0001558370-20-007720 | 10-K | XBRL Viewer

Investments (Tables)

12 Months Ended

Apr. 30, 2020


	April 30,
	2020		2019
	(In thousands)
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	—	$	5,332
U.S. government securities		—		63,205
Corporate bonds		—		81,950
Total held-to-maturity investments		—		150,487
Available-for-sale securities:
Municipal securities		5,244		—
U.S. government securities		33,771		—
Corporate bonds		8,492		—
Total available-for-sale investments		47,507		—
Total short-term investments	$	47,507	$	150,487
Long-term investments:
Held-to-maturity securities:
U.S. government securities	$	—	$	7,404
Corporate bonds		—		1,982
Total held-to-maturity investments		—		9,386
Available-for-sale securities:
Municipal securities		1,592		—
U.S. government securities		8,996		—
Total available-for-sale investments		10,588		—
Equity method investments
Investment in limited partnership fund		4,442		—
Total equity method investments		4,442		—
Total long-term investments	$	15,030	$	9,386

Schedule of activity related to available-for-sale investments recorded in short-term and long-term investments


	April 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	6,807	$	29	$	—	$	6,836
U.S. government securities		42,730		41		(4)		42,767
Corporate bonds		8,495		—		(3)		8,492
Total held-to-maturity investments	$	58,032	$	70	$	(7)	$	58,095

Schedule of amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of available-for-sale investments

April 30, 2020, are as follows:


	Cost		Fair Value
Due within one year	$	47,457	$	47,507
Due after one year through five years		10,575		10,588
Total	$	58,032	$	58,095

Held to maturity securities

Investments

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


			Net
	Carrying		Unrealized
	Amount		Gains
Municipal securities	$	23,706	$	34
U.S. government securities		41,465		38
Corporate bonds		85,679		73
Certificate of deposits		1,017		5
Total held-to-maturity investments	$	151,867	$	150

The Company held no held-to maturity securities at April 30, 2020. The amortized cost, gross unrealized losses, and estimated fair value of the held-to-maturity securities as of April 30, 2019 are as follows (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	5,332	$	2	$	(1)	$	5,333
U.S. government securities		70,609		78		(52)		70,635
Corporate bonds		83,932		20		(5)		83,947
Total held-to-maturity investments	$	159,873	$	100	$	(58)	$	159,915

Schedule of amortized cost and fair value by contractual maturity


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	5,332	$	2	$	(1)	$	5,333
U.S. government securities		70,609		78		(52)		70,635
Corporate bonds		83,932		20		(5)		83,947
Total held-to-maturity investments	$	159,873	$	100	$	(58)	$	159,915

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2020	Apr. 30, 2019
Current assets:
Cash and cash equivalents	$ 255,142	$ 172,708
Held-to-maturity short-term investments		150,487
Available-for-sale short-term investments	47,507
Accounts receivable, net of allowance for doubtful accounts of $1,190 at April 30, 2020 and $1,041 at April 30, 2019	73,660	31,051
Unbilled receivables and retentions (inclusive of related party unbilled receivables of $15,779 at April 30, 2020 and $9,028 at April 30, 2019)	75,837	53,047
Inventories	45,535	54,056
Prepaid expenses and other current assets	6,246	7,418
Income taxes receivable		821
Total current assets	503,927	469,588
Held-to-maturity long-term investments		9,386
Available-for-sale long-term investments	15,030
Property and equipment, net	21,694	16,905
Operating lease right-of-use assets	8,793
Deferred income taxes	4,928	6,685
Intangibles, net	13,637	459
Goodwill	6,340
Other assets	10,605	5,821
Total assets	584,954	508,844
Current liabilities:
Accounts payable	19,859	15,972
Wages and related accruals	23,972	18,507
Customer advances	7,899	2,962
Current operating lease liabilities	3,380
Income taxes payable	1,065
Other current liabilities	10,778	7,425
Total current liabilities	66,953	44,866
Deferred rent		1,173
Non-current operating lease liabilities	6,833
Other non-current liabilities	250	150
Deferred tax liability		29
Liability for uncertain tax positions	1,017	51
Commitments and contingencies
Stockholders' equity:
Authorized shares-10,000,000; none issued or outstanding at April 30, 2020 and April 30, 2019
Issued and outstanding shares-24,063,639 shares at April 30, 2020 and 23,946,293 shares at April 30, 2019	2	2
Additional paid-in capital	181,481	176,216
Accumulated other comprehensive income	328	2
Retained earnings	328,090	286,351
Total AeroVironment, Inc. stockholders' equity	509,901	462,571
Noncontrolling interest		4
Total equity	509,901	462,575
Total liabilities and stockholders' equity	$ 584,954	$ 508,844

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Consolidated Statements of Operations
Related party revenue	$ 60,864	$ 55,407	$ 29,594
Tax expense	$ (76)	$ 2,444

Organization and Significant Accounting Policies - Long-Lived Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Long-Lived Assets
Impairment loss			$ 4,398,000	$ 255,000
Machinery and equipment \| Minimum
Long-Lived Assets
Estimated useful life		2 years
Machinery and equipment \| Maximum
Long-Lived Assets
Estimated useful life		7 years
Computer equipment and software \| Minimum
Long-Lived Assets
Estimated useful life		2 years
Computer equipment and software \| Maximum
Long-Lived Assets
Estimated useful life		5 years
Furniture and fixtures \| Minimum
Long-Lived Assets
Estimated useful life		3 years
Furniture and fixtures \| Maximum
Long-Lived Assets
Estimated useful life		7 years
UAS Quantix Solution
Long-Lived Assets
Impairment loss	$ 4,398,000

Investments in Companies Accounted for Using the Equity Method (Details)	12 Months Ended
	Apr. 30, 2020 USD ($)	Apr. 30, 2019 USD ($)	Apr. 30, 2018 USD ($)	Dec. 04, 2019 USD ($)	Dec. 04, 2019 JPY (¥)	May 11, 2019	May 10, 2019 USD ($)	May 10, 2019 JPY (¥)	Feb. 09, 2019 USD ($)	Feb. 09, 2019 JPY (¥)	Feb. 08, 2019	Jan. 29, 2019 USD ($)	Jan. 29, 2019 JPY (¥)	Apr. 17, 2018 USD ($)	Apr. 17, 2018 JPY (¥)	Dec. 27, 2017 USD ($)	Dec. 27, 2017 JPY (¥)
Equity Method Investments
Equity method investment loss, net of tax	$ (5,487,000)	$ (3,944,000)	$ (1,283,000)
Carrying value of investment	$ 4,442,000
SoftBank
Equity Method Investments
Ownership percentage	93.00%
Payments for purchase of interest \| ¥													¥ 209,500,000
HAPSMobile
Equity Method Investments
Ownership percentage	7.00%			7.00%	7.00%	5.00%	10.00%	10.00%	10.00%	10.00%	5.00%					5.00%	5.00%
Payments for purchase of interest				$ 4,982,000	¥ 540,050,000		$ 4,569,000	¥ 500,000,000				$ 1,926,000	¥ 209,500,000	$ 1,407,000	¥ 150,000,000	$ 1,860,000	¥ 210,000,000
HAPSMobile \| Equity method investment loss, net of tax
Equity Method Investments
Equity method investment loss, net of tax	$ 4,982,000	3,944,000	$ 1,283,000
HAPSMobile \| Other assets, long term
Equity Method Investments
Carrying value of investment	$ 10,455,000	$ 5,612,000
HAPSMobile \| SoftBank
Equity Method Investments
Payments for purchase of interest									$ 5,671,000	¥ 632,800,000

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Parent	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Non-controlling Interest	Total
Balance at Apr. 30, 2017	$ 383,075	$ 2	$ 162,150	$ 221,050	$ (127)	$ 239
Balance (in shares) at Apr. 30, 2017		23,630,419
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Apr. 30, 2017							$ 383,314
Increase (Decrease) in Stockholders' Equity
Net income (loss)							17,647
Net loss attributable to noncontrolling interest						(216)	216
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	17,863			17,863
Unrealized gain on investments	70				70		70
Foreign currency translation	36				36		36
Stock options exercised	2,705		2,705				2,705
Stock options exercised (in shares)		153,211
Restricted stock awards (in shares)		140,787
Restricted stock awards forfeited (in shares)		(6,834)
Tax withholding payment related to net share settlement of equity awards	(397)		(397)				(397)
Tax withholding payment related to net share settlement of equity awards (in shares)		(8,847)
Reclassification from share-based liability compensation to equity	384		384				384
Stock-based compensation	5,297		5,297				5,297
Balance at Apr. 30, 2018	409,033	$ 2	170,139	238,913	(21)	23
Balance (in shares) at Apr. 30, 2018		23,908,736
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Apr. 30, 2018							409,056
Increase (Decrease) in Stockholders' Equity
Net income (loss)							47,419
Net loss attributable to noncontrolling interest						(19)	19
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	47,438			47,438
Unrealized gain on investments	57				57		57
Foreign currency translation	(34)				(34)		(34)
Stock options exercised	71		71				71
Stock options exercised (in shares)		12,725
Restricted stock awards (in shares)		57,476
Restricted stock awards forfeited (in shares)		(18,023)
Tax withholding payment related to net share settlement of equity awards	(1,094)		(1,094)				(1,094)
Tax withholding payment related to net share settlement of equity awards (in shares)		(14,621)
Stock-based compensation	7,100		7,100				7,100
Balance at Apr. 30, 2019	462,571	$ 2	176,216	286,351	2	4	462,571
Balance (in shares) at Apr. 30, 2019		23,946,293
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Apr. 30, 2019							462,575
Increase (Decrease) in Stockholders' Equity
Net income (loss)							41,070
Net loss attributable to noncontrolling interest						$ (4)	4
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	41,074			41,074
Unrealized gain on investments	50				50		50
Foreign currency translation	276				276		276
Stock options exercised	100		100				100
Stock options exercised (in shares)		16,189
Restricted stock awards (in shares)		131,991
Restricted stock awards forfeited (in shares)		(12,541)
Tax withholding payment related to net share settlement of equity awards	(1,062)		(1,062)				(1,062)
Tax withholding payment related to net share settlement of equity awards (in shares)		(18,293)
Stock-based compensation	6,227		6,227				6,227
Balance at Apr. 30, 2020	509,901	$ 2	$ 181,481	328,090	$ 328		509,901
Balance (in shares) at Apr. 30, 2020		24,063,639
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Apr. 30, 2020							509,901
Increase (Decrease) in Stockholders' Equity
Adoption of ASU \| ASU 2018-09	$ 665			$ 665			$ 665

Fair Value Measurements - Pulse purchase agreement (Details) - Pulse Aerospace, LLC - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
	Jun. 10, 2018	Jan. 25, 2020	Apr. 30, 2020
Fair Value Measurement
Contingent consideration paid	$ 1,703		$ 2,500
Contingent consideration that will not be paid			2,500
Maximum
Fair Value Measurement
Total cash consideration		$ 5,000
SG&A
Fair Value Measurement
Business acquisitions gain		$ 832	$ 832

Leases (Details)	12 Months Ended
Leases (Details)	Apr. 30, 2020
Leases
Option to extend period (in years)	10 years
Option to terminate period (in years)	2 years
Minimum
Leases
Remaining lease terms (in years)	1 year
Maximum
Leases
Remaining lease terms (in years)	6 years
Option to extend period (in years)	10 years

Organization and Significant Accounting Policies - Pulse Aerospace, LLC (Details)	Jun. 10, 2019
Organization and Significant Accounting Policies
Ownership interest acquired	100.00%

Inventories, net

12 Months Ended

Apr. 30, 2020

Inventories, net

Inventories, net

5. Inventories, net

Inventories consist of the following (in thousands):


	April 30,
	2020		2019
Raw materials	$	15,988	$	16,792
Work in process		10,340		19,162
Finished goods		29,439		25,926
Inventories, gross		55,767		61,880
Reserve for inventory excess and obsolescence		(10,232)		(7,824)
Inventories, net	$	45,535	$	54,056

During the fiscal year ended April 30, 2020, the Company recorded inventory reserve charges of approximately $2,600,000 to impair the remaining net book value of the Company’s Quantix commercial UAS solution. For the fiscal

years ended April 30, 2020, 2019 and 2018, the Company recorded inventory reserve charges of $5,377,000, $5,054,000 and $2,758,000, respectively.

Fair Value Measurements - (Details) - Recurring basis $ in Thousands	Apr. 30, 2020 USD ($)
Fair Value Measurement
Available for sale securities	$ 58,095
Total	58,095
Significant other observable inputs (Level 2)
Fair Value Measurement
Available for sale securities	58,095
Total	$ 58,095

Stock-Based Compensation Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Shares
Options granted (in shares)	0	0	0
Stock options
Intrinsic value of options
Intrinsic value of options exercised	$ 833	$ 371	$ 2,407
Intrinsic value of options outstanding	11,779	15,569
Intrinsic value of exercisable options	$ 11,242	$ 13,950
Restated 2006 Plan \| Stock options
Shares
Outstanding at the beginning of the year (in shares)	337,026	339,026	446,624
Options exercised (in shares)	(3,000)	(2,000)	(107,598)
Outstanding at the end of the year (in shares)	334,026	337,026	339,026
Options exercisable (in shares)	318,026
Weighted Average Exercise Price
Outstanding at the beginning of the year (in dollars per share)	$ 25.25	$ 25.29	$ 24.93
Options exercised (in dollars per share)	31.15	32.19	23.80
Outstanding at the end of the year (in dollars per share)	25.19	$ 25.25	$ 25.29
Options exercisable (in dollars per share)	$ 25.12
1992 Plan \| Stock options
Shares
Outstanding at the beginning of the year (in shares)	14,302	18,302	43,415
Options exercised (in shares)	(13,189)	(4,000)	(25,113)
Outstanding at the end of the year (in shares)	1,113	14,302	18,302
Options exercisable (in shares)	1,113
Weighted Average Exercise Price
Outstanding at the beginning of the year (in dollars per share)	$ 0.59	$ 0.59	$ 0.59
Options exercised (in dollars per share)	0.59	0.59	0.59
Outstanding at the end of the year (in dollars per share)	0.59	$ 0.59	$ 0.59
Options exercisable (in dollars per share)	$ 0.59

Income Taxes (Details) - USD ($)	12 Months Ended
Income Taxes (Details) - USD ($)	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Income Taxes
Domestic	$ 52,730,000	$ 50,644,000	$ 32,651,000
Foreign	(60,000)	(166,000)	(34,000)
Income from continuing operations before income taxes	52,670,000	50,478,000	32,617,000
Equity method investment loss, net of tax	(5,487,000)	(3,944,000)	(1,283,000)
Income (loss) before income taxes	47,183,000	$ 46,534,000	$ 31,334,000
Deferred tax liabilities for income taxes on undistributed earnings	$ 0

Leases - Maturities - ASC 842 (Details) $ in Thousands	Apr. 30, 2020 USD ($)
Maturities of operating lease liabilities:
2021	$ 4,222
2022	3,910
2023	2,171
2024	1,055
2025	62
Total lease payments	11,420
Less: imputed interest	(1,207)
Total present value of operating lease liabilities	$ 10,213

Organization and Significant Accounting Policies - Intangible Assets (Details)	12 Months Ended
	Apr. 30, 2020
Technology
Intangibles
Weighted average amortization period	6 years
Licenses
Intangibles
Weighted average amortization period	3 years
In process research and development
Intangibles
Weighted average amortization period	3 years
Minimum \| Customer relationships
Intangibles
Weighted average amortization period	3 years
Maximum \| Customer relationships
Intangibles
Weighted average amortization period	5 years

Intangibles - Intangibles included in other assets on the balance sheet (Details) - USD ($)	3 Months Ended	12 Months Ended
	Oct. 31, 2017	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Intangibles
Intangibles, net		$ 13,637,000	$ 459,000
Amortization expense		$ 2,822,000	$ 357,000	$ 296,000
Altoy
Intangibles
Impairment loss	$ 899,000
Weighted average
Intangibles
Weighted average amortization period		4 years	1 year
Technology
Intangibles
Weighted average amortization period		6 years
Licenses
Intangibles
Weighted average amortization period		3 years
In process research and development
Intangibles
Weighted average amortization period		3 years
Other assets, long term
Intangibles
Intangibles, gross		$ 17,770,000	$ 1,770,000
Less accumulated amortization		(4,133,000)	(1,311,000)
Intangibles, net		13,637,000	459,000
Other assets, long term \| Technology
Intangibles
Intangibles, gross		14,950,000
Other assets, long term \| Licenses
Intangibles
Intangibles, gross		1,006,000	1,006,000
Other assets, long term \| Customer relationships
Intangibles
Intangibles, gross		873,000	733,000
Other assets, long term \| In process research and development
Intangibles
Intangibles, gross		550,000
Other assets, long term \| Non-compete agreements
Intangibles
Intangibles, gross		320,000
Other assets, long term \| Trademarks and tradenames
Intangibles
Intangibles, gross		68,000	28,000
Other assets, long term \| Other
Intangibles
Intangibles, gross		$ 3,000	$ 3,000

Income Taxes

12 Months Ended

Apr. 30, 2020

Income Taxes

Income Taxes

14. Income Taxes

The components of income before income taxes are as follows (in thousands):


	Year Ended April 30,
	2020		2019		2018
Domestic	$	52,730	$	50,644	$	32,651
Foreign		(60)		(166)		(34)
Income from continuing operations before income taxes		52,670		50,478		32,617

Equity method investment loss		(5,487)		(3,944)		(1,283)
Total income from continuing operations before income taxes	$	47,183	$	46,534	$	31,334

The Company expects any foreign earnings to be reinvested in such foreign jurisdictions and, therefore, no deferred tax liabilities for U.S. income taxes on undistributed earnings are recorded. The foreign subsidiaries do not have any undistributed earnings.

A reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense (benefit) is as follows:


	Year Ended April 30,
	2020		2019		2018
U.S. federal statutory income tax rate	21.0	%	21.0	%	30.4	%
State and local income taxes, net of federal benefit	(2.1)		(2.2)		(2.2)
R&D and other tax credits	(6.8)		(8.1)		(7.0)
Valuation allowance	3.4		3.7		4.9
Foreign rate differential	—		—		0.1
Return to provision adjustments	0.1		(0.3)		(0.1)
Permanent items	0.7		0.8		(2.7)
Foreign derived intangible income	(3.9)		(3.7)		—
Excess benefit of equity awards	(1.5)		(3.1)		(4.4)
Tax Act	—		—		10.4
Other	0.2		1.1		0.6
Effective income tax rate	11.1	%	9.2	%	30.0	%

The components of the provision (benefit) for income taxes are as follows (in thousands):


	Year Ended April 30,
	2020		2019		2018
Current:
Federal	$	3,005	$	1,953	$	6,010
State		390		228		900
Foreign		—		—		—
		3,395		2,181		6,910
Deferred:
Federal		2,063		1,945		3,272
State		421		551		(330)
Foreign		(31)		(36)		(52)
		2,453		2,460		2,890
Total income tax expense	$	5,848	$	4,641	$	9,800

Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands):


	April 30,
	2020		2019
Deferred income tax assets:
Accrued expenses	$	3,337	$	3,559
Stock based compensation		2,259		1,647
Allowances, reserves, and other		1,784		1,579
Outside basis difference		2,264		1,150
Unrealized loss on securities		9		—
Net operating loss and credit carry-forwards		12,832		13,208
Intangibles basis		605		125
Lease liability		2,282		—
Total deferred income tax assets		25,372		21,268
Deferred income tax liabilities:
Fixed asset basis		(1,218)		(425)
Revenue recognition		(3,112)		(2,909)
Right-of-use asset		(1,965)		—
Total deferred income tax liabilities		(6,295)		(3,334)
Valuation allowance		(14,149)		(11,278)
Net deferred tax assets	$	4,928	$	6,656

At April 30, 2020 and 2019 the Company recorded a valuation allowance of $14,149,000 and $11,278,000, respectively, against state R&D credits as the Company is currently generating more tax credits than it will utilize in future years and against the outside basis difference in an equity method investee. The valuation allowance increased by $2,871,000 and $2,710,000 for April 30, 2020 and April 30, 2019, respectively.

At April 30, 2020 the Company had state credit carryforwards of $26,694,000 that do not expire and federal tax credit carryforwards of $2,729,000 that expire in 2040.

At April 30, 2020, the Company had a state and foreign net operating loss carryforward of approximately $10,000 and $660,000, respectively. The state net operating loss carryforwards carry forward indefinitely. $320,000 of the foreign loss carryforwards expire in fiscal 2021.

At April 30, 2020 and 2019, the Company had approximately $14,347,000 and $12,593,000, respectively, of unrecognized tax benefits all of which would impact the Company’s effective tax rate if recognized. The Company estimates that $53,600 of its unrecognized tax benefits will decrease in the next twelve months due to statute of limitation expiration.

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended April 30, 2020 and 2019 (in thousands):


	April 30,
	2020		2019
Balance as of May 1	$	12,593	$	11,170
Increases related to prior year tax positions		62		216
Decreases related to prior year tax positions		—		—
Increases related to current year tax positions		1,971		1,756
Decreases related to lapsing of statute of limitations		(279)		(549)
Balance as of April 30	$	14,347	$	12,593

The Company records interest and penalties on uncertain tax positions to income tax expense. As of April 30, 2020 and 2019, the Company had accrued approximately $21,000 and $18,000, respectively, of interest and penalties related to uncertain tax positions. The Company is currently under audit by various state jurisdictions. The 2016 to 2018 tax years remain open to examination by the IRS for federal income taxes. The tax years 2009 to 2011 and 2015 to 2018 remain open for major state taxing jurisdictions.

During the fiscal year ended April 30, 2020, the Company recorded a reversal of a $279,000 reserve for uncertain tax positions due to the lapse of prior year statue.

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 expected 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 year ended April 30, 2019. The Company has finalized its accounting for the impact of the Tax Act during and reached the following conclusions on the previous provisional estimates.

The Company has concluded it will be eligible to claim the FDII deduction and has reflected a rate benefit in the provision for income taxes. The Company expects the IRS will be issuing additional guidance that could 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.

Income Taxes (Tables)

12 Months Ended

Apr. 30, 2020

Income Taxes

Schedule of components of income before income taxes

The components of income before income taxes are as follows (in thousands):


	Year Ended April 30,
	2020		2019		2018
Domestic	$	52,730	$	50,644	$	32,651
Foreign		(60)		(166)		(34)
Income from continuing operations before income taxes		52,670		50,478		32,617

Equity method investment loss		(5,487)		(3,944)		(1,283)
Total income from continuing operations before income taxes	$	47,183	$	46,534	$	31,334

Schedule of reconciliation of income tax expense computed using the U.S. federal statutory rates to actual income tax expense (benefit)


	Year Ended April 30,
	2020		2019		2018
U.S. federal statutory income tax rate	21.0	%	21.0	%	30.4	%
State and local income taxes, net of federal benefit	(2.1)		(2.2)		(2.2)
R&D and other tax credits	(6.8)		(8.1)		(7.0)
Valuation allowance	3.4		3.7		4.9
Foreign rate differential	—		—		0.1
Return to provision adjustments	0.1		(0.3)		(0.1)
Permanent items	0.7		0.8		(2.7)
Foreign derived intangible income	(3.9)		(3.7)		—
Excess benefit of equity awards	(1.5)		(3.1)		(4.4)
Tax Act	—		—		10.4
Other	0.2		1.1		0.6
Effective income tax rate	11.1	%	9.2	%	30.0	%

Schedule of components of the provision (benefit) for income taxes

The components of the provision (benefit) for income taxes are as follows (in thousands):


	Year Ended April 30,
	2020		2019		2018
Current:
Federal	$	3,005	$	1,953	$	6,010
State		390		228		900
Foreign		—		—		—
		3,395		2,181		6,910
Deferred:
Federal		2,063		1,945		3,272
State		421		551		(330)
Foreign		(31)		(36)		(52)
		2,453		2,460		2,890
Total income tax expense	$	5,848	$	4,641	$	9,800

Schedule of components of the Company's deferred income tax assets and liabilities

Significant components of the Company’s deferred income tax assets and liabilities are as follows (in thousands):


	April 30,
	2020		2019
Deferred income tax assets:
Accrued expenses	$	3,337	$	3,559
Stock based compensation		2,259		1,647
Allowances, reserves, and other		1,784		1,579
Outside basis difference		2,264		1,150
Unrealized loss on securities		9		—
Net operating loss and credit carry-forwards		12,832		13,208
Intangibles basis		605		125
Lease liability		2,282		—
Total deferred income tax assets		25,372		21,268
Deferred income tax liabilities:
Fixed asset basis		(1,218)		(425)
Revenue recognition		(3,112)		(2,909)
Right-of-use asset		(1,965)		—
Total deferred income tax liabilities		(6,295)		(3,334)
Valuation allowance		(14,149)		(11,278)
Net deferred tax assets	$	4,928	$	6,656

Summary of activity related to gross unrecognized tax benefits

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits for the years ended April 30, 2020 and 2019 (in thousands):


	April 30,
	2020		2019
Balance as of May 1	$	12,593	$	11,170
Increases related to prior year tax positions		62		216
Decreases related to prior year tax positions		—		—
Increases related to current year tax positions		1,971		1,756
Decreases related to lapsing of statute of limitations		(279)		(549)
Balance as of April 30	$	14,347	$	12,593

Fair Value Measurements - Reconciliation (Details) - Significant unobservable inputs (Level 3) $ in Thousands	12 Months Ended
	Apr. 30, 2020 USD ($)
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Business acquisition	$ 1,703
Settlements	(2,500)
Cost of sales
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Included in earnings	1,147
SG&A
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Included in earnings	(703)
Reseach and development
Reconciliation between beginning and ending balances of items measured at fair value on recurring basis
Included in earnings	$ 353

Long-Term Incentive Awards

12 Months Ended

Apr. 30, 2020

Long-Term Incentive Awards.

Long-Term Incentive Awards

13. Long-Term Incentive Awards

During the three months ended July 27, 2019, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2020 LTIP”). Awards under the Fiscal 2020 LTIP consist of: (i) time-based restricted stock awards, which vest in equal tranches in July 2020, July 2021 and

July 2022, 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, 2022. 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. During the fiscal year ended April 30, 2020, the Company recorded $649,000 of compensation expense related to the Fiscal 2020 LTIP. At April 30, 2020, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2020 LTIP is $4,263,000.

During the three months ended July 28, 2018, the Company granted awards under 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) 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. During the fiscal years ended April 30, 2020 and 2019, the Company recorded $386,000 and $572,000 of compensation expense related to the Fiscal 2019 LTIP, respectively. At April 30, 2020, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2019 LTIP is $2,478,000.

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. During the fiscal years ended April 30, 2020, 2019 and 2018, the Company recorded $193,000, $588,000 and $269,000 of compensation expense related to the Fiscal 2018 LTIP, respectively. During the first quarter of fiscal 2021, the Company expects to issue a total of 27,356 fully-vested shares of common stock to settle the Fiscal 2018 LTIP.

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 vested in equal tranches in July 2017, July 2018 and July 2019, and (ii) PRSUs, which vested based on the Company’s achievement of revenue and operating income targets for the three-year period ending April 30, 2019. During the three months ended July 27, 2019, the Company issued a total of 14,814 fully-vested shares of common stock to settle the PRSUs in the Fiscal 2017 LTIP. No compensation expense was recorded during fiscal year ended April 30, 2020 for the Fiscal 2017 LTIP.

At April 30, 2020 and 2019, the Company recorded cumulative stock-based compensation expense from these long-term incentive awards of $2,657,000 and $1,889,000, 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.

Organization and Significant Accounting Policies - Concentration of Credit Risk (Details)	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Customer concentration \| Sales Revenue \| US Government Agencies
Concentration of Credit Risk
Concentration Risk, Percentage	61.00%	58.00%	58.00%
Customer concentration \| Sales Revenue \| US Army
Concentration of Credit Risk
Concentration Risk, Percentage	32.00%	28.00%	19.00%
Credit concentration \| Accounts receivable balances \| US Government Agencies
Concentration of Credit Risk
Concentration Risk, Percentage	62.00%	26.00%

Organization and Significant Accounting Policies - Performance Obligations (Details) $ in Thousands	Apr. 30, 2020 USD ($)
Organization and Significant Accounting Policies
Remaining performance obligations	$ 208,063
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-30
Organization and Significant Accounting Policies
Remaining performance obligations (as a percentage)	96.00%
Performance Obligations
Year of performance obligations	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-30
Organization and Significant Accounting Policies
Remaining performance obligations (as a percentage)	4.00%
Performance Obligations
Year of performance obligations	1 year

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Accumulated other comprehensive loss
Balance, net of $0 deferred taxes, as of April 30, 2019	$ 2
Balance, net of $0 deferred taxes, as of January 25, 2020	328	$ 2
Unrealized gain, tax portion	14	51	$ 25
Available-For-Sale Securities.
Accumulated other comprehensive loss
Unrealized gains, net of $51 of taxes	50
Balance, net of $0 deferred taxes, as of January 25, 2020	50
Foreign Currency Translation Adjustments
Accumulated other comprehensive loss
Balance, net of $0 deferred taxes, as of April 30, 2019	2
Change in foreign currency translation adjustments, net of $0 taxes	276
Balance, net of $0 deferred taxes, as of January 25, 2020	278	2
Accumulated Other Comprehensive Income
Accumulated other comprehensive loss
Balance, net of $0 deferred taxes, as of April 30, 2019	2
Change in foreign currency translation adjustments, net of $0 taxes	276
Unrealized gains, net of $51 of taxes	50
Balance, net of $0 deferred taxes, as of January 25, 2020	$ 328	$ 2

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References + Details

Organization and Significant Accounting Policies - Contract Estimates (Details)	12 Months Ended
	Apr. 30, 2020 USD ($) contract	Apr. 30, 2018 USD ($)
Material adjustment to any one contract	$ 0
Number of active contracts \| contract	1
Revision of estimate of total costs required to complete the contracts \| Cumulative catch-up adjustment
Amount of revised aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods		$ 1,255,000
Revision of estimate of total costs required to complete the contracts \| Cumulative catch-up adjustment \| Design and development agreement
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods	$ 1,099,000
Revision of estimate of total costs required to complete the contracts \| Cumulative catch-up adjustment \| TMS contract
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods	$ (1,403,000)

Business Acquisitions (Tables)

12 Months Ended

Apr. 30, 2020

Business Acquisitions

Schedule of the fair value of the assets acquired and liabilities assumed at the acquisition date


	June 10,
	2019
Technology	$	14,950
Goodwill		6,340
In-process R&D		550
Inventory		334
Non-compete agreements		320
Other assets, net of liabilities assumed		(614)
Total net identified assets acquired	$	21,880

Fair value of consideration:
Cash	$	18,677
Holdback		1,250
Retention		250
Contingent consideration		1,703
Total	$	21,880

Schedule of unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred


	Year Ended
	April 30,		April 30,
	2020		2019
Revenue	$	367,523	$	316,878
Net income attributable to AeroVironment, Inc.	$	41,481	$	43,204

Investments - Held-To-Maturity Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Investments
Carrying Amount	$ 151,867
Net Unrealized Gains	150
Held To Maturity Securities
Amortized Cost	58,032
Total	58,095
Municipal securities
Investments
Carrying Amount	23,706
Net Unrealized Gains	34
U.S. government securities
Investments
Carrying Amount	41,465
Net Unrealized Gains	38
Corporate bonds
Investments
Carrying Amount	85,679
Net Unrealized Gains	73
Certificates of deposit
Investments
Carrying Amount	1,017
Net Unrealized Gains	5
Held to maturity securities
Held To Maturity Securities
Amortized Cost	159,873
Gross Unrealized Gains	100
Gross Unrealized Losses	(58)
Total	159,915
Held to maturity securities \| Municipal securities
Held To Maturity Securities
Amortized Cost	5,332
Gross Unrealized Gains	2
Gross Unrealized Losses	(1)
Total	5,333
Held to maturity securities \| U.S. government securities
Held To Maturity Securities
Amortized Cost	70,609
Gross Unrealized Gains	78
Gross Unrealized Losses	(52)
Total	70,635
Held to maturity securities \| Corporate bonds
Held To Maturity Securities
Amortized Cost	83,932
Gross Unrealized Gains	20
Gross Unrealized Losses	(5)
Total	83,947
Available-for-sale securities
Held To Maturity Securities
Amortized Cost	58,032
Gross Unrealized Gains	70
Gross Unrealized Losses	(7)
Total	58,095	$ 0
Available-for-sale securities \| Municipal securities
Held To Maturity Securities
Amortized Cost	6,807
Gross Unrealized Gains	29
Total	6,836
Available-for-sale securities \| U.S. government securities
Held To Maturity Securities
Amortized Cost	42,730
Gross Unrealized Gains	41
Gross Unrealized Losses	(4)
Total	42,767
Available-for-sale securities \| Corporate bonds
Held To Maturity Securities
Amortized Cost	8,495
Gross Unrealized Losses	(3)
Total	$ 8,492

Property and Equipment, net (Details) - USD ($)	3 Months Ended	12 Months Ended
Property and Equipment, net (Details) - USD ($)	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Property and equipment, net
Property and equipment, gross	$ 92,368,000	$ 101,687,000	$ 92,368,000
Less accumulated depreciation and amortization	(75,463,000)	(79,993,000)	(75,463,000)
Property and equipment, net	16,905,000	21,694,000	16,905,000
Depreciation expense		7,066,000	7,311,000	$ 5,676,000
Impairment loss			4,398,000	$ 255,000
Leasehold improvements
Property and equipment, net
Property and equipment, gross	12,324,000	16,387,000	12,324,000
Machinery and equipment
Property and equipment, net
Property and equipment, gross	40,432,000	46,519,000	40,432,000
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	2,145,000	3,031,000	2,145,000
Computer equipment and software
Property and equipment, net
Property and equipment, gross	35,056,000	33,242,000	35,056,000
Construction in process
Property and equipment, net
Property and equipment, gross	2,411,000	$ 2,508,000	$ 2,411,000
UAS Quantix Solution
Property and equipment, net
Impairment loss	$ 4,398,000

Investments in Companies Accounted for Using the Equity Method

12 Months Ended

Apr. 30, 2020

Investments in Companies Accounted for Using the Equity Method

Investments in Companies Accounted for Using the Equity Method

8. Investments in Companies Accounted for Using the Equity Method

In December of 2017, the Company and SoftBank formed a joint venture, HAPSMobile, which is a Japanese corporation. As of April 30, 2020, the Company’s ownership stake in HAPSMobile was approximately 7%, with the remaining 93% held by SoftBank. In connection with the formation of the joint venture on December 27, 2017, the Company initially purchased shares of HAPSMobile representing a 5% ownership interest in exchange for an investment of 210,000,000 yen ($1,860,000). The Company subsequently purchased additional shares of HAPSMobile in order to maintain a 5% ownership stake in the joint venture. The first such purchase occurred on April 17, 2018, at which time the Company invested 150,000,000 yen ($1,407,000) for the purchase of additional shares of HAPSMobile. On January 29, 2019, the Company invested an additional 209,500,000 yen ($1,926,000) to maintain its 5% ownership stake. On

February 9, 2019, the Company elected to purchase 632,800,000 yen ($5,671,000) of additional shares of HAPSMobile to increase the Company’s ownership in the joint venture from 5% to 10%, and on May 10, 2019, the Company purchased 500,000,000 yen ($4,569,000) of additional shares of HAPSMobile to maintain its 10% ownership stake. The Company’s ownership percentage was subsequently diluted from 10% to approximately 5%. On December 4, 2019, the Company purchased 540,050,000 yen ($4,982,000) of additional shares of HAPSMobile to increase its ownership stake to approximately 7%.

As the Company has the ability to exercise significant influence over the operating and financial policies of HAPSMobile pursuant to the applicable Joint Venture Agreement and related organizational documents, the Company’s investment is accounted for as an equity method investment. At April 30, 2020, 2019 and 2018, the Company recorded its ownership percentage of the net loss of HAPSMobile, or $4,982,000, $3,944,000 and $1,283,000, respectively, in equity method investment loss, net of tax in the consolidated statements of income. At April 30, 2020 and 2019, the carrying value of the investment in HAPSMobile of $10,455,000 and $5,612,000, respectively, was recorded in other assets, long-term.

Investment in Limited Partnership Fund

In July 2019, the Company made its initial capital contribution to a limited partnership fund focusing on highly relevant technologies and start-up companies serving defense and industrial markets. Under the terms of the limited partnership agreement, the Company has committed to make additional capital contributions of $5.0 million to the fund. The Company accounts for investments in limited partnerships as equity method investments as the Company is deemed to have influence when it holds more than a minor interest. At April 30, 2020, the Company recorded its ownership percentage of the net loss of the limited partnership, or $394,000, in equity method investment loss, net of deferred taxes of $111,000 in the consolidated statements of income. At April 30, 2020, the carrying value of the investment in the limited partnership of $4,442,000, was recorded in available-for-sale long-term investments.

Summarized financial information of the equity method investments are as follows:


	April 30,
	2020		2019
	(In thousands)
Current assets	$	67,387	$	31,746
Noncurrent assets		170,602		—
Current liabilities		72,505		11,757

	Year Ended April 30,
	2020		2019		2018
	(In thousands)
Revenues	$	25	$	—	$	—
Gross loss		(1,331)		—		—
Realized and unrealized losses on investments		(7,028)		—		—
Net loss		(85,818)		(63,107)		(25,666)

Leases - Maturities - ASC 840 (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2019	Apr. 30, 2018
Maturities of operating lease liabilities:
2020	$ 5,298
2021	3,527
2022	2,723
2023	1,554
2024	953
Total lease payments	14,055
Rental expense under operating leases	$ 4,609	$ 4,011

Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Apr. 30, 2020

Quarterly Results of Operations (Unaudited)

Schedule of selected unaudited consolidated financial data


	Three Months Ended
	July 27, 2019		October 26, 2019		January 25, 2020		April 30, 2020
	(In thousands except per share data)
Year ended April 30, 2020
Revenue	$	86,911	$	83,271	$	61,891	$	135,223
Gross margin	$	41,272	$	35,166	$	23,496	$	53,168
Net income attributable to AeroVironment, Inc. from continuing operations	$	17,110	$	7,501	$	(1,008)	$	17,736
Net income per share attributable to AeroVironment, Inc. from continuing operations—basic(3)	$	0.72	$	0.32	$	(0.04)	$	0.74
Net income per share attributable to AeroVironment, Inc. from continuing operations—diluted(3)	$	0.71	$	0.31	$	(0.04)	$	0.73


	Three Months Ended
	July 30,			October 29,		January 28,		April 30,
	2018			2018		2019		2019
	(In thousands except per share data)
Year ended April 30, 2019
Revenue	$	78,043		$	72,979	$	75,322	$	87,930
Gross margin	$	32,589		$	28,399	$	30,392	$	37,023
Net (loss) income attributable to AeroVironment, Inc. from continuing operations	$	20,337	(1)	$	7,047	$	8,431	$	6,097	(2)
Net (loss) income per share attributable to AeroVironment, Inc. from continuing operations—basic(3)	$	0.86	(1)	$	0.30	$	0.35	$	0.26
Net (loss) income per share attributable to AeroVironment, Inc. from continuing operations—diluted(3)	$	0.85	(1)	$	0.29	$	0.35	$	0.26

(1)	Includes a one-time gain from a litigation settlement of $0.26 per basic and diluted share from continuing operations attributable to AeroVironment recorded to “Other income (expense), net” in the consolidated statement of operations.

(2)	Includes an impairment loss of $4.4 million related to the long-lived assets of the Company’s commercial UAS Quantix solution, recorded to selling, general and administrative expense in the consolidated statement of operations.

(3)	Earnings per share is computed independently for each of the quarters presented. The sum of the quarterly earnings per share may not equal the total earnings per share computed for the year due to rounding.

Stock-Based Compensation Other (Details)	12 Months Ended
Stock-Based Compensation Other (Details)	Apr. 30, 2020 $ / shares shares
Stock-Based Compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 0.59
Range of Exercise Price, high end of range (in dollars per share)	$ 31.27
Options Outstanding
Number of Options (in shares) \| shares	335,139
Weighted Average Remaining Contractual Life In Years	3 years 6 months
Weighted Average Exercise Price (in dollars per share)	$ 25.11
Options Exercisable
Number of Options Exercisable (in shares) \| shares	319,139
Weighted Average Exercise Price (in dollars per share)	$ 25.03
Weighted Average Remaining Contractual Life	3 years 5 months 1 day
0.59 - 19.16
Stock-Based Compensation
Range of Exercise Price, low end of range (in dollars per share)	$ 0.59
Range of Exercise Price, high end of range (in dollars per share)	$ 19.16
Options Outstanding
Number of Options (in shares) \| shares	55,113
Weighted Average Remaining Contractual Life In Years	2 years 11 months 4 days
Weighted Average Exercise Price (in dollars per share)	$ 17.90
Options Exercisable
Number of Options Exercisable (in shares) \| shares	55,113
Weighted Average Exercise Price (in dollars per share)	$ 17.90
19.17 - 26.24
Stock-Based Compensation
Range of Exercise Price, low end of range (in dollars per share)	19.17
Range of Exercise Price, high end of range (in dollars per share)	$ 26.24
Options Outstanding
Number of Options (in shares) \| shares	58,500
Weighted Average Remaining Contractual Life In Years	2 years 10 months 9 days
Weighted Average Exercise Price (in dollars per share)	$ 20.54
Options Exercisable
Number of Options Exercisable (in shares) \| shares	58,500
Weighted Average Exercise Price (in dollars per share)	$ 20.54
26.25 - 26.99
Stock-Based Compensation
Range of Exercise Price, low end of range (in dollars per share)	26.25
Range of Exercise Price, high end of range (in dollars per share)	$ 26.99
Options Outstanding
Number of Options (in shares) \| shares	80,000
Weighted Average Remaining Contractual Life In Years	5 years 1 month 24 days
Weighted Average Exercise Price (in dollars per share)	$ 26.70
Options Exercisable
Number of Options Exercisable (in shares) \| shares	64,000
Weighted Average Exercise Price (in dollars per share)	$ 26.70
27.00 - 27.99
Stock-Based Compensation
Range of Exercise Price, low end of range (in dollars per share)	27.00
Range of Exercise Price, high end of range (in dollars per share)	$ 27.99
Options Outstanding
Number of Options (in shares) \| shares	50,000
Weighted Average Remaining Contractual Life In Years	3 years 6 months 21 days
Weighted Average Exercise Price (in dollars per share)	$ 27.27
Options Exercisable
Number of Options Exercisable (in shares) \| shares	50,000
Weighted Average Exercise Price (in dollars per share)	$ 27.27
28.00 - 29.26
Stock-Based Compensation
Range of Exercise Price, low end of range (in dollars per share)	28.00
Range of Exercise Price, high end of range (in dollars per share)	$ 29.26
Options Outstanding
Number of Options (in shares) \| shares	50,000
Weighted Average Remaining Contractual Life In Years	1 year 9 months 29 days
Weighted Average Exercise Price (in dollars per share)	$ 28.72
Options Exercisable
Number of Options Exercisable (in shares) \| shares	50,000
Weighted Average Exercise Price (in dollars per share)	$ 28.72
29.27 - 31.27
Stock-Based Compensation
Range of Exercise Price, low end of range (in dollars per share)	29.27
Range of Exercise Price, high end of range (in dollars per share)	$ 31.27
Options Outstanding
Number of Options (in shares) \| shares	41,526
Weighted Average Remaining Contractual Life In Years	3 years 11 months 8 days
Weighted Average Exercise Price (in dollars per share)	$ 31.13
Options Exercisable
Number of Options Exercisable (in shares) \| shares	41,526
Weighted Average Exercise Price (in dollars per share)	$ 31.13

Income Taxes - Tax Cuts and Jobs Act (Details) - USD ($)		4 Months Ended	9 Months Ended	12 Months Ended
	Dec. 22, 2017	Apr. 30, 2018	Jan. 31, 2018	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Income Taxes
U.S. federal statutory income tax rate (as a percent)	35.00%	21.00%	35.00%	21.00%	21.00%	30.40%
Deferred tax expense						$ 3,300,000

Investments

12 Months Ended

Apr. 30, 2020

Investments

Investments

3. Investments

Investments consist of the following:


	April 30,
	2020		2019
	(In thousands)
Short-term investments:
Held-to-maturity securities:
Municipal securities	$	—	$	5,332
U.S. government securities		—		63,205
Corporate bonds		—		81,950
Total held-to-maturity investments		—		150,487
Available-for-sale securities:
Municipal securities		5,244		—
U.S. government securities		33,771		—
Corporate bonds		8,492		—
Total available-for-sale investments		47,507		—
Total short-term investments	$	47,507	$	150,487
Long-term investments:
Held-to-maturity securities:
U.S. government securities	$	—	$	7,404
Corporate bonds		—		1,982
Total held-to-maturity investments		—		9,386
Available-for-sale securities:
Municipal securities		1,592		—
U.S. government securities		8,996		—
Total available-for-sale investments		10,588		—
Equity method investments
Investment in limited partnership fund		4,442		—
Total equity method investments		4,442		—
Total long-term investments	$	15,030	$	9,386

Held-To-Maturity Securities

As of April 30, 2019, the balance of held-to-maturity securities consisted of state and local government municipal securities, U.S. government securities, U.S. government agency securities, and corporate bonds. Interest earned from these investments is recorded in interest income. During the three months ended April 30, 2020, in consideration of the impact of the COVID-19 pandemic, the Company made the strategic decision to sell a significant portion of its corporate and municipal held-to-maturity securities and invested the proceeds in cash and cash equivalents and U.S. government and U.S. government agency securities. As such the investments were transferred from held-to-maturity classification to available-for-sale classification. Prior to the three months ended April 30, 2020, the Company had the intent and ability to hold its investments classified as held-to-maturity to their maturity dates. The net carrying

amount and net unrealized gains of held to maturity securities transferred to available-for-sale securities or cash equivalents at the time of transfer are as follows (in thousands):


			Net
	Carrying		Unrealized
	Amount		Gains
Municipal securities	$	23,706	$	34
U.S. government securities		41,465		38
Corporate bonds		85,679		73
Certificate of deposits		1,017		5
Total held-to-maturity investments	$	151,867	$	150


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	5,332	$	2	$	(1)	$	5,333
U.S. government securities		70,609		78		(52)		70,635
Corporate bonds		83,932		20		(5)		83,947
Total held-to-maturity investments	$	159,873	$	100	$	(58)	$	159,915

Available-For-Sale Securities

As of April 30, 2020, the balance of available-for-sale securities consisted of state and local government municipal securities, U.S. government securities, U.S. government agency securities, and investment grade corporate bonds. Interest earned from these investments is recorded in interest income. Realized gains on sales of these investments on the basis of specific identification is recorded in interest income.

The Company held no available-for-sale securities at April 30, 2019. The following table is a summary of the activity related to the available-for-sale investments recorded in short-term and long-term investments (in thousands):


	April 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Municipal securities	$	6,807	$	29	$	—	$	6,836
U.S. government securities		42,730		41		(4)		42,767
Corporate bonds		8,495		—		(3)		8,492
Total held-to-maturity investments	$	58,032	$	70	$	(7)	$	58,095

The amortized cost and fair value of the Company’s available-for-sale securities by contractual maturity at

April 30, 2020, are as follows:


	Cost		Fair Value
Due within one year	$	47,457	$	47,507
Due after one year through five years		10,575		10,588
Total	$	58,032	$	58,095

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

Stock-Based Compensation Restricted Stock Awards (Details) - Restricted stock awards shares in Thousands	12 Months Ended
	Apr. 30, 2020 $ / shares shares
Shares
Unvested stock at beginning of year (in shares) \| shares	226,159
Stock granted (in shares) \| shares	131,991
Stock vested (in shares) \| shares	(143,962)
Stock canceled (in shares) \| shares	(12,541)
Unvested stock at end of year (in shares) \| shares	201,647
Weighted Average Grant Date Fair Value
Unvested stock at beginning of year (in dollars per share) \| $ / shares	$ 43.35
Stock granted (in dollars per shares) \| $ / shares	52.71
Stock vested (in dollars per shares) \| $ / shares	34.03
Stock canceled (in dollars per shares) \| $ / shares	47.86
Unvested stock at end of year (in dollars per share) \| $ / shares	$ 55.84

Leases - Supplemental lease information (Details) $ in Thousands	12 Months Ended
	Apr. 30, 2020 USD ($)
Leases
Cash paid for amounts included in the measurement of operating lease liabilities	$ 3,897
Right-of-use assets obtained in exchange for new lease liabilities	$ 13,022
Weighted average remaining lease term	34 months
Weighted average discount rate	3.70%

Leases

12 Months Ended

Apr. 30, 2020

Leases

Leases

11. Leases

The Company leases certain buildings, land and equipment. Under the New Lease Standard, at contract inception the Company determines whether the contract is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are recorded in operating lease right-of-use assets, current operating lease liabilities and non-current operating lease liabilities.

The Company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. The Company uses its incremental borrowing rate based on the information available at commencement date to determine the present value of future payments and the appropriate lease classification. The Company defines the initial lease term to include renewal options determined to be reasonably certain. The Company’s leases have remaining lease terms of less than one year to six years, some of which may include options to extend the lease for up to 10 years, and some of which may include options to terminate the lease after two years. None of the Company’s options to extend or terminate are reasonably certain of being exercised, and are therefore not included in the Company’s determination of lease assets and liabilities. For operating leases, the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Many of the Company’s real estate lease agreements contain incentives for tenant improvements, rent holidays, or rent escalation clauses. For tenant improvement incentives, if the incentive is determined to be a leasehold improvement owned by the lessee, the Company generally records incentive as a reduction to fixed lease payments thereby reducing rent expense. For rent holidays and rent escalation clauses during the lease term, the Company records rental expense on a straight-line basis over the term of the lease. For these lease incentives, the Company uses the date of initial possession as the commencement date, which is generally when the Company is given the right of access to the space and begins to make improvements in preparation for intended use.

The Company does not have any finance leases. The Company does not have any material restrictions or covenants in its lease agreements, sale-leaseback transactions, land easements or residual value guarantees.

In determining the inputs to the incremental borrowing rate calculation, the Company makes judgments about the value of the leased asset, its credit rating and the lease term including the probability of its exercising options to extend or terminate the underlying lease. Additionally, the Company makes judgments around contractual asset substitution rights in determining whether a contract contains a lease.

The components of lease costs recorded in cost of sales for product sales and contract services and selling, general and administrative (“SG&A”) expense were as follows (in thousands):


	Year Ended
	April 30,
	2020
Operating lease cost	$	4,574
Short term lease cost		500
Variable lease cost		987
Sublease income		(287)
Total lease costs, net	$	5,774

Supplemental lease information were as follows:


	Year Ended
	April 30,
	2020
	(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,897
Right-of-use assets obtained in exchange for new lease liabilities	$	13,022

Weighted average remaining lease term		34 months
Weighted average discount rate		3.7%

Maturities of operating lease liabilities as of April 30, 2020 were as follows (in thousands):


2021	$	4,222
2022		3,910
2023		2,171
2024		1,055
2025		62
Thereafter		—
Total lease payments		11,420
Less: imputed interest		(1,207)
Total present value of operating lease liabilities	$	10,213

Maturities of operating lease liabilities as of April 30, 2019 were as follows:


2020	$	5,298
2021		3,527
2022		2,723
2023		1,554
2024		953
Thereafter		—
Total lease payments	$	14,055

Rental expense under operating leases was approximately $4,609,000 and $4,011,000 for the years ended April 30, 2019 and 2018, respectively.

Income Taxes Reconciliation (Details) - USD ($) $ in Thousands		4 Months Ended	9 Months Ended	12 Months Ended
	Dec. 22, 2017	Apr. 30, 2018	Jan. 31, 2018	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Income Taxes
U.S. federal statutory income tax rate (as a percent)	35.00%	21.00%	35.00%	21.00%	21.00%	30.40%
State and local income taxes, net of federal benefit (as a percent)				(2.10%)	(2.20%)	(2.20%)
R&D and other tax credits (as a percent)				(6.80%)	(8.10%)	(7.00%)
Valuation allowance (as a percent)				3.40%	3.70%	4.90%
Foreign rate differential						0.10%
Return to provision adjustments (as a percent)				0.10%	(0.30%)	(0.10%)
Permanent items (as a percent)				0.70%	0.80%	(2.70%)
Foreign derived intangible income (as a percent)				(3.90%)	(3.70%)
Excess benefit of stock options (as a percent)				(1.50%)	(3.10%)	(4.40%)
Tax Act (as a percent)						10.40%
Other (as a percent)				0.20%	1.10%	0.60%
Effective income tax rate (as a percent)				11.10%	9.20%	30.00%
Current:
Federal				$ 3,005	$ 1,953	$ 6,010
State				390	228	900
Current				3,395	2,181	6,910
Deferred:
Federal				2,063	1,945	3,272
State				421	551	(330)
Foreign				(31)	(36)	(52)
Deferred				2,453	2,460	2,890
Total income tax expense (benefit)				5,848	4,641	$ 9,800
Deferred income tax assets:
Accrued expenses				3,337	3,559
Stock based compensaton				2,259	1,647
Allowances, reserves, and other				1,784	1,579
Outside basis difference				2,264	1,150
Unrealized loss on securities				9
Net operating loss and credit carry-forwards				12,832	13,208
Intangibles basis				605	125
Lease liability				2,282
Total deferred income tax assets				25,372	21,268
Deferred income tax liabilities:
Fixed asset basis				(1,218)	(425)
Revenue recognition				(3,112)	(2,909)
Right of use assets				(1,965)
Total deferred income tax liabilities				(6,295)	(3,334)
Valuation allowance				(14,149)	(11,278)
Net deferred tax assets				$ 4,928	$ 6,656

Fair Value Measurements

12 Months Ended

Apr. 30, 2020

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’s financial assets measured at fair value on a recurring basis at April 30, 2020, were as follows (in thousands):


	Fair Value Measurement Using
			Significant
	Quoted prices in		other		Significant
	active markets for		observable		unobservable
	identical assets		inputs		inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Available-for-sale securities	$	—	$	58,095	$	—	$	58,095
Total	$	—	$	58,095	$	—	$	58,095

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, 2019	$	—
Business acquisition		1,703
Transfers to Level 3		—
Total (gains) losses (realized or unrealized)
Included in product cost of sales		1,147
Included in selling, general and administrative		(703)
Included in research and development		353
Included in other comprehensive income		—
Settlements		(2,500)
Balance at April 30, 2020	$	—
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 or liabilities still held at April 30, 2020	$	—

Pursuant to the Pulse Purchase Agreement, the sellers may have received up to a maximum of $5,000,000 in additional cash consideration (“contingent consideration”), if specific research and development milestones were achieved by December 10, 2021 and the continued employment of specific key employees. The contingent consideration was valued using a probability weighted discounted cash flow model. The analysis considered, among other items, contractual terms of the Pulse Purchase Agreement, the Company’s discount rate, the timing of expected future cash flows and the probability that the milestones required for payment of the contingent consideration will be achieved. See Note 19—Business Acquisitions. During the fiscal year ended April 30, 2020, one of the research and development milestones was achieved, and the requirements for the payout of remaining contingent consideration were concluded to not have been met. As a result, the Company recorded a gain of $832,000, which was recorded in selling, general, and administrative expense in the consolidated statements of income. On February 26, 2020, $2,500,000 of contingent consideration was paid to the sellers for the achieved milestone, and the remaining $2,500,000 will not be paid.

- 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

Warranty Reserves Estimated Cost (Details) - USD ($)	12 Months Ended
Warranty Reserves Estimated Cost (Details) - USD ($)	Apr. 30, 2020	Apr. 30, 2019
Warranty Reserves
Changes in estimates related to pre-existing warranties	$ (189,000)	$ 491,000
Product Warranty Expense	288,000	240,000
UAS
Warranty Reserves
Product Warranty Expense	0	251,000
UAS \| Warranty reserve.
Warranty Reserves
Changes in estimates related to pre-existing warranties		$ 491,000
Revised warranty reserve charges	$ 302,000

Organization and Significant Accounting Policies - Accrued Sales Commission (Details) - USD ($)		4 Months Ended	9 Months Ended	12 Months Ended
	Dec. 22, 2017	Apr. 30, 2018	Jan. 31, 2018	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Self-Insurance Liability
Estimated self-insurance liability of employee medical claim				$ 753,000	$ 965,000
Income Taxes
U.S. federal statutory income tax rate (as a percent)	35.00%	21.00%	35.00%	21.00%	21.00%	30.40%
Deferred tax expense						$ 3,300,000
Other current liabilities
Accrued liabilities
Accrued sales commission				$ 2,842,000	$ 1,301,000

Property and Equipment, net (Tables)

12 Months Ended

Apr. 30, 2020

Property and Equipment, net

Schedule of property and equipment


	April 30,
	2020		2019
	(In thousands)
Leasehold improvements	$	16,387	$	12,324
Machinery and equipment		46,519		40,432
Furniture and fixtures		3,031		2,145
Computer equipment and software		33,242		35,056
Construction in process		2,508		2,411
Property and equipment, gross		101,687		92,368
Less accumulated depreciation and amortization		(79,993)		(75,463)
Property and equipment, net	$	21,694	$	16,905

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Allowance for doubtful accounts
Movement in valuation and qualifying accounts and reserves
Balance at Beginning of Period	$ 1,041	$ 1,080	$ 104
Charged to Cost and Expenses	219	198	976
Deductions	(70)	(237)
Balance at End of Period	1,190	1,041	1,080
Warranty reserve
Movement in valuation and qualifying accounts and reserves
Balance at Beginning of Period	1,704	2,090	1,947
Charged to Cost and Expenses	2,069	702	1,884
Deductions	(1,758)	(1,088)	(1,741)
Balance at End of Period	2,015	1,704	2,090
Reserve for inventory excess and obsolescence
Movement in valuation and qualifying accounts and reserves
Balance at Beginning of Period	7,824	3,953	2,756
Charged to Cost and Expenses	5,377	5,054	2,758
Deductions	(2,969)	(1,183)	(1,561)
Balance at End of Period	10,232	7,824	3,953
Reserve for self-insured medical claims
Movement in valuation and qualifying accounts and reserves
Balance at Beginning of Period	944	1,003	1,133
Charged to Cost and Expenses	13,031	10,808	9,100
Deductions	(13,222)	(10,867)	(9,230)
Balance at End of Period	$ 753	$ 944	$ 1,003

Discontinued Operations (Tables)

12 Months Ended

Apr. 30, 2020

Discontinued Operations.

Schedule of statements of operations data for the EES Business


	Year Ended April 30,
	2020		2019		2018

Net sales	$	—	$	4,256	$	38,411
Cost of sales		—		5,097		33,384
Gross margin		—		(841)		5,027
Selling, general and administrative		—		1,515		7,825
Research and development		—		1,072		3,526
Other income, net		—		1		(27)
Loss from discontinued operations before income taxes		—		(3,427)		(6,351)
Benefit for income taxes		—		(463)		(2,464)
Net loss from discontinued operations	$	—	$	(2,964)	$	(3,887)
(Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively		(265)		8,490		—
Net (loss) income from discontinued operations	$	(265)	$	5,526	$	(3,887)

- 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

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+ Details

Stock-Based Compensation (Details) - USD ($)	12 Months Ended
Stock-Based Compensation (Details) - USD ($)	Apr. 30, 2020	Apr. 25, 2020	Apr. 30, 2019	Apr. 30, 2018
Stock Based Compensation
Stock based compensation expense	$ 6,227,000		$ 6,985,000	$ 4,956,000
Performance based restricted stock units \| Maximum
Stock Based Compensation
Stock based compensation expense	$ 4,263,000
Restated 2006 Plan
Stock Based Compensation
Maximum number of shares that may be granted to one participant during any twelve month period	2,000,000
Maximum amount that may be paid in cash as a performance-based award to one participant during any twelve month period	$ 5,000,000
Restated 2006 Plan \| Maximum
Stock Based Compensation
Number of shares authorized to be issued pursuant to awards	4,884,157
Restated 2006 Plan \| Incentive stock options \| Minimum
Stock Based Compensation
Percentage of the fair market value on date of grant	100.00%
2002 Plan \| Stock options
Stock Based Compensation
Exercisable period from grant date	5 years
Number of awards that may be granted	0
1992 Plan \| Stock options
Stock Based Compensation
Exercisable period from grant date	5 years
Fiscal 2018 LTIP \| Performance based restricted stock units
Stock Based Compensation
Stock based compensation expense	$ 193,000		588,000	$ 269,000
Fiscal 2017 LTIP
Stock Based Compensation
Stock based compensation expense		$ 0	$ 0

Quarterly Results of Operations (Unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Selected Quarterly Financial Information
Revenue	$ 135,223,000	$ 61,891,000	$ 83,271,000	$ 86,911,000	$ 87,930,000	$ 75,322,000	$ 72,979,000	$ 78,043,000	$ 367,296,000	$ 314,274,000	$ 268,424,000
Gross margin	53,168,000	23,496,000	35,166,000	41,272,000	37,023,000	30,392,000	28,399,000	32,589,000	$ 153,102,000	$ 128,403,000	$ 107,685,000
Net (loss) income from attributable to AeroVironment from continuing operations	$ 17,736,000	$ (1,008,000)	$ 7,501,000	$ 17,110,000	$ 6,097,000	$ 8,431,000	$ 7,047,000	$ 20,337,000
Net (loss) income per share attributable to AeroVironment from continuing operations-basic	$ 0.74	$ (0.04)	$ 0.32	$ 0.72	$ 0.26	$ 0.35	$ 0.30	$ 0.86	$ 1.74	$ 1.77	$ 0.93
Net (loss) income per share attributable to AeroVironment from continuing operations-diluted	$ 0.73	$ (0.04)	$ 0.31	$ 0.71	$ 0.26	$ 0.35	$ 0.29	$ 0.85	$ 1.72	$ 1.74	$ 0.91
Number of weeks									91 days
Impairment of intangible assets and goodwill											$ 1,021,000
Deferred tax expense											$ 3,300,000

- Definition

The amount of net income (loss) from continuing operations per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

Business Acquisitions (Details)				9 Months Ended	12 Months Ended
Business Acquisitions (Details)	Feb. 26, 2020 USD ($)	Jun. 10, 2018 USD ($) item	Feb. 01, 2017 USD ($)	Jan. 25, 2020 USD ($)	Apr. 30, 2020 USD ($)	Apr. 30, 2019 USD ($)	Apr. 30, 2018 USD ($)	Jun. 10, 2019
Business Acquisitions
Ownership interest acquired								100.00%
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date
Goodwill					$ 6,340,000
Supplemental Pro forma Information
Amortization of Intangible Assets					2,822,000	$ 357,000	$ 296,000
Altoy
Business Acquisitions
Amount of retention to cover post closing indemnification claims			$ 250,000
Amount of holdback			1,250,000
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date
Inventory			334,000
Goodwill			6,340,000
Other assets and liabilities assumed			(614,000)
Total net identified assets acquired			21,880,000
Fair value of consideration transferred:
Cash			18,677,000
Holdback			1,250,000
Retention			250,000
Contingent consideration			1,703,000
Cash consideration received			21,880,000
Supplemental Pro forma Information
Revenue					367,523,000	316,878,000
Net income attributable to AeroVironment					41,481,000	$ 43,204,000
Altoy \| In process research and development
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date
Intangible assets			550,000
Altoy \| Non-compete agreements
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date
Intangible assets			320,000
Altoy \| Customer relationships
Business Combinations, Assets Acquired and Liabilities Assumed at Acquisition Date
Intangible assets			$ 14,950,000
Pulse Aerospace, LLC
Business Acquisitions
Ownership interest acquired		100.00%
Amount of cash less closing indebtedness and transaction costs		$ 20,650,000
Amount of retention to cover post closing indemnification claims		250,000
Amount of holdback		$ 1,250,000
Number of months after closing holdback will be paid		18 months
Number of research and development milestones \| item		2
Each milestone achievement	$ 2,500,000
Total milestone achievement		$ 5,000,000
Contingent consideration paid		1,703,000			2,500,000
Fair value of consideration transferred:
Holdback		1,250,000
Retention		$ 250,000
Supplemental Pro forma Information
Revenue					6,607,000
Amortization of Intangible Assets					2,461,000
Pulse Aerospace, LLC \| Discount rate
Business Acquisitions
Measurement input		4.5
Pulse Aerospace, LLC \| SG&A
Business Acquisitions
Business acquisitions gain				$ 832,000	$ 832,000
Pulse Aerospace, LLC \| Minimum
Business Acquisitions
Each milestone achievement		$ 0
Pulse Aerospace, LLC \| Maximum
Business Acquisitions
Each milestone achievement		$ 2,500,000
Fair value of consideration transferred:
Cash				$ 5,000,000

Warranty Reserves (Tables)

12 Months Ended

Apr. 30, 2020

Warranty Reserves

Summary of warranty reserve activity


	April 30,
	2020		2019
	(In thousands)
Beginning balance	$	1,704	$	2,090
Warranty expense		2,258		211
Changes in estimates related to pre-existing warranties		(189)		491
Warranty costs settled		(1,758)		(1,088)
Ending balance	$	2,015	$	1,704

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Apr. 30, 2020	Jun. 17, 2020	Oct. 26, 2019
Document and Entity Information
Entity Registrant Name	AeroVironment Inc
Entity File Number	001-33261
Entity Central Index Key	0001368622
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Apr. 30, 2020
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-2705790
Amendment Flag	false
Trading Symbol	AVAV
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--04-30
Entity Address, Address Line One	900 Innovators Way
Entity Address, City or Town	Simi Valley
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93065
City Area Code	(805)
Local Phone Number	520-8350
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,221.7
Entity Common Stock, Shares Outstanding		24,063,602
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Small Business	false

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Apr. 30, 2020

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

SUPPLEMENTARY DATA

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS


			Additions
	Balance at		Charged to		Charged to				Balance at
	Beginning		Costs and		Other				End of
Description	of Period		Expenses		Accounts		Deductions		Period
	(In thousands)
Allowance for doubtful accounts for the year ended April 30:
2018	$	104	$	976	$	—	$	—	$	1,080
2019	$	1,080	$	198	$	—	$	(237)	$	1,041
2020	$	1,041	$	219	$	—	$	(70)	$	1,190
Warranty reserve for the year ended April 30:
2018	$	1,947	$	1,884	$	—	$	(1,741)	$	2,090
2019	$	2,090	$	702	$	—	$	(1,088)	$	1,704
2020	$	1,704	$	2,069	$	—	$	(1,758)	$	2,015
Reserve for inventory excess and obsolescence for the year ended April 30:
2018	$	2,756	$	2,758	$	—	$	(1,561)	$	3,953
2019	$	3,953	$	5,054	$	—	$	(1,183)	$	7,824
2020	$	7,824	$	5,377	$	—	$	(2,969)	$	10,232
Reserve for self-insured medical claims for the year ended April 30:
2018	$	1,133	$	9,100	$	—	$	(9,230)	$	1,003
2019	$	1,003	$	10,808	$	—	$	(10,867)	$	944
2020	$	944	$	13,031	$	—	$	(13,222)	$	753

Employee Savings Plan

12 Months Ended

Apr. 30, 2020

Employee Savings Plan

Employee Savings Plan

10. Employee Savings Plan

The Company has an employee 401(k) savings plan covering all eligible employees. The Company expensed approximately $4,744,000, $3,961,000 and $2,953,000 in contributions to the plan for the years ended April 30, 2020, 2019 and 2018, respectively.

Employee Savings Plan (Details) - USD ($)	12 Months Ended
Employee Savings Plan (Details) - USD ($)	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Employee Savings Plan
Amount of expense in contribution to the plan	$ 4,744,000	$ 3,961,000	$ 2,953,000

Geographic Information (Details)	12 Months Ended
Geographic Information (Details)	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Non-U.S. customers
Product Information
Percentage of revenue	45.00%	52.00%	47.00%

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2020	Apr. 30, 2019
Consolidated Balance Sheets
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,190	$ 1,041
Due from Related Parties	$ 15,779	$ 9,028
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	24,063,639	23,946,293
Common stock, outstanding shares	24,063,639	23,946,293

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Consolidated Statements of Comprehensive Income
Unrealized gain on investments, net of deferred tax expense	$ 14	$ 51	$ 25

Intangibles (Tables)

12 Months Ended

Apr. 30, 2020

Intangibles

Schedule of components of intangibles

Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows (in thousands):


	April 30,		April 30,
	2020		2019
Technology	$	14,950	$	-
Licenses		1,006		1,006
Customer relationships		873		733
In-process research and development		550		-
Non-compete agreements		320		-
Trademarks and tradenames		68		28
Other		3		3
Intangibles, gross		17,770		1,770
Less accumulated amortization		(4,133)		(1,311)
Intangibles, net	$	13,637	$	459

Schedule of estimated amortization expense for the next five years


	Year ending
	April 30,
2021	$	2,792
2022		2,829
2023		2,688
2024		2,629
2025		2,492
	$	13,430

Accumulated Other Comprehensive Income and Reclassifications Adjustments

12 Months Ended

Apr. 30, 2020

Accumulated Other Comprehensive Income and Reclassifications Adjustments

Accumulated Other Comprehensive Income and Reclassifications Adjustments

15. Accumulated Other Comprehensive Loss

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


					Total Accumulated
					Other
	Available-for-Sale		Foreign Currency		Comprehensive
	Securities		Translation Adjustments		Loss
Total accumulated other comprehensive loss balance as of April 30, 2019	$	—	$	2	$	2
Changes in foreign currency translation adjustments		—		276		276
Unrealized gains, net of $14 of taxes		50		—		50
Total accumulated other comprehensive loss balance as of April 30, 2020	$	50	$	278	$	328

Organization and Significant Accounting Policies (Tables)

12 Months Ended

Apr. 30, 2020

Organization and Significant Accounting Policies

Schedule of estimated useful lives of property and equipment


Machinery and equipment	2 - 7	years
Computer equipment and software	2 - 5	years
Furniture and fixtures	3 - 7	years
Leasehold improvements	Lesser of useful life or term of lease

Schedule of estimated useful life for the Company's intangible assets


Technology	6	years
Licenses	3	years
Customer relationships	3 - 5	years
In-process research and development	3	years
Non-compete agreements	Contractual term

Schedule of revenue by category


	Year Ended April 30,
Revenue by major product line/program	2020		2019		2018
Small UAS	$	225,888	$	183,157	$	167,534
TMS		63,781		65,087		63,406
HAPS		60,864		55,407		29,593
Other		16,763		10,623		7,891
Total revenue	$	367,296	$	314,274	$	268,424


	Year Ended April 30,
Revenue by contract type	2020		2019		2018
FFP	$	269,917	$	224,090	$	212,976
CPFF		94,176		89,485		55,203
T&M		3,203		699		245
Total revenue	$	367,296	$	314,274	$	268,424

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.


	Year Ended April 30,
Revenue by customer category	2020		2019		2018
U.S. government:	$	225,341	$	182,586	$	156,996
Non-U.S. government		141,955		131,688		111,428
Total revenue	$	367,296	$	314,274	$	268,424


	Year Ended April 30,
Revenue by geographic location	2020		2019		2018
Domestic	$	201,046	$	151,124	$	142,158
International		166,250		163,150		126,266
Total revenue	$	367,296	$	314,274	$	268,424

Schedule of reconciliation of basic to diluted shares


	Year Ended April 30,
	2020		2019		2018

Continuing operations attributable to AeroVironment, Inc.	$	41,339,000	$	41,912,000	$	21,750,000
Discontinued operations, net of tax		(265,000)		5,526,000		(3,887,000)
Net income attributable to AeroVironment, Inc.	$	41,074,000	$	47,438,000	$	17,863,000
Denominator for basic earnings per share:
Weighted average common shares		23,806,208		23,663,410		23,471,241
Dilutive effect of employee stock options, restricted stock and restricted stock units		281,959		408,303		342,531
Denominator for diluted earnings per share		24,088,167		24,071,713		23,813,772

Property and Equipment, net

12 Months Ended

Apr. 30, 2020

Property and Equipment, net

Property and Equipment, net

7. Property and Equipment, net

Property and equipment, net consist of the following:


	April 30,
	2020		2019
	(In thousands)
Leasehold improvements	$	16,387	$	12,324
Machinery and equipment		46,519		40,432
Furniture and fixtures		3,031		2,145
Computer equipment and software		33,242		35,056
Construction in process		2,508		2,411
Property and equipment, gross		101,687		92,368
Less accumulated depreciation and amortization		(79,993)		(75,463)
Property and equipment, net	$	21,694	$	16,905

During the three months ended April 30, 2019, the Company determined that the continued less than forecasted sales of its Quantix commercial UAS solution, which launched during the fourth quarter of fiscal year 2018, was an indicator that the long-lived assets of this asset group may not be recoverable. As a result, the company performed an analysis and concluded that the projected undiscounted cash flows were less than the carrying value of the asset group (Step 1). As a result, the Company performed additional analysis to determine the amount of the impairment loss (Step 2) and recorded an impairment loss totaling $4,398,000 related to the long-lived assets of the commercial UAS Quantix solution, which is included in selling, general and administrative expense on the consolidated statements of income. The fair value of the asset group was determined based on a discounted cash flow model reflective of the Company’s revised cash flow estimates.

Depreciation expense for the years ended April 30, 2020, 2019 and 2018 was $7,066,000, $7,311,000 and $5,676,000, respectively.

Changes in Accounting Estimates

12 Months Ended

Apr. 30, 2020

Changes in Accounting Estimates

Changes in Accounting Estimates

16. Changes in Accounting Estimates

During the years ended April 30, 2020, 2019 and 2018, the Company revised its estimates at completion of various contracts recognized using the over time method, which resulted in cumulative catch up adjustments during the year in which the change in estimate occurred. The change in estimate was a result of the Company changing the total costs required to complete the contracts due to having more accurate cost information as work progressed in subsequent periods on the various contracts. During the year ended April 30, 2020, the Company revised its estimates of the total expected costs to complete a TMS contract and a contract associated with a design and development agreement. The aggregate impact of these adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was a decrease of approximately $1,403,000 and an increase of approximately $1,099,000, respectively. The changes in estimates resulted in cumulative catch-up adjustments to revenue for the years ended April 30, 2019 were not material. During the year ended April 30, 2018, the Company revised its estimates of the total expected costs to complete a TMS variant contract. The aggregate impact of these adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was a decrease of approximately $1,255,000.

Intangibles

12 Months Ended

Apr. 30, 2020

Intangibles

Intangibles

6. Intangibles

Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows (in thousands):


	April 30,		April 30,
	2020		2019
Technology	$	14,950	$	-
Licenses		1,006		1,006
Customer relationships		873		733
In-process research and development		550		-
Non-compete agreements		320		-
Trademarks and tradenames		68		28
Other		3		3
Intangibles, gross		17,770		1,770
Less accumulated amortization		(4,133)		(1,311)
Intangibles, net	$	13,637	$	459

The Company tests identifiable intangible assets and goodwill for impairment in the fourth quarter of each fiscal year unless there are interim indicators that suggest that it is more likely than not that either the identifiable intangible assets or goodwill may be impaired. Due to the political situation within Turkey and the increased uncertainty in the relations between the U.S. and Turkey during the fiscal year ended April 30, 2018, the Company significantly lowered its cash flow expectations for its Altoy operations. As a result of the decline in the Company’s cash flow forecast, the Company performed an interim assessment of impairment of Altoy’s long-lived assets, excluding goodwill during the three months ended October 28, 2017. Based on the analysis, the Company determined that the fair value of Altoy had declined below its carrying value, excluding goodwill. As a result, the Company performed an additional analysis to determine the amount of the impairment loss and recorded an impairment loss totaling $899,000 during the three months ended October 28, 2017, which is included in selling, general and administrative expense on the consolidated statements of income. The fair value of the Altoy asset group was determined based on a discounted cash flow model reflective of the revised cash flow estimates.

The weighted average amortization period at April 30, 2020 and 2019 was four years and one year, respectively. Amortization expense for the years ended April 30, 2020, 2019 and 2018 was $2,822,000, $357,000 and $296,000, respectively.

Technology, in-process research and development, customer relationships, trademarks and tradenames, and non-compete agreements were recognized in conjunction with the Company’s acquisition of Pulse on June 10, 2019. Refer to Note 19 - Business Combinations for further details.

Estimated amortization expense for the next five years is as follows (in thousands):


	Year ending
	April 30,
2021	$	2,792
2022		2,829
2023		2,688
2024		2,629
2025		2,492
	$	13,430

Stock-Based Compensation

12 Months Ended

Apr. 30, 2020

Stock-Based Compensation

Stock-Based Compensation

12. Stock-Based Compensation

For the years ended April 30, 2020, 2019 and 2018, the Company recorded stock-based compensation expense of approximately $6,227,000, $6,985,000 and $4,956,000, respectively.

On January 14, 2007, the stockholders of the Company approved the 2006 Equity Incentive Plan (“2006 Plan”) effective January 21, 2007, for officers, directors, key employees and consultants. On September 29, 2011, the stockholders of the Company approved an amendment and restatement of the 2006 Plan (“Restated 2006 Plan”). Under the Restated 2006 Plan, incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation right awards, performance share awards, performance stock unit awards, dividend equivalents awards, stock payment awards, deferred stock awards, restricted stock unit awards, other stock-based awards, performance bonus awards or performance-based awards may be granted at the discretion of the compensation committee, which consists of outside directors. A maximum of 4,884,157 shares of stock may be issued pursuant to awards under the Restated 2006 Plan. The maximum number of shares of common stock with respect to one or more awards that may be granted to any one participant during any twelve month period is 2,000,000. A maximum of $5,000,000 may be paid in cash to any one participant as a performance-based award during any twelve month period. The exercise price for any incentive stock option shall not be less than 100% of the fair market value on the date of grant. Vesting of awards is established at the time of grant.

The Company had an equity incentive plan (“2002 Plan”) for officers, directors and key employees. Under the 2002 Plan, incentive stock options or nonqualified stock options were granted, as determined by the administrator at the time of grant. Stock purchase rights were also granted under the 2002 Plan. Options under the 2002 Plan were granted at their fair market value (as determined by the board of directors). The options became exercisable at various times over a five-year period from the grant date. The 2002 Plan was terminated on the effective date of the 2006 Plan. Awards outstanding under the 2002 Plan remain outstanding and exercisable; no additional awards may be made under the 2002 Plan.

The Company had a 1992 nonqualified stock option plan (“1992 Plan”) for certain officers and key employees. Options under the 1992 Plan were granted at their fair market value (as determined by the board of directors) at the date of grant and became exercisable at various times over a five-year period from the grant date. The 1992 Plan expired in August 2002.

No options were granted during the fiscal years ended April 30, 2020, 2019 and 2018. The fair value of stock options granted previously was estimated at the grant date using the Black-Scholes option pricing model. Assumptions included in the Black-Scholes option pricing model included the expected term of stock options, the expected volatility, the risk free interest rate, and the expected dividend yield. The expected term of stock options represents the weighted average period the Company expects the stock options to remain outstanding, based on the Company’s historical exercise and post-vesting cancellation experience and the remaining contractual life of its outstanding options. The expected volatility is based on historical volatility for the Company’s stock. The risk free interest rate is based on the

implied yield on a U.S. Treasury zero-coupon bond with a remaining term that approximates the expected term of the option. The expected dividend yield of zero reflects that the Company has not paid any cash dividends since inception and does not anticipate paying cash dividends in the foreseeable future.

Information related to the stock option plans at April 30, 2020, 2019 and 2018, and for the years then ended is as follows:


	Restated 2006 Plan			2002 Plan			1992 Plan
		Weighted			Weighted			Weighted
		Average			Average			Average
		Exercise			Exercise			Exercise
	Shares	Price		Shares	Price		Shares	Price
Outstanding at April 30, 2017	446,624		24.93	—		—	43,415		0.59
Options granted	—		—	—		—	—		—
Options exercised	(107,598)		23.80	—		—	(25,113)		0.59
Options canceled	—		—	—		—	—		—
Outstanding at April 30, 2018	339,026		25.29	—		—	18,302		0.59
Options granted	—		—	—		—	—		—
Options exercised	(2,000)		32.19	—		—	(4,000)		0.59
Options canceled	—		—	—		—	—		—
Outstanding at April 30, 2019	337,026		25.25	—		—	14,302		0.59
Options granted	—		—	—		—	—		—
Options exercised	(3,000)		31.15	—		—	(13,189)		0.59
Options canceled	—		—	—		—	—		—
Outstanding at April 30, 2020	334,026		25.19	—		—	1,113		0.59
Options exercisable at April 30, 2020	318,026	$	25.12	—	$	—	1,113	$	0.59

The total intrinsic value of all options exercised during the years ended April 30, 2020, 2019 and 2018 was approximately $833,000, $371,000, and $2,407,000, respectively. The intrinsic value of all options outstanding at April 30, 2020 and 2019 was $11,779,000 and $15,569,000, respectively. The intrinsic value of all exercisable options at April 30, 2020 and 2019 was $11,242,000 and $13,950,000, respectively.

A summary of the status of the Company’s non-vested stock options as of April 30, 2020 and the year then ended is as follows:


		Weighted
		Average
		Grant Date
Non-vested Options	Options	Fair Value
Non-vested at April 30, 2019	39,510	$	10.90
Granted	—		—
Expired	—		—
Canceled	—		—
Vested	(23,510)		11.40
Non-vested at April 30, 2020	16,000	$	10.16

As of April 30, 2020, there was approximately $7,670,000 of total unrecognized compensation cost related to non-vested share-based compensation awards granted under the equity plans. That cost is expected to be recognized over an approximately two-year period or a weighted average period of approximately 2.5 years.

No options were granted during the fiscal years ended April 30, 2020, 2019 and 2018. The total fair value of shares vesting during the years ended April 30, 2020, 2019 and 2018 was $4,900,000, $4,756,000 and $3,328,000, respectively.

Proceeds from all option exercises under all stock option plans for the years ended April 30, 2020, 2019 and 2018 were approximately $101,000, $67,000 and $2,576,000, respectively. The tax benefit realized from stock-based compensation was $0 during the years ended April 30, 2020, 2019 and 2018, respectively.

The following tabulation summarizes certain information concerning outstanding and exercisable options at April 30, 2020:


				Options Outstanding
					Weighted
					Average			Options Exercisable
					Remaining	Weighted			Weighted
				As of	Contractual	Average		As of	Average
				April 30,	Life In	Exercise		April 30,	Exercise
Range of Exercise Prices				2020	Years	Price		2020	Price
$	0.59	-	19.16	55,113	2.93	$	17.90	55,113	$	17.90
	19.17	-	26.24	58,500	2.86		20.54	58,500		20.54
	26.25	-	26.99	80,000	5.15		26.70	64,000		26.70
	27.00	-	27.99	50,000	3.56		27.27	50,000		27.27
	28.00	-	29.26	50,000	1.83		28.72	50,000		28.72
	29.27	-	31.27	41,526	3.94		31.13	41,526		31.13
$	0.59	-	31.27	335,139	3.50	$	25.11	319,139	$	25.03

The remaining weighted average contractual life of exercisable options at April 30, 2020 was 3.42 years.

Information related to the Company’s restricted stock awards at April 30, 2020 and for the year then ended is as follows:


	Restated 2006 Plan
		Weighted
		Average
		Grant Date
	Shares	Fair Value
Unvested stock at April 30, 2019	226,159	$	43.35
Stock granted	131,991		52.71
Stock vested	(143,962)		34.03
Stock canceled	(12,541)		47.86
Unvested stock at April 30, 2020	201,647	$	55.84

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Revenue:
Revenue	$ 367,296	$ 314,274	$ 268,424
Cost of sales:
Cost of sales	214,194	185,871	160,739
Gross margin:
Total gross margin	153,102	128,403	107,685
Selling, general and administrative	59,490	60,343	50,826
Research and development	46,477	34,234	26,433
Income from continuing operations	47,135	33,826	30,426
Other income:
Interest income, net	4,828	4,672	2,240
Other income (expense), net	707	11,980	(49)
Income from continuing operations before income taxes	52,670	50,478	32,617
Provision for income taxes	5,848	4,641	9,800
Equity method investment loss, net of tax	(5,487)	(3,944)	(1,283)
Net income from continuing operations	41,335	41,893	21,534
Discontinued operations:
(Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively	(265)	8,490
Loss from discontinued operations, net of tax		(2,964)	(3,887)
Net (loss) income from discontinued operations	(265)	5,526	(3,887)
Net income	41,070	47,419	17,647
Net loss attributable to noncontrolling interest	4	19	216
Net income (loss) per share attributable to AeroVironment, Inc.-Basic	$ 41,074	$ 47,438	$ 17,863
Net (loss) income per share attributable to AeroVironment, Inc.--Basic
Basic, continuing (in dollars per share)	$ 1.74	$ 1.77	$ 0.93
Basic, discontinuing (in dollars per share)	(0.01)	0.23	(0.17)
Net income per share attributable to AeroVironment, Inc.-Basic	1.73	2.00	0.76
Net income (loss) per share attributable to AeroVironment, Inc.-Diluted
Diluted, continuing (in dollars per share)	1.72	1.74	0.91
Diluted, discontinued (in dollars per share)	(0.01)	0.23	(0.16)
Net income per share attributable to AeroVironment, Inc.-Diluted	$ 1.71	$ 1.97	$ 0.75
Weighted-average shares outstanding:
Basic (in shares)	23,806,208	23,663,410	23,471,241
Diluted (in shares)	24,088,167	24,071,713	23,813,772
Product sales
Revenue:
Revenue	$ 256,758	$ 212,089	$ 191,712
Cost of sales:
Cost of sales	139,131	113,489	109,393
Gross margin:
Total gross margin	117,627	98,600	82,319
Contract services
Revenue:
Revenue	110,538	102,185	76,712
Cost of sales:
Cost of sales	75,063	72,382	51,346
Gross margin:
Total gross margin	$ 35,475	$ 29,803	$ 25,366

Organization and Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Research and Development
Revenue from customer funded research and development	$ 80,934	$ 76,407	$ 52,489
Cost of sales	56,440	54,824	36,855
Research and Development With Federal Government
Funding	11,225
Reimbursement amount	21,933
Reimbursements under the contract	$ 8,102	5,936	4,188
Lease Accounting
Deferred rent liabilities		1,173	1,536
Option to extend period (in years)	10 years
Option to terminate period (in years)	2 years
Advertising Costs
Advertising expenses	$ 934	897	526
Foreign currency transactions
Foreign currency gain (loss)	(1)	(38)	87
Numerator for basic earnings per share:
Continuing operations attributable to AeroVironment	41,339	41,912	21,750
Discontinued operations, net of tax	(265)	5,526	(3,887)
Net income attributable to AeroVironment	$ 41,074	$ 47,438	$ 17,863
Denominator for basic (loss) earnings per share:
Weighted average common shares	23,806,208	23,663,410	23,471,241
Dilutive effect of employee stock options, restricted stock and restricted stock units	281,959	408,303	342,531
Denominator for diluted (loss) earnings per share	24,088,167	24,071,713	23,813,772
Number of shares reserved for issuance that are anti-dilutive	3,000	18,000	22,000
Minimum
Lease Accounting
Remaining lease terms (in years)	1 year
Maximum
Lease Accounting
Remaining lease terms (in years)	6 years
Option to extend period (in years)	10 years

Warranty Reserves (Details) - USD ($) $ in Thousands	12 Months Ended
Warranty Reserves (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Apr. 30, 2019
Warranty Reserves
Beginning balance	$ 1,704	$ 2,090
Warranty expense	2,258	211
Changes in estimates related to pre-existing warranties	(189)	491
Warranty costs settled	(1,758)	(1,088)
Ending balance	$ 2,015	$ 1,704

Intangibles (Details) - USD ($)	3 Months Ended	12 Months Ended
Intangibles (Details) - USD ($)	Oct. 31, 2017	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Intangibles
Amortization expense		$ 2,822,000	$ 357,000	$ 296,000
Altoy
Intangibles
Impairment loss	$ 899,000
Weighted average
Intangibles
Weighted average amortization period		4 years	1 year

Warranty Reserves

12 Months Ended

Apr. 30, 2020

Warranty Reserves

Warranty Reserves

9. Warranty Reserves

Warranty reserve activity is summarized as follows:


	April 30,
	2020		2019
	(In thousands)
Beginning balance	$	1,704	$	2,090
Warranty expense		2,258		211
Changes in estimates related to pre-existing warranties		(189)		491
Warranty costs settled		(1,758)		(1,088)
Ending balance	$	2,015	$	1,704

During the fiscal year ended April 30, 2019, the Company revised its estimates based on the results of additional engineering studies and recorded incremental warranty reserve charges totaling $491,000 related to the estimated costs to repair a component of certain small UAS that were delivered in prior periods. During the fiscal year ended April 30, 2020, the Company revised its estimates based on the results of additional engineering studies to $302,000. As April 30, 2020 and 2019, the Company had no remaining warranty reserve related to the estimated costs to repair the impacted UAS and $251,000, respectively. As of April 30, 2020 and 2019, the Company incurred total costs related to this warranty of $288,000 and $240,000, respectively.

Discontinued Operations (Details)			12 Months Ended
Discontinued Operations (Details)	Feb. 22, 2019 USD ($)	Jun. 29, 2018 USD ($)	Apr. 30, 2021 USD ($)	Apr. 30, 2020 USD ($) contract	Apr. 30, 2019 USD ($)	Apr. 30, 2018 USD ($)
Discontinued operations
Amount of alleged damages	$ 6,500,000
Statement of operations
Net loss from discontinued operations					$ (2,964,000)	$ (3,887,000)
(Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively				$ (265,000)	8,490,000
Tax expense				(76,000)	2,444,000
Net (loss) income from discontinued operations				(265,000)	5,526,000	(3,887,000)
EES Business \| Disposed of by sale
Discontinued operations
Cash consideration received		$ 31,994,000
Gain on sale of business		11,420,000			(486,000)
Working capital dispute		$ 922,000
EES Business \| Disposed of by sale \| Other income (expense)
Statement of operations
Net Sales				551,000	2,758,000
EES Business \| Discontinued Operations
Statement of operations
Net Sales					4,256,000	38,411,000
Cost of sales					5,097,000	33,384,000
Gross margin					(841,000)	5,027,000
Selling, general and administrative					1,515,000	7,825,000
Research and development					1,072,000	3,526,000
Other (expense), net					(1,000)	(27,000)
Loss from discontinued operations before income taxes					(3,427,000)	(6,351,000)
Benefit for income taxes					(463,000)	(2,464,000)
Net loss from discontinued operations					(2,964,000)	(3,887,000)
(Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively			$ (265,000)		8,490,000
Tax expense				(76,000)	2,444,000
Net (loss) income from discontinued operations			$ (265,000)		$ 5,526,000	$ (3,887,000)
Holdback \| Disposed of by sale
Discontinued operations
Cash consideration received				$ 6,500,000
Number of remaining contracts \| contract				2

Commitments and Contingencies

12 Months Ended

Apr. 30, 2020

Legal Settlements

Commitments and Contingencies

18. Commitments and Contingencies

Commitments

The Company’s operations are conducted in leased facilities. Refer to Note 11—Leases for additional information.

Contingencies

The Company is subject to legal proceedings and claims which arise out of the ordinary course of its business. Although adverse decisions or settlements may occur, the Company, in consultation with legal counsel, believes that the final disposition of such matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company.

At April 30, 2020 and 2019, the Company had outstanding letters of credit totaling $2,716,000 and $7,079,000, respectively.

Contract Cost Audits

Payments to the Company on government cost reimbursable 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 cost reimbursable government contracts to be recorded at actual rates unless collectability is not reasonably assured. During the fiscal year ended April 30, 2017, the Company settled rates for its incurred cost claims with the DCAA for fiscal years 2011 through 2014 without payment of any consideration. During the fiscal year ended 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. During the fiscal year ended April 30, 2020, the Company settled rates for its incurred cost claims with the DCAA for fiscal year 2015 for an amount not significant. At April 30, 2020 and 2019, the Company had no reserve and $93,000 reserved for open incurred cost claim audits, respectively.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Operating activities
Net income	$ 41,070	$ 47,419	$ 17,647
Loss (gain) on sale of business, net of tax	265	(8,490)
Loss from discontinued operations, net of tax		2,964	3,887
Net income from continuing operations	41,335	41,893	21,534
Adjustments to reconcile net income from continuing operations to cash provided by operating activities from continuing operations:
Depreciation and amortization	9,888	7,669	5,982
Losses from equity method investments	5,487	3,944	1,283
Realized gain from sale of available-for-sale investments	(180)
Impairment of long-lived assets		4,398	255
Provision for doubtful accounts	388	(39)	977
Impairment of intangible assets and goodwill			1,021
Other non-cash gain, net	(703)
Non-cash lease expense	4,574
Loss (gain) on foreign currency transactions	1	38	(87)
Deferred income taxes	3,419	4,792	2,853
Stock-based compensation	6,227	6,985	4,956
(Gain) loss on sale of property and equipment	(71)	76	20
Amortization of debt securities	(1,423)	(1,506)	1,424
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(42,869)	25,821	11,070
Unbilled receivables and retentions	(22,790)	(36,175)	2,253
Inventories	8,855	(16,631)	1,192
Income tax receivable	821	(821)
Prepaid expenses and other assets	831	(2,401)	139
Accounts payable	3,127	(7,054)	5,736
Other liabilities	8,180	(4,043)	9,224
Net cash provided by operating activities of continuing operations	25,097	26,946	69,832
Investing activities
Acquisition of property and equipment	(11,220)	(8,896)	(9,563)
Equity method investments	(14,498)	(7,598)	(3,267)
Business acquisition, net of cash acquired	(18,641)
Proceeds from sale of business		31,994
Proceeds from sale of property and equipment	81
Redemptions of held-to-maturity investments	185,917	260,918	227,663
Purchases of held-to-maturity investments	(176,757)	(267,122)	(221,680)
Redemptions of available-for-sale investments	200,892	2,250	450
Purchases of available-for-sale investments	(106,607)
Net cash provided by (used in) investing activities from continuing operations	59,167	11,546	(6,397)
Financing activities
Principal payments of capital lease obligations		(161)	(288)
Payment of contingent consideration	(868)
Tax withholding payment related to net settlement of equity awards	(1,062)	(1,094)	(397)
Exercise of stock options	100	71	2,705
Net cash used in financing activities from continuing operations	(1,830)	(1,184)	2,020
Discontinued operations
Operating activities of discontinued operations	0	(7,686)	(623)
Investing activities of discontinued operations	0	(431)	(1,219)
Net cash used in discontinued operations		(8,117)	(1,842)
Net increase in cash, cash equivalents, and restricted cash	82,434	29,191	63,613
Cash, cash equivalents, and restricted cash at beginning of period	172,708	143,517	79,904
Cash, cash equivalents, and restricted cash at end of period	255,142	172,708	143,517
Cash paid, net during the period for:
Income taxes	532	6,780	1,813
Non-cash activities
Unrealized gain on investments, net of deferred tax expense of $14, $51 and $25 for the fiscal years ended 2020, 2019 and 2018, respectively	50	57	70
Reclassification from share-based liability compensation to equity			384
Change in foreign currency translation adjustments	276	(34)	36
Acquisitions of property and equipment included in accounts payable	$ 1,425	$ 810	$ 379

Organization and Significant Accounting Policies

12 Months Ended

Apr. 30, 2020

Organization and Significant Accounting Policies

Organization and Significant Accounting Policies

1. Organization and Significant Accounting Policies

Organization

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

Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of AeroVironment, Inc. and its wholly-owned subsidiaries: Pulse Aerospace, LLC (“Pulse”) and AeroVironment, Inc. (Afghanistan), as well as the Company’s Turkish joint venture, Altoy Savunma Sanayi ve Havacilik Anonim Sirketi (“Altoy”) (collectively referred to herein as the “Company”).

In February 2018, the Company dissolved AeroVironment GmbH, the results of which were not material to the consolidated financial statements. In February 2019, the Company dissolved AeroVironment International PTE. LTD., the results of which were not material to the consolidated financial statements. In October 2019, the Company dissolved its wholly-owned subsidiary, Skytower, Inc., the results of which were not material to the consolidated financial statements.

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 represented 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.

On June 10, 2019, the Company purchased 100% of the issued and outstanding member units of Pulse Aerospace, LLC (“Pulse”) pursuant to the terms of a Unit Purchase Agreement (the “Pulse Purchase Agreement”). The assets, liabilities and operating results of Pulse have been included in the Company’s consolidated financial statements. Refer to Note 19—Business Acquisitions for further details.

Investments in Companies Accounted for Using the Equity or Cost Method

Investments in other non-consolidated entities are accounted for using the equity method or cost basis depending upon the level of ownership and/or the Company’s ability to exercise significant influence over the operating and financial policies of the investee. When the equity method is used, investments are recorded at original cost and adjusted periodically to recognize the Company’s proportionate share of the investees’ net income or losses after the date of investment. When net losses from an investment accounted for under the equity method exceed its carrying amount, the investment balance is reduced to zero and additional losses are not provided for as the Company is not obligated to provide additional capital. The Company resumes accounting for the investment under the equity method if the entity subsequently reports net income and the Company’s share of that net income exceeds the share of net losses not recognized during the period the equity method was suspended.

When an investment accounted for using the equity method issues its own shares, the subsequent reduction in the Company’s proportionate interest in the investee is reflected in equity as an adjustment to paid-in-capital. The

Company evaluates its investments in companies accounted for by the equity or cost method for impairment when there is evidence or indicators that a decrease in value may be other than temporary.

In December of 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 is accounted as an equity method investment. The Company has presented its proportion of HAPSMobile’s net loss in equity method investment loss, net of tax in the consolidated statement of operations. The carrying value of the investment in HAPSMobile was recorded in other assets, long-term. Refer to Note 8 – Equity Method Investments for further details.

In July 2019, the Company made its initial capital contribution to a limited partnership fund focusing on highly relevant technologies and start-up companies serving defense and industrial markets. The Company accounts for investments in limited partnerships as equity method investments as the Company is deemed to have influence when it holds more than a minor interest. Refer to Note 8 – Equity Method Investments for further details.

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 research and development (“R&D”), on a consolidated basis for the Company’s continuing operations. Accordingly, the Company operates its business as a single reportable segment.

Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of: inventory, available-for-sale securities, acquired intangibles, goodwill, deferred tax assets and liabilities, useful lives of property, plant and equipment, medical and dental liabilities, warranty liabilities, long-term incentive plan liabilities and estimates of anticipated contract costs and transaction price utilized in the revenue recognition process. Actual results could differ from those estimates.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation. Specifically, the Company’s existing intangible assets have been reclassified from other assets to intangibles, net on the consolidated balance sheet for all periods presented.

Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less at the time of purchase to be cash equivalents. The Company’s cash equivalents are comprised of money market funds, certificates of deposit of major financial institutions, and U.S. Treasury bills.

Investments

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

Unrealized gains and losses are excluded from earnings and reported as a separate component of stockholders’ equity, net of deferred income taxes for available-for-sale investments.

Gains and losses realized on the disposition of investment securities are determined on the specific identification basis and credited or charged to income. Premium and discount on investments are amortized and accreted using the interest method and charged or credited to investment income.

Management determines the appropriate classification of securities at the time of purchase and re-evaluates such designation as of each balance sheet date.

Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. On a quarterly basis, the Company considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds its fair value, the Company evaluates, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and its intent and ability to hold the investment to maturity. The Company also considers potential adverse conditions related to the financial health of the issuer based on rating agency actions. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in earnings and a new cost basis in the investment is established.

Fair Values of Financial Instruments

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

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, municipal bonds, U.S. government securities, U.S. government-guaranteed agency securities, U.S. government sponsored agency debt securities, highly rated commercial paper, highly rated corporate bonds, and accounts receivable. The Company currently invests the majority of its cash in municipal bonds, U.S. government securities, U.S. government-guaranteed agency securities, U.S. government sponsored agency debt securities and highly rated corporate bonds. The Company’s revenue and accounts receivable are with a limited number of corporations and governmental entities. In the aggregate, 61%, 58% and 58% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2020, 2019 and 2018, respectively. These agencies accounted for 62% and 26% of the accounts receivable balances at April 30, 2020 and 2019, respectively. One such agency, the U.S. Army, accounted for 32%, 28% and 19% of the Company’s consolidated revenue for the years ended April 30, 2020, 2019 and 2018, respectively. The Company performs ongoing credit evaluations of its commercial customers and maintains an allowance for potential losses.

Accounts Receivable, Unbilled Receivables and Retentions

Accounts receivable represents primarily U.S. government and allied foreign governments, and to a lesser extent commercial receivables, net of allowances for doubtful accounts. Unbilled receivables represent costs in excess of billings on incomplete contracts and, where applicable, accrued profit related to government long-term contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables are considered contract assets.

Retentions represent amounts withheld by customers until contract completion. At April 30, 2020 and 2019, the retention balances were $717,000 and $1,102,000, respectively. The Company determines the allowance for doubtful accounts based on historical customer experience and other currently available evidence. When a specific account is deemed uncollectible, the account is written off against the allowance. The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance; such losses have historically been within management’s expectations. An account is deemed past due based on contractual terms rather than on how recently payments have been received.

Inventories

Inventories are stated at the lower of cost (using the weighted average costing method) or net realizable value. Inventory write-offs and write-down provisions are provided to cover risks arising from slow-moving items or technological obsolescence and for market prices lower than cost. The Company periodically evaluates the quantities on hand relative to current and historical selling prices and historical and projected sales volume. Based on this evaluation, provisions are made to write inventory down to its net realizable value.

Long-Lived Assets

Property and equipment are carried at cost. Depreciation of property and equipment, including amortization of leasehold improvements, are provided using the straight-line method over the following estimated useful lives:


Machinery and equipment	2 - 7	years
Computer equipment and software	2 - 5	years
Furniture and fixtures	3 - 7	years
Leasehold improvements	Lesser of useful life or term of lease

Maintenance, repairs and minor renewals are charged directly to expense as incurred. Additions and betterments to property and equipment are capitalized at cost. When the Company disposes of assets, the applicable costs and accumulated depreciation and amortization thereon are removed from the accounts and any resulting gain or loss is included in selling, general and administrative (“SG&A”) expense in the period incurred.

The Company reviews the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The estimated future cash flows are based upon, among other things, assumptions about expected future operating performance, and may differ from actual cash flows. If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. During the three months ended April 30, 2019, the Company recorded an impairment loss of $4,398,000 related to the long-lived assets of its commercial UAS Quantix solution. Refer to Note 7 – Property and equipment, net.

Intangibles Assets — Acquired in Business Combinations

The Company performs valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and allocates the purchase price of the acquired business to the respective net tangible and intangible assets. Acquired intangible assets include technology, in-process research and development, customer relationships, trademarks and tradenames, and non-compete agreements. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Intangible assets are amortized over their estimated useful lives using the straight-line method which approximates the pattern in which the economic benefits are consumed. The estimated useful life for the Company’s intangible assets are as follows:


Technology	6	years
Licenses	3	years
Customer relationships	3 - 5	years
In-process research and development	3	years
Non-compete agreements	Contractual term

The Company monitors conditions related to these assets to determine whether events and circumstances warrant a revision to the remaining amortization period. The Company tests its intangible assets with finite lives for potential impairment whenever management concludes events or changes in circumstances indicate that the carrying

amount may not be recoverable. The original estimate of an asset's useful life and the impact of an event or circumstance on either an asset's useful life or carrying value involve significant judgment.

Goodwill

Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill is tested for impairment annually during the fourth quarter of the Company’s fiscal year or when events or circumstances change in a manner that indicates goodwill might be impaired. Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business or political climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to projected future results of operations.

Product Warranty

The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred. Product warranty reserves are recorded in other current liabilities.

Accrued Sales Commissions

As of April 30, 2020 and 2019, the Company accrued sales commissions in other current liabilities of $2,842,000 and $1,301,000, respectively.

Self-Insurance Liability

The Company is self-insured for employee medical claims, subject to individual and aggregate stop loss policies. The Company estimates a liability for claims filed and incurred but not reported based upon recent claims experience and an analysis of the average period of time between the occurrence of a claim and the time it is reported to and paid by the Company. As of April 30, 2020 and 2019, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $753,000 and $965,000, respectively.

Income Taxes

Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. The provision for income taxes reflects the taxes to be paid for the period and the change during the period in the deferred income tax assets and liabilities. The Company records a valuation allowance to reduce the deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. For uncertain tax positions, the Company determines whether it is “more likely than not” that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. For those tax positions where it is “not more likely than not” that a tax benefit will be sustained, no tax benefit is recognized. Where applicable, associated interest and penalties are also recorded.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making 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, and limitation on the deductibility of certain executive compensation.

In accordance with U.S. GAAP as determined by ASC 740, Income Taxes, the Company is required to record the effects of tax law changes in the period enacted. 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 year ended April 30, 2018.

On March 27, 2020, the United States enacted the Coronavirus Aid, Relief and Economic Security Act (CARES Act) in an effort to curtail the effect of COVID-19. While the CARES Act provides sweeping tax changes in response to the COVID-19 pandemic, some of the more significant provisions are not expected to impact the Company’s financial statements including the removal of certain limitations on utilization of net operating losses, increasing the loss carryback period for certain losses to five years, and increasing the ability to deduct interest expense. The Company does expect to benefit in the future, however, from the technical correction made to the previously enacted Tax Cuts and Jobs Act in relation to tax depreciation of qualified improvement property.

Customer Advances and Amounts in Excess of Cost Incurred

The Company receives advances, performance-based payments and progress payments from customers that may exceed costs incurred on certain contracts, including contracts with agencies of the U.S. government resulting in contract liabilities. These advances are classified as advances from customers and will be offset against billings.

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, Revenue from Contracts with Customers (“ASC 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 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 reasonable 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, which accounted for 42% of revenue during our fiscal year ended April 30, 2020, or at a point in time, 58%. 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 tactical missile systems (“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 April 30, 2020, the Company had approximately $208,063,000 of remaining performance obligations under contracts with its customers, which the Company also refers to as backlog. The Company currently expects to recognize approximately 96% of the remaining performance obligations as revenue in fiscal 2021, an additional 4% in fiscal 2022, 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 years ended April

30, 2020, 2019 or 2018. During the year ended April 30, 2020, the Company revised its estimates of the total expected costs to complete a TMS contract and a contract associated with a design and development agreement. The aggregate impact of these adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was a decrease of approximately $1,403,000 and an increase of approximately $1,099,000, respectively. No adjustment on any one contract was material to the Company’s consolidated financial statements for the years ended April 30, 2019. During the year ended April 30, 2018, the Company revised its estimates of the total expected costs to complete a TMS variant contract. The aggregate impact of these adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods was a decrease of approximately $1,255,000.

Revenue by Category

The following tables present the Company’s revenue disaggregated by major product line, contract type, customer category and geographic location (in thousands):


	Year Ended April 30,
Revenue by major product line/program	2020		2019		2018
Small UAS	$	225,888	$	183,157	$	167,534
TMS		63,781		65,087		63,406
HAPS		60,864		55,407		29,593
Other		16,763		10,623		7,891
Total revenue	$	367,296	$	314,274	$	268,424


	Year Ended April 30,
Revenue by contract type	2020		2019		2018
FFP	$	269,917	$	224,090	$	212,976
CPFF		94,176		89,485		55,203
T&M		3,203		699		245
Total revenue	$	367,296	$	314,274	$	268,424


	Year Ended April 30,
Revenue by customer category	2020		2019		2018
U.S. government:	$	225,341	$	182,586	$	156,996
Non-U.S. government		141,955		131,688		111,428
Total revenue	$	367,296	$	314,274	$	268,424


	Year Ended April 30,
Revenue by geographic location	2020		2019		2018
Domestic	$	201,046	$	151,124	$	142,158
International		166,250		163,150		126,266
Total revenue	$	367,296	$	314,274	$	268,424

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 years ended April 30, 2020 or 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 years ended April 30, 2020, 2019, and 2018 that was included in contract liability balances at the beginning of each year were $1,670,000, $1,587,000 and $977,000, respectively.

Stock-Based Compensation

Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period of the respective award. No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and are forfeited.

Long-Term Incentive Awards

For long-term incentive awards outstanding as of April 30, 2020, the awards include time-based awards which vest equally over three years and performance-based awards which vest based on the achievement of a target payout established at the beginning of each performance period. The actual payout at the end of the performance period is calculated based upon the Company’s achievement of such targets. Payouts are made in shares of restricted stock which become immediately vested upon issuance.

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.

Research and Development

Internally funded research and development costs (“IRAD”), sponsored by the Company relate to both U.S. government products and services and those for commercial and foreign customers. IRAD costs for the Company are recoverable and allocable under government contracts in accordance with U.S. government procurement regulations.

Customer-funded research and development costs are incurred pursuant to contracts (revenue arrangements) to perform research and development activities according to customer specifications. These costs are direct contract costs and are expensed to cost of sales when the corresponding revenue is recognized, which is generally as the research and development services are performed. Revenue from customer-funded research and development was approximately $80,934,000, $76,407,000 and $52,489,000 for the years ended April 30, 2020, 2019 and 2018, respectively. The related

cost of sales for customer-funded research and development totaled approximately $56,440,000, $54,824,000 and $36,855,000 for the years ended April 30, 2020, 2019 and 2018, respectively.

In January 2017, the Company executed a cost sharing Other Transaction Agreement type contract funded by the US Federal Government to perform certain system design, development and functional testing activities specific to a new prototype UAS on a best-efforts basis. Costs of $21,933,000 will be reimbursed to the Company as the activities are performed, while the Company is responsible for funding a minimum of $11,225,000. The term of the agreement is through December 2020. The Company has determined that the contract meets the criteria of ASC 912-730-05 Contractors – Federal Government and, therefore, all reimbursements are recorded as an offset to research and development expense in the consolidated statements of income. Reimbursements under the contract were $8,102,000, $5,936,000 and $4,188,000 for the fiscal years ended April 30, 2020, 2019 and 2018, respectively.

Lease Accounting

The Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), along with several additional clarification ASU’s issued during 2018 (“New Lease Standard”) effective May 1, 2019. The New Lease Standard requires the lessee to recognize the assets and liabilities for the rights and obligations created by leases. At contract inception the Company determines whether the contract is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are recorded in operating lease right-of-use assets, current operating lease liabilities and non-current operating lease liabilities.

Prior to adoption of the New Lease Standard, the Company accounted for its leases and subsequent amendments as operating leases or capital leases for financial reporting purposes. Certain operating leases contained rent escalation clauses, which were recorded on a straight-line basis over the initial term of the lease with the difference between the rent paid and the straight-line rent recorded as a deferred rent liability. Lease incentives received from landlords were recorded as deferred rent liabilities and are amortized on a straight-line basis over the lease term as a reduction to rent expense. Deferred rent liabilities were approximately $1,173,000 and $1,536,000 as of April 30, 2019 and 2018, respectively.

Advertising Costs

Advertising costs are expensed as incurred. Advertising expenses included in SG&A expenses were approximately $934,000, $897,000 and $526,000 for the years ended April 30, 2020, 2019 and 2018, respectively.

Foreign Currency Transactions

Foreign currency transaction gains and losses are charged or credited to earnings as incurred. For the fiscal years ended April 30, 2020, 2019 and 2018, foreign currency transaction gains and losses that are included in other income (expense) in the accompanying statements of income were $(1,000), $(38,000), and $87,000, respectively.

Earnings Per Share

Basic earnings per share are computed using the weighted-average number of common shares outstanding and excludes any anti-dilutive effects of options, restricted stock and restricted stock units. The dilutive effect of potential common shares outstanding is included in diluted earnings per share.

The reconciliation of diluted to basic shares is as follows:


	Year Ended April 30,
	2020		2019		2018

Continuing operations attributable to AeroVironment, Inc.	$	41,339,000	$	41,912,000	$	21,750,000
Discontinued operations, net of tax		(265,000)		5,526,000		(3,887,000)
Net income attributable to AeroVironment, Inc.	$	41,074,000	$	47,438,000	$	17,863,000
Denominator for basic earnings per share:
Weighted average common shares		23,806,208		23,663,410		23,471,241
Dilutive effect of employee stock options, restricted stock and restricted stock units		281,959		408,303		342,531
Denominator for diluted earnings per share		24,088,167		24,071,713		23,813,772

During the years ended April 30, 2020, 2019 and 2018, certain options, shares of restricted stock and restricted stock units were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive. The number of options, restricted stock and restricted stock units which met this anti-dilutive criterion was approximately 3,000, 18,000 and 22,000 for the years ended April 30, 2020, 2019 and 2018, respectively.

Recently Adopted Accounting Standards

Effective May 1, 2019, the Company adopted the New Lease Standard. This New Lease Standard requires the lessee to recognize the assets and liabilities for the rights and obligations created by leases. The Company elected to adopt the New Lease Standard using the modified retrospective transition approach through a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As such the Company did not recast comparative consolidated financial statements. The Company also elected 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 elected the short-term lease exception to not record right-of-use assets and lease liabilities for leases with a term less than 12 months and the practical expedient to not separate lease and non-lease components for property. Adoption of the New Lease Standard resulted in the recording of lease assets and lease liabilities on the consolidated balance sheet with no cumulative impact to retained earnings and did not have a material impact on the consolidated statement of cash flows. Refer to Note 10—Leases for additional information required as part of the adoption of the New Lease Standard.

In July 2018, the FASB issued ASU 2018-09, “Codification Improvements” (“ASU 2018-09”). ASU 2018-09 provides technical corrections, clarifications and other improvements across a variety of accounting topics. Among the clarifications, ASU 2018-09 clarifies that an entity should recognize excess tax benefits in the period in which the amount of the deduction is determined. This includes deductions that are taken on the entity’s return in a different period from when the event that gives rise to the tax deduction occurs and the uncertainty about whether the entity will receive a tax deduction and the amount of the tax deduction is resolved. Certain amendments were applicable immediately while others provide transition guidance and are effective in the Company’s first quarter of fiscal year 2020. The Company adopted ASU 2018-09 on May 1, 2019 using the modified retrospective method. The adoption of ASU 2018-09 resulted in a cumulative adjustment to increase retained earnings by $665,000 at May 1, 2019.

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326). This ASU, and several related amendments the FASB has issued to provide additional supplemental guidance on certain aspects of the original pronouncement, 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. The Company plans to adopt the guidance effective May 1, 2020 using the modified retrospective approach. The Company does not believe the guidance will have a material impact the Company’s allowance for doubtful accounts for accounts receivable. The Company is still evaluating the potential impact on its consolidated financial statements for remaining financial instruments within the scope of this guidance, primarily the debt securities in the Company’s investment portfolio.

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 plans to adopt the guidance effective May 1, 2020 using the prospective approach. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The guidance is effective for fiscal years beginning after December 15, 2020 and interim periods therein, with early adoption permitted. The adoption method is dependent on the specific amendment included in this update as certain amendments require retrospective adoption, modified retrospective adoption, an option of retrospective or modified retrospective, and prospective adoption. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

In January 2020, the FASB issued ASU 2020-01, Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (Topic 321, Topic 323, and Topic 815). This ASU clarifies accounting certain topics impacted by Topic 321 Investments—Equity Securities. These topics include measuring equity securities using the measurement alternative, how the measurement alternative should be applied to equity method accounting, and certain forward contracts and purchased options which would be accounted for under the equity method of accounting upon settlement or exercise. The guidance is effective for fiscal years beginning after December 15, 2020 and interim periods therein, with early adoption permitted. The amendments should be adopted prospectively. The Company is evaluating the potential impact of this adoption on its consolidated financial statements.

Organization and Significant Accounting Policies - Recently Adopted Accounting Standards (Details) $ in Thousands	May 01, 2019 USD ($)
Leases
Lease, Practical Expedient, Use of Hindsight [true false]	true
Lease, Practical Expedient, Lessor Single Lease Component [true false]	true
ASU 2018-09
Leases
Retained earnings, continuing operations	$ 665

Income Taxes Other (Details) - USD ($)	12 Months Ended
Income Taxes Other (Details) - USD ($)	Apr. 30, 2020	Apr. 30, 2019
Unrecognized tax benefits
State net operating loss carryforwards	$ 10,000
Foreign net operating loss carryforwards	660,000
Foreign net operating losses subject to expiration	320,000
Activity related to gross unrecognized tax benefits
Beginning balance	12,593,000	$ 11,170,000
Increases related to prior year tax positions	62,000	216,000
Increases related to current year tax positions	1,971,000	1,756,000
Decreases related to lapsing of statute of limitations	(279,000)	(549,000)
Ending balance	14,347,000	12,593,000
Reversal of uncertain tax position reserve, including interest	279,000
Accrued interest and penalties related to unrecognized tax positions	21,000	$ 18,000
Statute of limitations expiration
Unrecognized tax benefits
Estimated decrease in unrecognized tax benefits in the next twelve months	$ (53,600)

Accumulated Other Comprehensive Income and Reclassifications Adjustments (Tables)

12 Months Ended

Apr. 30, 2020

Accumulated Other Comprehensive Income and Reclassifications Adjustments

Schedule of components of accumulated other comprehensive loss

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


					Total Accumulated
					Other
	Available-for-Sale		Foreign Currency		Comprehensive
	Securities		Translation Adjustments		Loss
Total accumulated other comprehensive loss balance as of April 30, 2019	$	—	$	2	$	2
Changes in foreign currency translation adjustments		—		276		276
Unrealized gains, net of $14 of taxes		50		—		50
Total accumulated other comprehensive loss balance as of April 30, 2020	$	50	$	278	$	328

Business Acquisitions

12 Months Ended

Apr. 30, 2020

Business Acquisitions

Business Acquisitions

19. Business Acquisitions

On June 10, 2019, the Company purchased 100% of the issued and outstanding member units of Pulse pursuant to the terms of the Pulse Purchase Agreement. The Company’s acquisition of Pulse’s helicopter UAS product family strengthens AeroVironment’s leading family of fixed-wing small unmanned aircraft systems and increases the mission capabilities of AeroVironment’s family of systems.

Pursuant to the Pulse Purchase Agreement, at closing, the Company paid $20,650,000 in cash, less closing indebtedness and transaction costs as defined in the Pulse Purchase Agreement, less a $250,000 retention to cover any post-closing indemnification claims, and less a $1,250,000 holdback amount, with the retention and holdback to be released to the member unit holders of Pulse, less any amounts paid or reserved, 18 months after the closing of the transactions in accordance with the terms of the Pulse Purchase Agreement. The closing cash consideration included the payoff of the outstanding indebtedness of Pulse as of the closing date. The Company financed the acquisition entirely from available cash on hand.

In addition to the consideration paid at closing, the acquisition of Pulse includes contingent consideration arrangements that require additional consideration to be paid by the Company to the sellers of Pulse if two specified research and development milestones are achieved by December 10, 2021 and the continued employment of specified employees. Amounts are payable upon the achievement of the milestones. The range of the undiscounted amounts the Company could pay under each of the contingent consideration agreements is zero or $2,500,000 ($5,000,000 in total if both milestones are achieved and specific key employees continued employment). The fair value of the contingent consideration recognized on the acquisition date of $1,703,000 was estimated by applying the income approach. That measure is based on significant Level 3 inputs not observable in the market. Key assumptions include (1) a discount rate of 4.5% and (2) the probability that each of the milestones will be achieved.

During the year ended April 30, 2020, one of the research and development milestones was achieved, and the requirements for the payout of remaining contingent consideration were concluded to not have been met. As a result, the Company recorded a gain of $832,000 which was recorded in selling, general, and administrative expense in the consolidated statements of income. On February 26, 2020, $2,500,000 of contingent consideration was paid to the sellers for the achieved milestone.

The following table summarizes the provisional allocation of the purchase price over the estimated fair value of the assets and liabilities assumed in the acquisition of Pulse (in thousands):


	June 10,
	2019
Technology	$	14,950
Goodwill		6,340
In-process R&D		550
Inventory		334
Non-compete agreements		320
Other assets, net of liabilities assumed		(614)
Total net identified assets acquired	$	21,880

Fair value of consideration:
Cash	$	18,677
Holdback		1,250
Retention		250
Contingent consideration		1,703
Total	$	21,880

Determining the fair value of the intangible assets acquired requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. The fair value of the intangibles assets was determined using a discounted cash flow analysis, which were based on the Company’s best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, anticipated customer demand, changes in working capital, long term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results.

The goodwill is attributable to the synergies the Company expects to achieve through leveraging the acquired technology to its existing customers, the workforce of Pulse and expected future customers in the helicopter UAS market. For tax purposes the acquisition was treated as an asset purchase and the goodwill is deductible ratably over a period of fifteen years.

Supplemental Pro Forma Information (unaudited)

Pulse revenue for the year ended April 30, 2020 since acquisition on June 10, 2019 was $6,607,000. Other than the aforementioned revenue and intangible asset amortization expense of $2,461,000 for the year ended April 30, 2020 since the acquisition on June 10, 2019, the Pulse financial results were not significant. The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2018 (in thousands):


	Year Ended
	April 30,		April 30,
	2020		2019
Revenue	$	367,523	$	316,878
Net income attributable to AeroVironment, Inc.	$	41,481	$	43,204

The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings.

These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 28, 2018, reflecting the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from May 1, 2018 with the consequential tax effects, and including the results of Pulse prior to acquisition.

The Company did not incur significant acquisition-related expenses for the year ended April 30, 2020. These expenses are included in selling, general and administrative, research and development, and product cost of sales on the Company’s consolidated income statement.

The unaudited pro forma supplemental information is based on estimates and assumptions, which the Company believes are reasonable and are not necessarily indicative of the results that have been realized had the acquisitions been consolidated in the tables above as of May 1, 2018, nor are they indicative of results of operations that may occur in the future.

Organization and Significant Accounting Policies - Revenue by Category (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Apr. 30, 2020	Jan. 31, 2020	Oct. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Jan. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Disaggregation of revenue
Revenue	$ 135,223	$ 61,891	$ 83,271	$ 86,911	$ 87,930	$ 75,322	$ 72,979	$ 78,043	$ 367,296	$ 314,274	$ 268,424
Contract Liability
Disaggregation of revenue
Revenue									1,670	1,587	977
Domestic
Disaggregation of revenue
Revenue									201,046	151,124	142,158
International
Disaggregation of revenue
Revenue									166,250	163,150	126,266
U.S. government
Disaggregation of revenue
Revenue									225,341	182,586	156,996
Non-U.S. government
Disaggregation of revenue
Revenue									141,955	131,688	111,428
FFP
Disaggregation of revenue
Revenue									269,917	224,090	212,976
CPFF
Disaggregation of revenue
Revenue									94,176	89,485	55,203
T&M
Disaggregation of revenue
Revenue									3,203	699	245
Small UAS
Disaggregation of revenue
Revenue									225,888	183,157	167,534
TMS
Disaggregation of revenue
Revenue									63,781	65,087	63,406
HAPS
Disaggregation of revenue
Revenue									60,864	55,407	29,593
Other
Disaggregation of revenue
Revenue									$ 16,763	$ 10,623	$ 7,891

Related Party Transactions

12 Months Ended

Apr. 30, 2020

Related Party Transactions

Related Party Transactions

17. Related Party Transactions

Pursuant to a consulting agreement, the Company paid a board member approximately $59,000, $55,000 and $48,000 for fiscal years ended April 30, 2020, 2019 and 2018, respectively, for consulting services independent of his board service.

Concurrent with the formation of HAPSMobile, the Company executed a Design and Development Agreement (the “DDA”) with HAPSMobile. Under the DDA and related efforts, the Company will use its best efforts, up to a maximum value of $166,108,000, 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 $60,864,000, $55,407,000 and $29,594,000 for the fiscal years ended April 30, 2020, 2019 and 2018, respectively. At April 30, 2020 and 2019, the Company had unbilled related party receivables from HAPSMobile of

$15,779,000 and $9,028,000 recorded in unbilled receivables and retentions on the consolidated balance sheet, respectively. As of April 30, 2020, the Company owned approximately a 7% stake. Refer to Note 8 – Equity Method Investments for further details.

Related Party Transactions (Details)	12 Months Ended
Related Party Transactions (Details)	Apr. 30, 2020 USD ($)	Apr. 30, 2019 USD ($)	Apr. 30, 2018 USD ($)	Dec. 04, 2019 USD ($)	Dec. 04, 2019 JPY (¥)	May 11, 2019	May 10, 2019 USD ($)	May 10, 2019 JPY (¥)	Feb. 09, 2019	Feb. 08, 2019	Jan. 29, 2019 USD ($)	Jan. 29, 2019 JPY (¥)	Apr. 17, 2018 USD ($)	Apr. 17, 2018 JPY (¥)	Dec. 27, 2017 USD ($)	Dec. 27, 2017 JPY (¥)
Long-Term Incentive Awards
Revenue	$ 60,864,000	$ 55,407,000	$ 29,594,000
Unbilled related party receivables	15,779,000	9,028,000
Design and Development Agreement
Long-Term Incentive Awards
Maximum net value	166,108,000
Revenue	60,864,000	55,407,000	29,594,000
Board member \| Consulting agreement
Long-Term Incentive Awards
Amount paid to related party	$ 59,000	55,000	$ 48,000
HAPSMobile
Long-Term Incentive Awards
Payments for purchase of interest				$ 4,982,000	¥ 540,050,000		$ 4,569,000	¥ 500,000,000			$ 1,926,000	¥ 209,500,000	$ 1,407,000	¥ 150,000,000	$ 1,860,000	¥ 210,000,000
Ownership percentage	7.00%			7.00%	7.00%	5.00%	10.00%	10.00%	10.00%	5.00%					5.00%	5.00%
Unbilled receivables and retention \| HAPSMobile
Long-Term Incentive Awards
Unbilled related party receivables	$ 15,779,000	$ 9,028,000

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Consolidated Statements of Comprehensive Income
Net income	$ 41,070	$ 47,419	$ 17,647
Other comprehensive income:
Change in foreign currency translation adjustments	276	(34)	36
Unrealized gain on investments, net of deferred tax expense of $14, $51 and $25 for the fiscal years ended 2020, 2019 and 2018, respectively	50	57	70
Total comprehensive income	41,396	47,442	17,753
Net loss attributable to noncontrolling interest	4	19	216
Comprehensive income attributable to AeroVironment, Inc.	$ 41,400	$ 47,461	$ 17,969

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

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

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

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

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

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

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

Investments in Companies Accounted for Using the Equity Method (Tables)

12 Months Ended

Apr. 30, 2020

Investments in Companies Accounted for Using the Equity Method

Summarized financial information of the equity method investments

Summarized financial information of the equity method investments are as follows:


	April 30,
	2020		2019
	(In thousands)
Current assets	$	67,387	$	31,746
Noncurrent assets		170,602		—
Current liabilities		72,505		11,757

	Year Ended April 30,
	2020		2019		2018
	(In thousands)
Revenues	$	25	$	—	$	—
Gross loss		(1,331)		—		—
Realized and unrealized losses on investments		(7,028)		—		—
Net loss		(85,818)		(63,107)		(25,666)

Organization and Significant Accounting Policies (Policies)

12 Months Ended

Apr. 30, 2020

Organization and Significant Accounting Policies

Principles of Consolidation

Principles of Consolidation

Investments in Companies Accounted for Using the Equity or Cost Method

Investments in Companies Accounted for Using the Equity or Cost Method

Company evaluates its investments in companies accounted for by the equity or cost method for impairment when there is evidence or indicators that a decrease in value may be other than temporary.

In July 2019, the Company made its initial capital contribution to a limited partnership fund focusing on highly relevant technologies and start-up companies serving defense and industrial markets. The Company accounts for investments in limited partnerships as equity method investments as the Company is deemed to have influence when it holds more than a minor interest. Refer to Note 8 – Equity Method Investments for further details.

Use of Estimates

Use of Estimates

Reclassifications

Reclassifications

Cash Equivalents

Cash Equivalents

Concentration of Credit Risk

Concentration of Credit Risk

Accounts Receivable, Unbilled Receivables and Retentions

Accounts Receivable, Unbilled Receivables and Retentions

Inventories

Inventories

Long-Lived Assets

Long-Lived Assets


Machinery and equipment	2 - 7	years
Computer equipment and software	2 - 5	years
Furniture and fixtures	3 - 7	years
Leasehold improvements	Lesser of useful life or term of lease

Product Warranty

Product Warranty

Accrued Sales Commissions

Accrued Sales Commissions

As of April 30, 2020 and 2019, the Company accrued sales commissions in other current liabilities of $2,842,000 and $1,301,000, respectively.

Self-Insurance Liability

Self-Insurance Liability

Income Taxes

Income Taxes

Customer Advances and Amounts in Excess of Cost Incurred

Customer Advances and Amounts in Excess of Cost Incurred

Revenue Recognition

Revenue Recognition

Performance Obligations

Contract Estimates

Revenue by Category

The following tables present the Company’s revenue disaggregated by major product line, contract type, customer category and geographic location (in thousands):


	Year Ended April 30,
Revenue by major product line/program	2020		2019		2018
Small UAS	$	225,888	$	183,157	$	167,534
TMS		63,781		65,087		63,406
HAPS		60,864		55,407		29,593
Other		16,763		10,623		7,891
Total revenue	$	367,296	$	314,274	$	268,424


	Year Ended April 30,
Revenue by contract type	2020		2019		2018
FFP	$	269,917	$	224,090	$	212,976
CPFF		94,176		89,485		55,203
T&M		3,203		699		245
Total revenue	$	367,296	$	314,274	$	268,424


	Year Ended April 30,
Revenue by customer category	2020		2019		2018
U.S. government:	$	225,341	$	182,586	$	156,996
Non-U.S. government		141,955		131,688		111,428
Total revenue	$	367,296	$	314,274	$	268,424


	Year Ended April 30,
Revenue by geographic location	2020		2019		2018
Domestic	$	201,046	$	151,124	$	142,158
International		166,250		163,150		126,266
Total revenue	$	367,296	$	314,274	$	268,424

Contract Balances

Segments

Segments

Investments

Investments

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

Unrealized gains and losses are excluded from earnings and reported as a separate component of stockholders’ equity, net of deferred income taxes for available-for-sale investments.

Management determines the appropriate classification of securities at the time of purchase and re-evaluates such designation as of each balance sheet date.

Fair Values of Financial Instruments

Fair Values of Financial Instruments

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

Intangible Assets-Acquired in Business Combinations

Intangibles Assets — Acquired in Business Combinations


Technology	6	years
Licenses	3	years
Customer relationships	3 - 5	years
In-process research and development	3	years
Non-compete agreements	Contractual term

Goodwill

Goodwill

Stock-Based Compensation

Stock-Based Compensation

Long-Term Incentive Awards

Long-Term Incentive Awards

Research and Development

Research and Development

cost of sales for customer-funded research and development totaled approximately $56,440,000, $54,824,000 and $36,855,000 for the years ended April 30, 2020, 2019 and 2018, respectively.

Lease Accounting

Lease Accounting

Advertising Costs

Advertising Costs

Foreign Currency Transactions

Foreign Currency Transactions

Earnings Per Share

Earnings Per Share

The reconciliation of diluted to basic shares is as follows:


	Year Ended April 30,
	2020		2019		2018

Continuing operations attributable to AeroVironment, Inc.	$	41,339,000	$	41,912,000	$	21,750,000
Discontinued operations, net of tax		(265,000)		5,526,000		(3,887,000)
Net income attributable to AeroVironment, Inc.	$	41,074,000	$	47,438,000	$	17,863,000
Denominator for basic earnings per share:
Weighted average common shares		23,806,208		23,663,410		23,471,241
Dilutive effect of employee stock options, restricted stock and restricted stock units		281,959		408,303		342,531
Denominator for diluted earnings per share		24,088,167		24,071,713		23,813,772

Recently Issued Accounting Standards

Recently Adopted Accounting Standards

Recently Issued Accounting Standards

Stock-Based Compensation Non-Vested Stock Options (Details) - USD ($)	12 Months Ended			36 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2020
Options
Options granted (in shares)	0	0	0
Weighted Average Grant Date Fair value
Unrecognized compensation cost related to non-vested stock awards	$ 7,670,000			$ 7,670,000
Period over which unrecognized compensation cost is expected to be recognized	2 years
Weighted average period over which unrecognized compensation cost is expected to be recognized	2 years 6 months
Exercise of stock options	$ 100,000	$ 71,000	$ 2,705,000
Excess tax benefit from stock-based compensation				$ 0
Stock options
Options
Non-vested at beginning of year (in shares)	39,510
Vested (in shares)	(23,510)
Non-vested at end of year (in shares)	16,000	39,510		16,000
Weighted Average Grant Date Fair value
Non-vested at beginning of year (in dollars per share)	$ 10.90
Vested (in dollars per share)	11.40
Non-vested at end of year (in dollars per share)	$ 10.16	$ 10.90		$ 10.16
Exercise of stock options	$ 101,000	$ 67,000	2,576,000
Fair value of shares vested	$ 4,900,000	$ 4,756,000	$ 3,328,000

Leases (Tables)

12 Months Ended

Apr. 30, 2020

Leases

Schedule of components of lease costs


	Year Ended
	April 30,
	2020
Operating lease cost	$	4,574
Short term lease cost		500
Variable lease cost		987
Sublease income		(287)
Total lease costs, net	$	5,774

Schedule of supplemental lease information

Supplemental lease information were as follows:


	Year Ended
	April 30,
	2020
	(In thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,897
Right-of-use assets obtained in exchange for new lease liabilities	$	13,022

Weighted average remaining lease term		34 months
Weighted average discount rate		3.7%

Schedule of maturities of operating lease liabilities - ASC 842

Maturities of operating lease liabilities as of April 30, 2020 were as follows (in thousands):


2021	$	4,222
2022		3,910
2023		2,171
2024		1,055
2025		62
Thereafter		—
Total lease payments		11,420
Less: imputed interest		(1,207)
Total present value of operating lease liabilities	$	10,213

Schedule of maturities of operating lease liabilities - ASC 840

Maturities of operating lease liabilities as of April 30, 2019 were as follows:


2020	$	5,298
2021		3,527
2022		2,723
2023		1,554
2024		953
Thereafter		—
Total lease payments	$	14,055

Leases - Components of lease costs (Details) $ in Thousands	12 Months Ended
Leases - Components of lease costs (Details) $ in Thousands	Apr. 30, 2020 USD ($)
Components of lease costs
Operating lease cost	$ 4,574
Short term lease cost	500
Variable lease cost	987
Sublease income	(287)
Total lease costs, net	$ 5,774

Changes in Accounting Estimates (Details) - Revision of estimate of total costs required to complete the contracts - Cumulative catch-up adjustment - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2018
Amount of revised aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods		$ 1,255
Design and development agreement
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods	$ 1,099
TMS contract
Amount of aggregate impact of adjustments in contract estimates on revenue related to performance obligations satisfied or partially satisfied in previous periods	$ (1,403)

Investments - Auction rate securities (Details) $ in Thousands	12 Months Ended
	Apr. 30, 2020 USD ($)
Available-For-Sale Securities
Fair value	$ 15,030
Minimum
Available For Sale Securities
Maturity period of available-for-sale securities	1 year
Maximum
Available For Sale Securities
Maturity period of available-for-sale securities	16 years

Commitments and Contingencies (Details) - USD ($)	12 Months Ended
Commitments and Contingencies (Details) - USD ($)	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2020
Future minimum lease payments under noncancelable operating leases
2020	$ 5,298,000
2021	3,527,000
2022	2,723,000
2023	1,554,000
2024	953,000
Total lease payments	14,055,000
Rental expense under operating leases	4,609,000	$ 4,011,000
Letters of credit outstanding	7,079,000		$ 2,716,000
Reserve for incurred cost claim audits	$ 93,000

Fair Value Measurements (Tables)

12 Months Ended

Apr. 30, 2020

Fair Value Measurements

Schedule of reconciliation between beginning and ending balances of items measured at fair value on recurring basis that used significant unobservable inputs (Level 3)

The Company’s financial assets measured at fair value on a recurring basis at April 30, 2020, were as follows (in thousands):


	Fair Value Measurement Using
			Significant
	Quoted prices in		other		Significant
	active markets for		observable		unobservable
	identical assets		inputs		inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Available-for-sale securities	$	—	$	58,095	$	—	$	58,095
Total	$	—	$	58,095	$	—	$	58,095


	Fair Value
	Measurements Using
	Significant
	Unobservable Inputs
Description	(Level 3)
Balance at May 1, 2019	$	—
Business acquisition		1,703
Transfers to Level 3		—
Total (gains) losses (realized or unrealized)
Included in product cost of sales		1,147
Included in selling, general and administrative		(703)
Included in research and development		353
Included in other comprehensive income		—
Settlements		(2,500)
Balance at April 30, 2020	$	—
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 or liabilities still held at April 30, 2020	$	—

Organization and Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Apr. 30, 2019
Accounts Receivable , Unbilled Receivables and Retentions
Retentions	$ 717	$ 1,102

Investments (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Apr. 30, 2019
Short-term investments:
Total short-term investments	$ 47,507	$ 150,487
Long-term investments:
Equity Method Investments.	4,442
Total long-term investments	15,030	9,386
Investment in limited partnership fund
Long-term investments:
Equity Method Investments.	4,442
Held to maturity securities
Short-term investments:
Total short-term investments		150,487
Long-term investments:
Total long-term investments		9,386
Held to maturity securities \| Municipal securities
Short-term investments:
Total short-term investments		5,332
Held to maturity securities \| U.S. government securities
Short-term investments:
Total short-term investments		63,205
Long-term investments:
Total long-term investments		7,404
Held to maturity securities \| Corporate bonds
Short-term investments:
Total short-term investments		81,950
Long-term investments:
Total long-term investments		$ 1,982
Available-for-sale securities
Short-term investments:
Total short-term investments	47,507
Long-term investments:
Total long-term investments	10,588
Available-for-sale securities \| Municipal securities
Short-term investments:
Total short-term investments	5,244
Long-term investments:
Total long-term investments	1,592
Available-for-sale securities \| U.S. government securities
Short-term investments:
Total short-term investments	33,771
Long-term investments:
Total long-term investments	8,996
Available-for-sale securities \| Corporate bonds
Short-term investments:
Total short-term investments	$ 8,492

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Consolidated Statements of Cash Flows
related party revenue	$ 14	$ 51	$ 25

Inventories, net (Tables)

12 Months Ended

Apr. 30, 2020

Inventories, net

Schedule of inventories


	April 30,
	2020		2019
Raw materials	$	15,988	$	16,792
Work in process		10,340		19,162
Finished goods		29,439		25,926
Inventories, gross		55,767		61,880
Reserve for inventory excess and obsolescence		(10,232)		(7,824)
Inventories, net	$	45,535	$	54,056

Inventories, net (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories, net (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Inventories, net
Raw materials	$ 15,988	$ 16,792
Work in process	10,340	19,162
Finished goods	29,439	25,926
Inventories, gross	55,767	61,880
Reserve for inventory excess and obsolescence	(10,232)	(7,824)
Inventories, net	45,535	54,056
Inventory reserve charge	5,377	$ 5,054	$ 2,758
UAS Quantix Solution
Inventories, net
Inventory reserve charge	$ 2,600

Investments - Amortized Cost and Fair Value of the Held-to-Maturity Securities by Contractual Maturity (Details) $ in Thousands	Apr. 30, 2020 USD ($)
Amortized cost of held-to-maturity securities by contractual maturity
Due within one year	$ 47,457
Due after one year through five years	10,575
Total	58,032
Fair value of held-to-maturity securities by contractual maturity
Due within one year	47,507
Due after one year through five years	10,588
Total	$ 58,095

Geographic Information

12 Months Ended

Apr. 30, 2020

Geographic Information

Geographic Information

20. Geographic Information

Sales to non-U.S. customers, including U.S. government foreign military sales in which an end user is a foreign government, accounted for 45%, 52% and 47% of revenue for each of the fiscal years ended April 30, 2020, 2019 and 2018, respectively.

Discontinued Operations

12 Months Ended

Apr. 30, 2020

Discontinued Operations.

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 and has been recorded in gain on sale of business, net of tax in the consolidated statements of income. During the year ended April 30, 2019, the Company recorded a reduction to the gain resulting from a working capital adjustment of $486,000. During the year ended April 30, 2020, the Company and Webasto engaged an independent accounting firm to resolve a working capital dispute with a maximum exposure of $922,000 pursuant to the terms of the Purchase Agreement. In June 2020, the independent accounting firm determined the final adjustment to the working capital dispute to be $341,000 which has been recorded net of tax as discontinued operations in the consolidated statements of income.

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 April 30, 2020. 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 a previously announced product 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. On August 16, 2019, the Company filed a counterclaim against Webasto seeking payment of the Holdback and declaratory relief regarding Webasto’s cancellation of an assigned contract. The Company believes that the allegations are generally meritless and is mounting 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. On August 14, 2019, Benchmark Electronics, Inc. (“Benchmark”), the company that assembled the products subject to the recall, served a demand for arbitration to the Company and Webasto, and a third-party part supplier pursuant to its contracts with the Company and Webasto, respectively. The Company filed a responsive pleading in the Benchmark arbitration on October 29, 2019, consisting of a general denial, affirmative defenses, and a reservation of the right to file counter-claims at a later date. Webasto challenged the validity of the Benchmark arbitration by filing an action in New York Superior Court. In December 2019, Webasto and Benchmark reached a settlement of their disputed claims. Benchmark withdrew its Notice of Arbitration against Webasto and the Company, but reserved its right to pursue indemnity claims against suppliers. The recall remains a significant part of the Webasto lawsuit.

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 $551,000 and $2,758,000 and has been recorded in other income, net in the consolidated statements of income for the fiscal years ended April 30, 2020 and 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 the Company’s operations. Therefore, the results of operations of the

EES Business are reported as discontinued operations for all periods presented. The table below presents the statements of income data for the EES Business (in thousands).


	Year Ended April 30,
	2020		2019		2018

Net sales	$	—	$	4,256	$	38,411
Cost of sales		—		5,097		33,384
Gross margin		—		(841)		5,027
Selling, general and administrative		—		1,515		7,825
Research and development		—		1,072		3,526
Other income, net		—		1		(27)
Loss from discontinued operations before income taxes		—		(3,427)		(6,351)
Benefit for income taxes		—		(463)		(2,464)
Net loss from discontinued operations	$	—	$	(2,964)	$	(3,887)
(Loss) gain on sale of business, net of tax (benefit) expense of $(76) and $2,444 for the year ended April 30, 2020 and April 30, 2019, respectively		(265)		8,490		—
Net (loss) income from discontinued operations	$	(265)	$	5,526	$	(3,887)

Stock-Based Compensation (Tables)

12 Months Ended

Apr. 30, 2020

Stock-Based Compensation

Schedule of stock option plans


	Restated 2006 Plan			2002 Plan			1992 Plan
		Weighted			Weighted			Weighted
		Average			Average			Average
		Exercise			Exercise			Exercise
	Shares	Price		Shares	Price		Shares	Price
Outstanding at April 30, 2017	446,624		24.93	—		—	43,415		0.59
Options granted	—		—	—		—	—		—
Options exercised	(107,598)		23.80	—		—	(25,113)		0.59
Options canceled	—		—	—		—	—		—
Outstanding at April 30, 2018	339,026		25.29	—		—	18,302		0.59
Options granted	—		—	—		—	—		—
Options exercised	(2,000)		32.19	—		—	(4,000)		0.59
Options canceled	—		—	—		—	—		—
Outstanding at April 30, 2019	337,026		25.25	—		—	14,302		0.59
Options granted	—		—	—		—	—		—
Options exercised	(3,000)		31.15	—		—	(13,189)		0.59
Options canceled	—		—	—		—	—		—
Outstanding at April 30, 2020	334,026		25.19	—		—	1,113		0.59
Options exercisable at April 30, 2020	318,026	$	25.12	—	$	—	1,113	$	0.59

Schedule of the status of the Company's non-vested stock options


		Weighted
		Average
		Grant Date
Non-vested Options	Options	Fair Value
Non-vested at April 30, 2019	39,510	$	10.90
Granted	—		—
Expired	—		—
Canceled	—		—
Vested	(23,510)		11.40
Non-vested at April 30, 2020	16,000	$	10.16

Schedule of information concerning outstanding and exercisable options


				Options Outstanding
					Weighted
					Average			Options Exercisable
					Remaining	Weighted			Weighted
				As of	Contractual	Average		As of	Average
				April 30,	Life In	Exercise		April 30,	Exercise
Range of Exercise Prices				2020	Years	Price		2020	Price
$	0.59	-	19.16	55,113	2.93	$	17.90	55,113	$	17.90
	19.17	-	26.24	58,500	2.86		20.54	58,500		20.54
	26.25	-	26.99	80,000	5.15		26.70	64,000		26.70
	27.00	-	27.99	50,000	3.56		27.27	50,000		27.27
	28.00	-	29.26	50,000	1.83		28.72	50,000		28.72
	29.27	-	31.27	41,526	3.94		31.13	41,526		31.13
$	0.59	-	31.27	335,139	3.50	$	25.11	319,139	$	25.03

Schedule of Company's restricted stock awards

Information related to the Company’s restricted stock awards at April 30, 2020 and for the year then ended is as follows:


	Restated 2006 Plan
		Weighted
		Average
		Grant Date
	Shares	Fair Value
Unvested stock at April 30, 2019	226,159	$	43.35
Stock granted	131,991		52.71
Stock vested	(143,962)		34.03
Stock canceled	(12,541)		47.86
Unvested stock at April 30, 2020	201,647	$	55.84

Income Taxes Carryforward (Details) - USD ($)	12 Months Ended
Income Taxes Carryforward (Details) - USD ($)	Apr. 30, 2020	Apr. 30, 2019
Tax Credit Carryforward
Increase in valuation allowance	$ 2,871,000	$ 2,710,000
State
Tax Credit Carryforward
Tax credit carryforwards	26,694,000
IRS
Tax Credit Carryforward
Tax credit carryforwards	$ 2,729,000

Investments in Companies Accounted for Using the Equity Method - Investment in Limited Partnership Fund (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2019	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2018
Equity Method Investments
Equity method investment loss, net of tax		$ (5,487)	$ (3,944)	$ (1,283)
Provision for income taxes		5,848	4,641	9,800
Carrying value of investment		4,442
Limited Partnership Fund
Equity Method Investments
Capital contributions	$ 5,000
Equity method investment loss, net of tax	394
Provision for income taxes	111
Summarized financial information of the equity method investments
Current assets		67,387	31,746
Noncurrent assets		170,602
Current liabilities		72,505	11,757
Revenue		25
Gross loss		(1,331)
Realized and unrealized losses on investments		(7,028)
Net loss		$ (85,818)	$ (63,107)	$ (25,666)
Limited Partnership Fund \| Long term investments
Equity Method Investments
Carrying value of investment	$ 4,442

Long-Term Incentive Awards (Details) - USD ($)	3 Months Ended				12 Months Ended
Long-Term Incentive Awards (Details) - USD ($)	Jul. 31, 2020	Jul. 27, 2019	Jul. 28, 2018	Apr. 30, 2017	Apr. 30, 2020	Apr. 25, 2020	Apr. 30, 2019	Apr. 30, 2018
Stock Based Compensation
Stock based compensation expense					$ 6,227,000		$ 6,985,000	$ 4,956,000
Performance based restricted stock units \| 100% Vested
Stock Based Compensation
Vesting (as a percentage)					100.00%
Performance based restricted stock units \| 50% Vested
Stock Based Compensation
Vesting (as a percentage)					50.00%
Performance based restricted stock units \| 200% Vested
Stock Based Compensation
Vesting (as a percentage)					200.00%
Performance based restricted stock units \| Maximum
Stock Based Compensation
Stock based compensation expense					$ 4,263,000
LTIP
Stock Based Compensation
Stock based compensation expense					2,657,000		1,889,000
Fiscal 2020 LTIP
Stock Based Compensation
Stock based compensation expense					649,000
Fiscal 2019 LTIP \| Performance based restricted stock units
Stock Based Compensation
Stock based compensation expense					386,000		572,000
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					2,478,000
Fiscal 2018 LTIP
Stock Based Compensation
Issue of fully-vested shares of common stock to settle		14,814
Fiscal 2018 LTIP \| Performance based restricted stock units
Stock Based Compensation
Stock based compensation expense					$ 193,000		588,000	$ 269,000
Issue of fully-vested shares of common stock to settle	27,356
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 2017 LTIP
Stock Based Compensation
Stock based compensation expense						$ 0	$ 0

Intangibles Estimated Amortization Expense (Details) $ in Thousands	Apr. 30, 2020 USD ($)
Estimated amortization expense
2021	$ 2,792
2022	2,829
2023	2,688
2024	2,629
2025	2,492
Total	$ 13,430