Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 28, 2014 | Jun. 28, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'TASER INTERNATIONAL INC | ' | ' |
Entity Central Index Key | '0001069183 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 51,872,391 | ' |
Entity Public Float | ' | ' | $418.50 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $42,271 | $36,127 |
Short-term investments | 9,101 | 1,681 |
Accounts and notes receivable, net of allowance of $200 as of December 31, 2013 and 2012, respectively | 22,488 | 18,101 |
Inventory, net | 11,109 | 10,993 |
Prepaid expenses and other current assets | 5,397 | 2,755 |
Deferred income tax assets, net | 7,101 | 9,396 |
Total current assets | 97,467 | 79,053 |
Property and equipment, net | 19,043 | 21,952 |
Deferred income tax assets, net | 13,679 | 11,606 |
Intangible assets, net | 3,317 | 3,317 |
Goodwill, net | 2,235 | 0 |
Long-term investments | 12,023 | ' |
Other assets | 618 | 308 |
Total assets | 148,382 | 116,236 |
Current liabilities: | ' | ' |
Accounts payable | 6,221 | 6,223 |
Accrued liabilities | 8,840 | 7,065 |
Current portion of deferred revenue | 6,878 | 4,287 |
Customer deposits | 1,154 | 500 |
Current portion of capital lease payable | 36 | 34 |
Total current liabilities | 23,129 | 18,109 |
Deferred revenue, net of current portion | 13,341 | 7,836 |
Liability for unrecognized tax benefits | 3,122 | 2,903 |
Long-term deferred compensation | 376 | ' |
Long-term portion of capital lease payable | 67 | 103 |
Total liabilities | 40,035 | 28,951 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of December 31, 2013 and 2012 | ' | ' |
Common stock, $0.00001 par value; 200,000,000 shares authorized; 52,725,247 and 52,770,392 shares issued and outstanding as of December 31, 2013 and 2012, respectively | 1 | 1 |
Additional paid-in capital | 139,424 | 111,661 |
Treasury stock at cost, 16,412,755 and 13,363,789 shares as of December 31, 2013 and 2012, respectively | -92,203 | -67,203 |
Retained earnings | 61,127 | 42,883 |
Accumulated other comprehensive loss | -2 | -57 |
Total stockholders' equity | 108,347 | 87,285 |
Total liabilities and stockholders' equity | $148,382 | $116,236 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance on accounts receivable | $200 | $200 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 52,725,247 | 52,770,392 |
Common stock, shares outstanding | 52,725,247 | 52,770,392 |
Treasury stock, shares | 16,412,755 | 13,363,789 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $137,831 | $114,753 | $90,028 |
Cost of products sold and services delivered | 51,988 | 47,038 | 41,753 |
Excess inventory charges | ' | ' | 3,746 |
Gross margin | 85,843 | 67,715 | 44,529 |
Operating expenses: | ' | ' | ' |
Sales, general and administrative | 46,584 | 39,086 | 38,001 |
Research and development | 9,888 | 8,139 | 9,989 |
Litigation judgments (recoveries) | 1,450 | -2,200 | 3,301 |
Loss on impairment | ' | ' | 1,354 |
(Gain) loss on write down / disposal of property and equipment, net | -27 | 161 | 2,800 |
Total operating expenses | 57,895 | 45,186 | 55,445 |
Income (loss) from operations | 27,948 | 22,529 | -10,916 |
Interest and other income, net | 86 | 83 | 1,287 |
Income (loss) before provision (benefit) for income taxes | 28,034 | 22,612 | -9,629 |
Provision (benefit) for income taxes | 9,790 | 7,874 | -2,589 |
Net income (loss) | 18,244 | 14,738 | -7,040 |
Net income (loss) per common and common equivalent shares: | ' | ' | ' |
Basic | $0.35 | $0.27 | ($0.12) |
Diluted | $0.34 | $0.27 | ($0.12) |
Weighted average number of common and common equivalent shares outstanding: | ' | ' | ' |
Basic | 51,880 | 53,827 | 59,436 |
Diluted | 54,152 | 54,723 | 59,436 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' |
Net income (loss) | 18,244 | 14,738 | -7,040 |
Foreign currency translation adjustments | 55 | 24 | -45 |
Comprehensive income (loss) | $18,299 | $14,762 | ($7,085) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 31, 2010 | $117,564 | $1 | $97,122 | ($14,708) | ($36) | $35,185 |
Beginning Balance, Shares at Dec. 31, 2010 | ' | 62,621,268 | ' | 2,091,600 | ' | ' |
Stock options exercised and RSUs vested | 1,427 | ' | 1,427 | ' | ' | ' |
Stock options exercised and RSUs vested, Shares | ' | 539,923 | ' | ' | ' | ' |
Stock-based compensation | 3,038 | ' | 3,038 | ' | ' | ' |
Excess tax benefit from stock-based compensation | 10 | ' | 10 | ' | ' | ' |
Purchase of treasury stock | -32,499 | ' | ' | -32,499 | ' | ' |
Purchase of treasury stock, Shares | 7,500,000 | -7,464,583 | ' | 7,464,583 | ' | ' |
Net income (loss) | -7,040 | ' | ' | ' | ' | -7,040 |
Foreign currency translation adjustments | -45 | ' | ' | ' | -45 | ' |
Ending Balance at Dec. 31, 2011 | 82,455 | 1 | 101,597 | -47,207 | -81 | 28,145 |
Ending Balance, Shares at Dec. 31, 2011 | ' | 55,696,608 | ' | 9,556,183 | ' | ' |
Stock options exercised and RSUs vested | 1,929 | ' | 1,929 | ' | ' | ' |
Stock options exercised and RSUs vested, Shares | ' | 881,390 | ' | ' | ' | ' |
Stock-based compensation | 3,422 | ' | 3,422 | ' | ' | ' |
Excess tax benefit from stock-based compensation | 4,713 | ' | 4,713 | ' | ' | ' |
Purchase of treasury stock | -19,996 | ' | ' | -19,996 | ' | ' |
Purchase of treasury stock, Shares | ' | -3,807,606 | ' | 3,807,606 | ' | ' |
Net income (loss) | 14,738 | ' | ' | ' | ' | 14,738 |
Foreign currency translation adjustments | 24 | ' | ' | ' | 24 | ' |
Ending Balance at Dec. 31, 2012 | 87,285 | 1 | 111,661 | -67,203 | -57 | 42,883 |
Ending Balance, Shares at Dec. 31, 2012 | ' | 52,770,392 | ' | 13,363,789 | ' | ' |
Stock options exercised and RSUs vested, net of withholdings | 15,048 | ' | 15,048 | ' | ' | ' |
Stock options exercised and RSUs vested, net of withholdings, Shares | ' | 2,896,072 | ' | ' | ' | ' |
Stock-based compensation | 4,340 | ' | 4,340 | ' | ' | ' |
Excess tax benefit from stock-based compensation | 6,797 | ' | 6,797 | ' | ' | ' |
Purchase of treasury stock | -25,000 | ' | ' | -25,000 | ' | ' |
Purchase of treasury stock, Shares | ' | -3,048,966 | ' | 3,048,966 | ' | ' |
Shares issued related to business acquisition | 1,578 | ' | 1,578 | ' | ' | ' |
Shares issued related to business acquisition, Shares | ' | 107,749 | ' | ' | ' | ' |
Net income (loss) | 18,244 | ' | ' | ' | ' | 18,244 |
Foreign currency translation adjustments | 55 | ' | ' | ' | 55 | ' |
Ending Balance at Dec. 31, 2013 | $108,347 | $1 | $139,424 | ($92,203) | ($2) | $61,127 |
Ending Balance, Shares at Dec. 31, 2013 | ' | 52,725,247 | ' | 16,412,755 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $18,244 | $14,738 | ($7,040) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 5,131 | 6,519 | 8,097 |
Loss on impairment | ' | ' | 1,354 |
(Gain) loss on write down / disposal of property and equipment, net | -27 | 161 | 2,800 |
Loss on disposal of intangibles | 168 | 195 | 54 |
Bond premium amortization | 289 | 29 | 371 |
Provision (recovery) for doubtful accounts | 24 | -242 | 296 |
Provision for excess and obsolete inventory | 595 | 554 | 4,610 |
Provision for warranty | 1,001 | 527 | 310 |
Stock-based compensation expense | 4,340 | 3,422 | 3,038 |
Deferred income taxes | 621 | 1,683 | -2,481 |
Provision for unrecognized tax benefits | 219 | 920 | -299 |
Excess tax benefit from stock-based compensation | -6,797 | -4,713 | -10 |
Change in assets and liabilities: | ' | ' | ' |
Accounts and notes receivable | -4,411 | -6,080 | 1,463 |
Inventory | -711 | -62 | 1,328 |
Prepaid expenses and other current assets | -569 | 177 | -374 |
Accounts payable and accrued liabilities | 5,559 | 4,433 | 3,412 |
Deferred revenue | 8,096 | 4,169 | 296 |
Customer deposits | 654 | 87 | 41 |
Net cash provided by operating activities | 32,426 | 26,517 | 17,266 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of investments | -29,112 | -6,242 | -11,479 |
Proceeds from call / maturity of investments | 9,380 | 9,640 | 6,000 |
Purchases of property and equipment | -1,783 | -1,334 | -1,854 |
Proceeds from disposal of fixed assets | 34 | 46 | 149 |
Purchases of intangible assets | -323 | -429 | -413 |
Business acquisition, net of cash acquired | -1,258 | ' | ' |
Net cash (used in) provided by investing activities | -23,062 | 1,681 | -7,597 |
Cash flows from financing activities: | ' | ' | ' |
Repurchase of common stock | -25,000 | -19,996 | -32,499 |
Proceeds from options exercised | 15,357 | 1,929 | 1,427 |
Payroll tax payments for net-settled stock awards | -309 | ' | ' |
Payments on capital lease obligation | -34 | -9 | ' |
Excess tax benefit from stock-based compensation | 6,797 | 4,713 | 10 |
Net cash used in financing activities | -3,189 | -13,363 | -31,062 |
Effect of exchange rate changes on cash and cash equivalents | -31 | -9 | 10 |
Net increase (decrease) in cash and cash equivalents | 6,144 | 14,826 | -21,383 |
Cash and cash equivalents, beginning of year | 36,127 | 21,301 | 42,684 |
Cash and cash equivalents, end of year | $42,271 | $36,127 | $21,301 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||||||
1. Organization and Summary of Significant Accounting Policies | |||||||||||||||||||||||||
TASER International, Inc. (“TASER” or the “Company”) is a developer and manufacturer of advanced conducted electrical weapons (“CEWs”) designed for use in law enforcement, federal, military, corrections, private security and 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 division facilities are located in Santa Barbara, California, and Bellevue, Washington. | |||||||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries, including TASER International Europe SE (“TASER Europe”). TASER Europe was established in 2009 to facilitate sales and provide customer service to our customers in the European region. All material intercompany accounts, transactions, and profits have been eliminated. | |||||||||||||||||||||||||
a. Basis of Presentation and Use of Estimates | |||||||||||||||||||||||||
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. of America (“U.S. GAAP”). The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions in these consolidated financial statements include: | |||||||||||||||||||||||||
• | product warranty reserves, | ||||||||||||||||||||||||
• | inventory valuation reserves, | ||||||||||||||||||||||||
• | revenue recognition allocated in multiple-deliverable revenue recognition, | ||||||||||||||||||||||||
• | valuation of goodwill, intangibles and long-lived assets, | ||||||||||||||||||||||||
• | recognition, measurement and valuation of current and deferred income taxes, | ||||||||||||||||||||||||
• | fair value of stock awards issued, the estimated vesting period for performance-based stock awards and forfeiture rates, and | ||||||||||||||||||||||||
• | recognition and measurement of contingencies and accrued litigation expense. | ||||||||||||||||||||||||
Actual results could differ materially from those estimates. | |||||||||||||||||||||||||
b. Cash, Cash Equivalents and Investments | |||||||||||||||||||||||||
Cash, cash equivalents and investments include cash, money market funds, certificates of deposit, state and municipal obligations and corporate bonds. The Company places its cash and cash equivalents with high quality financial institutions. Balances with these institutions regularly exceed FDIC insured limits; however, to manage the related credit exposure, the Company continually monitors the credit worthiness of the financial institutions where it has deposits. | |||||||||||||||||||||||||
Cash and cash equivalents include funds on hand and highly liquid investments purchased with initial maturity of three months or less. Short-term investments include securities with an expected maturity date within one year of the balance sheet date that do not meet the definition of a cash equivalent, and long-term investments are securities with an expected maturity date greater than one year. Based on management’s intent and ability, the Company’s investments are classified as held to maturity investments and are recorded at amortized cost. Held-to-maturity investments are reviewed quarterly for impairment to determine if other-than-temporary declines in the carrying value have occurred for any individual investment. Other-than-temporary declines in the value of held-to-maturity investments are recorded as expense in the period the determination is made. | |||||||||||||||||||||||||
c. Inventory | |||||||||||||||||||||||||
Inventories are stated at the lower of cost or market. 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 potentially excess, obsolete or slow-moving inventories to their net realizable value. These provisions are based on management’s best estimate after considering historical demand, projected future demand, inventory purchase commitments, industry and market trends and conditions and other factors. Management evaluates inventory costs for abnormal costs due to excess production capacity and treats such costs as period costs. | |||||||||||||||||||||||||
d. Property and Equipment | |||||||||||||||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Additions and improvements are capitalized, while ordinary maintenance and repair expenditures are charged to expense as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. | |||||||||||||||||||||||||
e. Capitalized Software Development Costs | |||||||||||||||||||||||||
The Company capitalizes qualifying computer software costs incurred during the application development stage for internally developed software. Additionally, the Company capitalizes qualifying costs incurred for upgrades and enhancements to existing software that result in additional functionality. Costs related to preliminary project planning activities, post-implementation activities, maintenance and minor modifications are expensed as incurred. Internal-use software is amortized on a straight line basis over its estimated useful life. There were no software development costs capitalized for the years ending December 31, 2013, 2012 or 2011. | |||||||||||||||||||||||||
Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. During 2011, the Company recognized an impairment charge related to the development of the TASER Protector Platform that included $0.8 million of capitalized software development costs, following the Company’s decision to abandon this product line. | |||||||||||||||||||||||||
Amortization of capitalized software development costs related to the Company’s software as a service (“SaaS”) product, EVIDENCE.com, was $0.6 million, $1.2 million and $1.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. As of December, 31, 2013, no capitalized software development costs remain to be amortized. | |||||||||||||||||||||||||
f. Valuation of Goodwill, Intangibles and Long-lived Assets | |||||||||||||||||||||||||
In the fourth quarter of 2013, the Company recorded goodwill related to the Familiar business acquisition. The recoverability of goodwill will be evaluated and tested for impairment at least annually during the fourth quarter or more often, if and when circumstances indicate that goodwill may not be recoverable. Finite-lived intangible assets and other long-lived assets are amortized over their useful lives. Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and intangible assets may warrant revision or that the remaining balance of these assets, including intangible assets with indefinite lives, may not be recoverable. | |||||||||||||||||||||||||
Circumstances that might indicate long-lived assets might not be recoverable 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 our products are branded and marketed. When performing a 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. | |||||||||||||||||||||||||
During 2011, the Company recognized an impairment charge of $1.4 million relative to its Protector product line following the Company’s decision to abandon ongoing operations for this product line. Further, the Company recognized a charge of $2.8 million during 2011, relative to the write-down / disposal of property and equipment. This charge relates to the disposal of surplus equipment for EVIDENCE.com operations, and impairment of production tooling related to the first generation AXON video product line and the TASER X3 CEW product line. No impairment losses were recorded in 2013 or 2012. | |||||||||||||||||||||||||
g. Customer Deposits | |||||||||||||||||||||||||
The Company requires deposits in advance of shipment for certain customer sales orders. Customer deposits are recorded as a current liability in the accompanying consolidated balance sheets. | |||||||||||||||||||||||||
h. Revenue Recognition, Deferred Revenue and Accounts and Notes Receivable | |||||||||||||||||||||||||
The Company derives revenue from two primary sources: (1) the sale of physical products, including our CEWs, AXON cameras, corresponding extended warranties, and related accessories such as cartridges and batteries, and (2) subscription to our EVIDENCE.com digital evidence management 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 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. 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 Company offers customers the right to purchase extended warranties that include additional services and coverage beyond the 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 are 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. AXON equipment has stand-alone value and represents a deliverable that is provided to the customer at the time of sale, while EVIDENCE.com services are provided over the specified term of the contract. 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. In certain circumstances, not all requirements are met for the recognition of revenue relative to equipment sold in conjunction with EVIDENCE.com at the time the equipment is provided to customers. In such circumstances, based on limitations associated with the consideration, the revenue may be recognized ratably over the specified term of the contract, or when all conditions for revenue recognition are met, if sooner. | |||||||||||||||||||||||||
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 purchase as deferred revenue until all revenue recognition criteria are met, which is generally at the end of the contract period. | |||||||||||||||||||||||||
Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis. Training revenue is recorded as the service is provided. | |||||||||||||||||||||||||
Deferred revenue consists of billings and/or 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 7 for further discussion of 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. Uncollectable 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 estimate and is based on their 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. | |||||||||||||||||||||||||
The Company may, from time to time, enter into agreements with its customers to finance their purchases with a note receivable that may range in terms up to five years. Sales are recorded at the fair value of the note, which is generally sold and assigned to a third-party financing company. The terms of the assignments are such that the Company expects to receive payment within 30 days of the original sale. The assignments are non-recourse and the Company has no obligations or continuing involvement with the notes receivable. Prior to entering into an assignment, the Company evaluates the credit quality and financial condition of the third-party financing company. As of December 31, 2013, there was no balance in accounts and notes receivable related to such arrangements. As of December 31, 2012, there was a balance of $3.1 million, which was collected subsequent to year end, included in accounts and notes receivable related to such arrangements. The Company did not record any interest income on notes receivable due to minimal holding periods, nor has the Company recognized gains or losses upon the assignment of the notes. | |||||||||||||||||||||||||
i. Cost of Products Sold and Services Provided | |||||||||||||||||||||||||
Cost of products sold represents manufacturing costs, consisting of materials, labor and overhead related to finished goods and components. Shipping costs incurred related to product delivery are also included in cost of products sold. Cost of services provided includes third party cloud services, and software maintenance costs, including personnel costs, associated with providing EVIDENCE.com. | |||||||||||||||||||||||||
j. Advertising Costs | |||||||||||||||||||||||||
The Company expenses advertising costs in the period in which they are incurred. The Company incurred advertising costs of $0.2 million, $0.2 million and $0.3 million in the years ended December 31, 2013, 2012 and 2011, respectively. Advertising costs are included in sales, general and administrative expenses in the accompanying statements of operations. | |||||||||||||||||||||||||
k. Standard Warranties | |||||||||||||||||||||||||
The Company warrants its CEWs, StrikeLight, AXON cameras and ETMs 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 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 condensed consolidated balance sheet. For the twelve months ended December 31, 2013, the warranty expense increased compared to the same period in the prior year primarily due to a specific reserve for a production run of Smart cartridges that had a higher than expected failure rate. During the third quarter of 2013, the Company recorded an increase in estimate related to the AXON flex on-officer camera, introduced in 2012, based on the analysis of actual return data. The X26P and AXON body were launched during 2013, which attributed to an increase in warranty expense because return estimates are less predictable than for product lines that have been in existence for more than one year. Additionally, during 2013 the Company’s product mix included products with a higher warranty cost as a percent of sales. | |||||||||||||||||||||||||
Changes in the Company’s estimated product warranty liabilities are as follows (in thousands): | |||||||||||||||||||||||||
Warranty Costs | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Balance, January 1 | $ | 484 | $ | 427 | $ | 646 | |||||||||||||||||||
Utilization of accrual | (530 | ) | (470 | ) | (529 | ) | |||||||||||||||||||
Warranty expense | 1,001 | 527 | 310 | ||||||||||||||||||||||
Balance, December 31 | $ | 955 | $ | 484 | $ | 427 | |||||||||||||||||||
l. Research and Development Expenses | |||||||||||||||||||||||||
The Company expenses as incurred research and development costs that do not meet the qualifications to be capitalized. The Company incurred research and development expense of $9.9 million, $8.1 million and $10.0 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
m. Income Taxes | |||||||||||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced through the establishment of a valuation allowance if, based upon available evidence, it is determined that it is more likely than not that the deferred tax assets will not be realized. | |||||||||||||||||||||||||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Management also assesses whether uncertain tax positions, as filed, could result in the recognition of a liability for possible interest and penalties. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Refer to Note 10 for additional information regarding the change in unrecognized tax benefits. | |||||||||||||||||||||||||
n. Concentration of Credit Risk and Major Customers / Suppliers | |||||||||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist of accounts and notes receivable and cash. 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 losses. Uncollectable accounts are written off when deemed uncollectible, and accounts receivable are presented net of an allowance for doubtful accounts, which totaled $0.2 million as of December 31, 2013 and 2012. Historically, the Company has experienced a low level of write-offs related to doubtful accounts. During the year ended 2011, the Company recorded a reserve for bad debt expense of $0.3 million related to an account receivable from a distributor. Due to a modification of the business relationship between the Company and the distributor, the Company determined the receivable had been impaired and the entire balance should be reserved. During 2012, the balance on the account was collected. As the cash was collected, the Company reversed the allowance, resulting in a net credit to bad debt expense for the year ended December 31, 2012. | |||||||||||||||||||||||||
We maintain the majority of our cash, cash equivalents and investment accounts at three depository institutions. As of December 31, 2013, our aggregate balances in such accounts were $63.4 million. The Company’s balances with these institutions regularly exceed FDIC insured limits; however, to manage the related credit exposure, we continually monitor the credit worthiness of the financial institutions where we have deposits. | |||||||||||||||||||||||||
The Company sells its products primarily through a network of unaffiliated distributors. The Company also reserves the right to sell directly to the end user to secure the customer’s account. In 2013, 2012 and 2011 one distributor represented 12.2%, 12.8% and 12.7%, respectively, of total net sales with no other customers exceeding 10%. | |||||||||||||||||||||||||
At December 31, 2013, the Company had a trade receivable from one unaffiliated customer comprising 17.4% of the aggregate accounts receivable balance. At December 31, 2012, the Company had a trade note receivable from one unaffiliated customer comprising 17.2% of the aggregate accounts receivable balance. These customers are unaffiliated distributors of the Company’s products. | |||||||||||||||||||||||||
The Company currently purchases finished circuit boards and injection-molded plastic components from suppliers located in the U.S. Although the Company currently obtains many of these components from single source suppliers, the Company owns the injection molded component tooling used in their production. As a result, management believes it could obtain alternative suppliers in most cases without incurring significant production delays. The Company also purchases small, machined parts from a vendor in Taiwan, custom cartridge assemblies from a proprietary vendor in the U.S., and electronic components from a variety of foreign and domestic distributors. Management believes that there are readily available alternative suppliers in most cases who can consistently meet its needs for these components. The Company acquires most of its components on a purchase order basis and does not have long-term contracts with suppliers. | |||||||||||||||||||||||||
o. 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 our own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||||||||
The Company has cash equivalents and investments, which at December 31, 2013 and 2012, 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 December 31, 2013 is $0.4 million 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 and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet. | |||||||||||||||||||||||||
p. Segment and Geographic Information | |||||||||||||||||||||||||
The Company is comprised of two reportable segments: the sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the video business which includes the TASER Cam, AXON Video products and EVIDENCE.com (the “EVIDENCE.com & Video” segment). 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 17. | |||||||||||||||||||||||||
For the three years ended December 31, 2013, 2012 and 2011, net sales by geographic area were as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
United States | $ | 115,674 | 84 | % | $ | 93,427 | 81 | % | $ | 72,261 | 80 | % | |||||||||||||
Other Countries | 22,157 | 16 | 21,326 | 19 | 17,767 | 20 | |||||||||||||||||||
Total | $ | 137,831 | 100 | % | $ | 114,753 | 100 | % | $ | 90,028 | 100 | % | |||||||||||||
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 years ended December 31, 2013, 2012 and 2011, no individual country outside the U.S. represented more than 10% of net sales. Substantially all of the Company’s assets are located in the U.S. | |||||||||||||||||||||||||
q. Stock-Based Compensation | |||||||||||||||||||||||||
The Company calculates the fair value of stock options using the Black-Scholes-Merton option pricing valuation model, which incorporates various assumptions including volatility, expected life and risk-free interest rates. The fair value of restricted stock units is estimated as the closing price of our common stock on the date of grant. | |||||||||||||||||||||||||
No options were awarded during the years ended December 31, 2013 or 2012. The assumptions used for the year ended December 31, 2011 and the resulting estimates of weighted-average fair value per share of options granted during that period, excluding the effects of a prior exchange program, are as follows: | |||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Weighted average / range of volatility | 56 | % | |||||||||||||||||||||||
Risk-free interest rate | 1.6 | ||||||||||||||||||||||||
Dividend rate | — | ||||||||||||||||||||||||
Expected life of options | 4.5 years | ||||||||||||||||||||||||
Weighted average fair value of options granted | $ | 2.16 | |||||||||||||||||||||||
The expected life of the options represents the estimated period of time from grant date until exercise and is based on historical experience of similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Expected stock price volatility is based on a combination of historical volatility of the Company’s stock and the one-year implied volatility of its publicly traded options for the related vesting periods. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The Company has not paid dividends in the past and does not plan to pay any dividends in the near future. | |||||||||||||||||||||||||
The estimated fair value of stock-based compensation awards is amortized to expense on a straight-line basis over the requisite service periods. As stock-based compensation expense recognized is based on awards ultimately expected to vest, it is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company’s forfeiture rate was calculated based on its historical experience of awards which ultimately vested. See Note 12 for further discussion of the Company’s stock-based compensation. | |||||||||||||||||||||||||
r. Income (Loss) per Common Share | |||||||||||||||||||||||||
Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods presented. Diluted income per share reflects the potential dilution that would occur if outstanding stock options were exercised utilizing the treasury stock method. The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||
Net income (loss) | $ | 18,244 | $ | 14,738 | $ | (7,040 | ) | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||||
Weighted average shares outstanding—basic | 51,880 | 53,827 | 59,436 | ||||||||||||||||||||||
Dilutive effect of stock-based awards | 2,272 | 896 | — | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 54,152 | 54,723 | 59,436 | ||||||||||||||||||||||
Anti-dilutive stock-based awards excluded (1) | 507 | 3,205 | 6,972 | ||||||||||||||||||||||
Net income (loss) per common share: | |||||||||||||||||||||||||
Basic | $ | 0.35 | $ | 0.27 | $ | (0.12 | ) | ||||||||||||||||||
Diluted | 0.34 | 0.27 | (0.12 | ) | |||||||||||||||||||||
-1 | For the year ended December 31, 2011, all outstanding awards were excluded from the computation of diluted net loss per common share because inclusion would be anti-dilutive, reducing the net loss per share. These figures also include performance-based options and RSUs for which the performance criteria have not been met. | ||||||||||||||||||||||||
s. Recently Issued Accounting Guidance | |||||||||||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) to standardize the balance sheet presentation of unrecognized tax benefits. This update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The new guidance is effective for fiscal years beginning after December 15, 2013, and early adoption is allowed. The adoption of this guidance will result in a reclassification on the Company’s consolidated balance sheet. Had the company adopted this guidance as of December 31, 2013, the balance of our long-term deferred tax asset would have decreased by approximately $1.5 million and the liability for unrecognized tax benefits would have decreased by the same amount. | |||||||||||||||||||||||||
In February 2013, the FASB issued an ASU requiring entities to provide information about the amounts reclassified out of accumulated other comprehensive income (loss) (“OCI”) by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated OCI by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The new guidance is effective for fiscal years beginning after December 15, 2012. The amendments do not change the current requirements for reporting net income or OCI in financial statements and our adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||||
In July 2012, the FASB issued an ASU to simplify the impairment testing for indefinite-lived intangibles by allowing an entity to first assess qualitative factors, considering the totality of events and circumstances, to determine that it is more likely than not that the carrying amount of a reporting unit is less than its fair value. If it is not, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test. The new guidance was effective for annual and interim impairment tests for fiscal years beginning after September 15, 2012. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||||
t. Foreign Currency Translation | |||||||||||||||||||||||||
The Company’s foreign subsidiary uses the local currency as its functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated OCI on the consolidated balance sheets. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | ' | ||||||||||||||||||||||||||||||||
2. Cash, Cash Equivalents and Investments | |||||||||||||||||||||||||||||||||
The following is a summary of cash, cash equivalents and held-to-maturity investments by type at December 31 (in thousands): | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||
Cash and money market funds | $ | 42,226 | $ | — | $ | — | $ | 42,226 | $ | 36,127 | $ | — | $ | — | $ | 36,127 | |||||||||||||||||
State and municipal obligations | 10,807 | 14 | — | 10,821 | — | — | — | — | |||||||||||||||||||||||||
Corporate bonds | 7,743 | 2 | (14 | ) | 7,731 | 1 | — | — | 1 | ||||||||||||||||||||||||
Certificate of deposit | 2,619 | — | — | 2,619 | 1,680 | — | (1 | ) | 1,679 | ||||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 63,395 | $ | 16 | $ | (14 | ) | $ | 63,397 | $ | 37,808 | $ | — | $ | (1 | ) | $ | 37,807 | |||||||||||||||
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 December 31, 2013. None of Company’s investments have been in an unrealized loss position for more than one year | |||||||||||||||||||||||||||||||||
The following table summarizes the amortized cost and fair value of the short-term and long-term investments held by the Company at December 31, 2013 by contractual maturity (in thousands): | |||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||
Due in less than one year | $ | 9,101 | $ | 9,103 | |||||||||||||||||||||||||||||
Due after one year, through two years | 12,023 | 12,022 | |||||||||||||||||||||||||||||||
Total short-term and long-term investments | $ | 21,124 | $ | 21,125 | |||||||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||||||||||
During the year ended December 31, 2013, the Company changed how it categorizes certain instruments within the fair value hierarchy. Municipal bonds and certificates of deposits are now reported as valued using Level 2 valuation techniques, due to less than active trading for these instruments. Money market funds and corporate bonds are valued using Level 1 techniques. In prior periods, the Company considered all instruments as valued using Level 1 valuation techniques. | |||||||||||||||||||||||||||||||||
The following table presents information about the Company’s investments that are measured at fair value as of December 31, 2013, and indicates the fair value hierarchy of the valuation (in thousands): | |||||||||||||||||||||||||||||||||
Amortized Cost | Quoted Prices | Siginificant | Significant | Total Fair Value | |||||||||||||||||||||||||||||
in Active | Other | Unbservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||||||
Cash | $ | 37,196 | $ | 37,196 | $ | — | $ | — | $ | 37,196 | |||||||||||||||||||||||
Money market funds | 5,030 | 5,030 | — | — | 5,030 | ||||||||||||||||||||||||||||
Certificates of deposit | 2,619 | — | 2,619 | — | 2,619 | ||||||||||||||||||||||||||||
Corporate bonds | 7,743 | 7,732 | — | — | 7,732 | ||||||||||||||||||||||||||||
State and municipal obligations | 10,807 | — | 10,820 | — | 10,820 | ||||||||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 63,395 | $ | 49,958 | $ | 13,439 | $ | — | $ | 63,397 | |||||||||||||||||||||||
Inventory
Inventory | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
3. Inventory | |||||||||
Inventories consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 7,376 | $ | 9,690 | |||||
Work-in-process | 44 | 131 | |||||||
Finished goods | 4,688 | 3,492 | |||||||
Reserve for excess and obsolete inventory | (999 | ) | (2,320 | ) | |||||
Total inventory | $ | 11,109 | $ | 10,993 | |||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Property and Equipment | ' | ||||||||||||
4. Property and Equipment | |||||||||||||
Property and equipment consisted of the following at December 31 (in thousands): | |||||||||||||
Estimated | |||||||||||||
Useful Life | 2013 | 2012 | |||||||||||
Land | N/A | $ | 2,900 | $ | 2,900 | ||||||||
Building and leasehold improvements | 39 years | 13,922 | 13,862 | ||||||||||
Production equipment | 3-7 years | 18,047 | 18,180 | ||||||||||
Computer equipment | 3-5 years | 7,789 | 7,481 | ||||||||||
Furniture and office equipment | 5-7 years | 2,646 | 3,359 | ||||||||||
Vehicles | 5 years | 270 | 270 | ||||||||||
Website development costs | 3 years | 601 | 601 | ||||||||||
Capitalized software development costs | 3 years | 3,670 | 3,670 | ||||||||||
Construction-in-process | N/A | 576 | 522 | ||||||||||
Total cost | 50,421 | 50,845 | |||||||||||
Less: Accumulated depreciation | (31,378 | ) | (28,893 | ) | |||||||||
Property and equipment, net | $ | 19,043 | $ | 21,952 | |||||||||
During the year ended December 31, 2013 the Company recognized a net gain of $27,000 in write-down and disposal of property and equipment. During the years ended December 31, 2012 and 2011 the Company recognized $0.2 million and $2.8 million in the write-down and disposal of property and equipment, net. The 2011 amount consisted of the following: (i) $1.4 million for tooling relative to the first generation AXON equipment, which is discussed further above; (ii) $0.8 million relative to the decision to dispose of surplus equipment and billing software for EVIDENCE.com operations; and (iii) $0.6 million for tooling relative to the TASER X3. | |||||||||||||
Also in 2011, the Company recognized an impairment charge of $1.4 million following the Company’s determination to abandon the Protector product line, of which $0.7 million related to property and equipment. The write-off of the Protector product line is included in the loss on impairment line item in the accompanying consolidated statement of operations for the year ended December 31, 2011. | |||||||||||||
Depreciation and amortization expense relative to property and equipment, including equipment under capital lease, was $4.8 million, $6.3 million and $7.5 for the years ended December 31, 2013, 2012 and 2011, respectively, of which $3.7 million, $4.7 million and $5.2 million is included in cost of products sold and services provided for the respective years. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||||
5. Goodwill and Intangible Assets | |||||||||||||||||||||||||||||
In the fourth quarter of 2013, the Company recorded goodwill related to the Familiar business acquisition. Goodwill is calculated as the excess of the purchase price over the fair value of the identifiable tangible and intangible assets. The balance of goodwill at December 31, 2013 was $2.2 million. The Company did not have goodwill at December 31, 2012. | |||||||||||||||||||||||||||||
Intangible assets (other than goodwill) consisted of the following (in thousands): | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||||||
Useful | Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||||
Life | Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||||
Amortized: | |||||||||||||||||||||||||||||
Domain names | 5 years | $ | 125 | $ | (102 | ) | $ | 23 | $ | 139 | $ | (104 | ) | $ | 35 | ||||||||||||||
Issued patents | 4-15 years | 1,529 | (441 | ) | 1,088 | 1,529 | (361 | ) | 1,168 | ||||||||||||||||||||
Issued trademarks | 9-11 years | 437 | (147 | ) | 290 | 362 | (102 | ) | 260 | ||||||||||||||||||||
Total amortized | 2,091 | (690 | ) | 1,401 | 2,030 | (567 | ) | 1,463 | |||||||||||||||||||||
Not amortized: | |||||||||||||||||||||||||||||
TASER trademark | 900 | 900 | 900 | 900 | |||||||||||||||||||||||||
Patents and trademarks pending | 1,015 | 1,015 | 954 | 954 | |||||||||||||||||||||||||
Total not amortized | 1,915 | 1,915 | 1,854 | 1,854 | |||||||||||||||||||||||||
Total intangible assets | $ | 4,006 | $ | (690 | ) | $ | 3,316 | $ | 3,884 | $ | (567 | ) | $ | 3,317 | |||||||||||||||
Amortization expense relative to intangible assets was $0.2 million, $0.1 million and $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. Estimated amortization for intangible assets with definitive lives for the next five years is as follows for the year ended December 31 (in thousands): | |||||||||||||||||||||||||||||
2014 | $ | 156 | |||||||||||||||||||||||||||
2015 | 148 | ||||||||||||||||||||||||||||
2016 | 141 | ||||||||||||||||||||||||||||
2017 | 137 | ||||||||||||||||||||||||||||
2018 | 127 | ||||||||||||||||||||||||||||
Thereafter | 692 | ||||||||||||||||||||||||||||
Total | $ | 1,401 | |||||||||||||||||||||||||||
Other_LongTerm_Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' |
Other Long-Term Assets | ' |
6. Other Long-Term Assets | |
Other long-term assets include the cash surrender value of corporate owned life insurance policies, long-term prepaid licenses and training equipment used on a recurring basis for the Company’s training programs. |
Deferred_Revenue
Deferred Revenue | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Revenue Recognition [Abstract] | ' | ||||||||
Deferred Revenue | ' | ||||||||
7. Deferred Revenue | |||||||||
Deferred revenue consisted of the following at December 31 (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Warranty | $ | 15,889 | $ | 10,831 | |||||
EVIDENCE.com | 4,026 | 1,292 | |||||||
Other | 304 | — | |||||||
Total deferred revenue | 20,219 | 12,123 | |||||||
Total current portion of deferred revenue | 6,878 | 4,287 | |||||||
Total long-term portion of deferred revenue | $ | 13,341 | $ | 7,836 | |||||
Included in the current portion of deferred revenue is approximately $2.0 million related to EVIDENCE.com and $4.9 million related to warranties. For more information relating to the Company’s revenue recognition policies please refer to Note 1(h). |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
8. Accrued Liabilities | |||||||||
Accrued liabilities consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Accrued salaries and benefits | $ | 2,328 | $ | 2,415 | |||||
Accrued judgments and settlements | 3,350 | 2,090 | |||||||
Accrued warranty expense | 955 | 484 | |||||||
Accrued income and other taxes | 233 | 296 | |||||||
Other accrued expenses | 1,974 | 1,780 | |||||||
Accrued liabilities | $ | 8,840 | $ | 7,065 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||||
9. Commitments and Contingencies | |||||||||||||||||||||||||||
a. Operating and capital lease obligations | |||||||||||||||||||||||||||
The Company has entered into operating leases for various office space, storage facilities and equipment. Rent expense under all operating leases, including both cancelable and non-cancelable leases, was $1.5 million, $1.4 million and $1.8 million for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||||
Included in property and equipment in the consolidated balance sheet as of December 31, 2013, is approximately $103,000 of office equipment the Company acquired under a capital lease during 2012. The leased equipment has an original cost of approximately $147,000 and associated accumulated amortization of approximately $44,000 as of December 31, 2013. The Company’s capital lease obligation as of December 31, 2013, was approximately $103,000 and bears an interest rate of 6.2%. | |||||||||||||||||||||||||||
Future minimum lease payments under non-cancelable leases at December 31, 2013, are as follows (dollars in thousands): | |||||||||||||||||||||||||||
Operating | Capital | ||||||||||||||||||||||||||
2014 | $ | 374 | $ | 38 | |||||||||||||||||||||||
2015 | 172 | 38 | |||||||||||||||||||||||||
2016 | 89 | 22 | |||||||||||||||||||||||||
2017 | 54 | — | |||||||||||||||||||||||||
2018 | — | — | |||||||||||||||||||||||||
Thereafter | — | — | |||||||||||||||||||||||||
Total minimum lease payments | $ | 689 | 98 | ||||||||||||||||||||||||
Less: Amount representing interest | 5 | ||||||||||||||||||||||||||
Capital lease obligation | $ | 103 | |||||||||||||||||||||||||
b. Purchase commitments | |||||||||||||||||||||||||||
The Company routinely enters into cancelable purchase orders with many of its key vendors. Based on the strategic relationships with many of these vendors, the Company’s ability to cancel these purchase orders and maintain a favorable relationship would be limited. As of December 31, 2013, the Company has $11.9 million of open purchase orders. | |||||||||||||||||||||||||||
c. Litigation | |||||||||||||||||||||||||||
Product Litigation | |||||||||||||||||||||||||||
The Company is currently named as a defendant in 16 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. In addition, two other product litigation matters in which the Company is involved are currently on appeal. 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 filing date of this Annual Report on Form 10-K. | |||||||||||||||||||||||||||
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 our 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 fourth quarter of 2013, product liability cases have been reduced from 55 active to 16 active cases, with one new lawsuit filed in the fourth quarter of 2013. | |||||||||||||||||||||||||||
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 exposure. In November 2013, the Company agreed to settle two pre-2009 product liability lawsuits, where the Company had litigation exposure in excess of insurance coverage and the risk of potential high jury verdicts, for a combined total of $2.3 million. The costs of these settlements will be covered by insurance. 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. | |||||||||||||||||||||||||||
Turner (NC) lawsuit | |||||||||||||||||||||||||||
The Turner (NC) lawsuit was tried in July 2011 and resulted in a jury verdict of $10.0 million against the Company. The Company filed post-trial motions seeking judgment as a matter of law notwithstanding the verdict and in the alternative, a new trial or alternatively, a remittitur of the jury award. Based on this verdict, the Company recorded litigation judgment expense of $3.3 million in 2011. During March 2012, the Federal District Court for the Western District of North Carolina granted the Company’s motion for remittitur and ordered the reduction of the original jury award from $10.0 million to approximately $4.4 million after offsets. On April 20, 2012, the court issued an order which adjusted the award to $5.5 million. On May 4, 2012, the court issued another order which entered judgment in the amount of $5.5 million plus costs and post-judgment interest. Based on this action by the court, the Company reversed a portion of the previously accrued litigation judgment during the year ended December 31, 2012, which resulted in a benefit of $2.2 million during the twelve months ended December 31, 2012, and leaving a reserve of $1.1 million on the Company’s balance sheet as of December 31, 2012. | |||||||||||||||||||||||||||
The Company appealed this verdict. On November 11, 2013, the U.S. Court of Appeals for the Fourth Circuit issued its opinion affirming the district court’s judgment upholding the jury verdict imposing liability on the Company for its negligence and vacating the district court’s judgment with respect to the remitted award of compensatory damages. The Court of Appeals remanded the case to the district court for a new trial limited to the issue of damages. As such, the appellate bond previously required, was subsequently released. The Company subsequently requested a rehearing en banc which was denied by the Court of Appeals. The remanded issues are currently pending in the Federal District Court for the Western District of North Carolina. As of December 31, 2013, the Company’s reserve related to this case was reduced to zero. Although there is approximately $2.6 million of insurance coverage remaining for the 2008 policy year, which includes the Turner lawsuit, the outcome of any litigation is inherently uncertain. Should legal costs and other litigation activities related to the 2008 policy year exceed the remaining insurance coverage, the Company would incur additional expense, which could be material. | |||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Grable | 8-Aug | 6th Judicial Circuit Court, Pinellas County, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Koon | 8-Dec | 17th Judicial Circuit Court, Broward County, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Derbyshire | 9-Nov | Ontario, Canada Superior Court of Justice | Officer Injury | Discovery Phase | |||||||||||||||||||||||
Thompson | 10-Mar | 11th Judicial Circuit Court, Miami-Dade County, FL | Suspect Injury During Arrest | Discovery Phase | |||||||||||||||||||||||
Doan | 10-Apr | The Queens Bench Alberta, Red Deer Judicial Dist. | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Shymko | 10-Dec | The Queens Bench, Winnipeg Centre, Manitoba | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Juran | 10-Dec | Hennepin County District Court, 4th Judicial District | Officer Injury | Discovery Phase | |||||||||||||||||||||||
Wilson | 11-May | US District Court, ED MO | Wrongful Death | Discovery Phase; trial scheduled for November 2014 | |||||||||||||||||||||||
Ramsey | 12-Jan | 17th Judicial Circuit Court, Broward County, FL | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Mitchell | 12-Apr | US District Court, ED MI | Wrongful Death | Discovery Phase,; trial scheduled June 2014 | |||||||||||||||||||||||
Firman | 12-Apr | Ontario, Canada Superior Court of Justice | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Ricks | 12-May | US District Court, WD LA | Wrongful Death | Motion Phase | |||||||||||||||||||||||
Miller | 13-Jan | New Castle County Superior Court, DE | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Salgado | 13-Feb | US District Court, SD FL | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Slade | 13-Dec | US District Court, ED TX | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Turner | 10-Feb | US District Court, ED NC | Wrongful Death | Appeal fully briefed; Oral argument held September 2013; remanded to trial on damages only. | |||||||||||||||||||||||
In addition, other product litigation matters in which the Company is involved that are currently on appeal are listed below: | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Bachtel | 11-Aug | 14th Judicial Circuit Court, Randolph County, MO | Wrongful Death | Appeal fully briefed; Oral Argument held on January 14, 2014. | |||||||||||||||||||||||
Glowczenski | 4-Oct | US District Court, ED NY | Wrongful Death | Notice of Appeal filed September 2013; Opening Brief was filed January 2014; Answering Brief is due April 2014. | |||||||||||||||||||||||
Cases that were dismissed or judgment entered during the fourth quarter of 2013 and through the filing date of this Annual Report on Form 10-K are listed in the table below. Cases that were dismissed or judgment entered in prior fiscal quarters are not included in this table. | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Armstrong | 13-Apr | US District Court, MD NC | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Barnes | 13-Apr | US District Court, WD PA | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Athetis | 9-May | Superior Court, AZ | Wrongful Death | Motion for Summary Judgment | |||||||||||||||||||||||
Duensing | 12-Feb | US District Court, NV | Suspect Injury During Arrest | Motion to Dismiss | |||||||||||||||||||||||
Rich | 10-Feb | US District Court, NV | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Peppler | 9-Apr | 5th Judicial Court for Sumter CO, FL | Training Injury | Voluntary Dismissal | |||||||||||||||||||||||
Wingard | 12-Oct | US District Court, WD PA | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Manjares | 12-Nov | US District Court, ED WA | Suspect Injury During Arrest | Voluntary Dismissal | |||||||||||||||||||||||
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 | Policy | Insurance | Deductible | Defense | Remaining | Active Cases and Cases on | ||||||||||||||||||||
Start | End | Coverage | Amount | Costs | Insurance | Appeal | |||||||||||||||||||||
Date | Date | Covered | Coverage | ||||||||||||||||||||||||
2004 | 12/1/03 | 12/1/04 | $ | 2 | $ | 0.1 | N | $ | 2 | Glowczenski | |||||||||||||||||
2005 | 12/1/04 | 12/1/05 | 10 | 0.3 | Y | 7 | n/a | ||||||||||||||||||||
2006 | 12/1/05 | 12/1/06 | 10 | 0.3 | Y | 3.7 | n/a | ||||||||||||||||||||
2007 | 12/1/06 | 12/1/07 | 10 | 0.3 | Y | 8 | n/a | ||||||||||||||||||||
2008 | 12/1/07 | 12/15/08 | 10 | 0.5 | Y | 2.6 | Grable, Koon, Turner | ||||||||||||||||||||
2009 | 12/15/08 | 12/15/09 | 10 | 1 | N | 10 | Derbyshire | ||||||||||||||||||||
2010 | 12/15/09 | 12/15/10 | 10 | 1 | N | 10 | Thompson, Shymko, Doan, Juran | ||||||||||||||||||||
2011 | 12/15/10 | 12/15/11 | 10 | 1 | N | 10 | Wilson, Bachtel | ||||||||||||||||||||
Jan—Jun 2012 | 12/15/11 | 6/25/12 | 7 | 1 | N | 7 | Ramsey, Mitchell, Firman, Ricks | ||||||||||||||||||||
Jul—Dec 2012 | 6/25/12 | 12/15/12 | 12 | 1 | N | 12 | n/a | ||||||||||||||||||||
2013 | 12/15/12 | 12/15/13 | 12 | 1 | N | 12 | Miller, Salgado | ||||||||||||||||||||
2014 | 12/15/13 | 12/15/14 | 12 | 4 | N | 12 | Slade | ||||||||||||||||||||
Other Litigation | |||||||||||||||||||||||||||
In January 2011, the Company was served with a complaint in the matter of GEOTAG, Inc. v. TASER International, et. al. that was filed in the U.S. District Court for the Eastern District of Texas, Marshall Division, which alleges that a dealer geographical locator feature on TASER’s website infringes upon plaintiff’s US Patent No. 5,930,474. The complaint seeks a judgment of infringement, a permanent injunction against infringement, an award for damages, costs, expenses and prejudgment and post-judgment interest, and an award for enhanced damages and attorneys’ fees. TASER licensed this locator feature from a third party and has denied liability for infringement. | |||||||||||||||||||||||||||
In July 2011, the Company filed a complaint against Karbon Arms, LLC for infringement of TASER’s U.S. Patent Nos. 7,800,885 and 7,782,592 in U.S. District Court for the District of Delaware seeking damages, injunctive relief and an award of attorneys’ fees. Karbon Arms filed a counterclaim on July 18, 2011, alleging invalidity and non-infringement of four of TASER’s patents, tortious interference with prospective contractual relations and false advertising under the Lanham Act. TASER thereafter filed counter-counterclaims for infringement of U.S. Patent Nos. 7,602,597 and 6,999,295. On January 10, 2014, a Judgment and Permanent Injunction were entered against Karbon Arms, LLC. This Judgment confirms that Karbon Arm’s accused products infringe the asserted claims of U.S. Patent Nos. 6,999,295; 7,782,592; and 7,800,885 and that these three patents are valid and enforceable. The Judgment also awarded TASER the sum of $2.4 million in damages. The Company has not recorded a receivable as of December 31, 2013 due to the uncertainty of collectability. Should the Company receive the funds from the award, a gain will be recognized at that time. | |||||||||||||||||||||||||||
In February 2012, the Company was served with a complaint in the matter of AA & Saba Consultants, Inc. v. TASER International, Inc. that was filed in the Superior Court for the County of Maricopa, Arizona, which alleges that the Company breached a contract by unilaterally terminating a distributor agreement between the Company and plaintiff without good cause. The complaint seeks an award for damages, costs, expenses and attorneys’ fees. TASER filed a counterclaim for breach of contract and fraud. During 2012, the Company made a settlement offer of $0.8 million to plaintiff which was recorded as an expense in SG&A. The offer was not accepted and thereafter was withdrawn. On February 28, 2014, the jury returned a verdict of $3.3 million against the Company. Judgment had not been entered at the time of this filing and the judgment is subject to an award of attorney’s fees. The Company believes the verdict is not supported by the evidence and intends to appeal. The Company recorded an additional $2.6 million of expense in the fourth quarter of 2013 in the litigation judgment line item on the income statement. Should the plaintiff be awarded reimbursement of legal fees, additional expense will be recorded by the Company. | |||||||||||||||||||||||||||
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 we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend any lawsuit filed against the Company. The Company does not expect these lawsuits to individually, or in the aggregate, materially affect our business, results of operations or financial condition. However, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance or will not be in excess of amounts provided by insurance coverage and will not have a material adverse effect on our business, operating results or financial condition. | |||||||||||||||||||||||||||
d. Employment Agreements | |||||||||||||||||||||||||||
The Company has employment agreements with certain key executives. The Company may terminate the agreements with or without cause. Should the Company terminate the agreements without cause, or upon a change of control of the Company or death of the employee, the employee, or family of the employee, are entitled to additional compensation. Under these circumstances, these officers and employees may receive the amounts remaining under their contracts upon termination, which would total $0.8 million in the aggregate at December 31, 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
10. Income Taxes | |||||||||||||
Significant components of the Company’s deferred income tax assets and liabilities are as follows at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating loss carryforward | $ | 513 | $ | 47 | |||||||||
Deferred warranty revenue | 2,837 | 1,759 | |||||||||||
Inventory reserve | 389 | 906 | |||||||||||
Non-qualified and non-employee stock option expense | 3,518 | 3,682 | |||||||||||
Capitalized research and development | 6,588 | 8,191 | |||||||||||
Alternative minimum tax carryforward | 1,466 | 1,406 | |||||||||||
Research and development tax credit carryforward | 3,165 | 2,936 | |||||||||||
Deferred legal settlement | 1,294 | 723 | |||||||||||
IRC section 481(a) adjustment—tangible property | 1,316 | — | |||||||||||
Reserves, accruals, and other | 2,066 | 2,156 | |||||||||||
Total deferred income tax assets | 23,152 | 21,806 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation | (2,136 | ) | (662 | ) | |||||||||
Amortization | (236 | ) | (142 | ) | |||||||||
Total deferred income tax liabilities | (2,372 | ) | (804 | ) | |||||||||
Net deferred income tax assets | $ | 20,780 | $ | 21,002 | |||||||||
The Company’s net deferred tax assets are presented as follows on the accompanying consolidated balance sheets at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets, net | $ | 7,101 | $ | 9,396 | |||||||||
Long-term deferred tax assets, net | 13,679 | 11,606 | |||||||||||
Total | $ | 20,780 | $ | 21,002 | |||||||||
The Company has deferred tax assets of $0.1 million related to state NOLs which expire at various dates between 2016 and 2031. The Company also has deferred tax assets of approximately $0.4 million related to federal NOLs which expire between 2031 and 2033, and are subject to limitation under IRC Section 382. The Company has Arizona R&D credit carry forwards for financial reporting purposes of $2.8 million, which expire at various dates between 2018 and 2028, and California R&D credit carry forwards for financial reporting purposes of $0.3 million which do not expire. The Company has a minimum tax credit carryover of $1.5 million which does not expire. | |||||||||||||
The Company recognizes the income tax benefits associated with certain stock compensation deductions only when such deductions produce a reduction to the Company’s actual tax liability. Accordingly, in 2013 and 2012, the Company recognized benefits of $6.8 million and $4.7 million, respectively, for the reduction of federal and state taxes payable, which was recorded as a credit to additional paid-in capital. At December 31, 2013 and 2012, the Company had income tax receivable of $2.3 million and $0.8 million, respectively. | |||||||||||||
Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and our effective tax rate in the future. The American Taxpayer Relief Act of 2012 (the “Act”) was signed into law on January 2, 2013. Because a change in tax law is accounted for in the period of enactment, certain provisions of the Act benefitting the Company’s 2012 federal taxes, including the R&D credit, were not recognized in the Company’s 2012 financial results and instead are reflected in the Company’s 2013 financial results. A benefit of approximately $55,000 was accounted for in the tax provision for the year ended December 31, 2013. | |||||||||||||
In preparing the Company’s consolidated financial statements, management has assessed the likelihood that deferred income tax assets will be realized from future taxable income. In evaluating the ability to recover its deferred income tax assets, management considers all available evidence, positive and negative; including the Company’s 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 income tax assets will not be realized. Management exercises significant judgment in determining the Company’s provisions for income taxes, its deferred income tax assets and liabilities and its future taxable income for purposes of assessing its ability to utilize any future tax benefit from its deferred income 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 regards to future realization of deferred tax assets. As of December 31, 2012, in part because in that year the Company achieved three years of cumulative pre-tax income in the U.S. federal and Arizona tax jurisdictions, management determined that sufficient positive evidence existed to conclude that it is more likely than not that additional deferred taxes related to Arizona R&D credits are realizable, and therefore, reversed in full the valuation allowance related to that item. As of December 31, 2013, the Company continues to demonstrate three-year cumulative pre-tax income in the U.S. federal and Arizona tax jurisdictions, and based on that and other available evidence, management has concluded that it is more likely than not that the Company’s deferred tax assets will be realized. | |||||||||||||
Significant components of the provision (benefit) for income taxes are as follows for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 7,963 | $ | 4,605 | $ | 133 | |||||||
State | 987 | 666 | 59 | ||||||||||
Total current | 8,950 | 5,271 | 192 | ||||||||||
Deferred: | |||||||||||||
Federal | 764 | 3,168 | (3,253 | ) | |||||||||
State | (143 | ) | (1,485 | ) | 771 | ||||||||
Total deferred | 621 | 1,683 | (2,482 | ) | |||||||||
Tax provision (benefit) recorded as an increase (decrease) in liability for unrecorded tax benefits | 219 | 920 | (299 | ) | |||||||||
Provision (benefit) for income taxes | $ | 9,790 | $ | 7,874 | $ | (2,589 | ) | ||||||
The Company is subject to federal, state, local and foreign taxes; however, no separate calculation of the foreign provision for deferred tax assets was calculated for the periods presented due to the minimal amount of book income in the Company’s foreign subsidiary and the comparability of the foreign tax rate to the tax rate in the U.S. A reconciliation of the Company’s effective income tax rate to the federal statutory rate for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax at the statutory rate | $ | 9,812 | $ | 7,914 | $ | (3,370 | ) | ||||||
State income taxes, net of federal benefit | 1,283 | 969 | (357 | ) | |||||||||
Permanent differences (i) | (96 | ) | 156 | 231 | |||||||||
Research and development | (386 | ) | (327 | ) | (230 | ) | |||||||
Return to provision adjustment (ii) | (361 | ) | (270 | ) | (458 | ) | |||||||
Change in liability for unrecognized tax benefits | 219 | 921 | (299 | ) | |||||||||
Incentive stock option detriment/(benefit) | (538 | ) | 174 | 449 | |||||||||
Change in valuation allowance | — | (1,429 | ) | 1,429 | |||||||||
Other | (143 | ) | (234 | ) | 16 | ||||||||
Povision (benefit) for income taxes | $ | 9,790 | $ | 7,874 | $ | (2,589 | ) | ||||||
Effective tax rate | 34.9 | % | 34.8 | % | 26.9 | % | |||||||
(i) | Permanent differences include certain expenses that are not deductible for tax purposes including lobbying fees as well as favorable items including the domestic production activities deduction | ||||||||||||
(ii) | The 2011 return to provision adjustment was driven by higher than estimated 2010 R&D tax credits, which increased the net tax benefit and therefore, reduced the effective tax rate. The 2012 return to provision adjustment was driven by higher than estimated 2011 R&D tax credits which increased the net tax benefit and therefore, reduced the effective tax rate. The 2013 return to provision adjustment was driven by the domestic production activities deduction which decreased taxable income, and therefore, reduced the effective tax rate. | ||||||||||||
The Company has completed research and development tax credit studies which identified approximately $9.8 million in tax credits for federal, Arizona and California income tax purposes related to the 2003 through 2013 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 $3.0 million as of December 31, 2013. In addition, management accrued approximately $0.1 million for estimated uncertain tax positions related to certain state income tax liabilities. As of December 31, 2013, management does not expect the amount of the unrecognized tax benefit liability to increase or decrease significantly within the next 12 months. Should the unrecognized tax benefit of $3.1 million be recognized, the Company’s effective tax rate would be favorably impacted. | |||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Statement of Operations. As of December 31, 2013 and 2012, respectively, the Company had accrued interest of $12,000 and $0. | |||||||||||||
The following table presents a roll forward of our liability for unrecognized tax benefits, exclusive of accrued interest, as of December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of period | $ | 2,903 | $ | 1,982 | $ | 2,282 | |||||||
Increase in previous year tax positions | 57 | 659 | — | ||||||||||
Increase in current year tax positions | 144 | 151 | 83 | ||||||||||
Increase (decrease) related to adjustment of previous estimates of activity | 6 | 111 | (383 | ) | |||||||||
Balance, end of period | $ | 3,110 | $ | 2,903 | $ | 1,982 | |||||||
Federal income tax returns for 2004 through 2012 remain open to examination by the U.S. Internal Revenue Service (the “IRS”), while state and local income tax returns for 2004 through 2012 also remain open to examination. The 2004 through 2009 income tax returns are only open to the extent that net operating loss or other tax attributes carrying forward from those years were utilized in 2010 through 2013. The foreign tax returns for 2010 through 2012 also remain open to examination. The Company has not been notified by any major state tax jurisdiction that it will be subject to examination. | |||||||||||||
On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the IRS, resulting in a cumulative effect adjustment. To account for the adoption of these regulations and other related items, tangible property-related, long-term deferred tax liabilities increased by $1.3 million, with the offsetting increase to current deferred income tax assets. |
Line_of_Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
11. Line of Credit | |
The Company has a $10.0 million revolving line of credit with a domestic bank. At December 31, 2013 and 2012, there were no borrowings under the line. As of December 31, 2013, the Company had letters of credit outstanding of $0.6 million under the facility and available borrowing of $9.4 million. The line is secured by the Company’s accounts receivable and inventory, and bears interest at varying rates (currently LIBOR plus 1.5% to prime). The line of credit matures on June 30, 2015, 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 minimum tangible net worth and a fixed charge coverage ratio. The 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 December 31, 2013, the Company’s tangible net worth ratio was 0.39:1 and its fixed charge coverage ratio was 3.18:1. Accordingly, the Company was in compliance with these covenants. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||
12. Stockholders’ Equity | |||||||||||||||||||||||||
a. Common Stock and Preferred Stock | |||||||||||||||||||||||||
The Company has authorized the issuance of two classes of stock designated as “common stock” and “preferred stock,” each having a par value of $0.00001 per share. The Company is authorized to issue 200 million shares of common stock and 25 million shares of preferred stock. | |||||||||||||||||||||||||
b. Stock Repurchase | |||||||||||||||||||||||||
In February 2013, the Company announced that TASER’s Board of Directors authorized a stock repurchase program to acquire up to $25.0 million of the Company’s outstanding common stock subject to stock market conditions and corporate considerations. Under this program, which was completed in the second quarter of 2013, the Company purchased approximately 3.0 million common shares under this program for a total cost of approximately $25.0 million, or a weighted average cost, including commissions, of $8.20 per share. | |||||||||||||||||||||||||
On April 25, 2012, TASER’s Board of Directors authorized a stock repurchase program to acquire up to $20.0 million of the Company’s outstanding common stock subject to stock market conditions and corporate considerations. The Company purchased approximately 3.8 million common shares under this program for a total cost of $20.0 million, or a weighted average cost, including commissions, of $5.22 per share. The buyback was completed in the third quarter of 2012. | |||||||||||||||||||||||||
In March 2011 and July 2011, TASER’s Board of Directors authorized two stock repurchase programs to acquire up to $12.5 million and $20.0 million, respectively, of the Company’s outstanding common stock subject to stock market conditions and corporate considerations. During 2011, the Company repurchased approximately 7.5 million shares under these programs for a total cost of $32.5 million, or a weighted average cost, including commissions, of $4.35 per share. | |||||||||||||||||||||||||
The Company does not currently have an open stock repurchase program. | |||||||||||||||||||||||||
c. Stock-based Compensation Plans | |||||||||||||||||||||||||
The Company has historically utilized stock-based compensation, consisting of restricted stock units (“RSUs”) and stock options, for key employees and non-employee directors as a means of attracting and retaining quality personnel. Service-based grants generally have a vesting period of three to four years and a contractual maturity of ten years. Performance-based grants generally have vesting periods ranging from one to four years and a contractual maturity of ten years. | |||||||||||||||||||||||||
On February 25, 2013, the Company’s Board of Directors approved the 2013 Stock Incentive Plan (the “2013 Plan) which was subsequently approved by stockholders at the Annual Meeting of Stockholders on May 23, 2013. Under the 2013 Plan, the Company reserved for future grants: (i) 1.6 million shares of common stock, plus (ii) the number of shares of common stock that were authorized but unissued under the Company’s 2009 Stock Incentive Plan (the “2009 Plan”) as of the effective date of the 2013 Plan, and (iii) the number of shares of stock that have been granted under the 2009 Plan that either terminate, expire or lapse for any reason after the effective date of the 2013 Plan. As of December 31, 2013, 2.3 million shares remain available for future grants. Shares issued upon exercise of stock awards from these plans have historically been issued from the Company’s authorized unissued shares. | |||||||||||||||||||||||||
d. Performance-based stock awards | |||||||||||||||||||||||||
The Company has issued performance-based stock options and performance-based 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 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. | |||||||||||||||||||||||||
e. Restricted Stock Units | |||||||||||||||||||||||||
The following table summarizes RSU activity for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | ||||||||||||||||||||
of | Grant-Date | of | Grant-Date | of | Grant-Date | ||||||||||||||||||||
Units | Fair Value | Units | Fair Value | Units | Fair Value | ||||||||||||||||||||
Units outstanding, beginning of year | 582,212 | $ | 5.42 | 1,096 | $ | 4.76 | 50 | $ | 4.24 | ||||||||||||||||
Granted | 1,054,293 | 10.72 | 713,148 | 5.4 | 1,046 | 4.78 | |||||||||||||||||||
Released | (257,693 | ) | 5.44 | (97,007 | ) | 5.3 | — | ||||||||||||||||||
Forfeited | (99,689 | ) | 6.86 | (35,025 | ) | 5.29 | — | ||||||||||||||||||
Units outstanding, end of year | 1,279,123 | 9.67 | 582,212 | 5.42 | 1,096 | 4.76 | |||||||||||||||||||
Aggregate intrinsic value at year end | $ | 20,312,473 | |||||||||||||||||||||||
Aggregate intrinsic value represents the Company’s closing stock price on the last trading day of the period, which was $15.88 per share, multiplied by the number of restricted stock units. In 2013 and 2012, the Company granted approximately 0.3 million and 0.2 million performance-based RSUs, respectively (included in the table above). As of December 31, 2013, the performance criteria has been met for approximately 0.2 million of the 0.3 million performance-based RSUs outstanding. The Company recognized $1.4 million and $0.7 million of compensation expense related to performance-based RSUs during the twelve months ended December 2013 and 2012, respectively. | |||||||||||||||||||||||||
Certain RSUs that vested in 2013 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 33,000 and had a value of approximately $0.3 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. | |||||||||||||||||||||||||
f. Stock Option Activity | |||||||||||||||||||||||||
The following table summarizes stock option activity for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | ||||||||||||||||||||
of | Exercise | of | Exercise | of | Exercise | ||||||||||||||||||||
Options | Price | Options | Price | Options | Price | ||||||||||||||||||||
Options outstanding, beginning of year | 6,321,076 | $ | 6.05 | 7,576,493 | $ | 5.75 | 7,507,236 | $ | 5.71 | ||||||||||||||||
Granted | — | — | 1,018,182 | 4.65 | |||||||||||||||||||||
Exercised | (2,671,058 | ) | 5.75 | (784,383 | ) | 2.46 | (539,923 | ) | 2.64 | ||||||||||||||||
Expired / terminated | (284,326 | ) | 7.83 | (471,034 | ) | 7.15 | (409,002 | ) | 6.38 | ||||||||||||||||
Options outstanding, end of year | 3,365,692 | 6.15 | 6,321,076 | 6.05 | 7,576,493 | 5.75 | |||||||||||||||||||
Options exercisable, end of year | 3,217,146 | 6.22 | 5,278,243 | 6.31 | 6,432,667 | 6.02 | |||||||||||||||||||
Options expected to vest, end of year | 103,362 | 4.54 | |||||||||||||||||||||||
The weighted average grant-date fair value of options granted for the year ended December 31, 2011 was $2.16. No stock options were granted in 2013 or 2012. Total intrinsic value of options exercised was $15.7 million, $3.2 million and $1.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. The intrinsic value for options exercised was calculated as the difference between the exercise price of the underlying stock option awards and the market price of the Company’s common stock on the date of exercise. | |||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable as of December 31, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||
Weighted | Average | Weighted | Average | ||||||||||||||||||||||
Number of | Average | Remaining | Number of | Average | Remaining | ||||||||||||||||||||
Range of | Options | Exercise | Contractual | Options | Exercise | Contractual | |||||||||||||||||||
Exercise Price | Outstanding | Price | Life (Years) | Exercisable | Price | Life (Years) | |||||||||||||||||||
$3.53 - $5.00 | 1,886,679 | $ | 4.62 | 5.9 | 1,739,833 | $ | 4.63 | 5.8 | |||||||||||||||||
$5.01 - $7.00 | 528,221 | 5.6 | 5.2 | 526,521 | 5.6 | 5.1 | |||||||||||||||||||
$7.01 - $10.00 | 649,381 | 7.72 | 3 | 649,381 | 7.72 | 3 | |||||||||||||||||||
$10.01 - $15.00 | 194,763 | 10.31 | 3.4 | 194,763 | 10.31 | 3.4 | |||||||||||||||||||
$15.01 - $29.83 | 106,648 | 18.69 | 0.4 | 106,648 | 18.69 | 0.4 | |||||||||||||||||||
$3.53 - $29.83 | 3,365,692 | 6.15 | 4.9 | 3,217,146 | 6.22 | 4.8 | |||||||||||||||||||
The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2013, was $33.1 million and $31.4 million, respectively. 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 $15.88 on December 31, 2013. | |||||||||||||||||||||||||
At December 31, 2013, the Company had 0.1 million unvested options outstanding with a weighted average exercise price of $4.58 per share, weighted average fair value of $2.18 per share and weighted average remaining contractual life of 6.8 years. The aggregate intrinsic value of unvested options at December 31, 2013 was $1.7 million. | |||||||||||||||||||||||||
The Company granted approximately 1.0 million performance-based stock options (included in the table above) from 2008 through 2011. As of December 31, 2013, approximately 0.4 million performance-based stock options are outstanding, of which less than 50,000 are unvested. Of the unvested performance options, 17,000 are expected to vest. The aggregate grant-date fair value of the 0.4 million performance-based stock options vested and expected to vest as of December 31, 2013 is approximately $1.0 million. The Company recognized $0.1 million, $0.1 million and $0.3 million of stock-based compensation expense related to performance-based stock options during 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
g. Stock-based Compensation Expense | |||||||||||||||||||||||||
The Company accounts for stock-based compensation using the fair-value method. Reported stock-based compensation was classified as follows for the years ended December 31 (in thousands): | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Cost of products sold | $ | 175 | $ | 172 | $ | 121 | |||||||||||||||||||
Sales, general and administrative expenses | 3,158 | 2,647 | 2,291 | ||||||||||||||||||||||
Research and development expenses | 1,007 | 603 | 626 | ||||||||||||||||||||||
Total stock-based compensation | $ | 4,340 | $ | 3,422 | $ | 3,038 | |||||||||||||||||||
Total stock-based compensation expense recognized in the statements of operations for the years ended December 31, 2013, 2012 and 2011 includes $0.1 million, $0.5 million and $1.3 million, respectively, related to ISOs for which no tax benefit is recognized. The Company recorded a tax benefit in 2013, 2012, and 2011 of $6.8 million, $4.7 million, and $10,000, respectively, to offset taxes payable related to the non-qualified disposition of ISOs exercised and sold. The total future tax benefits related to non-qualified and restricted stock units was $3.5 million and $3.7 million as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
As of December 31, 2013, there was $8.6 million in unrecognized compensation costs related to RSUs and $0.1 million of unrecognized compensation expense related to stock options granted under our stock plans. We expect to recognize the cost related to the RSUs and stock options over weighted average periods of 31 months and 12 months, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
13. Related Party Transactions | |
The Company engages Mark Kroll, a member of the Board of Directors, to provide consulting services. The expenses related to these services were $0.2 million for each of the years ended December 31, 2013, 2012 and 2011. At December 31, 2013 and 2012, the Company had accrued liabilities of approximately $12,000 and $6,000, respectively, related to these services. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
14. 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. | |
In addition, during the third quarter of 2013, the Company implemented 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 (i) matching and discretionary employer contributions and (ii) the deferral of vested RSU awards. 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 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 are based on the level of employee contributions and are immediately vested. The Company’s matching contributions to the plan for the years ended December 31, 2013 and 2012, were approximately $0.7 million and $0.5 million, respectively. The Company expects to make matching contributions to the non-qualified deferred compensation plan related to the year ended December 31, 2013, of approximately $13,000. Future matching or profit sharing contributions to the plans are at the Company’s sole discretion. |
Business_Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
Business Acquisition | ' |
15. Business Acquisition | |
On October 7, 2013, the Company entered into a definitive agreement to acquire Familiar, Inc. (“Familiar”) for $1.3 million in cash, net of cash acquired, and 107,749 shares of common stock. Familiar’s employees include application developers experienced in digital video management. The Familiar employees will conduct research and development initiatives for technologies in law enforcement, focused specifically on new revenue opportunities within the EVIDENCE.com & Video segment. The Company will not continue to develop or market products and services previously provided by Familiar. | |
The aggregate purchase price was allocated to the assets acquired and the liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired, which totaled $2.2 million, has been allocated to goodwill. The estimated fair values of acquired assets and liabilities could change as additional information is received and certain tax returns are finalized. The Company expects to finalize the valuation as soon as practicable, but not later than one-year from the acquisition date. Any subsequent changes to the purchase price allocations will result in a corresponding adjustment to goodwill. The Company does not consider the acquisition to be material and is not providing pro-forma disclosures to disclose the impact of the acquired business on operations. |
Joint_Venture_Agreement
Joint Venture Agreement | 12 Months Ended |
Dec. 31, 2013 | |
Equity Method Investments And Joint Ventures [Abstract] | ' |
Joint Venture Agreement | ' |
16. Joint Venture Agreement | |
On January 13, 2010, the Company entered into a Joint Venture Agreement (the “Protector Group Agreement”) with RouteCloud, LLC (“RouteCloud”) and certain other parties to establish the TASER Protector Group to exclusively develop, market, sell and support a new suite of products (“Protector Products”). During 2010, $1.2 million was funded under the Joint Venture agreement prior to revision on November 2, 2010. | |
On November 2, 2010, the Company entered into a revised agreement with RouteCloud and the other parties to the Protector Group Agreement, pursuant to which, among other things, the original Protector Group Agreement was terminated retroactively, effective as of September 29, 2010. The new agreement also provided that the Company would (i) reimburse RouteCloud the sum of $75,000 for certain transition expenses, (ii) assume responsibility for the ongoing development, marketing, sale and support of Protector Products, (iii) offer employment or consulting arrangements to certain RouteCloud personnel, and (iv) pay RouteCloud royalties on the sale of Protector Products. | |
During the second quarter of 2011, the Company recognized an impairment charge of $1.4 million relative to its Protector Product line following the Company’s decision to abandon the development of this product line. Included in the impairment charges were charges for capitalized software development, prepaid royalties, and presale inventory. As such, the Company intends to not pursue any further business with RouteCloud relating to the Protector Products. |
Segment_Data
Segment Data | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Data | ' | ||||||||||||
17. Segment Data | |||||||||||||
The Company’s operations are comprised of two reportable segments: the sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the video business, which includes the TASER Cam, AXON video products and EVIDENCE.com (the “EVIDENCE.com & Video” segment). The Company includes only revenues and costs directly attributable to the EVIDENCE.com & Video segment in that segment. Included in EVIDENCE.com & Video segment costs are: costs of sales for both products and services, overhead allocation based on direct labor, selling expense for the video sales team, video product management expenses, video trade shows and related expenses, and research and development for products included in the EVIDENCE.com & Video 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, no asset information is provided in the following tables. | |||||||||||||
Information relative to the Company’s reportable segments is as follows (in thousands): | |||||||||||||
2013 | |||||||||||||
TASER | EVIDENCE.com | Total | |||||||||||
Weapons | & Video | ||||||||||||
Product sales | $ | 127,474 | $ | 8,649 | $ | 136,123 | |||||||
Service revenue | — | 1,708 | 1,708 | ||||||||||
Net sales | 127,474 | 10,357 | 137,831 | ||||||||||
Cost of products sold | 44,025 | 6,074 | 50,099 | ||||||||||
Cost of services delivered | — | 1,889 | 1,889 | ||||||||||
Gross margin | 83,449 | 2,394 | 85,843 | ||||||||||
Sales, general & administrative | 40,201 | 6,383 | 46,584 | ||||||||||
Research & development | 4,311 | 5,577 | 9,888 | ||||||||||
Litigation judgment recovery | 1,450 | — | 1,450 | ||||||||||
Gain on write down / disposal of property and equipment, net | (27 | ) | — | (27 | ) | ||||||||
Income (loss) from operations | $ | 37,514 | $ | (9,566 | ) | $ | 27,948 | ||||||
Purchase of property and equipment | $ | 1,324 | $ | 459 | $ | 1,783 | |||||||
Purchase of intangible assets | 307 | 16 | 323 | ||||||||||
Depreciation and amortization | 4,011 | 1,120 | 5,131 | ||||||||||
2012 | |||||||||||||
TASER | EVIDENCE.com | Total | |||||||||||
Weapons | & Video | ||||||||||||
Product sales | $ | 109,055 | $ | 5,071 | $ | 114,126 | |||||||
Service revenue | — | 627 | 627 | ||||||||||
Net sales | 109,055 | 5,698 | 114,753 | ||||||||||
Cost of products sold | 39,350 | 3,773 | 43,123 | ||||||||||
Cost of services delivered | — | 3,915 | 3,915 | ||||||||||
Gross margin | 69,705 | (1,990 | ) | 67,715 | |||||||||
Sales, general & administrative | 35,576 | 3,510 | 39,086 | ||||||||||
Research & development | 3,938 | 4,201 | 8,139 | ||||||||||
Litigation judgment | (2,200 | ) | — | (2,200 | ) | ||||||||
Loss on write down / disposal of property and equipment, net | 161 | — | 161 | ||||||||||
Income (loss) from operations | $ | 32,230 | $ | (9,701 | ) | $ | 22,529 | ||||||
Purchase of property and equipment | $ | 922 | $ | 412 | $ | 1,334 | |||||||
Purchase of intangible assets | 429 | — | 429 | ||||||||||
Depreciation and amortization | 4,327 | 2,192 | 6,519 | ||||||||||
2011 | |||||||||||||
TASER | EVIDENCE.com | Total | |||||||||||
Weapons | & Video | ||||||||||||
Product sales | $ | 86,675 | $ | 3,001 | $ | 89,676 | |||||||
Service revenue | — | 352 | 352 | ||||||||||
Net sales | 86,675 | 3,353 | 90,028 | ||||||||||
Cost of products sold | 34,213 | 2,693 | 36,906 | ||||||||||
Cost of services delivered | — | 4,847 | 4,847 | ||||||||||
Excess inventory charges | 1,749 | 1,997 | 3,746 | ||||||||||
Gross margin | 50,713 | (6,184 | ) | 44,529 | |||||||||
Sales, general & administrative | 34,794 | 3,207 | 38,001 | ||||||||||
Research & development | 5,445 | 4,544 | 9,989 | ||||||||||
Litigation judgment | 3,301 | — | 3,301 | ||||||||||
Loss on impairment | 1,354 | — | 1,354 | ||||||||||
Loss on write down / disposal of property and equipment, net | 643 | 2,157 | 2,800 | ||||||||||
Income (loss) from operations | $ | 5,176 | $ | (16,092 | ) | $ | (10,916 | ) | |||||
Purchase of property and equipment | $ | 1,501 | $ | 353 | $ | 1,854 | |||||||
Purchase of intangible assets | 413 | — | 413 | ||||||||||
Depreciation and amortization | 5,409 | 2,688 | 8,097 |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Selected Quarterly Financial Data (unaudited) | ' | ||||||||||||||||
18. Selected Quarterly Financial Data (unaudited) | |||||||||||||||||
Selected quarterly financial data for years ended December 31, 2013 and 2012 follows (in thousands): | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Net sales | $ | 30,434 | $ | 32,175 | $ | 35,197 | $ | 40,025 | |||||||||
Gross margin | 18,451 | 19,742 | 22,096 | 25,554 | |||||||||||||
Net income | 3,298 | 4,457 | 5,114 | 5,375 | |||||||||||||
Basic net income per share | $ | 0.06 | $ | 0.09 | $ | 0.1 | $ | 0.1 | |||||||||
Diluted net income per share | 0.06 | 0.08 | 0.1 | 0.1 | |||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
Net sales | $ | 25,641 | $ | 28,223 | $ | 28,773 | $ | 32,116 | |||||||||
Gross margin | 15,241 | 16,503 | 16,803 | 19,168 | |||||||||||||
Net income | 3,804 | 3,442 | 3,677 | 3,815 | |||||||||||||
Basic net income per share | $ | 0.07 | $ | 0.06 | $ | 0.07 | $ | 0.07 | |||||||||
Diluted net income per share | 0.07 | 0.06 | 0.07 | 0.07 | |||||||||||||
The following significant charges were incurred during 2013: | |||||||||||||||||
• | Reversal of litigation judgment reserve of $1.1 million, recorded in the fourth quarter of 2013. | ||||||||||||||||
• | Accrual of litigation judgment expense of $2.6 million, recorded in the fourth quarter of 2013. | ||||||||||||||||
The following significant charges were incurred during 2012: | |||||||||||||||||
• | Reversal of litigation judgment reserve of $2.2 million, recorded in the first quarter of 2012. |
Supplemental_Disclosure_to_Cas
Supplemental Disclosure to Cash Flows | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Supplemental Disclosure to Cash Flows | ' | ||||||||||||
19. Supplemental Disclosure to Cash Flows | |||||||||||||
Supplemental non-cash and other cash flow information are as follows for the years ended December 31 (in thousands), | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash paid for income taxes—net | $ | 3,625 | $ | 1,079 | $ | 52 | |||||||
Non Cash Transactions: | |||||||||||||
Stock issued for business acquisition | $ | 1,578 | $ | — | $ | — | |||||||
Property and equipment purchases in accounts payable | 279 | 113 | 81 | ||||||||||
Purchase of assets under capital lease obligations | — | 147 | — |
Schedule_II_Valuation_and_Qual
Schedule II- Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
Schedule II- Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
Balance at | Charged to | Charged to | Balance at | ||||||||||||||||||
Beginning | Costs and | Other | End of | ||||||||||||||||||
Description | of Period | Expenses | Accounts | Deductions | Period | ||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 200 | $ | 24 | $ | — | $ | (24 | ) | $ | 200 | ||||||||||
Year ended December 31, 2012 | 450 | (242 | ) | — | (8 | ) | 200 | ||||||||||||||
Year ended December 31, 2011 | 200 | 296 | — | (46 | ) | 450 | |||||||||||||||
Allowance for excess and obsolete inventory: | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 2,320 | $ | 595 | $ | — | $ | (1,916 | ) | $ | 999 | ||||||||||
Year ended December 31, 2012 | 4,431 | 554 | — | (2,665 | ) | 2,320 | |||||||||||||||
Year ended December 31, 2011 | 351 | 4,610 | — | (530 | ) | 4,431 | |||||||||||||||
Warranty reserve: | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 484 | $ | 1,001 | $ | — | $ | (530 | ) | $ | 955 | ||||||||||
Year ended December 31, 2012 | 427 | 527 | — | (470 | ) | 484 | |||||||||||||||
Year ended December 31, 2011 | 646 | 310 | — | (529 | ) | 427 |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Basis of Presentation and Use of Estimates | ' | ||||||||||||||||||||||||
a. Basis of Presentation and Use of Estimates | |||||||||||||||||||||||||
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. of America (“U.S. GAAP”). The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions in these consolidated financial statements include: | |||||||||||||||||||||||||
• | product warranty reserves, | ||||||||||||||||||||||||
• | inventory valuation reserves, | ||||||||||||||||||||||||
• | revenue recognition allocated in multiple-deliverable revenue recognition, | ||||||||||||||||||||||||
• | valuation of goodwill, intangibles and long-lived assets, | ||||||||||||||||||||||||
• | recognition, measurement and valuation of current and deferred income taxes, | ||||||||||||||||||||||||
• | fair value of stock awards issued, the estimated vesting period for performance-based stock awards and forfeiture rates, and | ||||||||||||||||||||||||
• | recognition and measurement of contingencies and accrued litigation expense. | ||||||||||||||||||||||||
Actual results could differ materially from those estimates. | |||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | ' | ||||||||||||||||||||||||
b. Cash, Cash Equivalents and Investments | |||||||||||||||||||||||||
Cash, cash equivalents and investments include cash, money market funds, certificates of deposit, state and municipal obligations and corporate bonds. The Company places its cash and cash equivalents with high quality financial institutions. Balances with these institutions regularly exceed FDIC insured limits; however, to manage the related credit exposure, the Company continually monitors the credit worthiness of the financial institutions where it has deposits. | |||||||||||||||||||||||||
Cash and cash equivalents include funds on hand and highly liquid investments purchased with initial maturity of three months or less. Short-term investments include securities with an expected maturity date within one year of the balance sheet date that do not meet the definition of a cash equivalent, and long-term investments are securities with an expected maturity date greater than one year. Based on management’s intent and ability, the Company’s investments are classified as held to maturity investments and are recorded at amortized cost. Held-to-maturity investments are reviewed quarterly for impairment to determine if other-than-temporary declines in the carrying value have occurred for any individual investment. Other-than-temporary declines in the value of held-to-maturity investments are recorded as expense in the period the determination is made. | |||||||||||||||||||||||||
Inventory | ' | ||||||||||||||||||||||||
c. Inventory | |||||||||||||||||||||||||
Inventories are stated at the lower of cost or market. 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 potentially excess, obsolete or slow-moving inventories to their net realizable value. These provisions are based on management’s best estimate after considering historical demand, projected future demand, inventory purchase commitments, industry and market trends and conditions and other factors. Management evaluates inventory costs for abnormal costs due to excess production capacity and treats such costs as period costs. | |||||||||||||||||||||||||
Property and Equipment | ' | ||||||||||||||||||||||||
d. Property and Equipment | |||||||||||||||||||||||||
Property and equipment are stated at cost, net of accumulated depreciation and amortization. Additions and improvements are capitalized, while ordinary maintenance and repair expenditures are charged to expense as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. | |||||||||||||||||||||||||
Capitalized Software Development Costs | ' | ||||||||||||||||||||||||
e. Capitalized Software Development Costs | |||||||||||||||||||||||||
The Company capitalizes qualifying computer software costs incurred during the application development stage for internally developed software. Additionally, the Company capitalizes qualifying costs incurred for upgrades and enhancements to existing software that result in additional functionality. Costs related to preliminary project planning activities, post-implementation activities, maintenance and minor modifications are expensed as incurred. Internal-use software is amortized on a straight line basis over its estimated useful life. There were no software development costs capitalized for the years ending December 31, 2013, 2012 or 2011. | |||||||||||||||||||||||||
Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. During 2011, the Company recognized an impairment charge related to the development of the TASER Protector Platform that included $0.8 million of capitalized software development costs, following the Company’s decision to abandon this product line. | |||||||||||||||||||||||||
Amortization of capitalized software development costs related to the Company’s software as a service (“SaaS”) product, EVIDENCE.com, was $0.6 million, $1.2 million and $1.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. As of December, 31, 2013, no capitalized software development costs remain to be amortized. | |||||||||||||||||||||||||
Valuation of Goodwill, Intangibles and Long-lived Assets | ' | ||||||||||||||||||||||||
f. Valuation of Goodwill, Intangibles and Long-lived Assets | |||||||||||||||||||||||||
In the fourth quarter of 2013, the Company recorded goodwill related to the Familiar business acquisition. The recoverability of goodwill will be evaluated and tested for impairment at least annually during the fourth quarter or more often, if and when circumstances indicate that goodwill may not be recoverable. Finite-lived intangible assets and other long-lived assets are amortized over their useful lives. Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and intangible assets may warrant revision or that the remaining balance of these assets, including intangible assets with indefinite lives, may not be recoverable. | |||||||||||||||||||||||||
Circumstances that might indicate long-lived assets might not be recoverable 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 our products are branded and marketed. When performing a 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. | |||||||||||||||||||||||||
During 2011, the Company recognized an impairment charge of $1.4 million relative to its Protector product line following the Company’s decision to abandon ongoing operations for this product line. Further, the Company recognized a charge of $2.8 million during 2011, relative to the write-down / disposal of property and equipment. This charge relates to the disposal of surplus equipment for EVIDENCE.com operations, and impairment of production tooling related to the first generation AXON video product line and the TASER X3 CEW product line. No impairment losses were recorded in 2013 or 2012. | |||||||||||||||||||||||||
Customer Deposits | ' | ||||||||||||||||||||||||
g. Customer Deposits | |||||||||||||||||||||||||
The Company requires deposits in advance of shipment for certain customer sales orders. Customer deposits are recorded as a current liability in the accompanying consolidated balance sheets. | |||||||||||||||||||||||||
Revenue Recognition, Deferred Revenue and Accounts and Notes Receivable | ' | ||||||||||||||||||||||||
h. Revenue Recognition, Deferred Revenue and Accounts and Notes Receivable | |||||||||||||||||||||||||
The Company derives revenue from two primary sources: (1) the sale of physical products, including our CEWs, AXON cameras, corresponding extended warranties, and related accessories such as cartridges and batteries, and (2) subscription to our EVIDENCE.com digital evidence management 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 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. 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 Company offers customers the right to purchase extended warranties that include additional services and coverage beyond the 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 are 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. AXON equipment has stand-alone value and represents a deliverable that is provided to the customer at the time of sale, while EVIDENCE.com services are provided over the specified term of the contract. 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. In certain circumstances, not all requirements are met for the recognition of revenue relative to equipment sold in conjunction with EVIDENCE.com at the time the equipment is provided to customers. In such circumstances, based on limitations associated with the consideration, the revenue may be recognized ratably over the specified term of the contract, or when all conditions for revenue recognition are met, if sooner. | |||||||||||||||||||||||||
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 purchase as deferred revenue until all revenue recognition criteria are met, which is generally at the end of the contract period. | |||||||||||||||||||||||||
Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis. Training revenue is recorded as the service is provided. | |||||||||||||||||||||||||
Deferred revenue consists of billings and/or 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 7 for further discussion of 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. Uncollectable 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 estimate and is based on their 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. | |||||||||||||||||||||||||
The Company may, from time to time, enter into agreements with its customers to finance their purchases with a note receivable that may range in terms up to five years. Sales are recorded at the fair value of the note, which is generally sold and assigned to a third-party financing company. The terms of the assignments are such that the Company expects to receive payment within 30 days of the original sale. The assignments are non-recourse and the Company has no obligations or continuing involvement with the notes receivable. Prior to entering into an assignment, the Company evaluates the credit quality and financial condition of the third-party financing company. As of December 31, 2013, there was no balance in accounts and notes receivable related to such arrangements. As of December 31, 2012, there was a balance of $3.1 million, which was collected subsequent to year end, included in accounts and notes receivable related to such arrangements. The Company did not record any interest income on notes receivable due to minimal holding periods, nor has the Company recognized gains or losses upon the assignment of the notes. | |||||||||||||||||||||||||
Cost of Products Sold and Services Provided | ' | ||||||||||||||||||||||||
i. Cost of Products Sold and Services Provided | |||||||||||||||||||||||||
Cost of products sold represents manufacturing costs, consisting of materials, labor and overhead related to finished goods and components. Shipping costs incurred related to product delivery are also included in cost of products sold. Cost of services provided includes third party cloud services, and software maintenance costs, including personnel costs, associated with providing EVIDENCE.com. | |||||||||||||||||||||||||
Advertising Costs | ' | ||||||||||||||||||||||||
j. Advertising Costs | |||||||||||||||||||||||||
The Company expenses advertising costs in the period in which they are incurred. The Company incurred advertising costs of $0.2 million, $0.2 million and $0.3 million in the years ended December 31, 2013, 2012 and 2011, respectively. Advertising costs are included in sales, general and administrative expenses in the accompanying statements of operations. | |||||||||||||||||||||||||
Standard Warranties | ' | ||||||||||||||||||||||||
k. Standard Warranties | |||||||||||||||||||||||||
The Company warrants its CEWs, StrikeLight, AXON cameras and ETMs 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 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 condensed consolidated balance sheet. For the twelve months ended December 31, 2013, the warranty expense increased compared to the same period in the prior year primarily due to a specific reserve for a production run of Smart cartridges that had a higher than expected failure rate. During the third quarter of 2013, the Company recorded an increase in estimate related to the AXON flex on-officer camera, introduced in 2012, based on the analysis of actual return data. The X26P and AXON body were launched during 2013, which attributed to an increase in warranty expense because return estimates are less predictable than for product lines that have been in existence for more than one year. Additionally, during 2013 the Company’s product mix included products with a higher warranty cost as a percent of sales. | |||||||||||||||||||||||||
Changes in the Company’s estimated product warranty liabilities are as follows (in thousands): | |||||||||||||||||||||||||
Warranty Costs | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Balance, January 1 | $ | 484 | $ | 427 | $ | 646 | |||||||||||||||||||
Utilization of accrual | (530 | ) | (470 | ) | (529 | ) | |||||||||||||||||||
Warranty expense | 1,001 | 527 | 310 | ||||||||||||||||||||||
Balance, December 31 | $ | 955 | $ | 484 | $ | 427 | |||||||||||||||||||
Research and Development Expenses | ' | ||||||||||||||||||||||||
l. Research and Development Expenses | |||||||||||||||||||||||||
The Company expenses as incurred research and development costs that do not meet the qualifications to be capitalized. The Company incurred research and development expense of $9.9 million, $8.1 million and $10.0 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
m. Income Taxes | |||||||||||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced through the establishment of a valuation allowance if, based upon available evidence, it is determined that it is more likely than not that the deferred tax assets will not be realized. | |||||||||||||||||||||||||
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Management also assesses whether uncertain tax positions, as filed, could result in the recognition of a liability for possible interest and penalties. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Refer to Note 10 for additional information regarding the change in unrecognized tax benefits. | |||||||||||||||||||||||||
Concentration of Credit Risk and Major Customers / Suppliers | ' | ||||||||||||||||||||||||
n. Concentration of Credit Risk and Major Customers / Suppliers | |||||||||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist of accounts and notes receivable and cash. 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 losses. Uncollectable accounts are written off when deemed uncollectible, and accounts receivable are presented net of an allowance for doubtful accounts, which totaled $0.2 million as of December 31, 2013 and 2012. Historically, the Company has experienced a low level of write-offs related to doubtful accounts. During the year ended 2011, the Company recorded a reserve for bad debt expense of $0.3 million related to an account receivable from a distributor. Due to a modification of the business relationship between the Company and the distributor, the Company determined the receivable had been impaired and the entire balance should be reserved. During 2012, the balance on the account was collected. As the cash was collected, the Company reversed the allowance, resulting in a net credit to bad debt expense for the year ended December 31, 2012. | |||||||||||||||||||||||||
We maintain the majority of our cash, cash equivalents and investment accounts at three depository institutions. As of December 31, 2013, our aggregate balances in such accounts were $63.4 million. The Company’s balances with these institutions regularly exceed FDIC insured limits; however, to manage the related credit exposure, we continually monitor the credit worthiness of the financial institutions where we have deposits. | |||||||||||||||||||||||||
The Company sells its products primarily through a network of unaffiliated distributors. The Company also reserves the right to sell directly to the end user to secure the customer’s account. In 2013, 2012 and 2011 one distributor represented 12.2%, 12.8% and 12.7%, respectively, of total net sales with no other customers exceeding 10%. | |||||||||||||||||||||||||
At December 31, 2013, the Company had a trade receivable from one unaffiliated customer comprising 17.4% of the aggregate accounts receivable balance. At December 31, 2012, the Company had a trade note receivable from one unaffiliated customer comprising 17.2% of the aggregate accounts receivable balance. These customers are unaffiliated distributors of the Company’s products. | |||||||||||||||||||||||||
The Company currently purchases finished circuit boards and injection-molded plastic components from suppliers located in the U.S. Although the Company currently obtains many of these components from single source suppliers, the Company owns the injection molded component tooling used in their production. As a result, management believes it could obtain alternative suppliers in most cases without incurring significant production delays. The Company also purchases small, machined parts from a vendor in Taiwan, custom cartridge assemblies from a proprietary vendor in the U.S., and electronic components from a variety of foreign and domestic distributors. Management believes that there are readily available alternative suppliers in most cases who can consistently meet its needs for these components. The Company acquires most of its components on a purchase order basis and does not have long-term contracts with suppliers. | |||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||
o. 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 our own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||||||||
The Company has cash equivalents and investments, which at December 31, 2013 and 2012, 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 December 31, 2013 is $0.4 million 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 and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet. | |||||||||||||||||||||||||
Segment and Geographic Information | ' | ||||||||||||||||||||||||
p. Segment and Geographic Information | |||||||||||||||||||||||||
The Company is comprised of two reportable segments: the sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the video business which includes the TASER Cam, AXON Video products and EVIDENCE.com (the “EVIDENCE.com & Video” segment). 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 17. | |||||||||||||||||||||||||
For the three years ended December 31, 2013, 2012 and 2011, net sales by geographic area were as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
United States | $ | 115,674 | 84 | % | $ | 93,427 | 81 | % | $ | 72,261 | 80 | % | |||||||||||||
Other Countries | 22,157 | 16 | 21,326 | 19 | 17,767 | 20 | |||||||||||||||||||
Total | $ | 137,831 | 100 | % | $ | 114,753 | 100 | % | $ | 90,028 | 100 | % | |||||||||||||
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 years ended December 31, 2013, 2012 and 2011, no individual country outside the U.S. represented more than 10% of net sales. Substantially all of the Company’s assets are located in the U.S. | |||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||
q. Stock-Based Compensation | |||||||||||||||||||||||||
The Company calculates the fair value of stock options using the Black-Scholes-Merton option pricing valuation model, which incorporates various assumptions including volatility, expected life and risk-free interest rates. The fair value of restricted stock units is estimated as the closing price of our common stock on the date of grant. | |||||||||||||||||||||||||
No options were awarded during the years ended December 31, 2013 or 2012. The assumptions used for the year ended December 31, 2011 and the resulting estimates of weighted-average fair value per share of options granted during that period, excluding the effects of a prior exchange program, are as follows: | |||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Weighted average / range of volatility | 56 | % | |||||||||||||||||||||||
Risk-free interest rate | 1.6 | ||||||||||||||||||||||||
Dividend rate | — | ||||||||||||||||||||||||
Expected life of options | 4.5 years | ||||||||||||||||||||||||
Weighted average fair value of options granted | $ | 2.16 | |||||||||||||||||||||||
The expected life of the options represents the estimated period of time from grant date until exercise and is based on historical experience of similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Expected stock price volatility is based on a combination of historical volatility of the Company’s stock and the one-year implied volatility of its publicly traded options for the related vesting periods. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The Company has not paid dividends in the past and does not plan to pay any dividends in the near future. | |||||||||||||||||||||||||
The estimated fair value of stock-based compensation awards is amortized to expense on a straight-line basis over the requisite service periods. As stock-based compensation expense recognized is based on awards ultimately expected to vest, it is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company’s forfeiture rate was calculated based on its historical experience of awards which ultimately vested. See Note 12 for further discussion of the Company’s stock-based compensation. | |||||||||||||||||||||||||
Income (Loss) per Common Share | ' | ||||||||||||||||||||||||
r. Income (Loss) per Common Share | |||||||||||||||||||||||||
Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods presented. Diluted income per share reflects the potential dilution that would occur if outstanding stock options were exercised utilizing the treasury stock method. The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||
Net income (loss) | $ | 18,244 | $ | 14,738 | $ | (7,040 | ) | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||||
Weighted average shares outstanding—basic | 51,880 | 53,827 | 59,436 | ||||||||||||||||||||||
Dilutive effect of stock-based awards | 2,272 | 896 | — | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 54,152 | 54,723 | 59,436 | ||||||||||||||||||||||
Anti-dilutive stock-based awards excluded (1) | 507 | 3,205 | 6,972 | ||||||||||||||||||||||
Net income (loss) per common share: | |||||||||||||||||||||||||
Basic | $ | 0.35 | $ | 0.27 | $ | (0.12 | ) | ||||||||||||||||||
Diluted | 0.34 | 0.27 | (0.12 | ) | |||||||||||||||||||||
-1 | For the year ended December 31, 2011, all outstanding awards were excluded from the computation of diluted net loss per common share because inclusion would be anti-dilutive, reducing the net loss per share. These figures also include performance-based options and RSUs for which the performance criteria have not been met. | ||||||||||||||||||||||||
Recently Issued Accounting Guidance [TBU] | ' | ||||||||||||||||||||||||
s. Recently Issued Accounting Guidance | |||||||||||||||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update (“ASU”) to standardize the balance sheet presentation of unrecognized tax benefits. This update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The new guidance is effective for fiscal years beginning after December 15, 2013, and early adoption is allowed. The adoption of this guidance will result in a reclassification on the Company’s consolidated balance sheet. Had the company adopted this guidance as of December 31, 2013, the balance of our long-term deferred tax asset would have decreased by approximately $1.5 million and the liability for unrecognized tax benefits would have decreased by the same amount. | |||||||||||||||||||||||||
In February 2013, the FASB issued an ASU requiring entities to provide information about the amounts reclassified out of accumulated other comprehensive income (loss) (“OCI”) by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated OCI by the respective line items of net income, but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The new guidance is effective for fiscal years beginning after December 15, 2012. The amendments do not change the current requirements for reporting net income or OCI in financial statements and our adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||||
In July 2012, the FASB issued an ASU to simplify the impairment testing for indefinite-lived intangibles by allowing an entity to first assess qualitative factors, considering the totality of events and circumstances, to determine that it is more likely than not that the carrying amount of a reporting unit is less than its fair value. If it is not, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test. The new guidance was effective for annual and interim impairment tests for fiscal years beginning after September 15, 2012. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. | |||||||||||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||||||||||
t. Foreign Currency Translation | |||||||||||||||||||||||||
The Company’s foreign subsidiary uses the local currency as its functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated OCI on the consolidated balance sheets. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Summary of Changes in Estimated Product Warranty Liabilities | ' | ||||||||||||||||||||||||
Changes in the Company’s estimated product warranty liabilities are as follows (in thousands): | |||||||||||||||||||||||||
Warranty Costs | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Balance, January 1 | $ | 484 | $ | 427 | $ | 646 | |||||||||||||||||||
Utilization of accrual | (530 | ) | (470 | ) | (529 | ) | |||||||||||||||||||
Warranty expense | 1,001 | 527 | 310 | ||||||||||||||||||||||
Balance, December 31 | $ | 955 | $ | 484 | $ | 427 | |||||||||||||||||||
Net Sales by Geographic Area | ' | ||||||||||||||||||||||||
For the three years ended December 31, 2013, 2012 and 2011, net sales by geographic area were as follows (in thousands): | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
United States | $ | 115,674 | 84 | % | $ | 93,427 | 81 | % | $ | 72,261 | 80 | % | |||||||||||||
Other Countries | 22,157 | 16 | 21,326 | 19 | 17,767 | 20 | |||||||||||||||||||
Total | $ | 137,831 | 100 | % | $ | 114,753 | 100 | % | $ | 90,028 | 100 | % | |||||||||||||
Assumptions Used and The Resulting Estimates of Weighted Average Fair Value Per Share of Options Granted | ' | ||||||||||||||||||||||||
The assumptions used for the year ended December 31, 2011 and the resulting estimates of weighted-average fair value per share of options granted during that period, excluding the effects of a prior exchange program, are as follows: | |||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Weighted average / range of volatility | 56 | % | |||||||||||||||||||||||
Risk-free interest rate | 1.6 | ||||||||||||||||||||||||
Dividend rate | — | ||||||||||||||||||||||||
Expected life of options | 4.5 years | ||||||||||||||||||||||||
Weighted average fair value of options granted | $ | 2.16 | |||||||||||||||||||||||
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): | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||
Net income (loss) | $ | 18,244 | $ | 14,738 | $ | (7,040 | ) | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||||
Weighted average shares outstanding—basic | 51,880 | 53,827 | 59,436 | ||||||||||||||||||||||
Dilutive effect of stock-based awards | 2,272 | 896 | — | ||||||||||||||||||||||
Diluted weighted average shares outstanding | 54,152 | 54,723 | 59,436 | ||||||||||||||||||||||
Anti-dilutive stock-based awards excluded (1) | 507 | 3,205 | 6,972 | ||||||||||||||||||||||
Net income (loss) per common share: | |||||||||||||||||||||||||
Basic | $ | 0.35 | $ | 0.27 | $ | (0.12 | ) | ||||||||||||||||||
Diluted | 0.34 | 0.27 | (0.12 | ) | |||||||||||||||||||||
-1 | For the year ended December 31, 2011, all outstanding awards were excluded from the computation of diluted net loss per common share because inclusion would be anti-dilutive, reducing the net loss per share. These figures also include performance-based options and RSUs for which the performance criteria have not been met. |
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type | ' | ||||||||||||||||||||||||||||||||
The following is a summary of cash, cash equivalents and held-to-maturity investments by type at December 31 (in thousands): | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||
Cash and money market funds | $ | 42,226 | $ | — | $ | — | $ | 42,226 | $ | 36,127 | $ | — | $ | — | $ | 36,127 | |||||||||||||||||
State and municipal obligations | 10,807 | 14 | — | 10,821 | — | — | — | — | |||||||||||||||||||||||||
Corporate bonds | 7,743 | 2 | (14 | ) | 7,731 | 1 | — | — | 1 | ||||||||||||||||||||||||
Certificate of deposit | 2,619 | — | — | 2,619 | 1,680 | — | (1 | ) | 1,679 | ||||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 63,395 | $ | 16 | $ | (14 | ) | $ | 63,397 | $ | 37,808 | $ | — | $ | (1 | ) | $ | 37,807 | |||||||||||||||
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 December 31, 2013 by contractual maturity (in thousands): | |||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||
Due in less than one year | $ | 9,101 | $ | 9,103 | |||||||||||||||||||||||||||||
Due after one year, through two years | 12,023 | 12,022 | |||||||||||||||||||||||||||||||
Total short-term and long-term investments | $ | 21,124 | $ | 21,125 | |||||||||||||||||||||||||||||
Schedule of Company's Investments Measured at Fair Value | ' | ||||||||||||||||||||||||||||||||
The following table presents information about the Company’s investments that are measured at fair value as of December 31, 2013, and indicates the fair value hierarchy of the valuation (in thousands): | |||||||||||||||||||||||||||||||||
Amortized Cost | Quoted Prices | Siginificant | Significant | Total Fair Value | |||||||||||||||||||||||||||||
in Active | Other | Unbservable | |||||||||||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||||||||||
Cash | $ | 37,196 | $ | 37,196 | $ | — | $ | — | $ | 37,196 | |||||||||||||||||||||||
Money market funds | 5,030 | 5,030 | — | — | 5,030 | ||||||||||||||||||||||||||||
Certificates of deposit | 2,619 | — | 2,619 | — | 2,619 | ||||||||||||||||||||||||||||
Corporate bonds | 7,743 | 7,732 | — | — | 7,732 | ||||||||||||||||||||||||||||
State and municipal obligations | 10,807 | — | 10,820 | — | 10,820 | ||||||||||||||||||||||||||||
Total cash, cash equivalents and investments | $ | 63,395 | $ | 49,958 | $ | 13,439 | $ | — | $ | 63,397 | |||||||||||||||||||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 7,376 | $ | 9,690 | |||||
Work-in-process | 44 | 131 | |||||||
Finished goods | 4,688 | 3,492 | |||||||
Reserve for excess and obsolete inventory | (999 | ) | (2,320 | ) | |||||
Total inventory | $ | 11,109 | $ | 10,993 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||||||
Summary of Property and Equipment | ' | ||||||||||||
Property and equipment consisted of the following at December 31 (in thousands): | |||||||||||||
Estimated | |||||||||||||
Useful Life | 2013 | 2012 | |||||||||||
Land | N/A | $ | 2,900 | $ | 2,900 | ||||||||
Building and leasehold improvements | 39 years | 13,922 | 13,862 | ||||||||||
Production equipment | 3-7 years | 18,047 | 18,180 | ||||||||||
Computer equipment | 3-5 years | 7,789 | 7,481 | ||||||||||
Furniture and office equipment | 5-7 years | 2,646 | 3,359 | ||||||||||
Vehicles | 5 years | 270 | 270 | ||||||||||
Website development costs | 3 years | 601 | 601 | ||||||||||
Capitalized software development costs | 3 years | 3,670 | 3,670 | ||||||||||
Construction-in-process | N/A | 576 | 522 | ||||||||||
Total cost | 50,421 | 50,845 | |||||||||||
Less: Accumulated depreciation | (31,378 | ) | (28,893 | ) | |||||||||
Property and equipment, net | $ | 19,043 | $ | 21,952 | |||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Intangible Assets Other than goodwill | ' | ||||||||||||||||||||||||||||
Intangible assets (other than goodwill) consisted of the following (in thousands): | |||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||||||
Useful | Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||||||||||
Life | Amount | Amortization | Amount | Amount | Amortization | Amount | |||||||||||||||||||||||
Amortized: | |||||||||||||||||||||||||||||
Domain names | 5 years | $ | 125 | $ | (102 | ) | $ | 23 | $ | 139 | $ | (104 | ) | $ | 35 | ||||||||||||||
Issued patents | 4-15 years | 1,529 | (441 | ) | 1,088 | 1,529 | (361 | ) | 1,168 | ||||||||||||||||||||
Issued trademarks | 9-11 years | 437 | (147 | ) | 290 | 362 | (102 | ) | 260 | ||||||||||||||||||||
Total amortized | 2,091 | (690 | ) | 1,401 | 2,030 | (567 | ) | 1,463 | |||||||||||||||||||||
Not amortized: | |||||||||||||||||||||||||||||
TASER trademark | 900 | 900 | 900 | 900 | |||||||||||||||||||||||||
Patents and trademarks pending | 1,015 | 1,015 | 954 | 954 | |||||||||||||||||||||||||
Total not amortized | 1,915 | 1,915 | 1,854 | 1,854 | |||||||||||||||||||||||||
Total intangible assets | $ | 4,006 | $ | (690 | ) | $ | 3,316 | $ | 3,884 | $ | (567 | ) | $ | 3,317 | |||||||||||||||
Estimated Amortization Expense of Intangible Assets | ' | ||||||||||||||||||||||||||||
Estimated amortization for intangible assets with definitive lives for the next five years is as follows for the year ended December 31 (in thousands): | |||||||||||||||||||||||||||||
2014 | $ | 156 | |||||||||||||||||||||||||||
2015 | 148 | ||||||||||||||||||||||||||||
2016 | 141 | ||||||||||||||||||||||||||||
2017 | 137 | ||||||||||||||||||||||||||||
2018 | 127 | ||||||||||||||||||||||||||||
Thereafter | 692 | ||||||||||||||||||||||||||||
Total | $ | 1,401 | |||||||||||||||||||||||||||
Deferred_Revenue_Tables
Deferred Revenue (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Revenue Recognition [Abstract] | ' | ||||||||
Summary of Deferred Revenue | ' | ||||||||
Deferred revenue consisted of the following at December 31 (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Warranty | $ | 15,889 | $ | 10,831 | |||||
EVIDENCE.com | 4,026 | 1,292 | |||||||
Other | 304 | — | |||||||
Total deferred revenue | 20,219 | 12,123 | |||||||
Total current portion of deferred revenue | 6,878 | 4,287 | |||||||
Total long-term portion of deferred revenue | $ | 13,341 | $ | 7,836 | |||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities consisted of the following at December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Accrued salaries and benefits | $ | 2,328 | $ | 2,415 | |||||
Accrued judgments and settlements | 3,350 | 2,090 | |||||||
Accrued warranty expense | 955 | 484 | |||||||
Accrued income and other taxes | 233 | 296 | |||||||
Other accrued expenses | 1,974 | 1,780 | |||||||
Accrued liabilities | $ | 8,840 | $ | 7,065 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Lease Obligations | ' | ||||||||||||||||||||||||||
Future minimum lease payments under non-cancelable leases at December 31, 2013, are as follows (dollars in thousands): | |||||||||||||||||||||||||||
Operating | Capital | ||||||||||||||||||||||||||
2014 | $ | 374 | $ | 38 | |||||||||||||||||||||||
2015 | 172 | 38 | |||||||||||||||||||||||||
2016 | 89 | 22 | |||||||||||||||||||||||||
2017 | 54 | — | |||||||||||||||||||||||||
2018 | — | — | |||||||||||||||||||||||||
Thereafter | — | — | |||||||||||||||||||||||||
Total minimum lease payments | $ | 689 | 98 | ||||||||||||||||||||||||
Less: Amount representing interest | 5 | ||||||||||||||||||||||||||
Capital lease obligation | $ | 103 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Grable | 8-Aug | 6th Judicial Circuit Court, Pinellas County, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Koon | 8-Dec | 17th Judicial Circuit Court, Broward County, FL | Training Injury | Discovery Phase | |||||||||||||||||||||||
Derbyshire | 9-Nov | Ontario, Canada Superior Court of Justice | Officer Injury | Discovery Phase | |||||||||||||||||||||||
Thompson | 10-Mar | 11th Judicial Circuit Court, Miami-Dade County, FL | Suspect Injury During Arrest | Discovery Phase | |||||||||||||||||||||||
Doan | 10-Apr | The Queens Bench Alberta, Red Deer Judicial Dist. | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Shymko | 10-Dec | The Queens Bench, Winnipeg Centre, Manitoba | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Juran | 10-Dec | Hennepin County District Court, 4th Judicial District | Officer Injury | Discovery Phase | |||||||||||||||||||||||
Wilson | 11-May | US District Court, ED MO | Wrongful Death | Discovery Phase; trial scheduled for November 2014 | |||||||||||||||||||||||
Ramsey | 12-Jan | 17th Judicial Circuit Court, Broward County, FL | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Mitchell | 12-Apr | US District Court, ED MI | Wrongful Death | Discovery Phase,; trial scheduled June 2014 | |||||||||||||||||||||||
Firman | 12-Apr | Ontario, Canada Superior Court of Justice | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Ricks | 12-May | US District Court, WD LA | Wrongful Death | Motion Phase | |||||||||||||||||||||||
Miller | 13-Jan | New Castle County Superior Court, DE | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
Salgado | 13-Feb | US District Court, SD FL | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Slade | 13-Dec | US District Court, ED TX | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Turner | 10-Feb | US District Court, ED NC | Wrongful Death | Appeal fully briefed; Oral argument held September 2013; remanded to trial on damages only. | |||||||||||||||||||||||
Summary of Other Product Litigation Matters | ' | ||||||||||||||||||||||||||
In addition, other product litigation matters in which the Company is involved that are currently on appeal are listed below: | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Bachtel | 11-Aug | 14th Judicial Circuit Court, Randolph County, MO | Wrongful Death | Appeal fully briefed; Oral Argument held on January 14, 2014. | |||||||||||||||||||||||
Glowczenski | 4-Oct | US District Court, ED NY | Wrongful Death | Notice of Appeal filed September 2013; Opening Brief was filed January 2014; Answering Brief is due April 2014. | |||||||||||||||||||||||
Summary of Cases Dismissed or Judgment Entered | ' | ||||||||||||||||||||||||||
Cases that were dismissed or judgment entered during the fourth quarter of 2013 and through the filing date of this Annual Report on Form 10-K are listed in the table below. Cases that were dismissed or judgment entered in prior fiscal quarters are not included in this table. | |||||||||||||||||||||||||||
Month | |||||||||||||||||||||||||||
Plaintiff | Served | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Armstrong | 13-Apr | US District Court, MD NC | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Barnes | 13-Apr | US District Court, WD PA | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Athetis | 9-May | Superior Court, AZ | Wrongful Death | Motion for Summary Judgment | |||||||||||||||||||||||
Duensing | 12-Feb | US District Court, NV | Suspect Injury During Arrest | Motion to Dismiss | |||||||||||||||||||||||
Rich | 10-Feb | US District Court, NV | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Peppler | 9-Apr | 5th Judicial Court for Sumter CO, FL | Training Injury | Voluntary Dismissal | |||||||||||||||||||||||
Wingard | 12-Oct | US District Court, WD PA | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Manjares | 12-Nov | US District Court, ED WA | Suspect Injury During Arrest | Voluntary Dismissal | |||||||||||||||||||||||
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 | Policy | Insurance | Deductible | Defense | Remaining | Active Cases and Cases on | ||||||||||||||||||||
Start | End | Coverage | Amount | Costs | Insurance | Appeal | |||||||||||||||||||||
Date | Date | Covered | Coverage | ||||||||||||||||||||||||
2004 | 12/1/03 | 12/1/04 | $ | 2 | $ | 0.1 | N | $ | 2 | Glowczenski | |||||||||||||||||
2005 | 12/1/04 | 12/1/05 | 10 | 0.3 | Y | 7 | n/a | ||||||||||||||||||||
2006 | 12/1/05 | 12/1/06 | 10 | 0.3 | Y | 3.7 | n/a | ||||||||||||||||||||
2007 | 12/1/06 | 12/1/07 | 10 | 0.3 | Y | 8 | n/a | ||||||||||||||||||||
2008 | 12/1/07 | 12/15/08 | 10 | 0.5 | Y | 2.6 | Grable, Koon, Turner | ||||||||||||||||||||
2009 | 12/15/08 | 12/15/09 | 10 | 1 | N | 10 | Derbyshire | ||||||||||||||||||||
2010 | 12/15/09 | 12/15/10 | 10 | 1 | N | 10 | Thompson, Shymko, Doan, Juran | ||||||||||||||||||||
2011 | 12/15/10 | 12/15/11 | 10 | 1 | N | 10 | Wilson, Bachtel | ||||||||||||||||||||
Jan—Jun 2012 | 12/15/11 | 6/25/12 | 7 | 1 | N | 7 | Ramsey, Mitchell, Firman, Ricks | ||||||||||||||||||||
Jul—Dec 2012 | 6/25/12 | 12/15/12 | 12 | 1 | N | 12 | n/a | ||||||||||||||||||||
2013 | 12/15/12 | 12/15/13 | 12 | 1 | N | 12 | Miller, Salgado | ||||||||||||||||||||
2014 | 12/15/13 | 12/15/14 | 12 | 4 | N | 12 | Slade |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of Deferred Income Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company’s deferred income tax assets and liabilities are as follows at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating loss carryforward | $ | 513 | $ | 47 | |||||||||
Deferred warranty revenue | 2,837 | 1,759 | |||||||||||
Inventory reserve | 389 | 906 | |||||||||||
Non-qualified and non-employee stock option expense | 3,518 | 3,682 | |||||||||||
Capitalized research and development | 6,588 | 8,191 | |||||||||||
Alternative minimum tax carryforward | 1,466 | 1,406 | |||||||||||
Research and development tax credit carryforward | 3,165 | 2,936 | |||||||||||
Deferred legal settlement | 1,294 | 723 | |||||||||||
IRC section 481(a) adjustment—tangible property | 1,316 | — | |||||||||||
Reserves, accruals, and other | 2,066 | 2,156 | |||||||||||
Total deferred income tax assets | 23,152 | 21,806 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation | (2,136 | ) | (662 | ) | |||||||||
Amortization | (236 | ) | (142 | ) | |||||||||
Total deferred income tax liabilities | (2,372 | ) | (804 | ) | |||||||||
Net deferred income tax assets | $ | 20,780 | $ | 21,002 | |||||||||
Net Deferred Tax Assets | ' | ||||||||||||
The Company’s net deferred tax assets are presented as follows on the accompanying consolidated balance sheets at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets, net | $ | 7,101 | $ | 9,396 | |||||||||
Long-term deferred tax assets, net | 13,679 | 11,606 | |||||||||||
Total | $ | 20,780 | $ | 21,002 | |||||||||
Significant Components of the Provision (Benefit) for Income Taxes | ' | ||||||||||||
Significant components of the provision (benefit) for income taxes are as follows for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 7,963 | $ | 4,605 | $ | 133 | |||||||
State | 987 | 666 | 59 | ||||||||||
Total current | 8,950 | 5,271 | 192 | ||||||||||
Deferred: | |||||||||||||
Federal | 764 | 3,168 | (3,253 | ) | |||||||||
State | (143 | ) | (1,485 | ) | 771 | ||||||||
Total deferred | 621 | 1,683 | (2,482 | ) | |||||||||
Tax provision (benefit) recorded as an increase (decrease) in liability for unrecorded tax benefits | 219 | 920 | (299 | ) | |||||||||
Provision (benefit) for income taxes | $ | 9,790 | $ | 7,874 | $ | (2,589 | ) | ||||||
Reconciliation of the Company's Effective Income Tax Rate to the Federal Statutory Rate | ' | ||||||||||||
A reconciliation of the Company’s effective income tax rate to the Federal statutory rate for the years ended December 31, 2013, 2012 and 2011 is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal income tax at the statutory rate | $ | 9,812 | $ | 7,914 | $ | (3,370 | ) | ||||||
State income taxes, net of federal benefit | 1,283 | 969 | (357 | ) | |||||||||
Permanent differences (i) | (96 | ) | 156 | 231 | |||||||||
Research and development | (386 | ) | (327 | ) | (230 | ) | |||||||
Return to provision adjustment (ii) | (361 | ) | (270 | ) | (458 | ) | |||||||
Change in liability for unrecognized tax benefits | 219 | 921 | (299 | ) | |||||||||
Incentive stock option detriment/(benefit) | (538 | ) | 174 | 449 | |||||||||
Change in valuation allowance | — | (1,429 | ) | 1,429 | |||||||||
Other | (143 | ) | (234 | ) | 16 | ||||||||
Povision (benefit) for income taxes | $ | 9,790 | $ | 7,874 | $ | (2,589 | ) | ||||||
Effective tax rate | 34.9 | % | 34.8 | % | 26.9 | % | |||||||
(i) | Permanent differences include certain expenses that are not deductible for tax purposes including lobbying fees as well as favorable items including the domestic production activities deduction | ||||||||||||
(ii) | The 2011 return to provision adjustment was driven by higher than estimated 2010 R&D tax credits, which increased the net tax benefit and therefore, reduced the effective tax rate. The 2012 return to provision adjustment was driven by higher than estimated 2011 R&D tax credits which increased the net tax benefit and therefore, reduced the effective tax rate. The 2013 return to provision adjustment was driven by the domestic production activities deduction which decreased taxable income, and therefore, reduced the effective tax rate. | ||||||||||||
Roll Forward of Liability for Unrecognized Tax Benefits Exclusive of Accrued Interest | ' | ||||||||||||
The following table presents a roll forward of our liability for unrecognized tax benefits, exclusive of accrued interest, as of December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of period | $ | 2,903 | $ | 1,982 | $ | 2,282 | |||||||
Increase in previous year tax positions | 57 | 659 | — | ||||||||||
Increase in current year tax positions | 144 | 151 | 83 | ||||||||||
Increase (decrease) related to adjustment of previous estimates of activity | 6 | 111 | (383 | ) | |||||||||
Balance, end of period | $ | 3,110 | $ | 2,903 | $ | 1,982 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Summary of Restricted Stock Unit Activity | ' | ||||||||||||||||||||||||
The following table summarizes RSU activity for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | ||||||||||||||||||||
of | Grant-Date | of | Grant-Date | of | Grant-Date | ||||||||||||||||||||
Units | Fair Value | Units | Fair Value | Units | Fair Value | ||||||||||||||||||||
Units outstanding, beginning of year | 582,212 | $ | 5.42 | 1,096 | $ | 4.76 | 50 | $ | 4.24 | ||||||||||||||||
Granted | 1,054,293 | 10.72 | 713,148 | 5.4 | 1,046 | 4.78 | |||||||||||||||||||
Released | (257,693 | ) | 5.44 | (97,007 | ) | 5.3 | — | ||||||||||||||||||
Forfeited | (99,689 | ) | 6.86 | (35,025 | ) | 5.29 | — | ||||||||||||||||||
Units outstanding, end of year | 1,279,123 | 9.67 | 582,212 | 5.42 | 1,096 | 4.76 | |||||||||||||||||||
Aggregate intrinsic value at year end | $ | 20,312,473 | |||||||||||||||||||||||
Summary of the Company's Stock Options Activity | ' | ||||||||||||||||||||||||
The following table summarizes stock option activity for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted | Weighted | Weighted | |||||||||||||||||||||||
Number | Average | Number | Average | Number | Average | ||||||||||||||||||||
of | Exercise | of | Exercise | of | Exercise | ||||||||||||||||||||
Options | Price | Options | Price | Options | Price | ||||||||||||||||||||
Options outstanding, beginning of year | 6,321,076 | $ | 6.05 | 7,576,493 | $ | 5.75 | 7,507,236 | $ | 5.71 | ||||||||||||||||
Granted | — | — | 1,018,182 | 4.65 | |||||||||||||||||||||
Exercised | (2,671,058 | ) | 5.75 | (784,383 | ) | 2.46 | (539,923 | ) | 2.64 | ||||||||||||||||
Expired / terminated | (284,326 | ) | 7.83 | (471,034 | ) | 7.15 | (409,002 | ) | 6.38 | ||||||||||||||||
Options outstanding, end of year | 3,365,692 | 6.15 | 6,321,076 | 6.05 | 7,576,493 | 5.75 | |||||||||||||||||||
Options exercisable, end of year | 3,217,146 | 6.22 | 5,278,243 | 6.31 | 6,432,667 | 6.02 | |||||||||||||||||||
Options expected to vest, end of year | 103,362 | 4.54 | |||||||||||||||||||||||
Summary of Stock Options Outstanding and Exercisable | ' | ||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable as of December 31, 2013: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||
Weighted | Average | Weighted | Average | ||||||||||||||||||||||
Number of | Average | Remaining | Number of | Average | Remaining | ||||||||||||||||||||
Range of | Options | Exercise | Contractual | Options | Exercise | Contractual | |||||||||||||||||||
Exercise Price | Outstanding | Price | Life (Years) | Exercisable | Price | Life (Years) | |||||||||||||||||||
$3.53 - $5.00 | 1,886,679 | $ | 4.62 | 5.9 | 1,739,833 | $ | 4.63 | 5.8 | |||||||||||||||||
$5.01 - $7.00 | 528,221 | 5.6 | 5.2 | 526,521 | 5.6 | 5.1 | |||||||||||||||||||
$7.01 - $10.00 | 649,381 | 7.72 | 3 | 649,381 | 7.72 | 3 | |||||||||||||||||||
$10.01 - $15.00 | 194,763 | 10.31 | 3.4 | 194,763 | 10.31 | 3.4 | |||||||||||||||||||
$15.01 - $29.83 | 106,648 | 18.69 | 0.4 | 106,648 | 18.69 | 0.4 | |||||||||||||||||||
$3.53 - $29.83 | 3,365,692 | 6.15 | 4.9 | 3,217,146 | 6.22 | 4.8 | |||||||||||||||||||
Reported Share-Based Compensation | ' | ||||||||||||||||||||||||
The Company accounts for stock-based compensation using the fair-value method. Reported stock-based compensation was classified as follows for the years ended December 31 (in thousands): | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Cost of products sold | $ | 175 | $ | 172 | $ | 121 | |||||||||||||||||||
Sales, general and administrative expenses | 3,158 | 2,647 | 2,291 | ||||||||||||||||||||||
Research and development expenses | 1,007 | 603 | 626 | ||||||||||||||||||||||
Total stock-based compensation | $ | 4,340 | $ | 3,422 | $ | 3,038 | |||||||||||||||||||
Segment_Data_Tables
Segment Data (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
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): | |||||||||||||
2013 | |||||||||||||
TASER | EVIDENCE.com | Total | |||||||||||
Weapons | & Video | ||||||||||||
Product sales | $ | 127,474 | $ | 8,649 | $ | 136,123 | |||||||
Service revenue | — | 1,708 | 1,708 | ||||||||||
Net sales | 127,474 | 10,357 | 137,831 | ||||||||||
Cost of products sold | 44,025 | 6,074 | 50,099 | ||||||||||
Cost of services delivered | — | 1,889 | 1,889 | ||||||||||
Gross margin | 83,449 | 2,394 | 85,843 | ||||||||||
Sales, general & administrative | 40,201 | 6,383 | 46,584 | ||||||||||
Research & development | 4,311 | 5,577 | 9,888 | ||||||||||
Litigation judgment recovery | 1,450 | — | 1,450 | ||||||||||
Gain on write down / disposal of property and equipment, net | (27 | ) | — | (27 | ) | ||||||||
Income (loss) from operations | $ | 37,514 | $ | (9,566 | ) | $ | 27,948 | ||||||
Purchase of property and equipment | $ | 1,324 | $ | 459 | $ | 1,783 | |||||||
Purchase of intangible assets | 307 | 16 | 323 | ||||||||||
Depreciation and amortization | 4,011 | 1,120 | 5,131 | ||||||||||
2012 | |||||||||||||
TASER | EVIDENCE.com | Total | |||||||||||
Weapons | & Video | ||||||||||||
Product sales | $ | 109,055 | $ | 5,071 | $ | 114,126 | |||||||
Service revenue | — | 627 | 627 | ||||||||||
Net sales | 109,055 | 5,698 | 114,753 | ||||||||||
Cost of products sold | 39,350 | 3,773 | 43,123 | ||||||||||
Cost of services delivered | — | 3,915 | 3,915 | ||||||||||
Gross margin | 69,705 | (1,990 | ) | 67,715 | |||||||||
Sales, general & administrative | 35,576 | 3,510 | 39,086 | ||||||||||
Research & development | 3,938 | 4,201 | 8,139 | ||||||||||
Litigation judgment | (2,200 | ) | — | (2,200 | ) | ||||||||
Loss on write down / disposal of property and equipment, net | 161 | — | 161 | ||||||||||
Income (loss) from operations | $ | 32,230 | $ | (9,701 | ) | $ | 22,529 | ||||||
Purchase of property and equipment | $ | 922 | $ | 412 | $ | 1,334 | |||||||
Purchase of intangible assets | 429 | — | 429 | ||||||||||
Depreciation and amortization | 4,327 | 2,192 | 6,519 | ||||||||||
2011 | |||||||||||||
TASER | EVIDENCE.com | Total | |||||||||||
Weapons | & Video | ||||||||||||
Product sales | $ | 86,675 | $ | 3,001 | $ | 89,676 | |||||||
Service revenue | — | 352 | 352 | ||||||||||
Net sales | 86,675 | 3,353 | 90,028 | ||||||||||
Cost of products sold | 34,213 | 2,693 | 36,906 | ||||||||||
Cost of services delivered | — | 4,847 | 4,847 | ||||||||||
Excess inventory charges | 1,749 | 1,997 | 3,746 | ||||||||||
Gross margin | 50,713 | (6,184 | ) | 44,529 | |||||||||
Sales, general & administrative | 34,794 | 3,207 | 38,001 | ||||||||||
Research & development | 5,445 | 4,544 | 9,989 | ||||||||||
Litigation judgment | 3,301 | — | 3,301 | ||||||||||
Loss on impairment | 1,354 | — | 1,354 | ||||||||||
Loss on write down / disposal of property and equipment, net | 643 | 2,157 | 2,800 | ||||||||||
Income (loss) from operations | $ | 5,176 | $ | (16,092 | ) | $ | (10,916 | ) | |||||
Purchase of property and equipment | $ | 1,501 | $ | 353 | $ | 1,854 | |||||||
Purchase of intangible assets | 413 | — | 413 | ||||||||||
Depreciation and amortization | 5,409 | 2,688 | 8,097 |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Selected Quarterly Financial Data | ' | ||||||||||||||||
Selected quarterly financial data for years ended December 31, 2013 and 2012 follows (in thousands): | |||||||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Net sales | $ | 30,434 | $ | 32,175 | $ | 35,197 | $ | 40,025 | |||||||||
Gross margin | 18,451 | 19,742 | 22,096 | 25,554 | |||||||||||||
Net income | 3,298 | 4,457 | 5,114 | 5,375 | |||||||||||||
Basic net income per share | $ | 0.06 | $ | 0.09 | $ | 0.1 | $ | 0.1 | |||||||||
Diluted net income per share | 0.06 | 0.08 | 0.1 | 0.1 | |||||||||||||
Quarter Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
Net sales | $ | 25,641 | $ | 28,223 | $ | 28,773 | $ | 32,116 | |||||||||
Gross margin | 15,241 | 16,503 | 16,803 | 19,168 | |||||||||||||
Net income | 3,804 | 3,442 | 3,677 | 3,815 | |||||||||||||
Basic net income per share | $ | 0.07 | $ | 0.06 | $ | 0.07 | $ | 0.07 | |||||||||
Diluted net income per share | 0.07 | 0.06 | 0.07 | 0.07 |
Supplemental_Disclosure_to_Cas1
Supplemental Disclosure to Cash Flows (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Summary of Supplemental Non-Cash and Other Cash Flow Information | ' | ||||||||||||
Supplemental non-cash and other cash flow information are as follows for the years ended December 31 (in thousands), | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash paid for income taxes—net | $ | 3,625 | $ | 1,079 | $ | 52 | |||||||
Non Cash Transactions: | |||||||||||||
Stock issued for business acquisition | $ | 1,578 | $ | — | $ | — | |||||||
Property and equipment purchases in accounts payable | 279 | 113 | 81 | ||||||||||
Purchase of assets under capital lease obligations | — | 147 | — |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Source | Customer | Customer | |
Distributor | Distributor | Distributor | |
Customer | |||
Depository | |||
Segment | |||
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Capitalized software development costs | $0 | $0 | $0 |
Remaining amortized relating to capitalized software development costs | 31,378,000 | 28,893,000 | ' |
Impairment charge | ' | ' | 1,354,000 |
Impairment losses | 0 | 0 | ' |
Number of revenue sources | 2 | ' | ' |
Note receivable in term | '5 years | ' | ' |
Company receive payment | '30 days | ' | ' |
Accounts and notes receivable related to purchases | 0 | 3,100,000 | ' |
Advertising Cost | 200,000 | 200,000 | 300,000 |
Warranty period | '1 year | ' | ' |
Research and development costs | 9,888,000 | 8,139,000 | 9,989,000 |
Minimum Percentage of tax benefit to be realized upon final settlement | 50.00% | ' | ' |
Allowance for doubtful accounts | 200,000 | 200,000 | ' |
Reserve for bad debt expense | 24,000 | -242,000 | 296,000 |
Number of depository institutions | 3 | ' | ' |
Aggregate balances in accounts | 63,400,000 | ' | ' |
Percentage of total net sales represented | 10.00% | 10.00% | 10.00% |
Unaffiliated distributors | 1 | 1 | 1 |
Accounts and notes receivable by customers one | 17.40% | 17.20% | ' |
Unaffiliated customers | 1 | 1 | ' |
Corporate owned life insurance policies fair value | 400,000 | ' | ' |
Number of reportable segments of company | 2 | ' | ' |
Aggregated operating segments | 0 | ' | ' |
Number of customer outside the united states | 0 | 0 | 0 |
Options awarded | 0 | 0 | ' |
Implied volatility period of publicly traded options | '1 year | ' | ' |
Decrease in long term deferred tax asset due to adoption of new accounting guidance | 1,500,000 | ' | ' |
Decrease in unrecognized tax benefits due to adoption of new accounting guidance | 1,500,000 | ' | ' |
Distributor [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Reserve for bad debt expense | ' | ' | 300,000 |
Sales [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Percentage of total net sales represented | 12.20% | 12.80% | 12.70% |
Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Service term for services purchased | '1 year | ' | ' |
Contractual Period of entities assurance program | '3 years | ' | ' |
Minimum [Member] | Sales [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Percentage of total net sales represented | 10.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Service term for services purchased | '5 years | ' | ' |
Contractual Period of entities assurance program | '5 years | ' | ' |
Parent [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Capitalized software development costs | ' | ' | 800,000 |
Evidence. Com [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Amortization of capitalized software development costs | 600,000 | 1,200,000 | 1,300,000 |
Remaining amortized relating to capitalized software development costs | 0 | ' | ' |
Protector Product Line [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Impairment charge | ' | ' | 1,400,000 |
Impairment charge of long-lived assets | ' | ' | $2,800,000 |
Extended Product Warranty [Member] | Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Period of extended warranty after expiration of standard warranty | '1 year | ' | ' |
Extended Product Warranty [Member] | Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' |
Period of extended warranty after expiration of standard warranty | '5 years | ' | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies - Summary of Changes in Estimated Product Warranty Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' | ' |
Balance, January 1 | $484 | $427 | $646 |
Utilization of accrual | -530 | -470 | -529 |
Warranty expense | 1,001 | 527 | 310 |
Balance, December 31 | $955 | $484 | $427 |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies - Net Sales by Geographic Area (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales by Geographic Area | $137,831 | $114,753 | $90,028 |
Percentage of Net sales by Geographic Area | 100.00% | 100.00% | 100.00% |
United States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales by Geographic Area | 115,674 | 93,427 | 72,261 |
Percentage of Net sales by Geographic Area | 84.00% | 81.00% | 80.00% |
Other Countries [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales by Geographic Area | $22,157 | $21,326 | $17,767 |
Percentage of Net sales by Geographic Area | 16.00% | 19.00% | 20.00% |
Organization_and_Summary_of_Si6
Organization and Summary of Significant Accounting Policies - Assumptions Used and the Resulting Estimates of Weighted-Average Fair Value Per Share of Options Granted (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2011 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Weighted average / range of volatility | 56.00% |
Risk-free interest rate | 1.60% |
Dividend rate | ' |
Expected life of options | '4 years 6 months |
Weighted average fair value of options granted | $2.16 |
Organization_and_Summary_of_Si7
Organization and Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding and Income Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator for basic and diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $5,375 | $5,114 | $4,457 | $3,298 | $3,815 | $3,677 | $3,442 | $3,804 | $18,244 | $14,738 | ($7,040) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 51,880 | 53,827 | 59,436 |
Dilutive effect of stock-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 2,272 | 896 | ' |
Diluted weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 54,152 | 54,723 | 59,436 |
Anti-dilutive stock-based awards excluded | ' | ' | ' | ' | ' | ' | ' | ' | 507 | 3,205 | 6,972 |
Net income (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.10 | $0.10 | $0.09 | $0.06 | $0.07 | $0.07 | $0.06 | $0.07 | $0.35 | $0.27 | ($0.12) |
Diluted | $0.10 | $0.10 | $0.08 | $0.06 | $0.07 | $0.07 | $0.06 | $0.07 | $0.34 | $0.27 | ($0.12) |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents, and Investments - Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | $63,395 | $37,808 |
Gross Unrealized Gains | 16 | ' |
Gross Unrealized Losses | -14 | -1 |
Fair Value | 63,397 | 37,807 |
Cash and Money Market Funds [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | 42,226 | 36,127 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | ' | ' |
Fair Value | 42,226 | 36,127 |
State and Municipal Obligations [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | 10,807 | ' |
Gross Unrealized Gains | 14 | ' |
Gross Unrealized Losses | ' | ' |
Fair Value | 10,821 | ' |
Corporate Bonds [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | 7,743 | 1 |
Gross Unrealized Gains | 2 | ' |
Gross Unrealized Losses | -14 | ' |
Fair Value | 7,731 | 1 |
Certificates of Deposit [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Amortized Cost | 2,619 | 1,680 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | ' | -1 |
Fair Value | $2,619 | $1,679 |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents, and Investments - Summary of Amortized Cost and Fair Value of Short-term and Long-term Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | $9,101 | $1,681 |
Due after one year, through two years | 12,023 | ' |
Amortized Cost [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | 9,101 | ' |
Due after one year, through two years | 12,023 | ' |
Total short-term and long-term investments | 21,124 | ' |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | 9,103 | ' |
Due after one year, through two years | 12,022 | ' |
Total short-term and long-term investments | $21,125 | ' |
Cash_Cash_Equivalents_and_Inve4
Cash, Cash Equivalents and Investments - Schedule of Company's Investments Measured at Fair Value (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Cash And Short Term Investments [Line Items] | ' |
Amortized Cost | $63,395 |
Total Fair Value | 63,397 |
Corporate Bonds [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Amortized Cost | 7,743 |
Total Fair Value | 7,732 |
State and Municipal Obligations [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Amortized Cost | 10,807 |
Total Fair Value | 10,820 |
Cash [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Amortized Cost | 37,196 |
Total Fair Value | 37,196 |
Money Market Funds [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Amortized Cost | 5,030 |
Total Fair Value | 5,030 |
Certificates of Deposit [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Amortized Cost | 2,619 |
Total Fair Value | 2,619 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | 49,958 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Bonds [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | 7,732 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and Municipal Obligations [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | 37,196 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | 5,030 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of Deposit [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | 13,439 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Other Observable Inputs (Level 2) [Member] | State and Municipal Obligations [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | 10,820 |
Significant Other Observable Inputs (Level 2) [Member] | Cash [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | 2,619 |
Significant Unobservable Inputs (Level 3) [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Bonds [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Unobservable Inputs (Level 3) [Member] | State and Municipal Obligations [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Unobservable Inputs (Level 3) [Member] | Cash [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Significant Unobservable Inputs (Level 3) [Member] | Certificates of Deposit [Member] | ' |
Cash And Short Term Investments [Line Items] | ' |
Total Fair Value | ' |
Inventory_Inventories_Detail
Inventory - Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $7,376 | $9,690 |
Work-in-process | 44 | 131 |
Finished goods | 4,688 | 3,492 |
Reserve for excess and obsolete inventory | -999 | -2,320 |
Total inventory | $11,109 | $10,993 |
Property_and_Equipment_Summary
Property and Equipment - Summary of Property and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | $50,421 | $50,845 |
Less: Accumulated depreciation | -31,378 | -28,893 |
Property and equipment, net | 19,043 | 21,952 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | 2,900 | 2,900 |
Building and Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '39 years | ' |
Total cost | 13,922 | 13,862 |
Production Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | 18,047 | 18,180 |
Production Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '3 years | ' |
Production Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '7 years | ' |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | 7,789 | 7,481 |
Computer Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '3 years | ' |
Computer Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | ' |
Furniture and Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | 2,646 | 3,359 |
Furniture and Office Equipment [Member] | Minimum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | ' |
Furniture and Office Equipment [Member] | Maximum [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '7 years | ' |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '5 years | ' |
Total cost | 270 | 270 |
Website Development Costs [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '3 years | ' |
Total cost | 601 | 601 |
Capitalized Software Development Costs [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Estimated Useful Life | '3 years | ' |
Total cost | 3,670 | 3,670 |
Construction-in-Process [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total cost | $576 | $522 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' |
Write/down and disposal of property and equipment, net | $27,000 | $200,000 | $2,800,000 |
Impairment charge | ' | ' | 1,354,000 |
Depreciation and amortization expense relative to property and equipment | 4,800,000 | 6,300,000 | 7,500,000 |
Cost of products sold and services provided | 3,700,000 | 4,700,000 | 5,200,000 |
Proctor Product Line [Member] | ' | ' | ' |
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' |
Impairment charge | ' | ' | 1,400,000 |
Proctor Product Line Property and Equipment [Member] | ' | ' | ' |
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' |
Impairment charge | ' | ' | 700,000 |
Axon Equipment [Member] | ' | ' | ' |
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' |
Write/down and disposal of property and equipment, net | ' | ' | 1,400,000 |
Surplus Equipment and Billing Software [Member] | ' | ' | ' |
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' |
Write/down and disposal of property and equipment, net | ' | ' | 800,000 |
Taser X Three Equipment [Member] | ' | ' | ' |
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' |
Write/down and disposal of property and equipment, net | ' | ' | $600,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Goodwill | $2,235,000 | $0 | ' |
Amortization expense | $200,000 | $100,000 | $200,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Intangible Assets Other than Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Not amortized intangible assets, Carrying Amount | $1,915 | $1,854 |
Amortized intangible assets, Gross Carrying Amount | 2,091 | 2,030 |
Intangible assets, Gross Carrying Amount | 4,006 | 3,884 |
Accumulated Amortization | -690 | -567 |
Amortized intangible assets, Net Carrying Amount | 1,401 | 1,463 |
Intangible assets, Net Carrying Amount | 3,317 | 3,317 |
Domain Names [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '5 years | ' |
Amortized intangible assets, Gross Carrying Amount | 125 | 139 |
Accumulated Amortization | -102 | -104 |
Amortized intangible assets, Net Carrying Amount | 23 | 35 |
Issued Patents [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Gross Carrying Amount | 1,529 | 1,529 |
Accumulated Amortization | -441 | -361 |
Amortized intangible assets, Net Carrying Amount | 1,088 | 1,168 |
Issued Patents [Member] | Minimum [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '4 years | ' |
Issued Patents [Member] | Maximum [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '15 years | ' |
Issued Trademarks [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Gross Carrying Amount | 437 | 362 |
Accumulated Amortization | -147 | -102 |
Amortized intangible assets, Net Carrying Amount | 290 | 260 |
Issued Trademarks [Member] | Minimum [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '9 years | ' |
Issued Trademarks [Member] | Maximum [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Useful Life | '11 years | ' |
TASER Trademark [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Not amortized intangible assets, Carrying Amount | 900 | 900 |
Patents and Trademarks Pending [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Not amortized intangible assets, Carrying Amount | $1,015 | $954 |
Recovered_Sheet1
Goodwill and Intangible assets - Estimated Amortization Expense of Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
2014 | $156 | ' |
2015 | 148 | ' |
2016 | 141 | ' |
2017 | 137 | ' |
2018 | 127 | ' |
Thereafter | 692 | ' |
Amortized intangible assets, Net Carrying Amount | $1,401 | $1,463 |
Deferred_Revenue_Summary_of_De
Deferred Revenue - Summary of Deferred Revenue (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | $20,219 | $12,123 |
Total current portion of deferred revenue | 6,878 | 4,287 |
Total long-term portion of deferred revenue | 13,341 | 7,836 |
Warranty [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 15,889 | 10,831 |
Total current portion of deferred revenue | 4,900 | ' |
EVIDENCE.com [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 4,026 | 1,292 |
Total current portion of deferred revenue | 2,000 | ' |
Other [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | $304 | ' |
Deferred_Revenue_Additional_In
Deferred Revenue - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total current portion of deferred revenue | $6,878 | $4,287 |
EVIDENCE.com [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total current portion of deferred revenue | 2,000 | ' |
Warranty [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total current portion of deferred revenue | $4,900 | ' |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities - Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Payables And Accruals [Abstract] | ' | ' | ' | ' |
Accrued salaries and benefits | $2,328 | $2,415 | ' | ' |
Accrued judgments and settlements | 3,350 | 2,090 | ' | ' |
Accrued warranty expense | 955 | 484 | 427 | 646 |
Accrued income and other taxes | 233 | 296 | ' | ' |
Other accrued expenses | 1,974 | 1,780 | ' | ' |
Accrued liabilities | $8,840 | $7,065 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Jul. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | 4-May-12 | Apr. 20, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 10, 2014 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2013 | |
Lawsuits | Cases | Cases | Lawsuits | Slade [Member] | Slade [Member] | Slade [Member] | Slade [Member] | Slade [Member] | Slade [Member] | Ramsey [Member] | 2008 [Member] | Subsequent Event [Member] | Products Liability Litigation [Member] | Karbon Arms LLC [Member] | AA And Saba Consultants [Member] | AA And Saba Consultants [Member] | Office Equipment [Member] | |||
Lawsuits | Lawsuits | Subsequent Event [Member] | ||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense under operating lease | ' | ' | ' | $1,500,000 | $1,400,000 | $1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103,000 |
Original cost of leased equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 147,000 |
Associated accumulated amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,000 |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.20% |
Open purchase order | 11,900,000 | 11,900,000 | ' | 11,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lawsuits against Company | 16 | 16 | ' | 16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lawsuit | 1 | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of active product liability cases | ' | 16 | 55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product litigation settlement amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' |
Number of pre-2009, product liability law suits settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Jury decision against company | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation judgment | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Jury award value | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' |
Jury decision against company which adjusted to award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit on reversal of accrued litigation | ' | ' | ' | -1,450,000 | 2,200,000 | -3,301,000 | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Benefit on reversal of accrued litigation leaving a reserve | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Remaining Insurance Coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' |
Loss contingency receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Amount of settlement offer | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Verdict against the company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | ' |
Loss contingency loss in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' |
Amount payable on termination of contract | $800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Lease Obligations (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $374 |
2015 | 172 |
2016 | 89 |
2017 | 54 |
2018 | ' |
Thereafter | ' |
Total minimum lease payments | 689 |
2014 | 38 |
2015 | 38 |
2016 | 22 |
2017 | ' |
2018 | ' |
Thereafter | ' |
Total minimum lease payments | 98 |
Less: Amount representing interest | 5 |
Capital lease obligation | $103 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Loss Contingencies (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Grable [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Grable |
Month Served | 'Aug-08 |
Jurisdiction | '6th Judicial Circuit Court, Pinellas County, FL |
Claim Type | 'Training Injury |
Status | 'Discovery Phase |
Koon [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Koon |
Month Served | 'Dec-08 |
Jurisdiction | '17th Judicial Circuit Court, Broward County, FL |
Claim Type | 'Training Injury |
Status | 'Discovery Phase |
Derbyshire [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Derbyshire |
Month Served | 'Nov-09 |
Jurisdiction | 'Ontario, Canada Superior Court of Justice |
Claim Type | 'Officer Injury |
Status | 'Discovery Phase |
Thompson [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Thompson |
Month Served | 'Mar-10 |
Jurisdiction | '11th Judicial Circuit Court, Miami-Dade County, FL |
Claim Type | 'Suspect Injury During Arrest |
Status | 'Discovery Phase |
Doan [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Doan |
Month Served | 'Apr-10 |
Jurisdiction | 'The Queens Bench Alberta, Red Deer Judicial Dist. |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Shymko [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Shymko |
Month Served | 'Dec-10 |
Jurisdiction | 'The Queens Bench, Winnipeg Centre, Manitoba |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Juran [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Juran |
Month Served | 'Dec-10 |
Jurisdiction | 'Hennepin County District Court, 4th Judicial District |
Claim Type | 'Officer Injury |
Status | 'Discovery Phase |
Wilson [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Wilson |
Month Served | 'May-11 |
Jurisdiction | 'US District Court, ED MO |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase; trial scheduled for November 2014 |
Ramsey [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Ramsey |
Month Served | 'Jan-12 |
Jurisdiction | '17th Judicial Circuit Court, Broward County, FL |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Mitchell [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Mitchell |
Month Served | 'Apr-12 |
Jurisdiction | 'US District Court, ED MI |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase, trial scheduled June 2014 |
Firman [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Firman |
Month Served | 'Apr-12 |
Jurisdiction | 'Ontario, Canada Superior Court of Justice |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Ricks [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Ricks |
Month Served | 'May-12 |
Jurisdiction | 'US District Court, WD LA |
Claim Type | 'Wrongful Death |
Status | 'Motion Phase |
Miller [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Miller |
Month Served | 'Jan-13 |
Jurisdiction | 'New Castle County Superior Court, DE |
Claim Type | 'Wrongful Death |
Status | 'Discovery Phase |
Salgado [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Salgado |
Month Served | 'Feb-13 |
Jurisdiction | 'US District Court, SD FL |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Slade [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Slade |
Month Served | 'Dec-13 |
Jurisdiction | 'US District Court, ED TX |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Turner [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Turner |
Month Served | 'Feb-10 |
Jurisdiction | 'US District Court, ED NC |
Claim Type | 'Wrongful Death |
Status | 'Appeal fully briefed; Oral argument held September 2013; remanded to trial on damages only. |
Commitments_and_Contingencies_4
Commitments and Contingencies - Summary of Other Litigation Matters (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Bachtel [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Bachtel |
Month Served | 'Aug-11 |
Jurisdiction | '14th Judicial Circuit Court, Randolph County, MO |
Claim Type | 'Wrongful Death |
Status | 'Appeal fully briefed; Oral Argument held on January 14, 2014. |
Glowczenski [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Glowczenski |
Month Served | 'Oct-04 |
Jurisdiction | 'US District Court, ED NY |
Claim Type | 'Wrongful Death |
Status | 'Notice of Appeal filed September 2013; Opening Brief was filed January 2014; Answering Brief is due April 2014. |
Commitments_and_Contingencies_5
Commitments and Contingencies - Summary of Cases Dismissed or Judgment Entered (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Armstrong [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Armstrong |
Month Served | 'Apr-13 |
Jurisdiction | 'US District Court, MD NC |
Claim Type | 'Wrongful Death |
Status | 'Voluntary Dismissal |
Barnes [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Barnes |
Month Served | 'Apr-13 |
Jurisdiction | 'US District Court, WD PA |
Claim Type | 'Wrongful Death |
Status | 'Voluntary Dismissal |
Athetis [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Athetis |
Month Served | 'May-09 |
Jurisdiction | 'Superior Court, AZ |
Claim Type | 'Wrongful Death |
Status | 'Motion for Summary Judgment |
Duensing [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Duensing |
Month Served | 'Feb-12 |
Jurisdiction | 'US District Court, NV |
Claim Type | 'Suspect Injury During Arrest |
Status | 'Motion to Dismiss |
Rich [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Rich |
Month Served | 'Feb-10 |
Jurisdiction | 'US District Court, NV |
Claim Type | 'Wrongful Death |
Status | 'Voluntary Dismissal |
Peppler [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Peppler |
Month Served | 'Apr-09 |
Jurisdiction | '5th Judicial Court for Sumter CO, FL |
Claim Type | 'Training Injury |
Status | 'Voluntary Dismissal |
Wingard [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Wingard |
Month Served | 'Oct-12 |
Jurisdiction | 'US District Court, WD PA |
Claim Type | 'Wrongful Death |
Status | 'Voluntary Dismissal |
Manjares [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Manjares |
Month Served | 'Nov-12 |
Jurisdiction | 'US District Court, ED WA |
Claim Type | 'Suspect Injury During Arrest |
Status | 'Voluntary Dismissal |
Commitments_and_Contingencies_6
Commitments and Contingencies - Information Regarding the Company's Insurance Coverage (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
2004 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2004 |
Policy Start Date | 1-Dec-03 |
Policy End Date | 1-Dec-04 |
Insurance Coverage | $2 |
Deductible Amount | 0.1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 2 |
Active Cases and Cases on Appeal | 'Glowczenski |
2005 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2005 |
Policy Start Date | 1-Dec-04 |
Policy End Date | 1-Dec-05 |
Insurance Coverage | 10 |
Deductible Amount | 0.3 |
Defense Costs Covered | 'Y |
Remaining Insurance Coverage | 7 |
Active Cases and Cases on Appeal | 'n/a |
2006 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2006 |
Policy Start Date | 1-Dec-05 |
Policy End Date | 1-Dec-06 |
Insurance Coverage | 10 |
Deductible Amount | 0.3 |
Defense Costs Covered | 'Y |
Remaining Insurance Coverage | 3.7 |
Active Cases and Cases on Appeal | 'n/a |
2007 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2007 |
Policy Start Date | 1-Dec-06 |
Policy End Date | 1-Dec-07 |
Insurance Coverage | 10 |
Deductible Amount | 0.3 |
Defense Costs Covered | 'Y |
Remaining Insurance Coverage | 8 |
Active Cases and Cases on Appeal | 'n/a |
2008 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2008 |
Policy Start Date | 1-Dec-07 |
Policy End Date | 15-Dec-08 |
Insurance Coverage | 10 |
Deductible Amount | 0.5 |
Defense Costs Covered | 'Y |
Remaining Insurance Coverage | 2.6 |
Active Cases and Cases on Appeal | 'Grable, Koon, Turner |
2009 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2009 |
Policy Start Date | 15-Dec-08 |
Policy End Date | 15-Dec-09 |
Insurance Coverage | 10 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 10 |
Active Cases and Cases on Appeal | 'Derbyshire |
2010 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2010 |
Policy Start Date | 15-Dec-09 |
Policy End Date | 15-Dec-10 |
Insurance Coverage | 10 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 10 |
Active Cases and Cases on Appeal | 'Thompson, Shymko, Doan, Juran |
2011 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2011 |
Policy Start Date | 15-Dec-10 |
Policy End Date | 15-Dec-11 |
Insurance Coverage | 10 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 10 |
Active Cases and Cases on Appeal | 'Wilson, Bachtel |
Jan - Jun 2012 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Start Date | 15-Dec-11 |
Policy End Date | 25-Jun-12 |
Insurance Coverage | 7 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 7 |
Active Cases and Cases on Appeal | 'Ramsey, Mitchell, Firman, Ricks |
Jan - Jun 2012 [Member] | Minimum [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Month Year | '2012-01 |
Jan - Jun 2012 [Member] | Maximum [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Month Year | '2012-06 |
Jul - Dec 2012 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Start Date | 25-Jun-12 |
Policy End Date | 15-Dec-12 |
Insurance Coverage | 12 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 12 |
Active Cases and Cases on Appeal | 'n/a |
Jul - Dec 2012 [Member] | Minimum [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Month Year | '2012-07 |
Jul - Dec 2012 [Member] | Maximum [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Month Year | '2012-12 |
2013 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2013 |
Policy Start Date | 15-Dec-12 |
Policy End Date | 15-Dec-13 |
Insurance Coverage | 12 |
Deductible Amount | 1 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | 12 |
Active Cases and Cases on Appeal | 'Miller, Salgado |
2014 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2014 |
Policy Start Date | 15-Dec-13 |
Policy End Date | 15-Dec-14 |
Insurance Coverage | 12 |
Deductible Amount | 4 |
Defense Costs Covered | 'N |
Remaining Insurance Coverage | $12 |
Active Cases and Cases on Appeal | 'Slade |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Sep. 13, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred income tax assets: | ' | ' | ' |
Net operating loss carryforward | $513 | ' | $47 |
Deferred warranty revenue | 2,837 | ' | 1,759 |
Inventory reserve | 389 | ' | 906 |
Non-qualified and non-employee stock option expense | 3,518 | ' | 3,682 |
Capitalized research and development | 6,588 | ' | 8,191 |
Alternative minimum tax carryforward | 1,466 | ' | 1,406 |
Research and development tax credit carryforward | 3,165 | ' | 2,936 |
Deferred legal settlement | 1,294 | ' | 723 |
IRC section 481(a) adjustment-tangible property | 1,316 | ' | ' |
Reserves, accruals, and other | 2,066 | ' | 2,156 |
Total deferred income tax assets | 23,152 | ' | 21,806 |
Deferred income tax liabilities: | ' | ' | ' |
Depreciation | -2,136 | -1,300 | -662 |
Amortization | -236 | ' | -142 |
Total deferred income tax liabilities | -2,372 | ' | -804 |
Net deferred income tax assets | $20,780 | ' | $21,002 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Current deferred tax assets, net | $7,101 | $9,396 |
Long-term deferred tax assets, net | 13,679 | 11,606 |
Net deferred income tax assets | $20,780 | $21,002 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 13, 2013 | Dec. 31, 2010 | |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Deferred tax assets | $124,000 | ' | ' | ' | ' |
Deferred tax assets | 400,000 | ' | ' | ' | ' |
R&D credit carry forwards carry forwards expiration period | 'Various dates between 2018 and 2028 | ' | ' | ' | ' |
Minimum tax credit carryover | 1,500,000 | ' | ' | ' | ' |
Credit to additional paid-in capital | 6,797,000 | 4,713,000 | 10,000 | ' | ' |
Income tax receivable | 2,300,000 | 800,000 | ' | ' | ' |
Estimated income tax expense benefit | 55,000 | ' | ' | ' | ' |
Research and development tax credit studies | 9,800,000 | ' | ' | ' | ' |
Liability for unrecognized tax benefits | 3,122,000 | 2,903,000 | 1,982,000 | ' | 2,282,000 |
Unrecognized tax benefits, accrued interest | 12,000 | 0 | ' | ' | ' |
Income tax regulations related to tangible property, effect on deferred tax liabilities | 2,136,000 | 662,000 | ' | 1,300,000 | ' |
State [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
NOL carry forward expiration date | 'Various dates between 2016 and 2031 | ' | ' | ' | ' |
Liability for unrecognized tax benefits | 100,000 | ' | ' | ' | ' |
State [Member] | ARIZONA [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
State research and development credit carry forwards | 2,800,000 | ' | ' | ' | ' |
State [Member] | CALIFORNIA [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
State research and development credit carry forwards | 300,000 | ' | ' | ' | ' |
Federal [Member] | CALIFORNIA [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
NOL carry forward expiration date | 'between 2031 and 2033 | ' | ' | ' | ' |
Federal [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' |
Liability for unrecognized tax benefits | $3,000,000 | ' | ' | ' | ' |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of the Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $7,963 | $4,605 | $133 |
State | 987 | 666 | 59 |
Total current | 8,950 | 5,271 | 192 |
Deferred: | ' | ' | ' |
Federal | 764 | 3,168 | -3,253 |
State | -143 | -1,485 | 771 |
Total deferred | 621 | 1,683 | -2,481 |
Tax provision (benefit) recorded as an increase (decrease) in liability for unrecorded tax benefits | 219 | 920 | -299 |
Provision (benefit) for income taxes | $9,790 | $7,874 | ($2,589) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of the Company's Effective Income Tax Rate to the Federal Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal income tax at the statutory rate | $9,812 | $7,914 | ($3,370) |
State income taxes, net of federal benefit | 1,283 | 969 | -357 |
Permanent differences | -96 | 156 | 231 |
Research and development | -386 | -327 | -230 |
Return to provision adjustment | -361 | -270 | -458 |
Change in liability for unrecognized tax benefits | 219 | 921 | -299 |
Incentive stock option detriment/(benefit) | -538 | 174 | 449 |
Change in valuation allowance | ' | -1,429 | 1,429 |
Other | -143 | -234 | 16 |
Provision (benefit) for income taxes | $9,790 | $7,874 | ($2,589) |
Effective tax rate | 34.90% | 34.80% | 26.90% |
Income_Taxes_Roll_Forward_of_L
Income Taxes - Roll Forward of Liability for Unrecognized Tax Benefits Exclusive of Accrued Interest (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance, beginning of period | $2,903 | $1,982 | $2,282 |
Increase in previous year tax positions | 57 | 659 | ' |
Increase in current year tax positions | 144 | 151 | 83 |
Increase (decrease) related to adjustment of previous estimates of activity | 6 | 111 | -383 |
Balance, end of period | $3,122 | $2,903 | $1,982 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ' | ' |
Total availability under line of credit agreement | $10,000,000 | ' |
Letters of credit outstanding amount | 600,000 | ' |
Available borrowing under letter of credit | 9,400,000 | ' |
Varying Interest on Line of credit agreement | 'LIBOR plus 1.5% to prime | ' |
Line of credit interest rate | 1.50% | ' |
Maturity date of line of credit | 30-Jun-15 | ' |
Line of credit facility amount outstanding | $0 | $0 |
Maximum ratio of total liabilities to tangible net worth | 1 | ' |
Minimum required fixed coverage charge ratio | 1.25 | ' |
Period used for calculating ratios | '12 months | ' |
Company's tangible net worth ratio | 0.39 | ' |
Fixed coverage charge ratio | 3.18 | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Apr. 25, 2012 | Feb. 28, 2013 | Jul. 31, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 23-May-13 | |
Number_of_stock_repurchase | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Performance Based Restricted Stock Unit [Member] | Performance Based Restricted Stock Unit [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Non-Vested Options [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Non Qualified Stock Options [Member] | Non Qualified Stock Options [Member] | Non Qualified Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Restricted Stock Units (RSUs) [Member] | Service Based Restricted Stock Unit [Member] | Repurchase of Equity [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | 2013 Stock Incentive Plan [Member] | 2013 Stock Incentive Plan [Member] | ||||||||
Performance Based Restricted Stock Unit [Member] | Service Based Restricted Stock Unit [Member] | Performance Based Restricted Stock Unit [Member] | Service Based Restricted Stock Unit [Member] | ||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Repurchase Programs authorized | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | ' | ' | ' | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | ' | 25,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding common stock repurchase program authorized amount | $20,000,000 | $25,000,000 | $20,000,000 | $12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional stock repurchase program authorized amount | ' | ' | ' | ' | 25,000,000 | 25,000,000 | 19,996,000 | 32,499,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average cost of repurchase per share | $5.22 | ' | ' | ' | ' | ' | ' | $4.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.20 | ' | ' | ' | ' | ' | ' |
Shares repurchased by company | 3,800,000 | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '3 years | '4 years | '4 years | ' | ' |
Contractual maturity of plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Option available for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' |
Shares reserved for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 |
Aggregate intrinsic value price per share | ' | ' | ' | ' | ' | ' | ' | ' | $15.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate units of performance restricted stock granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance criteria met for approximate units | ' | ' | ' | ' | ' | ' | ' | ' | 257,693 | 97,007 | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate units outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 1,279,123 | 582,212 | 1,096 | 50 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental stock option expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 700,000 | ' | ' | ' | ' | ' | 100,000 | 100,000 | 300,000 | ' | ' | ' | 100,000 | 500,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares withheld, for net share settlement of share based award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Tax payments, for net share settlement of share based award | ' | ' | ' | ' | ' | 309,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value of options granted | ' | ' | ' | ' | ' | ' | ' | $2.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | ' | ' | 15,700,000 | 3,200,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New option granted | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,018,182 | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value, option outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value, options exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Options Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,365,692 | 6,321,076 | 7,576,493 | 7,507,236 | 100,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding, weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.15 | $6.05 | $5.75 | $5.71 | $4.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of unvested options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested performance options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested share, expected to vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options expected to vest, end of year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103,362 | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of performance-based stock options outstanding and expected to vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit recorded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,800,000 | 4,700,000 | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation arrangement by share based payment award future tax benefit | ' | ' | ' | ' | ' | 3,500,000 | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period | ' | ' | ' | ' | ' | ' | ' | ' | '31 months | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense related to non-vested stock options | ' | ' | ' | ' | ' | ' | ' | ' | $8,600,000 | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Detail) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of Units outstanding, beginning of year | 582,212 | 1,096 | 50 |
Number of Units, Granted | 1,054,293 | 713,148 | 1,046 |
Number of Units, Released | -257,693 | -97,007 | ' |
Number of Units, Forfeited | -99,689 | -35,025 | ' |
Number of Units outstanding, end of year | 1,279,123 | 582,212 | 1,096 |
Aggregate Intrinsic Value at Year End | $20,312,473 | ' | ' |
Weighted Average Grant Date Fair Value, Units outstanding, beginning of year | $5.42 | $4.76 | $4.24 |
Weighted Average Grant Date Fair Value, Granted | $10.72 | $5.40 | $4.78 |
Weighted Average Grant Date Fair Value, Released | $5.44 | $5.30 | ' |
Weighted Average Grant Date Fair Value, Forfeited | $6.86 | $5.29 | ' |
Weighted Average Grant Date Fair Value, Units outstanding, end of year | $9.67 | $5.42 | $4.76 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of the Company's Stock Options Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options, Granted | 0 | 0 | ' |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of options, Options outstanding, beginning of year | 6,321,076 | 7,576,493 | 7,507,236 |
Number of options, Granted | ' | ' | 1,018,182 |
Number of options, Exercised | -2,671,058 | -784,383 | -539,923 |
Number of options, Expired / terminated | -284,326 | -471,034 | -409,002 |
Number of options, Options outstanding, end of year | 3,365,692 | 6,321,076 | 7,576,493 |
Number of options, Options exercisable, end of year | 3,217,146 | 5,278,243 | 6,432,667 |
Number of options, Options expected to vest, end of year | 103,362 | ' | ' |
Weighted average exercise price, Options outstanding, beginning of year | $6.05 | $5.75 | $5.71 |
Weighted average exercise price, Granted | ' | ' | $4.65 |
Weighted average exercise price, Exercised | $5.75 | $2.46 | $2.64 |
Weighted average exercise price, Expired / terminated | $7.83 | $7.15 | $6.38 |
Weighted average exercise price, Options outstanding, end of year | $6.15 | $6.05 | $5.75 |
Weighted average exercise price, Options exercisable, end of year | $6.22 | $6.31 | $6.02 |
Weighted average exercise price, Options expected to vest, end of year | $4.54 | ' | ' |
Stockholders_Equity_Summary_of2
Stockholders' Equity - Summary of Stock Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Range One [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Price, Lower Limit | $3.53 |
Range of Exercise Price, Upper Limit | $5 |
Number of Options Outstanding | 1,886,679 |
Options outstanding, weighted average exercise price | $4.62 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '5 years 10 months 24 days |
Number of Options Exercisable | 1,739,833 |
Options Exercisable, Weighted Average Exercise Price | $4.63 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | '5 years 9 months 18 days |
Range Two [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Price, Lower Limit | $5.01 |
Range of Exercise Price, Upper Limit | $7 |
Number of Options Outstanding | 528,221 |
Options outstanding, weighted average exercise price | $5.60 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '5 years 2 months 12 days |
Number of Options Exercisable | 526,521 |
Options Exercisable, Weighted Average Exercise Price | $5.60 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | '5 years 1 month 6 days |
Range Three [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Price, Lower Limit | $7.01 |
Range of Exercise Price, Upper Limit | $10 |
Number of Options Outstanding | 649,381 |
Options outstanding, weighted average exercise price | $7.72 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '3 years |
Number of Options Exercisable | 649,381 |
Options Exercisable, Weighted Average Exercise Price | $7.72 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | '3 years |
Range Four [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Price, Lower Limit | $10.01 |
Range of Exercise Price, Upper Limit | $15 |
Number of Options Outstanding | 194,763 |
Options outstanding, weighted average exercise price | $10.31 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '3 years 4 months 24 days |
Number of Options Exercisable | 194,763 |
Options Exercisable, Weighted Average Exercise Price | $10.31 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | '3 years 4 months 24 days |
Range Five [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Price, Lower Limit | $15.01 |
Range of Exercise Price, Upper Limit | $29.83 |
Number of Options Outstanding | 106,648 |
Options outstanding, weighted average exercise price | $18.69 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '4 months 24 days |
Number of Options Exercisable | 106,648 |
Options Exercisable, Weighted Average Exercise Price | $18.69 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | '4 months 24 days |
Range Six [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Range of Exercise Price, Lower Limit | $3.53 |
Range of Exercise Price, Upper Limit | $29.83 |
Number of Options Outstanding | 3,365,692 |
Options outstanding, weighted average exercise price | $6.15 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | '4 years 10 months 24 days |
Number of Options Exercisable | 3,217,146 |
Options Exercisable, Weighted Average Exercise Price | $6.22 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | '4 years 9 months 18 days |
Stockholders_Equity_Reported_S
Stockholders' Equity - Reported Share-Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total share-based compensation | $4,340 | $3,422 | $3,038 |
Cost of Products Sold [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total share-based compensation | 175 | 172 | 121 |
Sales, General and Administrative Expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total share-based compensation | 3,158 | 2,647 | 2,291 |
Research and Development Expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total share-based compensation | $1,007 | $603 | $626 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Consulting Services [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consulting Services [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Outstanding payables due to related party | $12,000 | $6,000 | ' |
Transaction expenses incurred by parent company | $200,000 | $200,000 | $200,000 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation And Retirement Disclosure [Abstract] | ' | ' |
Company's expected contributions to the plan | $13,000 | ' |
Company's contributions to the plan | $700,000 | $500,000 |
Non-qualified deferred compensation plan allowable eligible participants deferral percentage of base salary | 80.00% | ' |
Non-qualified deferred compensation plan allowable eligible participants deferral percentage of other compensation | 100.00% | ' |
Employee deferrals deemed vested percentage upon contribution | 100.00% | ' |
Business_Acquisition_Additiona
Business Acquisition - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 07, 2013 | Dec. 31, 2013 |
Familiar, Inc. [Member] | Familiar, Inc. [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Business combination, cash paid | ' | ' | $1,300,000 | ' |
Business combination, shares issued | ' | ' | 107,749 | ' |
Business combination, goodwill | $2,235,000 | $0 | ' | $2,200,000 |
Joint_Venture_Agreement_Additi
Joint Venture Agreement - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2011 | Nov. 02, 2010 | Jun. 30, 2011 | Dec. 31, 2010 | |
Route Cloud [Member] | Route Cloud [Member] | Route Cloud [Member] | ||
Joint Agreement [Line Items] | ' | ' | ' | ' |
Amount of funding provided during period under joint venture agreement | ' | ' | ' | $1,200,000 |
Reimburse sum as per new agreement for certain transition expenses | ' | 75,000 | ' | ' |
Impairment charge | $1,354,000 | ' | $1,400,000 | ' |
Segment_Data_Additional_Inform
Segment Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments of company | 2 |
Segment_Data_Summary_of_Operat
Segment Data - Summary of Operational Information Relative to the Company's Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product sales | $40,025 | $35,197 | $32,175 | $30,434 | $32,116 | $28,773 | $28,223 | $25,641 | $136,123 | $114,126 | $89,676 |
Service revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,708 | 627 | 352 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 137,831 | 114,753 | 90,028 |
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | 50,099 | 43,123 | 36,906 |
Cost of services delivered | ' | ' | ' | ' | ' | ' | ' | ' | 1,889 | 3,915 | 4,847 |
Excess inventory charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,746 |
Gross margin | 25,554 | 22,096 | 19,742 | 18,451 | 19,168 | 16,803 | 16,503 | 15,241 | 85,843 | 67,715 | 44,529 |
Sales, general & administrative | ' | ' | ' | ' | ' | ' | ' | ' | 46,584 | 39,086 | 38,001 |
Research & development | ' | ' | ' | ' | ' | ' | ' | ' | 9,888 | 8,139 | 9,989 |
Litigation judgment (recovery) | ' | ' | ' | ' | ' | ' | ' | ' | 1,450 | -2,200 | 3,301 |
Loss on impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,354 |
Gain (Loss) on write down / disposal of property and equipment, net | ' | ' | ' | ' | ' | ' | ' | ' | -27 | 161 | 2,800 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 27,948 | 22,529 | -10,916 |
Purchase of property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 1,783 | 1,334 | 1,854 |
Purchase of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 323 | 429 | 413 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 5,131 | 6,519 | 8,097 |
TASER Weapons [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product sales | ' | ' | ' | ' | ' | ' | ' | ' | 127,474 | 109,055 | 86,675 |
Service revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 127,474 | 109,055 | 86,675 |
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | 44,025 | 39,350 | 34,213 |
Cost of services delivered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess inventory charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,749 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 83,449 | 69,705 | 50,713 |
Sales, general & administrative | ' | ' | ' | ' | ' | ' | ' | ' | 40,201 | 35,576 | 34,794 |
Research & development | ' | ' | ' | ' | ' | ' | ' | ' | 4,311 | 3,938 | 5,445 |
Litigation judgment (recovery) | ' | ' | ' | ' | ' | ' | ' | ' | 1,450 | -2,200 | 3,301 |
Loss on impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,354 |
Gain (Loss) on write down / disposal of property and equipment, net | ' | ' | ' | ' | ' | ' | ' | ' | -27 | 161 | 643 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 37,514 | 32,230 | 5,176 |
Purchase of property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 1,324 | 922 | 1,501 |
Purchase of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 307 | 429 | 413 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 4,011 | 4,327 | 5,409 |
Evidence.com & Video [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product sales | ' | ' | ' | ' | ' | ' | ' | ' | 8,649 | 5,071 | 3,001 |
Service revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,708 | 627 | 352 |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 10,357 | 5,698 | 3,353 |
Cost of products sold | ' | ' | ' | ' | ' | ' | ' | ' | 6,074 | 3,773 | 2,693 |
Cost of services delivered | ' | ' | ' | ' | ' | ' | ' | ' | 1,889 | 3,915 | 4,847 |
Excess inventory charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,997 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 2,394 | -1,990 | -6,184 |
Sales, general & administrative | ' | ' | ' | ' | ' | ' | ' | ' | 6,383 | 3,510 | 3,207 |
Research & development | ' | ' | ' | ' | ' | ' | ' | ' | 5,577 | 4,201 | 4,544 |
Litigation judgment (recovery) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) on write down / disposal of property and equipment, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,157 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | -9,566 | -9,701 | -16,092 |
Purchase of property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 459 | 412 | 353 |
Purchase of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | $1,120 | $2,192 | $2,688 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $40,025 | $35,197 | $32,175 | $30,434 | $32,116 | $28,773 | $28,223 | $25,641 | $136,123 | $114,126 | $89,676 |
Gross margin | 25,554 | 22,096 | 19,742 | 18,451 | 19,168 | 16,803 | 16,503 | 15,241 | 85,843 | 67,715 | 44,529 |
Net income | $5,375 | $5,114 | $4,457 | $3,298 | $3,815 | $3,677 | $3,442 | $3,804 | $18,244 | $14,738 | ($7,040) |
Basic net income per share | $0.10 | $0.10 | $0.09 | $0.06 | $0.07 | $0.07 | $0.06 | $0.07 | $0.35 | $0.27 | ($0.12) |
Diluted net income per share | $0.10 | $0.10 | $0.08 | $0.06 | $0.07 | $0.07 | $0.06 | $0.07 | $0.34 | $0.27 | ($0.12) |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Unaudited) - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' |
Reversal of litigation judgment reserve | $1.10 | $2.20 |
Accrual of litigation judgment expense | $2.60 | ' |
Supplemental_Disclosure_to_Cas2
Supplemental Disclosure to Cash Flows - Summary of Supplemental Non-Cash and Other Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' |
Cash paid for income taxes-net | $3,625 | $1,079 | $52 |
Non Cash Transactions | ' | ' | ' |
Stock issued for business acquisition | 1,578 | ' | ' |
Property and equipment purchases in accounts payable | 279 | 113 | 81 |
Purchase of assets under capital lease obligations | ' | $147 | ' |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of period | $200 | $450 | $200 |
Charged to Costs and Expenses | 24 | -242 | 296 |
Charged to Other Accounts | ' | ' | ' |
Deductions | -24 | -8 | -46 |
Balance at End of Period | 200 | 200 | 450 |
Allowance for Excess and Obsolete Inventory [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of period | 2,320 | 4,431 | 351 |
Charged to Costs and Expenses | 595 | 554 | 4,610 |
Charged to Other Accounts | ' | ' | ' |
Deductions | -1,916 | -2,665 | -530 |
Balance at End of Period | 999 | 2,320 | 4,431 |
Warranty Reserve [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of period | 484 | 427 | 646 |
Charged to Costs and Expenses | 1,001 | 527 | 310 |
Charged to Other Accounts | ' | ' | ' |
Deductions | -530 | -470 | -529 |
Balance at End of Period | $955 | $484 | $427 |