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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jan. 26, 2019	Feb. 26, 2019
Document and Entity Information
Entity Registrant Name	AeroVironment Inc
Entity Central Index Key	0001368622
Document Type	10-Q
Document Period End Date	Jan. 26, 2019
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		23,932,381
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Emerging Growth Company	false
Entity Small Business	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 30, 2018	Jan. 27, 2018	Apr. 30, 2017
Current assets:
Cash and cash equivalents	$ 149,369	$ 143,517	$ 112,304	$ 79,904
Short-term investments	144,815	113,649
Accounts receivable, net of allowance for doubtful accounts of $1,046 at January 26, 2019 and $1,080 at April 30, 2018	34,064	56,813
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $13,638 at January 26, 2019 and $3,145 at April 30, 2018)	51,632	16,872
Inventories, net	50,379	37,425
Prepaid expenses and other current assets	6,616	5,103
Current assets of discontinued operations		25,668
Total current assets	436,875	399,047
Long-term investments	27,954	40,656
Property and equipment, net	20,542	19,219
Deferred income taxes	12,708	11,494
Other assets	884	3,002
Total assets	498,963	473,418
Current liabilities:
Accounts payable	11,629	21,340
Wages and related accruals	14,363	16,851
Income taxes payable	4,857	4,085
Customer advances	2,875	3,564
Other current liabilities	8,062	6,954
Current liabilities of discontinued operations		9,294
Total current liabilities	41,786	62,088
Deferred rent	1,352	1,536
Other non-current liabilities	160	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 January 26, 2019 and April 30, 2018
Issued and outstanding shares—23,932,460 shares at January 26, 2019 and 23,908,736 at April 30, 2018	2	2
Additional paid-in capital	174,891	170,139
Accumulated other comprehensive income (loss)	4	(21)
Retained earnings	280,669	238,913
Total AeroVironment stockholders' equity	455,566	409,033
Noncontrolling interest	(17)	23
Total equity	455,549	409,056
Total liabilities and stockholders' equity	$ 498,963	$ 473,418

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 30, 2018
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,046	$ 1,080
Due from Related Parties	$ 13,638	$ 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	23,932,460	23,908,736
Common stock, outstanding shares	23,932,460	23,908,736

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Revenue:
Total revenue	$ 75,322,000	$ 54,633,000	$ 226,344,000	$ 154,795,000
Cost of sales:
Cost of sales	44,930,000	36,383,000	134,964,000	97,704,000
Gross margin:
Total gross margin	30,392,000	18,250,000	91,380,000	57,091,000
Selling, general and administrative	14,464,000	11,484,000	40,066,000	35,539,000
Research and development	8,087,000	6,607,000	22,631,000	18,993,000
Income from continuing operations	7,841,000	159,000	28,683,000	2,559,000
Other income:
Interest income, net	1,272,000	545,000	3,246,000	1,489,000
Other income (expense), net	962,000	(108,000)	10,641,000	(159,000)
Income from continuing operations before income taxes	10,075,000	596,000	42,570,000	3,889,000
Provision for income taxes	946,000	834,000	4,724,000	971,000
Equity method investment activity, net of tax	(717,000)	(418,000)	(2,071,000)	(418,000)
Net income from continuing operations	8,412,000	(656,000)	35,775,000	2,500,000
Discontinued operations:
Gain on sale of business, net of tax (benefit) expense of $0 and $2,463 for the three and nine months ended January 26, 2019, respectively			8,452,000
Loss from discontinued operations, net of tax	(62,000)	(129,000)	(2,511,000)	(1,650,000)
Net (loss) income from discontinued operations	(62,000)	(129,000)	5,941,000	(1,650,000)
Net income (loss)	8,350,000	(785,000)	41,716,000	850,000
Net loss attributable to noncontrolling interest	19,000	9,000	40,000	238,000
Net income (loss) attributable to AeroVironment	$ 8,369,000	$ (776,000)	$ 41,756,000	$ 1,088,000
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)	$ 0.35	$ (0.02)	$ 1.52	$ 0.12
Basic, discontinuing (in dollars per share)		(0.01)	0.25	(0.07)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)	0.35	(0.03)	1.77	0.05
Diluted, continuing (in dollars per share)	0.35	(0.02)	1.49	0.12
Diluted, discontinued (in dollars per share)		(0.01)	0.25	(0.07)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)	$ 0.35	$ (0.03)	$ 1.74	$ 0.05
Weighted average shares outstanding:
Basic (in shares)	23,687,672	23,515,622	23,643,866	23,443,673
Diluted (in shares)	24,081,819	23,515,622	24,064,008	23,774,946
Product sales
Revenue:
Revenue	$ 50,024,000	$ 39,447,000	$ 152,393,000	$ 106,647,000
Cost of sales:
Cost of sales	26,780,000	24,870,000	83,158,000	66,038,000
Gross margin:
Total gross margin	23,244,000	14,577,000	69,235,000	40,609,000
Contract services
Revenue:
Revenue	25,298,000	15,186,000	73,951,000	48,148,000
Cost of sales:
Cost of sales	18,150,000	11,513,000	51,806,000	31,666,000
Gross margin:
Total gross margin	$ 7,148,000	$ 3,673,000	$ 22,145,000	$ 16,482,000

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
CONSOLIDATED STATEMENTS OF INCOME
Revenue from Related Parties	$ 13,586	$ 5,420	$ 37,981	$ 15,042
Tax expense	$ 2,463	$ 0	$ 9	$ 0

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$ 8,350	$ (785)	$ 41,716	$ 850
Other comprehensive income:
Change in foreign currency translation adjustments	(1)	62	(32)	62
Unrealized gain on investments, net of deferred tax expense of $0 and $10 for the three months ended January 26, 2019 and January 27, 2018, respectively; and net of deferred tax expense of $51 and $29 for the nine months ended January 26, 2019 and January 27, 2018, respectively		13	57	42
Total comprehensive income (loss)	8,349	(710)	41,741	954
Net loss attributable to noncontrolling interest	19	9	40	238
Comprehensive income (loss) attributable to AeroVironment	$ 8,368	$ (701)	$ 41,781	$ 1,192

- Definition

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

+ References

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized gain on investments, net of deferred tax expense (benefit)	$ 0	$ 10	$ 51	$ 29

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018
Operating activities
Net income	$ 41,716	$ 850
Gain on sale of business, net of tax expense	(8,452)
Loss from discontinued operations, net of tax	2,511	1,650
Net income from continuing operations	35,775	2,500
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization	5,530	4,277
Loss from equity method investments	2,071	418
Impairment of long-lived assets		255
Provision for doubtful accounts	(33)	940
Impairment of intangible assets and goodwill		1,021
Gains on foreign currency transactions	(10)	(36)
Deferred income taxes	(1,214)	174
Stock-based compensation	5,599	3,702
Loss on disposition of property and equipment	51	15
Amortization of held-to-maturity investments	(941)	1,250
Changes in operating assets and liabilities:
Accounts receivable	22,817	48,871
Unbilled receivables and retentions	(34,760)	(12,068)
Inventories	(12,954)	(15,308)
Income tax receivable		(720)
Prepaid expenses and other assets	(1,791)	417
Accounts payable	(10,645)	(4,451)
Other liabilities	(2,598)	575
Net cash provided by operating activities of continuing operations	6,897	31,832
Investing activities
Acquisition of property and equipment	(6,806)	(7,713)
Equity method investments		(1,860)
Proceeds from sale of business	31,994
Redemptions of held-to-maturity investments	191,455	163,813
Purchases of held-to-maturity investments	(211,120)	(151,740)
Redemptions of available-for-sale investments	2,250	450
Net cash used in investing activities from continuing operations	7,773	2,950
Financing activities
Principal payments of capital lease obligations	(154)	(231)
Tax withholding payment related to net settlement of equity awards	(1,033)	(389)
Exercise of stock options	71	2,691
Net cash (used in) provided by financing activities from continuing operations	(1,116)	2,071
Discontinued operations
Operating activities of discontinued operations	(7,250)	(3,716)
Investing activities of discontinued operations	(452)	(737)
Net cash used in discontinued operations	(7,702)	(4,453)
Net increase in cash and cash equivalents	5,852	32,400
Cash and cash equivalents at beginning of period	143,517	79,904
Cash and cash equivalents at end of period	149,369	112,304
Cash paid, net during the period for:
Income tax refund	6,777	1,812
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $51 and $19, respectively	57	42
Reclassification from share-based liability compensation to equity		384
Change in foreign currency translation adjustments	(32)	62
Acquisitions of property and equipment included in accounts payable	$ 58	$ 332

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018
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)	$ (29)

Organization and Significant Accounting Policies

9 Months Ended

Jan. 26, 2019

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 nine months ended January 26, 2019 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 January 26, 2019, the Company had approximately $132,515,000 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 56% of the remaining performance obligations as revenue in fiscal 2019, an additional 33% 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 nine month period ended January 26, 2019 or the three and nine month periods ended January 27, 2018. No adjustment on any one contract was material to the Company’s unaudited consolidated financial statements for the nine month period ended January 26, 2019 or the three and nine month periods ended and January 27, 2018. The aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was approximately $1,705,000 for the three months ended January 26, 2019. For the three months ended January 26, 2019, the Company revised its estimates of the total expected costs to complete a TMS contract due to ongoing test and evaluation resulting from some systems not passing the customer’s final lot acceptance tests which the Company anticipates to be resolved in a future period. The aggregate impact of these adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was approximately $1,519,000.

Revenue by Category

Revenue from products and services during the nine months ended January 26, 2019 consisted of revenue derived from 250 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				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by major product line/program	2019		2018		2019		2018
Small UAS	$	47,704	$	31,705	$	131,119	$	98,787
TMS		11,270		16,426		49,055		35,357
HAPS		13,586		5,420		37,981		15,042
Other		2,762		1,082		8,189		5,609
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by contract type	2019		2018		2019		2018
FFP	$	52,833	$	41,759	$	160,890	$	124,374
CPFF		22,370		12,862		65,223		30,183
T&M		119		12		231		238
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795

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				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by customer category	2019		2018		2019		2018
U.S. government:	$	52,383	$	31,020	$	135,232	$	94,491
Non-U.S. government		22,939		23,613		91,112		60,304
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by geographic location	2019		2018		2019		2018
Domestic	$	34,436	$	28,843	$	116,514	$	89,583
International		40,886		25,790		109,830		65,212
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795

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 nine month period ended January 26, 2019 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 January 26, 2019 and January 27, 2018 that was included in contract liability balances at the beginning of each year were $10,000 and $62,000, respectively; and revenue recognized for the nine month periods ended January 26, 2019 and January 27, 2018 that was included in contract liability balances at the beginning of each year were $1,587,000 and $977,000, 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 to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. 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. During the current fiscal year ending April 30, 2019, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2016 and 2017 without payment of any consideration. At January 26, 2019 and April 30, 2018, the Company had $93,000 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				Nine Months Ended
Income (loss) from	January 26, 2019		January 27, 2018		January 26, 2019		January 27, 2018
Continuing operations attributable to AeroVironment	$	8,431	$	(647)	$	35,815	$	2,738
Discontinued operations, net of tax		(62)		(129)		5,941		(1,650)
Net income (loss) attributable to AeroVironment	$	8,369	$	(776)	$	41,756	$	1,088
Denominator for basic earnings per share:
Weighted average common shares		23,687,672		23,515,622		23,643,866		23,443,673
Dilutive effect of employee stock options, restricted stock and restricted stock units		394,147		—		420,142		331,273
Denominator for diluted earnings per share		24,081,819		23,515,622		24,064,008		23,774,946

Potentially dilutive shares not included in the computation of diluted weighted-average common shares because their effect would have been anti-dilutive were 1,705 and 5,519 for the three and nine months ended January 26, 2019, respectively. Due to the net loss for the three months ended January 27, 2018, no shares reserved for issuance upon exercise of stock options or shares of unvested restricted stock were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive. Potentially dilutive shares not included in the computation of diluted weighted average common shares because their effect would have been anti-dilutive were 379,749 and 27,139 for the three and nine months ended January 27, 2018.

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. The guidance is effective for fiscal years beginning after December 15, 2018 and interim periods therein, with early adoption permitted. 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 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. As part of adoption, the Company plans to elect the package of practical expedients which allows the Company to not reassess existing or expired contracts for existence of a lease, lease classification, or amortization of previously capitalized initial direct leasing cost. Additionally, the Company also plans to elect the short-term lease exception to not record right-of-use assets and lease liabilities for leases with a term less than 12 months, the hindsight practical expedient to utilize latest information in determining lease term, and the practical expedient to not separate lease and non-lease components for most asset classes. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326). This ASU is intended to replace the incurred loss impairment methodology under GAAP with a methodology that reflects using a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments, and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The guidance is effective for fiscal years beginning after December 15, 2019 and the interim periods therein, with early adoption permitted. Entities are required to apply the amendments in this update using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date. 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 (Topic 220). 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.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820). This ASU removes or modifies current disclosures while adding certain new disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2019 and interim periods therein, with early adoption permitted for the removed or modified disclosures. The removed and modified disclosures can be adopted retrospectively, and the added disclosures should be adopted prospectively. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Topic 350-40). This ASU allows for capitalization of implementation costs associated with certain cloud computing arrangements. The guidance is effective for fiscal years beginning after December 15, 2019 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

9 Months Ended

Jan. 26, 2019

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 nine months ended January 26, 2019, the Company recorded a reduction to the gain resulting from a working capital adjustment of $505,000. In addition, the Company has disputed $1,085,000 of Webasto’s working capital adjustment claim, which is being submitted to an independent accounting firm for resolution pursuant to the terms of Purchase Agreement. No amounts have been recorded in the consolidated financial statements related to the additional working capital dispute as the 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 January 26, 2019. The Company’s satisfaction of the requirements for the payment of the Holdback is currently in dispute.

On February 22, 2019, Webasto filed a lawsuit alleging several claims against the Company for breach of contract, indemnity, and bad faith, including allegations regarding inaccuracy of certain diligence disclosures, failure to provide certain consents to contract assignments and related to the previously announced recall. Webasto seeks to recover the costs of the recall and other damages totaling a minimum of $6,500,000 in addition to attorneys’ fees, costs, and punitive damages. The Company believes that the allegations are generally meritless and intends to mount a vigorous defense.

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 was $657,000 and $2,013,000 and has been recorded in “Other income, net” in the consolidated statements of operations for three and nine months ended January 26, 2019, 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				Nine Months Ended
	January 26, 2019		January 27, 2018		January 26, 2019		January 27, 2018
Net sales	$	—	$	10,623	$	4,256	$	28,198
Cost of sales		54		8,356		5,080		23,159
Gross margin		(54)		2,267		(824)		5,039
Selling, general and administrative		14		2,016		1,517		5,756
Research and development		34		707		1,075		2,055
Other income, net		—		—		1		—
Loss from discontinued operations before income taxes		(102)		(456)		(3,415)		(2,772)
Benefit for income taxes		(41)		(327)		(904)		(1,122)
Net loss from discontinued operations	$	(61)	$	(129)	$	(2,511)	$	(1,650)
Gain on sale of business, net of tax expense of $2,463 for the nine months ended January 26, 2019		(1)		—		8,452		—
Net (loss) income from discontinued operations	$	(62)	$	(129)	$	5,941	$	(1,650)

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

9 Months Ended

Jan. 26, 2019

Investments

Investments

3. Investments

Investments consist of the following (in thousands):


	January 26,		April 30,
	2019		2018
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	12,542	$	35,344
U.S. government securities		45,325		31,620
Corporate bonds		81,948		46,685
Certificates of deposit		5,000		—
Total held-to-maturity and short-term investments	$	144,815	$	113,649
Long-term investments:
Held-to-maturity securities:
Municipal securities	$	—	$	2,046
U.S. government securities		25,228		27,356
Corporate bonds		2,726		9,112
Total held-to-maturity investments		27,954		38,514
Available-for-sale securities:
Auction rate securities		—		2,142
Total available-for-sale investments		—		2,142
Total long-term investments	$	27,954	$	40,656

Held-To-Maturity Securities

As of January 26, 2019 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 January 26, 2019 were as follows (in thousands):


	January 26, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	12,542	$	6	$	(5)	$	12,543
U.S. government securities		70,553		30		(143)		70,440
Corporate bonds		84,674		3		(32)		84,645
Certificates of deposit		5,000		—		—		5,000
Total held-to-maturity investments	$	172,769	$	39	$	(180)	$	172,628

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 January 26, 2019 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	144,815	$	144,654
Due after one year through five years		27,954		27,974
Total	$	172,769	$	172,628

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 whether 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

9 Months Ended

Jan. 26, 2019

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 January 26, 2019 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 January 26, 2019	$	—
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 January 26, 2019	$	—

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

9 Months Ended

Jan. 26, 2019

Inventories, net

Inventories, net

5. Inventories, net

Inventories consist of the following (in thousands):


	January 26,		April 30,
	2019		2018
Raw materials	$	16,495	$	12,020
Work in process		15,352		14,780
Finished goods		25,076		14,578
Inventories, gross		56,923		41,378
Reserve for inventory excess and obsolescence		(6,544)		(3,953)
Inventories, net	$	50,379	$	37,425

Equity Method Investments	9 Months Ended
Equity Method Investments	Jan. 26, 2019
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; 150,000,000 yen ($1,407,000) on April 17, 2018; and 209,500,000 yen ($1,926,000) on January 29, 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. On February 9, 2019, the Company elected to purchase 632,800,000 yen (approximately $5,700,000 million) of additional shares of HAPSMobile to increase the Company’s ownership in the joint venture from 5% to 10% pursuant to the terms of the JVA. The Company anticipates that the purchase of additional shares will be completed during the three months ending April 30, 2019. As of the date of this report, the Company’s option to purchase additional shares of HAPSMobile has expired. 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 nine months ended January 26, 2019, the Company recorded 5% of the net loss of HAPSMobile, or $717,000 and $2,071,000, respectively, in “Equity method investment activity, net of tax” in the unaudited consolidated statement of operations. At January 26, 2019, the cumulative equity method losses have exceeded the Company’s investments in HAPSMobile by $92,000 which was recorded in “Other current liabilities.”

Warranty Reserves

9 Months Ended

Jan. 26, 2019

Warranty Reserves

Warranty Reserves

7. Warranty Reserves

The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred. The warranty reserve is included in other current liabilities. The related expense is included in cost of sales. Warranty reserve activity is summarized as follows for the three and nine months ended January 26, 2019 and January 27, 2018, respectively (in thousands):


	Three Months Ended				Nine Months Ended
	January 26,			January 27,	January 26,		January 27,
	2019		2018		2019		2018
Beginning balance	$	2,431	$	1,930	$	2,090	$	1,947
Warranty expense		53		1,219		414		2,131
Changes in estimates related to pre-existing warranties		—		—		519		—
Warranty costs settled		(354)		(330)		(893)		(1,259)
Ending balance	$	2,130	$	2,819	$	2,130	$	2,819

During the nine months ended January 26, 2019, 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 January 26, 2019, the total remaining warranty reserve related to the estimated costs to repair the impacted UAS was $344,000. As of January 26, 2019 a total of $175,000 of costs related to this warranty have been incurred.

Intangibles

9 Months Ended

Jan. 26, 2019

Intangibles

Intangibles

8. Intangibles

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


	January 26,		April 30,
	2019		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		(1,208)		(954)
Intangibles, net	$	562	$	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.

AOCI (Loss) and Reclassifications Adjustments

9 Months Ended

Jan. 26, 2019

AOCI (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 income (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		—		(32)		(32)
Unrealized gains, net of $51 of taxes		57		—		57
Balance, net of $0 of taxes, as of January 26, 2019	$	—	$	4	$	4

Customer-Funded Research & Development	9 Months Ended
Customer-Funded Research & Development	Jan. 26, 2019
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 $19,437,000 and $55,344,000 for the three and nine months ended January 26, 2019, respectively. Revenue from customer-funded R&D was approximately $10,198,000 and $30,860,000 for the three and nine months ended January 27, 2018, respectively.

Long-Term Incentive Awards	9 Months Ended
Long-Term Incentive Awards	Jan. 26, 2019
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. For the three and nine months ended January 26, 2019, the Company recorded $226,00 and $482,000 of compensation expense related to the Fiscal 2019 LTIP, respectively. The Company recorded no compensation expense related to the Fiscal 2019 LTIP for the three and nine months ended January 27, 2018. At January 26, 2019, 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. For the three and nine months ended January 26, 2019, the Company recorded $317,000 and $653,000 of compensation expense related to the Fiscal 2018 LTIP, respectively. The Company recorded no compensation expense related to the Fiscal 2018 LTIP for the three and nine months ended January 27, 2018. At January 26, 2019, 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. For the three and nine months ended January 26, 2019, the Company recorded $134,000 and $266,000 of compensation expense related to the Fiscal 2017 LTIP, respectively. The Company recorded no compensation expense related to the Fiscal 2017 LTIP for the three and nine months ended January 27, 2018. At January 26, 2019, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2017 LTIP is $2,630,000. At January 26, 2019 and April 30, 2018, the Company recorded cumulative stock-based compensation expense from these long-term incentive awards of $1,829,000 and $428,000, respectively. 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	9 Months Ended
Income Taxes	Jan. 26, 2019
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 provided 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 measurement period under SAB 118 closed during the three months ended January 26, 2019. The Company has finalized its accounting for the impact of the Tax Act during the three months ended January 26, 2019 and reached the following conclusions on the previous provisional estimates. The Company has concluded it will be eligible to claim the FDII deduction and will continue to reflect a rate benefit in the provision for income taxes. The Company expects the IRS will be issuing additional guidance that will ultimately impact the size of the benefit. In addition, the Company has concluded that its foreign subsidiaries are in a cumulative earnings and profits deficit and, therefore, has confirmed that it will not have an income tax payable as a result of the one-time deemed repatriation tax. As such, there are no changes to the provision estimates of these items. In relation to the one-time deferred tax remeasurement, the Company has completed its tax return and has concluded that the impact recorded at the date of enactment was appropriate. The Company filed its fiscal 2018 tax return on February 15, 2019 and will have insignificant return to provision true-up entries related to fixed asset gain or loss, accrued vacation, and accrued expenses recorded during the three months ending April 30, 2019. These true-up entries represent a change in estimate of the ending timing differences for the fiscal year ending April 30, 2019 and not a change to the provision estimate of the impact of the Tax Act at the date of enactment. As such, there are no changes to the provision estimate of this item. For the three and nine months ended January 26, 2019, the Company recorded a provision for income taxes of $946,000 and $4,724,000, respectively, yielding effective tax rates of 9.4% and 11.1%, respectively. For the three and nine months ended January 27, 2018, the Company recorded a provision for income taxes of $834,000 and $971,000, respectively, yielding effective tax rates of 139.9% and 25.0%, respectively. The variance from statutory rates for the three and nine months ended January 26, 2019 was primarily due to federal R&D credits and the recording of discrete excess tax benefits of $175,000 and $1,683,000, respectively, resulting from the vesting of restricted stock awards and exercises of stock options. The variance from statutory rates for the three and nine months ended January 27, 2018 was primarily due to a $3,100,000 remeasurement charge of the Company’s deferred tax assets and liabilities and a reduction in the fiscal 2018 federal statutory rate to 30.4%, both of which are impacts of the Tax Act. In addition, during the three and nine months ended January 27, 2018, the Company recorded discrete excess tax benefits of $212,000 and $1,614,000 resulting from the vesting of restricted stock awards and exercises of stock options.

Share Repurchase	9 Months Ended
Share Repurchase	Jan. 26, 2019
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 nine months ended January 26, 2019. As of January 26, 2019 and April 30, 2018, approximately $21.2 million remained authorized for future repurchases under this program.

Related Party Transactions	9 Months Ended
Related Party Transactions	Jan. 26, 2019
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 $13,586,000 and $37,981,000 for the three and nine months ended January 26, 2019, respectively. The Company recorded revenue under the DDA and preliminary design agreements between the Company and SoftBank of $5,420,000 and $15,042,000 for the three and nine months ended January 27, 2018, respectively. At January 26, 2019 and April 30, 2018, the Company had unbilled related party receivables from HAPSMobile of $13,638,000 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. On February 9, 2019, the Company elected to purchase 632,800,000 yen (approximately $5,700,000 million) of additional shares of HAPSMobile to increase the Company’s ownership in the joint venture from 5% to 10% pursuant to the terms of the JVA. Refer to Note 6—Equity Method Investments for further details.

Legal Settlements	9 Months Ended
Legal Settlements	Jan. 26, 2019
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

9 Months Ended

Jan. 26, 2019

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 nine months ended January 27, 2018 (in thousands except share and per share data).


	Three Months Ended		Effect of the		Three Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Revenue:
Product sales	$	39,128	$	319	$	39,447
Contract services (inclusive of related party revenue of $5,420 for the three months ended January 27, 2018)		14,305		881		15,186
		53,433		1,200		54,633
Cost of sales:
Product sales		24,548		322		24,870
Contract services		10,964		549		11,513
		35,512		871		36,383
Gross margin:
Product sales		14,580		(3)		14,577
Contract services		3,341		332		3,673
		17,921		329		18,250
Selling, general and administrative		11,484		—		11,484
Research and development		6,607		—		6,607
Loss (income) from continuing operations		(170)		329		159
Other income (expense):
Interest income, net		545		—		545
Other expense, net		(108)		—		(108)
Income from continuing operations before income taxes		267		329		596
Provision for income taxes		819		15		834
Equity method investment activity, net of tax		(418)		—		(418)
Net (loss) income from continuing operations		(970)		314	$	(656)
Discontinued operations:
Gain on sale of business, net of tax expense of $0 for the three months ended January 27, 2018		—		—		—
Income (loss) from discontinued operations, net of tax		133		(262)		(129)
Net income (loss) from discontinued operations		133		(262)		(129)
Net (loss) income		(837)		52		(785)
Net loss attributable to noncontrolling interest		9		—		9
Net (loss) income attributable to AeroVironment	$	(828)	$	52	$	(776)
Net (loss) income per share attributable to AeroVironment—Basic
Continuing operations	$	(0.05)	$	0.01	$	(0.02)
Discontinued operations		0.01		(0.01)		(0.01)
Net loss per share attributable to AeroVironment—Basic	$	(0.04)	$	—	$	(0.03)
Net (loss) income per share attributable to AeroVironment—Diluted
Continuing operations	$	(0.05)	$	0.01	$	(0.02)
Discontinued operations		0.01		(0.01)		(0.01)
Net (loss) per share attributable to AeroVironment—Diluted	$	(0.04)	$	—	$	(0.03)
Weighted-average shares outstanding:
Basic		23,515,622		23,515,622		23,515,622
Diluted		23,515,622		23,515,622		23,515,622


	Nine Months Ended		Effect of the		Nine Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Revenue:
Product sales	$	106,901	$	(254)	$	106,647
Contract services (inclusive of related party revenue of $15,042 for the nine months ended January 27, 2018)		46,770		1,378		48,148
		153,671		1,124		154,795
Cost of sales:
Product sales		66,526		(488)		66,038
Contract services		30,436		1,230		31,666
		96,962		742		97,704
Gross margin:
Product sales		40,375		234		40,609
Contract services		16,334		148		16,482
		56,709		382		57,091
Selling, general and administrative		35,539		—		35,539
Research and development		18,993		—		18,993
Income from continuing operations		2,177		382		2,559
Other income (expense):
Interest income, net		1,489		—		1,489
Other expense, net		(159)		—		(159)
Income from continuing operations before income taxes		3,507		382		3,889
Provision for income taxes		963		8		971
Equity method investment activity, net of tax		(418)		—		(418)
Net income from continuing operations		2,126		374	$	2,500
Discontinued operations:
Gain on sale of business, net of tax expense of $0 for the nine months ended January 27, 2018		—		—		—
Loss from discontinued operations, net of tax		(617)		(1,033)		(1,650)
Net loss from discontinued operations		(617)		(1,033)		(1,650)
Net income (loss)		1,509		(659)		850
Net loss attributable to noncontrolling interest		238		—		238
Net income (loss) attributable to AeroVironment	$	1,747	$	(659)	$	1,088
Net income (loss) per share attributable to AeroVironment—Basic
Continuing operations	$	0.10	$	0.01	$	0.12
Discontinued operations		(0.03)		(0.04)		(0.07)
Net income (loss) per share attributable to AeroVironment—Basic	$	0.07	$	(0.03)	$	0.05
Net income (loss) per share attributable to AeroVironment—Diluted
Continuing operations	$	0.10	$	0.01	$	0.12
Discontinued operations		(0.03)		(0.04)		(0.07)
Net income (loss) per share attributable to AeroVironment—Diluted	$	0.07	$	(0.03)	$	0.05
Weighted-average shares outstanding:
Basic		23,443,673		23,443,673		23,443,673
Diluted		23,774,946		23,774,946		23,774,946

The tables below presents the impact of adoption on the Company’s unaudited statement of comprehensive (loss) income for the three and nine months January 27, 2018 (in thousands).


	Three Months Ended		Effect of the		Three Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Net (loss) income	$	(837)	$	52	$	(785)
Other comprehensive income:
Change in foreign currency translation adjustments		62		—		62
Unrealized gain on investments, net of deferred tax expense of $10 for the three months ended January 27, 2018		13		—		13
Total comprehensive (loss) income		(762)		52	$	(710)
Net loss attributable to noncontrolling interest		9		—		9
Comprehensive (loss) income attributable to AeroVironment	$	(753)	$	52	$	(701)


	Nine Months Ended		Effect of the		Nine Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Net income (loss)	$	1,509	$	(659)	$	850
Other comprehensive income:
Change in foreign currency translation adjustments		62		—		62
Unrealized gain on investments, net of deferred tax expense of $29 for the nine months ended January 27, 2018		42		—		42
Total comprehensive income (loss)		1,613		(659)	$	954
Net loss attributable to noncontrolling interest		238		—		238
Comprehensive income (loss) attributable to AeroVironment	$	1,851	$	(659)	$	1,192

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


	Nine Months Ended		Effect of the		Nine Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Operating activities
Net income (loss)	$	1,509	$	(659)	$	850
Gain on sale of business, net of tax		—		—		—
Loss from discontinued operations, net of tax		617		1,033		1,650
Net income from continuing operations		2,126		374		2,500
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization		4,277		—		4,277
Loss from equity method investments		418		—		418
Impairment of long-lived assets		255		—		255
Provision for doubtful accounts		940		—		940
Impairment of intangible assets and goodwill		1,021		—		1,021
Gains on foreign currency transactions		(36)		—		(36)
Deferred income taxes		174		—		174
Stock-based compensation		3,702		—		3,702
Loss on disposition of property and equipment		15		—		15
Amortization of held-to-maturity investments		1,250		—		1,250
Changes in operating assets and liabilities:
Accounts receivable		48,871		—		48,871
Unbilled receivables and retentions		(10,842)		(1,226)		(12,068)
Inventories		(16,094)		786		(15,308)
Income tax receivable		(293)		(427)		(720)
Prepaid expenses and other assets		417		—		417
Accounts payable		(4,451)		—		(4,451)
Other liabilities		518		57		575
Net cash provided by (used in) operating activities of continuing operations		32,268		(436)		31,832
Investing activities
Acquisition of property and equipment		(7,713)		—		(7,713)
Equity method investments		(1,860)		—		(1,860)
Proceeds from sale of business		—		—		—
Redemptions of held-to-maturity investments		163,813		—		163,813
Purchases of held-to-maturity investments		(151,740)		—		(151,740)
Redemptions of available-for-sale investments		450		—		450
Net cash provided by investing activities from continuing operations		2,950		—		2,950
Financing activities
Principal payments of capital lease obligations		(231)		—		(231)
Tax withholding payment related to net settlement of equity awards		(389)		—		(389)
Exercise of stock options		2,691		—		2,691
Net cash provided by financing activities from continuing operations		2,071		—		2,071
Discontinued operations
Operating activities of discontinued operations		(4,152)		436		(3,716)
Investing activities of discontinued operations		(737)		—		(737)
Financing activities of discontinued operations		—		—		—
Net cash (used in) provided by discontinued operations		(4,889)		436		(4,453)
Net increase in cash and cash equivalents		32,400		—		32,400
Cash and cash equivalents at beginning of period		79,904		—		79,904
Cash and cash equivalents at end of period	$	112,304	$	—	$	112,304
Supplemental disclosures of cash flow information
Cash paid, net during the period for:
Income taxes	$	1,812		—	$	1,812
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $29	$	42		—	$	42
Reclassification from share-based liability compensation to equity	$	384		—	$	384
Change in foreign currency translation adjustments	$	62		—	$	62
Acquisitions of property and equipment included in accounts payable	$	332		—	$	332

Organization and Significant Accounting Policies (Policies)

9 Months Ended

Jan. 26, 2019

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				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by major product line/program	2019		2018		2019		2018
Small UAS	$	47,704	$	31,705	$	131,119	$	98,787
TMS		11,270		16,426		49,055		35,357
HAPS		13,586		5,420		37,981		15,042
Other		2,762		1,082		8,189		5,609
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by contract type	2019		2018		2019		2018
FFP	$	52,833	$	41,759	$	160,890	$	124,374
CPFF		22,370		12,862		65,223		30,183
T&M		119		12		231		238
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by customer category	2019		2018		2019		2018
U.S. government:	$	52,383	$	31,020	$	135,232	$	94,491
Non-U.S. government		22,939		23,613		91,112		60,304
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by geographic location	2019		2018		2019		2018
Domestic	$	34,436	$	28,843	$	116,514	$	89,583
International		40,886		25,790		109,830		65,212
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795

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				Nine Months Ended
Income (loss) from	January 26, 2019		January 27, 2018		January 26, 2019		January 27, 2018
Continuing operations attributable to AeroVironment	$	8,431	$	(647)	$	35,815	$	2,738
Discontinued operations, net of tax		(62)		(129)		5,941		(1,650)
Net income (loss) attributable to AeroVironment	$	8,369	$	(776)	$	41,756	$	1,088
Denominator for basic earnings per share:
Weighted average common shares		23,687,672		23,515,622		23,643,866		23,443,673
Dilutive effect of employee stock options, restricted stock and restricted stock units		394,147		—		420,142		331,273
Denominator for diluted earnings per share		24,081,819		23,515,622		24,064,008		23,774,946

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)

9 Months Ended

Jan. 26, 2019

Organization and Significant Accounting Policies

Schedule of revenue by category


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by major product line/program	2019		2018		2019		2018
Small UAS	$	47,704	$	31,705	$	131,119	$	98,787
TMS		11,270		16,426		49,055		35,357
HAPS		13,586		5,420		37,981		15,042
Other		2,762		1,082		8,189		5,609
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by contract type	2019		2018		2019		2018
FFP	$	52,833	$	41,759	$	160,890	$	124,374
CPFF		22,370		12,862		65,223		30,183
T&M		119		12		231		238
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by customer category	2019		2018		2019		2018
U.S. government:	$	52,383	$	31,020	$	135,232	$	94,491
Non-U.S. government		22,939		23,613		91,112		60,304
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795


	Three Months Ended				Nine Months Ended
	January 26,		January 27,		January 26,		January 27,
Revenue by geographic location	2019		2018		2019		2018
Domestic	$	34,436	$	28,843	$	116,514	$	89,583
International		40,886		25,790		109,830		65,212
Total revenue	$	75,322	$	54,633	$	226,344	$	154,795

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				Nine Months Ended
Income (loss) from	January 26, 2019		January 27, 2018		January 26, 2019		January 27, 2018
Continuing operations attributable to AeroVironment	$	8,431	$	(647)	$	35,815	$	2,738
Discontinued operations, net of tax		(62)		(129)		5,941		(1,650)
Net income (loss) attributable to AeroVironment	$	8,369	$	(776)	$	41,756	$	1,088
Denominator for basic earnings per share:
Weighted average common shares		23,687,672		23,515,622		23,643,866		23,443,673
Dilutive effect of employee stock options, restricted stock and restricted stock units		394,147		—		420,142		331,273
Denominator for diluted earnings per share		24,081,819		23,515,622		24,064,008		23,774,946

Discontinued Operations (Tables)

9 Months Ended

Jan. 26, 2019

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				Nine Months Ended
	January 26, 2019		January 27, 2018		January 26, 2019		January 27, 2018
Net sales	$	—	$	10,623	$	4,256	$	28,198
Cost of sales		54		8,356		5,080		23,159
Gross margin		(54)		2,267		(824)		5,039
Selling, general and administrative		14		2,016		1,517		5,756
Research and development		34		707		1,075		2,055
Other income, net		—		—		1		—
Loss from discontinued operations before income taxes		(102)		(456)		(3,415)		(2,772)
Benefit for income taxes		(41)		(327)		(904)		(1,122)
Net loss from discontinued operations	$	(61)	$	(129)	$	(2,511)	$	(1,650)
Gain on sale of business, net of tax expense of $2,463 for the nine months ended January 26, 2019		(1)		—		8,452		—
Net (loss) income from discontinued operations	$	(62)	$	(129)	$	5,941	$	(1,650)

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
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-Name Accounting Standards Codification
-Topic 205
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Topic 205
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-Section 50
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-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
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-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
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-Section 50
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-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
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-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
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-Section 50
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-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
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-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
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-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
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-Section 50
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-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
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-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Investments (Tables)

9 Months Ended

Jan. 26, 2019

Investments

Schedule of investments

Investments consist of the following (in thousands):


	January 26,		April 30,
	2019		2018
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	12,542	$	35,344
U.S. government securities		45,325		31,620
Corporate bonds		81,948		46,685
Certificates of deposit		5,000		—
Total held-to-maturity and short-term investments	$	144,815	$	113,649
Long-term investments:
Held-to-maturity securities:
Municipal securities	$	—	$	2,046
U.S. government securities		25,228		27,356
Corporate bonds		2,726		9,112
Total held-to-maturity investments		27,954		38,514
Available-for-sale securities:
Auction rate securities		—		2,142
Total available-for-sale investments		—		2,142
Total long-term investments	$	27,954	$	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 January 26, 2019 were as follows (in thousands):


	January 26, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	12,542	$	6	$	(5)	$	12,543
U.S. government securities		70,553		30		(143)		70,440
Corporate bonds		84,674		3		(32)		84,645
Certificates of deposit		5,000		—		—		5,000
Total held-to-maturity investments	$	172,769	$	39	$	(180)	$	172,628

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 January 26, 2019 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	144,815	$	144,654
Due after one year through five years		27,954		27,974
Total	$	172,769	$	172,628

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)

9 Months Ended

Jan. 26, 2019

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 January 26, 2019	$	—
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 January 26, 2019	$	—

Inventories, net (Tables)

9 Months Ended

Jan. 26, 2019

Inventories, net

Schedule of inventories

Inventories consist of the following (in thousands):


	January 26,		April 30,
	2019		2018
Raw materials	$	16,495	$	12,020
Work in process		15,352		14,780
Finished goods		25,076		14,578
Inventories, gross		56,923		41,378
Reserve for inventory excess and obsolescence		(6,544)		(3,953)
Inventories, net	$	50,379	$	37,425

Warranty Reserves (Tables)

9 Months Ended

Jan. 26, 2019

Warranty Reserves

Summary of warranty reserve activity

Warranty reserve activity is summarized as follows for the three and nine months ended January 26, 2019 and January 27, 2018, respectively (in thousands):


	Three Months Ended				Nine Months Ended
	January 26,			January 27,	January 26,		January 27,
	2019		2018		2019		2018
Beginning balance	$	2,431	$	1,930	$	2,090	$	1,947
Warranty expense		53		1,219		414		2,131
Changes in estimates related to pre-existing warranties		—		—		519		—
Warranty costs settled		(354)		(330)		(893)		(1,259)
Ending balance	$	2,130	$	2,819	$	2,130	$	2,819

Intangibles (Tables)

9 Months Ended

Jan. 26, 2019

Intangibles

Schedule of components of intangibles

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


	January 26,		April 30,
	2019		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		(1,208)		(954)
Intangibles, net	$	562	$	628

AOCI (Loss) and Reclassifications Adjustments (Tables)

9 Months Ended

Jan. 26, 2019

AOCI (Loss) and Reclassifications Adjustments

Schedule of components of accumulated other comprehensive loss


	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		—		(32)		(32)
Unrealized gains, net of $51 of taxes		57		—		57
Balance, net of $0 of taxes, as of January 26, 2019	$	—	$	4	$	4

Impact of Adoption of New Accounting Standards (Tables)

9 Months Ended

Jan. 26, 2019

Revenue, Initial Application Period Cumulative Effect Transition [Abstract]

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

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


	Three Months Ended		Effect of the		Three Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Revenue:
Product sales	$	39,128	$	319	$	39,447
Contract services (inclusive of related party revenue of $5,420 for the three months ended January 27, 2018)		14,305		881		15,186
		53,433		1,200		54,633
Cost of sales:
Product sales		24,548		322		24,870
Contract services		10,964		549		11,513
		35,512		871		36,383
Gross margin:
Product sales		14,580		(3)		14,577
Contract services		3,341		332		3,673
		17,921		329		18,250
Selling, general and administrative		11,484		—		11,484
Research and development		6,607		—		6,607
Loss (income) from continuing operations		(170)		329		159
Other income (expense):
Interest income, net		545		—		545
Other expense, net		(108)		—		(108)
Income from continuing operations before income taxes		267		329		596
Provision for income taxes		819		15		834
Equity method investment activity, net of tax		(418)		—		(418)
Net (loss) income from continuing operations		(970)		314	$	(656)
Discontinued operations:
Gain on sale of business, net of tax expense of $0 for the three months ended January 27, 2018		—		—		—
Income (loss) from discontinued operations, net of tax		133		(262)		(129)
Net income (loss) from discontinued operations		133		(262)		(129)
Net (loss) income		(837)		52		(785)
Net loss attributable to noncontrolling interest		9		—		9
Net (loss) income attributable to AeroVironment	$	(828)	$	52	$	(776)
Net (loss) income per share attributable to AeroVironment—Basic
Continuing operations	$	(0.05)	$	0.01	$	(0.02)
Discontinued operations		0.01		(0.01)		(0.01)
Net loss per share attributable to AeroVironment—Basic	$	(0.04)	$	—	$	(0.03)
Net (loss) income per share attributable to AeroVironment—Diluted
Continuing operations	$	(0.05)	$	0.01	$	(0.02)
Discontinued operations		0.01		(0.01)		(0.01)
Net (loss) per share attributable to AeroVironment—Diluted	$	(0.04)	$	—	$	(0.03)
Weighted-average shares outstanding:
Basic		23,515,622		23,515,622		23,515,622
Diluted		23,515,622		23,515,622		23,515,622


	Nine Months Ended		Effect of the		Nine Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Revenue:
Product sales	$	106,901	$	(254)	$	106,647
Contract services (inclusive of related party revenue of $15,042 for the nine months ended January 27, 2018)		46,770		1,378		48,148
		153,671		1,124		154,795
Cost of sales:
Product sales		66,526		(488)		66,038
Contract services		30,436		1,230		31,666
		96,962		742		97,704
Gross margin:
Product sales		40,375		234		40,609
Contract services		16,334		148		16,482
		56,709		382		57,091
Selling, general and administrative		35,539		—		35,539
Research and development		18,993		—		18,993
Income from continuing operations		2,177		382		2,559
Other income (expense):
Interest income, net		1,489		—		1,489
Other expense, net		(159)		—		(159)
Income from continuing operations before income taxes		3,507		382		3,889
Provision for income taxes		963		8		971
Equity method investment activity, net of tax		(418)		—		(418)
Net income from continuing operations		2,126		374	$	2,500
Discontinued operations:
Gain on sale of business, net of tax expense of $0 for the nine months ended January 27, 2018		—		—		—
Loss from discontinued operations, net of tax		(617)		(1,033)		(1,650)
Net loss from discontinued operations		(617)		(1,033)		(1,650)
Net income (loss)		1,509		(659)		850
Net loss attributable to noncontrolling interest		238		—		238
Net income (loss) attributable to AeroVironment	$	1,747	$	(659)	$	1,088
Net income (loss) per share attributable to AeroVironment—Basic
Continuing operations	$	0.10	$	0.01	$	0.12
Discontinued operations		(0.03)		(0.04)		(0.07)
Net income (loss) per share attributable to AeroVironment—Basic	$	0.07	$	(0.03)	$	0.05
Net income (loss) per share attributable to AeroVironment—Diluted
Continuing operations	$	0.10	$	0.01	$	0.12
Discontinued operations		(0.03)		(0.04)		(0.07)
Net income (loss) per share attributable to AeroVironment—Diluted	$	0.07	$	(0.03)	$	0.05
Weighted-average shares outstanding:
Basic		23,443,673		23,443,673		23,443,673
Diluted		23,774,946		23,774,946		23,774,946

The tables below presents the impact of adoption on the Company’s unaudited statement of comprehensive (loss) income for the three and nine months January 27, 2018 (in thousands).


	Three Months Ended		Effect of the		Three Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Net (loss) income	$	(837)	$	52	$	(785)
Other comprehensive income:
Change in foreign currency translation adjustments		62		—		62
Unrealized gain on investments, net of deferred tax expense of $10 for the three months ended January 27, 2018		13		—		13
Total comprehensive (loss) income		(762)		52	$	(710)
Net loss attributable to noncontrolling interest		9		—		9
Comprehensive (loss) income attributable to AeroVironment	$	(753)	$	52	$	(701)


	Nine Months Ended		Effect of the		Nine Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Net income (loss)	$	1,509	$	(659)	$	850
Other comprehensive income:
Change in foreign currency translation adjustments		62		—		62
Unrealized gain on investments, net of deferred tax expense of $29 for the nine months ended January 27, 2018		42		—		42
Total comprehensive income (loss)		1,613		(659)	$	954
Net loss attributable to noncontrolling interest		238		—		238
Comprehensive income (loss) attributable to AeroVironment	$	1,851	$	(659)	$	1,192

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


	Nine Months Ended		Effect of the		Nine Months Ended
	January 27, 2018		Adoption of		January 27, 2018
	As Reported		ASC Topic 606		As Adjusted
Operating activities
Net income (loss)	$	1,509	$	(659)	$	850
Gain on sale of business, net of tax		—		—		—
Loss from discontinued operations, net of tax		617		1,033		1,650
Net income from continuing operations		2,126		374		2,500
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization		4,277		—		4,277
Loss from equity method investments		418		—		418
Impairment of long-lived assets		255		—		255
Provision for doubtful accounts		940		—		940
Impairment of intangible assets and goodwill		1,021		—		1,021
Gains on foreign currency transactions		(36)		—		(36)
Deferred income taxes		174		—		174
Stock-based compensation		3,702		—		3,702
Loss on disposition of property and equipment		15		—		15
Amortization of held-to-maturity investments		1,250		—		1,250
Changes in operating assets and liabilities:
Accounts receivable		48,871		—		48,871
Unbilled receivables and retentions		(10,842)		(1,226)		(12,068)
Inventories		(16,094)		786		(15,308)
Income tax receivable		(293)		(427)		(720)
Prepaid expenses and other assets		417		—		417
Accounts payable		(4,451)		—		(4,451)
Other liabilities		518		57		575
Net cash provided by (used in) operating activities of continuing operations		32,268		(436)		31,832
Investing activities
Acquisition of property and equipment		(7,713)		—		(7,713)
Equity method investments		(1,860)		—		(1,860)
Proceeds from sale of business		—		—		—
Redemptions of held-to-maturity investments		163,813		—		163,813
Purchases of held-to-maturity investments		(151,740)		—		(151,740)
Redemptions of available-for-sale investments		450		—		450
Net cash provided by investing activities from continuing operations		2,950		—		2,950
Financing activities
Principal payments of capital lease obligations		(231)		—		(231)
Tax withholding payment related to net settlement of equity awards		(389)		—		(389)
Exercise of stock options		2,691		—		2,691
Net cash provided by financing activities from continuing operations		2,071		—		2,071
Discontinued operations
Operating activities of discontinued operations		(4,152)		436		(3,716)
Investing activities of discontinued operations		(737)		—		(737)
Financing activities of discontinued operations		—		—		—
Net cash (used in) provided by discontinued operations		(4,889)		436		(4,453)
Net increase in cash and cash equivalents		32,400		—		32,400
Cash and cash equivalents at beginning of period		79,904		—		79,904
Cash and cash equivalents at end of period	$	112,304	$	—	$	112,304
Supplemental disclosures of cash flow information
Cash paid, net during the period for:
Income taxes	$	1,812		—	$	1,812
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $29	$	42		—	$	42
Reclassification from share-based liability compensation to equity	$	384		—	$	384
Change in foreign currency translation adjustments	$	62		—	$	62
Acquisitions of property and equipment included in accounts payable	$	332		—	$	332

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 ($)	9 Months Ended
	Jan. 26, 2019	May 01, 2018	Apr. 30, 2018
Revenue Recognition
Retained earnings	$ 280,669,000		$ 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
Revenue Recognition
Retained earnings			238,913,000
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)	Jan. 26, 2019 USD ($)
Organization and Significant Accounting Policies
Remaining performance obligations	$ 132,515,000
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)	56.00%
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)	33.00%
Performance Obligations
Year of performance obligations	2 years

Organization and Significant Accounting Policies Other - Contract Estimates (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Organization and Significant Accounting Policies
Material adjustment to any one contract	$ 0	$ 0	$ 0	$ 0
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods	1,705,000		1,705,000
Amount of revised aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods	$ 1,519,000		$ 1,519,000

Organization and Significant Accounting Policies Other - Revenue by category (Details)	3 Months Ended		9 Months Ended
	Jan. 26, 2019 USD ($) contract	Jan. 27, 2018 USD ($)	Jan. 26, 2019 USD ($) contract	Jan. 27, 2018 USD ($)
Disaggregation of revenue
Number of active contracts \| contract	250		250
Total revenue	$ 75,322,000	$ 54,633,000	$ 226,344,000	$ 154,795,000
Contract Liability
Disaggregation of revenue
Revenue	10,000	62,000	1,587,000	977,000
Geographic Distribution, Domestic [Member]
Disaggregation of revenue
Revenue	34,436,000	28,843,000	116,514,000	89,583,000
Geographic Distribution International
Disaggregation of revenue
Revenue	40,886,000	25,790,000	109,830,000	65,212,000
U.S. Government
Disaggregation of revenue
Revenue	52,383,000	31,020,000	135,232,000	94,491,000
Non-U.S. Government
Disaggregation of revenue
Revenue	22,939,000	23,613,000	91,112,000	60,304,000
FFP
Disaggregation of revenue
Revenue	52,833,000	41,759,000	160,890,000	124,374,000
CPFF
Disaggregation of revenue
Revenue	22,370,000	12,862,000	65,223,000	30,183,000
T&M
Disaggregation of revenue
Revenue	119,000	12,000	231,000	238,000
Small UAS
Disaggregation of revenue
Revenue	47,704,000	31,705,000	131,119,000	98,787,000
TMS
Disaggregation of revenue
Revenue	11,270,000	16,426,000	49,055,000	35,357,000
HAPS
Disaggregation of revenue
Revenue	13,586,000	5,420,000	37,981,000	15,042,000
Other
Disaggregation of revenue
Revenue	$ 2,762,000	$ 1,082,000	$ 8,189,000	$ 5,609,000

Organization and Significant Accounting Policies Other - Government Contracts (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018	Jan. 27, 2018	Apr. 30, 2018
Government Contracts
Reserves for incurred cost claim audits	$ 93,000		$ 93,000			$ 77,000
Numerator for basic earnings per share:
Continuing operations attributable to AeroVironment	8,431,000	$ (647,000)	35,815,000		$ 2,738,000
Net (loss) income from discontinued operations	(62,000)	(129,000)	5,941,000		(1,650,000)
Net income (loss) attributable to AeroVironment	$ 8,369,000	$ (776,000)	$ 41,756,000		$ 1,088,000
Denominator for basic (loss) earnings per share:
Weighted-average common shares outstanding, excluding unvested restricted stock (in shares)	23,687,672	23,515,622	23,643,866		23,443,673
Dilutive effect of employee stock options and unvested restricted stock (in shares)	394,147		420,142		331,273
Denominator for diluted (loss) earnings per share (in shares)	24,081,819	23,515,622	24,064,008		23,774,946
Potentially dilutive shares		0
Number of shares reserved for issuance that are anti-dilutive	1,705	379,749	5,519	27,139	27,139

Discontinued Operations (Details)			3 Months Ended		9 Months Ended
Discontinued Operations (Details)	Feb. 22, 2019 USD ($)	Jun. 29, 2018 USD ($) contract	Jan. 26, 2019 USD ($)	Jan. 27, 2018 USD ($)	Jan. 26, 2019 USD ($)	Jan. 27, 2018 USD ($)
Discontinued operations
Amount of recall and other damages sought	$ 6,500,000
Statement of operations
Net loss from discontinued operations			$ (62,000)	$ (129,000)	$ (2,511,000)	$ (1,650,000)
Gain on sale of business, net of tax (benefit) expense of $0 and $2,463 for the three and nine months ended January 26, 2019, respectively					8,452,000
Tax expense			2,463,000	0	9,000	0
Net (loss) income from discontinued operations			(62,000)	(129,000)	5,941,000	(1,650,000)
EES Business \| Disposed of by sale
Discontinued operations
Cash consideration received		$ 31,994,000
Gain on sale of business		11,420,000			(505,000)
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			657,000		2,013,000
EES Business \| Discontinued Operations
Statement of operations
Net Sales				10,623,000	4,256,000	28,198,000
Cost of sales			54,000	8,356,000	5,080,000	23,159,000
Gross margin			(54,000)	2,267,000	(824,000)	5,039,000
Selling, general and administrative			14,000	2,016,000	1,517,000	5,756,000
Research and development			34,000	707,000	1,075,000	2,055,000
Other income, net					1,000
Loss from discontinued operations before income taxes			(102,000)	(456,000)	(3,415,000)	(2,772,000)
Benefit for income taxes			(41,000)	(327,000)	(904,000)	(1,122,000)
Net loss from discontinued operations			(61,000)	(129,000)	(2,511,000)	(1,650,000)
Gain on sale of business, net of tax (benefit) expense of $0 and $2,463 for the three and nine months ended January 26, 2019, respectively			(1,000)		8,452,000
Tax expense			2,463,000		9,000
Net (loss) income from discontinued operations			$ (62,000)	$ (129,000)	$ 5,941,000	$ (1,650,000)
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	Jan. 26, 2019	Apr. 30, 2018
Current assets:
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,046	$ 1,080
Total current assets classified as discontinued operations		25,668
Accrued liabilities
Total current liabilities		9,294
EES Business \| Discontinued Operations
Current assets:
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
Accrued 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 (Details) - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 30, 2018
Short-term investments:
Total held-to-maturity and short-term investments	$ 144,815	$ 113,649
Long-term investments:
Total long-term investments	27,954	40,656
Held to maturity securities
Long-term investments:
Total long-term investments	27,954	38,514
Held to maturity securities \| Municipal securities
Short-term investments:
Total held-to-maturity and short-term investments	12,542	35,344
Long-term investments:
Total long-term investments		2,046
Held to maturity securities \| U.S. government securities
Short-term investments:
Total held-to-maturity and short-term investments	45,325	31,620
Long-term investments:
Total long-term investments	25,228	27,356
Held to maturity securities \| Corporate bonds
Short-term investments:
Total held-to-maturity and short-term investments	81,948	46,685
Long-term investments:
Total long-term investments	2,726	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	Jan. 26, 2019	Apr. 30, 2018
Held To Maturity Securities
Amortized Cost	$ 172,769	$ 152,163
Gross Unrealized Gains	39	11
Gross Unrealized Losses	(180)	(474)
Fair Value	172,628	151,700
Municipal securities
Held To Maturity Securities
Amortized Cost	12,542	37,390
Gross Unrealized Gains	6	9
Gross Unrealized Losses	(5)	(36)
Fair Value	12,543	37,363
U.S. government securities
Held To Maturity Securities
Amortized Cost	70,553	58,976
Gross Unrealized Gains	30
Gross Unrealized Losses	(143)	(367)
Fair Value	70,440	58,609
Corporate bonds
Held To Maturity Securities
Amortized Cost	84,674	55,797
Gross Unrealized Gains	3	2
Gross Unrealized Losses	(32)	(71)
Fair Value	84,645	$ 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	Jan. 26, 2019	Apr. 30, 2018
Amortized cost of held-to-maturity securities by contractual maturity
Due within one year	$ 144,815
Due after one year through five years	27,954
Total	172,769	$ 152,163
Fair value of held-to-maturity securities by contractual maturity
Due within one year	144,654
Due after one year through five years	27,974
Fair Value	$ 172,628	$ 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	9 Months Ended
	Jan. 26, 2019 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	Jan. 26, 2019	Apr. 30, 2018
Inventories, net
Raw materials	$ 16,495	$ 12,020
Work in process	15,352	14,780
Finished goods	25,076	14,578
Inventories, gross	56,923	41,378
Reserve for inventory excess and obsolescence	(6,544)	(3,953)
Inventories, net	$ 50,379	$ 37,425

Equity Method Investments (Details)	3 Months Ended		9 Months Ended
Equity Method Investments (Details)	Jan. 26, 2019 USD ($)	Jan. 27, 2018 USD ($)	Jan. 26, 2019 USD ($)	Jan. 27, 2018 USD ($)	Feb. 09, 2019 JPY (¥)	Feb. 09, 2019 USD ($)	Feb. 08, 2019	Jan. 29, 2019 JPY (¥)	Jan. 29, 2019 USD ($)	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	$ (717,000)	$ (418,000)	$ (2,071,000)	$ (418,000)
HAPSMobile
Equity Method Investments
Ownership percentage					10.00%	10.00%	5.00%
Payments for purchase of interest					¥ 632,800,000	$ 5,700,000				¥ 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	$ 1,926,000
HAPSMobile \| Equity method investment activity, net of tax
Equity Method Investments
Equity method investment activity, net of tax	(717,000)		(2,071,000)
HAPSMobile \| Other assets, long term
Equity Method Investments
Carrying value of investment	$ 92,000		$ 92,000
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		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Warranty Reserves
Beginning balance	$ 2,431	$ 1,930	$ 2,090	$ 1,947
Warranty expense	53	1,219	414	2,131
Changes in estimates related to pre-existing warranties			519
Warranty costs settled	(354)	(330)	(893)	(1,259)
Ending balance	$ 2,130	$ 2,819	$ 2,130	$ 2,819

Warranty Reserves Estimated Cost (Details)	9 Months Ended
Warranty Reserves Estimated Cost (Details)	Jan. 26, 2019 USD ($)
Warranty Reserves
Product Warranty Expense	$ 175,000
UAS \| Warranty reserve.
Warranty Reserves
Revised warranty reserve charges	519,000
Standard Product Warranty Accrual, Preexisting, Increase (Decrease)	$ 344,000

Intangibles (Details) - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 30, 2018
Intangibles
Intangibles, gross	$ 1,770	$ 1,582
Less accumulated amortization	(1,208)	(954)
Intangibles, net	562	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

AOCI (Loss) and Reclassifications Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018	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 January 26, 2019	$ 4		4		$ (21)
Other comprehensive income, tax			0		76
Unrealized gain, tax portion	0	$ 10	51	$ 29
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	(32)		(32)
Unrealized gains, net of $51 of taxes			57
Balance, net of $0 of taxes, as of January 26, 2019	4		4		(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	(32)		(32)
Balance, net of $0 of taxes, as of January 26, 2019	$ 4		4		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 January 26, 2019					$ (57)

Customer-Funded Research & Development (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Customer-Funded Research & Development
Revenue from customer funded research and development	$ 19,437,000	$ 10,198,000	$ 55,344,000	$ 30,860,000

Long-Term Incentive Awards (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Long-Term Incentive Awards (Details) - USD ($)	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018	Apr. 30, 2018
Stock Based Compensation
Stock based compensation expense			$ 1,829,000		$ 428,000
Fiscal 2019 LTIP
Stock Based Compensation
Stock based compensation expense	$ 0		0
Fiscal 2019 LTIP \| Performance based restricted stock units
Stock Based Compensation
Stock based compensation expense	22,600		$ 482,000
Fiscal 2019 LTIP \| Performance based restricted stock units \| 100% Vested
Stock Based Compensation
Vesting (as a percentage)			100.00%
Fiscal 2019 LTIP \| Performance based restricted stock units \| 50% Vested
Stock Based Compensation
Vesting (as a percentage)			50.00%
Fiscal 2019 LTIP \| Performance based restricted stock units \| 200% Vested
Stock Based Compensation
Vesting (as a percentage)			200.00%
Fiscal 2019 LTIP \| Performance based restricted stock units \| Maximum
Stock Based Compensation
Stock based compensation expense			$ 3,733,000
Fiscal 2018 LTIP
Stock Based Compensation
Stock based compensation expense		$ 0		$ 0
Fiscal 2018 LTIP \| Performance based restricted stock units
Stock Based Compensation
Stock based compensation expense	317,000		$ 653,000
Exercisable period from grant date			3 years
Fiscal 2018 LTIP \| Performance based restricted stock units \| 100% Vested
Stock Based Compensation
Vesting (as a percentage)			100.00%
Fiscal 2018 LTIP \| Performance based restricted stock units \| 50% Vested
Stock Based Compensation
Vesting (as a percentage)			50.00%
Fiscal 2018 LTIP \| Performance based restricted stock units \| 200% Vested
Stock Based Compensation
Vesting (as a percentage)			200.00%
Fiscal 2018 LTIP \| Performance based restricted stock units \| Maximum
Stock Based Compensation
Stock based compensation expense			$ 2,850,000
Fiscal 2017 LTIP
Stock Based Compensation
Stock based compensation expense				$ 0
Fiscal 2017 LTIP \| Performance based restricted stock units
Stock Based Compensation
Stock based compensation expense	$ 134,000		$ 266,000
Exercisable period from grant date			3 years
Fiscal 2017 LTIP \| Performance based restricted stock units \| 100% Vested
Stock Based Compensation
Vesting (as a percentage)			100.00%
Fiscal 2017 LTIP \| Performance based restricted stock units \| 50% Vested
Stock Based Compensation
Vesting (as a percentage)			50.00%
Fiscal 2017 LTIP \| Performance based restricted stock units \| 200% Vested
Stock Based Compensation
Vesting (as a percentage)			200.00%
Fiscal 2017 LTIP \| Performance based restricted stock units \| Maximum
Stock Based Compensation
Stock based compensation expense			$ 2,630,000

Income Taxes (Details) - USD ($)	3 Months Ended		4 Months Ended	8 Months Ended	9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($)	Jan. 26, 2019	Jan. 27, 2018	Apr. 30, 2018	Dec. 31, 2017	Jan. 26, 2019	Jan. 27, 2018	Apr. 30, 2018
Income taxes
U.S. federal statutory income tax rate (as a percent)		30.40%	21.00%	35.00%	30.40%	30.40%
Deferred tax expense		$ 3,100,000				$ 3,100,000	$ 3,300,000
Provision for income taxes	$ 946,000	$ 834,000			$ 4,724,000	$ 971,000
Effective tax benefit rate (as a percent)	9.40%	139.90%			11.10%	25.00%
Excess tax benefits	$ 175,000	$ 212,000			$ 1,683,000	$ 1,614,000

Share Repurchase (Details) - USD ($)	3 Months Ended	9 Months Ended
Share Repurchase (Details) - USD ($)	Jan. 26, 2019	Jan. 26, 2019	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)	3 Months Ended		9 Months Ended
Related Party Transactions (Details)	Jan. 26, 2019 USD ($)	Jan. 27, 2018 USD ($)	Jan. 26, 2019 USD ($)	Jan. 27, 2018 USD ($)	Feb. 09, 2019 JPY (¥)	Feb. 09, 2019 USD ($)	Feb. 08, 2019	Apr. 30, 2018 USD ($)	Apr. 17, 2018 JPY (¥)	Apr. 17, 2018 USD ($)	Dec. 27, 2017 JPY (¥)	Dec. 27, 2017 USD ($)
Long-Term Incentive Awards
Revenue	$ 13,586,000	$ 5,420,000	$ 37,981,000	$ 15,042,000
Unbilled related party receivables	13,638,000		13,638,000					$ 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	13,586,000	$ 5,420,000	37,981,000	$ 15,042,000
Unbilled related party receivables	$ 13,638,000		$ 13,638,000					$ 3,145,000
HAPSMobile
Long-Term Incentive Awards
Payments for purchase of interest					¥ 632,800,000	$ 5,700,000			¥ 1,407,000	$ 150,000,000	¥ 1,860,000	$ 210,000,000
Ownership percentage					10.00%	10.00%	5.00%
AeroVironment \| HAPSMobile
Long-Term Incentive Awards
Ownership percentage											5.00%	5.00%

Impact of Adoption of New Accounting Standards - Balance Sheet (Details) - USD ($)	Jan. 26, 2019	May 01, 2018	Apr. 30, 2018	Jan. 27, 2018	Apr. 30, 2017
Current assets:
Cash and cash equivalents	$ 149,369,000		$ 143,517,000	$ 112,304,000	$ 79,904,000
Short-term investments	144,815,000		113,649,000
Accounts receivable, net of allowance for doubtful accounts of $1,080 at April 30, 2018	34,064,000		56,813,000
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $3,145 at April 30, 2018)	51,632,000		16,872,000
Inventories, net	50,379,000		37,425,000
Prepaid expenses and other current assets	6,616,000		5,103,000
Current assets of discontinued operations			25,668,000
Total current assets	436,875,000		399,047,000
Long-term investments	27,954,000		40,656,000
Property and equipment, net	20,542,000		19,219,000
Deferred income taxes	12,708,000		11,494,000
Other assets	884,000		3,002,000
Total assets	498,963,000		473,418,000
Current liabilities:
Accounts payable	11,629,000		21,340,000
Wages and related accruals	14,363,000		16,851,000
Income taxes payable	4,857,000		4,085,000
Customer advances	2,875,000		3,564,000
Other current liabilities	8,062,000		6,954,000
Current liabilities of discontinued operations			9,294,000
Total current liabilities	41,786,000		62,088,000
Deferred rent	1,352,000		1,536,000
Other non-current liabilities	160,000		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	174,891,000		170,139,000
Accumulated other comprehensive loss	4,000		(21,000)
Retained earnings	280,669,000		238,913,000
Total AeroVironment stockholders' equity	455,566,000		409,033,000
Noncontrolling interest	(17,000)		23,000
Total equity	455,549,000		409,056,000
Total liabilities and stockholders' equity	$ 498,963,000		473,418,000
ASU 2014-09
Current assets:
Cash and cash equivalents			143,517,000	112,304,000	79,904,000
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)			16,872,000
Inventories, net			37,425,000
Prepaid expenses and other current assets			5,103,000
Current assets of discontinued operations			25,668,000
Total current assets			399,047,000
Long-term investments			40,656,000
Property and equipment, net			19,219,000
Deferred income taxes			11,494,000
Other assets			3,002,000
Total assets			473,418,000
Current liabilities:
Accounts payable			21,340,000
Wages and related accruals			16,851,000
Income taxes payable			4,085,000
Customer advances			3,564,000
Other current liabilities			6,954,000
Current liabilities of discontinued operations			9,294,000
Total current liabilities			62,088,000
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			238,913,000
Total AeroVironment stockholders' equity			409,033,000
Noncontrolling interest			23,000
Total equity			409,056,000
Total liabilities and stockholders' equity			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			143,517,000	$ 112,304,000	$ 79,904,000
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	Jan. 26, 2019	Apr. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,046	$ 1,080
Due from Related Parties	$ 13,638	$ 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	23,932,460	23,908,736
Common stock, outstanding shares	23,932,460	23,908,736

Impact of Adoption of New Accounting Standards - Income Statement (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Revenue:
Total revenue	$ 75,322,000	$ 54,633,000	$ 226,344,000	$ 154,795,000
Cost of sales:
Cost of sales	44,930,000	36,383,000	134,964,000	97,704,000
Gross margin:
Gross margin	30,392,000	18,250,000	91,380,000	57,091,000
Selling, general and administrative	14,464,000	11,484,000	40,066,000	35,539,000
Research and development	8,087,000	6,607,000	22,631,000	18,993,000
Income from continuing operations	7,841,000	159,000	28,683,000	2,559,000
Other income:
Interest income, net	1,272,000	545,000	3,246,000	1,489,000
Other income (expense), net	962,000	(108,000)	10,641,000	(159,000)
Income from continuing operations before income taxes	10,075,000	596,000	42,570,000	3,889,000
Provision for income taxes	946,000	834,000	4,724,000	971,000
Equity method investment activity, net of tax	(717,000)	(418,000)	(2,071,000)	(418,000)
Net income from continuing operations	8,412,000	(656,000)	35,775,000	2,500,000
Discontinued operations:
Gain on sale of business, net of tax			8,452,000
Loss from discontinued operations, net of tax	(62,000)	(129,000)	(2,511,000)	(1,650,000)
Net (loss) income from discontinued operations	(62,000)	(129,000)	5,941,000	(1,650,000)
Net income (loss)	8,350,000	(785,000)	41,716,000	850,000
Net loss attributable to noncontrolling interest	19,000	9,000	40,000	238,000
Net income (loss) attributable to AeroVironment	$ 8,369,000	$ (776,000)	$ 41,756,000	$ 1,088,000
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)	$ 0.35	$ (0.02)	$ 1.52	$ 0.12
Basic, discontinuing (in dollars per share)		(0.01)	0.25	(0.07)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)	0.35	(0.03)	1.77	0.05
Diluted, continuing (in dollars per share)	0.35	(0.02)	1.49	0.12
Diluted, discontinued (in dollars per share)		(0.01)	0.25	(0.07)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)	$ 0.35	$ (0.03)	$ 1.74	$ 0.05
Weighted average shares outstanding:
Basic (in shares)	23,687,672	23,515,622	23,643,866	23,443,673
Diluted (in shares)	24,081,819	23,515,622	24,064,008	23,774,946
Product sales
Revenue:
Revenue	$ 50,024,000	$ 39,447,000	$ 152,393,000	$ 106,647,000
Cost of sales:
Cost of sales	26,780,000	24,870,000	83,158,000	66,038,000
Gross margin:
Gross margin	23,244,000	14,577,000	69,235,000	40,609,000
Contract services
Revenue:
Revenue	25,298,000	15,186,000	73,951,000	48,148,000
Cost of sales:
Cost of sales	18,150,000	11,513,000	51,806,000	31,666,000
Gross margin:
Gross margin	$ 7,148,000	3,673,000	$ 22,145,000	16,482,000
As Reported
Revenue:
Total revenue		53,433,000		153,671,000
Cost of sales:
Cost of sales		35,512,000		96,962,000
Gross margin:
Gross margin		17,921,000		56,709,000
Selling, general and administrative		11,484,000		35,539,000
Research and development		6,607,000		18,993,000
Income from continuing operations		(170,000)		2,177,000
Other income:
Interest income, net		545,000		1,489,000
Other income (expense), net		(108,000)		(159,000)
Income from continuing operations before income taxes		267,000		3,507,000
Provision for income taxes		819,000		963,000
Equity method investment activity, net of tax		(418,000)		(418,000)
Net income from continuing operations		(970,000)		2,126,000
Discontinued operations:
Loss from discontinued operations, net of tax		133,000		(617,000)
Net (loss) income from discontinued operations		133,000		(617,000)
Net income (loss)		(837,000)		1,509,000
Net loss attributable to noncontrolling interest		9,000		238,000
Net income (loss) attributable to AeroVironment		$ (828,000)		$ 1,747,000
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)		$ (0.05)		$ 0.10
Basic, discontinuing (in dollars per share)		0.01		(0.03)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)		(0.04)		0.07
Diluted, continuing (in dollars per share)		(0.05)		0.10
Diluted, discontinued (in dollars per share)		0.01		(0.03)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)		$ (0.04)		$ 0.07
Weighted average shares outstanding:
Basic (in shares)		23,515,622		23,443,673
Diluted (in shares)		23,515,622		23,774,946
As Reported \| Product sales
Revenue:
Revenue		$ 39,128,000		$ 106,901,000
Cost of sales:
Cost of sales		24,548,000		66,526,000
Gross margin:
Gross margin		14,580,000		40,375,000
As Reported \| Contract services
Revenue:
Revenue		14,305,000		46,770,000
Cost of sales:
Cost of sales		10,964,000		30,436,000
Gross margin:
Gross margin		3,341,000		16,334,000
ASU 2014-09
Revenue:
Total revenue		54,633,000		154,795,000
Cost of sales:
Cost of sales		36,383,000		97,704,000
Gross margin:
Gross margin		18,250,000		57,091,000
Selling, general and administrative		11,484,000		35,539,000
Research and development		6,607,000		18,993,000
Income from continuing operations		159,000		2,559,000
Other income:
Interest income, net		545,000		1,489,000
Other income (expense), net		(108,000)		(159,000)
Income from continuing operations before income taxes		596,000		3,889,000
Provision for income taxes		834,000		971,000
Equity method investment activity, net of tax		(418,000)		(418,000)
Net income from continuing operations		(656,000)		2,500,000
Discontinued operations:
Loss from discontinued operations, net of tax		(129,000)		(1,650,000)
Net (loss) income from discontinued operations		(129,000)		(1,650,000)
Net income (loss)		(785,000)		850,000
Net loss attributable to noncontrolling interest		9,000		238,000
Net income (loss) attributable to AeroVironment		$ (776,000)		$ 1,088,000
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)		$ (0.02)		$ 0.12
Basic, discontinuing (in dollars per share)		(0.01)		(0.07)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)		(0.03)		0.05
Diluted, continuing (in dollars per share)		(0.02)		0.12
Diluted, discontinued (in dollars per share)		(0.01)		(0.07)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)		$ (0.03)		$ 0.05
Weighted average shares outstanding:
Basic (in shares)		23,515,622		23,443,673
Diluted (in shares)		23,515,622		23,774,946
ASU 2014-09 \| Product sales
Revenue:
Revenue		$ 39,447,000		$ 106,647,000
Cost of sales:
Cost of sales		24,870,000		66,038,000
Gross margin:
Gross margin		14,577,000		40,609,000
ASU 2014-09 \| Contract services
Revenue:
Revenue		15,186,000		48,148,000
Cost of sales:
Cost of sales		11,513,000		31,666,000
Gross margin:
Gross margin		3,673,000		16,482,000
ASU 2014-09 \| Effect of the Adoption of ASC Topic 606
Revenue:
Total revenue		1,200,000		1,124,000
Cost of sales:
Cost of sales		871,000		742,000
Gross margin:
Gross margin		329,000		382,000
Income from continuing operations		329,000		382,000
Other income:
Income from continuing operations before income taxes		329,000		382,000
Provision for income taxes		15,000		8,000
Net income from continuing operations		314,000		374,000
Discontinued operations:
Loss from discontinued operations, net of tax		(262,000)		(1,033,000)
Net (loss) income from discontinued operations		(262,000)		(1,033,000)
Net income (loss)		52,000		(659,000)
Net income (loss) attributable to AeroVironment		$ 52,000		$ (659,000)
Net income (loss) per share attributable to AeroVironment - Basic
Basic, continuing (in dollars per share)		$ 0.01		$ 0.01
Basic, discontinuing (in dollars per share)		(0.01)		(0.04)
Net income (loss) per share attributable to AeroVironment - Basic (in dollars per share)				(0.03)
Diluted, continuing (in dollars per share)		0.01		0.01
Diluted, discontinued (in dollars per share)		$ (0.01)		(0.04)
Net income (loss) per share attributable to AeroVironment - Diluted (in dollars per share)				$ (0.03)
Weighted average shares outstanding:
Basic (in shares)		23,515,622		23,443,673
Diluted (in shares)		23,515,622		23,774,946
ASU 2014-09 \| Effect of the Adoption of ASC Topic 606 \| Product sales
Revenue:
Revenue		$ 319,000		$ (254,000)
Cost of sales:
Cost of sales		322,000		(488,000)
Gross margin:
Gross margin		(3,000)		234,000
ASU 2014-09 \| Effect of the Adoption of ASC Topic 606 \| Contract services
Revenue:
Revenue		881,000		1,378,000
Cost of sales:
Cost of sales		549,000		1,230,000
Gross margin:
Gross margin		$ 332,000		$ 148,000

Impact of Adoption of New Accounting Standards - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Abstract]
Revenue from Related Parties	$ 13,586	$ 5,420	$ 37,981	$ 15,042
Tax expense	$ 2,463	$ 0	$ 9	$ 0

Impact of Adoption of New Accounting Standards - Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net income	$ 8,350	$ (785)	$ 41,716	$ 850
Other comprehensive income:
Change in foreign currency translation adjustments	(1)	62	(32)	62
Unrealized gain on investments, net of deferred tax expense of $10 and $29 for the three and nine months ended January 27, 2018, respectively		13	57	42
Total comprehensive income (loss)	8,349	(710)	41,741	954
Net loss attributable to noncontrolling interest	19	9	40	238
Comprehensive income (loss) attributable to AeroVironment	$ 8,368	(701)	$ 41,781	1,192
As Reported
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net income		(837)		1,509
Other comprehensive income:
Change in foreign currency translation adjustments		62		62
Unrealized gain on investments, net of deferred tax expense of $10 and $29 for the three and nine months ended January 27, 2018, respectively		13		42
Total comprehensive income (loss)		(762)		1,613
Net loss attributable to noncontrolling interest		9		238
Comprehensive income (loss) attributable to AeroVironment		(753)		1,851
ASU 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net income		(785)		850
Other comprehensive income:
Change in foreign currency translation adjustments		62		62
Unrealized gain on investments, net of deferred tax expense of $10 and $29 for the three and nine months ended January 27, 2018, respectively		13		42
Total comprehensive income (loss)		(710)		954
Net loss attributable to noncontrolling interest		9		238
Comprehensive income (loss) attributable to AeroVironment		(701)		1,192
ASU 2014-09 \| Effect of the Adoption of ASC Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net income		52		(659)
Other comprehensive income:
Total comprehensive income (loss)		52		(659)
Comprehensive income (loss) attributable to AeroVironment		$ 52		$ (659)

Impact of Adoption of New Accounting Standards - Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Abstract]
Unrealized gain on investments, net of deferred tax expense (benefit)	$ 0	$ 10	$ 51	$ 29

Impact of Adoption of New Accounting Standards - Statement Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Operating activities
Net income	$ 8,350	$ (785)	$ 41,716	$ 850
Gain on sale of business, net of tax expense			(8,452)
Loss from discontinued operations, net of tax	62	129	2,511	1,650
Net income from continuing operations	8,412	(656)	35,775	2,500
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization			5,530	4,277
Loss from equity method investments	717	418	2,071	418
Impairment of long-lived assets				255
Provision for doubtful accounts			(33)	940
Impairment of intangible assets and goodwill				1,021
Gains on foreign currency transactions			(10)	(36)
Deferred income taxes			(1,214)	174
Stock-based compensation			5,599	3,702
Loss on disposition of property and equipment			51	15
Amortization of held-to-maturity investments			(941)	1,250
Changes in operating assets and liabilities:
Accounts receivable			22,817	48,871
Unbilled receivables and retentions			(34,760)	(12,068)
Inventories			(12,954)	(15,308)
Income tax receivable				(720)
Prepaid expenses and other assets			(1,791)	417
Accounts payable			(10,645)	(4,451)
Other liabilities			(2,598)	575
Net cash provided by operating activities of continuing operations			6,897	31,832
Investing activities
Acquisition of property and equipment			(6,806)	(7,713)
Proceeds from sale of business			31,994
Equity method investments				(1,860)
Redemptions of held-to-maturity investments			191,455	163,813
Purchases of held-to-maturity investments			(211,120)	(151,740)
Redemptions of available-for-sale investments			2,250	450
Net cash used in investing activities from continuing operations			7,773	2,950
Financing activities
Principal payments of capital lease obligations			(154)	(231)
Tax withholding payment related to net settlement of equity awards			(1,033)	(389)
Exercise of stock options			71	2,691
Net cash (used in) provided by financing activities from continuing operations			(1,116)	2,071
Discontinued operations
Operating activities of discontinued operations			(7,250)	(3,716)
Investing activities of discontinued operations			(452)	(737)
Net cash used in discontinued operations			(7,702)	(4,453)
Net increase in cash and cash equivalents			5,852	32,400
Cash and cash equivalents at beginning of period			143,517	79,904
Cash and cash equivalents at end of period	$ 149,369	112,304	149,369	112,304
Cash paid, net during the period for:
Income tax refund			6,777	1,812
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $4			57	42
Reclassification from share-based liability compensation to equity				384
Change in foreign currency translation adjustments			(32)	62
Acquisitions of property and equipment included in accounts payable			58	332
ASU 2014-09
Operating activities
Net income		(785)		850
Loss from discontinued operations, net of tax		129		1,650
Net income from continuing operations		(656)		2,500
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization				4,277
Loss from equity method investments		418		418
Impairment of long-lived assets				255
Provision for doubtful accounts				940
Impairment of intangible assets and goodwill				1,021
Gains on foreign currency transactions				(36)
Deferred income taxes				174
Stock-based compensation				3,702
Loss on disposition of property and equipment				15
Amortization of held-to-maturity investments				1,250
Changes in operating assets and liabilities:
Accounts receivable				48,871
Unbilled receivables and retentions				(12,068)
Inventories				(15,308)
Income tax receivable				(720)
Prepaid expenses and other assets				417
Accounts payable				(4,451)
Other liabilities				575
Net cash provided by operating activities of continuing operations				31,832
Investing activities
Acquisition of property and equipment				(7,713)
Equity method investments				(1,860)
Redemptions of held-to-maturity investments				163,813
Purchases of held-to-maturity investments				(151,740)
Redemptions of available-for-sale investments				450
Net cash used in investing activities from continuing operations				2,950
Financing activities
Principal payments of capital lease obligations				(231)
Tax withholding payment related to net settlement of equity awards				(389)
Exercise of stock options				2,691
Net cash (used in) provided by financing activities from continuing operations				2,071
Discontinued operations
Operating activities of discontinued operations				(3,716)
Investing activities of discontinued operations				(737)
Net cash used in discontinued operations				(4,453)
Net increase in cash and cash equivalents				32,400
Cash and cash equivalents at beginning of period			143,517	79,904
Cash and cash equivalents at end of period		112,304		112,304
Cash paid, net during the period for:
Income tax refund				1,812
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $4				42
Reclassification from share-based liability compensation to equity				384
Change in foreign currency translation adjustments				62
Acquisitions of property and equipment included in accounts payable				332
Effect of the Adoption of ASC Topic 606 \| ASU 2014-09
Operating activities
Net income		52		(659)
Loss from discontinued operations, net of tax		262		1,033
Net income from continuing operations		314		374
Changes in operating assets and liabilities:
Unbilled receivables and retentions				(1,226)
Inventories				786
Income tax receivable				(427)
Other liabilities				57
Net cash provided by operating activities of continuing operations				(436)
Discontinued operations
Operating activities of discontinued operations				436
Net cash used in discontinued operations				436
As Reported
Operating activities
Net income		(837)		1,509
Loss from discontinued operations, net of tax		(133)		617
Net income from continuing operations		(970)		2,126
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization				4,277
Loss from equity method investments		418		418
Impairment of long-lived assets				255
Provision for doubtful accounts				940
Impairment of intangible assets and goodwill				1,021
Gains on foreign currency transactions				(36)
Deferred income taxes				174
Stock-based compensation				3,702
Loss on disposition of property and equipment				15
Amortization of held-to-maturity investments				1,250
Changes in operating assets and liabilities:
Accounts receivable				48,871
Unbilled receivables and retentions				(10,842)
Inventories				(16,094)
Income tax receivable				(293)
Prepaid expenses and other assets				417
Accounts payable				(4,451)
Other liabilities				518
Net cash provided by operating activities of continuing operations				32,268
Investing activities
Acquisition of property and equipment				(7,713)
Equity method investments				(1,860)
Redemptions of held-to-maturity investments				163,813
Purchases of held-to-maturity investments				(151,740)
Redemptions of available-for-sale investments				450
Net cash used in investing activities from continuing operations				2,950
Financing activities
Principal payments of capital lease obligations				(231)
Tax withholding payment related to net settlement of equity awards				(389)
Exercise of stock options				2,691
Net cash (used in) provided by financing activities from continuing operations				2,071
Discontinued operations
Operating activities of discontinued operations				(4,152)
Investing activities of discontinued operations				(737)
Net cash used in discontinued operations				(4,889)
Net increase in cash and cash equivalents				32,400
Cash and cash equivalents at beginning of period			$ 143,517	79,904
Cash and cash equivalents at end of period		$ 112,304		112,304
Cash paid, net during the period for:
Income tax refund				1,812
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $4				42
Reclassification from share-based liability compensation to equity				384
Change in foreign currency translation adjustments				62
Acquisitions of property and equipment included in accounts payable				$ 332

Impact of Adoption of New Accounting Standards - Statement Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018
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)	$ (29)