Axon Enterprise (AXON) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	AXON ENTERPRISE, INC.
Entity Central Index Key	1,069,183
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		52,725,058

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 41,974	$ 40,651
Short-term investments	29,630	48,415
Accounts and notes receivable, net of allowance of $765 and $443 as of March 31, 2017 and December 31, 2016, respectively	44,328	39,466
Inventory	48,699	34,841
Prepaid expenses and other current assets	15,707	13,858
Total current assets	180,338	177,231
Property and equipment, net of accumulated depreciation of $33,794 and $37,799 as of March 31, 2017 and December 31, 2016, respectively	26,399	24,004
Deferred income tax assets, net	20,055	19,515
Intangible assets, net	20,256	15,218
Goodwill	13,001	10,442
Long-term investments	0	234
Long-term accounts and notes receivable, net of current portion	24,688	17,602
Other assets	14,781	13,917
Total assets	299,518	278,163
Current liabilities:
Accounts payable	15,632	10,736
Accrued liabilities	20,330	18,248
Current portion of deferred revenue	49,909	45,137
Customer deposits	2,445	2,148
Current portion of business acquisition contingent consideration	1,705	1,690
Other current liabilities	467	80
Total current liabilities	90,488	78,039
Deferred revenue, net of current portion	41,644	40,054
Liability for unrecognized tax benefits	2,030	1,896
Long-term deferred compensation	3,407	3,362
Business acquisition contingent consideration, net of current portion	2,664	1,635
Other long-term liabilities	1,895	2,289
Total liabilities	142,128	127,275
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of March 31, 2017 and December 31, 2016	0	0
Common stock, $0.00001 par value; 200,000,000 shares authorized; 52,593,417 and 52,325,251 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	1	1
Additional paid-in capital	189,710	187,656
Treasury stock at cost, 20,220,227 shares as of March 31, 2017 and December 31, 2016	(155,947)	(155,947)
Retained earnings	122,558	118,275
Accumulated other comprehensive income	1,068	903
Total stockholders’ equity	157,390	150,888
Total liabilities and stockholders’ equity	$ 299,518	$ 278,163

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance on accounts receivable	$ 765	$ 443
Accumulated depreciation	$ 33,794	$ 37,799
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	52,593,417	52,325,251
Common stock, shares outstanding	52,593,417	52,325,251
Treasury stock, 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
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net sales	$ 79,242	$ 55,530
Cost of products sold and services delivered	30,572	18,628
Gross margin	48,670	36,902
Operating expenses:
Sales, general and administrative	30,857	24,833
Research and development	12,463	6,927
Total operating expenses	43,320	31,760
Income from operations	5,350	5,142
Interest and other income, net	206	118
Income before provision for income taxes	5,556	5,260
Provision for income taxes	976	1,797
Net income	$ 4,580	$ 3,463
Net income per common and common equivalent shares:
Basic (in dollars per share)	$ 0.09	$ 0.06
Diluted (in dollars per share)	$ 0.09	$ 0.06
Weighted average number of common and common equivalent shares outstanding:
Basic (in shares)	52,418	53,693
Diluted (in shares)	53,677	54,789
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 4,580	$ 3,463
Foreign currency translation adjustments	165	234
Comprehensive income	$ 4,745	$ 3,697

Unaudited Condensed Consolidat5

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 4,580	$ 3,463
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,604	901
Purchase accounting adjustments to goodwill	0	372
Gain on disposal of property and equipment, net	0	(23)
Bond premium amortization	218	375
Stock-based compensation	3,447	2,220
Deferred income taxes	(1,216)	(721)
Unrecognized tax benefits	134	96
Tax shortfall from stock-based compensation	0	21
Change in assets and liabilities:
Accounts and notes receivable	(3,538)	(2,195)
Inventory	(13,686)	(4,327)
Prepaid expenses and other assets	(11,027)	(4,070)
Accounts payable, accrued and other liabilities	6,264	5,560
Deferred revenue	6,313	4,380
Customer deposits	298	1,041
Net cash provided by (used in) operating activities	(6,609)	7,093
Cash flows from investing activities:
Purchases of investments	0	(20,328)
Proceeds from call / maturity of investments	18,801	18,033
Purchases of property and equipment	(2,343)	(1,280)
Proceeds from disposal of property and equipment	0	36
Purchases of intangible assets	(95)	(98)
Business acquisitions, net of cash acquired	(6,479)
Net cash provided by (used in) investing activities	9,884	(3,637)
Cash flows from financing activities:
Repurchase of common stock	0	(8,962)
Proceeds from options exercised	296	30
Payroll tax payments for net-settled stock awards	(2,165)	(744)
Payments on capital lease obligation	(8)	(10)
Payments on notes payable	0	(15)
Tax shortfall from stock-based compensation	0	(21)
Net cash used in financing activities	(1,877)	(9,722)
Effect of exchange rate changes on cash and cash equivalents	(75)	105
Net decrease in cash and cash equivalents	1,323	(6,161)
Cash and cash equivalents, beginning of period	40,651	59,526
Cash and cash equivalents, end of period	41,974	53,365
Supplemental disclosure:
Cash paid for income taxes, net of refunds	145	3,533
Non-cash transactions
Property and equipment purchases in accounts payable and accrued liabilities	794	54
Contingent consideration related to business combinations	$ 1,007	$ 0

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
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” or the “Company”), formerly known as TASER International, Inc., is a developer and manufacturer of advanced conducted electrical weapons (“CEWs”) designed for use by law enforcement, military, corrections, and private security personnel, and by private individuals for personal defense. In addition, the Company has developed full technology solutions for the capture, storage and management of video/audio evidence as well as other tactical capabilities for use in law enforcement. The Company sells its products worldwide through its direct sales force, distribution partners, online store and third-party resellers. The Company was incorporated in Arizona in September 1993, and reincorporated in Delaware in January 2001. The Company’s corporate headquarters and manufacturing facilities are located in Scottsdale, Arizona. The Company’s software development unit facility is located in Seattle, Washington. Axon Public Safety BV, formerly known as TASER International BV, a wholly owned subsidiary of the Company, serves as the Company's international headquarters, and is located in Amsterdam, Netherlands. Axon Public Safety BV wholly owns two subsidiaries, Axon Public Safety U.K. LTD and Axon Public Safety AU, that serve as direct sales operations in the United Kingdom and Australia, respectively. The Company also sells to certain international markets through a wholly owned subsidiary, Axon Public Safety Germany SE, formerly known as TASER International SE. In 2015, the Company formed Axon Public Safety Canada, Inc., a wholly owned subsidiary, to facilitate transactions for its products and services with new and existing customers located in Canada. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts, transactions, and profits have been eliminated. a. Basis of Presentation and Use of Estimates These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“US 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 the Company’s annual consolidated financial statements for the year ended December 31, 2016 , as filed on Form 10-K. 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 the Company’s 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 the Company’s Form 10-K for the year ended December 31, 2016 . The results of operations for the three months ended March 31, 2017 and 2016 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 allocated in multiple-deliverable contracts or arrangements, • valuation of goodwill, intangibles and long-lived assets, • recognition, measurement and valuation of current and deferred income taxes, • fair value of stock awards issued and the estimated vesting period for performance-based stock awards, and • recognition and measurement of contingencies and accrued litigation expense. Actual results could differ materially from those estimates. b. Segment Information The Company is comprised of two reportable segments: the manufacture and sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the software and sensors business, which includes the TASER Cam, Axon cameras and related accessories, Evidence.com, and the Axon Artificial Intelligence team ("Axon AI") (collectively the “Software and Sensors” segment), formerly known as the Axon segment. The composition of the Software and Sensors segment remained unchanged, and represents only a change in name. Reportable segments are determined based on discrete financial information reviewed by the Company’s Chief Executive Officer who is the Chief Operating Decision Maker (the “CODM”) for the Company. The Company organizes and reviews operations based on products and services, and currently there are no operating segments that are aggregated. The Company performs an annual analysis of its reportable segments. Additional information related to the Company’s business segments is summarized in Note 14. c. Geographic Information and Major Customers For the three months ended March 31, 2017 and 2016 , net sales by geographic area were as follows (in thousands): Three Months Ended March 31, 2017 2016 United States $ 64,752 81.7 % $ 42,468 76.5 % Other Countries 14,490 18.3 13,062 23.5 Total $ 79,242 100.0 % $ 55,530 100.0 % Sales to customers outside of the U.S. are typically denominated in U.S. dollars, and are attributed to each country based on the shipping address of the distributor or customer. For the three months ended March 31, 2017 no individual country outside the U.S. represented more than 10% of net sales. For the three months ended March 31, 2016, one individual country outside the U.S. represented 10.9% of 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 the Company's customers. For the three months ended March 31, 2017 , no customer represented more than 10% of total net sales. For the three months ended March 31, 2016 one customer represented 10.9% of total net sales. At March 31, 2017 , there were no outstanding customer balances from unaffiliated customers that comprised over 10% of the aggregate accounts receivable balance. At December 31, 2016 , the Company had a trade receivable from one unaffiliated customer comprising 14.5% of the aggregate accounts receivable balance. d. 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. 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 the Company’s 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 March 31, 2017 2016 Numerator for basic and diluted earnings per share: Net income $ 4,580 $ 3,463 Denominator: Weighted average shares outstanding - basic 52,418 53,693 Dilutive effect of stock-based awards (a) 1,259 1,096 Diluted weighted average shares outstanding 53,677 54,789 Anti-dilutive stock-based awards excluded 676 525 Net income per common share: Basic $ 0.09 $ 0.06 Diluted $ 0.09 $ 0.06 (a) Prior-period information has been restated for the adoption of ASU 2016-09, which the Company adopted on January 1, 2017, resulting in an increased dilutive effect of restricted stock units. e. Revenue Recognition, Deferred Revenue and Accounts and Notes Receivable The Company derives revenue from two primary sources: (1) the sale of physical products, including CEWs, Axon cameras, corresponding hardware extended warranties, and related accessories such as Axon docks, cartridges and batteries, among others, and (2) subscription to the Company's Evidence.com digital evidence management software as a service ("SaaS") (including data storage fees and other ancillary services), which includes varying levels of support. To a lesser extent, the Company also recognizes training and other professional services revenue. Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, title has transferred, the price is fixed and collectability is reasonably assured. Contractual arrangements may contain explicit customer acceptance provisions, and under such arrangements, the Company defers recognition of revenue until formal customer acceptance is received. Extended warranty revenue, SaaS revenue and related data storage revenue are recognized ratably over the term of the contract beginning on the commencement date of each contract. Revenue arrangements with multiple deliverables are divided into separate units and revenue is allocated using the relative selling price method based upon vendor-specific objective evidence of selling price or third-party evidence of the selling prices if vendor-specific objective evidence of selling prices does not exist. If neither vendor-specific objective evidence nor third-party evidence exists, management uses its best estimate of selling price. The majority of the Company’s allocations of arrangement consideration under multiple element arrangements are performed utilizing prices charged to customers for deliverables when sold separately. The Company’s multiple element arrangements may include future CEWs and/or Axon devices to be delivered at defined points within a multi-year contract, and in those arrangements, the Company allocates total arrangement consideration over the life of the multi-year contract to future deliverables using management’s best estimate of selling price. The Company has not utilized third party evidence of selling price. The Company offers the right to purchase extended warranties that include additional services and coverage beyond the standard limited warranty for certain products. Revenue for extended warranty purchases is deferred at the time of sale and recognized over the warranty period commencing on the date of sale. Extended warranties range from one to five years. Evidence.com and Axon cameras and related accessories have stand-alone value to the customer and are sometimes sold separately, but in most instances are sold together. In these instances, customers typically purchase and pay for the equipment and one year of Evidence.com in advance. Additional years of service are generally billed annually over a specified service term, which has typically ranged from one to five years. Generally, the Company recognizes revenue for the Axon equipment at the time of the sale consistent with the discussion of multiple deliverable arrangements above. Revenue for Evidence.com is deferred at the time of the sale and recognized over the service period. At times the Company subsidizes the cost of Axon devices provided to customers to secure long-term Evidence.com service contracts. In such circumstances, revenue related to the Axon devices recognized at the time of delivery is limited to the amount collected from the customer that is not contingent upon the delivery of future Evidence.com services. The Company recognizes the remaining allocated revenue related to subsidized Axon devices over the remaining period it provides the contracted Evidence.com services. In 2012, the Company introduced a program, the TASER Assurance Program (“TAP”) whereby a customer purchasing a product and joining the program will have the right to trade-in the original product for a new product of the same or like model in the future. Upon joining TAP, customers also receive an extended warranty for the initial products purchased and spare inventory. Under this program the customer generally pays additional annual installments over the contract period, generally three to five years. The Company records consideration received related to the future product purchase as deferred revenue until all revenue recognition criteria are met, which is generally when the new product is delivered. Consideration related to future product purchases is determined at the inception of the arrangement using management’s best estimate of selling price. Management’s estimate is principally based on the current selling price for such products, with due evaluation of the impact of any expected product and pricing changes, which have historically had an immaterial influence on management’s best estimate of selling price. In 2015, The Company introduced the Officer Safety Plan (“OSP”) whereby a customer enters into a five -year Evidence.com subscription that includes all of its standard advanced features along with unlimited storage. The OSP also includes a service plan that includes upgrades of (i) the Axon devices every 2.5 years and (ii) a TASER CEW at any point within the contract period. Upon entering into the OSP, customers also receive extended warranties on the Axon and CEW devices upon delivery to cover the contract periods as well as spare inventory units. Under this program the customer generally makes an initial purchase of Axon cameras and related accessories, and CEWs at inception along with annual installments for services and future hardware deliverables over the contract period. The Company records consideration received related to the future purchase as deferred revenue until all revenue recognition criteria are met, which is generally when the products or services are delivered. In 2016, the Company introduced the TASER 60 Plan ("TASER 60") whereby a customer typically enters into a five year CEW installment purchase arrangement. The TASER 60 plan also includes extended warranties on the CEW devices upon delivery covering the contract periods as well as on-site spares, holsters and cartridges. Generally, the Company recognizes revenue for the amount allocated to the CEW at the time of sale for the amount of the customer receivable, net of imputed interest, and the amount allocated to the extended warranty is recognized over five years. In 2017, the Company introduced new subscription programs that allow for agencies to purchase the Company's training and duty cartridges over a five -year term whereby the customer would make five equal annual installments. The Company offers two tiers under this program; the basic and unlimited plan. The Axon Basic Cartridge Plan entitles customers to a fixed number of training and duty cartridges as well as a fixed number battery replacements over the contractual term, while the Axon Unlimited Cartridge Plan entitles customers to a fixed number of training cartridges and unlimited duty cartridges and replacement batteries. Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis. Training and professional service revenues are recorded as the services are provided. Deferred revenue consists of payments received in advance related to products and services for which the criteria for revenue recognition have not yet been met. Deferred revenue that will be recognized during the succeeding twelve month period is recorded as current deferred revenue and the remaining portion is recorded as long-term. Deferred revenue does not include future revenue from multi-year contracts for which no invoice has yet been created. Generally, customers are billed in annual installments. See Note 6 for further disclosures about the Company’s deferred revenue. Sales are typically made on credit, and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition, and maintains an allowance for estimated potential losses. Uncollectible accounts are charged to expense when deemed uncollectible, and accounts and notes receivable are presented net of an allowance for doubtful accounts. This allowance represents management’s best use of estimates, and is based on judgment after considering a number of factors, including third-party credit reports, actual payment history, cash discounts, customer-specific financial information and broader market and economic trends and conditions. f. Standard Warranties The Company warranties its 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 replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold and services delivered when revenue is recorded for the related product. Future warranty costs are estimated based on historical data related to returns and warranty costs 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 returns from customers. The accrued warranty liability expense 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. Costs related to extended warranties are charged to cost of products sold and services delivered when incurred. The reserve for warranty returns is included in accrued liabilities on the accompanying condensed consolidated balance sheets. Changes in the Company’s estimated product warranty liabilities are as follows (in thousands): Three Months Ended March 31, 2017 2016 Balance, beginning of period $ 780 $ 314 Utilization of accrual (66 ) (26 ) Warranty expense (recoveries) (367 ) 161 Balance, end of period $ 347 $ 449 g. Fair Value of Financial Instruments The Company uses the fair value framework that 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. The Company categorizes each of its 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 the Company's own assumptions about inputs that market participants would use in pricing an asset or liability. The Company has cash equivalents and investments, which at March 31, 2017 and December 31, 2016 were comprised of money market funds, state and municipal obligations, corporate bonds, and certificates of deposits. See additional disclosure regarding the fair value of the Company’s cash equivalents and investments in Note 2. Included in the balance of Other assets as of March 31, 2017 and December 31, 2016 was $3.5 million and $3.2 million , respectively, related to corporate-owned life insurance policies which are used to fund the Company’s deferred compensation plan. The Company determines the fair value of its insurance contracts by obtaining the cash surrender value of the contracts from the issuer, a Level 2 valuation technique. The Company’s financial instruments also include accounts and notes receivable, accounts payable, notes payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the accompanying condensed consolidated balance sheets. h. Valuation of Goodwill, Intangibles and Long-lived Assets Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets 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, management estimates 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. i. Recently Issued Accounting Guidance In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. Subsequently, the FASB issued the following accounting standard updates related to Topic 606, Revenue Contracts with Customers: • ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) in March 2016. ASU 2016-08 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on principal versus agent considerations. • ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing in April 2016. ASU 2016-10 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on identifying performance obligations and the licensing • ASUs No. 2016-12 and 2016-20, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. These ASUs do not change the core principle of revenue recognition in Topic 606 but clarifiy the implementation guidance on a few narrow areas and adds some practical expedients to the guidance. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. During fiscal 2016, the Company established an internal implementation team and engaged a third-party advisory firm to assist in the implementation of the new standard. The Company is currently finalizing its assessment relative to the adoption and implementation of this guidance, and currently does not expect it will have a significant impact on its consolidated financial statements. The Company is also evaluating whether to adopt the guidance using the full or modified retrospective basis, and will likely make that determination during the first half of fiscal 2017. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330). The amendments require that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company adopted this guidance effective January 1, 2017 and it did not have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for the fiscal year beginning after December 15, 2018 (including interim periods within that year) using a modified retrospective approach and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends Accounting Standards Codification (Topic 718), Compensation – Stock Compensation. ASU 2016-09 impacts several aspects of the accounting for share-based payment transactions. This amended guidance was effective for the Company on January 1, 2017, and required the following changes to the presentation of the Company's financial statements: • Excess tax benefits or deficiencies for share-based payments are now recorded as a discrete item in the period shares vest or stock options are exercised as an adjustment to income tax expense or benefit rather than additional paid-in capital. This change was applied prospectively as of January 1, 2017. The Company did not have any excess tax benefits that were not previously recognized as of January 1, 2017. • As of January 1, 2017, the calculation of diluted weighted average shares outstanding was changed prospectively to no longer include excess tax benefits as assumed proceeds. This change resulted in recording an increased number of dilutive shares, but did not have a material impact on the Company's current year diluted earnings per share; • Cash flows related to excess tax benefits or deficiencies are included in net cash provided by operating activities rather than as a financing activity. The Company adopted this change prospectively. • Cash paid to taxing authorities when withholding shares from an employee's vesting or exercise of equity-based compensation awards for tax-withholding purposes is now considered a repurchase of the Company's equity instruments and is classified as cash used in financing activities. The Company already classifies these transactions as a financing activity, and as such, there is no impact upon adoption. • The Company has made the election to account for forfeitures when they occur rather than estimating forfeitures. The Company adopted this change on a modified retrospective basis, which resulted in an increase to additional paid-in capital and decrease to retained earnings as of December 31, 2016 of $0.5 million . In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which amends ASC 326. The new guidance differs from existing GAAP wherein previous standards generally delayed recognition of credit losses until the loss was probable. ASU 2016-13 eliminates the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. The use of forecasted information is intended to incorporate more timely information in the estimate of expected credit loss. ASU 2016-13 is effective for the fiscal year beginning after December 15, 2019, and interim periods within that fiscal year, and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-13 on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. ASU 2016-15 is effective for the fiscal year beginning after December 15, 2017, and interim periods within that fiscal year, and early adoption is permitted. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 requires an entity to recognize income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This removes the exception to postpone recognition until the asset has been sold to an outside party. ASU 2016-16 is effective for fiscal year beginning after December 15, 2017 using a modified retrospective approach, and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash (Topic 230), which amends the existing guidance relating to the disclosure of restricted cash and restricted cash equivalents on the statement of cash flows. ASU 2016-18 is effective for the fiscal year beginning after December 15, 2017, and interim periods within that fiscal year, and early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) to provide a more robust framework to use in determining when a set of acquired assets and activities is a business. ASU 2017-01 is effective for the fiscal year beginning after December 15, 2017, and interim periods within that year and early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In January 2017, issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) which simplifies the goodwill impairment test by eliminating Step 2 of the quantitative assessment and should reduce the cost and complexity of evaluating goodwill for impairment. Under the amended guidance, when a quantitative assessment is required, an entity will perform a goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be measured as the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of recorded goodwill. ASU 2017-04 is effective for the fiscal year beginning after December 15, 2019, and interim periods within that fiscal year, and early adoption is permitted. The Company's early adoption on January 1, 2017 did not have an impact on its consolidated financial statements. j. 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.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Investments	Cash, Cash Equivalents and Investments The following tables summarize the Company's cash, cash equivalents, and held-to-maturity investments at March 31, 2017 and December 31, 2016 (in thousands): As of March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 22,879 $ — $ — $ 22,879 $ 22,879 $ — $ — Level 1: Money market funds 19,095 — — 19,095 19,095 — — Corporate bonds 22,893 — (26 ) 22,867 — 22,893 — Subtotal 41,988 — (26 ) 41,962 19,095 22,893 — Level 2: State and municipal obligations 6,392 — (1 ) 6,391 — 6,392 — Certificates of deposit 345 — — 345 — 345 — Subtotal 6,737 — (1 ) 6,736 — 6,737 — Total $ 71,604 $ — $ (27 ) $ 71,577 $ 41,974 $ 29,630 $ — As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 32,802 $ — $ — $ 32,802 $ 32,802 $ — $ — Level 1: Money market funds 7,849 — — 7,849 7,849 — — Corporate bonds 33,379 — (57 ) 33,322 — 33,379 — Subtotal 41,228 — (57 ) 41,171 7,849 33,379 — Level 2: State and municipal obligations 14,477 — (10 ) 14,467 — 14,243 234 Certificates of deposit 793 — — 793 — 793 — Subtotal 15,270 — (10 ) 15,260 — 15,036 234 Total $ 89,300 $ — $ (67 ) $ 89,233 $ 40,651 $ 48,415 $ 234 The Company believes the unrealized losses on the Company’s investments are due to interest rate fluctuations. As these investments are either short-term in nature, are expected to be redeemed at par value, and/or because the Company has the ability and intent to hold these investments to maturity, the Company does not consider these investments to be other than temporarily impaired at March 31, 2017 . The following table summarizes the amortized cost and fair value of the short-term and long-term investments held by the Company at March 31, 2017 by contractual maturity (in thousands): Amortized Cost Fair Value Due in less than one year $ 29,630 $ 29,603 Due after one year, through two years — — Due after two years — — Total short-term and long-term investments $ 29,630 $ 29,603

Inventory

Inventory	3 Months Ended
	Mar. 31, 2017
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. Provisions are made to reduce excess, obsolete or slow-moving inventories to their net realizable value. Inventories consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): 2017 2016 Raw materials $ 28,047 $ 18,002 Finished goods 20,652 16,839 Total inventory $ 48,699 $ 34,841

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the three months ended March 31, 2017 were as follows (in thousands): Balance, beginning of period $ 10,442 Goodwill acquired 2,546 Foreign currency translation adjustment 13 Balance, end of period $ 13,001 Intangible assets (other than goodwill) consisted of the following (in thousands): March 31, 2017 December 31, 2016 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Domain names 5 years $ 3,161 $ (201 ) $ 2,960 $ 3,161 $ (125 ) $ 3,036 Issued patents 4-15 years 1,952 (811 ) 1,141 1,942 (780 ) 1,162 Issued trademarks 3-11 years 662 (338 ) 324 655 (320 ) 335 Customer relationships 4-8 years 922 (279 ) 643 914 (240 ) 674 Non-compete agreements 3-4 years 446 (260 ) 186 465 (236 ) 229 Developed technology 3-7 years 14,480 (1,502 ) 12,978 8,661 (824 ) 7,837 Total amortized 21,623 (3,391 ) 18,232 15,798 (2,525 ) 13,273 Not amortized: TASER trademark 900 900 900 900 Patents and trademarks pending 1,124 1,124 1,045 1,045 Total not amortized 2,024 2,024 1,945 1,945 Total intangible assets $ 23,647 $ (3,391 ) $ 20,256 $ 17,743 $ (2,525 ) $ 15,218 Amortization expense relative to intangible assets for the three months ended March 31, 2017 and 2016 was approximately $0.9 million and $0.2 million , respectively. Estimated amortization for intangible assets with definitive lives for the remaining nine months of 2017 , the next five years ended December 31, and thereafter, is as follows (in thousands): 2017 (remaining nine months) $ 3,044 2018 4,043 2019 3,970 2020 2,403 2021 2,318 2022 717 Thereafter 1,737 Total $ 18,232

Other Long-Term Assets

Other Long-Term Assets	3 Months Ended
	Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Long-Term Assets	Other Long-Term Assets Other long-term assets consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): 2017 2016 Cash surrender value of corporate-owned life insurance policies (Note 1) $ 3,518 $ 3,240 Prepaid commissions (i) 5,777 5,302 Restricted cash (ii) 3,317 3,317 Prepaid expenses, deposits and other (iii) 2,169 2,058 Total other long-term assets $ 14,781 $ 13,917 (i) Prepaid commissions represent customer acquisition costs to secure long-term contracts. The Company capitalizes incremental and direct costs related to a specific contract and recognizes as expense over the term of the contract. (ii) As of March 31, 2017 and December 31, 2016, restricted cash primarily consisted of $2.7 million of sales proceeds related to a long-term contract with a specific customer. These proceeds are held in escrow until certain billing milestones are achieved, and then specified amounts are transferred to the Company's operating accounts. Restricted also contained $0.6 million related to a performance guarantee related to an international customer sales contract. (iii) Included in long-term assets as of March 31, 2017 and December 31, 2016 was $1.8 million of funds deposited in escrow related to contingent consideration in connection with a business combination (see Note 15). The funds will be held in escrow and released to selling shareholders if certain conditions are subsequently met. If the conditions are not met, the funds will be released back to the Company.

Deferred Revenue

Deferred Revenue	3 Months Ended
	Mar. 31, 2017
Deferred Revenue Disclosure [Abstract]
Deferred Revenue	Deferred Revenue Deferred revenue consisted of the following (in thousands): March 31, 2017 December 31, 2016 Current Long-Term Total Current Long-Term Total Warranty: TASER Weapons $ 11,368 $ 17,288 $ 28,656 $ 9,980 $ 17,319 $ 27,299 Software and Sensors 4,401 3,148 7,549 3,979 2,926 6,905 15,769 20,436 36,205 13,959 20,245 34,204 Hardware: TASER Weapons 2,591 8,177 10,768 1,702 4,390 6,092 Software and Sensors 10,379 8,749 19,128 9,850 11,205 21,055 12,970 16,926 29,896 11,552 15,595 27,147 Software and Sensors Services 21,170 4,282 25,452 19,626 4,214 23,840 Total $ 49,909 $ 41,644 $ 91,553 $ 45,137 $ 40,054 $ 85,191 March 31, 2017 December 31, 2016 Current Long-Term Total Current Long-Term Total TASER Weapons $ 13,959 $ 25,465 $ 39,424 $ 11,682 $ 21,709 $ 33,391 Software and Sensors 35,950 16,179 52,129 33,455 18,345 51,800 Total $ 49,909 $ 41,644 $ 91,553 $ 45,137 $ 40,054 $ 85,191

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): 2017 2016 Accrued salaries, benefits and bonus $ 5,465 $ 6,474 Accrued professional, consulting and lobbying 1,079 3,673 Accrued warranty expense 347 780 Accrued income and other taxes 7,415 4,581 Other accrued liabilities 6,024 2,740 Accrued liabilities $ 20,330 $ 18,248

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Deferred Tax Assets Net deferred income tax assets at March 31, 2017 , include capitalized research and development costs, research and development tax credits, non-qualified stock-based compensation expense, deferred warranty revenue, warranty and inventory reserves, accrued vacation, and other items, partially offset by accelerated depreciation expense and intangible amortization that is not tax deductible. The Company’s total net deferred tax assets at March 31, 2017 were $20.1 million . In preparing the Company’s condensed consolidated financial statements, management assesses the likelihood that its deferred tax assets will be realized from future taxable income. In evaluating the Company’s ability to recover its deferred income tax assets, management considers all available positive and negative evidence, including its 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 its provisions for income taxes, its deferred tax assets and liabilities, and its future taxable income for purposes of assessing its ability to utilize any future tax benefit from its deferred tax assets. Although management believes that its tax estimates are reasonable, the ultimate tax determination involves significant judgments that could become subject to audit by tax authorities in the ordinary course of business. As of each reporting date, management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. As of March 31, 2017 , the Company continues to demonstrate three-year cumulative pre-tax income in the U.S. federal and Arizona tax jurisdictions; however, the Company's Arizona R&D Tax Credits start to expire in 2018 with a significant tranche with a gross value of $1.2 million expiring if not used by the end of 2019. It appears that that Company’s long term investments, which impact short term profits, will likely result in some of the R&D credits expiring before they are utilized. Therefore, management has concluded that it is more likely than not that a portion of the Company’s deferred tax assets will not be realized and has established a valuation allowance. The Company has completed research and development (“R&D”) tax credit studies which identified approximately $15.6 million in tax credits for federal, Arizona and California income tax purposes related to the 2003 through 2017 tax years. 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 $4.3 million as of March 31, 2017 . In addition, management accrued approximately $0.1 million for estimated uncertain tax positions related to certain state income tax liabilities as of March 31, 2017 . The Company does not expect a significant increase or decrease in the total amount of unrecognized tax benefits within 12 months. Should the total unrecognized tax benefit of $4.4 million be recognized, the Company’s effective tax rate would be favorably impacted. Approximately $1.6 million of the unrecognized tax benefit associated with research and development credits has been netted against the research and development credit deferred tax asset. Effective Tax Rate The Company’s overall effective tax rate for the three months ended March 31, 2017 , after discrete period adjustments, was 17.6% . Before discrete adjustments the tax rate was 42.9% , which is more than the statutory rate primarily due to the impact of non-deductible losses in certain foreign jurisdictions, state taxes and non-deductible expenses for items such as incentive stock option expense, meals and entertainment and lobbying fees, partially offset by the domestic production activities and research and development tax credit deductions. The effective tax rate was unfavorably impacted by foreign losses for which the Company is not expected to receive a tax benefit. This was offset by the favorable impact of a $1.0 million discrete tax benefit associated with windfalls related to stock-based compensation for restricted stock units that vested or stock options that were exercised during the quarter.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity In May 2016, the Company’s stockholders approved a new stock incentive plan authorizing an additional 2.0 million shares, plus remaining available shares under a prior plan for issuance under the new plan. Combined with the legacy stock incentive plans, there are approximately 1.8 million shares available for grant as of March 31, 2017 . Performance-based stock awards The Company has issued performance-based stock options and performance-based restricted stock units ("RSUs"), the vesting of which is contingent upon the achievement of certain performance criteria related to the operating performance of the Company, as well as successful and timely development and market acceptance of future product introductions. In addition, certain of the performance RSUs have additional service-based vesting requirements subsequent to the achievement of the performance criteria. Compensation expense is recognized over the implicit service period (the longer of the period the performance condition is expected to be achieved or the required service period) based on management’s estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date. Restricted Stock Units The following table summarizes RSU activity for the three months ended March 31, 2017 (number of units and aggregate intrinsic value in thousands): Number of Units Weighted Average Grant-Date Fair Value Aggregate Units outstanding, beginning of year 1,330 $ 20.40 Granted 786 25.57 Released (241 ) 18.87 Forfeited (16 ) 23.87 Units outstanding, end of period 1,859 22.74 $ 42,367 Aggregate intrinsic value represents the Company’s closing stock price on the last trading day of the period, which was $22.79 per share, multiplied by the number of RSUs outstanding. As of March 31, 2017 , there was $35.8 million in unrecognized compensation costs related to RSUs under the Company's stock plans. The Company expects to recognize the cost related to the RSUs over a weighted average period of 2.99 years . RSUs are released when vesting requirements are met. During the three months ended March 31, 2017 , the Company granted approximately 0.1 million performance-based RSUs, which are included in the table above. As of March 31, 2017 , the performance criteria had not been met for any the 0.2 million performance-based RSUs outstanding. Certain of the performance-based RSUs granted in 2017 , 2016 and 2015 contain provisions whereby the amount of RSUs that ultimately vest is dependent upon the level of achievement of performance metrics. The amount of RSUs included in the table above related to such grants is the target level, which is the Company's best estimate of the amount of RSUs that will vest. The maximum additional number of performance-based RSUs that could be earned is 0.2 million , which are not included in the table above. Certain RSUs that vested in the three months ended March 31, 2017 were net-share settled such that the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. Total shares withheld were approximately 83,300 and had a value of approximately $2.2 million on their respective vesting dates as determined by the Company’s closing stock price. Payments for the employees’ tax obligations are reflected as a financing activity within the statement of cash flows. These net-share settlements had the effect of share repurchases by the Company as they reduced the amount of shares that would have otherwise been issued as a result of the vesting. Stock Option Activity The following table summarizes stock option activity for the three months ended March 31, 2017 (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 1,008 $ 5.40 Granted — — Exercised (45 ) 6.60 Expired / terminated — — Options outstanding, end of period 963 5.35 2.03 $ — Options exercisable, end of period 932 5.38 2.03 — Options expected to vest, end of period 25 4.75 1.73 451 Aggregate intrinsic value represents the difference between the exercise price of the underlying stock option awards and the closing market price of the Company's common stock of $22.79 on March 31, 2017 . The intrinsic value of options exercised for the three months ended March 31, 2017 and 2016 was $0.7 million and $0.1 million , respectively. As of March 31, 2017 , total options outstanding includes approximately 0.2 million performance-based stock options, of which approximately 30,600 were unvested and 25,000 expected to vest. Stock-based Compensation Expense Stock-based compensation cost for RSUs is measured based on the closing fair market value of the Company’s common stock on the date of grant. The Company recognizes stock-based compensation cost over the requisite service period of an award on a straight-line basis for time-based RSUs and on a graded basis for RSUs that are contingent on the achievement of performance conditions. The following table summarizes the composition of stock stock-based compensation for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Cost of products sold and services delivered $ 79 $ 100 Sales, general and administrative expenses 2,028 1,390 Research and development expenses 1,340 730 Total stock-based compensation $ 3,447 $ 2,220 Stock Repurchase Plan In February 2016, the Company's Board of Directors authorized a stock repurchase program to acquire up to $50.0 million of the Company’s outstanding common stock subject to stock market conditions and corporate considerations. During the three months ended March 31, 2017 , no common shares were purchased under the program. During the three months ended March 31, 2016 , the Company purchased, under a Rule 10b5-1 plan, approximately 0.5 million common shares for a total cost of approximately $9.0 million , or a weighted average cost of $18.86 per share. The weighted average cost includes the average price paid per share of $18.83 , plus applicable administrative costs for the transaction. As of March 31, 2017 , $16.2 million remains available under the plan for future purchases. The Company suspended its 10b5-1 plan, and any future purchases will be discretionary.

Line of Credit

Line of Credit	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Line of Credit	Line of Credit The Company has a $10.0 million revolving line of credit with a domestic bank. At both March 31, 2017 and December 31, 2016 , there were no borrowings under the line. As of March 31, 2017 , the Company had letters of credit outstanding of approximately $2.7 million under the facility and available borrowing of approximately $7.3 million . The line is secured by substantially all of the assets of the Company, and bears interest at varying rates (currently LIBOR plus 1.5% or Prime less 0.75% ). The line of credit matures on July 31, 2017 , and requires monthly payments of interest only. The Company’s agreement with the bank requires it to comply with certain financial and other covenants including maintenance of a maximum leverage ratio and minimum fixed charge coverage ratio. The leverage ratio (ratio of total liabilities to tangible net worth) can be no greater than 1 :1, and the fixed charge coverage ratio can be no less than 1.25 :1, based upon a trailing twelve -month period. At March 31, 2017 , the Company’s leverage ratio was 1.14 :1 and its fixed charge coverage ratio was 2.45 :1. The Company's violation of the leverage ratio requirement was waived as of March 31, 2017.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Product Litigation The Company is 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 (or present) by law enforcement officers in connection with arrests or during training exercises. While the facts vary from case to case, the product liability claims are typically based on an alleged product defect resulting in injury or death, usually involving a failure to warn, and the plaintiffs are seeking monetary damages. The information throughout this note is current through the date of these financial statements. As a general rule, it is the Company’s policy not to settle suspect injury or death cases. Exceptions are sometimes made where the settlement is strategically beneficial to the Company. Also, on occasion, the Company’s insurance company has settled such lawsuits over the Company’s objection where the risk is over the Company’s liability insurance deductibles. Due to the confidentiality of the Company's litigation strategy and the confidentiality agreements that are executed in the event of a settlement, the Company does not identify or comment on which specific lawsuits have been settled or the amount of any settlement. In 2009, the Company implemented new risk management strategies, including revisions to product warnings and training to better protect both the Company and its customers from litigation based on ‘failure to warn’ theories - which comprise the vast majority of the cases against the Company. These risk management strategies have been highly effective in reducing the rate and exposure from litigation post-2009. From the third quarter of 2011 to the first quarter of 2017 , product liability cases have been reduced from 55 active to eight active cases. Management believes that pre-2009 cases have a different risk profile than cases which have occurred since the risk management procedures were introduced in 2009. Therefore, the Company necessarily treats certain pre-2009 cases as exceptions to the Company’s general no settlement policy in order to reduce caseload, legal costs and liability exposure. The Company intends to continue its successful practice of aggressively defending and generally not settling litigation except in very limited and unusual circumstances as described above. With respect to each of the pending lawsuits, the following table lists the name of plaintiff, the date the Company was served with process, the jurisdiction in which the case is pending, the type of claim and the status of the matter. Plaintiff Month Served Jurisdiction Claim Type Status Derbyshire Nov-09 Ontario, Canada Superior Court of Justice Officer Injury Discovery Phase Shymko Dec-10 The Queen's Bench, Winnipeg Centre, Manitoba Wrongful Death Pleading Phase Ramsey Jan-12 12th Judicial Circuit Court, Broward County, FL Wrongful Death Discovery Phase Schrock Sep-14 San Bernardino County Superior Court, CA Wrongful Death Motion for Summary Judgment granted on all claims except negligent design and manufacture, subject to repleading by Plaintiff. Plaintiff filed an amended complaint for negligent design claims as well as a Petition for Writ of Mandate or Prohibition Petition in the Superior Court of California for the County of San Bernardino; which writ was summarily denied. Axon filed Motion for Summary Judgment on design defect claims in April 2017. Trial scheduled for August 14, 2017. Bennett Sep-15 11th Judicial Circuit Court, Miami-Dade County, FL Wrongful Death Discovery Phase. Trial scheduled for June 18, 2018. Suarez Sep-16 US District Court, Southern District of Florida Wrongful Death Pleading Phase. Trial scheduled for September 3, 2018. Masters Nov-16 US District Court, Western District of Missouri Wrongful Death Pleading Phase Taylor Mar-17 US District Court, Southern District of Texas Officer Injury Pleading Phase There are no product litigation matters in which the Company is involved that are currently on appeal, but the judgment entered resulting from the court granting the Company’s motion for dismissal of the Digital Ally, Inc. ("Digital Ally") litigation for antitrust claims is on appeal as noted in the following table. Plaintiff Month Served Jurisdiction Claim Type Status Digital Ally Feb-17 US District Court, District of Kansas Antitrust Claims Axon's Motion for Dismissal of the antitrust claims was granted on January 12, 2017 with judgment entered in Axon's favor on April 14, 2017 and Plaintiff filed an appeal to the 10th Circuit Court of Appeals on April 20, 2017. The following cases were dismissed or judgment entered during the first quarter of 2017 and through the date of these financial statements. Plaintiff Month Served Jurisdiction Claim Type Status Ramos Dec-16 US District Court, Northern District of Illinois Conspiracy and negligent spoliation. Dismissed Firman Apr-12 Ontario, Canada Superior Court of Justice Wrongful Death Dismissed The claims, and in some instances the defense, of each of these lawsuits have been submitted to the Company’s insurance carriers that maintained insurance coverage during the applicable periods. The Company continues to maintain product liability insurance coverage with varying limits and deductibles. The following table provides information regarding the Company’s product liability insurance. Remaining insurance coverage is based on information received from the Company’s insurance provider (in millions). Policy Year Policy Start Date Policy End Date Insurance Coverage Deductible Amount Defense Costs Covered Remaining Insurance Coverage Active Cases and Cases on Appeal 2009 12/15/2008 12/15/2009 10.0 1.0 N 10.0 Derbyshire 2010 12/15/2009 12/15/2010 10.0 1.0 N 10.0 Shymko 2011 12/15/2010 12/15/2011 10.0 1.0 N 10.0 n/a Jan-Jun 2012 12/15/2011 6/25/2012 7.0 1.0 N 7.0 Ramsey Jul-Dec 2012 6/25/2012 12/15/2012 12.0 1.0 N 12.0 n/a 2013 12/15/2012 12/15/2013 12.0 1.0 N 12.0 n/a 2014 12/15/2013 12/15/2014 11.0 4.0 N 11.0 Schrock 2015 12/15/2014 12/15/2015 10.0 5.0 N 10.0 Bennett 2016 12/15/2015 12/15/2016 10.0 5.0 N 10.0 Suarez, Masters 2017 12/15/2016 12/15/2017 10.0 5.0 N 10.0 Taylor Other Litigation In November 2015, the Company filed a complaint against Phazzer Electronics Inc. and Sang Min International Co. Ltd. for patent infringement, trademark infringement and false advertising. Defendant Phazzer has filed a motion to dismiss. Phazzer has filed an ex parte review with the USPTO to invalidate the Company’s data log patent, which patent was reissued with claims 6-18 confirmed and claims 1-5 amended; as well as a cancellation of the Company’s trademark on its cartridge, which cancellation proceeding has been stayed. This litigation is in the motion/discovery phase with a trial date on September 5, 2017. In February 2016, the Company was served with a first amended complaint filed by Digital Ally in the Federal District Court for the District of Kansas alleging patent infringement, commercial bribery, contracts, combinations and conspiracies in restraint of trade and unfair or anti-competitive acts and practices. In March 2016, the Company was served with a second amended complaint with similar allegations. The second amended complaint seeks a judgment of infringement, monetary damages, a permanent injunction, punitive damages and attorneys’ fees and costs. The Company believes the second amended complaint is frivolous and the Company will vigorously defend this litigation. The Company’s motion to dismiss the claims involving commercial bribery, contracts, combinations and conspiracies in restraint of trade and unfair or anti-competitive acts and practices, was granted on January 12, 2017 and judgment of dismissal was entered in the Company’s favor on April 14, 2017. Plaintiff filed an appeal on April 20, 2017 to the 10th Circuit Court of Appeals. The Company has filed four inter parte reviews with the USPTO to invalidate Digital Ally’s patents and also has filed a motion to stay the litigation pending resolution of the inter parte reviews, which motion was granted. This litigation is in the discovery phase. In April 2016, the Company was served with a notice of arbitration claim filed by Antoine di Zazzo, the Company’s former distributor in France, for commissions allegedly owed Mr. di Zazzo. The arbitration claim was filed with the International Court of Arbitration of the International Chamber of Commerce in Paris, France, and the amount that is claimed in controversy is approximately $0.6 million . The Company’s records reflect that all commissions that were due Mr. di Zazzo under his contract were paid or offered to him and the Company will vigorously defend this arbitration claim. In February 2017, the Company was served with a complaint filed by VieVu LLC ("VieVu") alleging tortious interference with a business expectancy. In March 2017, the Company filed a motion to dismiss which motion is pending. In February 2017, the Company filed complaints against VieVu for unfair competition and false advertising in both the Superior Court of Arizona for Maricopa County as well as the California Superior Court for Santa Cruz County. The California complaint was served on VieVu and this litigation is in the pleading phase. General From time to time, the Company is notified that it may be a party to a lawsuit or that a claim is being made against it. It is the Company’s policy to not disclose the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on the Company. After carefully assessing the claim, and assuming the Company determines that it is not at fault or it disagrees with the damages or relief demanded, the Company vigorously defends any lawsuit filed against the Company. In certain legal matters, the Company records a liability when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, the Company takes 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. The Company reevaluates and updates accruals as matters progress over time. Based on the Company's assessment of outstanding litigation and claims as of March 31, 2017 , the Company has determined that it is not reasonably possible that these lawsuits will individually, or in the aggregate, materially affect its 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 its 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, the Company uses letters of credit and surety bonds to guarantee its performance under various contracts, principally in connection with the installation and integration of its Axon cameras and related technologies. Certain of the Company's letters of credit contracts and surety bonds have stated expiration dates with others being released as the contractual performance terms are completed. At March 31, 2017 , the Company had outstanding letters of credit of approximately $2.7 million which are expected to expire in May 2017. Additionally, the Company had approximately $5.7 million of outstanding surety bonds at March 31, 2017 , with $1.0 million expiring in 2018, $2.4 million expiring in 2020, and the remaining $2.3 million expiring in 2021.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company engages Dr. Mark Kroll, a member of the Board of Directors, to provide consulting services. The expenses related to these services were approximately $53,000 and $20,000 for the three months ended March 31, 2017 and 2016 . At March 31, 2017 and December 31, 2016 , the Company had liabilities of approximately $8,000 and $12,000 , respectively, related to these services. The Company subscribes to a mobile collaboration software suite co-founded and managed by Bret Taylor, a member of the Company's Board of Directors. The cost to license this software is approximately $0.1 million per year, and as of March 31, 2017 and December 31, 2016 the Company had $20,200 and $50,500 , respectively, of prepaid costs related to the license subscription.

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company has a defined contribution profit sharing 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 allowed by law of their eligible compensation. The Company also has a non-qualified deferred compensation plan for certain executives, key 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 the Company. 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 the Company does 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. Participants have no rights or claims with respect to any plan assets and any such assets are subject to the claims of the Company’s general creditors. Contributions to the plans are made by both the employee and the Company. Company contributions to the 401(k) plan are based on the level of employee contributions and are immediately vested. The Company’s matching contributions to the 401(k) plan for the three months ended March 31, 2017 and 2016 , were approximately $0.7 million and $0.5 million , respectively. The Company expects to make contributions to the non-qualified deferred compensation plan related to the three months ended March 31, 2017 , of approximately $12,000 . Future matching or profit sharing contributions to the plans are at the Company’s sole discretion.

Segment Data

Segment Data	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Data	Segment Data The Company’s operations are comprised of two reportable segments: the manufacture and sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the software and sensors business, which includes the TASER Cam, Axon cameras and related accessories, Evidence.com, and the Axon Artificial Intelligence team ("Axon AI") (the “Software and Sensors” segment). The Company includes only revenues and costs attributable to the Software and Sensors products in that segment. Included in Software and Sensors segment costs are: costs of sales for both products and services, overhead allocation based on direct labor, selling expense for the Software and Sensors sales team, product management expenses, trade shows and related expenses, and research and development for products included in the Software and Sensors segment. All other costs are included in the TASER Weapons segment. The CODM does not review assets by segment as part of the financial information provided; therefore, only limited asset information is provided in the following tables. Information relative to the Company’s reportable segments is as follows (in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 TASER Weapons Software and Sensors Total TASER Weapons Software and Sensors Total Product sales $ 57,671 $ 9,820 $ 67,491 $ 45,834 $ 4,841 $ 50,675 Service revenue — 11,751 11,751 — 4,855 4,855 Net sales 57,671 21,571 79,242 45,834 9,696 55,530 Cost of products sold 18,026 9,046 27,072 14,077 3,378 17,455 Cost of services delivered — 3,500 3,500 — 1,173 1,173 Gross margin 39,645 9,025 48,670 31,757 5,145 36,902 Sales, general and administrative 17,216 13,641 30,857 15,272 9,561 24,833 Research and development 2,212 10,251 12,463 1,120 5,807 6,927 Income (loss) from operations $ 20,217 $ (14,867 ) $ 5,350 $ 15,365 $ (10,223 ) $ 5,142 Purchase of property and equipment $ 933 $ 1,410 $ 2,343 $ 1,071 $ 209 $ 1,280 Purchase of intangible assets 64 31 95 62 36 98 Purchase of property and equipment and intangible assets in connection with business acquisition — 6,479 6,479 — — — Depreciation and amortization 841 763 1,604 572 329 901

Business Acquisitions

Business Acquisitions	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Business Acquisitions	Business Acquisitions Axon Artificial Intelligence On December 30, 2016, the Company acquired certain intellectual property from Fossil Group, Inc. and Fossil Vietnam, Limited Liability Company. This transaction, which was accounted for as a business combination under ASC 805, was part of the Company's efforts to expand on the Axon platform by transforming workflows using computer vision and natural language with machine learning techniques in order to analyze data and multimedia captured throughout the course of policing. Additionally, as part of the acquisition, a team of seven researchers and software engineers joined the Company as part of the newly established Axon AI team. The purchase price, totaling approximately $6.8 million , consisted of $3.5 million cash at close, and up to an additional $3.3 million of consideration contingent upon the satisfaction of certain conditions. As of March 31, 2017 , no amounts were earned relative to the earn-out provisions. The Company's purchase price allocation is preliminary and subject to revision as more detailed analyses are completed and additional information about fair value of assets become available. The major classes of assets and liabilities to which the Company has allocated the purchase price, on a preliminary basis, were as follows (in thousands): Developed technology $ 5,210 Goodwill 1,615 Total purchase price $ 6,825 The Company assigned the goodwill to the Software and Sensors segment. The acquired developed technology was assigned an amortization period of 5 years. Costs related to the acquisition were expensed as incurred and were considered insignificant. Dextro, Inc. On February 8, 2017, the Company acquired all of the outstanding common stock of Dextro, Inc. ("Dextro"), a Delaware corporation, for a total purchase price of $7.5 million . Dextro's technology provides one of the first computer-vision and deep learning systems to make the visual contents in video searchable in real time. This technology will allow law enforcement agencies and departments to have the ability to quickly isolate and analyze critical seconds of footage from massive amounts of video data. The technology acquired, along with the Dextro employees that joined the Company, will be key additions to the Axon AI team. The purchase price of $7.5 million consisted primarily of cash, net of cash acquired, and contingent consideration of $1.0 million representing potential earn-outs to former stockholders based on predetermined future financial metrics. The Company also agreed to additional earn-out provisions totaling approximately $1.4 million based, in part, on predefined future financial metrics. The additional earn-outs were not included as part of the purchase price and will be expensed as compensation in the period earned. As of March 31, 2017 , no amounts were earned relative to the earn-out provisions. The major classes of assets and liabilities to which the Company allocated the purchase price was as follows (in thousands): Accounts receivable $ 12 Property and equipment 46 Developed technology 5,800 Goodwill 2,546 Deferred income tax liabilities, net (917 ) Total purchase price $ 7,487 The Company has assigned the goodwill to the Software and Sensors segment. Identifiable definite lived intangible assets were assigned a total weighted average amortization period of 3.4 years. Dextro has been included in the Company's consolidated results of operations subsequent to the acquisition date. Pro forma results of operations for Dextro have not been presented because they are not material to the consolidated results of operations. In connection with the acquisition, the Company incurred and expensed costs of approximately $0.2 million , which included legal, accounting and other third-party expenses related to the transaction.

Organization and Summary of S21

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Use of Estimates	These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“US 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 the Company’s annual consolidated financial statements for the year ended December 31, 2016 , as filed on Form 10-K. 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 the Company’s 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 the Company’s Form 10-K for the year ended December 31, 2016 . The results of operations for the three months ended March 31, 2017 and 2016 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 allocated in multiple-deliverable contracts or arrangements, • valuation of goodwill, intangibles and long-lived assets, • recognition, measurement and valuation of current and deferred income taxes, • fair value of stock awards issued and the estimated vesting period for performance-based stock awards, and • recognition and measurement of contingencies and accrued litigation expense. Actual results could differ materially from those estimates.
Segment Information	The Company is comprised of two reportable segments: the manufacture and sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the software and sensors business, which includes the TASER Cam, Axon cameras and related accessories, Evidence.com, and the Axon Artificial Intelligence team ("Axon AI") (collectively the “Software and Sensors” segment), formerly known as the Axon segment. The composition of the Software and Sensors segment remained unchanged, and represents only a change in name. Reportable segments are determined based on discrete financial information reviewed by the Company’s Chief Executive Officer who is the Chief Operating Decision Maker (the “CODM”) for the Company. The Company organizes and reviews operations based on products and services, and currently there are no operating segments that are aggregated. The Company performs an annual analysis of its reportable segments. Additional information related to the Company’s business segments is summarized in Note 14.
Geographic Information and Major Customers	Sales to customers outside of the U.S. are typically denominated in U.S. dollars, and are attributed to each country based on the shipping address of the distributor or customer.
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. 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 the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities.
Revenue Recognition, Deferred Revenue and Accounts and Notes Receivable	The Company derives revenue from two primary sources: (1) the sale of physical products, including CEWs, Axon cameras, corresponding hardware extended warranties, and related accessories such as Axon docks, cartridges and batteries, among others, and (2) subscription to the Company's Evidence.com digital evidence management software as a service ("SaaS") (including data storage fees and other ancillary services), which includes varying levels of support. To a lesser extent, the Company also recognizes training and other professional services revenue. Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, title has transferred, the price is fixed and collectability is reasonably assured. Contractual arrangements may contain explicit customer acceptance provisions, and under such arrangements, the Company defers recognition of revenue until formal customer acceptance is received. Extended warranty revenue, SaaS revenue and related data storage revenue are recognized ratably over the term of the contract beginning on the commencement date of each contract. Revenue arrangements with multiple deliverables are divided into separate units and revenue is allocated using the relative selling price method based upon vendor-specific objective evidence of selling price or third-party evidence of the selling prices if vendor-specific objective evidence of selling prices does not exist. If neither vendor-specific objective evidence nor third-party evidence exists, management uses its best estimate of selling price. The majority of the Company’s allocations of arrangement consideration under multiple element arrangements are performed utilizing prices charged to customers for deliverables when sold separately. The Company’s multiple element arrangements may include future CEWs and/or Axon devices to be delivered at defined points within a multi-year contract, and in those arrangements, the Company allocates total arrangement consideration over the life of the multi-year contract to future deliverables using management’s best estimate of selling price. The Company has not utilized third party evidence of selling price. The Company offers the right to purchase extended warranties that include additional services and coverage beyond the standard limited warranty for certain products. Revenue for extended warranty purchases is deferred at the time of sale and recognized over the warranty period commencing on the date of sale. Extended warranties range from one to five years. Evidence.com and Axon cameras and related accessories have stand-alone value to the customer and are sometimes sold separately, but in most instances are sold together. In these instances, customers typically purchase and pay for the equipment and one year of Evidence.com in advance. Additional years of service are generally billed annually over a specified service term, which has typically ranged from one to five years. Generally, the Company recognizes revenue for the Axon equipment at the time of the sale consistent with the discussion of multiple deliverable arrangements above. Revenue for Evidence.com is deferred at the time of the sale and recognized over the service period. At times the Company subsidizes the cost of Axon devices provided to customers to secure long-term Evidence.com service contracts. In such circumstances, revenue related to the Axon devices recognized at the time of delivery is limited to the amount collected from the customer that is not contingent upon the delivery of future Evidence.com services. The Company recognizes the remaining allocated revenue related to subsidized Axon devices over the remaining period it provides the contracted Evidence.com services. In 2012, the Company introduced a program, the TASER Assurance Program (“TAP”) whereby a customer purchasing a product and joining the program will have the right to trade-in the original product for a new product of the same or like model in the future. Upon joining TAP, customers also receive an extended warranty for the initial products purchased and spare inventory. Under this program the customer generally pays additional annual installments over the contract period, generally three to five years. The Company records consideration received related to the future product purchase as deferred revenue until all revenue recognition criteria are met, which is generally when the new product is delivered. Consideration related to future product purchases is determined at the inception of the arrangement using management’s best estimate of selling price. Management’s estimate is principally based on the current selling price for such products, with due evaluation of the impact of any expected product and pricing changes, which have historically had an immaterial influence on management’s best estimate of selling price. In 2015, The Company introduced the Officer Safety Plan (“OSP”) whereby a customer enters into a five -year Evidence.com subscription that includes all of its standard advanced features along with unlimited storage. The OSP also includes a service plan that includes upgrades of (i) the Axon devices every 2.5 years and (ii) a TASER CEW at any point within the contract period. Upon entering into the OSP, customers also receive extended warranties on the Axon and CEW devices upon delivery to cover the contract periods as well as spare inventory units. Under this program the customer generally makes an initial purchase of Axon cameras and related accessories, and CEWs at inception along with annual installments for services and future hardware deliverables over the contract period. The Company records consideration received related to the future purchase as deferred revenue until all revenue recognition criteria are met, which is generally when the products or services are delivered. In 2016, the Company introduced the TASER 60 Plan ("TASER 60") whereby a customer typically enters into a five year CEW installment purchase arrangement. The TASER 60 plan also includes extended warranties on the CEW devices upon delivery covering the contract periods as well as on-site spares, holsters and cartridges. Generally, the Company recognizes revenue for the amount allocated to the CEW at the time of sale for the amount of the customer receivable, net of imputed interest, and the amount allocated to the extended warranty is recognized over five years. In 2017, the Company introduced new subscription programs that allow for agencies to purchase the Company's training and duty cartridges over a five -year term whereby the customer would make five equal annual installments. The Company offers two tiers under this program; the basic and unlimited plan. The Axon Basic Cartridge Plan entitles customers to a fixed number of training and duty cartridges as well as a fixed number battery replacements over the contractual term, while the Axon Unlimited Cartridge Plan entitles customers to a fixed number of training cartridges and unlimited duty cartridges and replacement batteries. Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis. Training and professional service revenues are recorded as the services are provided. Deferred revenue consists of payments received in advance related to products and services for which the criteria for revenue recognition have not yet been met. Deferred revenue that will be recognized during the succeeding twelve month period is recorded as current deferred revenue and the remaining portion is recorded as long-term. Deferred revenue does not include future revenue from multi-year contracts for which no invoice has yet been created. Generally, customers are billed in annual installments. See Note 6 for further disclosures about the Company’s deferred revenue. Sales are typically made on credit, and the Company generally does not require collateral. Management performs ongoing credit evaluations of its customers’ financial condition, and maintains an allowance for estimated potential losses. Uncollectible accounts are charged to expense when deemed uncollectible, and accounts and notes receivable are presented net of an allowance for doubtful accounts. This allowance represents management’s best use of estimates, and is based on judgment after considering a number of factors, including third-party credit reports, actual payment history, cash discounts, customer-specific financial information and broader market and economic trends and conditions.
Standard Warranties	The Company warranties its 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 replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold and services delivered when revenue is recorded for the related product. Future warranty costs are estimated based on historical data related to returns and warranty costs 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 returns from customers. The accrued warranty liability expense 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. Costs related to extended warranties are charged to cost of products sold and services delivered when incurred. The reserve for warranty returns is included in accrued liabilities on the accompanying condensed consolidated balance sheets.
Fair Value of Financial Instruments	The Company uses the fair value framework that 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. The Company categorizes each of its 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 the Company's own assumptions about inputs that market participants would use in pricing an asset or liability. The Company has cash equivalents and investments, which at March 31, 2017 and December 31, 2016 were comprised of money market funds, state and municipal obligations, corporate bonds, and certificates of deposits. See additional disclosure regarding the fair value of the Company’s cash equivalents and investments in Note 2. Included in the balance of Other assets as of March 31, 2017 and December 31, 2016 was $3.5 million and $3.2 million , respectively, related to corporate-owned life insurance policies which are used to fund the Company’s deferred compensation plan. The Company determines the fair value of its insurance contracts by obtaining the cash surrender value of the contracts from the issuer, a Level 2 valuation technique. The Company’s financial instruments also include accounts and notes receivable, accounts payable, notes payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the accompanying condensed consolidated balance sheets.
Valuation of Goodwill, Intangibles and Long-lived Assets	Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets 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, management estimates 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.
Recently Issued Accounting Guidance	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires entities to recognize revenue through the application of a five-step model, which includes identification of the contract, identification of the performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue as the entity satisfies the performance obligations. Subsequently, the FASB issued the following accounting standard updates related to Topic 606, Revenue Contracts with Customers: • ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) in March 2016. ASU 2016-08 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on principal versus agent considerations. • ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing in April 2016. ASU 2016-10 does not change the core principle of revenue recognition in Topic 606 but clarifies the implementation guidance on identifying performance obligations and the licensing • ASUs No. 2016-12 and 2016-20, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. These ASUs do not change the core principle of revenue recognition in Topic 606 but clarifiy the implementation guidance on a few narrow areas and adds some practical expedients to the guidance. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. During fiscal 2016, the Company established an internal implementation team and engaged a third-party advisory firm to assist in the implementation of the new standard. The Company is currently finalizing its assessment relative to the adoption and implementation of this guidance, and currently does not expect it will have a significant impact on its consolidated financial statements. The Company is also evaluating whether to adopt the guidance using the full or modified retrospective basis, and will likely make that determination during the first half of fiscal 2017. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330). The amendments require that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The Company adopted this guidance effective January 1, 2017 and it did not have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for the fiscal year beginning after December 15, 2018 (including interim periods within that year) using a modified retrospective approach and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends Accounting Standards Codification (Topic 718), Compensation – Stock Compensation. ASU 2016-09 impacts several aspects of the accounting for share-based payment transactions. This amended guidance was effective for the Company on January 1, 2017, and required the following changes to the presentation of the Company's financial statements: • Excess tax benefits or deficiencies for share-based payments are now recorded as a discrete item in the period shares vest or stock options are exercised as an adjustment to income tax expense or benefit rather than additional paid-in capital. This change was applied prospectively as of January 1, 2017. The Company did not have any excess tax benefits that were not previously recognized as of January 1, 2017. • As of January 1, 2017, the calculation of diluted weighted average shares outstanding was changed prospectively to no longer include excess tax benefits as assumed proceeds. This change resulted in recording an increased number of dilutive shares, but did not have a material impact on the Company's current year diluted earnings per share; • Cash flows related to excess tax benefits or deficiencies are included in net cash provided by operating activities rather than as a financing activity. The Company adopted this change prospectively. • Cash paid to taxing authorities when withholding shares from an employee's vesting or exercise of equity-based compensation awards for tax-withholding purposes is now considered a repurchase of the Company's equity instruments and is classified as cash used in financing activities. The Company already classifies these transactions as a financing activity, and as such, there is no impact upon adoption. • The Company has made the election to account for forfeitures when they occur rather than estimating forfeitures. The Company adopted this change on a modified retrospective basis, which resulted in an increase to additional paid-in capital and decrease to retained earnings as of December 31, 2016 of $0.5 million . In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which amends ASC 326. The new guidance differs from existing GAAP wherein previous standards generally delayed recognition of credit losses until the loss was probable. ASU 2016-13 eliminates the probable initial recognition threshold and, instead, reflect an entity’s current estimate of all expected credit losses. The use of forecasted information is intended to incorporate more timely information in the estimate of expected credit loss. ASU 2016-13 is effective for the fiscal year beginning after December 15, 2019, and interim periods within that fiscal year, and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of ASU 2016-13 on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments. ASU 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. ASU 2016-15 is effective for the fiscal year beginning after December 15, 2017, and interim periods within that fiscal year, and early adoption is permitted. The retrospective transition method, requiring adjustment to all comparative periods presented, is required unless it is impracticable for some of the amendments, in which case those amendments would be prospectively as of the earliest date practicable. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 requires an entity to recognize income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This removes the exception to postpone recognition until the asset has been sold to an outside party. ASU 2016-16 is effective for fiscal year beginning after December 15, 2017 using a modified retrospective approach, and early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows - Restricted Cash (Topic 230), which amends the existing guidance relating to the disclosure of restricted cash and restricted cash equivalents on the statement of cash flows. ASU 2016-18 is effective for the fiscal year beginning after December 15, 2017, and interim periods within that fiscal year, and early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) to provide a more robust framework to use in determining when a set of acquired assets and activities is a business. ASU 2017-01 is effective for the fiscal year beginning after December 15, 2017, and interim periods within that year and early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In January 2017, issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) which simplifies the goodwill impairment test by eliminating Step 2 of the quantitative assessment and should reduce the cost and complexity of evaluating goodwill for impairment. Under the amended guidance, when a quantitative assessment is required, an entity will perform a goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be measured as the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of recorded goodwill. ASU 2017-04 is effective for the fiscal year beginning after December 15, 2019, and interim periods within that fiscal year, and early adoption is permitted. The Company's early adoption on January 1, 2017 did not have an impact on its 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.

Organization and Summary of S22

Organization and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net Sales by Geographic Area	For the three months ended March 31, 2017 and 2016 , net sales by geographic area were as follows (in thousands): Three Months Ended March 31, 2017 2016 United States $ 64,752 81.7 % $ 42,468 76.5 % Other Countries 14,490 18.3 13,062 23.5 Total $ 79,242 100.0 % $ 55,530 100.0 %
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 March 31, 2017 2016 Numerator for basic and diluted earnings per share: Net income $ 4,580 $ 3,463 Denominator: Weighted average shares outstanding - basic 52,418 53,693 Dilutive effect of stock-based awards (a) 1,259 1,096 Diluted weighted average shares outstanding 53,677 54,789 Anti-dilutive stock-based awards excluded 676 525 Net income per common share: Basic $ 0.09 $ 0.06 Diluted $ 0.09 $ 0.06 (a) Prior-period information has been restated for the adoption of ASU 2016-09, which the Company adopted on January 1, 2017, resulting in an increased dilutive effect of restricted stock units.
Summary of Changes in Estimated Product Warranty Liabilities	Changes in the Company’s estimated product warranty liabilities are as follows (in thousands): Three Months Ended March 31, 2017 2016 Balance, beginning of period $ 780 $ 314 Utilization of accrual (66 ) (26 ) Warranty expense (recoveries) (367 ) 161 Balance, end of period $ 347 $ 449

Cash, Cash Equivalents and In23

Cash, Cash Equivalents and Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Cash and Cash Equivalents [Abstract]
Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type	The following tables summarize the Company's cash, cash equivalents, and held-to-maturity investments at March 31, 2017 and December 31, 2016 (in thousands): As of March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 22,879 $ — $ — $ 22,879 $ 22,879 $ — $ — Level 1: Money market funds 19,095 — — 19,095 19,095 — — Corporate bonds 22,893 — (26 ) 22,867 — 22,893 — Subtotal 41,988 — (26 ) 41,962 19,095 22,893 — Level 2: State and municipal obligations 6,392 — (1 ) 6,391 — 6,392 — Certificates of deposit 345 — — 345 — 345 — Subtotal 6,737 — (1 ) 6,736 — 6,737 — Total $ 71,604 $ — $ (27 ) $ 71,577 $ 41,974 $ 29,630 $ — As of December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short-Term Investments Long-Term Investments Cash $ 32,802 $ — $ — $ 32,802 $ 32,802 $ — $ — Level 1: Money market funds 7,849 — — 7,849 7,849 — — Corporate bonds 33,379 — (57 ) 33,322 — 33,379 — Subtotal 41,228 — (57 ) 41,171 7,849 33,379 — Level 2: State and municipal obligations 14,477 — (10 ) 14,467 — 14,243 234 Certificates of deposit 793 — — 793 — 793 — Subtotal 15,270 — (10 ) 15,260 — 15,036 234 Total $ 89,300 $ — $ (67 ) $ 89,233 $ 40,651 $ 48,415 $ 234
Summary of Amortized Cost and Fair Value of Short-term and Long-term Investments	The following table summarizes the amortized cost and fair value of the short-term and long-term investments held by the Company at March 31, 2017 by contractual maturity (in thousands): Amortized Cost Fair Value Due in less than one year $ 29,630 $ 29,603 Due after one year, through two years — — Due after two years — — Total short-term and long-term investments $ 29,630 $ 29,603

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventory	Inventories consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): 2017 2016 Raw materials $ 28,047 $ 18,002 Finished goods 20,652 16,839 Total inventory $ 48,699 $ 34,841

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amount of goodwill for the three months ended March 31, 2017 were as follows (in thousands): Balance, beginning of period $ 10,442 Goodwill acquired 2,546 Foreign currency translation adjustment 13 Balance, end of period $ 13,001
Intangible Assets Other than goodwill	Intangible assets (other than goodwill) consisted of the following (in thousands): March 31, 2017 December 31, 2016 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized: Domain names 5 years $ 3,161 $ (201 ) $ 2,960 $ 3,161 $ (125 ) $ 3,036 Issued patents 4-15 years 1,952 (811 ) 1,141 1,942 (780 ) 1,162 Issued trademarks 3-11 years 662 (338 ) 324 655 (320 ) 335 Customer relationships 4-8 years 922 (279 ) 643 914 (240 ) 674 Non-compete agreements 3-4 years 446 (260 ) 186 465 (236 ) 229 Developed technology 3-7 years 14,480 (1,502 ) 12,978 8,661 (824 ) 7,837 Total amortized 21,623 (3,391 ) 18,232 15,798 (2,525 ) 13,273 Not amortized: TASER trademark 900 900 900 900 Patents and trademarks pending 1,124 1,124 1,045 1,045 Total not amortized 2,024 2,024 1,945 1,945 Total intangible assets $ 23,647 $ (3,391 ) $ 20,256 $ 17,743 $ (2,525 ) $ 15,218
Estimated Amortization Expense of Intangible Assets	Estimated amortization for intangible assets with definitive lives for the remaining nine months of 2017 , the next five years ended December 31, and thereafter, is as follows (in thousands): 2017 (remaining nine months) $ 3,044 2018 4,043 2019 3,970 2020 2,403 2021 2,318 2022 717 Thereafter 1,737 Total $ 18,232

Other Long-Term Assets (Tables)

Other Long-Term Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Long-Term Assets	Other long-term assets consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): 2017 2016 Cash surrender value of corporate-owned life insurance policies (Note 1) $ 3,518 $ 3,240 Prepaid commissions (i) 5,777 5,302 Restricted cash (ii) 3,317 3,317 Prepaid expenses, deposits and other (iii) 2,169 2,058 Total other long-term assets $ 14,781 $ 13,917 (i) Prepaid commissions represent customer acquisition costs to secure long-term contracts. The Company capitalizes incremental and direct costs related to a specific contract and recognizes as expense over the term of the contract. (ii) As of March 31, 2017 and December 31, 2016, restricted cash primarily consisted of $2.7 million of sales proceeds related to a long-term contract with a specific customer. These proceeds are held in escrow until certain billing milestones are achieved, and then specified amounts are transferred to the Company's operating accounts. Restricted also contained $0.6 million related to a performance guarantee related to an international customer sales contract. (iii) Included in long-term assets as of March 31, 2017 and December 31, 2016 was $1.8 million of funds deposited in escrow related to contingent consideration in connection with a business combination (see Note 15). The funds will be held in escrow and released to selling shareholders if certain conditions are subsequently met. If the conditions are not met, the funds will be released back to the Company.

Deferred Revenue (Tables)

Deferred Revenue (Tables)	3 Months Ended
	Mar. 31, 2017
Deferred Revenue Disclosure [Abstract]
Summary of Deferred Revenue	Deferred revenue consisted of the following (in thousands): March 31, 2017 December 31, 2016 Current Long-Term Total Current Long-Term Total Warranty: TASER Weapons $ 11,368 $ 17,288 $ 28,656 $ 9,980 $ 17,319 $ 27,299 Software and Sensors 4,401 3,148 7,549 3,979 2,926 6,905 15,769 20,436 36,205 13,959 20,245 34,204 Hardware: TASER Weapons 2,591 8,177 10,768 1,702 4,390 6,092 Software and Sensors 10,379 8,749 19,128 9,850 11,205 21,055 12,970 16,926 29,896 11,552 15,595 27,147 Software and Sensors Services 21,170 4,282 25,452 19,626 4,214 23,840 Total $ 49,909 $ 41,644 $ 91,553 $ 45,137 $ 40,054 $ 85,191 March 31, 2017 December 31, 2016 Current Long-Term Total Current Long-Term Total TASER Weapons $ 13,959 $ 25,465 $ 39,424 $ 11,682 $ 21,709 $ 33,391 Software and Sensors 35,950 16,179 52,129 33,455 18,345 51,800 Total $ 49,909 $ 41,644 $ 91,553 $ 45,137 $ 40,054 $ 85,191

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): 2017 2016 Accrued salaries, benefits and bonus $ 5,465 $ 6,474 Accrued professional, consulting and lobbying 1,079 3,673 Accrued warranty expense 347 780 Accrued income and other taxes 7,415 4,581 Other accrued liabilities 6,024 2,740 Accrued liabilities $ 20,330 $ 18,248

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Summary of Restricted Stock Unit Activity	The following table summarizes RSU activity for the three months ended March 31, 2017 (number of units and aggregate intrinsic value in thousands): Number of Units Weighted Average Grant-Date Fair Value Aggregate Units outstanding, beginning of year 1,330 $ 20.40 Granted 786 25.57 Released (241 ) 18.87 Forfeited (16 ) 23.87 Units outstanding, end of period 1,859 22.74 $ 42,367
Summary of the Stock Option Activity	The following table summarizes stock option activity for the three months ended March 31, 2017 (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 1,008 $ 5.40 Granted — — Exercised (45 ) 6.60 Expired / terminated — — Options outstanding, end of period 963 5.35 2.03 $ — Options exercisable, end of period 932 5.38 2.03 — Options expected to vest, end of period 25 4.75 1.73 451
Stock-Based Compensation	The following table summarizes the composition of stock stock-based compensation for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 2016 Cost of products sold and services delivered $ 79 $ 100 Sales, general and administrative expenses 2,028 1,390 Research and development expenses 1,340 730 Total stock-based compensation $ 3,447 $ 2,220

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Loss Contingencies	With respect to each of the pending lawsuits, the following table lists the name of plaintiff, the date the Company was served with process, the jurisdiction in which the case is pending, the type of claim and the status of the matter. Plaintiff Month Served Jurisdiction Claim Type Status Derbyshire Nov-09 Ontario, Canada Superior Court of Justice Officer Injury Discovery Phase Shymko Dec-10 The Queen's Bench, Winnipeg Centre, Manitoba Wrongful Death Pleading Phase Ramsey Jan-12 12th Judicial Circuit Court, Broward County, FL Wrongful Death Discovery Phase Schrock Sep-14 San Bernardino County Superior Court, CA Wrongful Death Motion for Summary Judgment granted on all claims except negligent design and manufacture, subject to repleading by Plaintiff. Plaintiff filed an amended complaint for negligent design claims as well as a Petition for Writ of Mandate or Prohibition Petition in the Superior Court of California for the County of San Bernardino; which writ was summarily denied. Axon filed Motion for Summary Judgment on design defect claims in April 2017. Trial scheduled for August 14, 2017. Bennett Sep-15 11th Judicial Circuit Court, Miami-Dade County, FL Wrongful Death Discovery Phase. Trial scheduled for June 18, 2018. Suarez Sep-16 US District Court, Southern District of Florida Wrongful Death Pleading Phase. Trial scheduled for September 3, 2018. Masters Nov-16 US District Court, Western District of Missouri Wrongful Death Pleading Phase Taylor Mar-17 US District Court, Southern District of Texas Officer Injury Pleading Phase There are no product litigation matters in which the Company is involved that are currently on appeal, but the judgment entered resulting from the court granting the Company’s motion for dismissal of the Digital Ally, Inc. ("Digital Ally") litigation for antitrust claims is on appeal as noted in the following table. Plaintiff Month Served Jurisdiction Claim Type Status Digital Ally Feb-17 US District Court, District of Kansas Antitrust Claims Axon's Motion for Dismissal of the antitrust claims was granted on January 12, 2017 with judgment entered in Axon's favor on April 14, 2017 and Plaintiff filed an appeal to the 10th Circuit Court of Appeals on April 20, 2017. The following cases were dismissed or judgment entered during the first quarter of 2017 and through the date of these financial statements. Plaintiff Month Served Jurisdiction Claim Type Status Ramos Dec-16 US District Court, Northern District of Illinois Conspiracy and negligent spoliation. Dismissed Firman Apr-12 Ontario, Canada Superior Court of Justice Wrongful Death Dismissed
Information Regarding the Company's Insurance Coverage	The following table provides information regarding the Company’s product liability insurance. Remaining insurance coverage is based on information received from the Company’s insurance provider (in millions). Policy Year Policy Start Date Policy End Date Insurance Coverage Deductible Amount Defense Costs Covered Remaining Insurance Coverage Active Cases and Cases on Appeal 2009 12/15/2008 12/15/2009 10.0 1.0 N 10.0 Derbyshire 2010 12/15/2009 12/15/2010 10.0 1.0 N 10.0 Shymko 2011 12/15/2010 12/15/2011 10.0 1.0 N 10.0 n/a Jan-Jun 2012 12/15/2011 6/25/2012 7.0 1.0 N 7.0 Ramsey Jul-Dec 2012 6/25/2012 12/15/2012 12.0 1.0 N 12.0 n/a 2013 12/15/2012 12/15/2013 12.0 1.0 N 12.0 n/a 2014 12/15/2013 12/15/2014 11.0 4.0 N 11.0 Schrock 2015 12/15/2014 12/15/2015 10.0 5.0 N 10.0 Bennett 2016 12/15/2015 12/15/2016 10.0 5.0 N 10.0 Suarez, Masters 2017 12/15/2016 12/15/2017 10.0 5.0 N 10.0 Taylor

Segment Data (Tables)

Segment Data (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Summary of Operational Information Relative to the Company's Reportable Segments	Information relative to the Company’s reportable segments is as follows (in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 TASER Weapons Software and Sensors Total TASER Weapons Software and Sensors Total Product sales $ 57,671 $ 9,820 $ 67,491 $ 45,834 $ 4,841 $ 50,675 Service revenue — 11,751 11,751 — 4,855 4,855 Net sales 57,671 21,571 79,242 45,834 9,696 55,530 Cost of products sold 18,026 9,046 27,072 14,077 3,378 17,455 Cost of services delivered — 3,500 3,500 — 1,173 1,173 Gross margin 39,645 9,025 48,670 31,757 5,145 36,902 Sales, general and administrative 17,216 13,641 30,857 15,272 9,561 24,833 Research and development 2,212 10,251 12,463 1,120 5,807 6,927 Income (loss) from operations $ 20,217 $ (14,867 ) $ 5,350 $ 15,365 $ (10,223 ) $ 5,142 Purchase of property and equipment $ 933 $ 1,410 $ 2,343 $ 1,071 $ 209 $ 1,280 Purchase of intangible assets 64 31 95 62 36 98 Purchase of property and equipment and intangible assets in connection with business acquisition — 6,479 6,479 — — — Depreciation and amortization 841 763 1,604 572 329 901

Business Acquisitions (Tables)

Business Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The major classes of assets and liabilities to which the Company has allocated the purchase price, on a preliminary basis, were as follows (in thousands): Developed technology $ 5,210 Goodwill 1,615 Total purchase price $ 6,825 The major classes of assets and liabilities to which the Company allocated the purchase price was as follows (in thousands): Accounts receivable $ 12 Property and equipment 46 Developed technology 5,800 Goodwill 2,546 Deferred income tax liabilities, net (917 ) Total purchase price $ 7,487

Organization and Summary of S33

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)SegmentsubsidiarySource	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Summary Of Significant Accounting Policy [Line Items]
Number of wholly owned subsidiaries | subsidiary	2
Number of reportable segments | Segment	2
Number of revenue sources | Source	2
Warranty period	1 year
Corporate owned life insurance policies fair value	$ 3,518		$ 3,240
Net income	$ 4,580	$ 3,463
Additional Paid-in Capital | Accounting Standards Update 2016-09
Summary Of Significant Accounting Policy [Line Items]
Cumulative effect of new accounting principle in period of adoption - APIC			500
Retained Earnings | Accounting Standards Update 2016-09
Summary Of Significant Accounting Policy [Line Items]
Cumulative effect of new accounting principle in period of adoption - APIC			$ (500)
Minimum
Summary Of Significant Accounting Policy [Line Items]
Service term for services purchased	3 years
Maximum
Summary Of Significant Accounting Policy [Line Items]
Service term for services purchased	5 years
Extended Product Warranty | Minimum
Summary Of Significant Accounting Policy [Line Items]
Extended warranty period	1 year
Service term for services purchased	1 year
Extended Product Warranty | Maximum
Summary Of Significant Accounting Policy [Line Items]
Extended warranty period	5 years
Service term for services purchased	5 years
Evidence. Com
Summary Of Significant Accounting Policy [Line Items]
Subscription period	5 years
Device upgrade period	2 years 6 months
Customer Concentration Risk | Sales Revenue, Net | One customer
Summary Of Significant Accounting Policy [Line Items]
Concentration risk, percentage		10.90%
Customer Concentration Risk | Accounts Receivable | One customer
Summary Of Significant Accounting Policy [Line Items]
Concentration risk, percentage			14.50%

Organization and Summary of S34

Organization and Summary of Significant Accounting Policies - Net Sales by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Net sales by geographic area	$ 79,242	$ 55,530
Percentage of net sales by geographic area	100.00%	100.00%
United States
Segment Reporting Information [Line Items]
Net sales by geographic area	$ 64,752	$ 42,468
Percentage of net sales by geographic area	81.70%	76.50%
Other Countries
Segment Reporting Information [Line Items]
Net sales by geographic area	$ 14,490	$ 13,062
Percentage of net sales by geographic area	18.30%	23.50%

Organization and Summary of S35

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
	Mar. 31, 2017	Mar. 31, 2016
Numerator for basic and diluted earnings per share:
Net income	$ 4,580	$ 3,463
Denominator:
Weighted average shares outstanding—basic (in shares)	52,418	53,693
Dilutive effect of stock-based awards (in shares)	1,259	1,096
Diluted weighted average shares outstanding (in shares)	53,677	54,789
Anti-dilutive stock-based awards excluded (in shares)	676	525
Net income per common share:
Basic (in dollars per share)	$ 0.09	$ 0.06
Diluted (in dollars per share)	$ 0.09	$ 0.06

Organization and Summary of S36

Organization and Summary of Significant Accounting Policies - Summary of Changes in Estimated Product Warranty Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance, beginning of period	$ 780	$ 314
Utilization of accrual	(66)	(26)
Warranty expense (recoveries)	(367)	161
Balance, end of period	$ 347	$ 449

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	Mar. 31, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	$ 71,604	$ 89,300
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(27)	(67)
Fair Value	71,577	89,233
Cash and Cash Equivalents	41,974	40,651
Short-term investments	29,630	48,415
Long-term investments	0	234
Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	41,988	41,228
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(26)	(57)
Fair Value	41,962	41,171
Cash and Cash Equivalents	19,095	7,849
Short-term investments	22,893	33,379
Long-term investments	0	0
Fair Value, Inputs, Level 2
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	6,737	15,270
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(10)
Fair Value	6,736	15,260
Cash and Cash Equivalents	0	0
Short-term investments	6,737	15,036
Long-term investments	0	234
Fair Value, Inputs, Level 2 | State and municipal obligations
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	6,392	14,477
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	(10)
Fair Value	6,391	14,467
Cash and Cash Equivalents	0	0
Short-term investments	6,392	14,243
Long-term investments	0	234
Fair Value, Inputs, Level 2 | Certificates of deposit
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	345	793
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	345	793
Cash and Cash Equivalents	0	0
Short-term investments	345	793
Long-term investments	0	0
Cash
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	22,879	32,802
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	22,879	32,802
Cash and Cash Equivalents	22,879	32,802
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	19,095	7,849
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	19,095	7,849
Cash and Cash Equivalents	19,095	7,849
Short-term investments	0	0
Long-term investments	0	0
Corporate bonds | Fair Value, Inputs, Level 1
Restricted Cash and Cash Equivalents Items [Line Items]
Amortized Cost	22,893	33,379
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(26)	(57)
Fair Value	22,867	33,322
Cash and Cash Equivalents	0	0
Short-term investments	22,893	33,379
Long-term investments	$ 0	$ 0

Cash, Cash Equivalents, and I38

Cash, Cash Equivalents, and Investments - Summary of Amortized Cost and Fair Value of Short-term and Long-term Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Due in less than one year	$ 29,630	$ 48,415
Due after one year, through two years	0	$ 234
Amortized Cost
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Due in less than one year	29,630
Due after one year, through two years	0
Due after two years	0
Total short-term and long-term investments	29,630
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Due in less than one year	29,603
Due after one year, through two years	0
Due after two years	0
Total short-term and long-term investments	$ 29,603

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 28,047	$ 18,002
Finished goods	20,652	16,839
Total inventory	$ 48,699	$ 34,841

Goodwill and Intangible Asset40

Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Goodwill [Roll Forward]
Balance, beginning of period	$ 10,442
Goodwill acquired	2,546
Foreign currency translation adjustment	13
Balance, end of period	$ 13,001

Goodwill and Intangible Asset41

Goodwill and Intangible Assets - Intangible Assets Other than Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Indefinite-lived Intangible Assets [Line Items]
Not amortized intangible assets, Carrying Amount	$ 2,024	$ 1,945
Finite-Lived Intangible Assets [Line Items]
Amortized intangible assets, Gross Carrying Amount	21,623	15,798
Accumulated Amortization	(3,391)	(2,525)
Total	18,232	13,273
Intangible assets, Gross Carrying Amount	23,647	17,743
Intangible assets, Net Carrying Amount	20,256	15,218
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	$ 1,124	1,045
Domain names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	5 years
Amortized intangible assets, Gross Carrying Amount	$ 3,161	3,161
Accumulated Amortization	(201)	(125)
Total	2,960	3,036
Issued patents
Finite-Lived Intangible Assets [Line Items]
Amortized intangible assets, Gross Carrying Amount	1,952	1,942
Accumulated Amortization	(811)	(780)
Total	$ 1,141	1,162
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]
Amortized intangible assets, Gross Carrying Amount	$ 662	655
Accumulated Amortization	(338)	(320)
Total	$ 324	335
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]
Amortized intangible assets, Gross Carrying Amount	$ 922	914
Accumulated Amortization	(279)	(240)
Total	$ 643	674
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]
Amortized intangible assets, Gross Carrying Amount	$ 446	465
Accumulated Amortization	(260)	(236)
Total	$ 186	229
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]
Amortized intangible assets, Gross Carrying Amount	$ 14,480	8,661
Accumulated Amortization	(1,502)	(824)
Total	$ 12,978	$ 7,837
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

Goodwill and Intangible asset42

Goodwill and Intangible assets - Estimated Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 900	$ 200
2017 (remaining nine months)	3,044
2,018	4,043
2,019	3,970
2,020	2,403
2,021	2,318
2,022	717
Thereafter	1,737
Total	$ 18,232		$ 13,273

Other Long-Term Assets (Details

Other Long-Term Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Cash surrender value of corporate-owned life insurance policies	$ 3,518	$ 3,240
Prepaid commissions	5,777	5,302
Restricted cash	3,317	3,317
Prepaid expenses, deposits and other	2,169	2,058
Total other long-term assets	14,781	13,917
Funds deposited in escrow	1,800	1,800
Cash Receipts Held In Escrow
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	2,700	2,700
Restricted Cash For Performance Guarantee
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 600	$ 600

Deferred Revenue - Summary of D

Deferred Revenue - Summary of Deferred Revenue (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Deferred Revenue Arrangement [Line Items]
Current	$ 49,909	$ 45,137
Long-Term	41,644	40,054
Total	91,553	85,191
Warranty
Deferred Revenue Arrangement [Line Items]
Current	15,769	13,959
Long-Term	20,436	20,245
Total	36,205	34,204
Hardware
Deferred Revenue Arrangement [Line Items]
Current	12,970	11,552
Long-Term	16,926	15,595
Total	29,896	27,147
Software and Sensor Services
Deferred Revenue Arrangement [Line Items]
Current	21,170	19,626
Long-Term	4,282	4,214
Total	25,452	23,840
TASER Weapons
Deferred Revenue Arrangement [Line Items]
Current	13,959	11,682
Long-Term	25,465	21,709
Total	39,424	33,391
TASER Weapons | Warranty
Deferred Revenue Arrangement [Line Items]
Current	11,368	9,980
Long-Term	17,288	17,319
Total	28,656	27,299
TASER Weapons | Hardware
Deferred Revenue Arrangement [Line Items]
Current	2,591	1,702
Long-Term	8,177	4,390
Total	10,768	6,092
Software and Sensors
Deferred Revenue Arrangement [Line Items]
Current	35,950	33,455
Long-Term	16,179	18,345
Total	52,129	51,800
Software and Sensors | Warranty
Deferred Revenue Arrangement [Line Items]
Current	4,401	3,979
Long-Term	3,148	2,926
Total	7,549	6,905
Software and Sensors | Hardware
Deferred Revenue Arrangement [Line Items]
Current	10,379	9,850
Long-Term	8,749	11,205
Total	$ 19,128	$ 21,055

Accrued Liabilities (Detail)

Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued salaries, benefits and bonus	$ 5,465	$ 6,474
Accrued professional, consulting and lobbying	1,079	3,673
Accrued warranty expense	347	780	$ 449	$ 314
Accrued income and other taxes	7,415	4,581
Other accrued liabilities	6,024	2,740
Accrued liabilities	$ 20,330	$ 18,248

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Tax Credit Carryforward [Line Items]
Deferred tax assets, net	$ 20.1
Research and development tax credit studies	15.6
Unrecognized tax benefits	$ 4.4
Overall effective tax rate, after discrete period adjustments	17.60%
Effective tax rate, before discrete period adjustment	42.90%
Discrete tax benefit, stock-based compensation	$ 1
Federal
Tax Credit Carryforward [Line Items]
Unrecognized tax benefits	4.3
State
Tax Credit Carryforward [Line Items]
Unrecognized tax benefits	0.1
Expiring in 2019
Tax Credit Carryforward [Line Items]
Tax credit carryforward, amount	1.2
Research and Development Credits
Tax Credit Carryforward [Line Items]
Tax credit carryforward, valuation allowance	$ 1.6

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	May 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option available for future grants (in shares)		1,800,000
Tax payments, for net share settlement of share based award		$ 2,165,000	$ 744,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value price per share (in dollars per share)		$ 22.79
Total intrinsic value of options exercised		$ 700,000	$ 100,000
Number of options outstanding (in shares)		963,000		1,008,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense related to non-vested stock options		$ 35,800,000
Weighted average period over which costs are recognized		2 years 11 months 27 days
Approximate units outstanding (in shares)		1,859,000		1,330,000
Performance Based Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Approximate units of performance restricted stock granted (in shares)		100,000
Approximate units outstanding (in shares)		200,000
Maximum additional shares to be issued		200,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld, for net share settlement of share based award		83,300
Tax payments, for net share settlement of share based award		$ 2,200,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding (in shares)		200,000
Unvested performance options (in shares)		30,600
Unvested shares, expected to vest		25,000
2016 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized	2,000,000
Outstanding common stock repurchase program authorized amount (up to)					$ 50,000,000
Shares repurchased during period		0
Cost of shares repurchased		$ 9,000,000
Average cost of shares repurchased (in dollars per share)		$ 18.86
Average price of shares repurchased (in dollars per share)		$ 18.83
Remaining authorized repurchase amount		$ 16,200,000
Rule 10b5-1 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased during period		500,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / 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	1,330
Number of Units, Granted (in shares) | shares	786
Number of Units, Released (in shares) | shares	(241)
Number of Units, Forfeited (in shares) | shares	(16)
Number of Units outstanding, end of period (in shares) | shares	1,859
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) | $ / shares	$ 20.40
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares	25.57
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares	18.87
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	23.87
Weighted Average Grant Date Fair Value, Units outstanding, end of period (in dollars per share) | $ / shares	$ 22.74
Aggregate intrinsic value at end of period | $	$ 42,367

Stockholders' Equity - Summar49

Stockholders' Equity - Summary of the Company's Stock Options Activity (Detail) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / 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	1,008
Number of options, Granted (in shares) | shares	0
Number of options, Exercised (in shares) | shares	(45)
Number of options, Expired / terminated (in shares) | shares	0
Number of options, Options outstanding, end of year (in shares) | shares	963
Number of options, Options exercisable, end of period (in shares) | shares	932
Number of options, Options expected to vest, end of period (in shares) | shares	25
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	$ 5.40
Weighted average exercise price, Granted (in dollars per share) | $ / shares	0
Weighted average exercise price, Exercised (in dollars per share) | $ / shares	6.60
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	5.35
Weighted average exercise price, Options exercisable, end of period (in dollars per share) | $ / shares	5.38
Weighted average exercise price, Options expected to vest, end of period (in dollars per share) | $ / shares	$ 4.75
Weighted average remaining contractual life, Options outstanding, end of period	2 years 11 days
Weighted average remaining contractual life, Options exercisable, end of period	2 years 11 days
Weighted average remaining contractual life, Options expected to vest, end of period	1 year 8 months 23 days
Aggregate intrinsic value, Options outstanding, end of period | $	$ 0
Aggregate intrinsic value, Options exercisable, end of period | $	0
Aggregate intrinsic value, Options expected to vest, end of period | $	$ 451

Stockholders' Equity - Reported

Stockholders' Equity - Reported Share-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 3,447	$ 2,220
Cost of products sold and services delivered
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	79	100
Sales, general and administrative expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2,028	1,390
Research and development expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,340	$ 730

Line of Credit - Additional Inf

Line of Credit - Additional Information (Detail) - Line of Credit	3 Months Ended
	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Total availability under line of credit agreement	$ 10,000,000
Line of credit borrowings	0	$ 0
Letters of credit outstanding amount	2,700,000
Available borrowing under letter of credit	$ 7,300,000
Varying interest on line of credit agreement	LIBOR plus 1.5% or Prime less 0.75%
Maturity date of line of credit	Jul. 31, 2017
Maximum ratio of total liabilities to tangible net worth	1
Minimum required fixed coverage charge ratio	1.25
Trailing period used for calculating ratios	12 months
Company's leverage ratio	1.14
Fixed coverage charge ratio	2.45
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread plus (minus) on variable interest rate	1.50%
Prime Rate
Debt Instrument [Line Items]
Basis spread plus (minus) on variable interest rate	(0.75%)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Mar. 31, 2017USD ($)Lawsuit	Apr. 30, 2016USD ($)	Sep. 30, 2011Lawsuit
Commitments and Contingencies Disclosure [Abstract]
Number of lawsuits against Company | Lawsuit	8		55
Surety Bond
Loss Contingencies [Line Items]
Bonds outstanding	$ 5.7
Expiring in 2018 | Surety Bond
Loss Contingencies [Line Items]
Bonds outstanding	1
Expiring in 2020 | Surety Bond
Loss Contingencies [Line Items]
Bonds outstanding	2.4
Expiring in 2021 | Surety Bond
Loss Contingencies [Line Items]
Bonds outstanding	2.3
Line of Credit
Loss Contingencies [Line Items]
Letters of credit outstanding amount	$ 2.7
Paris, France | International Chamber of Commerce
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss		$ 0.6

Commitments and Contingencies53

Commitments and Contingencies - Information Regarding the Company's Insurance Coverage (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
2,009
Product Liability Contingency [Line Items]
Insurance Coverage	$ 10
Deductible Amount	1
Remaining Insurance Coverage	10
2,010
Product Liability Contingency [Line Items]
Insurance Coverage	10
Deductible Amount	1
Remaining Insurance Coverage	10
2,011
Product Liability Contingency [Line Items]
Insurance Coverage	10
Deductible Amount	1
Remaining Insurance Coverage	10
Jan - Jun 2012
Product Liability Contingency [Line Items]
Insurance Coverage	7
Deductible Amount	1
Remaining Insurance Coverage	7
Jul - Dec 2012
Product Liability Contingency [Line Items]
Insurance Coverage	12
Deductible Amount	1
Remaining Insurance Coverage	12
2,013
Product Liability Contingency [Line Items]
Insurance Coverage	12
Deductible Amount	1
Remaining Insurance Coverage	12
2,014
Product Liability Contingency [Line Items]
Insurance Coverage	11
Deductible Amount	4
Remaining Insurance Coverage	11
2,015
Product Liability Contingency [Line Items]
Insurance Coverage	10
Deductible Amount	5
Remaining Insurance Coverage	10
2,016
Product Liability Contingency [Line Items]
Insurance Coverage	10
Deductible Amount	5
Remaining Insurance Coverage	10
2,017
Product Liability Contingency [Line Items]
Insurance Coverage	10
Deductible Amount	5
Remaining Insurance Coverage	$ 10

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Officer - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Consulting
Related Party Transaction [Line Items]
Transaction expenses incurred by parent company	$ 53,000	$ 20,000
Outstanding payables due to related party	8,000		$ 12,000
Software Licensing and Subscription
Related Party Transaction [Line Items]
Quarterly software licensing fee	100,000		100,000
Deferred costs related to annual software subscription	$ 20,200		$ 50,500

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Employee deferrals deemed vested percentage upon contribution	100.00%
Company's contributions to the plan	$ 700	$ 500
Company's expected contributions to the plan	$ 12
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
	Mar. 31, 2017USD ($)Segment	Mar. 31, 2016USD ($)
Segment Reporting [Abstract]
Number of reportable segments of company | Segment	2
Segment Reporting Information [Line Items]
Product sales	$ 67,491	$ 50,675
Service revenue	11,751	4,855
Net sales	79,242	55,530
Cost of products sold	27,072	17,455
Cost of services delivered	3,500	1,173
Gross margin	48,670	36,902
Sales, general and administrative	30,857	24,833
Research and development	12,463	6,927
Income from operations	5,350	5,142
Purchase of property and equipment	2,343	1,280
Purchase of intangible assets	95	98
Purchase of property and equipment and intangible assets in connection with business acquisition	6,479	0
Depreciation and amortization	1,604	901
Operating Segments | TASER Weapons
Segment Reporting Information [Line Items]
Product sales	57,671	45,834
Service revenue	0	0
Net sales	57,671	45,834
Cost of products sold	18,026	14,077
Cost of services delivered	0	0
Gross margin	39,645	31,757
Sales, general and administrative	17,216	15,272
Research and development	2,212	1,120
Income from operations	20,217	15,365
Purchase of property and equipment	933	1,071
Purchase of intangible assets	64	62
Purchase of property and equipment and intangible assets in connection with business acquisition	0	0
Depreciation and amortization	841	572
Operating Segments | Software and Sensors
Segment Reporting Information [Line Items]
Product sales	9,820	4,841
Service revenue	11,751	4,855
Net sales	21,571	9,696
Cost of products sold	9,046	3,378
Cost of services delivered	3,500	1,173
Gross margin	9,025	5,145
Sales, general and administrative	13,641	9,561
Research and development	10,251	5,807
Income from operations	(14,867)	(10,223)
Purchase of property and equipment	1,410	209
Purchase of intangible assets	31	36
Purchase of property and equipment and intangible assets in connection with business acquisition	6,479	0
Depreciation and amortization	$ 763	$ 329

Business Acquisitions (Details)

Business Acquisitions (Details)	Feb. 08, 2017USD ($)	Dec. 30, 2016USD ($)employee	Mar. 31, 2017USD ($)
Axon Artificial Intelligence
Business Acquisition [Line Items]
Number of researchers and software engineers | employee		7
Purchase price		$ 6,825,000
Cash consideration		3,500,000
Contingent consideration		$ 3,300,000
Earn-out, amounts earned			$ 0
Intangible assets, weighted average useful life		5 years
Dextro, Inc.
Business Acquisition [Line Items]
Purchase price	$ 7,487,000
Contingent consideration	$ 1,000,000
Earn-out, amounts earned			$ 0
Intangible assets, weighted average useful life	3 years 4 months 24 days
Additional earn-out provisions and compensation adjustments	$ 1,400,000
Acquisition transaction costs	$ 200,000

Business Acquisitions - Major C

Business Acquisitions - Major Classes of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Feb. 08, 2017	Dec. 31, 2016	Dec. 30, 2016
Business Acquisition [Line Items]
Goodwill	$ 13,001		$ 10,442
Axon Artificial Intelligence
Business Acquisition [Line Items]
Developed technology				$ 5,210
Goodwill				1,615
Total purchase price				$ 6,825
Dextro, Inc.
Business Acquisition [Line Items]
Accounts receivable		$ 12
Property and equipment		46
Developed technology		5,800
Goodwill		2,546
Deferred income tax liabilities, net		(917)
Total purchase price		$ 7,487