Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-16391 | |
Entity Registrant Name | Axon Enterprise, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-0741227 | |
Entity Address, Address Line One | 17800 North 85th Street | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85255 | |
City Area Code | 480 | |
Local Phone Number | 991-0797 | |
Title of 12(b) Security | Common Stock, $0.00001 Par Value | |
Trading Symbol | AAXN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,340,965 | |
Entity Central Index Key | 0001069183 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 202,551 | $ 349,462 |
Short-term investments | 108,913 | 0 |
Accounts and notes receivable, net of allowance of $1,983 and $1,882 as of September 30, 2019 and December 31, 2018, respectively | 149,013 | 130,579 |
Contract assets, net | 33,602 | 13,960 |
Inventory | 40,666 | 33,763 |
Prepaid expenses and other current assets | 41,277 | 30,391 |
Total current assets | 576,022 | 558,155 |
Property and equipment, net of accumulated depreciation of $38,470 and $39,885 as of September 30, 2019 and December 31, 2018, respectively | 42,592 | 37,893 |
Deferred income tax assets, net | 23,290 | 19,347 |
Intangible assets, net | 13,528 | 15,935 |
Goodwill | 24,876 | 24,981 |
Long-term investments | 41,391 | 0 |
Long-term notes receivable, net of current portion | 33,463 | 40,230 |
Other assets | 37,142 | 22,999 |
Total assets | 792,304 | 719,540 |
Current liabilities: | ||
Accounts payable | 14,638 | 15,164 |
Accrued liabilities | 35,745 | 41,092 |
Contract with customer, liability, current | 127,160 | 107,016 |
Other current liabilities | 3,997 | 37 |
Total current liabilities | 183,834 | 166,011 |
Deferred revenue, net of current portion | 82,149 | 74,417 |
Liability for unrecognized tax benefits | 3,443 | 2,849 |
Long-term deferred compensation | 3,694 | 3,235 |
Other long-term liabilities | 11,537 | 5,704 |
Total liabilities | 284,657 | 252,216 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.00001 par value; 200,000,000 shares authorized; 59,320,793 and 58,810,637 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 1 | 1 |
Additional paid-in capital | 480,747 | 453,400 |
Treasury stock at cost, 20,220,227 shares as of September 30, 2019 and December 31, 2018 | (155,947) | (155,947) |
Retained earnings | 184,644 | 171,383 |
Accumulated other comprehensive loss | (1,798) | (1,513) |
Total stockholders’ equity | 507,647 | 467,324 |
Total liabilities and stockholders’ equity | 792,304 | 719,540 |
Current portion of deferred revenue | ||
Current liabilities: | ||
Contract with customer, liability, current | 127,160 | 107,016 |
Customer deposits | ||
Current liabilities: | ||
Contract with customer, liability, current | $ 2,294 | $ 2,702 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance on accounts receivable | $ 1,983 | $ 1,882 |
Accumulated depreciation | $ 38,470 | $ 39,885 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 59,320,793 | 58,810,637 |
Common stock, shares outstanding (in shares) | 59,320,793 | 58,810,637 |
Treasury stock, shares (in shares) | 20,220,227 | 20,220,227 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | $ 130,837 | $ 104,836 | $ 359,009 | $ 305,277 |
Cost of sales | 50,668 | 39,203 | 144,363 | 112,040 |
Gross margin | 80,169 | 65,633 | 214,646 | 193,237 |
Operating expenses: | ||||
Sales, general and administrative | 48,424 | 39,685 | 134,678 | 114,787 |
Research and development | 25,129 | 21,982 | 71,976 | 55,602 |
Total operating expenses | 73,553 | 61,667 | 206,654 | 170,389 |
Income from operations | 6,616 | 3,966 | 7,992 | 22,848 |
Interest and other income (expense), net | 1,820 | 1,274 | 5,978 | 2,242 |
Income before provision for income taxes | 8,436 | 5,240 | 13,970 | 25,090 |
Provision for (benefit from) income taxes | 2,332 | (471) | 709 | (2,032) |
Net income | $ 6,104 | $ 5,711 | $ 13,261 | $ 27,122 |
Net income per common and common equivalent shares: | ||||
Basic (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.22 | $ 0.49 |
Diluted (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.22 | $ 0.47 |
Weighted average number of common and common equivalent shares outstanding: | ||||
Basic (in shares) | 59,278 | 58,340 | 59,128 | 55,681 |
Diluted (in shares) | 60,059 | 59,805 | 59,938 | 57,254 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 6,104 | $ 5,711 | $ 13,261 | $ 27,122 |
Foreign currency translation adjustments | (227) | (107) | (285) | (159) |
Comprehensive income | 5,877 | 5,604 | 12,976 | 26,963 |
Product | ||||
Net sales | 96,497 | 80,923 | 264,977 | 238,618 |
Cost of sales | 42,445 | 32,953 | 120,265 | 96,474 |
Service | ||||
Net sales | 34,340 | 23,913 | 94,032 | 66,659 |
Cost of sales | $ 8,223 | $ 6,250 | $ 24,098 | $ 15,566 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2017 | 52,969,869 | 20,220,227 | ||||
Beginning balance at Dec. 31, 2017 | $ 167,444 | $ 1 | $ 201,672 | $ (155,947) | $ 123,185 | $ (1,467) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee plans (in shares) | 337,214 | |||||
Issuance of common stock under employee plans, net | (3,421) | (3,421) | ||||
Stock-based compensation | 4,093 | 4,093 | ||||
Net income | 12,926 | 12,926 | ||||
Foreign currency translation adjustments | (707) | (707) | ||||
Ending balance (in shares) at Mar. 31, 2018 | 53,307,083 | 20,220,227 | ||||
Ending balance at Mar. 31, 2018 | 199,329 | $ 1 | 202,344 | $ (155,947) | 155,105 | (2,174) |
Beginning balance (in shares) at Dec. 31, 2017 | 52,969,869 | 20,220,227 | ||||
Beginning balance at Dec. 31, 2017 | 167,444 | $ 1 | 201,672 | $ (155,947) | 123,185 | (1,467) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 27,122 | |||||
Foreign currency translation adjustments | (159) | |||||
Ending balance (in shares) at Sep. 30, 2018 | 58,419,742 | 20,220,227 | ||||
Ending balance at Sep. 30, 2018 | 459,662 | $ 1 | 447,933 | $ (155,947) | 169,301 | (1,626) |
Beginning balance (in shares) at Mar. 31, 2018 | 53,307,083 | 20,220,227 | ||||
Beginning balance at Mar. 31, 2018 | 199,329 | $ 1 | 202,344 | $ (155,947) | 155,105 | (2,174) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 4,645,000 | |||||
Issuance of common stock | 233,993 | 233,993 | ||||
Issuance of common stock under employee plans (in shares) | 278,687 | |||||
Issuance of common stock under employee plans, net | (6,800) | (6,800) | ||||
Stock-based compensation | 4,954 | 4,954 | ||||
Issuance of common stock for business combination (in shares) | 58,843 | |||||
Issuance of common stock for business combination | 8,226 | 8,226 | ||||
Net income | 8,485 | 8,485 | ||||
Foreign currency translation adjustments | 655 | 655 | ||||
Ending balance (in shares) at Jun. 30, 2018 | 58,289,613 | 20,220,227 | ||||
Ending balance at Jun. 30, 2018 | 448,842 | $ 1 | 442,717 | $ (155,947) | 163,590 | (1,519) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee plans (in shares) | 130,129 | |||||
Issuance of common stock under employee plans, net | (1,039) | (1,039) | ||||
Stock-based compensation | 6,255 | 6,255 | ||||
Net income | 5,711 | 5,711 | ||||
Foreign currency translation adjustments | (107) | (107) | ||||
Ending balance (in shares) at Sep. 30, 2018 | 58,419,742 | 20,220,227 | ||||
Ending balance at Sep. 30, 2018 | 459,662 | $ 1 | 447,933 | $ (155,947) | 169,301 | (1,626) |
Beginning balance (in shares) at Dec. 31, 2018 | 58,810,637 | 20,220,227 | ||||
Beginning balance at Dec. 31, 2018 | 467,324 | $ 1 | 453,400 | $ (155,947) | 171,383 | (1,513) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee plans (in shares) | 298,649 | |||||
Issuance of common stock under employee plans, net | (1,159) | (1,159) | ||||
Stock-based compensation | 7,905 | 7,905 | ||||
Net income | 6,419 | 6,419 | ||||
Foreign currency translation adjustments | 50 | 50 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 59,109,286 | 20,220,227 | ||||
Ending balance at Mar. 31, 2019 | 480,539 | $ 1 | 460,146 | $ (155,947) | 177,802 | (1,463) |
Beginning balance (in shares) at Dec. 31, 2018 | 58,810,637 | 20,220,227 | ||||
Beginning balance at Dec. 31, 2018 | 467,324 | $ 1 | 453,400 | $ (155,947) | 171,383 | (1,513) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,261 | |||||
Foreign currency translation adjustments | (285) | |||||
Ending balance (in shares) at Sep. 30, 2019 | 59,320,793 | 20,220,227 | ||||
Ending balance at Sep. 30, 2019 | 507,647 | $ 1 | 480,747 | $ (155,947) | 184,644 | (1,798) |
Beginning balance (in shares) at Mar. 31, 2019 | 59,109,286 | 20,220,227 | ||||
Beginning balance at Mar. 31, 2019 | 480,539 | $ 1 | 460,146 | $ (155,947) | 177,802 | (1,463) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee plans (in shares) | 71,832 | |||||
Issuance of common stock under employee plans, net | (869) | (869) | ||||
Stock-based compensation | 8,627 | 8,627 | ||||
Issuance of common stock for business combination (in shares) | 70,613 | |||||
Issuance of common stock for business combination | 0 | |||||
Net income | 738 | 738 | ||||
Foreign currency translation adjustments | (108) | (108) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 59,251,731 | 20,220,227 | ||||
Ending balance at Jun. 30, 2019 | 488,927 | $ 1 | 467,904 | $ (155,947) | 178,540 | (1,571) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock under employee plans (in shares) | 69,062 | |||||
Issuance of common stock under employee plans, net | (1,134) | (1,134) | ||||
Stock-based compensation | 13,977 | 13,977 | ||||
Net income | 6,104 | 6,104 | ||||
Foreign currency translation adjustments | (227) | (227) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 59,320,793 | 20,220,227 | ||||
Ending balance at Sep. 30, 2019 | $ 507,647 | $ 1 | $ 480,747 | $ (155,947) | $ 184,644 | $ (1,798) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 13,261 | $ 27,122 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,196 | 8,226 |
Loss on disposal and impairment of property and equipment, net | 2,408 | 290 |
Loss on disposal and abandonment of intangible assets | 51 | 2,103 |
Stock-based compensation | 30,195 | 15,302 |
Deferred income taxes | (3,946) | (2,326) |
Unrecognized tax benefits | 594 | 99 |
Other noncash, net | 2,923 | 34 |
Change in assets and liabilities: | ||
Accounts and notes receivable and contract assets | (30,497) | (51,172) |
Inventory | (6,302) | 9,033 |
Prepaid expenses and other assets | (11,967) | (12,081) |
Accounts payable, accrued and other liabilities | (13,528) | 4,306 |
Deferred revenue | 28,476 | 31,700 |
Net cash provided by operating activities | 19,864 | 32,636 |
Cash flows from investing activities: | ||
Purchases of investments | (242,693) | (4,331) |
Proceeds from maturity/call of investments | 92,207 | 10,658 |
Purchases of property and equipment | (12,111) | (6,880) |
Purchases of intangible assets | (328) | (460) |
Business acquisitions | 0 | (4,990) |
Net cash used in investing activities | (162,925) | (6,003) |
Cash flows from financing activities: | ||
Net proceeds from equity offering | 0 | 233,993 |
Proceeds from options exercised | 106 | 713 |
Income and payroll tax payments for net-settled stock awards | (3,268) | (11,973) |
Payment of contingent consideration for a business acquisition | 0 | (575) |
Net cash provided by (used in) financing activities | (3,162) | 222,158 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (678) | (381) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (146,901) | 248,410 |
Cash, cash equivalents and restricted cash, beginning of period | 351,027 | 78,438 |
Cash, cash equivalents and restricted cash, end of period | 204,126 | 326,848 |
Supplemental disclosures: | ||
Cash and cash equivalents | 202,551 | 324,371 |
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | 351,027 | 78,438 |
Cash paid for income taxes, net of refunds | 2,422 | 7,957 |
Non-cash transactions | ||
Property and equipment purchases in accounts payable and accrued liabilities | 1,047 | 1,114 |
Non-cash purchase consideration related to business combinations | 0 | 12,508 |
Commission converted to stock-based award | $ 314 | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Axon Enterprise, Inc. (“Axon,” the “Company,” "we," or "us") is a market-leading provider of law enforcement technology solutions. Our core mission is to protect life. We fulfill that mission through developing hardware and software products that advance the long term objectives of a) obsoleting the bullet, b) reducing social conflict, and c) enabling a fair and effective justice system. Our headquarters in Scottsdale, Arizona houses our executive management, sales, marketing, certain engineering, manufacturing, and other administrative support functions. We also have a software engineering development center located in Seattle, Washington, and subsidiaries located in Australia, Canada, Finland, Hong Kong, Germany, India, Italy, the Netherlands, the United Kingdom, and Vietnam. The accompanying unaudited condensed consolidated financial statements include the accounts of Axon Enterprise, Inc. and our wholly owned subsidiaries. All material intercompany accounts, transactions, and profits have been eliminated. Basis of Presentation and Use of Estimates These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in our annual consolidated financial statements for the year ended December 31, 2018 , as filed on Form 10-K, with the exception of our adoption of certain accounting pronouncements which we describe below. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with our Form 10-K for the year ended December 31, 2018 . The results of operations for the three and nine months ended September 30, 2019 and 2018 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: • product warranty reserves, • inventory valuation, • revenue recognition, • valuation of goodwill, intangible and long-lived assets, • recognition, measurement and valuation of current and deferred income taxes, • stock-based compensation, • recognition and measurement of lease liabilities, • recognition and measurement of contingencies and accrued litigation expense, and • fair values of identified tangible and intangible assets acquired and liabilities assumed in business combinations. Actual results could differ materially from those estimates. Segment Information Our operations are comprised of two reportable segments: the manufacture and sale of conducted electrical weapons ("CEWs"), batteries, accessories, extended warranties and other products and services (the “TASER” segment); and the development, manufacture, and sale of software and sensors, which includes the sale of devices, wearables, applications, cloud and mobile products (collectively, the “Software and Sensors” segment). Revenue from our “products” in the Software and Sensors segment are generally from sales of sensors, including on-officer body cameras, Axon Fleet cameras, other hardware sensors, warranties on sensors, and other products, and is sometimes referred to as "Sensors and Other revenue." Revenue from our “services” in the Software and Sensors segment consist of sales related to the Axon Cloud, which includes Axon Evidence, cloud-based evidence management software revenue, other recurring cloud-hosted software revenue and related professional services, and is sometimes referred to as "Axon Cloud revenue." Within the Software and Sensors segment, we include only revenues and costs attributable to that segment, which costs include: costs of sales for both products and services, direct labor, product management and research and development ("R&D") for products included, or to be included, within the Software and Sensors segment. All other costs are included in the TASER segment. Our Chief Executive Officer, who is the Chief Operating Decision Maker (the “CODM”), is not provided asset information or sales, general, and administrative expense by segment. Reportable segments are determined based on discrete financial information reviewed by the CODM. We organize and review operations based on products and services. We perform an analysis of our reportable segments on at least an annual basis. Additional information related to our business segments is summarized in Note 15. Geographic Information and Major Customers / Suppliers For the three and nine months ended September 30, 2019 and 2018, no individual country outside the U.S. represented more than 10% of total net sales. Individual sales transactions in the international market are generally larger and occur more intermittently than in the domestic market due to the profile of our customers. For the three and nine months ended September 30, 2019 and 2018, no customer represented more than 10% of total net sales. At September 30, 2019 and December 31, 2018 , no customer represented more than 10% of the aggregate balance of accounts and notes receivable and contract assets. We currently purchase both off the shelf and custom components, including, but not limited to, finished circuit boards, injection-molded plastic components, small machined parts, custom cartridge components, electronic components, and off the shelf sub-assemblies from suppliers located in the U.S., Canada, China, Israel, Mexico, Republic of Korea, and Taiwan. Although we currently obtain many of these components from single source suppliers, we own the injection molded component tooling, most of the designs, and the test fixtures used in their production for all custom components. As a result, we believe we could obtain alternative suppliers in most cases without incurring significant production delays. We also strategically hold safety stock levels on custom components to further reduce this risk. For off the shelf components, we believe that in most cases there are readily available alternative suppliers who can consistently meet our needs for these components. We acquire most of our components on a purchase order basis and do not have any significant long-term contracts with component suppliers. Income per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Potentially dilutive securities include outstanding stock options and unvested restricted stock units ("RSUs"). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities. The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator for basic and diluted earnings per share: Net income $ 6,104 $ 5,711 $ 13,261 $ 27,122 Denominator: Weighted average shares outstanding 59,278 58,340 59,128 55,681 Dilutive effect of stock-based awards 781 1,465 810 1,573 Diluted weighted average shares outstanding 60,059 59,805 59,938 57,254 Anti-dilutive stock-based awards excluded 12,477 6,793 12,546 6,760 Net income per common share: Basic $ 0.10 $ 0.10 $ 0.22 $ 0.49 Diluted $ 0.10 $ 0.10 $ 0.22 $ 0.47 Standard Warranties We warranty our CEWs, Axon cameras and certain related accessories from manufacturing defects on a limited basis for a period of one year after purchase and, thereafter, will repair or replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold when revenue is recorded for the related product. Future warranty costs are estimated based on historical data related to warranty claims on a quarterly basis and this rate is applied to current product sales. Historically, reserve amounts have been increased if management becomes aware of a component failure or other issue that could result in larger than anticipated warranty claims from customers. The warranty reserve is reviewed quarterly to verify that it sufficiently reflects the remaining warranty obligations based on the anticipated expenditures over the balance of the warranty obligation period, and adjustments are made when actual warranty claim experience differs from estimates. The warranty reserve is included in accrued liabilities on the accompanying condensed consolidated balance sheets. Changes in our estimated product warranty liabilities were as follows (in thousands): Nine Months Ended September 30, 2019 2018 Balance, beginning of period $ 898 $ 644 Utilization of accrual (718 ) (384 ) Warranty expense 891 699 Balance, end of period $ 1,071 $ 959 Fair Value Measurements and Financial Instruments The fair value framework prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. • Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. • Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about inputs that market participants would use in pricing an asset or liability. We have cash equivalents and investments, which at September 30, 2019 and December 31, 2018 were comprised of money market funds and, at September 30, 2019 , also included agency bonds, corporate bonds, municipal bonds, and U.S. Treasury repurchase agreements. See additional disclosure regarding the fair value of our cash equivalents and investments in Note 3. Included in the balance of other assets as of September 30, 2019 and December 31, 2018 was $4.0 million and $3.6 million , respectively, related to corporate-owned life insurance policies which are used to fund our deferred compensation plan. We determine the fair value of insurance contracts by obtaining the cash surrender value of the contracts from the issuer, a Level 2 valuation technique. Our financial instruments also include accounts and notes receivable, contract assets, accounts payable and accrued liabilities. As these instruments are generally short-term in nature, their carrying values approximate their fair values on the accompanying condensed consolidated balance sheets. Restricted Cash Restricted cash balances as of September 30, 2019 and December 31, 2018 included $0.9 million of sales proceeds related to long-term contracts with customers, which were included in prepaid expenses and other current assets on our condensed consolidated balance sheets. The proceeds are held in escrow until certain billing milestones are achieved, and then specified amounts are transferred to our operating accounts. Restricted cash balances as of September 30, 2019 and December 31, 2018 also included $0.7 million related to a performance guarantee for an international customer sales contract, which were included in other assets on our accompanying condensed consolidated balance sheets. Valuation of Goodwill, Intangibles and Long-lived Assets We evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets, excluding goodwill and intangible assets with indefinite useful lives, may warrant revision or that the remaining balance of these assets may not be recoverable. Such circumstances could include, but are not limited to, a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, we estimate the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. During the nine months ended September 30, 2019, we abandoned certain capitalized software related to implementation work on an enterprise resource planning system conversion, resulting in an impairment charge of $1.3 million , which was included in sales, general and administrative expense in the accompanying condensed consolidated statements of operations. During the three months ended September 30, 2019, we abandoned certain planning and site development activities related to our planned new headquarters, resulting in an impairment charge of $0.7 million , which was included in sales, general and administrative expense in the accompanying condensed consolidated statements of operations. We do not amortize goodwill and intangible assets with indefinite useful lives; rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We perform our annual goodwill and intangible asset impairment tests in the fourth quarter of each year. Recently Issued Accounting Guidance Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. In July 2018, the FASB issued additional guidance which provided an additional transition method for adopting the updated guidance. Most prominent among the changes in the standard is the requirement for lessees to recognize ROU assets and lease liabilities for those leases that were classified as operating leases under previous U.S. GAAP. On January 1, 2019, we adopted Topic 842 by applying the non-comparative modified retrospective method of adoption. Under this method, financial information related to periods prior to adoption will be as originally reported under the then-current standard (Topic 840, Leases). Results for reporting periods beginning on or after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted, and continue to be reported in accordance with our historic accounting under Topic 840. We elected to apply the package of practical expedients to not reassess whether a contract is or contains a lease, lease classification, or initial lease costs for all leases that commenced before the adoption date. The adoption had a material impact to our condensed consolidated balance sheet. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. There was no other impact from the adoption. The adjustments to the opening balance sheet were as follows (in thousands): December 31, 2018 Impact of Adoption of Topic 842 on Opening Balance Sheet January 1, 2019 (As reported) (As adjusted) Consolidated Balance Sheet Data: Other assets $ 22,999 $ 12,483 $ 35,482 Total assets 719,540 12,483 732,023 — Accrued liabilities 41,092 (1,138 ) 39,954 Other current liabilities 37 3,588 3,625 Total current liabilities 166,011 2,450 168,461 Other long-term liabilities 5,704 10,033 15,737 Total liabilities 252,216 12,483 264,699 Total liabilities and stockholders' equity 719,540 12,483 732,023 See Note 11 for further disclosures related to Topic 842. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718), expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. We adopted this standard on January 1, 2019 and the adoption had no impact on our condensed consolidated financial statements. Effective the first quarter of 2020: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 includes an impairment model (known as the current expected credit loss model) on financial instruments and other commitments that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The use of forecasted information is intended to incorporate more timely information in the estimate of expected credit loss. This ASU will also require enhanced disclosures relating to significant estimates and judgments used in estimating credit losses, as well as credit quality. We are currently in the process of selecting the appropriate credit loss models for our investments, accounts and notes receivable, and contract assets and evaluating our processes and controls in preparation for the adoption of ASU 2016-13. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements. The amendments apply to the disclosures of changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted, and an entity is also permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. Adoption of this ASU is not expected to have a material impact on our consolidated financial statements. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Nature of Products and Services The following tables present our revenues by primary product and service offering (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 TASER Software and Sensors Total TASER Software and Sensors Total TASER 7 $ 20,214 $ — $ 20,214 $ — $ — $ — TASER X26P 11,578 — 11,578 17,998 — 17,998 TASER X2 13,241 — 13,241 20,392 — 20,392 TASER Pulse and Bolt 1,132 — 1,132 1,402 — 1,402 Single cartridges 18,901 — 18,901 18,406 — 18,406 Axon Body — 6,763 6,763 — 4,744 4,744 Axon Flex — 1,670 1,670 — 1,325 1,325 Axon Fleet — 4,341 4,341 — 1,809 1,809 Axon Dock — 3,358 3,358 — 2,178 2,178 Axon Evidence and cloud services 218 34,022 34,240 — 23,915 23,915 TASER Cam — 534 534 — 717 717 Extended warranties 4,543 4,714 9,257 4,123 3,161 7,284 Other 1,916 3,692 5,608 1,345 3,321 4,666 Total $ 71,743 $ 59,094 $ 130,837 $ 63,666 $ 41,170 $ 104,836 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 TASER Software and Sensors Total TASER Software and Sensors Total TASER 7 $ 39,466 $ — $ 39,466 $ — $ — $ — TASER X26P 37,832 — 37,832 52,618 — 52,618 TASER X2 40,413 — 40,413 62,686 — 62,686 TASER Pulse and Bolt 2,920 — 2,920 3,849 — 3,849 Single cartridges 57,354 — 57,354 51,763 — 51,763 Axon Body — 18,820 18,820 — 15,082 15,082 Axon Flex — 4,517 4,517 — 4,529 4,529 Axon Fleet — 10,977 10,977 — 6,640 6,640 Axon Dock — 9,401 9,401 — 7,332 7,332 Axon Evidence and cloud services 363 93,461 93,824 — 64,513 64,513 TASER Cam — 2,481 2,481 — 2,839 2,839 Extended warranties 13,341 14,064 27,405 11,567 8,521 20,088 Other 6,017 7,582 13,599 5,331 8,007 13,338 Total $ 197,706 $ 161,303 $ 359,009 $ 187,814 $ 117,463 $ 305,277 The following table presents our revenues disaggregated by geography (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 United States $ 110,809 85 % $ 88,125 84 % $ 298,736 83 % $ 244,806 80 % Other countries 20,028 15 16,711 16 60,273 17 60,471 20 Total $ 130,837 100 % $ 104,836 100 % $ 359,009 100 % $ 305,277 100 % Contract Balances The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the nine months ended September 30, 2019 (in thousands): September 30, 2019 Contract assets, net $ 33,635 Contract liabilities (deferred revenue) 209,309 Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period 83,159 Contract liabilities (deferred revenue) consisted of the following (in thousands): September 30, 2019 December 31, 2018 Current Long-Term Total Current Long-Term Total Warranty: TASER $ 11,677 $ 16,633 $ 28,310 $ 12,797 $ 16,847 $ 29,644 Software and Sensors 9,899 5,450 15,349 8,273 6,516 14,789 21,576 22,083 43,659 21,070 23,363 44,433 Hardware: TASER 4,378 17,601 21,979 9,355 15,598 24,953 Software and Sensors 39,308 27,357 66,665 20,878 24,685 45,563 43,686 44,958 88,644 30,233 40,283 70,516 Services: TASER 11 396 407 — — — Software and Sensors 61,887 14,712 76,599 55,713 10,771 66,484 61,898 15,108 77,006 55,713 10,771 66,484 Total $ 127,160 $ 82,149 $ 209,309 $ 107,016 $ 74,417 $ 181,433 September 30, 2019 December 31, 2018 Current Long-Term Total Current Long-Term Total TASER $ 16,066 $ 34,630 $ 50,696 $ 22,152 $ 32,445 $ 54,597 Software and Sensors 111,094 47,519 158,613 84,864 41,972 126,836 Total $ 127,160 $ 82,149 $ 209,309 $ 107,016 $ 74,417 $ 181,433 Remaining Performance Obligations As of September 30, 2019 , we had approximately $1.13 billion of remaining performance obligations, which included both recognized contract liabilities as well as amounts that will be invoiced and recognized in future periods. The remaining performance obligations are limited only to arrangements that meet the definition of a contract under Topic 606 as of September 30, 2019 . We expect to recognize between 15% - 20% of this balance over the next twelve months , and generally expect the remainder to be recognized over the following five to seven years , subject to risks related to delayed deployments, budget appropriation or other contract cancellation clauses. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments The following tables summarize our cash, cash equivalents, and held-to-maturity investments at September 30, 2019 and December 31, 2018 (in thousands): As of September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 80,269 $ — $ — $ 80,269 $ 80,269 $ — $ — Level 1: Money market funds 37,311 — — 37,311 37,311 — — Agency bonds 32,834 4 (6 ) 32,832 12,068 2,000 18,766 Subtotal 70,145 4 (6 ) 70,143 49,379 2,000 18,766 Level 2: State and municipal obligations 4,454 1 (1 ) 4,454 — 4,454 — Corporate bonds 127,987 51 (31 ) 128,007 2,903 102,459 22,625 U.S. Treasury repurchase agreements 70,000 — — 70,000 70,000 — — Subtotal 202,441 52 (32 ) 202,461 72,903 106,913 22,625 Total $ 352,855 $ 56 $ (38 ) $ 352,873 $ 202,551 $ 108,913 $ 41,391 As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 144,095 $ — $ — $ 144,095 $ 144,095 $ — $ — Level 1: Money market funds 205,367 — — 205,367 205,367 — — Total $ 349,462 $ — $ — $ 349,462 $ 349,462 $ — $ — We believe unrealized losses on our investments are due to interest rate fluctuations. As these investments are short-term in nature, are expected to be redeemed at par value, and/or because we have the ability and intent to hold these investments to maturity, we do not consider these investments to be other than temporarily impaired as of September 30, 2019 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted average cost of raw materials, which approximates the first-in, first-out (“FIFO”) method and includes allocations of manufacturing labor and overhead. Included in finished goods at September 30, 2019 and December 31, 2018 was $1.4 million and $1.4 million , respectively, of trial and evaluation hardware units. Provisions are made to reduce excess, obsolete or slow-moving inventories to their net realizable value. Inventory consisted of the following at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Raw materials $ 21,096 $ 19,670 Finished goods 19,570 14,093 Total inventory $ 40,666 $ 33,763 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the nine months ended September 30, 2019 were as follows (in thousands): TASER Software and Sensors Total Balance, beginning of period $ 1,338 $ 23,643 $ 24,981 Foreign currency translation adjustment (52 ) (53 ) (105 ) Balance, end of period $ 1,286 $ 23,590 $ 24,876 Intangible assets (other than goodwill) consisted of the following (in thousands): September 30, 2019 December 31, 2018 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable (definite-lived) intangible assets: Domain names 5-10 years $ 3,161 $ (959 ) $ 2,202 $ 3,161 $ (732 ) $ 2,429 Issued patents 4-15 years 3,170 (1,268 ) 1,902 2,940 (1,106 ) 1,834 Issued trademarks 3-11 years 1,006 (532 ) 474 1,053 (599 ) 454 Customer relationships 4-8 years 3,664 (1,263 ) 2,401 3,701 (880 ) 2,821 Non-compete agreements 3-4 years 446 (397 ) 49 540 (439 ) 101 Developed technology 3-7 years 10,660 (5,982 ) 4,678 13,404 (7,081 ) 6,323 Re-acquired distribution rights 2 years 1,932 (1,932 ) — 1,928 (1,813 ) 115 Total amortizable 24,039 (12,333 ) 11,706 26,727 (12,650 ) 14,077 Not amortizable (indefinite-lived) intangible assets: TASER trademark 900 900 900 900 Patents and trademarks pending 922 922 958 958 Total not amortizable 1,822 1,822 1,858 1,858 Total intangible assets $ 25,861 $ (12,333 ) $ 13,528 $ 28,585 $ (12,650 ) $ 15,935 Amortization expense of intangible assets for the three and nine months ended September 30, 2019 was $0.8 million and $2.7 million , respectively. Amortization expense of intangible assets for the three and nine months ended September 30, 2018 was $1.6 million and $4.6 million , respectively. Estimated amortization for intangible assets with definite lives for the remaining three months of 2019 , the next five years ended December 31, and thereafter, is as follows (in thousands): 2019 Remaining $ 948 2020 3,177 2021 2,862 2022 1,256 2023 962 2024 881 Thereafter 1,620 Total $ 11,706 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Cash surrender value of corporate-owned life insurance policies $ 4,020 $ 3,596 Deferred commissions (1) 17,920 15,530 Restricted cash 658 661 Operating lease assets 10,592 — Prepaid expenses, deposits and other 3,952 3,212 Total other assets $ 37,142 $ 22,999 (1) Represents the incremental costs of obtaining contracts with customers, which consist primarily of sales commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contracts and amortized consistent with the recognition timing of the revenue for the underlying performance obligations. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Accrued salaries, benefits and bonus $ 17,058 $ 19,063 Accrued professional, consulting and lobbying fees 5,002 4,894 Accrued warranty expense 1,071 898 Accrued income and other taxes 5,143 4,167 Other accrued liabilities 7,471 12,070 Accrued liabilities $ 35,745 $ 41,092 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We file income tax returns for federal purposes and in many states, as well as in multiple foreign jurisdictions. Our tax filings remain subject to examination by applicable tax authorities for a certain length of time, generally three to four years, following the tax year to which these filings relate. Our U.S. federal income tax return for fiscal year 2016 is currently under audit by the Internal Revenue Service. Deferred Tax Assets Net deferred income tax assets at September 30, 2019 , primarily include R&D tax credits, stock-based compensation expense, deferred revenue, accruals and reserves, and net operating losses, partially offset by accelerated depreciation expense and valuation allowance reserve. Our total net deferred tax assets at September 30, 2019 were $23.3 million . In preparing our condensed consolidated financial statements, management assesses the likelihood that its deferred tax assets will be realized from future taxable income. In evaluating our ability to recover our deferred income tax assets, management considers all available positive and negative evidence, including our operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis. A valuation allowance is established if it is determined that it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Management exercises significant judgment in determining our provisions for income taxes, our deferred tax assets and liabilities, and our future taxable income for purposes of assessing our ability to utilize any future tax benefit from our deferred tax assets. As of September 30, 2019 , we continue to demonstrate three-year cumulative pre-tax income in the U.S. federal and state tax jurisdictions; however, we have Arizona R&D Tax Credits expiring unutilized each year. Therefore, management has concluded that it is more likely than not that our Arizona R&D deferred tax asset will not be realized. As of September 30, 2019 , we have cumulative pre-tax losses in Australia, the U.K., and Canada, which limits the ability to consider other subjective evidence, such as projections for future growth. On the basis of this evaluation, a full valuation allowance has been recorded for these jurisdictions. The amount of the deferred tax asset considered realizable, however, could be adjusted in future periods if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for growth. We complete R&D tax credit studies for each year that an R&D tax credit is claimed for federal, Arizona, and California income tax purposes. Management has made the determination that it is more likely than not that the full benefit of the R&D tax credit will not be sustained on examination and recorded a liability for unrecognized tax benefits of $6.1 million as of September 30, 2019 . In addition, management accrued $0.1 million of interest for estimated uncertain tax positions related to certain federal income tax liabilities. Should the unrecognized benefit of $6.2 million be recognized, our effective tax rate would be favorably impacted. Approximately $2.9 million of the unrecognized tax benefit associated with R&D credits has been netted against the R&D deferred tax asset. Effective Tax Rate Our overall effective tax rate for the nine months ended September 30, 2019 , after discrete period adjustments, was 5.1% . Before discrete adjustments, the tax rate was 19.6% , which is less than the federal statutory rate, primarily due to state taxes and non-deductible expenses for items such as meals and entertainment, the executive compensation limitation under Internal Revenue Code ("IRC") Section 162(m), and an income inclusion from global intangible low-taxed income ("GILTI"), offset by a reduction for foreign-derived intangible income ("FDII") and R&D tax credits. The effective tax rate was favorably impacted by a $3.9 million discrete tax benefit primarily associated with windfalls related to stock-based compensation for RSUs that vested or stock options that were exercised during the nine months ended September 30, 2019 . This was partially offset by an unfavorable discrete item of $1.7 million related to the write off of certain deferred tax assets related to future stock compensation awards vesting for certain officers for whom deductibility of compensation is limited by IRC Section 162(m) and return to provision adjustments for jurisdictions in which tax returns have been filed. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Performance-based stock awards We have issued performance-based stock options and performance-based RSUs, the vesting of which is generally contingent upon the achievement of certain performance criteria related to our operating performance, as well as successful and timely development and market acceptance of future product introductions. In addition, certain of the performance RSUs have additional service requirements subsequent to the achievement of the performance criteria. Compensation expense is recognized over the requisite service period, which is defined as the longest explicit, implicit or derived service period based on management’s estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date. For both service-based and performance-based RSUs, we account for forfeitures as they occur as a reduction to stock-based compensation expense and additional paid-in-capital. For performance-based options with a vesting schedule based entirely on the attainment of both performance and market conditions, stock-based compensation expense is recognized for each pair of performance and market conditions over the longer of the expected achievement period of the performance and market conditions, beginning at the point in time that the relevant performance condition is considered probable of achievement. The fair value of such awards is estimated on the grant date using Monte Carlo simulations. CEO Performance Award On May 24, 2018 (the “Grant Date”), our stockholders approved the Board of Directors’ grant of 6,365,856 stock option awards to Patrick W. Smith, our CEO (the “CEO Performance Award”). The CEO Performance Award consists of 12 vesting tranches with a vesting schedule based entirely on the attainment of both operational goals (performance conditions) and market capitalization goals (market conditions), assuming continued employment either as the CEO or as both Executive Chairman and Chief Product Officer and service through each vesting date. Each of the 12 vesting tranches of the CEO Performance Award have a 10-year contractual term and will vest upon certification by the Board of Directors that both (i) the market capitalization goal for such tranche, which begins at $2.5 billion for the first tranche and increases by increments of $1.0 billion thereafter, and (ii) any one of the following eight operational goals focused on revenue or eight operational goals focused on Adjusted EBITDA have been met for the previous four consecutive fiscal quarters. Adjusted EBITDA for purposes of the CEO Performance Award ("Adjusted EBITDA (CEO Performance Award)") is defined as net income (loss) attributable to common stockholders before interest expense, investment interest income, provision (benefit) for income taxes, depreciation and amortization, and stock-based compensation expense. Eight Separate Revenue Goals (1) (in thousands) Eight Separate Adjusted EBITDA (CEO Performance Award) Goals (in thousands) Goal #1, $710,058 Goal #9, $125,000 Goal #2, $860,058 Goal #10, $155,000 Goal #3, $1,010,058 Goal #11, $175,000 Goal #4, $1,210,058 Goal #12, $190,000 Goal #5, $1,410,058 Goal #13, $200,000 Goal #6, $1,610,058 Goal #14, $210,000 Goal #7, $1,810,058 Goal #15, $220,000 Goal #8, $2,010,058 Goal #16, $230,000 (1) In connection with the business acquisition that was completed during the three months ended June 30, 2018, the revenue goals were adjusted for the acquiree's Target Revenue, as defined in the CEO Performance Award agreement. As of September 30, 2019 , the following operational goals were considered probable of achievement: • Total revenue of $710.1 million • Adjusted EBITDA (CEO Performance Award) of $125.0 million ; and • Total revenue of $860.1 million The first two market capitalization goals have been achieved as of September 30, 2019 . However, none of the stock options granted under the CEO Performance Award have vested thus far as the operational goals have not yet been achieved as of September 30, 2019 . As there are three operational goals considered probable of achievement, we recorded stock-based compensation expense of $10.7 million related to the CEO Performance Award from the Grant Date through September 30, 2019 . The number of stock options that would vest related to the three tranches is approximately 1.6 million shares. As of September 30, 2019 , we had $56.9 million of total unrecognized stock-based compensation expense for the performance goals that were considered probable of achievement, which will be recognized over a weighted-average period of 7.3 years. As of September 30, 2019 , we had unrecognized stock-based compensation expense of $178.3 million for the performance goals that were considered not probable of achievement. eXponential Stock Performance Plan On February 12, 2019, our shareholders approved the 2019 Stock Incentive Plan (the “2019 Plan”), which was adopted by the Board of Directors to reserve a sufficient number of shares to facilitate our eXponential Stock Performance Plan (“XSPP”) and grants of eXponential Stock Units (“XSUs”) under the plan. Pursuant to the XSPP, all eligible full-time U.S. employees were granted an award of 60 XSUs in January 2019, and certain employees had the opportunity to elect to receive a percentage of the value of their target compensation over the next nine years (2019-2027) in the form of additional XSUs. For employees who elected to receive XSUs, the XSU grants were made as an up front, lump sum grant in January 2019, and are intended to replace that portion of the target compensation they elected to receive in the form of XSUs for the next nine years . Accordingly, their go forward target compensation will be reduced until 2027 by the amount of such compensation that the employees elected to receive in the form of the January 2019 XSU grants. Additional employee awards were granted in February 2019 and September 2019. A total of approximately 5.9 million XSUs were granted in the nine months ended September 30, 2019 . The XSUs are grants of restricted stock units, each with a term of approximately nine years , that vest in 12 equal tranches. Each of the 12 tranches will vest upon certification by the Compensation Committee of the Board of Directors that both (i) the market capitalization goal for such tranche, which begins at $2.5 billion for the first tranche and increases by increments of $1.0 billion thereafter, and (ii) any one of eight operational goals focused on revenue or eight operational goals focused on Adjusted EBITDA (CEO Performance Award) have been met for the previous four consecutive fiscal quarters. The XSPP contains an anti-dilution provision, which is used to calculate a maximum number of shares outstanding for purposes of determining achievement of the market capitalization goals whereby the maximum number of shares used to calculate the market capitalization goal is calculated by organically growing the current number of shares outstanding by 3% per year (the "XSU Maximum"). Any shares of Stock issued to Patrick W. Smith upon the exercise of the stock options granted to Mr. Smith under the CEO Performance Award shall increase the XSU Maximum. The XSU Maximum shall also be adjusted for acquisitions, spin-offs or other changes in the number of outstanding shares of common stock, if such changes have a corresponding adjustment on the market capitalization goals. The market capitalization and operational goals are identical to the CEO Performance Award, except for the number of shares that are used to calculate the market capitalization goals if shares outstanding exceed the XSU Maximum. Additionally, because the grant date is different than that of the CEO Performance Award, the measurement period for market capitalization is not identical. Stock-based compensation expense associated with XSU awards is recognized over the longer of the expected achievement period for each pair of market capitalization and operational goals, beginning at the point in time when the relevant operational goal is considered probable of being met. The market capitalization goal period and the valuation of each tranche are determined using a Monte Carlo simulation, which is also used as the basis for determining the expected achievement period of the market capitalization goal. The probability of meeting an operational goal and the expected achievement point in time for meeting a probable operational goal are based on a subjective assessment of our forward-looking financial projections, taking into consideration statistical analysis. Even though no tranches of the XSU awards vest unless a market capitalization and a matching operational goal are both achieved, stock-based compensation expense is recognized when an operational goal is considered probable of achievement regardless of whether a market capitalization goal is actually achieved. The first two market capitalization goals have been achieved as of September 30, 2019 . However, none of the XSU tranches have vested thus far as the operational goals have not yet been achieved as of September 30, 2019 . As there are three operational goals considered probable of achievement, we recorded stock-based compensation expense of $4.3 million related to the XSU awards from their respective grant dates through September 30, 2019 . The number of XSU awards that would vest related to the three tranches is approximately 1.4 million shares. As of September 30, 2019 , we had $57.4 million of total unrecognized stock-based compensation expense for the performance goals that were considered probable of achievement, which will be recognized over a weighted-average period of 7.3 years. As of September 30, 2019 , we had unrecognized stock-based compensation expense of $131.6 million for the performance goals that were considered not probable of achievement. Given the complexity of the awards, we utilized Monte Carlo simulations to simulate a range of possible future market capitalizations for the Company over the term of the awards. The average of all iterations of the simulation was used as the basis for the valuation and market capitalization goal derived service period for each tranche. Additionally, we applied an illiquidity discount of between 9.8% and 16.8% to the valuation of XSUs because the awards specify a post-vest holding period of 2.5 years. Certain of the XSU awards specify a post-vest holding period of the longer of 2.5 years or until the next tranche vests. The illiquidity discounts were estimated using the Finnerty model and reduced by the impact of expected payroll and income taxes due upon vesting of the awards, as the related proportion of shares are expected to be sold to satisfy such obligations. We measured the grant date fair value of the XSU awards with the following assumptions: risk-free interest rate of between 1.64% and 2.62% , expected term of between 8.4 and 9 .0 years, expected volatility of between 44.12% and 45.47% , and dividend yield of 0.00% . Restricted Stock Units The following table summarizes RSU activity for the nine months ended September 30, 2019 (number of units and aggregate intrinsic value in thousands): Number of Units Weighted Average Grant-Date Fair Value Aggregate Units outstanding, beginning of year 1,655 $ 28.34 Granted 6,476 35.87 Released (450 ) 24.47 Forfeited (410 ) 34.63 Units outstanding, end of period 7,271 34.93 $ 412,866 Aggregate intrinsic value represents our closing stock price on the last trading day of the period, which was $56.78 per share, multiplied by the number of RSUs outstanding. As of September 30, 2019 , there was $99.2 million in unrecognized compensation costs related to RSUs under our stock plans for shares that are expected to vest. We expect to recognize the cost related to the RSUs over a weighted average period of 5.16 years . RSUs are released when vesting requirements are met. During the nine months ended September 30, 2019 , we granted 6.5 million RSUs, consisting of 0.5 million service-based RSUs and approximately 6.0 million performance-based RSUs, including 5.9 million XSUs. As of September 30, 2019 , the performance criteria had been met for approximately five thousand of the 6.0 million performance-based RSUs outstanding. Certain of the performance-based RSUs outstanding as of September 30, 2019 can vest with a range of shares earned being between 0% and 200% of the targeted shares granted, depending on the final achievement of pre-determined performance criteria as of the vesting date. The amount of RSUs included in the table above related to such grants is the target level. The maximum additional number of performance-based RSUs that could be earned is 0.3 million , which are not included in the table above. Certain RSUs that vested in the nine months ended September 30, 2019 were net-share settled such that we withheld shares to cover the employees’ tax obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. Total shares withheld related to RSUs were approximately 47 thousand and had a value of $3.3 million on their respective vesting dates as determined by the closing stock price on such dates. Payments for the employees’ tax obligations are reflected as a financing activity within the condensed consolidated statements of cash flows. We record a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. Stock Option Activity The following table summarizes stock option activity for the nine months ended September 30, 2019 (number of units and aggregate intrinsic value in thousands): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Options outstanding, beginning of year 6,458 $ 28.24 Granted — — Exercised (25 ) 4.23 Expired / terminated — — Options outstanding, end of period 6,433 28.33 8.33 $ 183,023 Options exercisable, end of period 67 4.53 1.19 3,506 Aggregate intrinsic value represents the difference between the exercise price of the underlying stock option awards and the closing market price of our common stock of $56.78 on September 30, 2019. The intrinsic value of options exercised for the nine months ended September 30, 2019 and 2018 was $1.1 million and $20.5 million , respectively. As of September 30, 2019 , total options outstanding included 6.4 million unvested performance-based stock options. Of this total, 1.6 million options relate to tranches of the CEO Performance Award considered probable of achievement. Stock-based Compensation Expense The following table summarizes the composition of stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of products sold and services delivered $ 312 $ 93 $ 775 $ 359 Sales, general and administrative expenses 9,508 3,748 19,130 8,783 Research and development expenses 3,843 2,414 10,290 6,160 Total stock-based compensation expense $ 13,663 $ 6,255 $ 30,195 $ 15,302 Stock Incentive Plan In February 2019, our shareholders approved the 2019 Plan authorizing an additional 6.0 million shares, plus remaining available shares under prior plans, for issuance under the new plan. Combined with the legacy stock incentive plans, there are 2.2 million shares available for grant as of September 30, 2019 . Stock Inducement Plan In September 2019, our Board of Directors adopted the Axon Enterprise, Inc. 2019 Stock Inducement Plan (the “2019 Inducement Plan”) pursuant to which we reserved 500,000 shares of common stock for issuance under the Inducement Plan. In accordance with Rule 5635(c)(4) and Rule 5635(c)(3) of the Nasdaq Listing Rules, awards under the Inducement Plan may only be made to individuals not previously employed by us (or following such individuals’ bona fide periods of non-employment by us), as an inducement material to the individuals’ entry into employment with us. The terms and conditions of the 2019 Inducement Plan are substantially similar to our stockholder-approved 2019 Plan. As of September 30, 2019, there were 30,000 shares available for grant under the 2019 Inducement Plan. Stock Repurchase Plan In February 2016, our Board of Directors authorized a stock repurchase program to acquire up to $50.0 million of our outstanding common stock subject to stock market conditions and corporate considerations. During the nine months ended September 30, 2019 and 2018, no common shares were purchased under the program. As of September 30, 2019 , $16.3 million remains available under the plan for future purchases. Any future purchases will be discretionary. |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit We have a $50.0 million unsecured revolving line of credit with a domestic bank, of which $10.0 million is available for letters of credit. The credit agreement matures on December 31, 2021 and has an accordion feature which allows for an increase in the total line of credit up to $100.0 million , subject to certain conditions, including the availability of additional bank commitments. At September 30, 2019 and December 31, 2018, there were no borrowings under the line. Under the terms of the line of credit, available borrowings are reduced by outstanding letters of credit. As of September 30, 2019 , we had letters of credit outstanding of approximately $3.6 million under the facility and available borrowing of $46.4 million , excluding amounts available under the accordion feature. Advances under the line of credit bear interest at LIBOR plus 1.0 to 1.5% per year determined in accordance with a pricing grid based on our funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. We are required to comply with a maximum funded debt to EBITDA ratio of no greater than 2.50 to 1.00 based upon a trailing four fiscal quarter period. At September 30, 2019 , our funded debt to EBITDA ratio was 0.001 to 1.00. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Lease Obligations We determine if an arrangement is a lease at inception. Operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Additionally, we use the portfolio approach in determining the discount rate used to present value lease payments. We give consideration to our line of credit as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. The ROU asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. We have operating and finance leases for office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning on or after January 1, 2019, we account for lease components separately from non-lease components for all asset classes. Our leases have remaining terms of less than 1 to approximately 4 years, some of which include one or more options to renew for up to 2 years, and some of which include options to terminate the leases within 1 year. The exercise of lease renewal options is at our sole discretion and such options are included in ROU assets and liabilities for renewal periods that are reasonably certain of exercise. Certain of our lease agreements include stated rental payment escalations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We sublease certain real estate to third parties. Finance leases as of September 30, 2019 were immaterial. Leases (in thousands) Classification September 30, 2019 Assets Operating lease assets Other assets $ 10,592 Liabilities Current Operating Other current liabilities $ 3,959 Noncurrent Operating Other long-term liabilities 7,687 Total lease liabilities $ 11,646 The components of lease expense were as follows (in thousands): Classification Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense (1) Sales, general and administrative expenses (2) $ 1,264 $ 3,418 Sublease income Other income (82 ) (219 ) Net lease expense $ 1,182 $ 3,199 (1) Includes short-term leases, which are immaterial. (2) An immaterial portion of operating lease expense is included within research and development expenses and cost of sales. Other information related to leases was as follows (in thousands, except lease term and discount rate): Nine Months Ended September 30, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,229 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 888 Weighted average remaining lease term: Operating leases 3.3 years Weighted average discount rate: Operating leases 3.4 % Future minimum lease payments under non-cancellable leases as of September 30, 2019 were as follows (in thousands): Operating Sublease income Net 2019 Remaining $ 1,114 $ (82 ) $ 1,032 2020 4,545 (82 ) 4,463 2021 3,639 — 3,639 2022 2,638 — 2,638 2023 1,173 — 1,173 2024 — — — Thereafter — — — Total minimum lease payments 13,109 (164 ) 12,945 Less: Amount representing interest (1,299 ) Present value of lease payments $ 11,646 As of September 30, 2019 , we do not have any leases that have not yet commenced. Disclosures related to periods prior to adoption of Topic 842 Rent expense under all operating leases, including both cancelable and non-cancellable leases, was $4.2 million and $2.9 million for the years ended December 31, 2018 and 2017, respectively. Future minimum lease payments under non-cancelable leases at December 31, 2018, were as follows (in thousands): Operating Capital 2019 $ 3,670 $ 40 2020 3,572 36 2021 2,961 — 2022 2,001 — 2023 573 — Thereafter — — Total minimum lease payments $ 12,777 76 Less: Amount representing interest (6 ) Capital lease obligation $ 70 |
Leases | Leases Lease Obligations We determine if an arrangement is a lease at inception. Operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Additionally, we use the portfolio approach in determining the discount rate used to present value lease payments. We give consideration to our line of credit as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. The ROU asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. We have operating and finance leases for office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning on or after January 1, 2019, we account for lease components separately from non-lease components for all asset classes. Our leases have remaining terms of less than 1 to approximately 4 years, some of which include one or more options to renew for up to 2 years, and some of which include options to terminate the leases within 1 year. The exercise of lease renewal options is at our sole discretion and such options are included in ROU assets and liabilities for renewal periods that are reasonably certain of exercise. Certain of our lease agreements include stated rental payment escalations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We sublease certain real estate to third parties. Finance leases as of September 30, 2019 were immaterial. Leases (in thousands) Classification September 30, 2019 Assets Operating lease assets Other assets $ 10,592 Liabilities Current Operating Other current liabilities $ 3,959 Noncurrent Operating Other long-term liabilities 7,687 Total lease liabilities $ 11,646 The components of lease expense were as follows (in thousands): Classification Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense (1) Sales, general and administrative expenses (2) $ 1,264 $ 3,418 Sublease income Other income (82 ) (219 ) Net lease expense $ 1,182 $ 3,199 (1) Includes short-term leases, which are immaterial. (2) An immaterial portion of operating lease expense is included within research and development expenses and cost of sales. Other information related to leases was as follows (in thousands, except lease term and discount rate): Nine Months Ended September 30, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,229 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 888 Weighted average remaining lease term: Operating leases 3.3 years Weighted average discount rate: Operating leases 3.4 % Future minimum lease payments under non-cancellable leases as of September 30, 2019 were as follows (in thousands): Operating Sublease income Net 2019 Remaining $ 1,114 $ (82 ) $ 1,032 2020 4,545 (82 ) 4,463 2021 3,639 — 3,639 2022 2,638 — 2,638 2023 1,173 — 1,173 2024 — — — Thereafter — — — Total minimum lease payments 13,109 (164 ) 12,945 Less: Amount representing interest (1,299 ) Present value of lease payments $ 11,646 As of September 30, 2019 , we do not have any leases that have not yet commenced. Disclosures related to periods prior to adoption of Topic 842 Rent expense under all operating leases, including both cancelable and non-cancellable leases, was $4.2 million and $2.9 million for the years ended December 31, 2018 and 2017, respectively. Future minimum lease payments under non-cancelable leases at December 31, 2018, were as follows (in thousands): Operating Capital 2019 $ 3,670 $ 40 2020 3,572 36 2021 2,961 — 2022 2,001 — 2023 573 — Thereafter — — Total minimum lease payments $ 12,777 76 Less: Amount representing interest (6 ) Capital lease obligation $ 70 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Land Lease Purchase Agreement On December 13, 2018, we entered into a Purchase and Sale Agreement ("PSA") to purchase a leasehold interest to a parcel of land located in Maricopa County, Arizona for a period of 84 years, on which we intended to construct our new headquarters. On October 10, 2019, we terminated the PSA because we were unable to secure design approval by the Salt River Pima-Maricopa Indian Community. We expect to forfeit our escrow deposit of approximately $0.2 million , and no further amounts are owed to the counterparty under the agreement. In connection with the termination of the PSA, we recorded an impairment charge of $0.7 million , excluding the aforementioned forfeited deposit, related to the abandonment of certain planning and site development activities. Data Storage Purchase Commitment In June 2019, we entered into a purchase agreement for cloud data storage with a 3 year term beginning July 1, 2019. The purchase agreement includes a total commitment of $50.0 million , with an up-front prepayment of $15.0 million that was made in July 2019. The current balance of the prepayment is included within prepaid expenses and other current assets on our condensed consolidated balance sheet. Storage fees under this agreement were $3.7 million for the three and nine months ended September 30, 2019, and were recorded in cost of service sales. The remaining purchase commitment at September 30, 2019 was $46.3 million . Product Litigation We are currently named as a defendant in eight lawsuits in which the plaintiffs allege either wrongful death or personal injury in situations in which a TASER CEW was used by law enforcement officers in connection with arrests. While the facts vary from case to case, these product liability claims typically allege defective product design, manufacturing, and/or failure to warn. They seek compensatory and sometimes punitive damages, often in unspecified amounts. We continue to aggressively defend all product litigation. As a general rule, it is our policy not to settle suspect injury or death cases. Exceptions are sometimes made where the settlement is strategically beneficial to us. Due to the confidential nature of our litigation strategy and the confidentiality agreements that are executed in the event of a settlement, we do not identify or comment on specific settlements by case or amount. Based on current information, we do not believe that the outcome of any such legal proceeding will have a material effect on our financial position, results of operations, or cash flows. We are self-insured for the first $5.0 million of any product claim made after 2014. No judgment or settlement has ever exceeded this amount in any products case. We continue to maintain product liability insurance coverage, including an insurance policy fronting arrangement, above our self-insured retention with various limits depending on the policy period. Other Litigation We are a defendant in a litigation matter filed by Digital Ally Inc. (“Digital”) in the District of Kansas alleging patent infringement regarding our Axon Signal technology. Axon was granted summary judgment of non-infringement on June 17, 2019 and judgment was entered in our favor on all of Digital's claims. Digital has appealed the ruling. We are also a defendant in a consumer class action lawsuit previously filed and dismissed in California in 2018 and now refiled in the District of Nevada on April 9, 2019 (Case No. 3:1-cv-00192) by consumer weapon purchaser Douglas Richey (“Richey”). The case alleges the TASER Pulse, X2 and X26P CEWs have a faulty safety switch based on Richey’s Pulse allegedly discharging inside its neoprene case in a jacket pocket without injury. Any such discharge was likely due to static electricity, as disclosed in our consumer warnings. We will vigorously defend this claim and the propriety of any class certification. Our motion to dismiss is pending. U.S. Federal Trade Commission Investigation In June 2018 we received a letter from the U.S. Federal Trade Commission (“FTC”) with respect to its non-public investigation into our acquisition of VIEVU, LLC in May 2018. The FTC issued a subpoena for certain information and documentation relating to the acquisition on March 21, 2019. We are cooperating with the investigation. General From time to time, we are notified that we may be a party to a lawsuit or that a claim is being made against us. It is our policy to not disclose the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on us. After carefully assessing the claim, and assuming we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend any lawsuit filed against us. We record a liability when losses are deemed probable and reasonably estimable. When losses are deemed reasonably possible but not probable, we determine whether it is possible to provide an estimate of the amount of the loss or range of possible losses for the claim, if material for disclosure. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of our prevailing, the availability of insurance, and the severity of any potential loss. We reevaluate and update accruals as matters progress over time. Based on our assessment of outstanding litigation and claims as of September 30, 2019 , we have determined that it is not reasonably possible that these lawsuits will individually, or in the aggregate, materially affect our results of operations, financial condition or cash flows. However, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows. Off-Balance Sheet Arrangements Under certain circumstances, we use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the installation and integration of Axon cameras and related technologies. Certain of our letters of credit and surety bonds have stated expiration dates with others being released as the contractual performance terms are completed. At September 30, 2019 , we had outstanding letters of credit of $3.6 million that are expected to expire in May 2020 and September 2021. Additionally, we had $24.6 million of outstanding surety bonds at September 30, 2019 , with $1.1 million expiring in 2020, $2.3 million expiring in 2021, $3.2 million expiring in 2022, $7.5 million expiring in 2023 and the remaining $10.5 million |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We subscribe to various cloud-based applications from Salesforce. Bret Taylor, who was a member of our Board of Directors through June 14, 2019, serves as President and Chief Product Officer of Salesforce. We incur costs at different times throughout the year, typically in advance of services being provided, and subsequently amortize these costs ratably to expense as services are provided over the contractual term. The cost to subscribe to various cloud-based hosting arrangements from Salesforce was $0.5 million and $0.4 million for the three months ended September 30, 2019 and 2018, respectively, and $1.4 million and $1.3 million for the nine months ended September 30, 2019 and 2018, respectively. There were no amounts due to Salesforce as of September 30, 2019 . Amounts due to Salesforce as of December 31, 2018 were negligible. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We have a defined contribution 401 (k) plan for eligible employees, which is qualified under Sections 401 (a) and 401 (k) of the Internal Revenue Code of 1986, as amended. Employees are entitled to make tax-deferred contributions of up to the maximum amount allowed by law of their eligible compensation. We also have a non-qualified deferred compensation plan for certain executives, employees and non-employee directors through which participants may elect to postpone the receipt and taxation of a portion of their compensation, including stock-based compensation, received from us. The non-qualified deferred compensation plan allows eligible participants to defer up to 80% of their base salary and up to 100% of other types of compensation. The plan also allows for matching and discretionary employer contributions. Employee deferrals are deemed 100% vested upon contribution. Distributions from the plan are made upon retirement, death, separation of service, specified date or upon the occurrence of an unforeseeable emergency. Distributions can be paid in a variety of forms from lump sum to installments over a period of years. Participants in the plan are entitled to select from a wide variety of investments available under the plan and are allocated gains or losses based upon the performance of the investments selected by the participant. All gains or losses are allocated fully to plan participants and we do not guarantee a rate of return on deferred balances. Assets related to this plan consist of corporate-owned life insurance contracts and are included in other assets in the condensed consolidated balance sheets; see Note 6 for balances. Participants have no rights or claims with respect to any plan assets and any such assets are subject to the claims of our general creditors. Contributions to the plans are made by both the employee and us. Our contributions to the 401(k) plan are based on the level of employee contributions and are immediately vested. Future matching contributions to the plans are at our sole discretion. We also sponsor defined contribution plans in Australia, Finland, and the United Kingdom. Our matching contributions for all defined contribution plans were $0.9 million and $0.9 million for the three months ended September 30, 2019 and 2018 , respectively, and $3.5 million and $2.4 million for the nine months ended September 30, 2019 and 2018 |
Segment Data
Segment Data | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Data | Segment Data Our operations are comprised of two reportable segments: the manufacture and sale of CEWs, batteries, accessories, extended warranties and other products and services (the “TASER” segment); and the software and sensors business, which includes the sale of devices, wearables, applications, cloud and mobile products (collectively, the “Software and Sensors” segment). Our Chief Executive Officer, who is the CODM, is not provided asset information or sales, general, and administrative expense by segment. Information relative to our reportable segments was as follows (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 TASER Software and Sensors 1 Total TASER Software and Sensors Total Net sales from products $ 71,424 $ 25,073 $ 96,497 $ 63,666 $ 17,257 $ 80,923 Net sales from services 319 34,021 34,340 — 23,913 23,913 Net sales 71,743 59,094 130,837 63,666 41,170 104,836 Cost of product sales 26,504 15,941 42,445 19,256 13,697 32,953 Cost of service sales — 8,223 8,223 — 6,250 6,250 Cost of sales 26,504 24,164 50,668 19,256 19,947 39,203 Gross margin $ 45,239 $ 34,930 $ 80,169 $ 44,410 $ 21,223 $ 65,633 Research and development $ 3,485 $ 21,644 $ 25,129 $ 4,837 $ 17,145 $ 21,982 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 TASER Software and Sensors 1 Total TASER Software and Sensors Total Net sales from products $ 197,148 $ 67,829 $ 264,977 $ 187,814 $ 50,804 $ 238,618 Net sales from services 558 93,474 94,032 — 66,659 66,659 Net sales 197,706 161,303 359,009 187,814 117,463 305,277 Cost of product sales 74,044 46,221 120,265 57,480 38,994 96,474 Cost of service sales — 24,098 24,098 — 15,566 15,566 Cost of sales 74,044 70,319 144,363 57,480 54,560 112,040 Gross margin $ 123,662 $ 90,984 $ 214,646 $ 130,334 $ 62,903 $ 193,237 Research and development $ 10,284 $ 61,692 $ 71,976 $ 11,816 $ 43,786 $ 55,602 1 Cost of service sales for the three and nine months ended September 30, 2019 includes approximately $0.7 million and $1.6 million |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Use of Estimates These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in our annual consolidated financial statements for the year ended December 31, 2018 , as filed on Form 10-K, with the exception of our adoption of certain accounting pronouncements which we describe below. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with our Form 10-K for the year ended December 31, 2018 . The results of operations for the three and nine months ended September 30, 2019 and 2018 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: • product warranty reserves, • inventory valuation, • revenue recognition, • valuation of goodwill, intangible and long-lived assets, • recognition, measurement and valuation of current and deferred income taxes, • stock-based compensation, • recognition and measurement of lease liabilities, • recognition and measurement of contingencies and accrued litigation expense, and • fair values of identified tangible and intangible assets acquired and liabilities assumed in business combinations. Actual results could differ materially from those estimates. |
Use of Estimates | Basis of Presentation and Use of Estimates These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in our annual consolidated financial statements for the year ended December 31, 2018 , as filed on Form 10-K, with the exception of our adoption of certain accounting pronouncements which we describe below. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with our Form 10-K for the year ended December 31, 2018 . The results of operations for the three and nine months ended September 30, 2019 and 2018 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: • product warranty reserves, • inventory valuation, • revenue recognition, • valuation of goodwill, intangible and long-lived assets, • recognition, measurement and valuation of current and deferred income taxes, • stock-based compensation, • recognition and measurement of lease liabilities, • recognition and measurement of contingencies and accrued litigation expense, and • fair values of identified tangible and intangible assets acquired and liabilities assumed in business combinations. Actual results could differ materially from those estimates. |
Segment Information | Segment Information Our operations are comprised of two reportable segments: the manufacture and sale of conducted electrical weapons ("CEWs"), batteries, accessories, extended warranties and other products and services (the “TASER” segment); and the development, manufacture, and sale of software and sensors, which includes the sale of devices, wearables, applications, cloud and mobile products (collectively, the “Software and Sensors” segment). Revenue from our “products” in the Software and Sensors segment are generally from sales of sensors, including on-officer body cameras, Axon Fleet cameras, other hardware sensors, warranties on sensors, and other products, and is sometimes referred to as "Sensors and Other revenue." Revenue from our “services” in the Software and Sensors segment consist of sales related to the Axon Cloud, which includes Axon Evidence, cloud-based evidence management software revenue, other recurring cloud-hosted software revenue and related professional services, and is sometimes referred to as "Axon Cloud revenue." Within the Software and Sensors segment, we include only revenues and costs attributable to that segment, which costs include: costs of sales for both products and services, direct labor, product management and research and development ("R&D") for products included, or to be included, within the Software and Sensors segment. All other costs are included in the TASER segment. |
Geographic Information and Major Customers | Geographic Information and Major Customers / Suppliers For the three and nine months ended September 30, 2019 and 2018, no individual country outside the U.S. represented more than 10% of total net sales. Individual sales transactions in the international market are generally larger and occur more intermittently than in the domestic market due to the profile of our customers. For the three and nine months ended September 30, 2019 and 2018, no customer represented more than 10% of total net sales. At September 30, 2019 and December 31, 2018 , no customer represented more than 10% of the aggregate balance of accounts and notes receivable and contract assets. We currently purchase both off the shelf and custom components, including, but not limited to, finished circuit boards, injection-molded plastic components, small machined parts, custom cartridge components, electronic components, and off the shelf sub-assemblies from suppliers located in the U.S., Canada, China, Israel, Mexico, Republic of Korea, and Taiwan. Although we currently obtain many of these components from single source suppliers, we own the injection molded component tooling, most of the designs, and the test fixtures used in their production for all custom components. As a result, we believe we could obtain alternative suppliers in most cases without incurring significant production delays. We also strategically hold safety stock levels on custom components to further reduce this risk. For off the shelf components, we believe that in most cases there are readily available alternative suppliers who can consistently meet our needs for these components. We acquire most of our components on a purchase order basis and do not have any significant long-term contracts with component suppliers. |
Income per Common Share | Income per Common Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Potentially dilutive securities include outstanding stock options and unvested restricted stock units ("RSUs"). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities. |
Standard Warranties | Standard Warranties We warranty our CEWs, Axon cameras and certain related accessories from manufacturing defects on a limited basis for a period of one year after purchase and, thereafter, will repair or replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold when revenue is recorded for the related product. Future warranty costs are estimated based on historical data related to warranty claims on a quarterly basis and this rate is applied to current product sales. Historically, reserve amounts have been increased if management becomes aware of a component failure or other issue that could result in larger than anticipated warranty claims from customers. The warranty reserve is reviewed quarterly to verify that it sufficiently reflects the remaining warranty obligations based on the anticipated expenditures over the balance of the warranty obligation period, and adjustments are made when actual warranty claim experience differs from estimates. The warranty reserve is included in accrued liabilities on the accompanying condensed consolidated balance sheets. |
Fair Value of Financial Instruments | Fair Value Measurements and Financial Instruments The fair value framework prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: • Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. • Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. • Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about inputs that market participants would use in pricing an asset or liability. We have cash equivalents and investments, which at September 30, 2019 and December 31, 2018 were comprised of money market funds and, at September 30, 2019 , also included agency bonds, corporate bonds, municipal bonds, and U.S. Treasury repurchase agreements. See additional disclosure regarding the fair value of our cash equivalents and investments in Note 3. Included in the balance of other assets as of September 30, 2019 and December 31, 2018 was $4.0 million and $3.6 million , respectively, related to corporate-owned life insurance policies which are used to fund our deferred compensation plan. We determine the fair value of insurance contracts by obtaining the cash surrender value of the contracts from the issuer, a Level 2 valuation technique. Our financial instruments also include accounts and notes receivable, contract assets, accounts payable and accrued liabilities. As these instruments are generally short-term in nature, their carrying values approximate their fair values on the accompanying condensed consolidated balance sheets. |
Valuation of Goodwill, Intangibles and Long-lived Assets | Valuation of Goodwill, Intangibles and Long-lived Assets We evaluate whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets, excluding goodwill and intangible assets with indefinite useful lives, may warrant revision or that the remaining balance of these assets may not be recoverable. Such circumstances could include, but are not limited to, a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, we estimate the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. During the nine months ended September 30, 2019, we abandoned certain capitalized software related to implementation work on an enterprise resource planning system conversion, resulting in an impairment charge of $1.3 million , which was included in sales, general and administrative expense in the accompanying condensed consolidated statements of operations. During the three months ended September 30, 2019, we abandoned certain planning and site development activities related to our planned new headquarters, resulting in an impairment charge of $0.7 million , which was included in sales, general and administrative expense in the accompanying condensed consolidated statements of operations. We do not amortize goodwill and intangible assets with indefinite useful lives; rather such assets are required to be tested for impairment at least annually or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We perform our annual goodwill and intangible asset impairment tests in the fourth quarter of each year. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability among organizations by requiring the recognition of right-of-use (“ROU”) assets and lease liabilities on the balance sheet. In July 2018, the FASB issued additional guidance which provided an additional transition method for adopting the updated guidance. Most prominent among the changes in the standard is the requirement for lessees to recognize ROU assets and lease liabilities for those leases that were classified as operating leases under previous U.S. GAAP. On January 1, 2019, we adopted Topic 842 by applying the non-comparative modified retrospective method of adoption. Under this method, financial information related to periods prior to adoption will be as originally reported under the then-current standard (Topic 840, Leases). Results for reporting periods beginning on or after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted, and continue to be reported in accordance with our historic accounting under Topic 840. We elected to apply the package of practical expedients to not reassess whether a contract is or contains a lease, lease classification, or initial lease costs for all leases that commenced before the adoption date. The adoption had a material impact to our condensed consolidated balance sheet. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. There was no other impact from the adoption. The adjustments to the opening balance sheet were as follows (in thousands): December 31, 2018 Impact of Adoption of Topic 842 on Opening Balance Sheet January 1, 2019 (As reported) (As adjusted) Consolidated Balance Sheet Data: Other assets $ 22,999 $ 12,483 $ 35,482 Total assets 719,540 12,483 732,023 — Accrued liabilities 41,092 (1,138 ) 39,954 Other current liabilities 37 3,588 3,625 Total current liabilities 166,011 2,450 168,461 Other long-term liabilities 5,704 10,033 15,737 Total liabilities 252,216 12,483 264,699 Total liabilities and stockholders' equity 719,540 12,483 732,023 See Note 11 for further disclosures related to Topic 842. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718), expanding the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. We adopted this standard on January 1, 2019 and the adoption had no impact on our condensed consolidated financial statements. Effective the first quarter of 2020: In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 includes an impairment model (known as the current expected credit loss model) on financial instruments and other commitments that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. The use of forecasted information is intended to incorporate more timely information in the estimate of expected credit loss. This ASU will also require enhanced disclosures relating to significant estimates and judgments used in estimating credit losses, as well as credit quality. We are currently in the process of selecting the appropriate credit loss models for our investments, accounts and notes receivable, and contract assets and evaluating our processes and controls in preparation for the adoption of ASU 2016-13. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements. The amendments apply to the disclosures of changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted, and an entity is also permitted to early adopt any removed or modified disclosures and delay adoption of the additional disclosures until their effective date. Adoption of this ASU is not expected to have a material impact on our consolidated financial statements. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Weighted Average Number of Shares Outstanding and Income Per Share | The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator for basic and diluted earnings per share: Net income $ 6,104 $ 5,711 $ 13,261 $ 27,122 Denominator: Weighted average shares outstanding 59,278 58,340 59,128 55,681 Dilutive effect of stock-based awards 781 1,465 810 1,573 Diluted weighted average shares outstanding 60,059 59,805 59,938 57,254 Anti-dilutive stock-based awards excluded 12,477 6,793 12,546 6,760 Net income per common share: Basic $ 0.10 $ 0.10 $ 0.22 $ 0.49 Diluted $ 0.10 $ 0.10 $ 0.22 $ 0.47 |
Summary of Changes in Estimated Product Warranty Liabilities | Changes in our estimated product warranty liabilities were as follows (in thousands): Nine Months Ended September 30, 2019 2018 Balance, beginning of period $ 898 $ 644 Utilization of accrual (718 ) (384 ) Warranty expense 891 699 Balance, end of period $ 1,071 $ 959 |
Adjustments to Opening Balance Sheet | The adjustments to the opening balance sheet were as follows (in thousands): December 31, 2018 Impact of Adoption of Topic 842 on Opening Balance Sheet January 1, 2019 (As reported) (As adjusted) Consolidated Balance Sheet Data: Other assets $ 22,999 $ 12,483 $ 35,482 Total assets 719,540 12,483 732,023 — Accrued liabilities 41,092 (1,138 ) 39,954 Other current liabilities 37 3,588 3,625 Total current liabilities 166,011 2,450 168,461 Other long-term liabilities 5,704 10,033 15,737 Total liabilities 252,216 12,483 264,699 Total liabilities and stockholders' equity 719,540 12,483 732,023 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue by Product and Service Offering and Geography | The following tables present our revenues by primary product and service offering (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 TASER Software and Sensors Total TASER Software and Sensors Total TASER 7 $ 20,214 $ — $ 20,214 $ — $ — $ — TASER X26P 11,578 — 11,578 17,998 — 17,998 TASER X2 13,241 — 13,241 20,392 — 20,392 TASER Pulse and Bolt 1,132 — 1,132 1,402 — 1,402 Single cartridges 18,901 — 18,901 18,406 — 18,406 Axon Body — 6,763 6,763 — 4,744 4,744 Axon Flex — 1,670 1,670 — 1,325 1,325 Axon Fleet — 4,341 4,341 — 1,809 1,809 Axon Dock — 3,358 3,358 — 2,178 2,178 Axon Evidence and cloud services 218 34,022 34,240 — 23,915 23,915 TASER Cam — 534 534 — 717 717 Extended warranties 4,543 4,714 9,257 4,123 3,161 7,284 Other 1,916 3,692 5,608 1,345 3,321 4,666 Total $ 71,743 $ 59,094 $ 130,837 $ 63,666 $ 41,170 $ 104,836 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 TASER Software and Sensors Total TASER Software and Sensors Total TASER 7 $ 39,466 $ — $ 39,466 $ — $ — $ — TASER X26P 37,832 — 37,832 52,618 — 52,618 TASER X2 40,413 — 40,413 62,686 — 62,686 TASER Pulse and Bolt 2,920 — 2,920 3,849 — 3,849 Single cartridges 57,354 — 57,354 51,763 — 51,763 Axon Body — 18,820 18,820 — 15,082 15,082 Axon Flex — 4,517 4,517 — 4,529 4,529 Axon Fleet — 10,977 10,977 — 6,640 6,640 Axon Dock — 9,401 9,401 — 7,332 7,332 Axon Evidence and cloud services 363 93,461 93,824 — 64,513 64,513 TASER Cam — 2,481 2,481 — 2,839 2,839 Extended warranties 13,341 14,064 27,405 11,567 8,521 20,088 Other 6,017 7,582 13,599 5,331 8,007 13,338 Total $ 197,706 $ 161,303 $ 359,009 $ 187,814 $ 117,463 $ 305,277 The following table presents our revenues disaggregated by geography (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 United States $ 110,809 85 % $ 88,125 84 % $ 298,736 83 % $ 244,806 80 % Other countries 20,028 15 16,711 16 60,273 17 60,471 20 Total $ 130,837 100 % $ 104,836 100 % $ 359,009 100 % $ 305,277 100 % |
Contract with Customer, Assets and Liabilities | The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the nine months ended September 30, 2019 (in thousands): September 30, 2019 Contract assets, net $ 33,635 Contract liabilities (deferred revenue) 209,309 Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period 83,159 Contract liabilities (deferred revenue) consisted of the following (in thousands): September 30, 2019 December 31, 2018 Current Long-Term Total Current Long-Term Total Warranty: TASER $ 11,677 $ 16,633 $ 28,310 $ 12,797 $ 16,847 $ 29,644 Software and Sensors 9,899 5,450 15,349 8,273 6,516 14,789 21,576 22,083 43,659 21,070 23,363 44,433 Hardware: TASER 4,378 17,601 21,979 9,355 15,598 24,953 Software and Sensors 39,308 27,357 66,665 20,878 24,685 45,563 43,686 44,958 88,644 30,233 40,283 70,516 Services: TASER 11 396 407 — — — Software and Sensors 61,887 14,712 76,599 55,713 10,771 66,484 61,898 15,108 77,006 55,713 10,771 66,484 Total $ 127,160 $ 82,149 $ 209,309 $ 107,016 $ 74,417 $ 181,433 September 30, 2019 December 31, 2018 Current Long-Term Total Current Long-Term Total TASER $ 16,066 $ 34,630 $ 50,696 $ 22,152 $ 32,445 $ 54,597 Software and Sensors 111,094 47,519 158,613 84,864 41,972 126,836 Total $ 127,160 $ 82,149 $ 209,309 $ 107,016 $ 74,417 $ 181,433 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type | The following tables summarize our cash, cash equivalents, and held-to-maturity investments at September 30, 2019 and December 31, 2018 (in thousands): As of September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 80,269 $ — $ — $ 80,269 $ 80,269 $ — $ — Level 1: Money market funds 37,311 — — 37,311 37,311 — — Agency bonds 32,834 4 (6 ) 32,832 12,068 2,000 18,766 Subtotal 70,145 4 (6 ) 70,143 49,379 2,000 18,766 Level 2: State and municipal obligations 4,454 1 (1 ) 4,454 — 4,454 — Corporate bonds 127,987 51 (31 ) 128,007 2,903 102,459 22,625 U.S. Treasury repurchase agreements 70,000 — — 70,000 70,000 — — Subtotal 202,441 52 (32 ) 202,461 72,903 106,913 22,625 Total $ 352,855 $ 56 $ (38 ) $ 352,873 $ 202,551 $ 108,913 $ 41,391 As of December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 144,095 $ — $ — $ 144,095 $ 144,095 $ — $ — Level 1: Money market funds 205,367 — — 205,367 205,367 — — Total $ 349,462 $ — $ — $ 349,462 $ 349,462 $ — $ — |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Raw materials $ 21,096 $ 19,670 Finished goods 19,570 14,093 Total inventory $ 40,666 $ 33,763 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2019 were as follows (in thousands): TASER Software and Sensors Total Balance, beginning of period $ 1,338 $ 23,643 $ 24,981 Foreign currency translation adjustment (52 ) (53 ) (105 ) Balance, end of period $ 1,286 $ 23,590 $ 24,876 |
Indefinite-Lived Intangible Assets Other than Goodwill | Intangible assets (other than goodwill) consisted of the following (in thousands): September 30, 2019 December 31, 2018 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable (definite-lived) intangible assets: Domain names 5-10 years $ 3,161 $ (959 ) $ 2,202 $ 3,161 $ (732 ) $ 2,429 Issued patents 4-15 years 3,170 (1,268 ) 1,902 2,940 (1,106 ) 1,834 Issued trademarks 3-11 years 1,006 (532 ) 474 1,053 (599 ) 454 Customer relationships 4-8 years 3,664 (1,263 ) 2,401 3,701 (880 ) 2,821 Non-compete agreements 3-4 years 446 (397 ) 49 540 (439 ) 101 Developed technology 3-7 years 10,660 (5,982 ) 4,678 13,404 (7,081 ) 6,323 Re-acquired distribution rights 2 years 1,932 (1,932 ) — 1,928 (1,813 ) 115 Total amortizable 24,039 (12,333 ) 11,706 26,727 (12,650 ) 14,077 Not amortizable (indefinite-lived) intangible assets: TASER trademark 900 900 900 900 Patents and trademarks pending 922 922 958 958 Total not amortizable 1,822 1,822 1,858 1,858 Total intangible assets $ 25,861 $ (12,333 ) $ 13,528 $ 28,585 $ (12,650 ) $ 15,935 |
Finite-Lived Intangible Assets Other than Goodwill | Intangible assets (other than goodwill) consisted of the following (in thousands): September 30, 2019 December 31, 2018 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable (definite-lived) intangible assets: Domain names 5-10 years $ 3,161 $ (959 ) $ 2,202 $ 3,161 $ (732 ) $ 2,429 Issued patents 4-15 years 3,170 (1,268 ) 1,902 2,940 (1,106 ) 1,834 Issued trademarks 3-11 years 1,006 (532 ) 474 1,053 (599 ) 454 Customer relationships 4-8 years 3,664 (1,263 ) 2,401 3,701 (880 ) 2,821 Non-compete agreements 3-4 years 446 (397 ) 49 540 (439 ) 101 Developed technology 3-7 years 10,660 (5,982 ) 4,678 13,404 (7,081 ) 6,323 Re-acquired distribution rights 2 years 1,932 (1,932 ) — 1,928 (1,813 ) 115 Total amortizable 24,039 (12,333 ) 11,706 26,727 (12,650 ) 14,077 Not amortizable (indefinite-lived) intangible assets: TASER trademark 900 900 900 900 Patents and trademarks pending 922 922 958 958 Total not amortizable 1,822 1,822 1,858 1,858 Total intangible assets $ 25,861 $ (12,333 ) $ 13,528 $ 28,585 $ (12,650 ) $ 15,935 |
Estimated Amortization Expense of Intangible Assets | Estimated amortization for intangible assets with definite lives for the remaining three months of 2019 , the next five years ended December 31, and thereafter, is as follows (in thousands): 2019 Remaining $ 948 2020 3,177 2021 2,862 2022 1,256 2023 962 2024 881 Thereafter 1,620 Total $ 11,706 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Cash surrender value of corporate-owned life insurance policies $ 4,020 $ 3,596 Deferred commissions (1) 17,920 15,530 Restricted cash 658 661 Operating lease assets 10,592 — Prepaid expenses, deposits and other 3,952 3,212 Total other assets $ 37,142 $ 22,999 (1) Represents the incremental costs of obtaining contracts with customers, which consist primarily of sales commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contracts and amortized consistent with the recognition timing of the revenue for the underlying performance obligations. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Accrued salaries, benefits and bonus $ 17,058 $ 19,063 Accrued professional, consulting and lobbying fees 5,002 4,894 Accrued warranty expense 1,071 898 Accrued income and other taxes 5,143 4,167 Other accrued liabilities 7,471 12,070 Accrued liabilities $ 35,745 $ 41,092 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity Compensation Goals | Eight Separate Revenue Goals (1) (in thousands) Eight Separate Adjusted EBITDA (CEO Performance Award) Goals (in thousands) Goal #1, $710,058 Goal #9, $125,000 Goal #2, $860,058 Goal #10, $155,000 Goal #3, $1,010,058 Goal #11, $175,000 Goal #4, $1,210,058 Goal #12, $190,000 Goal #5, $1,410,058 Goal #13, $200,000 Goal #6, $1,610,058 Goal #14, $210,000 Goal #7, $1,810,058 Goal #15, $220,000 Goal #8, $2,010,058 Goal #16, $230,000 (1) In connection with the business acquisition that was completed during the three months ended June 30, 2018, the revenue goals were adjusted for the acquiree's Target Revenue, as defined in the CEO Performance Award agreement. |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity for the nine months ended September 30, 2019 (number of units and aggregate intrinsic value in thousands): Number of Units Weighted Average Grant-Date Fair Value Aggregate Units outstanding, beginning of year 1,655 $ 28.34 Granted 6,476 35.87 Released (450 ) 24.47 Forfeited (410 ) 34.63 Units outstanding, end of period 7,271 34.93 $ 412,866 |
Summary of the Stock Option Activity | The following table summarizes stock option activity for the nine months ended September 30, 2019 (number of units and aggregate intrinsic value in thousands): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Options outstanding, beginning of year 6,458 $ 28.24 Granted — — Exercised (25 ) 4.23 Expired / terminated — — Options outstanding, end of period 6,433 28.33 8.33 $ 183,023 Options exercisable, end of period 67 4.53 1.19 3,506 |
Stock-Based Compensation | The following table summarizes the composition of stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of products sold and services delivered $ 312 $ 93 $ 775 $ 359 Sales, general and administrative expenses 9,508 3,748 19,130 8,783 Research and development expenses 3,843 2,414 10,290 6,160 Total stock-based compensation expense $ 13,663 $ 6,255 $ 30,195 $ 15,302 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Balance Sheet Disclosures | Leases (in thousands) Classification September 30, 2019 Assets Operating lease assets Other assets $ 10,592 Liabilities Current Operating Other current liabilities $ 3,959 Noncurrent Operating Other long-term liabilities 7,687 Total lease liabilities $ 11,646 |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Classification Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease expense (1) Sales, general and administrative expenses (2) $ 1,264 $ 3,418 Sublease income Other income (82 ) (219 ) Net lease expense $ 1,182 $ 3,199 (1) Includes short-term leases, which are immaterial. (2) An immaterial portion of operating lease expense is included within research and development expenses and cost of sales. Other information related to leases was as follows (in thousands, except lease term and discount rate): Nine Months Ended September 30, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,229 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 888 Weighted average remaining lease term: Operating leases 3.3 years Weighted average discount rate: Operating leases 3.4 % |
Schedule of Future Minimum Rental Payments For Operating Leases | Future minimum lease payments under non-cancellable leases as of September 30, 2019 were as follows (in thousands): Operating Sublease income Net 2019 Remaining $ 1,114 $ (82 ) $ 1,032 2020 4,545 (82 ) 4,463 2021 3,639 — 3,639 2022 2,638 — 2,638 2023 1,173 — 1,173 2024 — — — Thereafter — — — Total minimum lease payments 13,109 (164 ) 12,945 Less: Amount representing interest (1,299 ) Present value of lease payments $ 11,646 |
Lessor, Operating Lease, Payments to be Received, Maturity | Future minimum lease payments under non-cancellable leases as of September 30, 2019 were as follows (in thousands): Operating Sublease income Net 2019 Remaining $ 1,114 $ (82 ) $ 1,032 2020 4,545 (82 ) 4,463 2021 3,639 — 3,639 2022 2,638 — 2,638 2023 1,173 — 1,173 2024 — — — Thereafter — — — Total minimum lease payments 13,109 (164 ) 12,945 Less: Amount representing interest (1,299 ) Present value of lease payments $ 11,646 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under non-cancelable leases at December 31, 2018, were as follows (in thousands): Operating Capital 2019 $ 3,670 $ 40 2020 3,572 36 2021 2,961 — 2022 2,001 — 2023 573 — Thereafter — — Total minimum lease payments $ 12,777 76 Less: Amount representing interest (6 ) Capital lease obligation $ 70 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments under non-cancelable leases at December 31, 2018, were as follows (in thousands): Operating Capital 2019 $ 3,670 $ 40 2020 3,572 36 2021 2,961 — 2022 2,001 — 2023 573 — Thereafter — — Total minimum lease payments $ 12,777 76 Less: Amount representing interest (6 ) Capital lease obligation $ 70 |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Operational Information Relative to the Company's Reportable Segments | Information relative to our reportable segments was as follows (in thousands): Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 TASER Software and Sensors 1 Total TASER Software and Sensors Total Net sales from products $ 71,424 $ 25,073 $ 96,497 $ 63,666 $ 17,257 $ 80,923 Net sales from services 319 34,021 34,340 — 23,913 23,913 Net sales 71,743 59,094 130,837 63,666 41,170 104,836 Cost of product sales 26,504 15,941 42,445 19,256 13,697 32,953 Cost of service sales — 8,223 8,223 — 6,250 6,250 Cost of sales 26,504 24,164 50,668 19,256 19,947 39,203 Gross margin $ 45,239 $ 34,930 $ 80,169 $ 44,410 $ 21,223 $ 65,633 Research and development $ 3,485 $ 21,644 $ 25,129 $ 4,837 $ 17,145 $ 21,982 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 TASER Software and Sensors 1 Total TASER Software and Sensors Total Net sales from products $ 197,148 $ 67,829 $ 264,977 $ 187,814 $ 50,804 $ 238,618 Net sales from services 558 93,474 94,032 — 66,659 66,659 Net sales 197,706 161,303 359,009 187,814 117,463 305,277 Cost of product sales 74,044 46,221 120,265 57,480 38,994 96,474 Cost of service sales — 24,098 24,098 — 15,566 15,566 Cost of sales 74,044 70,319 144,363 57,480 54,560 112,040 Gross margin $ 123,662 $ 90,984 $ 214,646 $ 130,334 $ 62,903 $ 193,237 Research and development $ 10,284 $ 61,692 $ 71,976 $ 11,816 $ 43,786 $ 55,602 1 Cost of service sales for the three and nine months ended September 30, 2019 includes approximately $0.7 million and $1.6 million |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Warranty period | 1 year | ||
Corporate owned life insurance policies fair value | $ 4,020 | $ 4,020 | $ 3,596 |
Restricted cash balance | 658 | 658 | 661 |
Prepaid Expenses and Other Current Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted cash balance | 900 | 900 | 900 |
Other Current Assets | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted cash balance | 700 | $ 700 | $ 700 |
Enterprise Resource Planning System | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impairment charges | 1,300 | ||
Design of New Headquarters | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impairment charges | $ 700 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding and Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator for basic and diluted earnings per share: | ||||||||
Net income | $ 6,104 | $ 738 | $ 6,419 | $ 5,711 | $ 8,485 | $ 12,926 | $ 13,261 | $ 27,122 |
Denominator: | ||||||||
Weighted average shares outstanding—basic (in shares) | 59,278 | 58,340 | 59,128 | 55,681 | ||||
Dilutive effect of stock-based awards (in shares) | 781 | 1,465 | 810 | 1,573 | ||||
Diluted weighted average shares outstanding (in shares) | 60,059 | 59,805 | 59,938 | 57,254 | ||||
Anti-dilutive stock-based awards excluded (in shares) | 12,477 | 6,793 | 12,546 | 6,760 | ||||
Net income per common share: | ||||||||
Basic (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.22 | $ 0.49 | ||||
Diluted (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.22 | $ 0.47 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Summary of Changes in Estimated Product Warranty Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance, beginning of period | $ 898 | $ 644 |
Utilization of accrual | (718) | (384) |
Warranty expense | 891 | 699 |
Balance, end of period | $ 1,071 | $ 959 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Adjustments to Opening Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Other assets | $ 37,142 | $ 35,482 | $ 22,999 |
Total assets | 792,304 | 732,023 | 719,540 |
Liabilities and Equity | |||
Accrued liabilities | 35,745 | 39,954 | 41,092 |
Other current liabilities | 3,997 | 3,625 | 37 |
Total current liabilities | 183,834 | 168,461 | 166,011 |
Other long-term liabilities | 11,537 | 15,737 | 5,704 |
Total liabilities | 284,657 | 264,699 | 252,216 |
Total liabilities and stockholders’ equity | $ 792,304 | 732,023 | $ 719,540 |
Accounting Standards Update 2016-02 | |||
Assets | |||
Other assets | 12,483 | ||
Total assets | 12,483 | ||
Liabilities and Equity | |||
Accrued liabilities | (1,138) | ||
Other current liabilities | 3,588 | ||
Total current liabilities | 2,450 | ||
Other long-term liabilities | 10,033 | ||
Total liabilities | 12,483 | ||
Total liabilities and stockholders’ equity | $ 12,483 |
Revenues - Revenues By Products
Revenues - Revenues By Products And Service Offerings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | $ 130,837 | $ 104,836 | $ 359,009 | $ 305,277 |
TASER 7 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 20,214 | 0 | 39,466 | 0 |
TASER X26P | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 11,578 | 17,998 | 37,832 | 52,618 |
TASER X2 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 13,241 | 20,392 | 40,413 | 62,686 |
TASER Pulse and Bolt | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 1,132 | 1,402 | 2,920 | 3,849 |
Single cartridges | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 18,901 | 18,406 | 57,354 | 51,763 |
Axon Body | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 6,763 | 4,744 | 18,820 | 15,082 |
Axon Flex | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 1,670 | 1,325 | 4,517 | 4,529 |
Axon Fleet | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 4,341 | 1,809 | 10,977 | 6,640 |
Axon Dock | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 3,358 | 2,178 | 9,401 | 7,332 |
Axon Evidence and cloud services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 34,240 | 23,915 | 93,824 | 64,513 |
TASER Cam | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 534 | 717 | 2,481 | 2,839 |
Extended warranties | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 9,257 | 7,284 | 27,405 | 20,088 |
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 5,608 | 4,666 | 13,599 | 13,338 |
TASER | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 71,743 | 63,666 | 197,706 | 187,814 |
TASER | TASER 7 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 20,214 | 0 | 39,466 | 0 |
TASER | TASER X26P | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 11,578 | 17,998 | 37,832 | 52,618 |
TASER | TASER X2 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 13,241 | 20,392 | 40,413 | 62,686 |
TASER | TASER Pulse and Bolt | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 1,132 | 1,402 | 2,920 | 3,849 |
TASER | Single cartridges | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 18,901 | 18,406 | 57,354 | 51,763 |
TASER | Axon Body | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
TASER | Axon Flex | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
TASER | Axon Fleet | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
TASER | Axon Dock | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
TASER | Axon Evidence and cloud services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 218 | 0 | 363 | 0 |
TASER | TASER Cam | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
TASER | Extended warranties | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 4,543 | 4,123 | 13,341 | 11,567 |
TASER | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 1,916 | 1,345 | 6,017 | 5,331 |
Software and Sensors | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 59,094 | 41,170 | 161,303 | 117,463 |
Software and Sensors | TASER 7 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
Software and Sensors | TASER X26P | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
Software and Sensors | TASER X2 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
Software and Sensors | TASER Pulse and Bolt | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
Software and Sensors | Single cartridges | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 0 | 0 | 0 | 0 |
Software and Sensors | Axon Body | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 6,763 | 4,744 | 18,820 | 15,082 |
Software and Sensors | Axon Flex | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 1,670 | 1,325 | 4,517 | 4,529 |
Software and Sensors | Axon Fleet | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 4,341 | 1,809 | 10,977 | 6,640 |
Software and Sensors | Axon Dock | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 3,358 | 2,178 | 9,401 | 7,332 |
Software and Sensors | Axon Evidence and cloud services | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 34,022 | 23,915 | 93,461 | 64,513 |
Software and Sensors | TASER Cam | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 534 | 717 | 2,481 | 2,839 |
Software and Sensors | Extended warranties | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | 4,714 | 3,161 | 14,064 | 8,521 |
Software and Sensors | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue from contract with customers | $ 3,692 | $ 3,321 | $ 7,582 | $ 8,007 |
Revenues - Revenues By Geograph
Revenues - Revenues By Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customers | $ 130,837 | $ 104,836 | $ 359,009 | $ 305,277 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customers | 110,809 | 88,125 | 298,736 | 244,806 |
Other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customers | $ 20,028 | $ 16,711 | $ 60,273 | $ 60,471 |
Revenue from Contract with Customer | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue from Contract with Customer | Geographic Concentration Risk | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 85.00% | 84.00% | 83.00% | 80.00% |
Revenue from Contract with Customer | Geographic Concentration Risk | Other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 15.00% | 16.00% | 17.00% | 20.00% |
Revenues - Contract Assets, Con
Revenues - Contract Assets, Contract Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 33,635 | |
Contract liabilities (deferred revenue) | 209,309 | $ 181,433 |
Revenue recognized in the period from: | ||
Amounts included in contract liabilities at the beginning of the period | $ 83,159 |
Revenues - Schedule Of Contract
Revenues - Schedule Of Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Current | $ 127,160 | $ 107,016 |
Long-Term | 82,149 | 74,417 |
Total | 209,309 | 181,433 |
TASER | ||
Disaggregation of Revenue [Line Items] | ||
Current | 16,066 | 22,152 |
Long-Term | 34,630 | 32,445 |
Total | 50,696 | 54,597 |
Software and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Current | 111,094 | 84,864 |
Long-Term | 47,519 | 41,972 |
Total | 158,613 | 126,836 |
Warranty | ||
Disaggregation of Revenue [Line Items] | ||
Current | 21,576 | 21,070 |
Long-Term | 22,083 | 23,363 |
Total | 43,659 | 44,433 |
Warranty | TASER | ||
Disaggregation of Revenue [Line Items] | ||
Current | 11,677 | 12,797 |
Long-Term | 16,633 | 16,847 |
Total | 28,310 | 29,644 |
Warranty | Software and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Current | 9,899 | 8,273 |
Long-Term | 5,450 | 6,516 |
Total | 15,349 | 14,789 |
Hardware | ||
Disaggregation of Revenue [Line Items] | ||
Current | 43,686 | 30,233 |
Long-Term | 44,958 | 40,283 |
Total | 88,644 | 70,516 |
Hardware | TASER | ||
Disaggregation of Revenue [Line Items] | ||
Current | 4,378 | 9,355 |
Long-Term | 17,601 | 15,598 |
Total | 21,979 | 24,953 |
Hardware | Software and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Current | 39,308 | 20,878 |
Long-Term | 27,357 | 24,685 |
Total | 66,665 | 45,563 |
Software and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Current | 61,898 | 55,713 |
Long-Term | 15,108 | 10,771 |
Total | 77,006 | 66,484 |
Software and Sensors | TASER | ||
Disaggregation of Revenue [Line Items] | ||
Current | 11 | 0 |
Long-Term | 396 | 0 |
Total | 407 | 0 |
Software and Sensors | Software and Sensors | ||
Disaggregation of Revenue [Line Items] | ||
Current | 61,887 | 55,713 |
Long-Term | 14,712 | 10,771 |
Total | $ 76,599 | $ 66,484 |
Revenues - Revenue Performance
Revenues - Revenue Performance Obligations (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation to be recognized in the next twelve months, percent | 15.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation to be recognized in the next twelve months, percent | 20.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 1,130 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 7 years |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments - Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | $ 352,855 | $ 349,462 | |
Gross Unrealized Gains | 56 | 0 | |
Gross Unrealized Losses | (38) | 0 | |
Fair Value | 352,873 | 349,462 | |
Cash and Cash Equivalents | 202,551 | 349,462 | |
Short-term investments | 108,913 | 0 | |
Long-term Investments | 41,391 | 0 | $ 41,391 |
Fair Value, Inputs, Level 1 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 70,145 | ||
Gross Unrealized Gains | 4 | ||
Gross Unrealized Losses | (6) | ||
Fair Value | 70,143 | ||
Cash and Cash Equivalents | 49,379 | ||
Short-term investments | 2,000 | ||
Long-term Investments | 18,766 | ||
Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 202,441 | ||
Gross Unrealized Gains | 52 | ||
Gross Unrealized Losses | (32) | ||
Fair Value | 202,461 | ||
Cash and Cash Equivalents | 72,903 | ||
Short-term investments | 106,913 | ||
Long-term Investments | 22,625 | ||
Cash | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 80,269 | 144,095 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 80,269 | 144,095 | |
Cash and Cash Equivalents | 80,269 | 144,095 | |
Short-term investments | 0 | 0 | |
Long-term Investments | 0 | 0 | |
Money market funds | Fair Value, Inputs, Level 1 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 37,311 | 205,367 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 37,311 | 205,367 | |
Cash and Cash Equivalents | 37,311 | 205,367 | |
Short-term investments | 0 | 0 | |
Long-term Investments | $ 0 | 0 | |
Agency bonds | Fair Value, Inputs, Level 1 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 32,834 | ||
Gross Unrealized Gains | 4 | ||
Gross Unrealized Losses | (6) | ||
Fair Value | 32,832 | ||
Cash and Cash Equivalents | 12,068 | ||
Short-term investments | 2,000 | ||
Long-term Investments | 18,766 | ||
State and municipal obligations | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 4,454 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (1) | ||
Fair Value | 4,454 | ||
Cash and Cash Equivalents | 0 | ||
Short-term investments | 4,454 | ||
Long-term Investments | 0 | ||
Corporate bonds | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 127,987 | ||
Gross Unrealized Gains | 51 | ||
Gross Unrealized Losses | (31) | ||
Fair Value | 128,007 | ||
Cash and Cash Equivalents | 2,903 | ||
Short-term investments | 102,459 | ||
Long-term Investments | 22,625 | ||
U.S. Treasury repurchase agreements | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 70,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 70,000 | ||
Cash and Cash Equivalents | 70,000 | ||
Short-term investments | $ 0 | ||
Long-term Investments | $ 0 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Inventory, finished goods, trial and evaluation, gross | $ 1,400 | $ 1,400 |
Raw materials | 21,096 | 19,670 |
Finished goods | 19,570 | 14,093 |
Total inventory | $ 40,666 | $ 33,763 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning of period | $ 24,981 |
Foreign currency translation adjustment | (105) |
Balance, end of period | 24,876 |
TASER Weapons | |
Goodwill [Roll Forward] | |
Balance, beginning of period | 1,338 |
Foreign currency translation adjustment | (52) |
Balance, end of period | 1,286 |
Software and Sensors | |
Goodwill [Roll Forward] | |
Balance, beginning of period | 23,643 |
Foreign currency translation adjustment | (53) |
Balance, end of period | $ 23,590 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets Other than Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Not amortized intangible assets, Carrying Amount | $ 1,822 | $ 1,858 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 24,039 | 26,727 |
Accumulated Amortization | (12,333) | (12,650) |
Total | 11,706 | 14,077 |
Intangible assets, Gross Carrying Amount | 25,861 | 28,585 |
Intangible assets, Net Carrying Amount | 13,528 | 15,935 |
TASER trademark | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Not amortized intangible assets, Carrying Amount | 900 | 900 |
Patents and trademarks pending | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Not amortized intangible assets, Carrying Amount | 922 | 958 |
Domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,161 | 3,161 |
Accumulated Amortization | (959) | (732) |
Total | $ 2,202 | 2,429 |
Domain names | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 5 years | |
Domain names | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 10 years | |
Issued patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,170 | 2,940 |
Accumulated Amortization | (1,268) | (1,106) |
Total | $ 1,902 | 1,834 |
Issued patents | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 4 years | |
Issued patents | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 15 years | |
Issued trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,006 | 1,053 |
Accumulated Amortization | (532) | (599) |
Total | $ 474 | 454 |
Issued trademarks | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 3 years | |
Issued trademarks | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 11 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,664 | 3,701 |
Accumulated Amortization | (1,263) | (880) |
Total | $ 2,401 | 2,821 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 4 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 8 years | |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 446 | 540 |
Accumulated Amortization | (397) | (439) |
Total | $ 49 | 101 |
Non-compete agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 3 years | |
Non-compete agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 4 years | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,660 | 13,404 |
Accumulated Amortization | (5,982) | (7,081) |
Total | $ 4,678 | 6,323 |
Developed technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 3 years | |
Developed technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 7 years | |
Re-acquired distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 2 years | |
Gross Carrying Amount | $ 1,932 | 1,928 |
Accumulated Amortization | (1,932) | (1,813) |
Total | $ 0 | $ 115 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 0.8 | $ 1.6 | $ 2.7 | $ 4.6 |
Goodwill and Intangible asset_5
Goodwill and Intangible assets - Estimated Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 Remaining | $ 948 | |
2020 | 3,177 | |
2021 | 2,862 | |
2022 | 1,256 | |
2023 | 962 | |
2024 | 881 | |
Thereafter | 1,620 | |
Total | $ 11,706 | $ 14,077 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Cash surrender value of corporate-owned life insurance policies | $ 4,020 | $ 3,596 | |
Deferred commissions | 17,920 | 15,530 | |
Restricted cash | 658 | 661 | |
Operating lease assets | 10,592 | ||
Prepaid expenses, deposits and other | 3,952 | 3,212 | |
Total other assets | $ 37,142 | $ 35,482 | $ 22,999 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | |||||
Accrued salaries, benefits and bonus | $ 17,058 | $ 19,063 | |||
Accrued professional, consulting and lobbying fees | 5,002 | 4,894 | |||
Accrued warranty expense | 1,071 | 898 | $ 959 | $ 644 | |
Accrued income and other taxes | 5,143 | 4,167 | |||
Other accrued liabilities | 7,471 | 12,070 | |||
Accrued liabilities | $ 35,745 | $ 39,954 | $ 41,092 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Tax Credit Carryforward [Line Items] | |
Deferred tax assets, net | $ 23.3 |
Unrecognized tax benefits | 6.2 |
Research and development tax credit studies | $ 2.9 |
Overall effective tax rate, after discrete period adjustments (as a percentage) | 5.10% |
Effective tax rate, before discrete period adjustment (as a percentage) | 19.60% |
Write off of certain deferred tax assets | $ 1.7 |
Restricted Stock Units (RSUs) | |
Tax Credit Carryforward [Line Items] | |
Discrete tax benefit, stock-based compensation | 3.9 |
State Tax | |
Tax Credit Carryforward [Line Items] | |
Unrecognized tax benefits recognized during period | 6.1 |
Federal Income Tax | |
Tax Credit Carryforward [Line Items] | |
Unrecognized tax benefits recognized during period | $ 0.1 |
Shareholders' Equity - CEO Perf
Shareholders' Equity - CEO Performance Award - Additional Information (Details) $ in Thousands | May 24, 2018USD ($)trancheshares | Sep. 30, 2019USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
First tranche | $ 2,500,000 | |
Tranche incremental increase | $ 1,000,000 | |
Revenue goal number 1 | $ 710,058 | |
Revenue goal number 2 | 860,058 | |
Revenue goal number 3 | 1,010,058 | |
Revenue goal number 4 | 1,210,058 | |
Revenue goal number 5 | 1,410,058 | |
Revenue goal number 6 | 1,610,058 | |
Revenue goal number 7 | 1,810,058 | |
Revenue goal number 8 | 2,010,058 | |
Adjusted EBITDA goal number 9 | 125,000 | |
Adjusted EBITDA goal number 10 | 155,000 | |
Adjusted EBITDA goal number 11 | 175,000 | |
Adjusted EBITDA goal number 12 | 190,000 | |
Adjusted EBITDA goal number 13 | 200,000 | |
Adjusted EBITDA goal number 14 | 210,000 | |
Adjusted EBITDA goal number 15 | 220,000 | |
Adjusted EBITDA goal number 16 | 230,000 | |
Recorded share-based compensation expense | $ 10,700 | |
Number of options expected to vest | shares | 1,600,000 | |
Weighted average period over which costs are recognized | 7 years 3 months 18 days | |
Chief Executive Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of vesting tranches | tranche | 12 | |
Adjusted EBITDA | $ 125,000 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance shares authorized (in shares) | shares | 6,365,856 | |
Unrecognized share-based compensation cost related to unvested stock option awards, probable of achievement | 56,900 | |
Unrecognized share-based compensation cost related to unvested stock option awards, not probable of achievement | 178,300 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total revenue | 710,100 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total revenue | $ 860,100 |
Stockholders' Equity - eXponent
Stockholders' Equity - eXponential Stock Performance Plan (Details) $ in Millions | Feb. 12, 2019 | May 24, 2018USD ($)shares | Jan. 31, 2019shares | Sep. 30, 2019USD ($)trancheshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
First tranche | $ 2,500 | |||
Tranche incremental increase | $ 1,000 | |||
Recorded share-based compensation expense | $ 10.7 | |||
Number of options expected to vest | shares | 1,600,000 | |||
Weighted average period over which costs are recognized | 7 years 3 months 18 days | |||
eXponential Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units, granted (in shares) | shares | 60 | 5,900,000 | ||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance shares authorized (in shares) | shares | 6,365,856 | |||
Unrecognized share-based compensation cost related to unvested stock option awards, probable of achievement | $ 56.9 | |||
Unrecognized share-based compensation cost related to unvested stock option awards, not probable of achievement | $ 178.3 | |||
2019 eXponential Stock Performance Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period over which costs are recognized | 7 years 3 months 18 days | |||
2019 eXponential Stock Performance Plan | eXponential Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock, expiration period | 9 years | |||
Performance shares authorized (in shares) | shares | 5,900,000 | |||
Number of vesting tranches | tranche | 12 | |||
First tranche | $ 2,500 | |||
Tranche incremental increase | 1,000 | |||
Recorded share-based compensation expense | $ 4.3 | |||
Number of options expected to vest | shares | 1,400,000 | |||
Post-vest holding period | 2 years 6 months | |||
Dividend yield (as a percentage) | 0.00% | |||
2019 eXponential Stock Performance Plan | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized share-based compensation cost related to unvested stock option awards, probable of achievement | $ 57.4 | |||
Unrecognized share-based compensation cost related to unvested stock option awards, not probable of achievement | $ 131.6 | |||
2019 eXponential Stock Performance Plan | Minimum | eXponential Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Liquidity discount (as a percentage) | 9.80% | |||
Risk-free interest rate (as a percentage) | 1.64% | |||
Expected term | 8 years 4 months 24 days | |||
Expected volatility (as a percentage) | 44.12% | |||
2019 eXponential Stock Performance Plan | Maximum | eXponential Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Liquidity discount (as a percentage) | 16.80% | |||
Risk-free interest rate (as a percentage) | 2.62% | |||
Expected term | 9 years | |||
Expected volatility (as a percentage) | 45.47% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number of Units outstanding, beginning of year (in shares) | shares | 1,655 |
Number of Units, Released (in shares) | shares | (450) |
Number of Units, Forfeited (in shares) | shares | (410) |
Number of Units outstanding, end of period (in shares) | shares | 7,271 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date Fair Value, Units outstanding, beginning of year (in dollars per share) | $ 28.34 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 35.87 |
Weighted Average Grant Date Fair Value, Released (in dollars per share) | 24.47 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 34.63 |
Weighted Average Grant Date Fair Value, Units outstanding, end of period (in dollars per share) | $ 34.93 |
Aggregate intrinsic value at end of period | $ | $ 412,866 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period over which costs are recognized | 7 years 3 months 18 days | |||
Tax payments, for net share settlement of share based award | $ 3,268 | $ 11,973 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value price per share (in dollars per share) | $ 56.78 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense related to non-vested stock options | $ 99,200 | |||
Weighted average period over which costs are recognized | 5 years 1 month 28 days | |||
Units released due to performance criteria threshold (in shares) | 450,000 | |||
Number of units outstanding (as a percentage) | 7,271,000 | 1,655,000 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units, granted (in shares) | 6,476,000 | |||
Shares withheld, for net share settlement of share based award (in shares) | 47,000 | |||
Tax payments, for net share settlement of share based award | $ 3,300 | |||
Service Based Restricted Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units, granted (in shares) | 500,000 | |||
Performance Based Restricted Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units, granted (in shares) | 6,000,000 | |||
Units released due to performance criteria threshold (in shares) | 5,000,000 | |||
Number of units outstanding (as a percentage) | 6,000,000 | |||
Maximum additional shares to be issued (in shares) | 300,000 | |||
eXponential Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units, granted (in shares) | 60 | 5,900,000 | ||
Minimum | Performance Based Restricted Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of targeted shares vested | 0.00% | |||
Maximum | Performance Based Restricted Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of targeted shares vested | 200.00% |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of the Company's Stock Options Activity (Detail) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of options, Options outstanding, beginning of year (in shares) | shares | 6,458 |
Number of options, Granted (in shares) | shares | 0 |
Number of options, Exercised (in shares) | shares | (25) |
Number of options, Expired / terminated (in shares) | shares | 0 |
Number of options, Options outstanding, end of year (in shares) | shares | 6,433 |
Number of options, Options exercisable, end of period (in shares) | shares | 67 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price, Options outstanding, beginning of year (in dollars per share) | $ / shares | $ 28.24 |
Weighted average exercise price, Granted (in dollars per share) | $ / shares | 0 |
Weighted average exercise price, Exercised (in dollars per share) | $ / shares | 4.23 |
Weighted average exercise price, Expired / terminated (in dollars per share) | $ / shares | 0 |
Weighted average exercise price, Options outstanding, end of period (in dollars per share) | $ / shares | 28.33 |
Weighted average exercise price, Options exercisable, end of period (in dollars per share) | $ / shares | $ 4.53 |
Weighted average remaining contractual life, Options outstanding, end of period | 8 years 3 months 29 days |
Weighted average remaining contractual life, Options exercisable, end of period | 1 year 2 months 8 days |
Aggregate intrinsic value, Options outstanding, end of period | $ | $ 183,023 |
Aggregate intrinsic value, Options exercisable, end of period | $ | $ 3,506 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value price per share (in dollars per share) | $ 56.78 | ||
Total intrinsic value of options exercised | $ 1.1 | $ 20.5 | |
Number of options outstanding (in shares) | 6,433 | 6,458 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options outstanding (in shares) | 6,400 | ||
Options related to tranches considered probable of achievement | 1,600 |
Stockholders' Equity - Reported
Stockholders' Equity - Reported Share-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 13,663 | $ 6,255 | $ 30,195 | $ 15,302 |
Cost of products sold and services delivered | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 312 | 93 | 775 | 359 |
Sales, general and administrative expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 9,508 | 3,748 | 19,130 | 8,783 |
Research and development expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 3,843 | $ 2,414 | $ 10,290 | $ 6,160 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Plan - Additional Information (Detail) - USD ($) | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Feb. 28, 2019 | Feb. 29, 2016 | |
2019 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance (in shares) | 6,000,000 | |||
Shares available for grant under the plan (in shares) | 2,200,000 | |||
2016 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding common stock repurchase program authorized amount (up to) | $ 50,000,000 | |||
Shares repurchased during period (in shares) | 0 | 0 | ||
Remaining authorized repurchase amount | $ 16,300,000 | |||
2019 Inducement Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance (in shares) | 500,000 | |||
Shares available for grant under the plan (in shares) | 30,000 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Maximum ratio of total liabilities to tangible net worth | 2.50 | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Available borrowing under letter of credit | $ 46,400,000 | |
Line of credit facility, increase (decrease), net | 100,000,000 | |
Line of credit borrowings | 0 | $ 0 |
Letters of credit outstanding amount | $ 3,600,000 | |
Company's leverage ratio | 0.001 | |
Unsecured Revolving Line of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total availability under line of credit agreement | $ 50,000,000 | |
Letter of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Available borrowing under letter of credit | $ 10,000,000 | |
Minimum | London Interbank Offered Rate (LIBOR) | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt instrument basis spread on variable rate | 1.00% | |
Maximum | London Interbank Offered Rate (LIBOR) | Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt instrument basis spread on variable rate | 1.50% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Renewal term | 2 years | ||
Termination period | 1 year | ||
Rent expense | $ 4.2 | $ 2.9 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining terms | 4 years |
Leases - Balance Sheet (Details
Leases - Balance Sheet (Details) $ in Thousands | Sep. 30, 2019USD ($) |
ASSETS | |
Operating lease assets, other assets | $ 10,592 |
Current | |
Operating lease, current liabilities | 3,959 |
Noncurrent | |
Operating lease, noncurrent liabilites | 7,687 |
Total lease liabilities | $ 11,646 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,264 | $ 3,418 |
Sublease income | (82) | (219) |
Net lease expense | $ 1,182 | $ 3,199 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Balance Sheet Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash Flow, Lessee [Abstract] | |
Operating cash flows from operating leases | $ 3,229 |
Right-Of-Use Asset Obtained In Exchange For Lease Liability [Abstract] | |
Operating leases | $ 888 |
Weighted Average Remaining Lease Term [Abstract] | |
Operating leases (in years) | 3 years 3 months 18 days |
Leases, Weighted Average Discount Rate [Abstract] | |
Operating leases (as a percentage) | 3.40% |
Leases - Minimum Lease Payments
Leases - Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Operating Leases, After Adoption of 842 | ||
2019 Remaining | $ 1,114 | |
2020 | 4,545 | |
2021 | 3,639 | |
2022 | 2,638 | |
2023 | 1,173 | |
2024 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 13,109 | |
Sublease income, After Adoption of 842 | ||
2019 Remaining | (82) | |
2020 | (82) | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | (164) | |
Net, After Adoption of 842 | ||
2019 Remaining | 1,032 | |
2020 | 4,463 | |
2021 | 3,639 | |
2022 | 2,638 | |
2023 | 1,173 | |
2024 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 12,945 | |
Less: Amount representing interest | (1,299) | |
Present value of lease payments | $ 11,646 | |
Operating Leases, Before Adoption of 842 | ||
2019 | $ 3,670 | |
2020 | 3,572 | |
2021 | 2,961 | |
2022 | 2,001 | |
2023 | 573 | |
Thereafter | 0 | |
Total minimum lease payments | 12,777 | |
Capital Leases, Before Adoption of 842 | ||
2019 | 40 | |
2020 | 36 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 76 | |
Less: Amount representing interest | (6) | |
Capital lease obligation | $ 70 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Dec. 13, 2018USD ($) | Jul. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($)lawsuit | Sep. 30, 2019USD ($)lawsuit |
Loss Contingencies [Line Items] | |||||
Remaining purchase commitment | $ 46.3 | $ 46.3 | |||
Number of lawsuits against Company | lawsuit | 8 | 8 | |||
Self insurance on product claim | $ 5 | $ 5 | |||
Surety Bond | |||||
Loss Contingencies [Line Items] | |||||
Bonds outstanding | 24.6 | 24.6 | |||
Expiring in 2020 | Surety Bond | |||||
Loss Contingencies [Line Items] | |||||
Bonds outstanding | 1.1 | 1.1 | |||
Expiring in 2021 | Surety Bond | |||||
Loss Contingencies [Line Items] | |||||
Bonds outstanding | 2.3 | 2.3 | |||
Expiring in 2022 | Surety Bond | |||||
Loss Contingencies [Line Items] | |||||
Bonds outstanding | 3.2 | 3.2 | |||
Expiring in 2023 | Surety Bond | |||||
Loss Contingencies [Line Items] | |||||
Bonds outstanding | 7.5 | 7.5 | |||
Expiring in 2024 | Surety Bond | |||||
Loss Contingencies [Line Items] | |||||
Bonds outstanding | 10.5 | 10.5 | |||
Line of Credit | |||||
Loss Contingencies [Line Items] | |||||
Letters of credit outstanding amount | 3.6 | 3.6 | |||
Data Storage | |||||
Loss Contingencies [Line Items] | |||||
Purchase commitment period | 3 years | ||||
Purchase obligation | $ 50 | ||||
Up-front prepayment | $ 15 | ||||
Storage fees | 3.7 | $ 3.7 | |||
Lease Agreements | |||||
Loss Contingencies [Line Items] | |||||
Finite-lived intangible asset, useful life | 84 years | ||||
Initial deposit | $ 0.2 | ||||
Design of New Headquarters | |||||
Loss Contingencies [Line Items] | |||||
Impairment charges | $ 0.7 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Outstanding amount due to related parties | $ 0 | $ 0 | ||
Software Licensing and Subscription | Officer | ||||
Related Party Transaction [Line Items] | ||||
Quarterly payments | $ 500,000 | $ 400,000 | $ 1,400,000 | $ 1,300,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee deferrals deemed vested percentage upon contribution | 100.00% | |||
Defined contribution plan, cost | $ 0.9 | $ 0.9 | $ 3.5 | $ 2.4 |
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferral percentage of base salary (up to) | 80.00% | |||
Deferral percentage of other compensation (up to) | 100.00% |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments of company | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 130,837 | $ 104,836 | $ 359,009 | $ 305,277 |
Cost of sales | 50,668 | 39,203 | 144,363 | 112,040 |
Gross margin | 80,169 | 65,633 | 214,646 | 193,237 |
Research and development | 25,129 | 21,982 | 71,976 | 55,602 |
TASER | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 71,743 | 63,666 | 197,706 | 187,814 |
Cost of sales | 26,504 | 19,256 | 74,044 | 57,480 |
Gross margin | 45,239 | 44,410 | 123,662 | 130,334 |
Research and development | 3,485 | 4,837 | 10,284 | 11,816 |
Software and Sensors | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 59,094 | 41,170 | 161,303 | 117,463 |
Cost of sales | 24,164 | 19,947 | 70,319 | 54,560 |
Gross margin | 34,930 | 21,223 | 90,984 | 62,903 |
Research and development | 21,644 | 17,145 | 61,692 | 43,786 |
Product | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 96,497 | 80,923 | 264,977 | 238,618 |
Cost of sales | 42,445 | 32,953 | 120,265 | 96,474 |
Product | TASER | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 71,424 | 63,666 | 197,148 | 187,814 |
Cost of sales | 26,504 | 19,256 | 74,044 | 57,480 |
Product | Software and Sensors | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 25,073 | 17,257 | 67,829 | 50,804 |
Cost of sales | 15,941 | 13,697 | 46,221 | 38,994 |
Service | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 34,340 | 23,913 | 94,032 | 66,659 |
Cost of sales | 8,223 | 6,250 | 24,098 | 15,566 |
Service | TASER | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 319 | 0 | 558 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Service | Software and Sensors | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 34,021 | 23,913 | 93,474 | 66,659 |
Cost of sales | 8,223 | $ 6,250 | 24,098 | $ 15,566 |
Service, Installation Costs | Software and Sensors | ||||
Segment Reporting Information [Line Items] | ||||
Cost of sales | $ 700 | $ 1,600 |
Uncategorized Items - aaxnq3201
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 2,477,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 1,575,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 18,994,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 18,994,000 |