Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'TASER INTERNATIONAL INC | ' |
Entity Central Index Key | '0001069183 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 52,516,777 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $38,615 | $42,271 |
Short-term investments | 28,983 | 9,101 |
Accounts and notes receivable, net of allowance of $253 and $200 as of September 30, 2014 and December 31, 2013, respectively | 27,099 | 22,488 |
Inventory, net | 16,128 | 11,109 |
Prepaid expenses and other current assets | 5,210 | 5,397 |
Deferred income tax assets, net | 7,164 | 7,101 |
Total current assets | 123,199 | 97,467 |
Property and equipment, net of accumulated depreciation of $33,046 and $31,378 as of September 30, 2014 and December 31, 2014, respectively | 17,848 | 19,043 |
Deferred income tax assets, net | 9,603 | 13,679 |
Intangible assets, net | 3,107 | 3,317 |
Goodwill | 2,206 | 2,235 |
Long-term investments | 6,411 | 12,023 |
Other assets | 1,766 | 618 |
Total assets | 164,140 | 148,382 |
Current Liabilities: | ' | ' |
Accounts payable | 6,483 | 6,221 |
Accrued liabilities | 6,853 | 8,840 |
Current portion of deferred revenue | 10,033 | 6,878 |
Customer deposits | 369 | 1,154 |
Current portion of capital lease payable | 38 | 36 |
Total current liabilities | 23,776 | 23,129 |
Deferred revenue, net of current portion | 19,966 | 13,341 |
Liability for unrecognized tax benefits | 1,409 | 3,122 |
Other long-term liabilities | 908 | 376 |
Long-term portion of capital lease payable | 39 | 67 |
Total liabilities | 46,098 | 40,035 |
Commitments and Contingencies (Note 10) | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock, $0.00001 par value per share; 25 million shares authorized; no shares issued at September 30, 2014 and December 31, 2013 | ' | ' |
Common stock, $0.00001 par value per share; 200 million shares authorized; 52,516,219 and 52,725,247 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 1 | 1 |
Additional paid-in capital | 156,729 | 139,424 |
Treasury stock at cost, 18,139,958 and 16,412,755 shares at September 30, 2014 and December 31, 2013, respectively | -114,645 | -92,203 |
Retained earnings | 75,959 | 61,127 |
Accumulated other comprehensive loss | -2 | -2 |
Total stockholders' equity | 118,042 | 108,347 |
Total liabilities and stockholders' equity | $164,140 | $148,382 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance on accounts receivable | $253 | $200 |
Property and equipment, accumulated depreciation | $33,046 | $31,378 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 52,516,219 | 52,725,247 |
Common stock, shares outstanding | 52,516,219 | 52,725,247 |
Treasury stock, shares | 18,139,958 | 16,412,755 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $44,349 | $35,197 | $117,709 | $97,806 |
Cost of products sold and services delivered | 15,636 | 13,101 | 43,574 | 37,517 |
Gross margin | 28,713 | 22,096 | 74,135 | 60,289 |
Sales, general and administrative expenses | 12,441 | 12,776 | 39,734 | 34,898 |
Research and development expenses | 3,759 | 2,439 | 10,820 | 6,444 |
Income from operations | 12,513 | 6,881 | 23,581 | 18,947 |
Interest and other income (expense), net | -160 | 35 | -88 | 31 |
Income before provision for income taxes | 12,353 | 6,916 | 23,493 | 18,978 |
Provision for income taxes | 4,795 | 1,802 | 8,661 | 6,109 |
Net income | 7,558 | 5,114 | 14,832 | 12,869 |
Income per common and common equivalent shares | ' | ' | ' | ' |
Basic | $0.14 | $0.10 | $0.28 | $0.25 |
Diluted | $0.14 | $0.10 | $0.27 | $0.24 |
Weighted average number of common and common equivalent shares outstanding | ' | ' | ' | ' |
Basic | 52,475 | 51,342 | 53,013 | 51,727 |
Diluted | 53,821 | 53,321 | 54,550 | 53,644 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | 7,558 | 5,114 | 14,832 | 12,869 |
Foreign currency translation adjustments | -15 | 92 | ' | 29 |
Comprehensive income | $7,543 | $5,206 | $14,832 | $12,898 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net income | $14,832 | $12,869 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 3,368 | 4,036 |
Loss (gain) on disposal of property and equipment, net | 17 | -29 |
Loss on write-down / disposal of intangible assets, net | 211 | 113 |
Bond premium amortization | 675 | 174 |
Provision for doubtful accounts | 143 | 2 |
Provision for excess and obsolete inventory | 20 | 279 |
Provision for warranty | 517 | 644 |
Stock-based compensation expense | 4,121 | 2,906 |
Deferred income taxes | 9,862 | 5,212 |
Unrecognized tax benefits | -1,713 | 172 |
Excess tax benefit from stock-based compensation | -5,849 | -4,058 |
Change in assets and liabilities: | ' | ' |
Accounts and notes receivable | -4,754 | -1,994 |
Inventory | -5,039 | -1,575 |
Prepaid expenses and other assets | -1,063 | -2,243 |
Accounts payable and accrued liabilities | -1,705 | -496 |
Deferred revenue | 9,780 | 6,497 |
Customer deposits | -785 | 578 |
Net cash provided by operating activities | 22,638 | 23,087 |
Cash Flows from Investing Activities: | ' | ' |
Purchases of investments | -23,613 | -18,450 |
Proceeds from call / maturity of investments | 8,668 | 6,625 |
Purchases of property and equipment | -2,066 | -1,174 |
Proceeds from disposal of fixed assets | 10 | 34 |
Purchases of intangible assets | -125 | -271 |
Net cash used in investing activities | -17,126 | -13,236 |
Cash Flows from Financing Activities: | ' | ' |
Repurchase of common stock | -22,442 | -25,000 |
Proceeds from options exercised | 8,597 | 10,219 |
Payroll tax payments for net-settled stock awards | -1,262 | -221 |
Excess tax benefit from stock-based compensation | 5,849 | 4,058 |
Payments on capital lease obligation | -26 | -25 |
Net cash used in financing activities | -9,284 | -10,969 |
Effect of exchange rate change on cash and cash equivalents | 116 | -3 |
Net decrease in cash and cash equivalents | -3,656 | -1,121 |
Cash and cash equivalents, beginning of period | 42,271 | 36,127 |
Cash and cash equivalents, end of period | 38,615 | 35,006 |
Supplemental Disclosure: | ' | ' |
Cash paid for income taxes-net | 403 | 2,427 |
Non-Cash Transactions: | ' | ' |
Property and equipment purchases in accounts payable | $158 | $59 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||||||||||||||
1. Organization and Summary of Significant Accounting Policies | |||||||||||||||||||||||||||||||||
TASER International, Inc. (the “Company” or “TASER”) 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 business unit facilities are located in Seattle, Washington. | |||||||||||||||||||||||||||||||||
The accompanying condensed 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 in consolidation. | |||||||||||||||||||||||||||||||||
a. Basis of presentation, preparation and use of estimates | |||||||||||||||||||||||||||||||||
These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in the Company’s annual consolidated financial statements for the year ended December 31, 2013, as filed on Form 10-K. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state the Company’s financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with the Company’s Form 10-K for the year ended December 31, 2013. The results of operations for the three and nine months ended September 30, 2014 and 2013 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: | |||||||||||||||||||||||||||||||||
• | product warranty reserves, | ||||||||||||||||||||||||||||||||
• | inventory valuation reserves, | ||||||||||||||||||||||||||||||||
• | revenue recognition allocated in multiple-deliverable arrangements, | ||||||||||||||||||||||||||||||||
• | the carrying value of long-lived assets including property and equipment, goodwill and other intangible 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 these estimates. | |||||||||||||||||||||||||||||||||
b. Segment information | |||||||||||||||||||||||||||||||||
The Company is comprised of two reportable segments: the manufacture and sale of CEWs, accessories and other related 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 segments is summarized in Note 13. | |||||||||||||||||||||||||||||||||
c. Geographic information and major customers | |||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, net sales by geographic area were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
United States | $ | 37,605 | 84.8 | % | $ | 31,483 | 89.4 | % | $ | 95,336 | 81 | % | $ | 86,036 | 88 | % | |||||||||||||||||
Other Countries | 6,744 | 15.2 | 3,714 | 10.6 | 22,373 | 19 | 11,770 | 12 | |||||||||||||||||||||||||
Total | $ | 44,349 | 100 | % | $ | 35,197 | 100 | % | $ | 117,709 | 100 | % | $ | 97,806 | 100 | % | |||||||||||||||||
Sales to customers outside of the United States 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 and nine months ended September 30, 2014 and 2013, no individual country outside of the United States represented greater than 10% of total net sales. Sales in the international market generally are larger and occur more intermittently than in the domestic market due to the profile of the Company’s customers. | |||||||||||||||||||||||||||||||||
For the three months ended September 30, 2014, one customer represented approximately 11.0% of total net sales. For the nine months ended September 30, 2014, no customers represented more than 10% of total net sales. In the three and nine months ended September 30, 2013, one distributor represented approximately 12.2% and 12.1% of total net sales, respectively. At September 30, 2014, the Company had receivables from two customers comprising approximately 27.2% of the aggregate accounts receivable balance, and at December 31, 2013, the Company had receivables from one customer comprising approximately 17.4% of the aggregate accounts receivable balance. | |||||||||||||||||||||||||||||||||
d. Income per common share | |||||||||||||||||||||||||||||||||
Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Diluted income per share is calculated based on the weighted average number of common shares outstanding for the period plus the dilutive effect of stock options and restricted stock units using the treasury stock method. The calculation of the weighted average number of shares outstanding and income per share are as follows (in thousands, except per share data): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 7,558 | $ | 5,114 | $ | 14,832 | $ | 12,869 | |||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding — basic | 52,475 | 51,342 | 53,013 | 51,727 | |||||||||||||||||||||||||||||
Dilutive effect of stock-based awards | 1,346 | 1,979 | 1,537 | 1,917 | |||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 53,821 | 53,321 | 54,550 | 53,644 | |||||||||||||||||||||||||||||
Anti-dilutive stock-based awards excluded | 336 | 565 | 328 | 898 | |||||||||||||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.1 | $ | 0.28 | $ | 0.25 | |||||||||||||||||||||||||
Diluted | $ | 0.14 | $ | 0.1 | $ | 0.27 | $ | 0.24 | |||||||||||||||||||||||||
e. Revenue recognition | |||||||||||||||||||||||||||||||||
The Company derives revenue from two primary sources: (1) the sale of physical products, including CEWs, AXON cameras, corresponding extended warranties, and related accessories such as cartridges and batteries, and (2) subscription to EVIDENCE.com, the Company’s digital evidence management Software-as-a-Solution (“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 selling price if vendor-specific objective evidence 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 purchased 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 arrangement 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. | |||||||||||||||||||||||||||||||||
The Company offers 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 when the product is delivered. | |||||||||||||||||||||||||||||||||
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 5 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 a customer’s 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 these 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 September 30, 2014 there was $0.8 million in accounts and notes receivable related to such arrangements. No such balances were recorded at December 31, 2013. The Company did not record any interest income on notes receivable due to the minimal holding periods, nor has the Company recognized gains or losses upon the assignment of these notes. | |||||||||||||||||||||||||||||||||
f. Warranty costs | |||||||||||||||||||||||||||||||||
The Company warranties its CEWs, StrikeLight, AXON cameras and E-Docks 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 is reviewed quarterly to evaluate whether 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 sheets. The Company recognized additional warranty expense during the first nine months of 2014 due to a change in estimate regarding the Company’s first generation E-Dock as a result of an updated version launched in the first quarter. The Company also recognized additional warranty expense during the nine months ended September 30, 2013 due to a change in estimate for the AXON flex and X26P CEWs based on the analysis of return data for their first year of sales. Changes in the Company’s estimated product warranty liabilities are as follows (in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Balance, beginning of period, | $ | 955 | $ | 484 | |||||||||||||||||||||||||||||
Utilization of accrual | (646 | ) | (420 | ) | |||||||||||||||||||||||||||||
Warranty expense | 517 | 644 | |||||||||||||||||||||||||||||||
Balance, end of period, | $ | 826 | $ | 708 | |||||||||||||||||||||||||||||
g. Fair value of financial instruments | |||||||||||||||||||||||||||||||||
The Company uses the fair value framework, which prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants, to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||||||||||||||||||||||||||||||||
• | Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. | ||||||||||||||||||||||||||||||||
• | Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. | ||||||||||||||||||||||||||||||||
• | Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||||||||||||||||
The Company has cash equivalents and investments that at September 30, 2014 and December 31, 2013 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 September 30, 2014 is $1.0 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 policy 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. | |||||||||||||||||||||||||||||||||
h. Impairment of Long-Lived Assets | |||||||||||||||||||||||||||||||||
Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets may warrant revision or that the remaining balance of these assets may not be recoverable. Such circumstances could include, but are not limited to, a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, management estimates the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. No impairment losses were recorded in the three or nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||||||||||
i. Recently issued accounting guidance | |||||||||||||||||||||||||||||||||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation—Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements, however does not expect there to be a material impact at this time. | |||||||||||||||||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, ASU 2014-09 provides for the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification Topic No. 605, “Revenue Recognition,” most industry-specific guidance throughout the industry topics of the Accounting Standards Codification, and some cost guidance related to construction-type and production-type contracts. ASU 2014-09 is effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements. | |||||||||||||||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11 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 was effective for fiscal years beginning after December 15, 2013. The adoption of this guidance resulted in an immaterial reclassification on the Company’s consolidated balance sheet. | |||||||||||||||||||||||||||||||||
j. Reclassification of Prior Year Presentation | |||||||||||||||||||||||||||||||||
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
Cash_Cash_Equivalents_and_Inve
Cash, Cash Equivalents, and Investments | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Investments | ' | ||||||||||||||||||||||||||||
2. Cash, cash equivalents, and investments | |||||||||||||||||||||||||||||
The following tables summarizes the Company’s cash, cash equivalents and held-to-maturity investments at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Investments | Investments | |||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 36,392 | $ | — | $ | — | $ | 36,392 | $ | 36,392 | $ | — | $ | — | |||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 2,223 | — | — | 2,223 | 2,223 | — | — | ||||||||||||||||||||||
Corporate bonds | 15,455 | 3 | (20 | ) | 15,438 | — | 12,811 | 2,644 | |||||||||||||||||||||
Subtotal | 17,678 | 3 | (20 | ) | 17,661 | 2,223 | 12,811 | 2,644 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
State and municipal obligations | 17,466 | 21 | — | 17,487 | — | 14,689 | 2,777 | ||||||||||||||||||||||
Certificates of deposit | 2,473 | — | — | 2,473 | — | 1,483 | 990 | ||||||||||||||||||||||
Subtotal | 19,939 | 21 | — | 19,960 | — | 16,172 | 3,767 | ||||||||||||||||||||||
Total | $ | 74,009 | $ | 24 | $ | (20 | ) | $ | 74,013 | $ | 38,615 | $ | 28,983 | $ | 6,411 | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Investments | Investments | |||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 37,196 | $ | — | $ | — | $ | 37,196 | $ | 37,196 | $ | — | $ | — | |||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 5,030 | — | — | 5,030 | 5,030 | — | — | ||||||||||||||||||||||
Corporate bonds | 7,743 | 3 | (14 | ) | 7,732 | — | 1,102 | 6,641 | |||||||||||||||||||||
Subtotal | 12,773 | 3 | (14 | ) | 12,762 | 5,030 | 1,102 | 6,641 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
State and municipal obligations | 10,807 | 14 | — | 10,821 | 45 | 5,626 | 5,136 | ||||||||||||||||||||||
Certificates of deposit | 2,619 | — | — | 2,619 | — | 2,373 | 246 | ||||||||||||||||||||||
Subtotal | 13,426 | 14 | — | 13,440 | 45 | 7,999 | 5,382 | ||||||||||||||||||||||
Total | $ | 63,395 | $ | 17 | $ | (14 | ) | $ | 63,398 | $ | 42,271 | $ | 9,101 | $ | 12,023 | ||||||||||||||
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 September 30, 2014. 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 September 30, 2014 by contractual maturity (in thousands): | |||||||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||||||
Due in less than one year | $ | 28,983 | $ | 28,989 | |||||||||||||||||||||||||
Due after one year, through two years | 6,163 | 6,167 | |||||||||||||||||||||||||||
Due after two years | 248 | 242 | |||||||||||||||||||||||||||
Total short-term and long-term investments | $ | 35,394 | $ | 35,398 | |||||||||||||||||||||||||
Inventory
Inventory | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
3. 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. Inventories as of September 30, 2014 and December 31, 2013, consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 10,697 | $ | 7,376 | |||||
Work-in-process | 134 | 44 | |||||||
Finished goods | 6,043 | 4,688 | |||||||
Reserve for excess and obsolete inventory | (746 | ) | (999 | ) | |||||
Total inventory | $ | 16,128 | $ | 11,109 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||
4. Goodwill and Intangible assets | |||||||||||||||||||||||||||
In the fourth quarter of 2013, the Company recorded goodwill related to the acquisition of Familiar, Inc. (“Familiar”), which was calculated as the excess of the purchase price over the fair value of the identifiable tangible and intangible assets. The balance of goodwill at both September 30, 2014 and December 31, 2013 was $2.2 million. | |||||||||||||||||||||||||||
Other intangible assets consisted of the following at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||||
September 30, 2014 | 31-Dec-13 | ||||||||||||||||||||||||||
Useful Life | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||
Amortized: | |||||||||||||||||||||||||||
Domain names | 5 Years | $ | 125 | $ | (111 | ) | $ | 14 | $ | 125 | $ | (102 | ) | $ | 23 | ||||||||||||
Issued patents | 4 to 15 Years | 1,735 | (524 | ) | 1,211 | 1,529 | (441 | ) | 1,088 | ||||||||||||||||||
Issued trademarks | 9 to 11 Years | 558 | (191 | ) | 367 | 437 | (147 | ) | 290 | ||||||||||||||||||
Total amortized | 2,418 | (826 | ) | 1,592 | 2,091 | (690 | ) | 1,401 | |||||||||||||||||||
Not amortized: | |||||||||||||||||||||||||||
TASER trademark | 900 | 900 | 900 | 900 | |||||||||||||||||||||||
Patents and trademarks pending | 615 | 615 | 1,016 | 1,016 | |||||||||||||||||||||||
Total not amortized | 1,515 | 1,515 | 1,916 | 1,916 | |||||||||||||||||||||||
Total intangible assets | $ | 3,933 | $ | (826 | ) | $ | 3,107 | $ | 4,007 | $ | (690 | ) | $ | 3,317 | |||||||||||||
Amortization expense relative to intangible assets for the three months ended September 30, 2014 and 2013 was approximately $71,000 and $39,000, respectively. Amortization expense relative to intangible assets for the nine months ended September 30, 2014 and 2013 was approximately $153,000 and $115,000, respectively. Estimated amortization expense of intangible assets for the remaining three months of 2014, the next five years ended December 31, and thereafter is as follows (in thousands): | |||||||||||||||||||||||||||
2014 (remaining three months) | $ | 46 | |||||||||||||||||||||||||
2015 | 178 | ||||||||||||||||||||||||||
2016 | 171 | ||||||||||||||||||||||||||
2017 | 167 | ||||||||||||||||||||||||||
2018 | 157 | ||||||||||||||||||||||||||
2019 | 147 | ||||||||||||||||||||||||||
Thereafter | 726 | ||||||||||||||||||||||||||
Total | $ | 1,592 | |||||||||||||||||||||||||
Deferred_Revenue
Deferred Revenue | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Revenue Recognition [Abstract] | ' | ||||||||
Deferred Revenue | ' | ||||||||
5. Deferred Revenue | |||||||||
Deferred revenue consisted of the following at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Warranty | $ | 20,275 | $ | 15,889 | |||||
EVIDENCE.com | 6,864 | 4,026 | |||||||
TASER Assurance Program | 2,771 | 138 | |||||||
Other | 89 | 166 | |||||||
Total deferred revenue | 29,999 | 20,219 | |||||||
Total current portion of deferred revenue | 10,033 | 6,878 | |||||||
Total long-term portion of deferred revenue | $ | 19,966 | $ | 13,341 | |||||
Included in the current portion of deferred revenue at September 30, 2014 is approximately $3.3 million related to EVIDENCE.com and $6.3 million related to warranties, and $0.3 million related to the TASER Assurance Program. TASER Assurance Program deferred revenue includes the value of the price-lock for a future purchase as well as the guarantee of the product, both of which will be recognized upon delivery of the product at the end of the contract period. For more information relating to the Company’s revenue recognition policies please refer to Note 1(e). |
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
6. Accrued liabilities | |||||||||
Accrued liabilities consisted of the following at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued salaries and benefits | $ | 3,070 | $ | 2,328 | |||||
Accrued judgments and settlements | 330 | 3,350 | |||||||
Accrued professional fees | 368 | 286 | |||||||
Accrued warranty expense | 826 | 955 | |||||||
Accrued income and other taxes | 349 | 437 | |||||||
Other accrued expenses | 1,910 | 1,484 | |||||||
Accrued liabilities | $ | 6,853 | $ | 8,840 | |||||
The judgment in the case AA & SABA Consultant, Inc. vs. TASER of $4.5 million was paid in the second quarter of 2014, of which $3.3 million was accrued for at December 31, 2013, which reduced accrued judgments and settlements to $0.3 million as of September 30, 2014 (see Note 10). |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
7. Income taxes | |
Deferred Tax Assets | |
Net deferred income tax assets at September 30, 2014, include capitalized research and development costs, research and development tax credits, non-qualified stock-based compensation expense, deferred warranty revenue, warranty and inventory reserves, accrued vacation, and other items, partially offset by accelerated depreciation expense. The Company’s total current and long-term net deferred tax assets at September 30, 2014 are $16.8 million. | |
In preparing the Company’s condensed consolidated financial statements, management assesses the likelihood that its deferred tax assets will be realized from future taxable income. In evaluating the Company’s ability to recover its deferred income tax assets, management considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis. A valuation allowance is established if it is determined that it is more likely than not that some portion or all of the net deferred tax assets will not be realized. Management exercises significant judgment in determining its provisions for income taxes, its deferred tax assets and liabilities, and its future taxable income for purposes of assessing its ability to utilize any future tax benefit from its deferred tax assets. Although management believes that its tax estimates are reasonable, the ultimate tax determination involves significant judgments that could become subject to audit by tax authorities in the ordinary course of business, as well as the generation of sufficient future taxable income. Management has determined that it is more likely than not that future sales and profitability will allow for the utilization of the deferred tax assets; however, the deferred tax asset could be reduced or a valuation allowance could be recorded in the near-term if estimates of future taxable income during the carry forward period change. | |
The Company has completed research and development (“R&D”) tax credit studies which identified approximately $10.4 million in tax credits for federal, Arizona and California income tax purposes related to the 2003 through 2014 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 $3.2 million as of September 30, 2014. In addition, management accrued approximately $0.1 million for estimated uncertain tax positions related to certain state income tax liabilities. As of September 30, 2014 management does not expect the amount of the unrecognized tax benefit liability to increase or decrease significantly within the next 12 months. Should the total unrecognized tax benefit of $3.3 million be recognized, the Company’s effective tax rate would be favorably impacted. Approximately $1.9 million of the unrecognized tax benefit associated with research and development credits has been netted against the research and development credit deferred tax asset. | |
Effective Tax Rate | |
The Company’s overall effective tax rate for the nine months ended September 30, 2014, after discrete period adjustments, was 36.9%. Before discrete adjustments the tax rate was 37.6%, which is above the statutory rate due to the impact of state taxes and non-deductible expenses for items such as Incentive Stock Option (“ISO”) expense, meals and entertainment and lobbying fees, but also reduced by the domestic production activities deduction, the net effects of which makes projected annual net income for tax purposes higher than our book pre-tax income. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
8. Stockholders’ equity | |||||||||||||||||
Stock Option Activity | |||||||||||||||||
In May 2013, the Company’s stockholders approved a new stock incentive plan authorizing an additional 1.6 million shares, plus remaining available shares under a prior plan for issuance under the new plan. Combined with the legacy stock incentive plans, there are approximately 1.9 million shares available for grant as of September 30, 2014. | |||||||||||||||||
Performance-based stock awards | |||||||||||||||||
The Company has issued performance-based stock options and performance-based restricted stock units (“RSUs”), the vesting of which is contingent upon the achievement of certain performance criteria related to the operating performance of the Company as well as successful and timely development and market acceptance of future product introductions. In addition, certain of the performance RSUs have additional service requirements subsequent to the achievement of the performance criteria. Compensation expense is recognized over the implicit service period (the longer of the period the performance condition is expected to be achieved or the required service period) based on management’s estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date. | |||||||||||||||||
Restricted Stock Units | |||||||||||||||||
The following table summarizes RSU activity for the nine months ended September 30, 2014 (number of units and aggregate intrinsic value in thousands): | |||||||||||||||||
Number of | Weighted | Aggregate | |||||||||||||||
Units | Average Grant- | Intrinsic Value | |||||||||||||||
Date Fair Value | |||||||||||||||||
Units outstanding, beginning of period | 1,279 | $ | 9.67 | ||||||||||||||
Granted | 502 | 16.73 | |||||||||||||||
Released | (369 | ) | 7.51 | ||||||||||||||
Forfeited | (144 | ) | 12.83 | ||||||||||||||
Units outstanding, end of period | 1,268 | 12.75 | $ | 19,575 | |||||||||||||
Aggregate intrinsic value represents the Company’s closing stock price on the last trading day of the period, which was $15.44 per share on September 30, 2014, multiplied by the number of RSUs outstanding. As of September 30, 2014, there was $11.4 million in unrecognized compensation cost related to RSUs granted under the Company’s stock plans. The Company expect to recognize this cost over a weighted average period of 30 months. RSUs are released when vesting requirements are met. | |||||||||||||||||
In the nine months ended September 30, 2014, the Company granted approximately 0.1 million performance-based RSUs, which are included in the table above. Of the approximately 0.3 million performance-based RSUs outstanding as of September 30, 2014, the performance criteria have been met for approximately 0.1 million units, which will vest upon the completion of service requirements. Certain of the performance-based RSUs granted in 2014 contain provisions whereby the amount of RSUs that ultimately vest is dependent upon the level of achievement of performance metrics. The amount of RSUs included in the table above related to such grants is the target level, which is the Company’s best estimate of the amount of RSUs that will vest. The maximum additional number of RSUs that could be earned is approximately 0.1 million, which are not included in the table above. | |||||||||||||||||
Certain RSUs that vested in the first nine months of 2014 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 0.1 million with a value of approximately $1.3 million on their respective vesting dates as determined by the Company’s closing stock price on such dates. 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 vesting. | |||||||||||||||||
Stock Options | |||||||||||||||||
The following table summarizes stock option activity for the nine months ended September 30, 2014 (number of options and aggregate intrinsic value in thousands): | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
options | Average | Average | Intrinsic Value | ||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual | |||||||||||||||||
Life (years) | |||||||||||||||||
Options outstanding, beginning of period | 3,366 | $ | 6.15 | ||||||||||||||
Granted | — | ||||||||||||||||
Exercised | (1,218 | ) | 7.06 | ||||||||||||||
Expired / forfeited | (54 | ) | 10.29 | ||||||||||||||
Options outstanding, end of period | 2,094 | 5.51 | 4.7 | $ | 20,925 | ||||||||||||
Exercisable at September 30, 2014 | 2,055 | 5.53 | 4.7 | 20,508 | |||||||||||||
Expected to vest after September 30, 2014 | 27 | 4.73 | 4.89 | 287 | |||||||||||||
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 $15.44 on September 30, 2014. The aggregate intrinsic value of options exercised for the three and nine months ended September 30, 2014 was approximately $1.7 million and $14.4 million, respectively. The aggregate intrinsic value of options exercised for the three and nine months ended September 30, 2013 was approximately $5.3 million and $9.1 million, respectively. As of September 30, 2014, total unrecognized stock-based compensation expense related to unvested stock options was approximately $32,000, which is expected to be recognized over a remaining weighted average period of approximately nine months. Options expected to vest are presented net of expected forfeitures. | |||||||||||||||||
Included in the table above is approximately 0.4 million of performance-based options of which, 0.3 million are vested. The Company does not expect the remaining performance-based options to vest and does not expect to recognize any future expense related to performance-based stock options. | |||||||||||||||||
Share-Based Compensation Expense | |||||||||||||||||
When granted, 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. No options were awarded during the nine month periods ended September 30, 2014 or 2013. The estimated fair value of stock-based compensation awards is amortized to expense on a straight-line basis over the 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. | |||||||||||||||||
Share-based compensation was classified as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of products sold | $ | 61 | $ | 50 | $ | 149 | $ | 134 | |||||||||
Sales, general and administrative expenses | 940 | 736 | 2,598 | 2,293 | |||||||||||||
Research and development expenses | 436 | 177 | 1,374 | 479 | |||||||||||||
Total share-based compensation | $ | 1,437 | $ | 963 | $ | 4,121 | $ | 2,906 | |||||||||
Total share-based compensation expense recognized in the statements of operations for the three months ended September 30, 2014 and 2013, included approximately $2,000 and $22,000, respectively, related to incentive stock options for which no tax benefit is recognized. Total share-based compensation expense recognized in the statements of operations for the nine months ended September 30, 2014 and 2013, included approximately $18,000 and $0.1 million, respectively, related to incentive stock options for which no tax benefit is recognized. | |||||||||||||||||
Issuer Purchases of Equity Securities | |||||||||||||||||
In May 2014, the Company announced that TASER’s Board of Directors authorized a stock repurchase program to acquire up to $30.0 million of the Company’s outstanding common stock subject to stock market conditions and corporate considerations. During the quarter ended September 30, 2014, the Company purchased approximately 0.2 million common shares under this program for a total cost of approximately $2.9 million, or a weighted average cost of $11.94 per share. The weighted average cost includes the average price paid per share of $11.91, plus any applicable administrative costs for the transaction. During the five month period from inception of the repurchase program through September 30, 2014, the Company purchased approximately 1.7 million common shares under this program for a total cost of approximately $22.4 million, or a weighted average cost of $12.99 per share. The weighted average cost includes the average price paid per share of $12.96, plus any applicable administrative costs for the transaction. The Company has approximately $7.6 million remaining on the repurchase authorization as of September 30, 2014. Repurchases may be made from time to time on the open market. |
Line_of_Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
9. Line of credit | |
The Company has a $10.0 million revolving line of credit with a domestic bank. As of September 30, 2014, the Company had letters of credit outstanding of approximately $47,000 under the facility. 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. At September 30, 2014 and December 31, 2013, there were no borrowings under the line of credit. 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, as defined in the line of credit, can be no less than 1.25:1, based upon a trailing twelve-month period. At September 30, 2014, the Company’s tangible net worth ratio was 0.40:1 and its fixed charge coverage ratio was 2.86:1, and accordingly, the Company was in compliance with these covenants. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||||
10. Commitments and contingencies | |||||||||||||||||||||||||||
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 Quarterly Report on Form 10-Q. | |||||||||||||||||||||||||||
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 exposure exceeds the Company’s liability insurance deductibles. Due to the confidentiality of the Company’s litigation strategy and the confidentiality agreements that are executed in the event of a settlement, the Company does not generally 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 third quarter of 2014, we have reduced our outstanding product liability cases from 55 active to 16 active cases. | |||||||||||||||||||||||||||
Management believes that pre-2009 cases have a different risk profile than cases which have occurred since the risk management procedures were introduced in 2009. Therefore, the Company necessarily treats certain pre-2009 cases as exceptions to the Company’s general no settlement policy in order to reduce caseload, legal costs and liability exposure. The Company intends to continue its successful practice of aggressively defending and generally not settling litigation except in very limited and unusual circumstances as described above. | |||||||||||||||||||||||||||
With respect to each of the pending lawsuits, the following table lists the name of plaintiff, the date the Company was served with process, the jurisdiction in which the case is pending, the type of claim and the status of the matter. | |||||||||||||||||||||||||||
Plaintiff | 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 | Pleading Phase | |||||||||||||||||||||||
Wilson | 11-May | US District Court, ED MO | Wrongful Death | Trial scheduled | |||||||||||||||||||||||
for Nov. 2014 | |||||||||||||||||||||||||||
Ramsey | 12-Jan | 17th Judicial Circuit Court, Broward County, FL | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Rascom | 14-Apr | US District Court, AZ | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Schrock | 14-Sep | San Bernardino County Superior Court, CA | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Ward | 14-Oct | Richmond County Superior Court, GA | Officer Fired | Pleading Phase | |||||||||||||||||||||||
Moore | 14-Oct | St. Louis County Circuit Court, MO | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
In addition, other product litigation matters in which the Company is involved that are currently on appeal are listed below: | |||||||||||||||||||||||||||
Plaintiff | Month | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Served | |||||||||||||||||||||||||||
Glowczenski | 4-Oct | US District Court, ED NY | Wrongful Death | Notice of Appeal filed Sep. 2013; Opening Brief was filed Jan. 2014; Answering Brief filed Apr. 2014. | |||||||||||||||||||||||
Mitchell | 12-Apr | US District Court, ED MI | Wrongful Death | Notice of Appeal filed Aug. 2014 | |||||||||||||||||||||||
Cases that were dismissed or judgment entered during the third quarter of 2014, and through the filing date of this Quarterly Report on Form 10-Q, are listed in the table below. Cases that were dismissed or judgment entered in prior fiscal quarters are not included in this table. | |||||||||||||||||||||||||||
Plaintiff | Month | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Served | |||||||||||||||||||||||||||
Faltesek | 14-Apr | Harris County District Court, TX | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Mitchell | 12-Apr | US District Court, ED MI | Wrongful Death | Motion for | |||||||||||||||||||||||
Summary Judgment | |||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||
McCue | 14-Mar | US District Court, District of Maine | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Slade | 13-Dec | US District Court, ED TX | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Goodard | 14-Jul | Pinellas County Circuit Court, FL | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Parker | 14-Jul | US District Court, SD TX | 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 Appeal | ||||||||||||||||||||
Start Date | End Date | Coverage | Amount | Costs | Insurance | ||||||||||||||||||||||
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 | — | Grable, Koon | ||||||||||||||||||||
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 | ||||||||||||||||||||
Jan – Jun 2012 | 12/15/11 | 6/25/12 | 7 | 1 | N | 7 | Ramsey, Firman, Ricks, Mitchell | ||||||||||||||||||||
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 | ||||||||||||||||||||
2014 | 12/15/13 | 12/15/14 | 12 | 4 | N | 12 | Rascom, Schrock, Moore, Ward | ||||||||||||||||||||
Other Litigation | |||||||||||||||||||||||||||
AA & Saba (AZ) Lawsuit | |||||||||||||||||||||||||||
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 in that year. 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. The Company recorded an additional $2.6 million of expense in the fourth quarter of 2013 as Litigation judgments on the statement of operations. | |||||||||||||||||||||||||||
On May 6, 2014 the court issued a Minute Entry Order awarding Plaintiff approximately $1.2 million in attorneys’ fees, costs and expenses which was recorded as a litigation settlement in the second quarter of 2014. On May 6, 2014 the matter was resolved and dismissed. | |||||||||||||||||||||||||||
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. In certain legal matters, we record a liability when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of our prevailing, and the severity of any potential loss. We reevaluate and update our accruals as matters progress over time. | |||||||||||||||||||||||||||
Based on our assessment of outstanding litigation and claims as of September 30, 2014, the Company has determined that it is not reasonably possible that these lawsuits will individually, or in the aggregate, materially affect our results of operations, financial condition or cash flows. However, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
11. Related party transactions | |
The Company engages Mark Kroll, a member of the Board of Directors, to provide consulting services. Expenses relating to these services for the three months ended September 30, 2014 and 2013 were approximately $50,000 and $59,000, respectively. Expenses relating to these services for the nine months ended September 30, 2014 and 2013 were approximately $121,000 and $125,000, respectively. At September 30, 2014 and December 31, 2013, the Company had accrued liabilities for these consulting services of approximately $26,000 and $12,000, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
12. 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 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 for their cash contributions and are allocated gains or losses based upon the performance of the investments selected by the participant. All gains or losses are allocated fully to plan participants and the Company does not guarantee a rate of return on deferred balances. Assets related to this plan consist of corporate-owned life insurance contracts and are included in Other assets in the condensed consolidated balance sheets. Participants have no rights or claims with respect to any plan assets and any such assets are subject to the claims of the Company’s general creditors. | |
Contributions to the plans are made by both the employee and the Company. Company contributions are based on the level of employee contributions and are immediately vested. The Company’s matching contributions to the 401(k) plan for the three months ended September 30, 2014 and 2013, were both approximately $0.2 million. The Company’s matching contributions to the 401(k) plan for the nine months ended September 30, 2014 and 2013, were $0.6 million and $0.5 million, respectively. The Company has recorded matching contributions to the non-qualified deferred compensation plan related to the three and nine months ended September 30, 2014, of approximately $6,000 and $20,000, respectively. The Company made matching contributions of approximately $6,000 to the non-qualified deferred compensation plan for the three and nine months ended September 30, 2013. Future matching or profit sharing contributions to the plans are at the Company’s sole discretion. |
Segment_Data
Segment Data | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Data | ' | ||||||||||||||||||||||||
13. Segment data | |||||||||||||||||||||||||
The Company’s operations are comprised of two reportable segments: the manufacture and sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the 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): | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
TASER | EVIDENCE.com | TASER | EVIDENCE.com | ||||||||||||||||||||||
Weapons | & Video | Total | Weapons | & Video | Total | ||||||||||||||||||||
Product sales | $ | 40,010 | $ | 3,181 | $ | 43,191 | $ | 31,627 | $ | 3,103 | $ | 34,730 | |||||||||||||
Service revenue | — | 1,158 | 1,158 | — | 467 | 467 | |||||||||||||||||||
Net sales | 40,010 | 4,339 | 44,349 | 31,627 | 3,570 | 35,197 | |||||||||||||||||||
Cost of products sold | 12,443 | 2,695 | 15,138 | 10,908 | 1,896 | 12,804 | |||||||||||||||||||
Cost of services delivered | — | 498 | 498 | — | 297 | 297 | |||||||||||||||||||
Gross margin | 27,567 | 1,146 | 28,713 | 20,719 | 1,377 | 22,096 | |||||||||||||||||||
Sales, general and administrative expenses | 10,028 | 2,413 | 12,441 | 11,131 | 1,645 | 12,776 | |||||||||||||||||||
Research and development expenses | 1,050 | 2,709 | 3,759 | 1,160 | 1,279 | 2,439 | |||||||||||||||||||
Income (loss) from operations | $ | 16,489 | $ | (3,976 | ) | $ | 12,513 | $ | 8,428 | $ | (1,547 | ) | $ | 6,881 | |||||||||||
Purchases of property and equipment | $ | 803 | $ | 41 | $ | 844 | $ | 230 | $ | 105 | $ | 335 | |||||||||||||
Purchases of intangible assets | 14 | 2 | 16 | 67 | 2 | 69 | |||||||||||||||||||
Depreciation and amortization | 1,010 | 91 | 1,101 | 1,025 | 63 | 1,088 | |||||||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
TASER | EVIDENCE.com | TASER | EVIDENCE.com | ||||||||||||||||||||||
Weapons | & Video | Total | Weapons | & Video | Total | ||||||||||||||||||||
Product sales | $ | 105,160 | $ | 9,812 | $ | 114,972 | $ | 89,902 | $ | 6,853 | $ | 96,755 | |||||||||||||
Service revenue | — | 2,737 | 2,737 | — | 1,051 | 1,051 | |||||||||||||||||||
Net sales | 105,160 | 12,549 | 117,709 | 89,902 | 7,904 | 97,806 | |||||||||||||||||||
Cost of products sold | 34,024 | 8,111 | 42,135 | 31,535 | 4,440 | 35,975 | |||||||||||||||||||
Cost of services delivered | — | 1,439 | 1,439 | — | 1,542 | 1,542 | |||||||||||||||||||
Gross margin | 71,136 | 2,999 | 74,135 | 58,367 | 1,922 | 60,289 | |||||||||||||||||||
Sales, general and administrative expenses | 32,218 | 7,516 | 39,734 | 30,622 | 4,276 | 34,898 | |||||||||||||||||||
Research and development expenses | 2,660 | 8,160 | 10,820 | 3,126 | 3,318 | 6,444 | |||||||||||||||||||
Income (loss) from operations | $ | 36,258 | $ | (12,677 | ) | $ | 23,581 | $ | 24,619 | $ | (5,672 | ) | $ | 18,947 | |||||||||||
Purchases of property and equipment | $ | 1,836 | $ | 230 | $ | 2,066 | $ | 828 | $ | 346 | $ | 1,174 | |||||||||||||
Purchases of intangible assets | 123 | 2 | 125 | 260 | 11 | 271 | |||||||||||||||||||
Depreciation and amortization | 3,078 | 290 | 3,368 | 2,998 | 1,038 | 4,036 |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Basis of Presentation, Preparation and Use of Estimates | ' | ||||||||||||||||||||||||||||||||
a. Basis of presentation, preparation and use of estimates | |||||||||||||||||||||||||||||||||
These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) has been condensed or omitted. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in the Company’s annual consolidated financial statements for the year ended December 31, 2013, as filed on Form 10-K. In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to fairly state the Company’s financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with the Company’s Form 10-K for the year ended December 31, 2013. The results of operations for the three and nine months ended September 30, 2014 and 2013 are not necessarily indicative of the results to be expected for the full year (or any other period). Significant estimates and assumptions in these unaudited condensed consolidated financial statements include: | |||||||||||||||||||||||||||||||||
• | product warranty reserves, | ||||||||||||||||||||||||||||||||
• | inventory valuation reserves, | ||||||||||||||||||||||||||||||||
• | revenue recognition allocated in multiple-deliverable arrangements, | ||||||||||||||||||||||||||||||||
• | the carrying value of long-lived assets including property and equipment, goodwill and other intangible 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 these estimates. | |||||||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||||||
b. Segment information | |||||||||||||||||||||||||||||||||
The Company is comprised of two reportable segments: the manufacture and sale of CEWs, accessories and other related 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 segments is summarized in Note 13. | |||||||||||||||||||||||||||||||||
Geographic Information and Major Customers | ' | ||||||||||||||||||||||||||||||||
c. Geographic information and major customers | |||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, net sales by geographic area were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
United States | $ | 37,605 | 84.8 | % | $ | 31,483 | 89.4 | % | $ | 95,336 | 81 | % | $ | 86,036 | 88 | % | |||||||||||||||||
Other Countries | 6,744 | 15.2 | 3,714 | 10.6 | 22,373 | 19 | 11,770 | 12 | |||||||||||||||||||||||||
Total | $ | 44,349 | 100 | % | $ | 35,197 | 100 | % | $ | 117,709 | 100 | % | $ | 97,806 | 100 | % | |||||||||||||||||
Sales to customers outside of the United States 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 and nine months ended September 30, 2014 and 2013, no individual country outside of the United States represented greater than 10% of total net sales. Sales in the international market generally are larger and occur more intermittently than in the domestic market due to the profile of the Company’s customers. | |||||||||||||||||||||||||||||||||
For the three months ended September 30, 2014, one customer represented approximately 11.0% of total net sales. For the nine months ended September 30, 2014, no customers represented more than 10% of total net sales. In the three and nine months ended September 30, 2013, one distributor represented approximately 12.2% and 12.1% of total net sales, respectively. At September 30, 2014, the Company had receivables from two customers comprising approximately 27.2% of the aggregate accounts receivable balance, and at December 31, 2013, the Company had receivables from one customer comprising approximately 17.4% of the aggregate accounts receivable balance. | |||||||||||||||||||||||||||||||||
Income Per Common Share | ' | ||||||||||||||||||||||||||||||||
d. Income per common share | |||||||||||||||||||||||||||||||||
Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods presented. Diluted income per share is calculated based on the weighted average number of common shares outstanding for the period plus the dilutive effect of stock options and restricted stock units using the treasury stock method. The calculation of the weighted average number of shares outstanding and income per share are as follows (in thousands, except per share data): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 7,558 | $ | 5,114 | $ | 14,832 | $ | 12,869 | |||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding — basic | 52,475 | 51,342 | 53,013 | 51,727 | |||||||||||||||||||||||||||||
Dilutive effect of stock-based awards | 1,346 | 1,979 | 1,537 | 1,917 | |||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 53,821 | 53,321 | 54,550 | 53,644 | |||||||||||||||||||||||||||||
Anti-dilutive stock-based awards excluded | 336 | 565 | 328 | 898 | |||||||||||||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.1 | $ | 0.28 | $ | 0.25 | |||||||||||||||||||||||||
Diluted | $ | 0.14 | $ | 0.1 | $ | 0.27 | $ | 0.24 | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||||||||||
e. Revenue recognition | |||||||||||||||||||||||||||||||||
The Company derives revenue from two primary sources: (1) the sale of physical products, including CEWs, AXON cameras, corresponding extended warranties, and related accessories such as cartridges and batteries, and (2) subscription to EVIDENCE.com, the Company’s digital evidence management Software-as-a-Solution (“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 selling price if vendor-specific objective evidence 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 purchased 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 arrangement 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. | |||||||||||||||||||||||||||||||||
The Company offers 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 when the product is delivered. | |||||||||||||||||||||||||||||||||
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 5 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 a customer’s 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 these 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 September 30, 2014 there was $0.8 million in accounts and notes receivable related to such arrangements. No such balances were recorded at December 31, 2013. The Company did not record any interest income on notes receivable due to the minimal holding periods, nor has the Company recognized gains or losses upon the assignment of these notes. | |||||||||||||||||||||||||||||||||
Warranty Costs | ' | ||||||||||||||||||||||||||||||||
f. Warranty costs | |||||||||||||||||||||||||||||||||
The Company warranties its CEWs, StrikeLight, AXON cameras and E-Docks 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 is reviewed quarterly to evaluate whether 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 sheets. The Company recognized additional warranty expense during the first nine months of 2014 due to a change in estimate regarding the Company’s first generation E-Dock as a result of an updated version launched in the first quarter. The Company also recognized additional warranty expense during the nine months ended September 30, 2013 due to a change in estimate for the AXON flex and X26P CEWs based on the analysis of return data for their first year of sales. Changes in the Company’s estimated product warranty liabilities are as follows (in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Balance, beginning of period, | $ | 955 | $ | 484 | |||||||||||||||||||||||||||||
Utilization of accrual | (646 | ) | (420 | ) | |||||||||||||||||||||||||||||
Warranty expense | 517 | 644 | |||||||||||||||||||||||||||||||
Balance, end of period, | $ | 826 | $ | 708 | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||||||||||||
g. Fair value of financial instruments | |||||||||||||||||||||||||||||||||
The Company uses the fair value framework, which prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants, to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||||||||||||||||||||||||||||||||
• | Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. | ||||||||||||||||||||||||||||||||
• | Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. | ||||||||||||||||||||||||||||||||
• | Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||||||||||||||||
The Company has cash equivalents and investments that at September 30, 2014 and December 31, 2013 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 September 30, 2014 is $1.0 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 policy 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. | |||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||||||||||||||||||
h. Impairment of Long-Lived Assets | |||||||||||||||||||||||||||||||||
Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and identifiable intangible assets may warrant revision or that the remaining balance of these assets may not be recoverable. Such circumstances could include, but are not limited to, a change in the product mix, a change in the way products are created, produced or delivered, or a significant change in the way products are branded and marketed. In performing the review for recoverability, management estimates the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. No impairment losses were recorded in the three or nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||||||||||
Recently Issued Accounting Guidance | ' | ||||||||||||||||||||||||||||||||
i. Recently issued accounting guidance | |||||||||||||||||||||||||||||||||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Accounting Standards Codification Topic No. 718, “Compensation—Stock Compensation” (“ASC 718”), as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in ASU 2014-12 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in ASU 2014-12 either: (i) prospectively to all awards granted or modified after the effective date; or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements, however does not expect there to be a material impact at this time. | |||||||||||||||||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, ASU 2014-09 provides for the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 supersedes the revenue recognition requirements in Accounting Standards Codification Topic No. 605, “Revenue Recognition,” most industry-specific guidance throughout the industry topics of the Accounting Standards Codification, and some cost guidance related to construction-type and production-type contracts. ASU 2014-09 is effective for public entities for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company is currently evaluating the potential impact of the adoption of this guidance on its consolidated financial statements. | |||||||||||||||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11 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 was effective for fiscal years beginning after December 15, 2013. The adoption of this guidance resulted in an immaterial reclassification on the Company’s consolidated balance sheet. | |||||||||||||||||||||||||||||||||
Reclassification of Prior Year Presentation | ' | ||||||||||||||||||||||||||||||||
j. Reclassification of Prior Year Presentation | |||||||||||||||||||||||||||||||||
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Net Sales by Geographic Area | ' | ||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, net sales by geographic area were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
United States | $ | 37,605 | 84.8 | % | $ | 31,483 | 89.4 | % | $ | 95,336 | 81 | % | $ | 86,036 | 88 | % | |||||||||||||||||
Other Countries | 6,744 | 15.2 | 3,714 | 10.6 | 22,373 | 19 | 11,770 | 12 | |||||||||||||||||||||||||
Total | $ | 44,349 | 100 | % | $ | 35,197 | 100 | % | $ | 117,709 | 100 | % | $ | 97,806 | 100 | % | |||||||||||||||||
Weighted Average Number of Shares Outstanding and Income Per Share | ' | ||||||||||||||||||||||||||||||||
The calculation of the weighted average number of shares outstanding and income per share are as follows (in thousands, except per share data): | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | |||||||||||||||||||||||||||||||||
Net income | $ | 7,558 | $ | 5,114 | $ | 14,832 | $ | 12,869 | |||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding — basic | 52,475 | 51,342 | 53,013 | 51,727 | |||||||||||||||||||||||||||||
Dilutive effect of stock-based awards | 1,346 | 1,979 | 1,537 | 1,917 | |||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 53,821 | 53,321 | 54,550 | 53,644 | |||||||||||||||||||||||||||||
Anti-dilutive stock-based awards excluded | 336 | 565 | 328 | 898 | |||||||||||||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||||||||||||
Basic | $ | 0.14 | $ | 0.1 | $ | 0.28 | $ | 0.25 | |||||||||||||||||||||||||
Diluted | $ | 0.14 | $ | 0.1 | $ | 0.27 | $ | 0.24 | |||||||||||||||||||||||||
Summary of Changes in Estimated Product Warranty Liabilities | ' | ||||||||||||||||||||||||||||||||
Changes in the Company’s estimated product warranty liabilities are as follows (in thousands): | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Balance, beginning of period, | $ | 955 | $ | 484 | |||||||||||||||||||||||||||||
Utilization of accrual | (646 | ) | (420 | ) | |||||||||||||||||||||||||||||
Warranty expense | 517 | 644 | |||||||||||||||||||||||||||||||
Balance, end of period, | $ | 826 | $ | 708 | |||||||||||||||||||||||||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents, and Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type | ' | ||||||||||||||||||||||||||||
The following tables summarizes the Company’s cash, cash equivalents and held-to-maturity investments at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||
As of September 30, 2014 | |||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Investments | Investments | |||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 36,392 | $ | — | $ | — | $ | 36,392 | $ | 36,392 | $ | — | $ | — | |||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 2,223 | — | — | 2,223 | 2,223 | — | — | ||||||||||||||||||||||
Corporate bonds | 15,455 | 3 | (20 | ) | 15,438 | — | 12,811 | 2,644 | |||||||||||||||||||||
Subtotal | 17,678 | 3 | (20 | ) | 17,661 | 2,223 | 12,811 | 2,644 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
State and municipal obligations | 17,466 | 21 | — | 17,487 | — | 14,689 | 2,777 | ||||||||||||||||||||||
Certificates of deposit | 2,473 | — | — | 2,473 | — | 1,483 | 990 | ||||||||||||||||||||||
Subtotal | 19,939 | 21 | — | 19,960 | — | 16,172 | 3,767 | ||||||||||||||||||||||
Total | $ | 74,009 | $ | 24 | $ | (20 | ) | $ | 74,013 | $ | 38,615 | $ | 28,983 | $ | 6,411 | ||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short-Term | Long-Term | |||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Investments | Investments | |||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 37,196 | $ | — | $ | — | $ | 37,196 | $ | 37,196 | $ | — | $ | — | |||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market funds | 5,030 | — | — | 5,030 | 5,030 | — | — | ||||||||||||||||||||||
Corporate bonds | 7,743 | 3 | (14 | ) | 7,732 | — | 1,102 | 6,641 | |||||||||||||||||||||
Subtotal | 12,773 | 3 | (14 | ) | 12,762 | 5,030 | 1,102 | 6,641 | |||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
State and municipal obligations | 10,807 | 14 | — | 10,821 | 45 | 5,626 | 5,136 | ||||||||||||||||||||||
Certificates of deposit | 2,619 | — | — | 2,619 | — | 2,373 | 246 | ||||||||||||||||||||||
Subtotal | 13,426 | 14 | — | 13,440 | 45 | 7,999 | 5,382 | ||||||||||||||||||||||
Total | $ | 63,395 | $ | 17 | $ | (14 | ) | $ | 63,398 | $ | 42,271 | $ | 9,101 | $ | 12,023 | ||||||||||||||
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 September 30, 2014 by contractual maturity (in thousands): | |||||||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||||||
Due in less than one year | $ | 28,983 | $ | 28,989 | |||||||||||||||||||||||||
Due after one year, through two years | 6,163 | 6,167 | |||||||||||||||||||||||||||
Due after two years | 248 | 242 | |||||||||||||||||||||||||||
Total short-term and long-term investments | $ | 35,394 | $ | 35,398 | |||||||||||||||||||||||||
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories as of September 30, 2014 and December 31, 2013, consisted of the following (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 10,697 | $ | 7,376 | |||||
Work-in-process | 134 | 44 | |||||||
Finished goods | 6,043 | 4,688 | |||||||
Reserve for excess and obsolete inventory | (746 | ) | (999 | ) | |||||
Total inventory | $ | 16,128 | $ | 11,109 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Other Intangible Assets Other than goodwill | ' | ||||||||||||||||||||||||||
Other intangible assets consisted of the following at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||||
September 30, 2014 | 31-Dec-13 | ||||||||||||||||||||||||||
Useful Life | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||||
Carrying | Amortization | Amount | Carrying | Amortization | Amount | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||
Amortized: | |||||||||||||||||||||||||||
Domain names | 5 Years | $ | 125 | $ | (111 | ) | $ | 14 | $ | 125 | $ | (102 | ) | $ | 23 | ||||||||||||
Issued patents | 4 to 15 Years | 1,735 | (524 | ) | 1,211 | 1,529 | (441 | ) | 1,088 | ||||||||||||||||||
Issued trademarks | 9 to 11 Years | 558 | (191 | ) | 367 | 437 | (147 | ) | 290 | ||||||||||||||||||
Total amortized | 2,418 | (826 | ) | 1,592 | 2,091 | (690 | ) | 1,401 | |||||||||||||||||||
Not amortized: | |||||||||||||||||||||||||||
TASER trademark | 900 | 900 | 900 | 900 | |||||||||||||||||||||||
Patents and trademarks pending | 615 | 615 | 1,016 | 1,016 | |||||||||||||||||||||||
Total not amortized | 1,515 | 1,515 | 1,916 | 1,916 | |||||||||||||||||||||||
Total intangible assets | $ | 3,933 | $ | (826 | ) | $ | 3,107 | $ | 4,007 | $ | (690 | ) | $ | 3,317 | |||||||||||||
Estimated Amortization Expense of Intangible Assets | ' | ||||||||||||||||||||||||||
Estimated amortization expense of intangible assets for the remaining three months of 2014, the next five years ended December 31, and thereafter is as follows (in thousands): | |||||||||||||||||||||||||||
2014 (remaining three months) | $ | 46 | |||||||||||||||||||||||||
2015 | 178 | ||||||||||||||||||||||||||
2016 | 171 | ||||||||||||||||||||||||||
2017 | 167 | ||||||||||||||||||||||||||
2018 | 157 | ||||||||||||||||||||||||||
2019 | 147 | ||||||||||||||||||||||||||
Thereafter | 726 | ||||||||||||||||||||||||||
Total | $ | 1,592 | |||||||||||||||||||||||||
Deferred_Revenue_Tables
Deferred Revenue (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Revenue Recognition [Abstract] | ' | ||||||||
Summary of Deferred Revenue | ' | ||||||||
Deferred revenue consisted of the following at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Warranty | $ | 20,275 | $ | 15,889 | |||||
EVIDENCE.com | 6,864 | 4,026 | |||||||
TASER Assurance Program | 2,771 | 138 | |||||||
Other | 89 | 166 | |||||||
Total deferred revenue | 29,999 | 20,219 | |||||||
Total current portion of deferred revenue | 10,033 | 6,878 | |||||||
Total long-term portion of deferred revenue | $ | 19,966 | $ | 13,341 | |||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities consisted of the following at September 30, 2014 and December 31, 2013 (in thousands): | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued salaries and benefits | $ | 3,070 | $ | 2,328 | |||||
Accrued judgments and settlements | 330 | 3,350 | |||||||
Accrued professional fees | 368 | 286 | |||||||
Accrued warranty expense | 826 | 955 | |||||||
Accrued income and other taxes | 349 | 437 | |||||||
Other accrued expenses | 1,910 | 1,484 | |||||||
Accrued liabilities | $ | 6,853 | $ | 8,840 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Summary of Restricted Stock Unit Activity | ' | ||||||||||||||||
The following table summarizes RSU activity for the nine months ended September 30, 2014 (number of units and aggregate intrinsic value in thousands): | |||||||||||||||||
Number of | Weighted | Aggregate | |||||||||||||||
Units | Average Grant- | Intrinsic Value | |||||||||||||||
Date Fair Value | |||||||||||||||||
Units outstanding, beginning of period | 1,279 | $ | 9.67 | ||||||||||||||
Granted | 502 | 16.73 | |||||||||||||||
Released | (369 | ) | 7.51 | ||||||||||||||
Forfeited | (144 | ) | 12.83 | ||||||||||||||
Units outstanding, end of period | 1,268 | 12.75 | $ | 19,575 | |||||||||||||
Summary of the Company's Stock Options Activity | ' | ||||||||||||||||
The following table summarizes stock option activity for the nine months ended September 30, 2014 (number of options and aggregate intrinsic value in thousands): | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
options | Average | Average | Intrinsic Value | ||||||||||||||
Exercise Price | Remaining | ||||||||||||||||
Contractual | |||||||||||||||||
Life (years) | |||||||||||||||||
Options outstanding, beginning of period | 3,366 | $ | 6.15 | ||||||||||||||
Granted | — | ||||||||||||||||
Exercised | (1,218 | ) | 7.06 | ||||||||||||||
Expired / forfeited | (54 | ) | 10.29 | ||||||||||||||
Options outstanding, end of period | 2,094 | 5.51 | 4.7 | $ | 20,925 | ||||||||||||
Exercisable at September 30, 2014 | 2,055 | 5.53 | 4.7 | 20,508 | |||||||||||||
Expected to vest after September 30, 2014 | 27 | 4.73 | 4.89 | 287 | |||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-based compensation was classified as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of products sold | $ | 61 | $ | 50 | $ | 149 | $ | 134 | |||||||||
Sales, general and administrative expenses | 940 | 736 | 2,598 | 2,293 | |||||||||||||
Research and development expenses | 436 | 177 | 1,374 | 479 | |||||||||||||
Total share-based compensation | $ | 1,437 | $ | 963 | $ | 4,121 | $ | 2,906 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Loss Contingencies | ' | ||||||||||||||||||||||||||
With respect to each of the pending lawsuits, the following table lists the name of plaintiff, the date the Company was served with process, the jurisdiction in which the case is pending, the type of claim and the status of the matter. | |||||||||||||||||||||||||||
Plaintiff | 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 | Pleading Phase | |||||||||||||||||||||||
Wilson | 11-May | US District Court, ED MO | Wrongful Death | Trial scheduled | |||||||||||||||||||||||
for Nov. 2014 | |||||||||||||||||||||||||||
Ramsey | 12-Jan | 17th Judicial Circuit Court, Broward County, FL | Wrongful Death | Discovery Phase | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Rascom | 14-Apr | US District Court, AZ | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Schrock | 14-Sep | San Bernardino County Superior Court, CA | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
Ward | 14-Oct | Richmond County Superior Court, GA | Officer Fired | Pleading Phase | |||||||||||||||||||||||
Moore | 14-Oct | St. Louis County Circuit Court, MO | Wrongful Death | Pleading Phase | |||||||||||||||||||||||
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: | |||||||||||||||||||||||||||
Plaintiff | Month | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Served | |||||||||||||||||||||||||||
Glowczenski | 4-Oct | US District Court, ED NY | Wrongful Death | Notice of Appeal filed Sep. 2013; Opening Brief was filed Jan. 2014; Answering Brief filed Apr. 2014. | |||||||||||||||||||||||
Mitchell | 12-Apr | US District Court, ED MI | Wrongful Death | Notice of Appeal filed Aug. 2014 | |||||||||||||||||||||||
Summary of Cases Dismissed or Judgment Entered | ' | ||||||||||||||||||||||||||
Cases that were dismissed or judgment entered during the third quarter of 2014, and through the filing date of this Quarterly Report on Form 10-Q, are listed in the table below. Cases that were dismissed or judgment entered in prior fiscal quarters are not included in this table. | |||||||||||||||||||||||||||
Plaintiff | Month | Jurisdiction | Claim Type | Status | |||||||||||||||||||||||
Served | |||||||||||||||||||||||||||
Faltesek | 14-Apr | Harris County District Court, TX | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Mitchell | 12-Apr | US District Court, ED MI | Wrongful Death | Motion for | |||||||||||||||||||||||
Summary Judgment | |||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||
McCue | 14-Mar | US District Court, District of Maine | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Slade | 13-Dec | US District Court, ED TX | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Goodard | 14-Jul | Pinellas County Circuit Court, FL | Wrongful Death | Voluntary Dismissal | |||||||||||||||||||||||
Parker | 14-Jul | US District Court, SD TX | 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 Appeal | ||||||||||||||||||||
Start Date | End Date | Coverage | Amount | Costs | Insurance | ||||||||||||||||||||||
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 | — | Grable, Koon | ||||||||||||||||||||
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 | ||||||||||||||||||||
Jan – Jun 2012 | 12/15/11 | 6/25/12 | 7 | 1 | N | 7 | Ramsey, Firman, Ricks, Mitchell | ||||||||||||||||||||
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 | ||||||||||||||||||||
2014 | 12/15/13 | 12/15/14 | 12 | 4 | N | 12 | Rascom, Schrock, Moore, Ward |
Segment_Data_Tables
Segment Data (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Summary of Operational Information Relative to the Company's Reportable Segments | ' | ||||||||||||||||||||||||
Information relative to the Company’s reportable segments is as follows (in thousands): | |||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||
TASER | EVIDENCE.com | TASER | EVIDENCE.com | ||||||||||||||||||||||
Weapons | & Video | Total | Weapons | & Video | Total | ||||||||||||||||||||
Product sales | $ | 40,010 | $ | 3,181 | $ | 43,191 | $ | 31,627 | $ | 3,103 | $ | 34,730 | |||||||||||||
Service revenue | — | 1,158 | 1,158 | — | 467 | 467 | |||||||||||||||||||
Net sales | 40,010 | 4,339 | 44,349 | 31,627 | 3,570 | 35,197 | |||||||||||||||||||
Cost of products sold | 12,443 | 2,695 | 15,138 | 10,908 | 1,896 | 12,804 | |||||||||||||||||||
Cost of services delivered | — | 498 | 498 | — | 297 | 297 | |||||||||||||||||||
Gross margin | 27,567 | 1,146 | 28,713 | 20,719 | 1,377 | 22,096 | |||||||||||||||||||
Sales, general and administrative expenses | 10,028 | 2,413 | 12,441 | 11,131 | 1,645 | 12,776 | |||||||||||||||||||
Research and development expenses | 1,050 | 2,709 | 3,759 | 1,160 | 1,279 | 2,439 | |||||||||||||||||||
Income (loss) from operations | $ | 16,489 | $ | (3,976 | ) | $ | 12,513 | $ | 8,428 | $ | (1,547 | ) | $ | 6,881 | |||||||||||
Purchases of property and equipment | $ | 803 | $ | 41 | $ | 844 | $ | 230 | $ | 105 | $ | 335 | |||||||||||||
Purchases of intangible assets | 14 | 2 | 16 | 67 | 2 | 69 | |||||||||||||||||||
Depreciation and amortization | 1,010 | 91 | 1,101 | 1,025 | 63 | 1,088 | |||||||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
TASER | EVIDENCE.com | TASER | EVIDENCE.com | ||||||||||||||||||||||
Weapons | & Video | Total | Weapons | & Video | Total | ||||||||||||||||||||
Product sales | $ | 105,160 | $ | 9,812 | $ | 114,972 | $ | 89,902 | $ | 6,853 | $ | 96,755 | |||||||||||||
Service revenue | — | 2,737 | 2,737 | — | 1,051 | 1,051 | |||||||||||||||||||
Net sales | 105,160 | 12,549 | 117,709 | 89,902 | 7,904 | 97,806 | |||||||||||||||||||
Cost of products sold | 34,024 | 8,111 | 42,135 | 31,535 | 4,440 | 35,975 | |||||||||||||||||||
Cost of services delivered | — | 1,439 | 1,439 | — | 1,542 | 1,542 | |||||||||||||||||||
Gross margin | 71,136 | 2,999 | 74,135 | 58,367 | 1,922 | 60,289 | |||||||||||||||||||
Sales, general and administrative expenses | 32,218 | 7,516 | 39,734 | 30,622 | 4,276 | 34,898 | |||||||||||||||||||
Research and development expenses | 2,660 | 8,160 | 10,820 | 3,126 | 3,318 | 6,444 | |||||||||||||||||||
Income (loss) from operations | $ | 36,258 | $ | (12,677 | ) | $ | 23,581 | $ | 24,619 | $ | (5,672 | ) | $ | 18,947 | |||||||||||
Purchases of property and equipment | $ | 1,836 | $ | 230 | $ | 2,066 | $ | 828 | $ | 346 | $ | 1,174 | |||||||||||||
Purchases of intangible assets | 123 | 2 | 125 | 260 | 11 | 271 | |||||||||||||||||||
Depreciation and amortization | 3,078 | 290 | 3,368 | 2,998 | 1,038 | 4,036 |
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Segment | Total Net Sales [Member] | Total Net Sales [Member] | Total Net Sales [Member] | Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Distributor [Member] | Distributor [Member] | Individual Country Outside of the United States [Member] | Individual Country Outside of the United States [Member] | Individual Country Outside of the United States [Member] | Individual Country Outside of the United States [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Extended Product Warranty [Member] | Extended Product Warranty [Member] | |||||
Total Net Sales [Member] | Total Net Sales [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Total Net Sales [Member] | Total Net Sales [Member] | Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | Individual Country Outside of the United States [Member] | Individual Country Outside of the United States [Member] | Individual Country Outside of the United States [Member] | Individual Country Outside of the United States [Member] | Maximum [Member] | Minimum [Member] | ||||||||||||
Total Net Sales [Member] | Total Net Sales [Member] | Total Net Sales [Member] | Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ||||||||||||||||||||
Customer | Customer | Customer | Customer | Total Net Sales [Member] | Total Net Sales [Member] | Total Net Sales [Member] | Total Net Sales [Member] | ||||||||||||||||||||
Summary Of Significant Accounting Policy [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments of company | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregated operating segments | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales to customers, countries outside of the United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of risk concentration | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | 100.00% | 11.00% | 10.00% | 27.20% | 17.40% | 12.20% | 12.10% | ' | ' | ' | ' | ' | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' | ' |
Period of extended warranty after expiration of standard warranty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '1 year |
Service term for services purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '1 year | ' | ' |
Contractual Period of entities assurance program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | '3 years | ' | ' |
Note receivable in term | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company receive payment | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts and notes receivable related to purchases | $0.80 | ' | $0.80 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warranty period | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate owned life insurance policies fair value | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies - Net Sales by Geographic Area (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales by Geographic Area | $44,349 | $35,197 | $117,709 | $97,806 |
Total Net Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales by Geographic Area | 44,349 | 35,197 | 117,709 | 97,806 |
Percentage of Net sales by Geographic Area | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | Total Net Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales by Geographic Area | 37,605 | 31,483 | 95,336 | 86,036 |
Percentage of Net sales by Geographic Area | 84.80% | 89.40% | 81.00% | 88.00% |
Other Countries [Member] | Total Net Sales [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales by Geographic Area | $6,744 | $3,714 | $22,373 | $11,770 |
Percentage of Net sales by Geographic Area | 15.20% | 10.60% | 19.00% | 12.00% |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding and Income Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator for basic and diluted earnings per share: | ' | ' | ' | ' |
Net income | $7,558 | $5,114 | $14,832 | $12,869 |
Denominator: | ' | ' | ' | ' |
Weighted average shares outstanding-basic | 52,475 | 51,342 | 53,013 | 51,727 |
Dilutive effect of stock-based awards | 1,346 | 1,979 | 1,537 | 1,917 |
Diluted weighted average shares outstanding | 53,821 | 53,321 | 54,550 | 53,644 |
Anti-dilutive stock-based awards excluded | 336 | 565 | 328 | 898 |
Net income per common share: | ' | ' | ' | ' |
Basic | $0.14 | $0.10 | $0.28 | $0.25 |
Diluted | $0.14 | $0.10 | $0.27 | $0.24 |
Organization_and_Summary_of_Si6
Organization and Summary of Significant Accounting Policies - Summary of Changes in Estimated Product Warranty Liabilities (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Balance, beginning of period | $955 | $484 |
Utilization of accrual | -646 | -420 |
Warranty expense | 517 | 644 |
Balance, end of period | $826 | $708 |
Recovered_Sheet1
Cash, cash equivalents, and investments - Summary of Cash, Cash Equivalents and Held-to-Maturity Investments by Type (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Amortized Cost | $74,009 | $63,395 | ' | ' |
Gross Unrealized Gains | 24 | 17 | ' | ' |
Gross Unrealized Losses | -20 | -14 | ' | ' |
Fair Value | 74,013 | 63,398 | ' | ' |
Cash and cash equivalents | 38,615 | 42,271 | 35,006 | 36,127 |
Short-term investments | 28,983 | 9,101 | ' | ' |
Long-term investments | 6,411 | 12,023 | ' | ' |
Cash [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Amortized Cost | 36,392 | 37,196 | ' | ' |
Fair Value | 36,392 | 37,196 | ' | ' |
Cash and cash equivalents | 36,392 | 37,196 | ' | ' |
Level 1 [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Amortized Cost | 17,678 | 12,773 | ' | ' |
Gross Unrealized Gains | 3 | 3 | ' | ' |
Gross Unrealized Losses | -20 | -14 | ' | ' |
Fair Value | 17,661 | 12,762 | ' | ' |
Cash and cash equivalents | 2,223 | 5,030 | ' | ' |
Short-term investments | 12,811 | 1,102 | ' | ' |
Long-term investments | 2,644 | 6,641 | ' | ' |
Level 1 [Member] | Money Market Funds [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Amortized Cost | 2,223 | 5,030 | ' | ' |
Fair Value | 2,223 | 5,030 | ' | ' |
Cash and cash equivalents | 2,223 | 5,030 | ' | ' |
Level 1 [Member] | Corporate Bonds [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Amortized Cost | 15,455 | 7,743 | ' | ' |
Gross Unrealized Gains | 3 | 3 | ' | ' |
Gross Unrealized Losses | -20 | -14 | ' | ' |
Fair Value | 15,438 | 7,732 | ' | ' |
Short-term investments | 12,811 | 1,102 | ' | ' |
Long-term investments | 2,644 | 6,641 | ' | ' |
Level 2 [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Amortized Cost | 19,939 | 13,426 | ' | ' |
Gross Unrealized Gains | 21 | 14 | ' | ' |
Fair Value | 19,960 | 13,440 | ' | ' |
Cash and cash equivalents | ' | 45 | ' | ' |
Short-term investments | 16,172 | 7,999 | ' | ' |
Long-term investments | 3,767 | 5,382 | ' | ' |
Level 2 [Member] | State and Municipal Obligations [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Amortized Cost | 17,466 | 10,807 | ' | ' |
Gross Unrealized Gains | 21 | 14 | ' | ' |
Fair Value | 17,487 | 10,821 | ' | ' |
Cash and cash equivalents | ' | 45 | ' | ' |
Short-term investments | 14,689 | 5,626 | ' | ' |
Long-term investments | 2,777 | 5,136 | ' | ' |
Level 2 [Member] | Certificates of Deposit [Member] | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' |
Amortized Cost | 2,473 | 2,619 | ' | ' |
Fair Value | 2,473 | 2,619 | ' | ' |
Short-term investments | 1,483 | 2,373 | ' | ' |
Long-term investments | $990 | $246 | ' | ' |
Recovered_Sheet2
Cash, cash equivalents, and investments - Summary of Amortized Cost and Fair Value of Short-term and Long-term Investments (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | $28,983 | $9,101 |
Due after one year, through two years | 6,411 | 12,023 |
Amortized Cost [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | 28,983 | ' |
Due after one year, through two years | 6,163 | ' |
Due after two years | 248 | ' |
Total short-term and long-term investments | 35,394 | ' |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in less than one year | 28,989 | ' |
Due after one year, through two years | 6,167 | ' |
Due after two years | 242 | ' |
Total short-term and long-term investments | $35,398 | ' |
Inventory_Inventories_Detail
Inventory - Inventories (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $10,697 | $7,376 |
Work-in-process | 134 | 44 |
Finished goods | 6,043 | 4,688 |
Reserve for excess and obsolete inventory | -746 | -999 |
Total inventory | $16,128 | $11,109 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' |
Goodwill | $2,206,000 | ' | $2,206,000 | ' | $2,235,000 |
Amortization expense | $71,000 | $39,000 | $153,000 | $115,000 | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Intangible Assets Other than Goodwill (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Gross Carrying Amount | $3,933 | $4,007 |
Amortized intangible assets, Gross Carrying Amount | 2,418 | 2,091 |
Accumulated Amortization | -826 | -690 |
Intangible assets, Net Carrying Amount | 3,107 | 3,317 |
Amortized intangible assets, Net Carrying Amount | 1,592 | 1,401 |
Not amortized intangible assets, Carrying Amount | 1,515 | 1,916 |
Domain Names [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Gross Carrying Amount | 125 | 125 |
Accumulated Amortization | -111 | -102 |
Amortized intangible assets, Net Carrying Amount | 14 | 23 |
Amortized intangible assets, Useful Life | '5 years | ' |
Issued Patents [Member] | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Amortized intangible assets, Gross Carrying Amount | 1,735 | 1,529 |
Accumulated Amortization | -524 | -441 |
Amortized intangible assets, Net Carrying Amount | 1,211 | 1,088 |
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 | 558 | 437 |
Accumulated Amortization | -191 | -147 |
Amortized intangible assets, Net Carrying Amount | 367 | 290 |
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 | $615 | $1,016 |
Recovered_Sheet3
Goodwill and Intangible assets - Estimated Amortization Expense of Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2014 (remaining three months) | $46 | ' |
2015 | 178 | ' |
2016 | 171 | ' |
2017 | 167 | ' |
2018 | 157 | ' |
2019 | 147 | ' |
Thereafter | 726 | ' |
Amortized intangible assets, Net Carrying Amount | $1,592 | $1,401 |
Deferred_Revenue_Summary_of_De
Deferred Revenue - Summary of Deferred Revenue (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | $29,999 | $20,219 |
Total current portion of deferred revenue | 10,033 | 6,878 |
Total long-term portion of deferred revenue | 19,966 | 13,341 |
Warranty [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 20,275 | 15,889 |
Total current portion of deferred revenue | 6,300 | ' |
EVIDENCE.com [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 6,864 | 4,026 |
Total current portion of deferred revenue | 3,300 | ' |
TASER Assurance Program [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 2,771 | 138 |
Total current portion of deferred revenue | 300 | ' |
Other [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | $89 | $166 |
Deferred_Revenue_Additional_In
Deferred Revenue - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total current portion of deferred revenue | $10,033 | $6,878 |
EVIDENCE.com [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total current portion of deferred revenue | 3,300 | ' |
Warranty [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total current portion of deferred revenue | 6,300 | ' |
TASER Assurance Program [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total current portion of deferred revenue | $300 | ' |
Accrued_liabilities_Accrued_Li
Accrued liabilities - Accrued Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Payables and Accruals [Abstract] | ' | ' | ' | ' |
Accrued salaries and benefits | $3,070 | $2,328 | ' | ' |
Accrued judgments and settlements | 330 | 3,350 | ' | ' |
Accrued professional fees | 368 | 286 | ' | ' |
Accrued warranty expense | 826 | 955 | 708 | 484 |
Accrued income and other taxes | 349 | 437 | ' | ' |
Other accrued expenses | 1,910 | 1,484 | ' | ' |
Accrued liabilities | $6,853 | $8,840 | ' | ' |
Accrued_liabilities_Additional
Accrued liabilities - Additional Information (Detail) (AA And Saba Consultants [Member], USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
AA And Saba Consultants [Member] | ' | ' |
Accrued Liabilities And Other Liabilities [Line Items] | ' | ' |
Settlement amount paid | $4.50 | ' |
Settlement amount accrued | ' | 3.3 |
Reduction in accrued judgments and settlements | $0.30 | ' |
Income_taxes_Additional_Inform
Income taxes - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Income Tax Disclosure [Line Items] | ' |
Total current and long term deferred tax assets | $16.80 |
Research and development tax credit studies | 10.4 |
Liability for unrecognized tax benefits | 3.3 |
Overall effective tax rate, after discrete period adjustments | 36.90% |
Effective tax rate, before discrete period adjustments | 37.60% |
Federal [Member] | ' |
Income Tax Disclosure [Line Items] | ' |
Liability for unrecognized tax benefits | 3.2 |
State [Member] | ' |
Income Tax Disclosure [Line Items] | ' |
Liability for unrecognized tax benefits | 0.1 |
Research and Development Credits [Member] | ' |
Income Tax Disclosure [Line Items] | ' |
Unrecognized tax benefit associated with research and development credits that has been netted against the research and development credit deferred tax asset | $1.90 |
Stockholders_equity_Additional
Stockholders' equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 5 Months Ended | 9 Months Ended | 5 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
31-May-14 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share Repurchase Program Purchase Price [Member] | Share Repurchase Program Purchase Price [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Performance Based Restricted Stock Unit [Member] | Restricted Stock Units (RSUs) [Member] | Performance Based Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock incentive plan | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option available for future grants | ' | ' | 1,900,000 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value price per share | ' | ' | ' | ' | ' | ' | ' | $15.44 | ' | ' | ' | ' | $15.44 | ' | $15.44 | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation cost | ' | ' | ' | ' | ' | ' | ' | $11,400,000 | ' | ' | ' | ' | $32,000 | ' | $32,000 | ' | ' | ' | ' | ' |
Weighted average period | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate units of performance restricted stock granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate units outstanding | ' | ' | ' | ' | ' | ' | ' | 1,268,000 | 1,279,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance criteria met for approximate units | ' | ' | ' | ' | ' | ' | ' | 369,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum additional shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares withheld, for net share settlement of share based award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax payments, for net share settlement of share based award | ' | ' | ' | 1,262,000 | 221,000 | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value, options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | 5,300,000 | 14,400,000 | 9,100,000 | ' | ' | ' | ' |
Weighted average vesting period | ' | ' | ' | '9 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance-based stock options Cumulative Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Performance options, vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options awarded | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental stock option expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | 22,000 | 18,000 | 100,000 |
Stock repurchase authorized amount | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased common shares under stock repurchase program | ' | ' | 1,700,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased common shares under stock repurchase program, total cost | ' | ' | 22,400,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased common shares under stock repurchase program, average cost per share | ' | ' | $12.99 | $11.94 | ' | $12.96 | $11.91 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining stock repurchase authorized amount | ' | ' | ' | ' | ' | ' | $7,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_equity_Summary_of
Stockholders' equity - Summary of Restricted Stock Unit Activity (Detail) (Restricted Stock [Member], USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Units outstanding, beginning of period | 1,279 |
Number of Units, Granted | 502 |
Number of Units, Released | -369 |
Number of Units, Forfeited | -144 |
Number of Units outstanding, end of period | 1,268 |
Weighted Average Grant Date Fair Value, Units outstanding, beginning of period | $9.67 |
Weighted Average Grant Date Fair Value, Granted | $16.73 |
Weighted Average Grant Date Fair Value, Released | $7.51 |
Weighted Average Grant Date Fair Value, Forfeited | $12.83 |
Weighted Average Grant Date Fair Value, Units outstanding, end of period | $12.75 |
Aggregate intrinsic value, Units outstanding, beginning of period | ' |
Aggregate intrinsic value, Granted | ' |
Aggregate intrinsic value, Released | ' |
Aggregate intrinsic value, Forfeited | ' |
Aggregate intrinsic value, Units outstanding, end of period | $19,575 |
Stockholders_equity_Summary_of1
Stockholders' equity - Summary of the Company's Stock Options Activity (Detail) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
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 period | 3,366 | ' |
Number of options, Granted | ' | ' |
Number of options, Exercised | -1,218 | ' |
Number of options, Expired / forfeited | -54 | ' |
Number of options, Options outstanding, end of period | 2,094 | ' |
Number of options, Options exercisable, end of period | 2,055 | ' |
Number of options, Options expected to vest, end of period | 27 | ' |
Weighted average exercise price, Options outstanding, beginning of period | 6.15 | ' |
Weighted average exercise price, Granted | ' | ' |
Weighted average exercise price, Exercised | 7.06 | ' |
Weighted average exercise price, Expired / forfeited | 10.29 | ' |
Weighted average exercise price, Options outstanding, end of period | 5.51 | ' |
Weighted average exercise price, Options exercisable, end of period | 5.53 | ' |
Weighted average exercise price, Options expected to vest, end of period | 4.73 | ' |
Weighted Average Remaining Contractual Life (years), Options outstanding, end of period | '4 years 8 months 12 days | ' |
Weighted Average Remaining Contractual Life (years), Options exercisable, end of period | '4 years 8 months 12 days | ' |
Weighted Average Remaining Contractual Life (years), Options expected to vest, end of period | '4 years 10 months 21 days | ' |
Aggregate intrinsic value, Options outstanding, beginning of period | ' | ' |
Aggregate intrinsic value, Granted | ' | ' |
Aggregate intrinsic value, Exercised | ' | ' |
Aggregate intrinsic value, Expired / forfeited | ' | ' |
Aggregate intrinsic value, Options outstanding, end of period | 20,925 | ' |
Aggregate intrinsic value, Options exercisable, end of period | 20,508 | ' |
Aggregate intrinsic value, Options expected to vest, end of period | 287 | ' |
Stockholders_equity_Reported_S
Stockholders' equity - Reported Share-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | $1,437 | $963 | $4,121 | $2,906 |
Cost of Products Sold [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 61 | 50 | 149 | 134 |
Sales, General and Administrative Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | 940 | 736 | 2,598 | 2,293 |
Research and Development Expenses [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total share-based compensation | $436 | $177 | $1,374 | $479 |
Line_of_credit_Additional_Info
Line of credit - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Total availability under line of credit agreement | $10,000,000 | ' |
Letters of credit outstanding amount | 47,000 | ' |
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 | 11 | ' |
Minimum required fixed coverage charge ratio | 1.25 | ' |
Period used for calculating ratios | '12 months | ' |
Company's tangible net worth ratio | 0.4 | ' |
Fixed coverage charge ratio | 2.86 | ' |
Recovered_Sheet4
Commitments and contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2011 | Jun. 30, 2014 | 6-May-14 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 |
Cases | Cases | Lawsuits | AA And Saba Consultants [Member] | AA And Saba Consultants [Member] | AA And Saba Consultants [Member] | AA And Saba Consultants [Member] | |
Lawsuits | |||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of lawsuits against Company | ' | ' | 16 | ' | ' | ' | ' |
Number of active product liability cases | 16 | 55 | ' | ' | ' | ' | ' |
Amount of settlement offer | ' | ' | ' | ' | ' | $0.80 | ' |
Verdict against the company | ' | ' | ' | ' | ' | ' | 3.3 |
Loss contingency loss in period | ' | ' | ' | ' | 2.6 | ' | ' |
Amount of attorneys' fees, costs and expenses awarded to plaintiff | ' | ' | ' | $1.20 | ' | ' | ' |
Commitments_and_contingencies_1
Commitments and contingencies - Loss Contingencies (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
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 | 'Pleading Phase |
Wilson [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Wilson |
Month Served | 'May-11 |
Jurisdiction | 'US District Court, ED MO |
Claim Type | 'Wrongful Death |
Status | 'Trial scheduled for Nov. 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 |
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 |
Rascom [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Rascom |
Month Served | 'Apr-14 |
Jurisdiction | 'US District Court, AZ |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Schrock [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Schrock |
Month Served | 'Sep-14 |
Jurisdiction | 'San Bernardino County Superior Court, CA |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Ward [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Ward |
Month Served | 'Oct-14 |
Jurisdiction | 'Richmond County Superior Court, GA |
Claim Type | 'Officer Fired |
Status | 'Pleading Phase |
Moore [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Moore |
Month Served | 'Oct-14 |
Jurisdiction | 'St. Louis County Circuit Court, MO |
Claim Type | 'Wrongful Death |
Status | 'Pleading Phase |
Commitments_and_contingencies_2
Commitments and contingencies - Summary of Other Litigation Matters (Detail) (Pending Litigation [Member]) | 9 Months Ended |
Sep. 30, 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 Sep. 2013; Opening Brief was filed Jan. 2014; Answering Brief filed Apr. 2014. |
Mitchell [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Mitchell |
Month Served | 'Apr-12 |
Jurisdiction | 'US District Court, ED MI |
Claim Type | 'Wrongful Death |
Status | 'Notice of Appeal filed Aug. 2014 |
Commitments_and_contingencies_3
Commitments and contingencies - Summary of Cases Dismissed or Judgment Entered (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Faltesek [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Faltesek |
Month Served | 'Apr-14 |
Jurisdiction | 'Harris County District Court, TX |
Claim Type | 'Wrongful Death |
Status | 'Voluntary Dismissal |
Mitchell [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Mitchell |
Month Served | 'Apr-12 |
Jurisdiction | 'US District Court, ED MI |
Claim Type | 'Wrongful Death |
Status | 'Motion for Summary Judgment Granted |
McCue [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'McCue |
Month Served | 'Mar-14 |
Jurisdiction | 'US District Court, District of Maine |
Claim Type | 'Wrongful Death |
Status | 'Voluntary Dismissal |
Slade [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Slade |
Month Served | 'Dec-13 |
Jurisdiction | 'US District Court, ED TX |
Claim Type | 'Wrongful Death |
Status | 'Voluntary Dismissal |
Goodard [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Goodard |
Month Served | 'Jul-14 |
Jurisdiction | 'Pinellas County Circuit Court, FL |
Claim Type | 'Wrongful Death |
Status | 'Voluntary Dismissal |
Parker [Member] | ' |
Loss Contingencies [Line Items] | ' |
Plaintiff | 'Parker |
Month Served | 'Jul-14 |
Jurisdiction | 'US District Court, SD TX |
Claim Type | 'Suspect Injury During Arrest |
Status | 'Voluntary Dismissal |
Commitments_and_contingencies_4
Commitments and contingencies - Information Regarding the Company's Insurance Coverage (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
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 | ' |
Active Cases and Cases on Appeal | 'Grable, Koon |
2009 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Year | '2009 |
Policy Start Date | 1-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 |
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, Firman, Ricks, Mitchell |
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 |
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 |
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 | 'Rascom, Schrock, Moore, Ward |
Minimum [Member] | Jan - Jun 2012 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Month Year | '2012-01 |
Minimum [Member] | Jul - Dec 2012 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Month Year | '2012-07 |
Maximum [Member] | Jan - Jun 2012 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Month Year | '2012-06 |
Maximum [Member] | Jul - Dec 2012 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Policy Month Year | '2012-12 |
Related_party_transactions_Add
Related party transactions - Additional Information (Detail) (Consulting Services [Member], USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Consulting Services [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Transaction expenses incurred by parent company | $50,000 | $59,000 | $121,000 | $125,000 | ' |
Outstanding payables due to related party | $26,000 | ' | $26,000 | ' | $12,000 |
Employee_benefit_plans_Additio
Employee benefit plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Employee Benefit Plans [Line Items] | ' | ' | ' | ' |
Employee deferrals deemed vested percentage upon contribution | ' | ' | 100.00% | ' |
Company's contributions to the plan | $200,000 | $200,000 | $600,000 | $500,000 |
Company's matching contributions to the plan | $6,000 | $6,000 | $20,000 | $6,000 |
Maximum [Member] | ' | ' | ' | ' |
Employee Benefit Plans [Line Items] | ' | ' | ' | ' |
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% | ' |
Segment_data_Additional_Inform
Segment data - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product sales | $43,191 | $34,730 | $114,972 | $96,755 |
Service revenue | 1,158 | 467 | 2,737 | 1,051 |
Net sales | 44,349 | 35,197 | 117,709 | 97,806 |
Cost of products sold | 15,138 | 12,804 | 42,135 | 35,975 |
Cost of services delivered | 498 | 297 | 1,439 | 1,542 |
Gross margin | 28,713 | 22,096 | 74,135 | 60,289 |
Sales, general and administrative expenses | 12,441 | 12,776 | 39,734 | 34,898 |
Research and development expenses | 3,759 | 2,439 | 10,820 | 6,444 |
Income (loss) from operations | 12,513 | 6,881 | 23,581 | 18,947 |
Purchases of property and equipment | 844 | 335 | 2,066 | 1,174 |
Purchases of intangible assets | 16 | 69 | 125 | 271 |
Depreciation and amortization | 1,101 | 1,088 | 3,368 | 4,036 |
TASER Weapons [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product sales | 40,010 | 31,627 | 105,160 | 89,902 |
Net sales | 40,010 | 31,627 | 105,160 | 89,902 |
Cost of products sold | 12,443 | 10,908 | 34,024 | 31,535 |
Gross margin | 27,567 | 20,719 | 71,136 | 58,367 |
Sales, general and administrative expenses | 10,028 | 11,131 | 32,218 | 30,622 |
Research and development expenses | 1,050 | 1,160 | 2,660 | 3,126 |
Income (loss) from operations | 16,489 | 8,428 | 36,258 | 24,619 |
Purchases of property and equipment | 803 | 230 | 1,836 | 828 |
Purchases of intangible assets | 14 | 67 | 123 | 260 |
Depreciation and amortization | 1,010 | 1,025 | 3,078 | 2,998 |
Evidence.com & Video [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product sales | 3,181 | 3,103 | 9,812 | 6,853 |
Service revenue | 1,158 | 467 | 2,737 | 1,051 |
Net sales | 4,339 | 3,570 | 12,549 | 7,904 |
Cost of products sold | 2,695 | 1,896 | 8,111 | 4,440 |
Cost of services delivered | 498 | 297 | 1,439 | 1,542 |
Gross margin | 1,146 | 1,377 | 2,999 | 1,922 |
Sales, general and administrative expenses | 2,413 | 1,645 | 7,516 | 4,276 |
Research and development expenses | 2,709 | 1,279 | 8,160 | 3,318 |
Income (loss) from operations | -3,976 | -1,547 | -12,677 | -5,672 |
Purchases of property and equipment | 41 | 105 | 230 | 346 |
Purchases of intangible assets | 2 | 2 | 2 | 11 |
Depreciation and amortization | $91 | $63 | $290 | $1,038 |