Principal payments of capital lease obligations			(111)	(173)
Tax withholding payment related to net settlement of equity awards			(975)	(313)
Exercise of stock options			71	2,164
Net cash (used in) provided by financing activities from continuing operations			(1,015)	1,678
Discontinued operations
Operating activities of discontinued operations			(7,188)	(5,875)
Investing activities of discontinued operations			(452)	(582)
Net cash used in discontinued operations			(7,640)	(6,457)
Net increase in cash and cash equivalents			7,738	37,205
Cash and cash equivalents at beginning of period			143,517	79,904
Cash and cash equivalents at end of period	$ 151,255	117,109	151,255	117,109
Cash (refunds) paid, net during the period for:
Income tax refund			5,270	1,803
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $4			57	29
Reclassification from share-based liability compensation to equity				384
Change in foreign currency translation adjustments			(31)
Acquisitions of property and equipment included in accounts payable			753	888
Effect of the Adoption of ASC Topic 606
Operating activities
Net income		705		(711)
Loss from discontinued operations, net of tax		362		771
Net income from continuing operations		1,067		60
Changes in operating assets and liabilities:
Unbilled receivables and retentions				(25)
Inventories				(151)
Income tax receivable				(307)
Other liabilities				123
Net cash provided by operating activities of continuing operations				(300)
Discontinued operations
Operating activities of discontinued operations				300
Net cash used in discontinued operations				300
As Reported
Operating activities
Net income		6,812		2,346
Loss from discontinued operations, net of tax		(329)		750
Net income from continuing operations		6,483		3,096
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization				2,784
Impairment of long-lived assets				255
Provision for doubtful accounts				935
Impairment of intangible assets and goodwill				1,021
Gains on foreign currency transactions				(108)
Deferred income taxes				(1,094)
Stock-based compensation				2,535
Loss on disposition of property and equipment				15
Amortization of held-to-maturity investments				897
Changes in operating assets and liabilities:
Accounts receivable				39,861
Unbilled receivables and retentions				625
Inventories				(13,621)
Prepaid expenses and other assets				413
Accounts payable				(2,972)
Other liabilities				(4,348)
Net cash provided by operating activities of continuing operations				30,294
Investing activities
Acquisition of property and equipment				(5,455)
Redemptions of held-to-maturity investments				105,758
Purchases of held-to-maturity investments				(88,763)
Redemptions of available-for-sale investments				450
Net cash used in investing activities from continuing operations				11,990
Financing activities
Principal payments of capital lease obligations				(173)
Tax withholding payment related to net settlement of equity awards				(313)
Exercise of stock options				2,164
Net cash (used in) provided by financing activities from continuing operations				1,678
Discontinued operations
Operating activities of discontinued operations				(6,175)
Investing activities of discontinued operations				(582)
Net cash used in discontinued operations				(6,757)
Net increase in cash and cash equivalents				37,205
Cash and cash equivalents at beginning of period				79,904
Cash and cash equivalents at end of period		$ 117,109		117,109
Cash (refunds) paid, net during the period for:
Income tax refund				1,803
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $4				29
Reclassification from share-based liability compensation to equity				384
Acquisitions of property and equipment included in accounts payable				$ 888
As Reported \| ASU 2014-09
Discontinued operations
Cash and cash equivalents at beginning of period			$ 143,517

Impact of Adoption of New Accounting Standards - Statement Cash Flow (Details) - USD ($) $ in Thousands	6 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Abstract]
Unrealized change in fair value on long-term investments recorded in other comprehensive income loss, net of tax expenses (benefit)	$ (51)	$ (19)