Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-16391 | ||
Entity Registrant Name | Axon Enterprise, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 86-0741227 | ||
Entity Address, Address Line One | 17800 North 85th Street | ||
Entity Address, City or Town | Scottsdale | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85255 | ||
City Area Code | 480 | ||
Local Phone Number | 991-0797 | ||
Title of 12(b) Security | Common Stock, $0.00001 par value per share | ||
Trading Symbol | AXON | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11.4 | ||
Entity Common Stock, Shares Outstanding | 70,931,874 | ||
Documents Incorporated by Reference | Parts of the registrant’s definitive proxy statement for its 2022 annual meeting of stockholders to be prepared and filed with the Securities and Exchange Commission not later than 120 days after December 31, 2021 are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001069183 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Firm ID | 248 | ||
Auditor Location | Phoenix, Arizona | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 356,332 | $ 155,440 |
Marketable securities | 72,180 | |
Short-term investments | 14,510 | 406,525 |
Accounts and notes receivable, net of allowance of $2,203 and $2,105 as of December 31, 2021 and December 31, 2020 respectively | 320,819 | 229,201 |
Contract assets, net | 180,421 | 63,945 |
Inventory, net | 108,688 | 89,958 |
Prepaid expenses and other current assets | 56,540 | 36,883 |
Total current assets | 1,109,490 | 981,952 |
Property and equipment, net | 138,457 | 105,494 |
Deferred tax assets, net | 127,193 | 45,770 |
Intangible assets, net | 15,470 | 9,448 |
Goodwill | 43,592 | 25,205 |
Long-term investments | 31,232 | 90,681 |
Long-term notes receivable, net | 11,256 | 22,457 |
Long-term contract assets, net | 29,753 | 20,099 |
Strategic investments | 83,520 | 11,711 |
Other long-term assets | 98,247 | 68,206 |
Total assets | 1,688,210 | 1,381,023 |
Current liabilities: | ||
Accounts payable | 32,220 | 24,142 |
Accrued liabilities | 103,707 | 59,843 |
Current portion of deferred revenue | 265,591 | 163,959 |
Customer deposits | 10,463 | 2,956 |
Other current liabilities | 6,540 | 5,431 |
Total current liabilities | 418,521 | 256,331 |
Deferred revenue, net of current portion | 185,721 | 111,222 |
Liability for unrecognized tax benefits | 3,797 | 4,503 |
Long-term deferred compensation | 5,679 | 4,732 |
Deferred tax liabilities, net | 811 | 649 |
Other long-term liabilities | 25,832 | 27,331 |
Total liabilities | 640,361 | 404,768 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; no shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | ||
Common stock, $0.00001 par value; 200,000,000 shares authorized; 70,896,856 and 63,766,555 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 1 | 1 |
Additional paid-in capital | 1,095,229 | 962,159 |
Treasury stock at cost, 20,220,227 shares as of December 31, 2021 and December 31, 2020 | (155,947) | (155,947) |
Retained earnings | 109,883 | 169,901 |
Accumulated other comprehensive income (loss) | (1,317) | 141 |
Total stockholders' equity | 1,047,849 | 976,255 |
Total liabilities and stockholders' equity | $ 1,688,210 | $ 1,381,023 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance on accounts receivable | $ 2,203 | $ 2,105 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 70,896,856 | 63,766,555 |
Common stock, shares outstanding (in shares) | 70,896,856 | 63,766,555 |
Treasury stock, shares (in shares) | 20,220,227 | 20,220,227 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net sales | $ 863,381 | $ 681,003 | $ 530,860 |
Cost of sales | 322,471 | 264,672 | 223,574 |
Gross margin | 540,910 | 416,331 | 307,286 |
Sales, general and administrative | 515,007 | 307,286 | 212,959 |
Research and development | 194,026 | 123,195 | 100,721 |
Total operating expenses | 709,033 | 430,481 | 313,680 |
Loss from operations | (168,123) | (14,150) | (6,394) |
Interest and other income, net | 26,748 | 7,859 | 8,464 |
Income (loss) before provision (benefit) for income taxes | (141,375) | (6,291) | 2,070 |
Provision (benefit) for income taxes | (81,357) | (4,567) | 1,188 |
Net income (loss) | $ (60,018) | $ (1,724) | $ 882 |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ (0.91) | $ (0.03) | $ 0.01 |
Diluted (in dollars per share) | $ (0.91) | $ (0.03) | $ 0.01 |
Weighted average shares outstanding: | |||
Basic (in shares) | 66,191 | 61,782 | 59,190 |
Diluted (in shares) | 66,191 | 61,782 | 60,018 |
Net income (loss) | $ (60,018) | $ (1,724) | $ 882 |
Foreign currency translation adjustments | (1,251) | 1,237 | 417 |
Unrealized gains (losses) on available-for-sale investments | (207) | ||
Comprehensive income (loss) | (61,476) | (487) | 1,299 |
Product | |||
Net sales | 608,525 | 500,250 | 399,474 |
Cost of sales | 260,098 | 224,131 | 190,683 |
Service | |||
Net sales | 254,856 | 180,753 | 131,386 |
Cost of sales | $ 62,373 | $ 40,541 | $ 32,891 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Cumulative Effect Period Of Adoption Adjusted BalanceRetained Earnings | Cumulative Effect Period Of Adoption Adjusted Balance | Common stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (loss). | Total |
Beginning balance at Dec. 31, 2018 | $ 1 | $ 453,400 | $ (155,947) | $ 171,383 | $ (1,513) | $ 467,324 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 58,810,637 | 20,220,227 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under employee plans, net of shares withheld for payroll taxes (in shares) | 616,509 | |||||||
Issuance of common stock under employee plans, net of shares withheld for payroll taxes | (3,937) | (3,937) | ||||||
Stock-based compensation | 78,809 | 78,809 | ||||||
Issuance of common stock for business combination contingent consideration (in shares) | 70,613 | |||||||
Net income (loss) | 882 | 882 | ||||||
Other comprehensive income (loss) | 417 | 417 | ||||||
Ending balance at Dec. 31, 2019 | $ (640) | $ (640) | $ 1 | 528,272 | $ (155,947) | 172,265 | (1,096) | 543,495 |
Ending balance (in shares) at Dec. 31, 2019 | 59,497,759 | 20,220,227 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock | 306,779 | 306,779 | ||||||
Issuance of common stock (in shares) | 3,450,000 | |||||||
Issuance of common stock under employee plans, net of shares withheld for payroll taxes (in shares) | 748,183 | |||||||
Issuance of common stock under employee plans, net of shares withheld for payroll taxes | (7,514) | (7,514) | ||||||
Stock-based compensation | 133,572 | 133,572 | ||||||
Issuance of common stock for business combination contingent consideration (in shares) | 70,613 | |||||||
Issuance of common stock for business combination contingent consideration | 1,050 | 1,050 | ||||||
Net income (loss) | (1,724) | (1,724) | ||||||
Other comprehensive income (loss) | 1,237 | 1,237 | ||||||
Ending balance at Dec. 31, 2020 | $ 1 | 962,159 | $ (155,947) | 169,901 | 141 | 976,255 | ||
Ending balance (in shares) at Dec. 31, 2020 | 63,766,555 | 20,220,227 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock | 105,514 | 105,514 | ||||||
Issuance of common stock (in shares) | 577,956 | |||||||
Issuance of common stock under employee plans, net of shares withheld for payroll taxes (in shares) | 2,624,446 | |||||||
Issuance of common stock under employee plans, net of shares withheld for payroll taxes | (331,309) | (331,309) | ||||||
Stock options exercised (in shares) | 3,927,899 | |||||||
Stock options exercised | 51,614 | 51,614 | ||||||
Stock-based compensation | 303,331 | 303,331 | ||||||
Issuance of common stock for business combination contingent consideration | 3,920 | 3,920 | ||||||
Net income (loss) | (60,018) | (60,018) | ||||||
Other comprehensive income (loss) | (1,458) | (1,458) | ||||||
Ending balance at Dec. 31, 2021 | $ 1 | $ 1,095,229 | $ (155,947) | $ 109,883 | $ (1,317) | $ 1,047,849 | ||
Ending balance (in shares) at Dec. 31, 2021 | 70,896,856 | 20,220,227 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (60,018) | $ (1,724) | $ 882 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization | 18,694 | 12,475 | 11,361 |
Loss on disposal and abandonment of intangible assets | 146 | 320 | 67 |
Loss on disposal and impairment of property and equipment, net | 92 | 1,722 | 2,542 |
Net gain on strategic investments and marketable securities | (23,035) | ||
Stock-based compensation expense | 303,331 | 133,572 | 78,495 |
Deferred income taxes | (81,303) | (16,528) | (7,987) |
Unrecognized tax benefits | (706) | 671 | 983 |
Bond amortization | 5,217 | 3,345 | 361 |
Noncash lease expense | 5,573 | 4,104 | 3,567 |
Provision for expected credit losses | (214) | 1,302 | |
Change in assets and liabilities: | |||
Accounts and notes receivable and contract assets | (205,769) | (107,762) | (38,830) |
Inventory | (18,272) | (52,156) | (4,903) |
Prepaid expenses and other assets | (40,158) | (14,885) | (9,845) |
Accounts payable, accrued and other liabilities | 45,301 | 8,886 | 4,967 |
Deferred revenue | 175,615 | 65,139 | 24,013 |
Net cash provided by operating activities | 124,494 | 38,481 | 65,673 |
Cash flows from investing activities: | |||
Purchases of investments and marketable securities | (362,479) | (656,522) | (354,477) |
Proceeds from call, maturity, or sale of investments | 718,617 | 379,839 | 130,083 |
Proceeds from strategic investments | 14,546 | ||
Purchases of property and equipment | (49,886) | (72,629) | (15,939) |
Proceeds from disposal of property and equipment | 43 | 95 | |
Purchases of intangible assets | (392) | (241) | (404) |
Purchases of strategic investments | (45,500) | (7,068) | |
Business acquisition, net of cash acquired | (22,393) | ||
Net cash provided by (used in) investing activities | 252,556 | (356,526) | (240,737) |
Cash flows from financing activities: | |||
Net proceeds from equity offering | 105,514 | 306,779 | |
Proceeds from options exercised | 51,614 | 295 | 114 |
Income and payroll tax payments for net-settled stock awards | (331,309) | (7,809) | (4,051) |
Net cash provided by (used in) financing activities | (174,181) | 299,265 | (3,937) |
Effect of exchange rate changes on cash and cash equivalents | (1,982) | 1,976 | 329 |
Net increase (decrease) in cash and cash equivalents | 200,887 | (16,804) | (178,672) |
Cash and cash equivalents and restricted cash, beginning of period | 155,551 | 172,355 | 351,027 |
Cash and cash equivalents and restricted cash, end of period | $ 356,438 | $ 155,551 | $ 172,355 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1 - Organization and Summary of Significant Accounting Policies Axon Enterprise, Inc. (“Axon”, the “Company”, "we", or "us") is a market-leading provider of law enforcement technology solutions. Our core mission is to protect life. We fulfill that mission through developing hardware and software products that advance the long term objectives of a) obsoleting the bullet, b) reducing social conflict, and c) enabling a fair and effective justice system. The accompanying consolidated financial statements include the accounts of Axon Enterprise, Inc. and our wholly owned subsidiaries. All material intercompany accounts, transactions, and profits have been eliminated. Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions in these consolidated financial statements include: ● product warranty reserves, ● inventory valuation, ● revenue recognition, ● reserve for expected credit losses ● valuation of goodwill, intangible and long-lived assets, ● valuation of strategic investments, ● recognition, measurement and valuation of current and deferred income taxes, ● stock-based compensation, and ● recognition and measurement of contingencies and accrued litigation expense. Actual results could differ materially from those estimates. Cash, Cash Equivalents and Investments Cash, cash equivalents and investments include cash, money market funds, corporate bonds, municipal bonds, and agency bonds. We place our cash and cash equivalents with high quality financial institutions. Although we deposit our cash with multiple financial institutions, our deposits regularly exceed federally insured limits. Cash and cash equivalents include funds on hand and highly liquid investments purchased with initial maturity of three months or less. Short-term investments include securities with an expected maturity date within one year of the balance sheet date that do not meet the definition of a cash equivalent, and long-term investments are securities with an expected maturity date greater than one year. During the quarter ended December 31, 2021, upon the sale of a portion of our held-to-maturity security portfolio, we reclassified all remaining held-to-maturity securities to available-for-sale. We do not anticipate using the held-to-maturity classification in the future. The transfers to available-for-sale were made as a result of a change in management’s objectives with respect to its investment portfolio, which was implemented in the fourth quarter. We report available-for-sale investments at fair value as of each balance sheet date and record any unrealized gains or losses as a component of stockholders’ equity. The cost of securities sold is determined on a specific identification basis, and realized gains and losses are included in interest and other income, net within the consolidated statements of operations. When the fair value is below the amortized cost of a marketable security, an estimate of expected credit losses is made. The credit-related impairment amount is recognized in the consolidated statements of operations. Credit losses are recognized through the use of an allowance for expected credit losses account in the consolidated balance sheet and subsequent improvements in expected credit losses are recognized as a reversal of an amount in the allowance account. If we have the intent to sell the security or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, then the allowance for the credit loss is written-off and the excess of the amortized cost basis of the asset over its fair value is recorded in the consolidated statements of operations. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases. There were no credit losses recorded on our investment portfolio during the year ended December 31, 2021. Restricted Cash Restricted cash balances of $0.1 million and $0.1 million as of December 31, 2021 and 2020, respectively, primarily relate to funds held in an international bank account for a country in which we are required to maintain a minimum balance to operate. Approximately half of the balance was included in prepaid expenses and other current assets on our consolidated balance sheets, with the remainder included in other assets. Inventory Inventories are stated at the lower of cost, determined on the first-in, first-out (“FIFO”) basis, or net realizable value, net of an inventory valuation allowance. We use a standard cost methodology to determine the cost basis for our inventories. Costs include allocations for materials, labor, and overhead. All variances between actual costs and standard costs are apportioned to inventory and cost of product sales based upon inventory turnover. Additional provisions are made to reduce excess, obsolete or slow-moving inventories to their net realizable value. These provisions are based on management’s best estimate after considering historical demand, projected future demand, inventory purchase commitments, industry and market trends and conditions among other factors. We evaluate inventory costs for abnormal costs due to excess production capacity and treat such costs as period costs. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Additions and improvements are capitalized, while ordinary maintenance and repair expenditures are charged to expense as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Land is not depreciated. Software Development Costs We expense software development costs, including costs to develop software products or the software component of products and services to be marketed to external users, before technological feasibility of such products is reached. We have determined that technological feasibility is reached shortly before the release of those products and as a result, the development costs incurred after the establishment of technological feasibility and before the release of those products are not material. Software development costs also include costs to develop software programs to be used solely to meet our internal needs and applications. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the intended function. Additionally, we capitalize qualifying costs incurred for upgrades and enhancements to existing software that result in additional functionality. Costs related to preliminary project planning activities, post-implementation activities, maintenance and minor modifications are expensed as incurred. Internal-use software development costs are amortized on a straight line basis over the estimated useful life of the software. We evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Valuation of Goodwill, Intangible and Long-lived Assets Finite-lived intangible assets and other long-lived assets are amortized over their estimated useful lives. We do not amortize goodwill and intangible assets with indefinite useful lives; rather, such assets are required to be tested for impairment at least annually, or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We perform our annual impairment assessment in the fourth quarter of each year. Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and intangible assets may warrant revision or that the remaining balance of these assets, including intangible assets with indefinite lives, may not be recoverable. Circumstances that might indicate long-lived assets might not be recoverable could include, but are not limited to, a change in the product mix, a change in the way products and services are created, produced or delivered, or a significant change in the way our products are branded and marketed. When performing a review for recoverability, management estimates the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. During the year ended December 31, 2021, we recorded an immaterial amount of impairment charges. During the year ended December 31, 2020, we abandoned certain planning and site development activities related to our planned new headquarters, resulting in an impairment charge of $0.7 million. Additionally, we recognized impairment charges totaling $0.5 million related to improvements and remodeling of certain of our offices. Both charges were included in sales, general and administrative expense in the accompanying consolidated statements of operations. During the year ended December 31, 2019, we abandoned certain capitalized software related to implementation work on an enterprise resource planning system conversion, resulting in an impairment charge of $1.3 million, and certain planning and site development activities related to our planned new headquarters, resulting in an impairment charge of $0.7 million, both of which were included in sales, general and administrative expense in the accompanying consolidated statements of operations and comprehensive income. Customer Deposits We require deposits in advance of shipment for certain customer sales orders. Additionally, customers may elect to make deposits with us related to contracts for our products and services that were not executed as of the end of a reporting period. Customer deposits are included in other current liabilities in the accompanying consolidated balance sheets. Revenue Recognition, Deferred Revenue and Accounts and Notes Receivable We derive revenue from two primary sources: (1) the sale of physical products, including conducted energy devices ("CEDs"), Axon cameras, Axon Signal enabled devices, corresponding hardware extended warranties, and related accessories such as Axon docks, cartridges and batteries, among others, and (2) subscriptions to our Axon Evidence digital evidence management software-as-a-service ("SaaS") (including data storage fees and other ancillary services), which includes varying levels of support. To a lesser extent, we also recognize revenue from training, professional services and other software and SaaS services. We apply the five-step model outlined in Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts from Customers ("Topic 606"). For additional discussion of the adoption of Topic 606, see Note 2. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in Topic 606. For contracts with multiple performance obligations, we allocate the contract transaction price to each performance obligation using our estimate of the standalone selling price ("SSP") of each distinct good or service in the contract. Revenues are recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, each of which is generally distinct and accounted for as a separate performance obligation. Revenue is recognized net of allowances for returns. Performance obligations to deliver products, including CEDs, cameras and related accessories such as cartridges, batteries and docks, are generally satisfied at the point in time we ship the product, as this is when the customer obtains control of the asset under our standard terms and conditions. In certain contracts with non-standard terms and conditions, these performance obligations may not be satisfied until formal customer acceptance occurs. Performance obligations to fulfill service-type extended warranties and provide our SaaS offerings, including Axon Evidence and other cloud services, are generally satisfied over time as the customer receives and consumes the benefits of these services over the stated service period. Many of our products and services are sold on a standalone basis. We also bundle our hardware products and services together and sell them to our customers in single transactions, where the customer can make payments over a multi-year period. These sales may include payments for upfront hardware and services, as well as payments for hardware and services to be provided by us at a future date. Additionally, we offer customers the ability to purchase CED cartridges and certain services on an unlimited basis over the contractual term. Due to the unlimited nature of these arrangements whereby we are obligated to deliver unlimited products at the customer’s request, we account for these arrangements as stand-ready obligations, and recognize revenue ratably over the contract period. Cost of product sales is recognized when control of hardware products or accessories have transferred to the customer. We have elected to recognize shipping costs as an expense in cost of product sales when the control of hardware products or accessories have transferred to the customer. Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis. The timing of revenue recognition may differ from the timing of invoicing to customers. We generally have an unconditional right to consideration when we invoice our customers and record a receivable. We record a contract asset when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. Contract asset amounts that will be invoiced during the subsequent twelve month period from the balance sheet date are classified as current assets and the remaining portion is recorded within other assets on our consolidated balance sheets. Deferred revenue that will be recognized during the subsequent twelve month period from the balance sheet date is recorded as current deferred revenue and the remaining portion is recorded as long-term deferred revenue. Generally, customers are billed in annual installments. See Note 2 for further disclosures about our contract assets. Sales are typically made on credit, and we generally do not require collateral. We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable, notes receivable, and contract assets is developed using historical collection experience, published or estimated credit default rates for entities that represent our customer base, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. We review receivables for U.S. and international customers separately to better reflect different published credit default rates and economic and market conditions. Additionally, specific reserve amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. Accounts and notes receivable and contract assets are presented net of a reserve for expected credit losses, which totaled $3.3 million and $3.4 million as of December 31, 2021 and 2020, respectively. This reserve represents management’s best estimate and application of judgment considering a number of factors, including those listed above. In the event that actual uncollectible amounts differ from our estimates, additional expense could be necessary. Cost of Product and Service Sales Cost of product sales represents manufacturing costs, consisting of materials, labor and overhead related to finished goods and components. Shipping costs incurred related to product delivery are also included in cost of products sold. Cost of service sales includes third-party cloud services, and software maintenance and support costs, including personnel costs, associated with supporting Evidence.com and other software related services. Advertising Costs We expense advertising costs in the period in which they are incurred. We incurred advertising costs of $2.6 million, $1.3 million and $0.9 million in the years ended December 31, 2021, 2020 and 2019, respectively. Advertising costs are included in sales, general and administrative expenses in the accompanying statements of operations. Standard Warranties We warranty our CEDs, Axon cameras and certain related accessories from manufacturing defects on a limited basis for a period of one year after purchase and, thereafter, will replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold when revenue is recorded for the related product. Future warranty costs are estimated on a quarterly basis based on historical data related to warranty claims and this rate is applied to current product sales. Historically, reserve amounts have been increased if management becomes aware of a component failure or other issue that could result in larger than anticipated warranty claims from customers. The warranty reserve is reviewed quarterly to verify that it sufficiently reflects the remaining warranty obligations based on the anticipated expenditures over the balance of the warranty obligation period, and adjustments are made when actual warranty claim experience differs from estimates. The warranty reserve is included in accrued liabilities on the accompanying consolidated balance sheets. Changes in our estimated warranty reserve were as follows (in thousands): Year Ended December 31, 2021 2020 Balance, beginning of period $ 769 $ 1,476 Utilization of reserve (873) (700) Warranty expense (benefit) 2,926 (7) Balance, end of period $ 2,822 $ 769 Research and Development Expenses We expense as incurred research and development costs that do not meet the qualifications to be capitalized. We incurred research and development expense of $194.0 million, $123.2 million and $100.7 million in 2021, 2020 and 2019, respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced through the establishment of a valuation allowance if, based upon available evidence, it is determined that it is more likely than not that the deferred tax assets will not be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. We also assess whether uncertain tax positions, as filed, could result in the recognition of a liability for possible interest and penalties. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Refer to Note 12 for additional information regarding the change in unrecognized tax benefits. Concentration of Credit Risk and Major Customers / Suppliers Financial instruments that potentially subject us to concentrations of credit risk consist of accounts and notes receivable, contract assets, and cash. Historically, we have experienced an immaterial level of write-offs related to uncollectible accounts. We maintain the majority of our cash at three depository institutions. As of December 31, 2021, the aggregate balances in such accounts were $347.3 million. Our balances with these three institutions regularly exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits for domestic deposits and various deposit insurance programs covering our deposits in Australia, Canada, Finland, Germany, Hong Kong, India, Italy, the Netherlands, Spain, the United Kingdom, and Vietnam. To manage the related credit exposure, management continually monitors the creditworthiness of the financial institutions where we have deposits. No customer represented more than 10% of total net sales for the years ended December 31, 2021, 2020 or 2019. At December 31, 2021, and 2020, no customer represented more than 10% of the aggregate balance of accounts and notes receivable and contract assets. We currently purchase both off the shelf and custom components, including, but not limited to, finished circuit boards, injection-molded plastic components, small machined parts, custom cartridge components, electronic components, and off the shelf sub-assemblies from suppliers located in the U.S., Canada, China, Mexico, Republic of Korea, Sri Lanka, Taiwan, and Vietnam. We may source from other countries as well. Although we currently obtain many of these components from single source suppliers, we own the injection molded component tooling, most of the designs, and test fixtures used in their production for all custom components. As a result, we believe we could obtain alternative suppliers in most cases. Although we have experienced supply chain disruptions relating to materials and port constraints, we have remained focused on closely managing our supply chain. We continue to bolster our strategic relationships in our supply chain, identifying secondary/alternate sourcing, adjusting build plans accordingly, and building in logistic modes in support of our increasing demand while working to minimize disruption to customers. We acquire most of our components on a purchase order basis and do not currently have significant long-term purchase contracts with most component suppliers. Fair Value of Financial Instruments We use the fair value framework that prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants, to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: ● Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. ● Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. ● Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about inputs that market participants would use in pricing an asset or liability. We have cash equivalents and investments, which at December 31, 2021 and 2020, were comprised of money market funds, agency bonds, certificates of deposit, commercial paper, corporate bonds, municipal bonds, U.S. Treasury bills, U.S. Treasury repurchase agreements, and U.S. Treasury inflation-protected securities. See additional disclosure regarding the fair value of our cash equivalents and investments in Note 3. Included in the balance of other assets as of December 31, 2021 and 2020 was $5.3 million and $4.7 million, respectively, related to corporate-owned life insurance policies which are used to fund our deferred compensation plan. We determine the fair value of our insurance contracts by obtaining the cash surrender value of the contracts from the issuer, a Level 2 valuation technique. We have investments in marketable securities, for which changes in fair value are recorded in the consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in interest and other income, net. We have strategic investments in four unconsolidated affiliates. The estimated fair value of the investments was determined based on Level 3 inputs. As of December 31, 2021, management estimated that the fair value of the investments equaled the carrying value. Our financial instruments also include accounts and notes receivable, accounts payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet. Segment and Geographic Information Our operations are comprised of two reportable segments: the manufacture and sale of CEDs, batteries, accessories, extended warranties and other products and services (the “TASER” segment); and the development, manufacture and sale of software and sensors, which includes the sale of devices, wearables, applications, cloud and mobile products, and services (collectively, the "Software and Sensors" segment). Reportable segments are determined based on discrete financial information reviewed by our Chief Executive Officer who is our chief operating decision maker ("CODM"). We organize and review operations based on products and services, and currently there are no operating segments that are aggregated. We perform an analysis of our reportable segments at least annually. Additional information related to our business segments is summarized in Note 19. For a summary of net sales by geographic area, see Note 2. The majority of our sales to international customers are transacted in foreign currencies Stock-Based Compensation We recognize expense related to stock-based compensation transactions in which we receive services in exchange for equity instruments of the Company. Stock-based compensation expense for restricted stock units ("RSUs") is measured based on the closing fair market value of our common stock on the date of grant. We recognize stock-based compensation expense over the award’s requisite service period on a straight-line basis for time-based RSUs. For performance-based RSUs, stock-based compensation expense is recognized over the requisite service period, which is defined as the longest explicit, implicit or derived service period based on management’s estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date. For performance-based options with a vesting schedule based entirely on the attainment of both performance and market conditions, stock-based compensation expense is recognized over the longer of the expected achievement period of the performance and market conditions, beginning at the point in time that the relevant performance condition is considered probable of achievement. For both time-based and performance-based RSUs, we recognize forfeitures as they occur as a reduction to stock-based compensation expense and to additional paid-in-capital. eXponential Stock Performance Plan On February 12, 2019, our shareholders approved the 2019 Stock Incentive Plan (the “2019 Plan”), which was adopted by the Board of Directors to reserve a sufficient number of shares to facilitate our eXponential Stock Performance Plan (“XSPP”) and grants of eXponential Stock Units (“XSUs”) under the plan. The XSUs are grants of restricted stock units, each with a term of approximately nine years Stock-based compensation expense associated with XSU awards is recognized over the longest explicit, implicit or derived service period for each pair of market capitalization and operational goals, beginning at the point in time when the relevant operational goal is considered probable of being met. The market capitalization goal period and the valuation of each tranche are determined using a Monte Carlo simulation, which is also used as the basis for determining the expected achievement period of the market capitalization goal. The probability of meeting an operational goal and the expected achievement point in time for meeting a probable operational goal are based on a subjective assessment of our forward-looking financial projections, taking into consideration statistical analysis. Even though no tranches of the XSU awards vest unless a market capitalization and a matching operational goal are both achieved, stock-based compensation expense is recognized when an operational goal is considered probable of achievement regardless of whether a market capitalization goal is actually achieved. Given the complexity of the awards, we utilized Monte Carlo simulations to simulate a range of possible future market capitalizations for the Company over the term of the awards at each of the respective grant dates. The average of all iterations of the simulation was used as the basis for the valuation and market capitalization goal derived service period for each tranche. Additionally, we applied an illiquidity discount of between 10.5% and 17.6% to the valuation of XSUs because the awards specify a post-vest holding period of 2.5 years for the acquired shares that vest. Certain of the XSU awards specify a post-vest holding period of the longer of 2.5 years or until the next tranche vests. The illiquidity discounts were estimated using the Finnerty model and reduced by the impact of expected payroll and income taxes due upon vesting of the awards, as the related proportion of shares are expected to be sold to satisfy such obligations. We measured the grant date fair value of the XSU awards with the following assumptions: risk-free interest rate of between 0.85% and 1.24%, expected term of between 6.5 and 7.0 years, expected volatility of between 47.28% and 55.79%, and dividend yield of 0.00%. Stock Options On May 24, 2018 (the “CEO Grant Date”), our stockholders approved the Board of Directors’ grant of 6,365,856 stock option awards to Patrick W. Smith, our CEO (the “CEO Performance Award”). The CEO Performance Award consists of 12 vesting tranches with a vesting schedule based entirely on the attainment of both operational goals (performance conditions) and market capitalization goals (market conditions), assuming continued employment either as the CEO or as both Executive Chairman and Chief Product Officer and service through each vesting date. Stock-based compensation expense associated with the CEO Performance Award is recognized over the requisite service period, which is defined as the longe |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenues | |
Revenues | Note 2 - Revenues Nature of Products and Services The following table presents our revenues by primary product and service offering (in thousands): Year Ended December 31, 2021 Year Ended December 31, 2020 Software and Software and TASER Sensors Total TASER Sensors Total TASER 7 $ 135,906 $ — $ 135,906 $ 107,506 $ — $ 107,506 TASER X26P 40,629 — 40,629 41,724 — 41,724 TASER X2 58,081 — 58,081 60,107 — 60,107 TASER Consumer devices 7,132 — 7,132 9,407 — 9,407 Cartridges 152,842 — 152,842 115,193 — 115,193 Axon Body — 75,484 75,484 — 57,150 57,150 Axon Flex — 4,155 4,155 — 4,082 4,082 Axon Fleet — 24,319 24,319 — 20,108 20,108 Axon Dock — 24,441 24,441 — 19,723 19,723 Axon Evidence and cloud services 9,159 246,005 255,164 2,935 176,797 179,732 Extended warranties 24,125 33,686 57,811 20,754 24,408 45,162 Other 9,053 18,364 27,417 8,926 12,183 21,109 Total $ 436,927 $ 426,454 $ 863,381 $ 366,552 $ 314,451 $ 681,003 Year Ended December 31, 2019 Software and TASER Sensors Total TASER 7 $ 56,652 $ — $ 56,652 TASER X26P 52,524 — 52,524 TASER X2 55,920 — 55,920 TASER Consumer devices 4,089 — 4,089 Cartridges 85,987 — 85,987 Axon Body — 44,039 44,039 Axon Flex — 5,928 5,928 Axon Fleet — 16,182 16,182 Axon Dock — 20,449 20,449 Axon Evidence and cloud services 704 130,265 130,969 Extended warranties 18,074 19,188 37,262 Other 7,711 13,148 20,859 Total $ 281,661 $ 249,199 $ 530,860 The following table presents our revenues disaggregated by geography (in thousands): Year Ended December 31, 2021 2020 2019 United States $ 686,914 80 % $ 535,079 79 % $ 446,100 84 % Other Countries 176,467 20 145,924 21 84,760 16 Total $ 863,381 100.0 % $ 681,003 100.0 % $ 530,860 100.0 % Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers. We generally have an unconditional right to consideration when we invoice our customers and record a receivable. We record a contract asset when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. Contract assets generally result from our subscription programs where we satisfy a hardware performance obligation upon shipment to the customer, and the right to the portion of the transaction price allocated to that hardware performance obligation is conditional on our future performance of a SaaS service obligation under the contract. We recognize a portion of the amount allocated to hardware products shipped to the customer as accounts receivable when invoiced to the customer, and record the remaining allocated value as a contract asset as we have generally fulfilled our hardware performance obligation upon shipment. Unbilled accounts receivable expected to be invoiced and collected within twelve months was $13.9 million as of December 31, 2021, and was included in accounts and notes receivable, net on our consolidated balance sheet. Contract liabilities generally consist of deferred revenue on our subscription programs where we generally invoice customers at the beginning of each annual contract period and record a receivable at the time of invoicing when there is an unconditional right to consideration. Deferred revenue is comprised mainly of unearned revenue related to our Axon Evidence SaaS platform, secure cloud-based storage, service-type extended warranties, stand-ready obligations in our cartridge programs, and rights to future CED, camera and related accessories hardware in our subscription programs. Revenue for Axon Evidence and cloud-based storage, our service-type extended warranties and stand-ready cartridge programs is generally recognized on a straight-line basis over the subscription term. Revenue for the rights to future hardware is generally recognized at the point in time the hardware products are shipped to the customer. Payment terms and conditions vary by contract type and geography, but our standard terms are that payments are due within 30 days from the date of invoice. The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the year ended December 31, 2021 (in thousands): Year Ended December 31, 2021 2020 2019 Contract assets, net $ 210,174 $ 84,044 $ 47,746 Contract liabilities (deferred revenue) 451,312 275,181 205,800 Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period 177,812 135,513 101,768 Contract liabilities (deferred revenue) consisted of the following (in thousands): December 31, 2021 December 31, 2020 Current Long-Term Total Current Long-Term Total Warranty: TASER $ 21,257 $ 4,766 $ 26,023 $ 11,635 $ 16,953 $ 28,588 Software and Sensors 23,175 18,137 41,312 13,926 5,025 18,951 44,432 22,903 67,335 25,561 21,978 47,539 Hardware: TASER 12,944 28,727 41,671 16,314 14,304 30,618 Software and Sensors 34,862 81,223 116,085 25,181 50,981 76,162 47,806 109,950 157,756 41,495 65,285 106,780 Services: TASER 2,701 3,482 6,183 996 1,554 2,550 Software and Sensors 170,652 49,386 220,038 95,907 22,405 118,312 173,353 52,868 226,221 96,903 23,959 120,862 Total $ 265,591 $ 185,721 $ 451,312 $ 163,959 $ 111,222 $ 275,181 December 31, 2021 December 31, 2020 Current Long-Term Total Current Long-Term Total TASER $ 36,902 $ 36,975 $ 73,877 $ 28,945 $ 32,811 $ 61,756 Software and Sensors 228,689 148,746 377,435 135,014 78,411 213,425 Total $ 265,591 $ 185,721 $ 451,312 $ 163,959 $ 111,222 $ 275,181 Remaining Performance Obligations As of December 31, 2021, we had approximately $2.80 billion of remaining performance obligations, which included both recognized contract liabilities as well as amounts that will be invoiced and recognized in future periods. The remaining performance obligations are limited only to arrangements that meet the definition of a contract under Topic 606 as of December 31, 2021. We expect to recognize between 15% - 20% of this balance over the next twelve months, and expect the remainder to be recognized over the following five Costs to Obtain a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer, which consist primarily of sales commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contract and amortized consistent with the recognition timing of the revenue for the underlying performance obligations. For contract costs related to performance obligations with an amortization period of one year or less, we apply the practical expedient to expense these sales commissions when incurred. These costs are recognized as incurred within sales, general and administrative expenses on the accompanying consolidated statements of operations and comprehensive income. As of December 31, 2021, our assets for costs to obtain contracts were as follows (in thousands): December 31, 2021 December 31, 2020 Current deferred commissions (1) $ 19,962 $ 13,316 Deferred commissions, net of current portion (2) 54,028 32,455 $ 73,990 $ 45,771 (1) Current deferred commissions are included within prepaid expenses and other current assets on the accompanying consolidated balance sheet. (2) Deferred commissions, net of current portion, are included in other assets on the accompanying consolidated balance sheet. During the years ended December 31, 2021, 2020 and 2019, we recognized $16.6 million, $11.3 million, and $8.2 million, respectively, of amortization related to deferred commissions. These costs are recorded within sales, general and administrative expenses on the accompanying consolidated statements of operations and comprehensive income (loss). Significant Judgments Our contracts with certain municipal government customers may be subject to budget appropriation, other contract cancellation clauses or future periods which are optional. In contracts where the customer’s performance is subject to budget appropriation clauses, we generally consider the likelihood of non-appropriation to be remote when determining the contract term and transaction price. Contracts with other cancellation provisions or optional periods may require judgment in determining the contract term, including the existence of material rights, determining transaction price and identifying the performance obligations. At times, customers may request changes that either amend, replace or cancel existing contracts. Judgment is required to determine whether the specific facts and circumstances within the contracts require the changes to be accounted for as a separate contract or as a modification. Generally, contract modifications containing additional goods and services that are determined to be distinct and sold at their SSP are accounted for as a separate contract. For contract modifications where both criteria are not met, the original contract is updated and the required adjustments to revenue and contract assets, liabilities, and other accounts are made accordingly. Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately rather than together may require significant judgment. We consider CED devices and related accessories, as well as cameras and related accessories, to be separately identifiable from each other as well as from extended warranties on these products and the SaaS subscriptions to Axon Evidence and other cloud services. In contracts where there are timing differences between when we transfer a promised good or service to the customer and when the customer pays for that good or service, we have determined that, with the exception of our TASER 60 installment purchase arrangements, our contracts generally do not include a significant financing component. For the years ended December 31, 2021, 2020, and 2019, we recorded interest income of $1.0 million, $1.5 million, and $1.6 million, respectively. Judgment is required to determine the SSP for each distinct performance obligation. We analyze separate sales of our products and services as a basis for estimating the SSP of our products and services and then use that SSP as the basis for allocating the transaction price when our products and services are sold together in a contract with multiple performance obligations. In instances where the SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions, time value of money and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as geographic region and distribution channel in determining the SSP. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 12 Months Ended |
Dec. 31, 2021 | |
Cash, Cash Equivalents and Investments | |
Cash, Cash Equivalents and Investments | Note 3 - Cash, Cash Equivalents and Investments The following table summarizes our cash, cash equivalents, marketable securities, and available-for-sale investments at December 31, 2021 (in thousands): As of December 31, 2021 Gross Gross Cash and Amortized Unrealized Unrealized Cash Marketable Short-Term Long-Term Cost Gains Losses Fair Value Equivalents Securities Investments Investments Cash $ 353,488 $ — $ — $ 353,488 $ 353,488 $ — $ — $ — Level 1: Money market funds 2,844 — — 2,844 2,844 — — — Agency bonds 10,700 4 — 10,704 — — 10,704 — Marketable securities 90,000 — (17,820) 72,180 — 72,180 — — Subtotal 103,544 4 (17,820) 85,728 2,844 72,180 10,704 — Level 2: State and municipal obligations 2,570 — (5) 2,565 — — 1,400 1,165 Corporate bonds 32,748 1 (276) 32,473 — — 2,406 30,067 Subtotal 35,318 1 (281) 35,038 — — 3,806 31,232 Total $ 492,350 $ 5 $ (18,101) $ 474,254 $ 356,332 $ 72,180 $ 14,510 $ 31,232 During the year ended December 31, 2021, we acquired 9,000,000 shares of common stock of Cellebrite DI Ltd (“CLBT”) with a fair value of $90.0 million. The CLBT common stock is recorded as marketable securities in the accompanying consolidated balance sheets and its fair value is adjusted every reporting period. Changes in fair value are recorded in the consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in interest and other income, net. During the year ended December 31, 2021, we recorded a $17.8 million unrealized loss on marketable securities from our investment in CLBT. During the year ended December 31, 2021, we sold held-to-maturity securities with a net carrying amount of $165.4 million prior to their maturity. The following table summarizes our cash, cash equivalents, and held-to-maturity investments at December 31, 2020 (in thousands): As of December 31, 2020 Gross Gross Cash and Amortized Unrealized Unrealized Cash Short-Term Long-Term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 116,107 $ — $ — $ 116,107 $ 116,107 $ — $ — Level 1: Money market funds 23,611 — — 23,611 23,611 — — Agency bonds 63,794 122 — 63,916 — 23,794 40,000 Treasury bills 96,384 6 — 96,390 — 96,384 — Subtotal 183,789 128 — 183,917 23,611 120,178 40,000 Level 2: State and municipal obligations 77,130 25 (28) 77,127 — 66,519 10,611 Certificates of deposit 500 — — 500 — 500 — Corporate bonds 212,825 232 (100) 212,957 2,525 170,205 40,095 U.S. Treasury repurchase agreements 13,200 — — 13,200 13,200 — — Treasury inflation-protected securities 3,291 16 — 3,307 — 3,291 — Commercial paper 45,974 — — 45,974 — 45,974 — Subtotal 352,920 273 (128) 353,065 15,725 286,489 50,706 Total $ 652,816 $ 401 $ (128) $ 653,089 155,443 406,667 90,706 Expected credit loss reserve (3) (142) (25) Total, net of reserve for expected credit losses $ 155,440 $ 406,525 $ 90,681 Because we do not have any history of losses for our held-to-maturity investments, o ur expected credit loss reserve methodology for held-to-maturity investments is developed using published or estimated credit default rates for similar investments and current and future economic and market conditions. At December 31, 2020, our credit loss reserve for held-to-maturity investments was approximately $0.2 million. |
Expected Credit Losses
Expected Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Expected Credit Losses | |
Expected Credit Losses | Note 4 - Expected Credit Losses We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable, notes receivable, and contract assets is developed using historical collection experience, published or estimated credit default rates for entities that represent our customer base, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. We considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and reversed our previously-recorded additional reserve for credit losses of approximately $1.3 million during the year ended December 31, 2021. We review receivables for U.S. and international customers separately to better reflect different published credit default rates and economic and market conditions. The following table provides a roll-forward of the allowance for expected credit losses that is deducted from the amortized cost basis of accounts receivable, notes receivable, and contract assets to present the net amount expected to be collected (in thousands): Year Ended December 31, 2021 December 31, 2020 United States Other countries Total United States Other countries Total Balance, beginning of period $ 2,902 $ 474 $ 3,376 $ 1,395 $ 172 $ 1,567 Adoption of Topic 326, cumulative-effect adjustment to retained earnings — — — 767 1 768 Provision for (recovery of) expected credit losses 245 (291) (46) 824 391 1,215 Amounts written off charged against the allowance (54) — (54) (84) (33) (117) Other, including dispositions and foreign currency translation 78 (5) 73 — (57) (57) Balance, end of period $ 3,171 $ 178 $ 3,349 $ 2,902 $ 474 $ 3,376 As of December 31, 2021 and December 31, 2020, the allowance for expected credit losses for each type of customer receivable was as follows (in thousands): December 31, December 31, 2021 2020 Accounts receivable and notes receivable, current $ 2,203 $ 2,105 Contract assets, net 1,010 794 Long-term notes receivable, net of current portion 136 477 Total allowance for expected credit losses on customer receivables $ 3,349 $ 3,376 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 5 - Inventory Inventory consisted of the following at December 31, 2021 and December 31, 2020 (in thousands): December 31, 2021 December 31, 2020 Raw materials $ 38,267 $ 39,194 Finished goods 70,421 50,764 Total inventory $ 108,688 $ 89,958 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6 - Property and Equipment Property and equipment consisted of the following at December 31 (in thousands): Estimated Useful Life December 31, 2021 December 31, 2020 Land N/A $ 54,868 $ 57,052 Building and leasehold improvements 3 - 39 years 25,712 20,912 Production equipment 3 - 5 years 54,090 37,539 Computers, equipment and software 3 - 5 years 15,343 10,889 Furniture and office equipment 3 - 5 years 6,838 6,954 Vehicles 5 years 2,932 1,980 Website development costs 3 years 204 204 Capitalized internal-use software development costs 3 5 years 11,996 3,670 Construction-in-process N/A 25,258 13,479 Total cost 197,241 152,679 Less: Accumulated depreciation (58,784) (47,185) Property and equipment, net $ 138,457 $ 105,494 During the year ended December 31, 2021, we completed an implementation of several phases of our Enterprise Resource Planning (“ERP”) system. Following the implementation, we placed $6.6 million of related internal-use software development cost assets into service. Depreciation and amortization expense related to property and equipment was $15.8 million, $9.2 million and $7.9 million for the years ended December 31, 2021, 2020 and 2019, respectively, of which $6.3 million, $4.0 million and $3.5 million was included in cost of sales for the respective years. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7 - Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the year ended December 31, 2021 were as follows (in thousands): Software and TASER Sensors Total Balance, December 31, 2020 $ 1,450 $ 23,755 $ 25,205 Goodwill acquired — 18,495 18,495 Foreign currency translation adjustments (54) (54) (108) Balance, December 31, 2021 $ 1,396 $ 42,196 $ 43,592 Intangible assets (other than goodwill) consisted of the following (in thousands): December 31, 2021 December 31, 2020 Gross Net Gross Net Useful Carrying Accumulated Carrying Carrying Accumulated Carrying Life Amount Amortization Amount Amount Amortization Amount Amortizable (definite-lived) intangible assets: Domain names 5 ‑ 10 years $ 3,043 $ (1,518) $ 1,525 $ 3,036 $ (1,339) $ 1,697 Issued patents 5 ‑ 25 years 3,061 (1,457) 1,604 3,232 (1,567) 1,665 Issued trademarks 3 ‑ 15 years 1,130 (643) 487 1,002 (227) 775 Customer relationships 4 ‑ 8 years 4,985 (2,439) 2,546 3,780 (1,955) 1,825 Non-compete agreements 3 ‑ 4 years 454 (444) 10 460 (429) 31 Developed technology 3 ‑ 5 years 18,060 (10,465) 7,595 10,660 (8,713) 1,947 Total amortizable 30,733 (16,966) 13,767 22,170 (14,230) 7,940 Non-amortizable (indefinite-lived) intangible assets: TASER trademark 900 — 900 900 — 900 My90 trademark 168 — 168 — — — Patents and trademarks pending 635 — 635 608 — 608 Total non-amortizable 1,703 — 1,703 1,508 — 1,508 Total intangible assets $ 32,436 $ (16,966) $ 15,470 $ 23,678 $ (14,230) $ 9,448 Amortization expense of intangible assets was $2.9 million, $3.3 million and $3.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Estimated amortization for intangible assets with definitive lives for the next five years ended December 31, and thereafter, is as follows (in thousands): 2022 $ 3,908 2023 3,620 2024 3,546 2025 824 2026 682 Thereafter 1,187 Total $ 13,767 |
Strategic Investments
Strategic Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Strategic Investments | Note 8 – Strategic Investments Strategic investments include investments in a number of non-public technology-driven companies. We account for strategic investments under the ASC 321 measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for the investments. The investments are measured at cost less impairment, adjusted for observable price changes and are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In conjunction with certain of our strategic investments, we have the ability to commit additional capital over time through warrants where the exercisability and exercise prices are conditional on the achievement of certain channel partnership performance metrics. The amount recorded on our consolidated balance sheets represents the fair value of the preferred stock warrants as of December 31, 2021. The following tables provide a roll-forward of the balance of strategic investments (in thousands): Year Ended December 31, 2021 Strategic investments Warrants for strategic investment Total Balance, beginning of period $ 9,500 $ 2,211 $ 11,711 Investments 45,500 — 45,500 Observable price changes 40,321 534 40,855 Sales (14,546) — (14,546) Balance, end of period $ 80,775 $ 2,745 $ 83,520 Inception to date Strategic investments Warrants for strategic investment Total Investments $ 52,568 $ 2,588 $ 55,156 Observable price changes 42,753 157 42,910 Sales (14,546) — (14,546) Balance, end of period $ 80,775 $ 2,745 $ 83,520 In December 2021, we made a $25.0 million minority investment in and entered into a channel partnership agreement with Dedrone, Inc., a In February 2021, we made a $20.0 million minority investment in RapidSOS, Inc. During the year ended December 31, 2021, certain of our strategic investees issued new equity to us and/or other investors. These events represented observable price changes for our existing investments and related warrants. Of the total observable price changes, we realized a gain of approximately $12.3 million on the sale of a portion of one of our existing investments. The estimated fair value of the retained existing investments was calculated using valuation techniques that included both observable and unobservable inputs, and was lower than the issue per share of the new equity issued by the strategic investee because of different characteristics of the newly issued equity instruments compared to our existing investments. The valuation techniques included both Level 2 and Level 3 inputs as defined by ASC Topic 820. Subsequent Event In January 2022, one of our strategic investees issued new preferred stock to other investors. We determined that the preferred shares issued were similar to the shares we own, and the shares underlying our warrants in the strategic investee. Accordingly, the preferred share issuance represents an observable price change for our existing prior investments and related warrants, and we estimated the fair value of our investments and warrants as of the date of the observable price change. We are still finalizing the accounting impact of the transaction, but preliminarily expect to recognize an increase of at least $41.5 million to the carrying value of our strategic investments and related warrants, which we would recognize in earnings during the quarter ending March 31, 2022. |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | Note 9 - Other Long-Term Assets Other long-term assets consisted of the following at December 31 (in thousands): December 31, 2021 December 31, 2020 Cash surrender value of corporate-owned life insurance policies $ 5,276 $ 4,654 Deferred commissions (1) 54,028 32,455 Restricted cash 57 62 Operating lease assets 23,270 22,308 Deferred implementation costs (2) 3,915 — Prepaid expenses, deposits and other (3) 11,701 8,727 Total other long-term assets $ 98,247 $ 68,206 (1) Represents the incremental costs of obtaining contracts with customers, which consist primarily of sales commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contracts and amortized consistent with the recognition timing of the revenue for the underlying performance obligations. See Note 2 “Costs to Obtain a Contract”. (2) During the year ended December 31, 2021, we completed an implementation of several software-as-a-service applications supporting our internal operations. Following the implementation, we placed $4.3 million of deferred implementation costs assets related to these applications into service. (3) During the year ended December 31, 2021, we recorded a government grant receivable totaling $0.9 million in connection with the Arizona Qualified Facility Tax Credit (“QFTC”). Because U.S. GAAP does not contain authoritative accounting standards on this topic, we determined it most appropriate to account for the QFTC by analogy to International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance. Under IAS 20, the grant is initially recorded as other assets on the balance sheet and other income is recognized on a systematic basis over the periods in which the qualifying expenses are incurred when we determine that grant assets are no longer contingent. As of December 31, 2021, approximately $0.5 million was recorded in other assets with the remainder recorded in prepaid expenses and other current assets on our consolidated balance sheets. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Note 10 - Accrued Liabilities Accrued liabilities consisted of the following at December 31 (in thousands): December 31, 2021 December 31, 2020 Accrued salaries, benefits and bonus $ 62,425 $ 36,892 Accrued professional, consulting and lobbying fees 7,152 3,055 Accrued warranty expense 2,822 769 Accrued income and other taxes 3,736 3,848 Accrued inventory in transit 9,945 4,597 Other accrued expenses 17,627 10,682 Accrued liabilities $ 103,707 $ 59,843 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 - Commitments and Contingencies Data Storage Purchase Commitment In 2019, we entered into a purchase agreement for cloud data storage with a 3 year term beginning July 1, 2019. The purchase agreement includes a total commitment of $50.0 million, with an up-front prepayment of $15.0 million that was made in July 2019. Storage fees under this agreement were $22.4 million for the year ended December 31, 2021 and were recorded in cost of service sales. There is no remaining purchase commitment as of December 31, 2021. Purchase commitments We routinely enter into cancelable and non-cancelable purchase orders with many of our key vendors. Based on the strategic relationships with many of these vendors, our ability to cancel these purchase orders and maintain a favorable relationship would be limited. As of December 31, 2021, we had approximately $313.5 million of open purchase orders and $14.9 million of other purchase obligations. Subsequent Event On February 23, 2022, the Company entered into construction management agreement with Okland Construction Company, Inc. for construction of a new manufacturing and office campus on land the Company owns in Scottsdale, Arizona. The contract specifies a maximum guaranteed construction price of approximately $149.7 million. Construction is expected to start no later than May 3, 2022 with final completion by July 25, 2024. Product Litigation As a manufacturer of weapons and other law enforcement tools used in high-risk field environments, we are often the subject of products liability litigation concerning the use of our products. We are currently We continue to aggressively defend all product litigation. As a general rule, it is our policy not to settle suspect injury or death cases. Exceptions are sometimes made where the settlement is strategically beneficial to us. Due to the confidential nature of our litigation strategy and the confidentiality agreements that are executed in the event of a settlement, we do not identify or comment on specific settlements by case or amount. Based on current information, we do not believe that the outcome of any such legal proceeding will have a material effect on our financial position, results of operations, or cash flows. We are self-insured for the first $5.0 million of any product claim made after 2014. No judgment or settlement has ever exceeded this amount in any products case. We continue to maintain product liability insurance coverage, including an insurance policy fronting arrangement, above our self-insured retention with various limits depending on the policy period. U.S. Federal Trade Commission Litigation The U.S. Federal Trade Commission (“FTC”) filed an enforcement action on January 3, 2020 regarding Axon’s May 2018 acquisition of Vievu LLC from Safariland LLC. The FTC alleges the merger was anticompetitive and adversely affected the body worn camera (“BWC”) and digital evidence management systems (“DEMS”) market for “large metropolitan police departments.” The administrative hearing is presently stayed pending Axon’s Supreme Court challenge (see below). If ultimately successful, the FTC may require Axon to divest Vievu and other assets or take other remedial measures, any of which could be material to Axon. We are vigorously defending the matter. At this time, we cannot predict the eventual scope, duration, or outcome of the proceeding and accordingly we have not recorded any liability in the accompanying consolidated financial statements. Prior to the FTC’s enforcement action, Axon sued the FTC in federal court in the District of Arizona for declaratory and injunctive relief alleging the FTC’s structure and administrative processes violate Article II of the U.S. Constitution and our Fifth Amendment rights to due process and equal protection. The district court dismissed the action, without prejudice, for lack of jurisdiction. The Ninth Circuit affirmed in a split decision but granted Axon’s motion to stay the appellate mandate pending the filing of its petition for certiorari with the U.S. Supreme Court. On January 24, 2022, the Supreme Court granted Axon’s petition. Merits briefing will occur over the next several months with oral argument likely in October 2022. A decision is not likely until early 2023. The FTC’s administrative case will remain stayed pending resolution of the Supreme Court proceedings. In parallel to these matters, we are evaluating strategic alternatives to litigation, which we might pursue if determined to be in the best interests of shareholders and customers. This could include a divestiture of the Vievu entity and/or related assets and the licensure of certain intellectual and other intangible property. While we continue to believe the acquisition of Vievu was lawful and a benefit to Vievu’s customers, the cost, risk and distraction of protracted litigation merit consideration of settlement if achievable on terms agreeable to the FTC and the Company. General From time to time, we are notified that we may be a party to a lawsuit or that a claim is being made against us. It is our policy to not disclose the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on us. After carefully assessing the claim, and assuming we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend any lawsuit filed against us. We record a liability when losses are deemed probable and reasonably estimable. When losses are deemed reasonably possible but not probable, we determine whether it is possible to provide an estimate of the amount of the loss or range of possible losses for the claim, if material for disclosure. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of our prevailing, the availability of insurance, and the severity of any potential loss. We reevaluate and update accruals as matters progress over time. Based on our assessment of outstanding litigation and claims as of December 31, 2021, we have determined that it is not reasonably possible that these lawsuits will individually, or in the aggregate, materially affect our results of operations, financial condition or cash flows. However, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows. Off-Balance Sheet Arrangements Under certain circumstances, we use letters of credit and surety bonds to guarantee our performance under various contracts, principally in connection with the installation and integration of Axon cameras and related technologies. Certain of our letters of credit and surety bonds have stated expiration dates with others being released as the contractual performance terms are completed. At December 31, 2021, we had outstanding letters of credit of $6.1 million that are expected to expire in June 2022. We also had outstanding letters of credit and bank guarantees of $1.3 million that do not draw against our credit facility. These outstanding letters of credit and bank guarantees are expected to expire May 2022. Additionally, we had $21.5 million of outstanding surety bonds at December 31, 2021, with $3.5 million expiring in 2022, $7.5 million expiring in 2023 and the remaining $10.5 million expiring in 2024. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 - Income Taxes Income (loss) before provision (benefit) for income taxes included the following components for the years ended December 31 (in thousands): 2021 2020 2019 United States $ (146,995) $ (11,529) $ (1,449) Foreign 5,620 5,238 3,519 Total $ (141,375) $ (6,291) $ 2,070 Significant components of the provision (benefit) for income taxes are as follows for the years ended December 31 (in thousands): 2021 2020 2019 Current: Federal $ (331) $ 5,277 $ 4,247 State 85 3,886 2,414 Foreign (60) 1,943 1,533 Total current (306) 11,106 8,194 Deferred: Federal (65,557) (10,175) (6,060) State (15,266) (3,111) (1,665) Foreign 478 (3,131) (264) Total deferred (80,345) (16,417) (7,989) Tax impact of unrecorded tax benefits liability (706) 744 983 Provision (benefit) for income taxes $ (81,357) $ (4,567) $ 1,188 A reconciliation of our effective income tax rate to the federal statutory rate follows for the years ended December 31 (in thousands): 2021 2020 2019 Federal income tax at the statutory rate $ (29,691) $ (1,321) $ 435 State income taxes, net of federal benefit (12,717) 935 526 Difference between statutory and foreign tax rates (155) (86) 43 Other permanent differences (1) 1,842 794 1,356 Foreign derived intangible income deduction — (902) (217) Executive compensation limitation 180,509 15,463 7,596 Research and development (34,376) (10,246) (4,911) Return to provision adjustment 204 (1,078) (9) Change in liability for unrecognized tax benefits 10,188 987 1,191 Excess stock-based compensation benefit (205,483) (9,002) (4,999) Change in valuation allowance 8,961 163 368 Tax effects of intercompany transactions 96 (389) 16 Other (735) 115 (207) Provision for income taxes (Income tax benefit) $ (81,357) $ (4,567) $ 1,188 Effective tax rate 57.5 % 72.6 % 57.4 % (1) Other permanent differences include certain expenses that are not deductible for tax purposes including meals and entertainment, lobbying fees, and taxable income as a result of global intangible low-tax income ("GILTI"). Significant components of our deferred income tax assets and liabilities are as follows at December 31 (in thousands): 2021 2020 Deferred income tax assets: Net operating loss carryforward $ 68,353 $ 1,834 Deferred revenue 27,031 21,055 Deferred compensation 1,414 1,175 Lease liability 5,886 5,730 Inventory reserve 684 511 Stock-based compensation 10,913 18,890 Amortization 2,672 2,436 Research and development tax credit carryforward 29,249 6,654 Reserves, accruals, and other 14,717 7,274 Total deferred income tax assets 160,919 65,559 Deferred income tax liabilities: Contract asset (1,104) (1,150) Right of use asset (5,008) (5,237) Depreciation (8,938) (5,363) Strategic investments (2,653) (321) Prepaid expenses (594) (874) Other (72) (185) Total deferred income tax liabilities (18,369) (13,130) Net deferred income tax assets before valuation allowance 142,550 52,429 Valuation allowance (16,168) (7,308) Net deferred income tax assets $ 126,382 $ 45,121 We have a federal net operating loss (“NOL”) of $259.0 million which will carry forward indefinitely. We also have a federal NOL of $0.1 million that will expire in 2036, which is subject to limitation under Internal Revenue Code (“IRC”) Section 382. Additionally, we have $251.4 million of state NOLs which will expire at various dates between 2026 and 2041 or carry forward indefinitely. We have $27.6 million of federal R&D credits, which expire between 2034 and 2041, and $0.1 million of which is subject to limitation under IRC Section 382. We have $19.1 million of state R&D credits carrying forward, which expire at various dates between 2022 and 2036, or carry forward indefinitely. In the U.K., Canada, and Finland, we have $1.5 million, $0.3 million, and $0.2 million of NOLs, respectively, which expire at various dates or may be carried forward indefinitely. In preparing our consolidated financial statements, we have assessed the likelihood that deferred income tax assets will be realized from future taxable income. In evaluating the ability to recover deferred income tax assets, we consider all available evidence, positive and negative, including our operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction by jurisdiction basis. A valuation allowance is established if it is determined that it is more likely than not that some portion or all of the net deferred income tax assets will not be realized. We exercise significant judgment in determining our provision for income taxes, our deferred income tax assets and liabilities, and our future taxable income for purposes of assessing our ability to utilize any future tax benefit from our deferred income tax assets. As of December 31, 2021, management continues to believe the positive evidence from projected future earnings outweighs the negative evidence and a valuation allowance is not needed. We have concluded that a valuation allowance is necessary against an unrealized loss on an investment in marketable securities as well as transaction costs incurred in connection with certain investments. Additionally, we do have Arizona R&D tax credits expiring unutilized each year; therefore, management has concluded that it is more likely than not that our Arizona R&D deferred tax asset will not be realized, and a valuation allowance has been recorded against this net asset. In Australia, we have determined that sufficient deferred tax liabilities will reverse in order to realize all assets except one long-lived intangible where there is not an expectation that the asset may be realized. Therefore, we continue to have a partial valuation allowance for Australia. We consider the undistributed earnings of certain non-U.S. subsidiaries to be indefinitely reinvested outside of the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings. We project that our foreign earnings will be utilized offshore for working capital and future foreign growth and we have not made a provision for U.S. or additional foreign withholding taxes of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. We have determined the amount of deferred tax liability related to investments in these foreign subsidiaries is immaterial. If we decide to repatriate the undistributed foreign earnings, we will recognize the income tax effects in the period we change our assertion on indefinite reinvestment. We complete R&D tax credit studies for each year that an R&D tax credit is claimed for federal and state income tax purposes. Management has made the determination that it is more likely than not that the full benefit of the R&D tax credit will not be sustained on examination and recorded a liability for unrecognized tax benefits of $18.2 million as of December 31, 2021. Should the unrecognized tax benefit of $18.2 million be recognized, our effective tax rate would be favorably impacted. The following table presents a roll forward of our liability for unrecognized tax benefits, exclusive of accrued interest, as of December 31 (in thousands): 2021 2020 2019 Balance, beginning of period $ 7,657 $ 6,861 $ 6,058 Increase (decrease) in previous year tax positions 22 (34) (615) Increase in current year tax positions 11,416 950 1,749 Decrease due to lapse of statutes of limitations (846) (120) (331) Balance, end of period $ 18,249 $ 7,657 $ 6,861 Federal income tax returns for 2018 through 2020 remain open to examination by the U.S. Internal Revenue Service (the “IRS”), while state and local income tax returns for 2017 through 2020 also generally remain open to examination by state taxing authorities. The 2007 through 2016 income tax returns are only open to the extent that net operating loss or other tax attributes carrying forward from those years were utilized in 2017 through 2020. The foreign tax returns for 2017 through 2020 also generally remain open to examination. During 2021, we started and completed an audit of our 2018 Illinois income tax return. Additionally, we have been notified that an audit will commence for Axon Public Safety Southeast Asia LLC, our entity in Vietnam. The tax period has not yet been defined. We recognize interest and penalties related to unrecognized tax benefits within the provision (benefit) for income tax expense line in the accompanying consolidated statements of operations and comprehensive income (loss). As of December 31, 2021, and 2020, we had accrued interest of $0.2 million and $0.2 million, respectively. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Line of Credit | Note 13 - Line of Credit We have a $50.0 million unsecured revolving line of credit with a domestic bank, of which $20.0 million is available for letters of credit. The credit agreement matures on December 31, 2023 and has an accordion feature which allows for an increase in the total line of credit up to $100.0 million, subject to certain conditions, including the availability of additional bank commitments. At December 31, 2021 and 2020, there were no borrowings under the line. Under the terms of the line of credit, available borrowings are reduced by outstanding letters of credit. As of December 31, 2021, we had letters of credit outstanding of approximately $6.1 million under the facility and available borrowing of $43.9 million. Advances under the line of credit bear interest at LIBOR plus 1.0 to 1.5% per year determined in accordance with a pricing grid based on our funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. We are required to comply with a maximum funded debt to EBITDA ratio of no greater than 2.50 to 1.00 based upon a trailing four fiscal quarter period. At December 31, 2021, our funded debt to EBITDA ratio was 0.00 to 1.00. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 14 - Stockholders’ Equity At-the-Market equity offering During the year ended December 31, 2021, we sold 577,956 shares of our common stock under our "at-the-market" equity offering program (the “ATM”). We generated approximately $107.6 million in aggregate gross proceeds from sales under the ATM. Aggregate net proceeds from the ATM were $105.5 million after deducting related expenses, including commissions to the sales agent of $1.6 million and issuance costs of $0.4 million. We may sell up to a total of 3.0 million shares of our common stock under the ATM. The ATM expires on April 20, 2024. We intend to use the net proceeds from this offering for general corporate purposes, which may include, among other things, providing capital to satisfy a portion of the tax obligations related to the vesting and settlement of stock compensation awards granted to our executive officers and other employees under our stock incentive plans, to support our growth, and to acquire or invest in product lines, products, services, technologies or facilities. Common Stock and Preferred Stock We have authorized the issuance of two classes of stock designated as “common stock” and “preferred stock,” each having a par value of $0.00001 per Stock-based Compensation Plans We have historically utilized stock-based compensation, consisting of RSUs and stock options, for key employees and non-employee directors as a means of attracting and retaining talented personnel. Service-based grants generally have a vesting period of 2 to 5 years and a contractual maturity of ten years. Performance-based grants generally have vesting periods ranging from 1 to 10 years and a contractual maturity of ten years. On February 12, 2019, our shareholders approved the 2019 Plan, which was adopted by the Board of Directors to reserve a sufficient number of shares to facilitate our XSPP and grants of XSUs under the plan. Under the 2019 Plan, we reserved for future grants: (i) 6.0 million shares of common stock, plus (ii) the number of shares of common stock that were authorized but unissued under our 2018 Stock Incentive Plan (the “2018 Plan”) and all prior Company equity plans as of the effective date of the 2019 Plan, and (iii) the number of shares of stock that have been granted under the prior plans that either terminate, expire or lapse for any reason after the effective date of the 2019 Plan. As of December 31, 2021, approximately 1.0 million shares remain available for future grants. Shares issued upon exercise of stock awards from these plans have historically been issued from our authorized unissued shares. Performance-based stock awards We have issued performance-based stock options and performance-based RSUs, the vesting of which is generally contingent upon the achievement of certain performance criteria related to our operating performance, as well as successful and timely development and market acceptance of future product introductions. In addition, certain of the performance RSUs have additional service requirements subsequent to the achievement of the performance criteria. Compensation expense is recognized over the requisite service period, which is defined as the longest explicit, implicit or derived service period based on management’s estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date. For both service-based and performance-based RSUs, we account for forfeitures as they occur as a reduction to stock-based compensation expense and additional paid-in-capital CEO Performance Award On May 24, 2018, our stockholders approved the CEO Performance Award of 6,365,856 stock option awards. The CEO Performance Award consists of 12 vesting tranches with a vesting schedule based entirely on the attainment of both operational goals (performance conditions) and market capitalization goals (market conditions), assuming continued employment either as the CEO or as both Executive Chairman and Chief Product Officer and service through each attainment date. Each of the 12 vesting tranches of the CEO Performance Award have a 10-year contractual term and will vest upon certification by the Compensation Committee of the Board of Directors (the “Compensation Committee”) that both (i) the market capitalization goal for such tranche, which begins at $2.5 billion for the first tranche and increases by increments of $1.0 billion thereafter, and (ii) any one of the following eight operational goals focused on revenue or eight operational goals focused on Adjusted EBITDA have been met for the previous four consecutive fiscal quarters. Adjusted EBITDA for purposes of the CEO Performance Award ("Adjusted EBITDA (CEO Performance Award)") is defined as net income (loss) attributable to common stockholders before interest expense, investment interest income, provision (benefit) for income taxes, depreciation and amortization, and stock-based compensation expense. Revenue Goal (1) (in thousands) Achievement Status Adjusted EBITDA (in thousands) Achievement Status Goal #1, $710,058 Achieved Goal #1 $125,000 Achieved Goal #2, $860,058 Achieved Goal #2, $155,000 Achieved Goal #3, $1,010,058 Probable Goal #3 $175,000 Achieved Goal #4, $1,210,058 Probable Goal #4, $190,000 Achieved Goal #5, $1,410,058 Not Applicable Goal #5 $200,000 Achieved Goal #6, $1,610,058 Not Applicable Goal #6, $210,000 Achieved Goal #7, $1,810,058 Not Applicable Goal #7, $220,000 Achieved Goal #8, $2,010,058 Not Applicable Goal #8 $230,000 Achieved (1) In connection with the business acquisition that was completed during the three months ended June 30, 2018, the revenue goals were adjusted for the acquiree’s Target Revenue, as defined in the CEO Performance Award agreement. Stock-based compensation expense associated with the CEO Performance Award is recognized over the longer of the expected achievement period for each pair of market capitalization and operational goals, beginning at the point in time when the relevant operational goal is considered probable of being met. The probability of meeting an operational goal and the expected achievement point in time for meeting a probable operational goal are based on a subjective assessment of our forward-looking financial projections, taking into consideration statistical analysis. Even though no tranches of the CEO Performance Award vest unless a market capitalization and a matching operational goal are both achieved, stock-based compensation expense is recognized when an operational goal is considered probable of achievement regardless of whether a market capitalization goal is actually achieved. Stock-based compensation represents a non-cash expense and is recorded in sales, general, and administrative operating expense on our consolidated statements of operations and comprehensive income. The first ten market capitalization goals have been achieved as of December 31, 2021. As of December 31, 2021, 5.3 million stock options have been certified by the Compensation Committee and vested. As twelve operational goals have been achieved or are considered probable of achievement, we recorded stock-based compensation expense of $230.3 million related to the CEO Performance Award from the grant date through December 31, 2021. The number of stock options that would vest related to the remaining unvested tranches is approximately 1.1 million shares. As of December 31, 2021, we had $15.7 million of total unrecognized stock-based compensation expense for the performance goals that were considered probable of achievement, which will be recognized over a weighted-average period of 1.51 years. eXponential Stock Performance Plan On February 12, 2019, our shareholders approved the 2019 Stock Incentive Plan (the “2019 Plan”), which was adopted by the Board of Directors to reserve a sufficient number of shares to facilitate our eXponential Stock Performance Plan (“XSPP”) and grants of eXponential Stock Units (“XSUs”) under the plan. Initial awards under the plan were granted in January 2019, with additional employee awards granted since that date. During the year ended December 31, 2021 we granted an additional forty thousand XSUs. The XSUs are grants of restricted stock units, each with a term of approximately nine years, that vest in 12 equal tranches. Each of the 12 tranches will vest upon certification by the Compensation Committee that both (i) the market capitalization goal for such tranche, which begins at $2.5 billion for the first tranche and increases by increments of $1.0 billion thereafter, and (ii) any one of eight operational goals focused on revenue or eight operational goals focused on Adjusted EBITDA (CEO Performance Award) have been met for the previous four consecutive fiscal quarters. Beginning with the quarter ended June 30, 2021, new XSU grants are divided into a reduced number of tranches depending on employee eligibility and current market capitalization attainment. The XSPP contains an anti-dilution provision incorporated into the plan based on shareholder feedback, which affects the calculation of the market capitalization goals in the plan. The plan defines a maximum number of shares outstanding that may be used in the calculation of the market capitalization goals (the “XSU Maximum”). If the actual number of shares outstanding exceeds the XSU Maximum guardrail, then the lower pre-defined number of shares in the XSU Maximum, rather than the higher actual number of shares outstanding, is used to calculate market capitalization for the determination of the market capitalization goals in the XSPP, which, together with the operational goals, determines whether XSUs vest for participating employees. The XSU Maximum is defined as the actual number of shares outstanding on the original XSU grant date of January 2, 2019, increased by a 3% annual rate over the term of the XSPP and by shares issued upon the exercise of CEO Performance Award options. The XSU Maximum is also adjusted for acquisitions, spin-offs or other changes in the number of outstanding shares of common stock, if such changes have a corresponding adjustment on the market capitalization goals. New shares issued for any other reasons, including shares issued upon vesting of XSUs, RSUs, and Performance Stock Units (“PSUs”) as well as shares issued to raise capital through equity issuances or in other transactions, do not increase the XSU Maximum. The market capitalization and operational goals are identical to the CEO Performance Award, but a different number of shares is used to calculate the market capitalization goals if shares outstanding exceed the XSU Maximum. Additionally, because the grant date is different than that of the CEO Performance Award, the measurement period for market capitalization is not identical. The first nine market capitalization goals have been achieved as of December 31, 2021. The tenth market capitalization goal has not yet been attained, though the related operational goal was achieved as of September 30, 2021. The first XSU tranche vested in March 2021, the second and third tranches vested in May 2021, five tranches vested in September 2021, and one tranche vested in December 2021. As all twelve operational goals have been achieved or are considered probable of achievement, we recorded stock-based compensation expense of $177.4 million related to the XSU awards from their respective grant dates through December 31, 2021. The number of XSU awards that would vest related to the remaining three tranches is approximately 1.3 million shares. As of December 31, 2021, we had $21.6 million of total unrecognized stock-based compensation expense, which will be recognized over a weighted-average period of 2.02 years. Restricted Stock Units The following table summarizes RSU activity for the years ended December 31 (number of units and aggregate intrinsic value in thousands): 2021 2020 2019 Weighted Weighted Weighted Number Average Number Average Number Average of Grant-Date of Grant-Date of Grant-Date Units Fair Value Units Fair Value Units Fair Value Units outstanding, beginning of year 1,107 $ 76.10 1,249 $ 45.47 1,244 $ 28.52 Granted 686 165.67 577 100.76 718 59.09 Released (554) 66.23 (598) 40.68 (547) 27.38 Forfeited (124) 100.64 (121) 52.40 (166) 36.91 Units outstanding, end of year 1,115 133.40 1,107 76.10 1,249 45.47 Aggregate intrinsic value at year end $ 174,999 Aggregate intrinsic value represents our closing stock price on the last trading day of the period, which was $157.00 per share at December 31, 2021, multiplied by the number of RSUs. The fair value as of the respective vesting dates of RSUs that vested during the year was $96.4 million, $56.0 million, and $39.4 million for the years ended December 31, 2021, 2020, and 2019, respectively. Certain RSUs that vested in the year ended December 31, 2021 were net-share settled, such that we withheld shares to cover the employees’ tax obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. Total shares withheld during 2021 were 0.1 million and had a value of approximately $11.1 million on their respective vesting dates as determined by the closing stock price of our stock. Payments for the employees’ tax obligations are reflected as a financing activity within the consolidated statements of cash flows. We record a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. As of December 31, 2021, we had $128.1 million of total unrecognized stock-based compensation expense related to RSUs under our stock plans for shares that are expected to vest. We expect to recognize the cost related to the RSUs over a weighted average period of 2.38 years. RSUs are released when vesting requirements are met. Performance Stock Units The following table summarizes PSU activity, inclusive of XSUs, for the years ended December 31 (number of units and aggregate intrinsic value in thousands): 2021 2020 2019 Weighted Weighted Weighted Number Average Number Average Number Average of Grant-Date of Grant-Date of Grant-Date Units Fair Value Units Fair Value Units Fair Value Units outstanding, beginning of year 5,618 $ 35.71 6,033 $ 34.47 411 $ 27.82 Granted 309 77.53 417 58.11 6,041 34.61 Released (4,345) 37.16 (184) 27.79 (103) 17.14 Forfeited (83) 40.91 (648) 40.83 (316) 33.99 Units outstanding, end of year 1,499 39.86 5,618 35.71 6,033 34.47 Aggregate intrinsic value at year end $ 235,325 Aggregate intrinsic value represents our closing stock price on the last trading day of the period, which was $157.00 per share, multiplied by the number of PSUs outstanding. As of December 31, 2021, there was $33.5 million in unrecognized compensation costs related to PSUs under our stock plans for shares that are expected to vest. We expect to recognize the cost related to the PSUs over a weighted average period of 2.21 years. PSUs are released when vesting requirements are met. As of December 31, 2021, the performance criteria had been met for approximately seven thousand of the 1.5 million PSUs outstanding. On March 8, May 17, and September 9, 2021, the Compensation Committee of our Board of Directors approved waivers of the holding period requirements for each XSPP participant who is an Arizona resident and elected to receive XSUs in lieu of On-Target Earnings. This waiver releases the holding period requirements to allow participants the ability to choose to sell a portion of their vested shares to satisfy new income tax obligations pursuant to Arizona Proposition 208, which was passed in the November 2020 state-wide election. This waiver applied to approximately 4% of the XSUs for the impacted participants which vested on March 8, May 17 and September 9, 2021, amounting to approximately 99 thousand shares. The remainder of the shares not sold to satisfy tax obligations are subject to a 2.5 year minimum holding period. We accounted for this change as a Type I modification under ASC 718 since there was no impact on attainment of the operational or market capitalization goals. We recognized additional stock-based compensation expense $2.8 million for the year ended December 31, 2021, respectively, because of this modification. since there was no impact on attainment of the operational or market capitalization goals Certain PSUs that vested in the year ended December 31, 2021 were net-share settled such that we withheld shares to cover the employees’ tax obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. Total shares withheld related to PSUs were approximately 1.2 million and had a value of $204.3 million on their respective vesting dates as determined by the closing stock price on such dates. Of this amount, approximately 1.1 million related to the release of tranches four through nine of the XSPP. Payments for the employees’ tax obligations are reflected as a financing activity within the consolidated statements of cash flows. We record a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. Stock Option Activity The following table summarizes stock option activity for the years ended December 31 (number of options in thousands): 2021 2020 2019 Weighted Weighted Weighted Number Average Number Average Number Average of Exercise of Exercise of Exercise Options Price Options Price Options Price Options outstanding, beginning of year 6,366 $ 28.58 6,431 $ 28.34 6,458 $ 28.24 Granted — — — — — — Exercised (3,928) 28.58 (65) 4.52 (27) 4.27 Expired / terminated — — — — — — Options outstanding, end of year 2,438 28.58 6,366 28.58 6,431 28.34 Options exercisable, end of year 1,377 28.58 530 28.58 65 4.52 We did not grant any stock options in 2021, 2020 or 2019. The total intrinsic value of options exercised was $571.4 million, $5.1 million and $1.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. The intrinsic value for options exercised was calculated as the difference between the exercise price of the underlying stock option awards and the market price of our common stock on the date of exercise. Of the total stock options exercised during the year ended December 31, 2021, 0.6 million were sold to cover the CEO’s tax obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. Additionally, 0.3 million were sold to cover the strike price of the exercised options. Total shares sold related to the exercised options had a value of $160.6 million on their respective exercise dates. Additionally, 2.1 million options exercised were net-share settled such that we withheld shares to cover the CEO’s tax obligation and strike price. Total shares withheld related to the exercised options were 1.1 million and had a value of $176.6 million on the exercise date as determined by the closing stock price on such date. Payments for the employee's tax obligations are reflected as a financing activity within the statement of cash flows. We recorded a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. The following table summarizes information about stock options that were fully vested or expected to vest as of December 31, 2021 (number of options in thousands): Options Outstanding Options Exercisable Weighted Weighted Weighted Average Weighted Average Number of Average Remaining Number of Average Remaining Range of Options Exercise Contractual Options Exercise Contractual Exercise Price Outstanding Price Life (Years) Exercisable Price Life (Years) $28.58 1,377 $ 28.58 6.15 1,377 $ 28.58 6.15 The aggregate intrinsic value of options exercisable at December 31, 2021 was $176.8 million, respectively. Aggregate intrinsic value represents the difference between the exercise price of the underlying stock option awards and the closing market price of our common stock of $157.00 on December 31, 2021. At December 31, 2021, we had 1.1 million unvested options outstanding with a weighted average exercise price of $28.58 per share, weighted average grant-date fair value of $35.80 per share and weighted average remaining contractual life of 6.2 years. The aggregate intrinsic value of unvested options at December 31, 2021 was $136.3 million. Stock-based Compensation Expense We account for stock-based compensation using the fair-value method. Reported stock-based compensation expense was classified as follows for the years ended December 31 (in thousands): 2021 2020 2019 Cost of product and service sales $ 5,844 $ 3,464 $ 1,565 Sales, general and administrative expenses 238,813 103,860 59,342 Research and development expenses 58,674 26,248 17,588 Total stock-based compensation expense $ 303,331 $ 133,572 $ 78,495 Income tax benefit $ 30,586 $ 29,329 $ 11,457 Stock Inducement Plan In September 2019, our Board of Directors adopted the Axon Enterprise, Inc. 2019 Stock Inducement Plan (the “2019 Inducement Plan”) pursuant to which we reserved 500,000 shares of common stock for issuance under the Inducement Plan. The 2019 Inducement Plan was adopted without stockholder approval pursuant to Rule 5635(c)(4) and Rule 5635(c)(3) of the Nasdaq Listing Rules. The Inducement Plan provides for the grant of equity-based awards, including restricted stock units, restricted stock, performance shares and performance units, and its terms are substantially similar to our stockholder-approved 2019 Plan. In accordance with Rule 5635(c)(4) and Rule 5635(c)(3) of the Nasdaq Listing Rules, awards under the Inducement Plan may only be made to individuals not previously employees or non-employee directors of the Company (or following such individuals’ bona fide period of non-employment with the Company), as an inducement material to the individuals’ entry into employment with the Company. As of December 31, 2021, there were 29,600 shares available for grant under the 2019 Inducement Plan. Stock Repurchase Plan In February 2016, our Board of Directors authorized a stock repurchase program to acquire up to $50.0 million of our outstanding common stock subject to stock market conditions and corporate considerations. As of December 31, 2021 and 2020, $16.3 million remained available under the plan for future purchases. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (loss) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (loss) | Note 15 – Accumulated Other Comprehensive Income (loss) The following table reflects the changes in accumulated other comprehensive income (loss), net of tax (in thousands): Unrealized Gains (Losses) on Available-for-Sale Foreign Currency Investments Translation Total Balance, December 31, 2019 $ — $ (1,096) $ (1,096) Other comprehensive income — 1,237 1,237 Balance, December 31, 2020 $ — $ 141 $ 141 Other comprehensive loss (207) (1,251) (1,458) Balance, December 31, 2021 $ (207) $ (1,110) $ (1,317) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 16 - Leases Lease Obligations We determine if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Additionally, we use the portfolio approach in determining the discount rate used to present value lease payments. We give consideration to our line of credit as well as publicly available data for instruments with similar characteristics when estimating our incremental borrowing rates. The ROU asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives. We have operating leases for office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning on or after January 1, 2019, we account for lease components separately from non-lease components for all asset classes. Our leases have remaining terms of less than 1 to approximately 7 years, some of which include one or more options to renew for up to 5 years, and some of which include options to terminate the leases within 1 year. The exercise of lease renewal options is at our sole discretion and such options are included in ROU assets and liabilities for renewal periods that are reasonably certain of exercise. Certain of our lease agreements include stated rental payment escalations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Finance leases as of December 31, 2021 were immaterial. Leases (in thousands) Classification December 31, 2021 December 31, 2020 Assets Operating lease assets Other assets $ 23,270 $ 22,308 Liabilities Current Operating Other current liabilities $ 6,540 $ 5,431 Noncurrent Operating Other long-term liabilities 20,439 18,952 Total lease liabilities $ 26,979 $ 24,383 The components of lease expense were as follows (in thousands): Twelve Months Ended Twelve Months Ended Classification December 31, 2021 December 31, 2020 Operating lease expense (1) Sales, general and administrative (2) $ 7,495 $ 6,757 Sublease income Interest and other income, net — (55) Net lease expense $ 7,495 $ 6,702 (1) Includes short-term leases, which are immaterial. (2) An immaterial portion of operating lease expense is included within research and development expenses and cost of sales. Other information related to leases was as follows (in thousands, except lease term and discount rate): Twelve Months Ended Twelve Months Ended December 31, 2021 December 31, 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 7,506 $ 4,666 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 6,726 17,390 Weighted average remaining lease term: Operating leases 4.2 years 4.4 years Weighted average discount rate: Operating leases 2.73 % 3.36 % Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows (in thousands): Operating 2022 7,782 2023 7,397 2024 5,961 2025 5,915 2026 2,176 Thereafter 214 Total minimum lease payments 29,445 Less: Amount representing interest (2,466) Present value of lease payments $ 26,979 As of December 31, 2021, we do not have any leases that have not yet commenced that create significant rights and obligations for us. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 17 - Employee Benefit Plans We have 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. We also have 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 us. The non-qualified deferred compensation plan allows eligible participants to defer up to 80% of their base salary and up to 100% of other types of compensation. The plan also allows for matching and discretionary employer contributions. Employee deferrals are deemed 100% vested upon contribution. Distributions from the plan generally commence upon retirement, death, separation of service, specified date or upon the occurrence of an unforeseeable emergency. Distributions can be paid in a variety of forms from lump sum to installments over a period of years. Participants in the plan are entitled to select from a wide variety of investments available under the plan and are allocated gains or losses based upon the performance of the investments selected by the participant. All gains or losses are allocated fully to plan participants and we do not guarantee a rate of return on deferred balances. Assets related to this plan consist of corporate-owned life insurance contracts and are included in other assets in the consolidated balance sheets; see Note 9 for balances. Participants have no rights or claims with respect to any plan assets and any such assets are subject to the claims of our general creditors. Contributions to the plans are made by both the employee and us. Our contributions to the 401(k) plan are based on the level of employee contributions and are immediately vested. Future matching contributions to the plans are at our sole discretion. We also sponsor defined contribution plans in Australia, Finland, and the United Kingdom. Our matching contributions for all defined contribution plans for the years ended December 31, 2021, 2020 and 2019, were approximately $7.4 million, $5.6 million and $4.8 million, respectively. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Acquisitions | Note 18 - Business Acquisitions Occam Video Solutions, LLC On December 22, 2021, we acquired all of the outstanding membership interests of Occam Video Solutions LLC, a developer of forensic video solutions software. The primary reason for the acquisition was to acquire technologies and know-how to enable Axon to serve customers more effectively. The purchase price of $26.0 million consisted of $22.0 million in cash, net of cash acquired of $0.3 million, $1.5 million, or 9,381 shares, of Axon shares which vest ratably over 3 years, and up to $2.5 million, or 15,635 shares, of contingent consideration, which vest in two even tranches if specified financial targets are achieved by March 31, 2025. The final purchase price and purchase price allocation will be finalized at the end of the measurement period when we have completed the detailed valuations and necessary calculations. Based on the preliminary purchase price allocation, we recorded $18.0 million of goodwill, $8.6 million of identifiable intangible assets, and $0.7 million in net liabilities. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of the business and is deductible for tax purposes. We have assigned the goodwill to the Software and Sensors segment. Identifiable definite-lived intangible assets were assigned a total weighted average amortization period of 3.6 years. |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Data | Note 19 - Segment Data Our operations are comprised of two reportable segments: the TASER segment and the Software and Sensors segment. In both segments, we report sales of products and services. Service revenue in both segments includes sales related to Axon Evidence. In the TASER segment, service revenue also includes digital subscription training content. In the Software and Sensors segment, service revenue also includes other recurring cloud-hosted software revenue and related professional services. Collectively, this revenue is sometimes referred to as "Axon Cloud revenue." Our Chief Executive Officer, who is the CODM, is not provided asset information or sales, general, and administrative expense by segment. Information relative to our reportable segments was as follows (in thousands): For the year ended December 31, 2021 Software and TASER Sensors Total Net sales from products $ 426,916 $ 181,609 $ 608,525 Net sales from services 10,011 244,845 254,856 Net sales 436,927 426,454 863,381 Cost of product sales 149,739 110,359 260,098 Cost of service sales 145 62,228 62,373 Cost of sales 149,884 172,587 322,471 Gross margin $ 287,043 $ 253,867 $ 540,910 Research and development $ 46,136 $ 147,890 $ 194,026 For the year ended December 31, 2020 Software and TASER Sensors Total Net sales from products $ 362,649 $ 137,601 $ 500,250 Net sales from services 3,903 176,850 180,753 Net sales 366,552 314,451 681,003 Cost of product sales 136,925 87,206 224,131 Cost of service sales — 40,541 40,541 Cost of sales 136,925 127,747 264,672 Gross margin $ 229,627 $ 186,704 $ 416,331 Research and development $ 15,380 $ 107,815 $ 123,195 For the year ended December 31, 2019 Software and TASER Sensors Total Net sales from products $ 280,554 $ 118,920 $ 399,474 Net sales from services 1,107 130,279 131,386 Net sales 281,661 249,199 530,860 Cost of product sales 107,188 83,495 190,683 Cost of service sales — 32,891 32,891 Cost of sales 107,188 116,386 223,574 Gross margin $ 174,473 $ 132,813 $ 307,286 Research and development $ 14,469 $ 86,252 $ 100,721 |
Supplemental Disclosure to Cash
Supplemental Disclosure to Cash Flows | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure to Cash Flows | Note 20 - Supplemental Disclosure to Cash Flows Supplemental non-cash and other cash flow information were as follows as of and for the years ended December 31 (in thousands): 2021 2020 2019 Supplemental disclosures: Cash and cash equivalents $ 356,332 $ 155,440 $ 172,250 Restricted cash $ 106 $ 111 $ 105 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 356,438 $ 155,551 $ 172,355 Cash paid for income taxes, net of refunds $ 5,108 $ 10,893 $ 3,669 Non-cash transactions: Property and equipment purchases in accounts payable 1,994 878 834 Non-cash purchase consideration related to business combinations 3,920 — — Commission payable converted to stock-based award — — 314 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions in these consolidated financial statements include: ● product warranty reserves, ● inventory valuation, ● revenue recognition, ● reserve for expected credit losses ● valuation of goodwill, intangible and long-lived assets, ● valuation of strategic investments, ● recognition, measurement and valuation of current and deferred income taxes, ● stock-based compensation, and ● recognition and measurement of contingencies and accrued litigation expense. Actual results could differ materially from those estimates. |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments Cash, cash equivalents and investments include cash, money market funds, corporate bonds, municipal bonds, and agency bonds. We place our cash and cash equivalents with high quality financial institutions. Although we deposit our cash with multiple financial institutions, our deposits regularly exceed federally insured limits. Cash and cash equivalents include funds on hand and highly liquid investments purchased with initial maturity of three months or less. Short-term investments include securities with an expected maturity date within one year of the balance sheet date that do not meet the definition of a cash equivalent, and long-term investments are securities with an expected maturity date greater than one year. During the quarter ended December 31, 2021, upon the sale of a portion of our held-to-maturity security portfolio, we reclassified all remaining held-to-maturity securities to available-for-sale. We do not anticipate using the held-to-maturity classification in the future. The transfers to available-for-sale were made as a result of a change in management’s objectives with respect to its investment portfolio, which was implemented in the fourth quarter. We report available-for-sale investments at fair value as of each balance sheet date and record any unrealized gains or losses as a component of stockholders’ equity. The cost of securities sold is determined on a specific identification basis, and realized gains and losses are included in interest and other income, net within the consolidated statements of operations. When the fair value is below the amortized cost of a marketable security, an estimate of expected credit losses is made. The credit-related impairment amount is recognized in the consolidated statements of operations. Credit losses are recognized through the use of an allowance for expected credit losses account in the consolidated balance sheet and subsequent improvements in expected credit losses are recognized as a reversal of an amount in the allowance account. If we have the intent to sell the security or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, then the allowance for the credit loss is written-off and the excess of the amortized cost basis of the asset over its fair value is recorded in the consolidated statements of operations. We do not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases. There were no credit losses recorded on our investment portfolio during the year ended December 31, 2021. |
Restricted Cash | Restricted Cash Restricted cash balances of $0.1 million and $0.1 million as of December 31, 2021 and 2020, respectively, primarily relate to funds held in an international bank account for a country in which we are required to maintain a minimum balance to operate. Approximately half of the balance was included in prepaid expenses and other current assets on our consolidated balance sheets, with the remainder included in other assets. |
Inventory | Inventory Inventories are stated at the lower of cost, determined on the first-in, first-out (“FIFO”) basis, or net realizable value, net of an inventory valuation allowance. We use a standard cost methodology to determine the cost basis for our inventories. Costs include allocations for materials, labor, and overhead. All variances between actual costs and standard costs are apportioned to inventory and cost of product sales based upon inventory turnover. Additional provisions are made to reduce excess, obsolete or slow-moving inventories to their net realizable value. These provisions are based on management’s best estimate after considering historical demand, projected future demand, inventory purchase commitments, industry and market trends and conditions among other factors. We evaluate inventory costs for abnormal costs due to excess production capacity and treat such costs as period costs. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Additions and improvements are capitalized, while ordinary maintenance and repair expenditures are charged to expense as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Land is not depreciated. |
Software Development Costs | Software Development Costs We expense software development costs, including costs to develop software products or the software component of products and services to be marketed to external users, before technological feasibility of such products is reached. We have determined that technological feasibility is reached shortly before the release of those products and as a result, the development costs incurred after the establishment of technological feasibility and before the release of those products are not material. Software development costs also include costs to develop software programs to be used solely to meet our internal needs and applications. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the intended function. Additionally, we capitalize qualifying costs incurred for upgrades and enhancements to existing software that result in additional functionality. Costs related to preliminary project planning activities, post-implementation activities, maintenance and minor modifications are expensed as incurred. Internal-use software development costs are amortized on a straight line basis over the estimated useful life of the software. We evaluate the useful lives of these assets on an annual basis and test for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Valuation of Goodwill, Intangible and Long-lived Assets | Valuation of Goodwill, Intangible and Long-lived Assets Finite-lived intangible assets and other long-lived assets are amortized over their estimated useful lives. We do not amortize goodwill and intangible assets with indefinite useful lives; rather, such assets are required to be tested for impairment at least annually, or sooner whenever events or changes in circumstances indicate that the assets may be impaired. We perform our annual impairment assessment in the fourth quarter of each year. Management evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of long-lived assets and intangible assets may warrant revision or that the remaining balance of these assets, including intangible assets with indefinite lives, may not be recoverable. Circumstances that might indicate long-lived assets might not be recoverable could include, but are not limited to, a change in the product mix, a change in the way products and services are created, produced or delivered, or a significant change in the way our products are branded and marketed. When performing a review for recoverability, management estimates the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The amount of the impairment loss, if impairment exists, is calculated based on the excess of the carrying amounts of the assets over their estimated fair value computed using discounted cash flows. During the year ended December 31, 2021, we recorded an immaterial amount of impairment charges. During the year ended December 31, 2020, we abandoned certain planning and site development activities related to our planned new headquarters, resulting in an impairment charge of $0.7 million. Additionally, we recognized impairment charges totaling $0.5 million related to improvements and remodeling of certain of our offices. Both charges were included in sales, general and administrative expense in the accompanying consolidated statements of operations. During the year ended December 31, 2019, we abandoned certain capitalized software related to implementation work on an enterprise resource planning system conversion, resulting in an impairment charge of $1.3 million, and certain planning and site development activities related to our planned new headquarters, resulting in an impairment charge of $0.7 million, both of which were included in sales, general and administrative expense in the accompanying consolidated statements of operations and comprehensive income. |
Customer Deposits | Customer Deposits We require deposits in advance of shipment for certain customer sales orders. Additionally, customers may elect to make deposits with us related to contracts for our products and services that were not executed as of the end of a reporting period. Customer deposits are included in other current liabilities in the accompanying consolidated balance sheets. |
Revenue Recognition, Deferred Revenue and Accounts and Notes Receivable | Revenue Recognition, Deferred Revenue and Accounts and Notes Receivable We derive revenue from two primary sources: (1) the sale of physical products, including conducted energy devices ("CEDs"), Axon cameras, Axon Signal enabled devices, corresponding hardware extended warranties, and related accessories such as Axon docks, cartridges and batteries, among others, and (2) subscriptions to our Axon Evidence digital evidence management software-as-a-service ("SaaS") (including data storage fees and other ancillary services), which includes varying levels of support. To a lesser extent, we also recognize revenue from training, professional services and other software and SaaS services. We apply the five-step model outlined in Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts from Customers ("Topic 606"). For additional discussion of the adoption of Topic 606, see Note 2. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in Topic 606. For contracts with multiple performance obligations, we allocate the contract transaction price to each performance obligation using our estimate of the standalone selling price ("SSP") of each distinct good or service in the contract. Revenues are recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, each of which is generally distinct and accounted for as a separate performance obligation. Revenue is recognized net of allowances for returns. Performance obligations to deliver products, including CEDs, cameras and related accessories such as cartridges, batteries and docks, are generally satisfied at the point in time we ship the product, as this is when the customer obtains control of the asset under our standard terms and conditions. In certain contracts with non-standard terms and conditions, these performance obligations may not be satisfied until formal customer acceptance occurs. Performance obligations to fulfill service-type extended warranties and provide our SaaS offerings, including Axon Evidence and other cloud services, are generally satisfied over time as the customer receives and consumes the benefits of these services over the stated service period. Many of our products and services are sold on a standalone basis. We also bundle our hardware products and services together and sell them to our customers in single transactions, where the customer can make payments over a multi-year period. These sales may include payments for upfront hardware and services, as well as payments for hardware and services to be provided by us at a future date. Additionally, we offer customers the ability to purchase CED cartridges and certain services on an unlimited basis over the contractual term. Due to the unlimited nature of these arrangements whereby we are obligated to deliver unlimited products at the customer’s request, we account for these arrangements as stand-ready obligations, and recognize revenue ratably over the contract period. Cost of product sales is recognized when control of hardware products or accessories have transferred to the customer. We have elected to recognize shipping costs as an expense in cost of product sales when the control of hardware products or accessories have transferred to the customer. Sales tax collected on sales is netted against government remittances and thus, recorded on a net basis. The timing of revenue recognition may differ from the timing of invoicing to customers. We generally have an unconditional right to consideration when we invoice our customers and record a receivable. We record a contract asset when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue will be recognized subsequent to invoicing. Contract asset amounts that will be invoiced during the subsequent twelve month period from the balance sheet date are classified as current assets and the remaining portion is recorded within other assets on our consolidated balance sheets. Deferred revenue that will be recognized during the subsequent twelve month period from the balance sheet date is recorded as current deferred revenue and the remaining portion is recorded as long-term deferred revenue. Generally, customers are billed in annual installments. See Note 2 for further disclosures about our contract assets. Sales are typically made on credit, and we generally do not require collateral. We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable, notes receivable, and contract assets is developed using historical collection experience, published or estimated credit default rates for entities that represent our customer base, current and future economic and market conditions and a review of the current status of customers' trade accounts receivables. We review receivables for U.S. and international customers separately to better reflect different published credit default rates and economic and market conditions. Additionally, specific reserve amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. Accounts and notes receivable and contract assets are presented net of a reserve for expected credit losses, which totaled $3.3 million and $3.4 million as of December 31, 2021 and 2020, respectively. This reserve represents management’s best estimate and application of judgment considering a number of factors, including those listed above. In the event that actual uncollectible amounts differ from our estimates, additional expense could be necessary. |
Cost of Product and Service Sales | Cost of Product and Service Sales Cost of product sales represents manufacturing costs, consisting of materials, labor and overhead related to finished goods and components. Shipping costs incurred related to product delivery are also included in cost of products sold. Cost of service sales includes third-party cloud services, and software maintenance and support costs, including personnel costs, associated with supporting Evidence.com and other software related services. |
Advertising Costs | Advertising Costs We expense advertising costs in the period in which they are incurred. We incurred advertising costs of $2.6 million, $1.3 million and $0.9 million in the years ended December 31, 2021, 2020 and 2019, respectively. Advertising costs are included in sales, general and administrative expenses in the accompanying statements of operations. |
Standard Warranties | Standard Warranties We warranty our CEDs, Axon cameras and certain related accessories from manufacturing defects on a limited basis for a period of one year after purchase and, thereafter, will replace any defective unit for a fee. Estimated costs for the standard warranty are charged to cost of products sold when revenue is recorded for the related product. Future warranty costs are estimated on a quarterly basis based on historical data related to warranty claims and this rate is applied to current product sales. Historically, reserve amounts have been increased if management becomes aware of a component failure or other issue that could result in larger than anticipated warranty claims from customers. The warranty reserve is reviewed quarterly to verify that it sufficiently reflects the remaining warranty obligations based on the anticipated expenditures over the balance of the warranty obligation period, and adjustments are made when actual warranty claim experience differs from estimates. The warranty reserve is included in accrued liabilities on the accompanying consolidated balance sheets. Changes in our estimated warranty reserve were as follows (in thousands): Year Ended December 31, 2021 2020 Balance, beginning of period $ 769 $ 1,476 Utilization of reserve (873) (700) Warranty expense (benefit) 2,926 (7) Balance, end of period $ 2,822 $ 769 |
Research and Development Expenses | Research and Development Expenses We expense as incurred research and development costs that do not meet the qualifications to be capitalized. We incurred research and development expense of $194.0 million, $123.2 million and $100.7 million in 2021, 2020 and 2019, respectively. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced through the establishment of a valuation allowance if, based upon available evidence, it is determined that it is more likely than not that the deferred tax assets will not be realized. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. We also assess whether uncertain tax positions, as filed, could result in the recognition of a liability for possible interest and penalties. Our policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Refer to Note 12 for additional information regarding the change in unrecognized tax benefits. |
Concentration of Credit Risk and Major Customers / Suppliers | Concentration of Credit Risk and Major Customers / Suppliers Financial instruments that potentially subject us to concentrations of credit risk consist of accounts and notes receivable, contract assets, and cash. Historically, we have experienced an immaterial level of write-offs related to uncollectible accounts. We maintain the majority of our cash at three depository institutions. As of December 31, 2021, the aggregate balances in such accounts were $347.3 million. Our balances with these three institutions regularly exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits for domestic deposits and various deposit insurance programs covering our deposits in Australia, Canada, Finland, Germany, Hong Kong, India, Italy, the Netherlands, Spain, the United Kingdom, and Vietnam. To manage the related credit exposure, management continually monitors the creditworthiness of the financial institutions where we have deposits. No customer represented more than 10% of total net sales for the years ended December 31, 2021, 2020 or 2019. At December 31, 2021, and 2020, no customer represented more than 10% of the aggregate balance of accounts and notes receivable and contract assets. We currently purchase both off the shelf and custom components, including, but not limited to, finished circuit boards, injection-molded plastic components, small machined parts, custom cartridge components, electronic components, and off the shelf sub-assemblies from suppliers located in the U.S., Canada, China, Mexico, Republic of Korea, Sri Lanka, Taiwan, and Vietnam. We may source from other countries as well. Although we currently obtain many of these components from single source suppliers, we own the injection molded component tooling, most of the designs, and test fixtures used in their production for all custom components. As a result, we believe we could obtain alternative suppliers in most cases. Although we have experienced supply chain disruptions relating to materials and port constraints, we have remained focused on closely managing our supply chain. We continue to bolster our strategic relationships in our supply chain, identifying secondary/alternate sourcing, adjusting build plans accordingly, and building in logistic modes in support of our increasing demand while working to minimize disruption to customers. We acquire most of our components on a purchase order basis and do not currently have significant long-term purchase contracts with most component suppliers. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We use the fair value framework that prioritizes the inputs to valuation techniques for measuring financial assets and liabilities measured on a recurring basis and for non-financial assets and liabilities when these items are re-measured. Fair value is considered to be the exchange price in an orderly transaction between market participants, to sell an asset or transfer a liability at the measurement date. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are: ● Level 1 – Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured. ● Level 2 – Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level 2 valuation techniques. ● Level 3 – Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect our own assumptions about inputs that market participants would use in pricing an asset or liability. We have cash equivalents and investments, which at December 31, 2021 and 2020, were comprised of money market funds, agency bonds, certificates of deposit, commercial paper, corporate bonds, municipal bonds, U.S. Treasury bills, U.S. Treasury repurchase agreements, and U.S. Treasury inflation-protected securities. See additional disclosure regarding the fair value of our cash equivalents and investments in Note 3. Included in the balance of other assets as of December 31, 2021 and 2020 was $5.3 million and $4.7 million, respectively, related to corporate-owned life insurance policies which are used to fund our deferred compensation plan. We determine the fair value of our insurance contracts by obtaining the cash surrender value of the contracts from the issuer, a Level 2 valuation technique. We have investments in marketable securities, for which changes in fair value are recorded in the consolidated statement of operations as unrealized gain or (loss) on marketable securities, which is included in interest and other income, net. We have strategic investments in four unconsolidated affiliates. The estimated fair value of the investments was determined based on Level 3 inputs. As of December 31, 2021, management estimated that the fair value of the investments equaled the carrying value. Our financial instruments also include accounts and notes receivable, accounts payable and accrued liabilities. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet. |
Segment and Geographic Information | Segment and Geographic Information Our operations are comprised of two reportable segments: the manufacture and sale of CEDs, batteries, accessories, extended warranties and other products and services (the “TASER” segment); and the development, manufacture and sale of software and sensors, which includes the sale of devices, wearables, applications, cloud and mobile products, and services (collectively, the "Software and Sensors" segment). Reportable segments are determined based on discrete financial information reviewed by our Chief Executive Officer who is our chief operating decision maker ("CODM"). We organize and review operations based on products and services, and currently there are no operating segments that are aggregated. We perform an analysis of our reportable segments at least annually. Additional information related to our business segments is summarized in Note 19. For a summary of net sales by geographic area, see Note 2. The majority of our sales to international customers are transacted in foreign currencies |
Stock-Based Compensation | Stock-Based Compensation We recognize expense related to stock-based compensation transactions in which we receive services in exchange for equity instruments of the Company. Stock-based compensation expense for restricted stock units ("RSUs") is measured based on the closing fair market value of our common stock on the date of grant. We recognize stock-based compensation expense over the award’s requisite service period on a straight-line basis for time-based RSUs. For performance-based RSUs, stock-based compensation expense is recognized over the requisite service period, which is defined as the longest explicit, implicit or derived service period based on management’s estimate of the probability of the performance criteria being satisfied, adjusted at each balance sheet date. For performance-based options with a vesting schedule based entirely on the attainment of both performance and market conditions, stock-based compensation expense is recognized over the longer of the expected achievement period of the performance and market conditions, beginning at the point in time that the relevant performance condition is considered probable of achievement. For both time-based and performance-based RSUs, we recognize forfeitures as they occur as a reduction to stock-based compensation expense and to additional paid-in-capital. eXponential Stock Performance Plan On February 12, 2019, our shareholders approved the 2019 Stock Incentive Plan (the “2019 Plan”), which was adopted by the Board of Directors to reserve a sufficient number of shares to facilitate our eXponential Stock Performance Plan (“XSPP”) and grants of eXponential Stock Units (“XSUs”) under the plan. The XSUs are grants of restricted stock units, each with a term of approximately nine years Stock-based compensation expense associated with XSU awards is recognized over the longest explicit, implicit or derived service period for each pair of market capitalization and operational goals, beginning at the point in time when the relevant operational goal is considered probable of being met. The market capitalization goal period and the valuation of each tranche are determined using a Monte Carlo simulation, which is also used as the basis for determining the expected achievement period of the market capitalization goal. The probability of meeting an operational goal and the expected achievement point in time for meeting a probable operational goal are based on a subjective assessment of our forward-looking financial projections, taking into consideration statistical analysis. Even though no tranches of the XSU awards vest unless a market capitalization and a matching operational goal are both achieved, stock-based compensation expense is recognized when an operational goal is considered probable of achievement regardless of whether a market capitalization goal is actually achieved. Given the complexity of the awards, we utilized Monte Carlo simulations to simulate a range of possible future market capitalizations for the Company over the term of the awards at each of the respective grant dates. The average of all iterations of the simulation was used as the basis for the valuation and market capitalization goal derived service period for each tranche. Additionally, we applied an illiquidity discount of between 10.5% and 17.6% to the valuation of XSUs because the awards specify a post-vest holding period of 2.5 years for the acquired shares that vest. Certain of the XSU awards specify a post-vest holding period of the longer of 2.5 years or until the next tranche vests. The illiquidity discounts were estimated using the Finnerty model and reduced by the impact of expected payroll and income taxes due upon vesting of the awards, as the related proportion of shares are expected to be sold to satisfy such obligations. We measured the grant date fair value of the XSU awards with the following assumptions: risk-free interest rate of between 0.85% and 1.24%, expected term of between 6.5 and 7.0 years, expected volatility of between 47.28% and 55.79%, and dividend yield of 0.00%. Stock Options On May 24, 2018 (the “CEO Grant Date”), our stockholders approved the Board of Directors’ grant of 6,365,856 stock option awards to Patrick W. Smith, our CEO (the “CEO Performance Award”). The CEO Performance Award consists of 12 vesting tranches with a vesting schedule based entirely on the attainment of both operational goals (performance conditions) and market capitalization goals (market conditions), assuming continued employment either as the CEO or as both Executive Chairman and Chief Product Officer and service through each vesting date. Stock-based compensation expense associated with the CEO Performance Award is recognized over the requisite service period, which is defined as the longer of the expected achievement period for each pair of market capitalization and operational goals, beginning at the point in time when the relevant operational goal is considered probable of being met. No options were awarded during the years ended December 31, 2021, 2020, or 2019. |
Income (Loss) per Common Share | Income (Loss) per Common Share Basic income or loss per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods presented. Diluted income (loss) per share reflects the potential dilution from outstanding stock options and unvested restricted stock units. The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): For the Year Ended December 31, 2021 2020 2019 Numerator for basic and diluted earnings per share: Net income (loss) $ (60,018) $ (1,724) $ 882 Denominator: Weighted average shares outstanding-basic 66,191 61,782 59,190 Dilutive effect of stock-based awards — — 828 Diluted weighted average shares outstanding 66,191 61,782 60,018 Anti-dilutive stock-based awards excluded 7,690 12,150 12,627 Net income (loss) per share: Basic $ (0.91) $ (0.03) $ 0.01 Diluted $ (0.91) $ (0.03) $ 0.01 |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes. Adoption of this ASU on January 1, 2021 did not have a material impact on our consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (a Consensus of the Emerging Issues Task Force). The guidance clarifies the interaction between ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, this new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. Adoption of this ASU on January 1, 2021 did not have a material impact on our consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The guidance improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and certain inconsistencies in application. Under current GAAP, an acquirer generally recognizes contract assets acquired and liabilities assumed in a business combination at fair value on the acquisition date. The amendments in this update require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if it had originated the contracts. Early adoption of this ASU effective October 1, 2021 did not have a material impact on our consolidated financial statements. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain prior year amounts, including strategic investments, have been reclassified for consistency with the current year presentation. These reclassifications are not material and had no effect on the reported results of operations. |
Risks and Uncertainties | Risks and Uncertainties COVID-19 related risks have had and continue to have an impact on our operations. If our backup and mitigation plans are not sufficient to minimize business disruption, our financial results could be adversely affected. We are continuously monitoring our operations and intend to take appropriate actions to mitigate the risks arising from the COVID-19 pandemic, but there can be no assurances that we will be successful in doing so. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of changes in our estimated warranty reserve | Changes in our estimated warranty reserve were as follows (in thousands): Year Ended December 31, 2021 2020 Balance, beginning of period $ 769 $ 1,476 Utilization of reserve (873) (700) Warranty expense (benefit) 2,926 (7) Balance, end of period $ 2,822 $ 769 |
Schedule of weighted average number of shares outstanding and earnings per share | The calculation of the weighted average number of shares outstanding and earnings per share are as follows (in thousands except per share data): For the Year Ended December 31, 2021 2020 2019 Numerator for basic and diluted earnings per share: Net income (loss) $ (60,018) $ (1,724) $ 882 Denominator: Weighted average shares outstanding-basic 66,191 61,782 59,190 Dilutive effect of stock-based awards — — 828 Diluted weighted average shares outstanding 66,191 61,782 60,018 Anti-dilutive stock-based awards excluded 7,690 12,150 12,627 Net income (loss) per share: Basic $ (0.91) $ (0.03) $ 0.01 Diluted $ (0.91) $ (0.03) $ 0.01 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenues | |
Summary of Revenue by Product and Service Offering and Geography | The following table presents our revenues by primary product and service offering (in thousands): Year Ended December 31, 2021 Year Ended December 31, 2020 Software and Software and TASER Sensors Total TASER Sensors Total TASER 7 $ 135,906 $ — $ 135,906 $ 107,506 $ — $ 107,506 TASER X26P 40,629 — 40,629 41,724 — 41,724 TASER X2 58,081 — 58,081 60,107 — 60,107 TASER Consumer devices 7,132 — 7,132 9,407 — 9,407 Cartridges 152,842 — 152,842 115,193 — 115,193 Axon Body — 75,484 75,484 — 57,150 57,150 Axon Flex — 4,155 4,155 — 4,082 4,082 Axon Fleet — 24,319 24,319 — 20,108 20,108 Axon Dock — 24,441 24,441 — 19,723 19,723 Axon Evidence and cloud services 9,159 246,005 255,164 2,935 176,797 179,732 Extended warranties 24,125 33,686 57,811 20,754 24,408 45,162 Other 9,053 18,364 27,417 8,926 12,183 21,109 Total $ 436,927 $ 426,454 $ 863,381 $ 366,552 $ 314,451 $ 681,003 Year Ended December 31, 2019 Software and TASER Sensors Total TASER 7 $ 56,652 $ — $ 56,652 TASER X26P 52,524 — 52,524 TASER X2 55,920 — 55,920 TASER Consumer devices 4,089 — 4,089 Cartridges 85,987 — 85,987 Axon Body — 44,039 44,039 Axon Flex — 5,928 5,928 Axon Fleet — 16,182 16,182 Axon Dock — 20,449 20,449 Axon Evidence and cloud services 704 130,265 130,969 Extended warranties 18,074 19,188 37,262 Other 7,711 13,148 20,859 Total $ 281,661 $ 249,199 $ 530,860 The following table presents our revenues disaggregated by geography (in thousands): Year Ended December 31, 2021 2020 2019 United States $ 686,914 80 % $ 535,079 79 % $ 446,100 84 % Other Countries 176,467 20 145,924 21 84,760 16 Total $ 863,381 100.0 % $ 681,003 100.0 % $ 530,860 100.0 % |
Contract with Customer, Assets and Liabilities | The following table presents our contract assets, contract liabilities and certain information related to these balances as of and for the year ended December 31, 2021 (in thousands): Year Ended December 31, 2021 2020 2019 Contract assets, net $ 210,174 $ 84,044 $ 47,746 Contract liabilities (deferred revenue) 451,312 275,181 205,800 Revenue recognized in the period from: Amounts included in contract liabilities at the beginning of the period 177,812 135,513 101,768 Contract liabilities (deferred revenue) consisted of the following (in thousands): December 31, 2021 December 31, 2020 Current Long-Term Total Current Long-Term Total Warranty: TASER $ 21,257 $ 4,766 $ 26,023 $ 11,635 $ 16,953 $ 28,588 Software and Sensors 23,175 18,137 41,312 13,926 5,025 18,951 44,432 22,903 67,335 25,561 21,978 47,539 Hardware: TASER 12,944 28,727 41,671 16,314 14,304 30,618 Software and Sensors 34,862 81,223 116,085 25,181 50,981 76,162 47,806 109,950 157,756 41,495 65,285 106,780 Services: TASER 2,701 3,482 6,183 996 1,554 2,550 Software and Sensors 170,652 49,386 220,038 95,907 22,405 118,312 173,353 52,868 226,221 96,903 23,959 120,862 Total $ 265,591 $ 185,721 $ 451,312 $ 163,959 $ 111,222 $ 275,181 December 31, 2021 December 31, 2020 Current Long-Term Total Current Long-Term Total TASER $ 36,902 $ 36,975 $ 73,877 $ 28,945 $ 32,811 $ 61,756 Software and Sensors 228,689 148,746 377,435 135,014 78,411 213,425 Total $ 265,591 $ 185,721 $ 451,312 $ 163,959 $ 111,222 $ 275,181 |
Capitalized Contract Cost | As of December 31, 2021, our assets for costs to obtain contracts were as follows (in thousands): December 31, 2021 December 31, 2020 Current deferred commissions (1) $ 19,962 $ 13,316 Deferred commissions, net of current portion (2) 54,028 32,455 $ 73,990 $ 45,771 (1) Current deferred commissions are included within prepaid expenses and other current assets on the accompanying consolidated balance sheet. (2) Deferred commissions, net of current portion, are included in other assets on the accompanying consolidated balance sheet. |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash, Cash Equivalents and Investments | |
Summary of Cash, Cash Equivalents, Marketable Securities, and Available-for-Sale Investments | The following table summarizes our cash, cash equivalents, marketable securities, and available-for-sale investments at December 31, 2021 (in thousands): As of December 31, 2021 Gross Gross Cash and Amortized Unrealized Unrealized Cash Marketable Short-Term Long-Term Cost Gains Losses Fair Value Equivalents Securities Investments Investments Cash $ 353,488 $ — $ — $ 353,488 $ 353,488 $ — $ — $ — Level 1: Money market funds 2,844 — — 2,844 2,844 — — — Agency bonds 10,700 4 — 10,704 — — 10,704 — Marketable securities 90,000 — (17,820) 72,180 — 72,180 — — Subtotal 103,544 4 (17,820) 85,728 2,844 72,180 10,704 — Level 2: State and municipal obligations 2,570 — (5) 2,565 — — 1,400 1,165 Corporate bonds 32,748 1 (276) 32,473 — — 2,406 30,067 Subtotal 35,318 1 (281) 35,038 — — 3,806 31,232 Total $ 492,350 $ 5 $ (18,101) $ 474,254 $ 356,332 $ 72,180 $ 14,510 $ 31,232 The following table summarizes our cash, cash equivalents, and held-to-maturity investments at December 31, 2020 (in thousands): As of December 31, 2020 Gross Gross Cash and Amortized Unrealized Unrealized Cash Short-Term Long-Term Cost Gains Losses Fair Value Equivalents Investments Investments Cash $ 116,107 $ — $ — $ 116,107 $ 116,107 $ — $ — Level 1: Money market funds 23,611 — — 23,611 23,611 — — Agency bonds 63,794 122 — 63,916 — 23,794 40,000 Treasury bills 96,384 6 — 96,390 — 96,384 — Subtotal 183,789 128 — 183,917 23,611 120,178 40,000 Level 2: State and municipal obligations 77,130 25 (28) 77,127 — 66,519 10,611 Certificates of deposit 500 — — 500 — 500 — Corporate bonds 212,825 232 (100) 212,957 2,525 170,205 40,095 U.S. Treasury repurchase agreements 13,200 — — 13,200 13,200 — — Treasury inflation-protected securities 3,291 16 — 3,307 — 3,291 — Commercial paper 45,974 — — 45,974 — 45,974 — Subtotal 352,920 273 (128) 353,065 15,725 286,489 50,706 Total $ 652,816 $ 401 $ (128) $ 653,089 155,443 406,667 90,706 Expected credit loss reserve (3) (142) (25) Total, net of reserve for expected credit losses $ 155,440 $ 406,525 $ 90,681 |
Expected Credit Losses (Tables)
Expected Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Expected Credit Losses | |
Schedule of roll-forward of allowance for credit losses | The following table provides a roll-forward of the allowance for expected credit losses that is deducted from the amortized cost basis of accounts receivable, notes receivable, and contract assets to present the net amount expected to be collected (in thousands): Year Ended December 31, 2021 December 31, 2020 United States Other countries Total United States Other countries Total Balance, beginning of period $ 2,902 $ 474 $ 3,376 $ 1,395 $ 172 $ 1,567 Adoption of Topic 326, cumulative-effect adjustment to retained earnings — — — 767 1 768 Provision for (recovery of) expected credit losses 245 (291) (46) 824 391 1,215 Amounts written off charged against the allowance (54) — (54) (84) (33) (117) Other, including dispositions and foreign currency translation 78 (5) 73 — (57) (57) Balance, end of period $ 3,171 $ 178 $ 3,349 $ 2,902 $ 474 $ 3,376 |
Schedule of allowance for expected credit losses for each type of customer receivable | December 31, December 31, 2021 2020 Accounts receivable and notes receivable, current $ 2,203 $ 2,105 Contract assets, net 1,010 794 Long-term notes receivable, net of current portion 136 477 Total allowance for expected credit losses on customer receivables $ 3,349 $ 3,376 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following at December 31, 2021 and December 31, 2020 (in thousands): December 31, 2021 December 31, 2020 Raw materials $ 38,267 $ 39,194 Finished goods 70,421 50,764 Total inventory $ 108,688 $ 89,958 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following at December 31 (in thousands): Estimated Useful Life December 31, 2021 December 31, 2020 Land N/A $ 54,868 $ 57,052 Building and leasehold improvements 3 - 39 years 25,712 20,912 Production equipment 3 - 5 years 54,090 37,539 Computers, equipment and software 3 - 5 years 15,343 10,889 Furniture and office equipment 3 - 5 years 6,838 6,954 Vehicles 5 years 2,932 1,980 Website development costs 3 years 204 204 Capitalized internal-use software development costs 3 5 years 11,996 3,670 Construction-in-process N/A 25,258 13,479 Total cost 197,241 152,679 Less: Accumulated depreciation (58,784) (47,185) Property and equipment, net $ 138,457 $ 105,494 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the year ended December 31, 2021 were as follows (in thousands): Software and TASER Sensors Total Balance, December 31, 2020 $ 1,450 $ 23,755 $ 25,205 Goodwill acquired — 18,495 18,495 Foreign currency translation adjustments (54) (54) (108) Balance, December 31, 2021 $ 1,396 $ 42,196 $ 43,592 |
Intangible Assets Other than goodwill | Intangible assets (other than goodwill) consisted of the following (in thousands): December 31, 2021 December 31, 2020 Gross Net Gross Net Useful Carrying Accumulated Carrying Carrying Accumulated Carrying Life Amount Amortization Amount Amount Amortization Amount Amortizable (definite-lived) intangible assets: Domain names 5 ‑ 10 years $ 3,043 $ (1,518) $ 1,525 $ 3,036 $ (1,339) $ 1,697 Issued patents 5 ‑ 25 years 3,061 (1,457) 1,604 3,232 (1,567) 1,665 Issued trademarks 3 ‑ 15 years 1,130 (643) 487 1,002 (227) 775 Customer relationships 4 ‑ 8 years 4,985 (2,439) 2,546 3,780 (1,955) 1,825 Non-compete agreements 3 ‑ 4 years 454 (444) 10 460 (429) 31 Developed technology 3 ‑ 5 years 18,060 (10,465) 7,595 10,660 (8,713) 1,947 Total amortizable 30,733 (16,966) 13,767 22,170 (14,230) 7,940 Non-amortizable (indefinite-lived) intangible assets: TASER trademark 900 — 900 900 — 900 My90 trademark 168 — 168 — — — Patents and trademarks pending 635 — 635 608 — 608 Total non-amortizable 1,703 — 1,703 1,508 — 1,508 Total intangible assets $ 32,436 $ (16,966) $ 15,470 $ 23,678 $ (14,230) $ 9,448 |
Estimated Amortization Expense of Intangible Assets | Estimated amortization for intangible assets with definitive lives for the next five years ended December 31, and thereafter, is as follows (in thousands): 2022 $ 3,908 2023 3,620 2024 3,546 2025 824 2026 682 Thereafter 1,187 Total $ 13,767 |
Strategic Investments (Tables)
Strategic Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Roll-Forward of Strategic Investments | The following tables provide a roll-forward of the balance of strategic investments (in thousands): Year Ended December 31, 2021 Strategic investments Warrants for strategic investment Total Balance, beginning of period $ 9,500 $ 2,211 $ 11,711 Investments 45,500 — 45,500 Observable price changes 40,321 534 40,855 Sales (14,546) — (14,546) Balance, end of period $ 80,775 $ 2,745 $ 83,520 Inception to date Strategic investments Warrants for strategic investment Total Investments $ 52,568 $ 2,588 $ 55,156 Observable price changes 42,753 157 42,910 Sales (14,546) — (14,546) Balance, end of period $ 80,775 $ 2,745 $ 83,520 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Long-Term Assets | Other long-term assets consisted of the following at December 31 (in thousands): December 31, 2021 December 31, 2020 Cash surrender value of corporate-owned life insurance policies $ 5,276 $ 4,654 Deferred commissions (1) 54,028 32,455 Restricted cash 57 62 Operating lease assets 23,270 22,308 Deferred implementation costs (2) 3,915 — Prepaid expenses, deposits and other (3) 11,701 8,727 Total other long-term assets $ 98,247 $ 68,206 (1) Represents the incremental costs of obtaining contracts with customers, which consist primarily of sales commissions. These costs are ascribed to or allocated to the underlying performance obligations in the contracts and amortized consistent with the recognition timing of the revenue for the underlying performance obligations. See Note 2 “Costs to Obtain a Contract”. (2) During the year ended December 31, 2021, we completed an implementation of several software-as-a-service applications supporting our internal operations. Following the implementation, we placed $4.3 million of deferred implementation costs assets related to these applications into service. (3) During the year ended December 31, 2021, we recorded a government grant receivable totaling $0.9 million in connection with the Arizona Qualified Facility Tax Credit (“QFTC”). Because U.S. GAAP does not contain authoritative accounting standards on this topic, we determined it most appropriate to account for the QFTC by analogy to International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance. Under IAS 20, the grant is initially recorded as other assets on the balance sheet and other income is recognized on a systematic basis over the periods in which the qualifying expenses are incurred when we determine that grant assets are no longer contingent. As of December 31, 2021, approximately $0.5 million was recorded in other assets with the remainder recorded in prepaid expenses and other current assets on our consolidated balance sheets. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued liabilities | Accrued liabilities consisted of the following at December 31 (in thousands): December 31, 2021 December 31, 2020 Accrued salaries, benefits and bonus $ 62,425 $ 36,892 Accrued professional, consulting and lobbying fees 7,152 3,055 Accrued warranty expense 2,822 769 Accrued income and other taxes 3,736 3,848 Accrued inventory in transit 9,945 4,597 Other accrued expenses 17,627 10,682 Accrued liabilities $ 103,707 $ 59,843 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Income (loss) before provision (benefit) for income taxes included the following components for the years ended December 31 (in thousands): 2021 2020 2019 United States $ (146,995) $ (11,529) $ (1,449) Foreign 5,620 5,238 3,519 Total $ (141,375) $ (6,291) $ 2,070 |
Significant Components of the Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes are as follows for the years ended December 31 (in thousands): 2021 2020 2019 Current: Federal $ (331) $ 5,277 $ 4,247 State 85 3,886 2,414 Foreign (60) 1,943 1,533 Total current (306) 11,106 8,194 Deferred: Federal (65,557) (10,175) (6,060) State (15,266) (3,111) (1,665) Foreign 478 (3,131) (264) Total deferred (80,345) (16,417) (7,989) Tax impact of unrecorded tax benefits liability (706) 744 983 Provision (benefit) for income taxes $ (81,357) $ (4,567) $ 1,188 |
Reconciliation of the Company's Effective Income Tax Rate to the Federal Statutory Rate | A reconciliation of our effective income tax rate to the federal statutory rate follows for the years ended December 31 (in thousands): 2021 2020 2019 Federal income tax at the statutory rate $ (29,691) $ (1,321) $ 435 State income taxes, net of federal benefit (12,717) 935 526 Difference between statutory and foreign tax rates (155) (86) 43 Other permanent differences (1) 1,842 794 1,356 Foreign derived intangible income deduction — (902) (217) Executive compensation limitation 180,509 15,463 7,596 Research and development (34,376) (10,246) (4,911) Return to provision adjustment 204 (1,078) (9) Change in liability for unrecognized tax benefits 10,188 987 1,191 Excess stock-based compensation benefit (205,483) (9,002) (4,999) Change in valuation allowance 8,961 163 368 Tax effects of intercompany transactions 96 (389) 16 Other (735) 115 (207) Provision for income taxes (Income tax benefit) $ (81,357) $ (4,567) $ 1,188 Effective tax rate 57.5 % 72.6 % 57.4 % (1) Other permanent differences include certain expenses that are not deductible for tax purposes including meals and entertainment, lobbying fees, and taxable income as a result of global intangible low-tax income ("GILTI"). |
Components of Deferred Income Tax Assets and Liabilities | Significant components of our deferred income tax assets and liabilities are as follows at December 31 (in thousands): 2021 2020 Deferred income tax assets: Net operating loss carryforward $ 68,353 $ 1,834 Deferred revenue 27,031 21,055 Deferred compensation 1,414 1,175 Lease liability 5,886 5,730 Inventory reserve 684 511 Stock-based compensation 10,913 18,890 Amortization 2,672 2,436 Research and development tax credit carryforward 29,249 6,654 Reserves, accruals, and other 14,717 7,274 Total deferred income tax assets 160,919 65,559 Deferred income tax liabilities: Contract asset (1,104) (1,150) Right of use asset (5,008) (5,237) Depreciation (8,938) (5,363) Strategic investments (2,653) (321) Prepaid expenses (594) (874) Other (72) (185) Total deferred income tax liabilities (18,369) (13,130) Net deferred income tax assets before valuation allowance 142,550 52,429 Valuation allowance (16,168) (7,308) Net deferred income tax assets $ 126,382 $ 45,121 |
Roll Forward of Liability for Unrecognized Tax Benefits Exclusive of Accrued Interest | The following table presents a roll forward of our liability for unrecognized tax benefits, exclusive of accrued interest, as of December 31 (in thousands): 2021 2020 2019 Balance, beginning of period $ 7,657 $ 6,861 $ 6,058 Increase (decrease) in previous year tax positions 22 (34) (615) Increase in current year tax positions 11,416 950 1,749 Decrease due to lapse of statutes of limitations (846) (120) (331) Balance, end of period $ 18,249 $ 7,657 $ 6,861 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity Compensation Goals | Revenue Goal (1) (in thousands) Achievement Status Adjusted EBITDA (in thousands) Achievement Status Goal #1, $710,058 Achieved Goal #1 $125,000 Achieved Goal #2, $860,058 Achieved Goal #2, $155,000 Achieved Goal #3, $1,010,058 Probable Goal #3 $175,000 Achieved Goal #4, $1,210,058 Probable Goal #4, $190,000 Achieved Goal #5, $1,410,058 Not Applicable Goal #5 $200,000 Achieved Goal #6, $1,610,058 Not Applicable Goal #6, $210,000 Achieved Goal #7, $1,810,058 Not Applicable Goal #7, $220,000 Achieved Goal #8, $2,010,058 Not Applicable Goal #8 $230,000 Achieved (1) In connection with the business acquisition that was completed during the three months ended June 30, 2018, the revenue goals were adjusted for the acquiree’s Target Revenue, as defined in the CEO Performance Award agreement. |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity for the years ended December 31 (number of units and aggregate intrinsic value in thousands): 2021 2020 2019 Weighted Weighted Weighted Number Average Number Average Number Average of Grant-Date of Grant-Date of Grant-Date Units Fair Value Units Fair Value Units Fair Value Units outstanding, beginning of year 1,107 $ 76.10 1,249 $ 45.47 1,244 $ 28.52 Granted 686 165.67 577 100.76 718 59.09 Released (554) 66.23 (598) 40.68 (547) 27.38 Forfeited (124) 100.64 (121) 52.40 (166) 36.91 Units outstanding, end of year 1,115 133.40 1,107 76.10 1,249 45.47 Aggregate intrinsic value at year end $ 174,999 |
Summary of Performance Stock Unit Activity | The following table summarizes PSU activity, inclusive of XSUs, for the years ended December 31 (number of units and aggregate intrinsic value in thousands): 2021 2020 2019 Weighted Weighted Weighted Number Average Number Average Number Average of Grant-Date of Grant-Date of Grant-Date Units Fair Value Units Fair Value Units Fair Value Units outstanding, beginning of year 5,618 $ 35.71 6,033 $ 34.47 411 $ 27.82 Granted 309 77.53 417 58.11 6,041 34.61 Released (4,345) 37.16 (184) 27.79 (103) 17.14 Forfeited (83) 40.91 (648) 40.83 (316) 33.99 Units outstanding, end of year 1,499 39.86 5,618 35.71 6,033 34.47 Aggregate intrinsic value at year end $ 235,325 |
Summary of the Company's Stock Options Activity | The following table summarizes stock option activity for the years ended December 31 (number of options in thousands): 2021 2020 2019 Weighted Weighted Weighted Number Average Number Average Number Average of Exercise of Exercise of Exercise Options Price Options Price Options Price Options outstanding, beginning of year 6,366 $ 28.58 6,431 $ 28.34 6,458 $ 28.24 Granted — — — — — — Exercised (3,928) 28.58 (65) 4.52 (27) 4.27 Expired / terminated — — — — — — Options outstanding, end of year 2,438 28.58 6,366 28.58 6,431 28.34 Options exercisable, end of year 1,377 28.58 530 28.58 65 4.52 |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options that were fully vested or expected to vest as of December 31, 2021 (number of options in thousands): Options Outstanding Options Exercisable Weighted Weighted Weighted Average Weighted Average Number of Average Remaining Number of Average Remaining Range of Options Exercise Contractual Options Exercise Contractual Exercise Price Outstanding Price Life (Years) Exercisable Price Life (Years) $28.58 1,377 $ 28.58 6.15 1,377 $ 28.58 6.15 |
Reported Share-Based Compensation | We account for stock-based compensation using the fair-value method. Reported stock-based compensation expense was classified as follows for the years ended December 31 (in thousands): 2021 2020 2019 Cost of product and service sales $ 5,844 $ 3,464 $ 1,565 Sales, general and administrative expenses 238,813 103,860 59,342 Research and development expenses 58,674 26,248 17,588 Total stock-based compensation expense $ 303,331 $ 133,572 $ 78,495 Income tax benefit $ 30,586 $ 29,329 $ 11,457 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | |
Summary of changes in accumulated other comprehensive income (loss), net of tax | The following table reflects the changes in accumulated other comprehensive income (loss), net of tax (in thousands): Unrealized Gains (Losses) on Available-for-Sale Foreign Currency Investments Translation Total Balance, December 31, 2019 $ — $ (1,096) $ (1,096) Other comprehensive income — 1,237 1,237 Balance, December 31, 2020 $ — $ 141 $ 141 Other comprehensive loss (207) (1,251) (1,458) Balance, December 31, 2021 $ (207) $ (1,110) $ (1,317) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Balance Sheet Disclosures | Leases (in thousands) Classification December 31, 2021 December 31, 2020 Assets Operating lease assets Other assets $ 23,270 $ 22,308 Liabilities Current Operating Other current liabilities $ 6,540 $ 5,431 Noncurrent Operating Other long-term liabilities 20,439 18,952 Total lease liabilities $ 26,979 $ 24,383 |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Twelve Months Ended Twelve Months Ended Classification December 31, 2021 December 31, 2020 Operating lease expense (1) Sales, general and administrative (2) $ 7,495 $ 6,757 Sublease income Interest and other income, net — (55) Net lease expense $ 7,495 $ 6,702 (1) Includes short-term leases, which are immaterial. (2) An immaterial portion of operating lease expense is included within research and development expenses and cost of sales. Other information related to leases was as follows (in thousands, except lease term and discount rate): Twelve Months Ended Twelve Months Ended December 31, 2021 December 31, 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 7,506 $ 4,666 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 6,726 17,390 Weighted average remaining lease term: Operating leases 4.2 years 4.4 years Weighted average discount rate: Operating leases 2.73 % 3.36 % |
Schedule of Future Minimum Rental Payments For Operating Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows (in thousands): Operating 2022 7,782 2023 7,397 2024 5,961 2025 5,915 2026 2,176 Thereafter 214 Total minimum lease payments 29,445 Less: Amount representing interest (2,466) Present value of lease payments $ 26,979 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Operational Information Relative to the Company's Reportable Segments | Information relative to our reportable segments was as follows (in thousands): For the year ended December 31, 2021 Software and TASER Sensors Total Net sales from products $ 426,916 $ 181,609 $ 608,525 Net sales from services 10,011 244,845 254,856 Net sales 436,927 426,454 863,381 Cost of product sales 149,739 110,359 260,098 Cost of service sales 145 62,228 62,373 Cost of sales 149,884 172,587 322,471 Gross margin $ 287,043 $ 253,867 $ 540,910 Research and development $ 46,136 $ 147,890 $ 194,026 For the year ended December 31, 2020 Software and TASER Sensors Total Net sales from products $ 362,649 $ 137,601 $ 500,250 Net sales from services 3,903 176,850 180,753 Net sales 366,552 314,451 681,003 Cost of product sales 136,925 87,206 224,131 Cost of service sales — 40,541 40,541 Cost of sales 136,925 127,747 264,672 Gross margin $ 229,627 $ 186,704 $ 416,331 Research and development $ 15,380 $ 107,815 $ 123,195 For the year ended December 31, 2019 Software and TASER Sensors Total Net sales from products $ 280,554 $ 118,920 $ 399,474 Net sales from services 1,107 130,279 131,386 Net sales 281,661 249,199 530,860 Cost of product sales 107,188 83,495 190,683 Cost of service sales — 32,891 32,891 Cost of sales 107,188 116,386 223,574 Gross margin $ 174,473 $ 132,813 $ 307,286 Research and development $ 14,469 $ 86,252 $ 100,721 |
Supplemental Disclosure to Ca_2
Supplemental Disclosure to Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Non-Cash and Other Cash Flow Information | Supplemental non-cash and other cash flow information were as follows as of and for the years ended December 31 (in thousands): 2021 2020 2019 Supplemental disclosures: Cash and cash equivalents $ 356,332 $ 155,440 $ 172,250 Restricted cash $ 106 $ 111 $ 105 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 356,438 $ 155,551 $ 172,355 Cash paid for income taxes, net of refunds $ 5,108 $ 10,893 $ 3,669 Non-cash transactions: Property and equipment purchases in accounts payable 1,994 878 834 Non-cash purchase consideration related to business combinations 3,920 — — Commission payable converted to stock-based award — — 314 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | Feb. 12, 2019USD ($)trancheitem | May 24, 2018USD ($)itemtrancheshares | Dec. 31, 2021USD ($)segmentitemcustomercountryshares | Dec. 31, 2020USD ($)customercountryshares | Dec. 31, 2019USD ($)customercountryshares |
Summary Of Significant Accounting Policy [Line Items] | |||||
Credit losses | $ 0 | ||||
Restricted cash balance | $ 57 | $ 62 | |||
Number of revenue sources | item | 2 | ||||
Allowance for doubtful accounts | $ 3,349 | 3,376 | $ 1,567 | ||
Additional credit loss expense | (46) | 1,215 | |||
Sales, general and administrative | $ 515,007 | 307,286 | 212,959 | ||
Warranty period | 1 year | ||||
Research and development costs | $ 194,026 | 123,195 | $ 100,721 | ||
Number of depository institutions | item | 3 | ||||
Aggregate balances in depository institution accounts | $ 347,300 | ||||
Cash surrender value of corporate-owned life insurance policies | $ 5,276 | $ 4,654 | |||
Investment in number of unconsolidated affiliates | item | 4 | ||||
Number of reportable segments of company | segment | 2 | ||||
Market capitalization goal for such tranche | $ 2,500,000 | ||||
Market capitalization goal increment | $ 1,000,000 | ||||
Number of options, Granted (in shares) | shares | 0 | 0 | 0 | ||
Net Sales | Geographic Concentration Risk | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Number of countries outside the U.S. representing more than 10% of total net sales | country | 0 | 0 | 0 | ||
Net Sales | Customer Concentration Risk | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Number of major customers | customer | 0 | 0 | 0 | ||
Accounts and notes receivable and contract assets | Customer Concentration Risk | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Number of major customers | customer | 0 | 0 | |||
Advertising | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Sales, general and administrative | $ 2,600 | $ 1,300 | $ 900 | ||
Performance Shares | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Number of options, Granted (in shares) | shares | 6,365,856 | ||||
Stock Options | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Number of options, Granted (in shares) | shares | 0 | 0 | 0 | ||
Chief Executive Officer | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Number of vesting tranches of share-based awards | tranche | 12 | ||||
Number of performance goals, revenue | item | 8 | ||||
Number of performance goals, adjusted EBITDA | item | 8 | ||||
2019 eXponential Stock Performance Plan | eXponential Stock Units | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Restricted stock, expiration period | 9 years | ||||
Number of vesting tranches of share-based awards | tranche | 12 | ||||
Market capitalization goal for such tranche | $ 2,500,000 | ||||
Market capitalization goal increment | $ 1,000,000 | ||||
Number of performance goals, revenue | item | 8 | ||||
Number of performance goals, adjusted EBITDA | item | 8 | ||||
Number of options, Granted (in shares) | shares | 40,000 | ||||
Post-vest holding period | 2 years 6 months | ||||
Expected dividend yield (as percentage) | 0.00% | ||||
Minimum | 2019 eXponential Stock Performance Plan | eXponential Stock Units | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Liquidity discount (as percentage) | 10.50% | ||||
Risk-free interest rate (as percentage) | 0.85% | ||||
Expected life of options | 6 years 6 months | ||||
Expected volatility (as percentage) | 47.28% | ||||
Maximum | 2019 eXponential Stock Performance Plan | eXponential Stock Units | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Number of options, Granted (in shares) | shares | 100,000 | ||||
Liquidity discount (as percentage) | 17.60% | ||||
Risk-free interest rate (as percentage) | 1.24% | ||||
Expected life of options | 7 years | ||||
Expected volatility (as percentage) | 55.79% | ||||
Design of New Headquarters | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Impairment of long-lived assets to be disposed | $ 700 | ||||
Capitalized software impairment | $ 1,300 | ||||
Office Improvements and Remodeling | |||||
Summary Of Significant Accounting Policy [Line Items] | |||||
Impairment of long-lived assets to be disposed | $ 700 | ||||
Impairment of leasehold | $ 500 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Summary of Changes in Estimated Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard and Extended Product Warranty | ||
Balance, beginning of period | $ 769 | $ 1,476 |
Utilization of reserve | (873) | (700) |
Warranty expense (benefit) | 2,926 | (7) |
Balance, end of period | $ 2,822 | $ 769 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding and Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator for basic and diluted earnings per share: | |||
Net income (loss) | $ (60,018) | $ (1,724) | $ 882 |
Denominator: | |||
Weighted average shares outstanding basic (in shares) | 66,191 | 61,782 | 59,190 |
Dilutive effect of stock-based awards (in shares) | 828 | ||
Diluted weighted average shares outstanding (in shares) | 66,191 | 61,782 | 60,018 |
Anti-dilutive stock-based awards excluded (in shares) | 7,690 | 12,150 | 12,627 |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ (0.91) | $ (0.03) | $ 0.01 |
Diluted (in dollars per share) | $ (0.91) | $ (0.03) | $ 0.01 |
Revenues - Revenues By Products
Revenues - Revenues By Products And Service Offerings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | $ 863,381 | $ 681,003 | $ 530,860 |
TASER 7 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 135,906 | 107,506 | 56,652 |
TASER X26P | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 40,629 | 41,724 | 52,524 |
TASER X2 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 58,081 | 60,107 | 55,920 |
TASER Consumer devices | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 7,132 | 9,407 | 4,089 |
Cartridges | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 152,842 | 115,193 | 85,987 |
Axon Body | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 75,484 | 57,150 | 44,039 |
Axon Flex | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 4,155 | 4,082 | 5,928 |
Axon Fleet | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 24,319 | 20,108 | 16,182 |
Axon Dock | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 24,441 | 19,723 | 20,449 |
Axon Evidence and cloud services | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 255,164 | 179,732 | 130,969 |
Extended warranties | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 57,811 | 45,162 | 37,262 |
Other | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 27,417 | 21,109 | 20,859 |
TASER | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 436,927 | 366,552 | 281,661 |
TASER | TASER 7 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 135,906 | 107,506 | 56,652 |
TASER | TASER X26P | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 40,629 | 41,724 | 52,524 |
TASER | TASER X2 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 58,081 | 60,107 | 55,920 |
TASER | TASER Consumer devices | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 7,132 | 9,407 | 4,089 |
TASER | Cartridges | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 152,842 | 115,193 | 85,987 |
TASER | Axon Evidence and cloud services | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 9,159 | 2,935 | 704 |
TASER | Extended warranties | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 24,125 | 20,754 | 18,074 |
TASER | Other | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 9,053 | 8,926 | 7,711 |
Software and Sensors | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 426,454 | 314,451 | 249,199 |
Software and Sensors | Axon Body | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 75,484 | 57,150 | 44,039 |
Software and Sensors | Axon Flex | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 4,155 | 4,082 | 5,928 |
Software and Sensors | Axon Fleet | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 24,319 | 20,108 | 16,182 |
Software and Sensors | Axon Dock | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 24,441 | 19,723 | 20,449 |
Software and Sensors | Axon Evidence and cloud services | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 246,005 | 176,797 | 130,265 |
Software and Sensors | Extended warranties | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | 33,686 | 24,408 | 19,188 |
Software and Sensors | Other | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue from contract with customers | $ 18,364 | $ 12,183 | $ 13,148 |
Revenues - Revenues By Geograph
Revenues - Revenues By Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | $ 863,381 | $ 681,003 | $ 530,860 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | 686,914 | 535,079 | 446,100 |
Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customers | $ 176,467 | $ 145,924 | $ 84,760 |
Revenue from Contract with Customer | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percentage) | 100.00% | 100.00% | 100.00% |
Revenue from Contract with Customer | Geographic Concentration Risk | United States | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percentage) | 80.00% | 79.00% | 84.00% |
Revenue from Contract with Customer | Geographic Concentration Risk | Other countries | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percentage) | 20.00% | 21.00% | 16.00% |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Unbilled accounts receivable | $ 13,900 | ||
Payment due date from date of invoice | 30 days | ||
Net sales | $ 863,381 | $ 681,003 | $ 530,860 |
Taser 60 Plan | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Interest income | 1,000 | 1,500 | 1,600 |
Sales, general and administrative expenses | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Amortization related to deferred commissions | $ 16,600 | $ 11,300 | $ 8,200 |
Revenues - Contract Assets, Con
Revenues - Contract Assets, Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Contract assets, net | $ 210,174 | $ 84,044 | $ 47,746 |
Contract liabilities (deferred revenue) | 451,312 | 275,181 | 205,800 |
Revenue recognized in the period from: | |||
Amounts included in contract liabilities at the beginning of the period | $ 177,812 | $ 135,513 | $ 101,768 |
Revenues - Summary of Deferred
Revenues - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | |||
Current | $ 265,591 | $ 163,959 | |
Long-Term | 185,721 | 111,222 | |
Total | 451,312 | 275,181 | $ 205,800 |
TASER | |||
Disaggregation of Revenue [Line Items] | |||
Current | 36,902 | 28,945 | |
Long-Term | 36,975 | 32,811 | |
Total | 73,877 | 61,756 | |
Software and Sensors | |||
Disaggregation of Revenue [Line Items] | |||
Current | 228,689 | 135,014 | |
Long-Term | 148,746 | 78,411 | |
Total | 377,435 | 213,425 | |
Warranty | |||
Disaggregation of Revenue [Line Items] | |||
Current | 44,432 | 25,561 | |
Long-Term | 22,903 | 21,978 | |
Total | 67,335 | 47,539 | |
Warranty | TASER | |||
Disaggregation of Revenue [Line Items] | |||
Current | 21,257 | 11,635 | |
Long-Term | 4,766 | 16,953 | |
Total | 26,023 | 28,588 | |
Warranty | Software and Sensors | |||
Disaggregation of Revenue [Line Items] | |||
Current | 23,175 | 13,926 | |
Long-Term | 18,137 | 5,025 | |
Total | 41,312 | 18,951 | |
Hardware | |||
Disaggregation of Revenue [Line Items] | |||
Current | 47,806 | 41,495 | |
Long-Term | 109,950 | 65,285 | |
Total | 157,756 | 106,780 | |
Hardware | TASER | |||
Disaggregation of Revenue [Line Items] | |||
Current | 12,944 | 16,314 | |
Long-Term | 28,727 | 14,304 | |
Total | 41,671 | 30,618 | |
Hardware | Software and Sensors | |||
Disaggregation of Revenue [Line Items] | |||
Current | 34,862 | 25,181 | |
Long-Term | 81,223 | 50,981 | |
Total | 116,085 | 76,162 | |
Software and Sensors. | |||
Disaggregation of Revenue [Line Items] | |||
Current | 173,353 | 96,903 | |
Long-Term | 52,868 | 23,959 | |
Total | 226,221 | 120,862 | |
Software and Sensors. | TASER | |||
Disaggregation of Revenue [Line Items] | |||
Current | 2,701 | 996 | |
Long-Term | 3,482 | 1,554 | |
Total | 6,183 | 2,550 | |
Software and Sensors. | Software and Sensors | |||
Disaggregation of Revenue [Line Items] | |||
Current | 170,652 | 95,907 | |
Long-Term | 49,386 | 22,405 | |
Total | $ 220,038 | $ 118,312 |
Revenues - Revenue Performance
Revenues - Revenue Performance Obligations (Details) $ in Millions | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 2,800 |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation to be recognized in the next twelve months (as a percentage) | 15.00% |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation to be recognized in the next twelve months (as a percentage) | 20.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 7 years |
Revenues - Cost to Obtain Contr
Revenues - Cost to Obtain Contracts with Customer (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues | ||
Current deferred commissions | $ 19,962 | $ 13,316 |
Deferred commissions, net of current portion | 54,028 | 32,455 |
Deferred sales commission | $ 73,990 | $ 45,771 |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | $ 652,816 | ||
Amortized Cost | $ 492,350 | ||
Gross Unrealized Gains | 401 | ||
Gross Unrealized Gains | 5 | ||
Gross Unrealized Losses | (128) | ||
Gross Unrealized Losses | (18,101) | ||
Fair Value | 653,089 | ||
Fair Value | 474,254 | ||
Cash and Cash Equivalents | 356,332 | 155,443 | |
Marketable Securities | 72,180 | ||
Cash and cash equivalents, Expected credit loss reserve | (3) | ||
Cash and cash equivalents, Net of expected credit loss reserve | 155,440 | ||
Cash and cash equivalents | 356,332 | 155,440 | $ 172,250 |
Short-term investments | 14,510 | 406,525 | |
Long-term investments | 31,232 | 90,681 | |
Marketable securities, unrealized gain (loss) | (17,800) | ||
Carrying amount of held-to-maturity securities sold | 165,400 | ||
Credit loss reserve for held-to-maturity investments | 200 | ||
Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments, Expected credit loss reserve | (142) | ||
Short-term investments, Net of expected credit loss reserve | 406,525 | ||
Short-term investments | 406,667 | ||
Long-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Long-term investments, Expected credit loss reserve | (25) | ||
Long-term investments, Net of expected credit loss reserve | 90,681 | ||
Long-term investments | 90,706 | ||
Common stock | Share Purchase Agreement with Cellebrite DI Ltd. | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Marketable Securities | $ 90,000 | ||
Investment owned, shares held | 9,000,000 | ||
Fair Value, Inputs, Level 1 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 183,789 | ||
Amortized Cost | $ 103,544 | ||
Gross Unrealized Gains | 128 | ||
Gross Unrealized Gains | 4 | ||
Gross Unrealized Losses | (17,820) | ||
Fair Value | 183,917 | ||
Fair Value | 85,728 | ||
Cash and Cash Equivalents | 2,844 | 23,611 | |
Marketable Securities | 72,180 | ||
Short-term investments | 10,704 | ||
Fair Value, Inputs, Level 1 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | 120,178 | ||
Fair Value, Inputs, Level 1 | Long-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Long-term investments | 40,000 | ||
Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 352,920 | ||
Amortized Cost | 35,318 | ||
Gross Unrealized Gains | 273 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (128) | ||
Gross Unrealized Losses | (281) | ||
Fair Value | 353,065 | ||
Fair Value | 35,038 | ||
Cash and Cash Equivalents | 15,725 | ||
Short-term investments | 3,806 | ||
Long-term investments | 31,232 | ||
Fair Value, Inputs, Level 2 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | 286,489 | ||
Fair Value, Inputs, Level 2 | Long-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Long-term investments | 50,706 | ||
Cash | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 116,107 | ||
Amortized Cost | 353,488 | ||
Fair Value | 116,107 | ||
Fair Value | 353,488 | ||
Cash and Cash Equivalents | 353,488 | 116,107 | |
Money market funds | Fair Value, Inputs, Level 1 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 23,611 | ||
Amortized Cost | 2,844 | ||
Fair Value | 23,611 | ||
Fair Value | 2,844 | ||
Cash and Cash Equivalents | 2,844 | 23,611 | |
Agency bonds | Fair Value, Inputs, Level 1 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 63,794 | ||
Amortized Cost | 10,700 | ||
Gross Unrealized Gains | 122 | ||
Gross Unrealized Gains | 4 | ||
Fair Value | 63,916 | ||
Fair Value | 10,704 | ||
Short-term investments | 10,704 | ||
Agency bonds | Fair Value, Inputs, Level 1 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | 23,794 | ||
Agency bonds | Fair Value, Inputs, Level 1 | Long-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Long-term investments | 40,000 | ||
Marketable securities | Fair Value, Inputs, Level 1 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 90,000 | ||
Gross Unrealized Losses | (17,820) | ||
Fair Value | 72,180 | ||
Marketable Securities | 72,180 | ||
Treasury bills | Fair Value, Inputs, Level 1 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 96,384 | ||
Gross Unrealized Gains | 6 | ||
Fair Value | 96,390 | ||
Treasury bills | Fair Value, Inputs, Level 1 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | 96,384 | ||
State and municipal obligations | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 77,130 | ||
Amortized Cost | 2,570 | ||
Gross Unrealized Gains | 25 | ||
Gross Unrealized Losses | (28) | ||
Gross Unrealized Losses | (5) | ||
Fair Value | 77,127 | ||
Fair Value | 2,565 | ||
Short-term investments | 1,400 | ||
Long-term investments | 1,165 | ||
State and municipal obligations | Fair Value, Inputs, Level 2 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | 66,519 | ||
State and municipal obligations | Fair Value, Inputs, Level 2 | Long-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Long-term investments | 10,611 | ||
Certificates of deposit | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 500 | ||
Fair Value | 500 | ||
Certificates of deposit | Fair Value, Inputs, Level 2 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | 500 | ||
Corporate bonds | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 212,825 | ||
Amortized Cost | 32,748 | ||
Gross Unrealized Gains | 232 | ||
Gross Unrealized Gains | 1 | ||
Gross Unrealized Losses | (100) | ||
Gross Unrealized Losses | (276) | ||
Fair Value | 212,957 | ||
Fair Value | 32,473 | ||
Cash and Cash Equivalents | 2,525 | ||
Short-term investments | 2,406 | ||
Long-term investments | $ 30,067 | ||
Corporate bonds | Fair Value, Inputs, Level 2 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | 170,205 | ||
Corporate bonds | Fair Value, Inputs, Level 2 | Long-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Long-term investments | 40,095 | ||
U.S. Treasury repurchase agreements | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 13,200 | ||
Fair Value | 13,200 | ||
Cash and Cash Equivalents | 13,200 | ||
Treasury inflation - protected securities | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 3,291 | ||
Gross Unrealized Gains | 16 | ||
Fair Value | 3,307 | ||
Treasury inflation - protected securities | Fair Value, Inputs, Level 2 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | 3,291 | ||
Commercial paper | Fair Value, Inputs, Level 2 | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Amortized Cost | 45,974 | ||
Fair Value | 45,974 | ||
Commercial paper | Fair Value, Inputs, Level 2 | Short-Term Investments | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Short-term investments | $ 45,974 |
Expected Credit Losses (Details
Expected Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 3,376 | $ 1,567 |
Adoption of Topic 326, cumulative-effect adjustment to retained earnings | 768 | |
Provision for (recovery of) expected credit losses | (46) | 1,215 |
Amounts written off charged against the allowance | (54) | (117) |
Other, including foreign currency translation | 73 | (57) |
Balance, end of period | 3,349 | 3,376 |
United States | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 2,902 | 1,395 |
Adoption of Topic 326, cumulative-effect adjustment to retained earnings | 767 | |
Provision for (recovery of) expected credit losses | 245 | 824 |
Amounts written off charged against the allowance | (54) | (84) |
Other, including foreign currency translation | 78 | |
Balance, end of period | 3,171 | 2,902 |
Other countries | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | 474 | 172 |
Adoption of Topic 326, cumulative-effect adjustment to retained earnings | 1 | |
Provision for (recovery of) expected credit losses | (291) | 391 |
Amounts written off charged against the allowance | (33) | |
Other, including foreign currency translation | (5) | (57) |
Balance, end of period | 178 | $ 474 |
COVID-19 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Reversal of previously-recorded additional reserve for credit losses | $ 1,300 |
Expected Credit Losses - Type O
Expected Credit Losses - Type Of Customer Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Expected Credit Losses | ||
Accounts receivable and notes receivable, current | $ 2,203 | $ 2,105 |
Contract assets, net | 1,010 | 794 |
Long-term notes receivable, net of current portion | 136 | 477 |
Total allowance for expected credit losses on customer receivables | $ 3,349 | $ 3,376 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 38,267 | $ 39,194 |
Finished goods | 70,421 | 50,764 |
Total inventory | $ 108,688 | $ 89,958 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 197,241 | $ 152,679 |
Less: Accumulated depreciation | (58,784) | (47,185) |
Property and equipment, net | 138,457 | 105,494 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 54,868 | 57,052 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 25,712 | 20,912 |
Building and leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Building and leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 39 years | |
Production equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 54,090 | 37,539 |
Production equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Production equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Computers, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 15,343 | 10,889 |
Computers, equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Computers, equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 6,838 | 6,954 |
Furniture and office equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Furniture and office equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Total cost | $ 2,932 | 1,980 |
Website development costs | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Total cost | $ 204 | 204 |
Capitalized internal-use software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 11,996 | 3,670 |
Capitalized internal-use software development costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Capitalized internal-use software development costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Construction-in-process | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 25,258 | $ 13,479 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense relative to property and equipment | $ 15,800 | $ 9,200 | $ 7,900 |
Cost of sales | 322,471 | 264,672 | 223,574 |
Property, Plant and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost of sales | 6,300 | $ 4,000 | $ 3,500 |
Capitalized internal-use software development costs | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment additions | $ 6,600 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Changes in carrying amount of goodwill | |
Balance, beginning of period | $ 25,205 |
Goodwill acquired | 18,495 |
Foreign currency translation adjustments | (108) |
Balance, end of period | 43,592 |
TASER | |
Changes in carrying amount of goodwill | |
Balance, beginning of period | 1,450 |
Foreign currency translation adjustments | (54) |
Balance, end of period | 1,396 |
Software and Sensors | |
Changes in carrying amount of goodwill | |
Balance, beginning of period | 23,755 |
Goodwill acquired | 18,495 |
Foreign currency translation adjustments | (54) |
Balance, end of period | $ 42,196 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Definite-Lived Intangible Assets Other than Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 30,733 | $ 22,170 | |
Accumulated Amortization | (16,966) | (14,230) | |
Total | 13,767 | 7,940 | |
Not amortized, Gross Carrying Amount | 1,703 | 1,508 | |
Intangible assets, Gross Carrying Amount | 32,436 | 23,678 | |
Intangible assets, Net Carrying Amount | 15,470 | 9,448 | |
Amortization expense of intangible assets | 2,900 | 3,300 | $ 3,500 |
TASER trademark | |||
Intangible Assets [Line Items] | |||
Not amortized, Gross Carrying Amount | 900 | 900 | |
My90 trademark | |||
Intangible Assets [Line Items] | |||
Not amortized, Gross Carrying Amount | 168 | ||
Patents and trademarks pending | |||
Intangible Assets [Line Items] | |||
Not amortized, Gross Carrying Amount | 635 | 608 | |
Domain names | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3,043 | 3,036 | |
Accumulated Amortization | (1,518) | (1,339) | |
Total | $ 1,525 | 1,697 | |
Domain names | Minimum | |||
Intangible Assets [Line Items] | |||
Useful Life | 5 years | ||
Domain names | Maximum | |||
Intangible Assets [Line Items] | |||
Useful Life | 10 years | ||
Issued patents | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 3,061 | 3,232 | |
Accumulated Amortization | (1,457) | (1,567) | |
Total | $ 1,604 | 1,665 | |
Issued patents | Minimum | |||
Intangible Assets [Line Items] | |||
Useful Life | 5 years | ||
Issued patents | Maximum | |||
Intangible Assets [Line Items] | |||
Useful Life | 25 years | ||
Issued trademarks | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,130 | 1,002 | |
Accumulated Amortization | (643) | (227) | |
Total | $ 487 | 775 | |
Issued trademarks | Minimum | |||
Intangible Assets [Line Items] | |||
Useful Life | 3 years | ||
Issued trademarks | Maximum | |||
Intangible Assets [Line Items] | |||
Useful Life | 15 years | ||
Customer relationships | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 4,985 | 3,780 | |
Accumulated Amortization | (2,439) | (1,955) | |
Total | $ 2,546 | 1,825 | |
Customer relationships | Minimum | |||
Intangible Assets [Line Items] | |||
Useful Life | 4 years | ||
Customer relationships | Maximum | |||
Intangible Assets [Line Items] | |||
Useful Life | 8 years | ||
Non-compete agreements | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 454 | 460 | |
Accumulated Amortization | (444) | (429) | |
Total | $ 10 | 31 | |
Non-compete agreements | Minimum | |||
Intangible Assets [Line Items] | |||
Useful Life | 3 years | ||
Non-compete agreements | Maximum | |||
Intangible Assets [Line Items] | |||
Useful Life | 4 years | ||
Developed technology | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 18,060 | 10,660 | |
Accumulated Amortization | (10,465) | (8,713) | |
Total | $ 7,595 | $ 1,947 | |
Developed technology | Minimum | |||
Intangible Assets [Line Items] | |||
Useful Life | 3 years | ||
Developed technology | Maximum | |||
Intangible Assets [Line Items] | |||
Useful Life | 5 years |
Goodwill and Intangible asset_4
Goodwill and Intangible assets - Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 3,908 | |
2023 | 3,620 | |
2024 | 3,546 | |
2025 | 824 | |
2026 | 682 | |
Thereafter | 1,187 | |
Total | $ 13,767 | $ 7,940 |
Strategic Investments (Details)
Strategic Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 22 Months Ended | |
Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | Feb. 28, 2022 | |
Equity Securities without Readily Determinable Fair Value [Line Items] | ||||
Balance, beginning of period | $ 83,520 | $ 11,711 | ||
Investments | 45,500 | $ 55,156 | ||
Observable price changes | 40,855 | 42,910 | ||
Sales | (14,546) | (14,546) | ||
Balance, end of period | 83,520 | 83,520 | ||
Business acquisitions and Investment in unconsolidated affiliate | 83,520 | 83,520 | ||
Realized gain on sale of investment | 12,300 | |||
Subsequent Event | ||||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||||
Observable price changes | 41,500 | |||
Strategic investments | ||||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||||
Balance, beginning of period | 80,775 | 9,500 | ||
Investments | 45,500 | 52,568 | ||
Observable price changes | 40,321 | 42,753 | ||
Sales | (14,546) | (14,546) | ||
Balance, end of period | 80,775 | 80,775 | ||
Business acquisitions and Investment in unconsolidated affiliate | 80,775 | 80,775 | ||
Strategic investments | Dedrone, Inc | ||||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||||
Balance, beginning of period | 25,000 | |||
Balance, end of period | 25,000 | 25,000 | ||
Business acquisitions and Investment in unconsolidated affiliate | 25,000 | 25,000 | ||
Strategic investments | RaoidSOS, Inc | ||||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||||
Business acquisitions and Investment in unconsolidated affiliate | $ 20,000 | |||
Warrants for strategic investment | ||||
Equity Securities without Readily Determinable Fair Value [Line Items] | ||||
Balance, beginning of period | $ 2,745 | 2,211 | ||
Investments | 2,588 | |||
Observable price changes | 534 | 157 | ||
Balance, end of period | 2,745 | 2,745 | ||
Business acquisitions and Investment in unconsolidated affiliate | $ 2,745 | $ 2,745 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash surrender value of corporate-owned life insurance policies | $ 5,276 | $ 4,654 |
Deferred commissions | 54,028 | 32,455 |
Restricted cash | 57 | 62 |
Operating lease assets | 23,270 | 22,308 |
Deferred implementation costs | 3,915 | |
Prepaid expenses, deposits and other | 11,701 | 8,727 |
Total other long-term assets | 98,247 | $ 68,206 |
Government grant assets | 900 | |
Deferred implementation costs assets placed into service | 4,300 | |
Other Noncurrent Assets | ||
Grant receivable | $ 500 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | |||
Accrued salaries, benefits and bonus | $ 62,425 | $ 36,892 | |
Accrued professional, consulting and lobbying fees | 7,152 | 3,055 | |
Accrued warranty expense | 2,822 | 769 | $ 1,476 |
Accrued income and other taxes | 3,736 | 3,848 | |
Accrued inventory in transit | 9,945 | 4,597 | |
Other accrued expenses | 17,627 | 10,682 | |
Accrued liabilities | $ 103,707 | $ 59,843 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2021USD ($)lawsuit | Feb. 23, 2022USD ($) | |
Loss Contingencies [Line Items] | ||||
Open purchase order | $ 313.5 | |||
Other purchase obligation | $ 14.9 | |||
Number of lawsuits against Company | lawsuit | 2 | |||
Amount self-insured for any product claim | $ 5 | |||
Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Construction management agreement, maximum guaranteed construction price | $ 149.7 | |||
Line of Credit | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit outstanding amount | 6.1 | |||
Outstanding letters of credit and bank guarantees not drawn against credit facility | 1.3 | |||
Data Storage | ||||
Loss Contingencies [Line Items] | ||||
Purchase commitment period | 3 years | |||
Purchase obligation | $ 50 | |||
Up-front prepayment | $ 15 | |||
Storage fees | 22.4 | |||
Remaining purchase commitment | 0 | |||
Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit outstanding amount | 6.1 | |||
Bonds outstanding | 21.5 | |||
Expiring in 2022 | Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Bonds outstanding | 3.5 | |||
Expiring in 2023 | Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Bonds outstanding | 7.5 | |||
Expiring in 2024 | Surety Bond | ||||
Loss Contingencies [Line Items] | ||||
Bonds outstanding | $ 10.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | ||
Deferred tax assets, state NOLs | $ 251,400 | |
Deferred tax assets, federal NOLs | 259,000 | |
Federal operating loss carryforwards subject to limitation | 100 | |
Federal research and development tax credit carryforwards subject to limitation | 100 | |
Valuation allowance | 16,168 | $ 7,308 |
Liability for unrecognized tax benefits | 18,200 | |
Unrecognized tax benefits, accrued interest | 200 | $ 200 |
UNITED KINGDOM | ||
Income Tax Contingency [Line Items] | ||
Deferred tax assets, foreign NOLs | 1,500 | |
CANADA | ||
Income Tax Contingency [Line Items] | ||
Deferred tax assets, foreign NOLs | 300 | |
FINLAND | ||
Income Tax Contingency [Line Items] | ||
Deferred tax assets, foreign NOLs | 200 | |
Federal | ||
Income Tax Contingency [Line Items] | ||
Federal research and development credit carry forwards | 27,600 | |
State Tax | ||
Income Tax Contingency [Line Items] | ||
State research and development credit carry forwards | $ 19,100 |
Income Taxes - Income by Region
Income Taxes - Income by Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (146,995) | $ (11,529) | $ (1,449) |
Foreign | 5,620 | 5,238 | 3,519 |
Income (loss) before provision (benefit) for income taxes | $ (141,375) | $ (6,291) | $ 2,070 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of the Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ (331) | $ 5,277 | $ 4,247 |
State | 85 | 3,886 | 2,414 |
Foreign | (60) | 1,943 | 1,533 |
Total current | (306) | 11,106 | 8,194 |
Deferred: | |||
Federal | (65,557) | (10,175) | (6,060) |
State | (15,266) | (3,111) | (1,665) |
Foreign | 478 | (3,131) | (264) |
Total deferred | (80,345) | (16,417) | (7,989) |
Tax impact of unrecorded tax benefits liability | (706) | 744 | 983 |
Provision for income taxes (Income tax benefit) | $ (81,357) | $ (4,567) | $ 1,188 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Company's Effective Income Tax Rate to the Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax at the statutory rate | $ (29,691) | $ (1,321) | $ 435 |
State income taxes, net of federal benefit | (12,717) | 935 | 526 |
Difference between statutory and foreign tax rates | (155) | (86) | 43 |
Other permanent differences | 1,842 | 794 | 1,356 |
Foreign derived intangible income deduction | (902) | (217) | |
Executive compensation limitation | 180,509 | 15,463 | 7,596 |
Research and development | (34,376) | (10,246) | (4,911) |
Return to provision adjustment | 204 | (1,078) | (9) |
Change in liability for unrecognized tax benefits | 10,188 | 987 | 1,191 |
Excess stock-based compensation benefit | (205,483) | (9,002) | (4,999) |
Change in valuation allowance | 8,961 | 163 | 368 |
Tax effects of intercompany transactions | 96 | (389) | 16 |
Other | (735) | 115 | (207) |
Provision for income taxes (Income tax benefit) | $ (81,357) | $ (4,567) | $ 1,188 |
Effective tax rate (as a percentage) | 57.50% | 72.60% | 57.40% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax assets: | ||
Net operating loss carryforward | $ 68,353 | $ 1,834 |
Deferred revenue | 27,031 | 21,055 |
Deferred compensation | 1,414 | 1,175 |
Lease liability | 5,886 | 5,730 |
Inventory reserve | 684 | 511 |
Stock-based compensation | 10,913 | 18,890 |
Amortization | 2,672 | 2,436 |
Research and development tax credit carryforward | 29,249 | 6,654 |
Reserves, accruals, and other | 14,717 | 7,274 |
Total deferred income tax assets | 160,919 | 65,559 |
Deferred income tax liabilities: | ||
Contract asset | (1,104) | (1,150) |
Right of use asset | (5,008) | (5,237) |
Depreciation | (8,938) | (5,363) |
Strategic investments | (2,653) | (321) |
Prepaid expenses | (594) | (874) |
Other | (72) | (185) |
Total deferred income tax liabilities | (18,369) | (13,130) |
Net deferred income tax assets before valuation allowance | 142,550 | 52,429 |
Valuation allowance | (16,168) | (7,308) |
Net deferred income tax assets | $ 126,382 | $ 45,121 |
Income Taxes - Roll Forward of
Income Taxes - Roll Forward of Liability for Unrecognized Tax Benefits Exclusive of Accrued Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance, beginning of period | $ 7,657 | $ 6,861 | $ 6,058 |
Decrease in previous years tax positions | (34) | (615) | |
Increase in previous year tax positions | 22 | ||
Increase in current year tax positions | 11,416 | 950 | 1,749 |
Decrease due to lapse of statutes of limitations | (846) | (120) | (331) |
Balance, end of period | $ 18,249 | $ 7,657 | $ 6,861 |
Line of Credit (Details)
Line of Credit (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Maximum ratio of total liabilities to tangible net worth | 2.50 | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Accordion feature allowing for increase in borrowing capacity | $ 100 | |
Letters of credit outstanding amount | 6.1 | |
Available borrowing under letter of credit | 43.9 | |
Line of credit borrowings | $ 0 | $ 0 |
EBITDA ratio | 0 | |
Line of Credit | Unsecured Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Total availability under line of credit agreement | $ 50 | |
Line of Credit | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Available borrowing under letter of credit | $ 20 | |
Minimum | Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument basis spread on variable rate (as a percentage) | 1.00% | |
Maximum | Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Debt instrument basis spread on variable rate (as a percentage) | 1.50% |
Stockholders' Equity - At-the-M
Stockholders' Equity - At-the-Market equity offering - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Net proceeds | $ 105,514 | $ 306,779 |
ATM Offering | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of common stock (in shares) | 577,956 | |
Gross proceeds | $ 107,600 | |
Net proceeds | 105,500 | |
Commissions | 1,600 | |
Stock issuance costs | $ 400 | |
Maximum number of common stock shares to be sold | 3,000,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock and Preferred Stock (Details) | 12 Months Ended | |
Dec. 31, 2021item$ / sharesshares | Dec. 31, 2020$ / sharesshares | |
Equity [Abstract] | ||
Number of classes of stock | item | 2 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | shares | 200,000,000 | 200,000,000 |
Preferred stock, shares authorized (in shares) | shares | 25,000,000 | 25,000,000 |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation Plans (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2021 | Feb. 12, 2019 | |
Service Based Restricted Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Service Based Restricted Stock Unit | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Service Based Restricted Stock Unit | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Performance Based Restricted Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Performance Based Restricted Stock Unit | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Performance Based Restricted Stock Unit | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 10 years | |
2018 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance (in shares) | 6 | |
Shares available for grant under the plan (in shares) | 1 |
Stockholders' Equity - CEO Perf
Stockholders' Equity - CEO Performance Award - Additional Information (Details) $ in Thousands | May 24, 2018USD ($)itemtrancheshares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020shares | Dec. 31, 2019shares | Dec. 31, 2021USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance shares authorized (in shares) | shares | 0 | 0 | 0 | ||
Market capitalization goal for such tranche | $ 2,500,000 | ||||
Market capitalization goal increment | $ 1,000,000 | ||||
Recorded share-based compensation expense | $ 230,300 | ||||
Number of awards expected to vest | shares | 1,100,000 | 1,100,000 | |||
Revenue goal number 1 | $ 710,058 | $ 710,058 | |||
Revenue goal number 2 | 860,058 | 860,058 | |||
Revenue goal number 3 | 1,010,058 | 1,010,058 | |||
Revenue goal number 4 | 1,210,058 | 1,210,058 | |||
Revenue goal number 5 | 1,410,058 | 1,410,058 | |||
Revenue goal number 6 | 1,610,058 | 1,610,058 | |||
Revenue goal number 7 | 1,810,058 | 1,810,058 | |||
Revenue goal number 8 | 2,010,058 | 2,010,058 | |||
Adjusted EBITDA goal number 1 | 125,000 | 125,000 | |||
Adjusted EBITDA goal number 2 | 155,000 | 155,000 | |||
Adjusted EBITDA goal number 3 | 175,000 | 175,000 | |||
Adjusted EBITDA goal number 4 | 190,000 | 190,000 | |||
Adjusted EBITDA goal number 5 | 200,000 | 200,000 | |||
Adjusted EBITDA goal number 6 | 210,000 | 210,000 | |||
Adjusted EBITDA goal number 7 | 220,000 | 220,000 | |||
Adjusted EBITDA goal number 8 | $ 230,000 | 230,000 | |||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance shares authorized (in shares) | shares | 6,365,856 | ||||
Number of options vested | shares | 5,300,000 | ||||
Weighted average period over which costs are recognized | 1 year 6 months 3 days | ||||
CEO Performance Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized share-based compensation cost related to unvested stock option awards, probable of achievement | $ 15,700 | $ 15,700 | |||
Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of vesting tranches of share-based awards | tranche | 12 | ||||
Vesting period | 10 years | ||||
Number of performance goals, revenue | item | 8 | ||||
Number of performance goals, adjusted EBITDA | item | 8 |
Stockholders' Equity - eXponent
Stockholders' Equity - eXponential Stock Performance Plan (Details) $ in Millions | Feb. 12, 2019USD ($)trancheitem | Jan. 02, 2019 | May 24, 2018USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020shares | Dec. 31, 2019shares | Dec. 31, 2021USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance shares authorized (in shares) | shares | 0 | 0 | 0 | ||||
Market capitalization goal for such tranche | $ 2,500 | ||||||
Market capitalization goal increment | $ 1,000 | ||||||
Recorded share-based compensation expense | $ 230.3 | ||||||
Number of awards expected to vest | shares | 1,100,000 | 1,100,000 | |||||
eXponential Stock Units | 2019 eXponential Stock Performance Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance shares authorized (in shares) | shares | 40,000 | ||||||
Expiration period | 9 years | ||||||
Number of vesting tranches of share-based awards | tranche | 12 | ||||||
Market capitalization goal for such tranche | $ 2,500 | ||||||
Number of performance goals, revenue | item | 8 | ||||||
Number of performance goals, adjusted EBITDA | item | 8 | ||||||
Market capitalization goal increment | $ 1,000 | ||||||
Anti-dilution provision, maximum shares growth rate per year | 3.00% | ||||||
Recorded share-based compensation expense | $ 177.4 | ||||||
Number of awards expected to vest | shares | 1,300,000 | 1,300,000 | |||||
Unrecognized stock-based compensation expense | $ 21.6 | $ 21.6 | |||||
Weighted average period over which costs are recognized | 2 years 7 days | ||||||
eXponential Stock Units | 2019 eXponential Stock Performance Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance shares authorized (in shares) | shares | 100,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Unit and Performance Stock Units Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Number of Units outstanding, beginning of year (in shares) | 1,107 | 1,249 | 1,244 |
Number of Units, Granted (in shares) | 686 | 577 | 718 |
Number of Units, Released (in shares) | (554) | (598) | (547) |
Number of Units, Forfeited (in shares) | (124) | (121) | (166) |
Number of Units outstanding, end of period (in shares) | 1,115 | 1,107 | 1,249 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Units outstanding, beginning of year (in dollars per share) | $ 76.10 | $ 45.47 | $ 28.52 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 165.67 | 100.76 | 59.09 |
Weighted Average Grant Date Fair Value, Released (in dollars per share) | 66.23 | 40.68 | 27.38 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 100.64 | 52.40 | 36.91 |
Weighted Average Grant Date Fair Value, Units outstanding, end of period (in dollars per share) | $ 133.40 | $ 76.10 | $ 45.47 |
Aggregate intrinsic value at year end | $ 174,999 | ||
Performance Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Number of Units outstanding, beginning of year (in shares) | 5,618 | 6,033 | 411 |
Number of Units, Granted (in shares) | 309 | 417 | 6,041 |
Number of Units, Released (in shares) | (4,345) | (184) | (103) |
Number of Units, Forfeited (in shares) | (83) | (648) | (316) |
Number of Units outstanding, end of period (in shares) | 1,499 | 5,618 | 6,033 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Units outstanding, beginning of year (in dollars per share) | $ 35.71 | $ 34.47 | $ 27.82 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 77.53 | 58.11 | 34.61 |
Weighted Average Grant Date Fair Value, Released (in dollars per share) | 37.16 | 27.79 | 17.14 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 40.91 | 40.83 | 33.99 |
Weighted Average Grant Date Fair Value, Units outstanding, end of period (in dollars per share) | $ 39.86 | $ 35.71 | $ 34.47 |
Aggregate intrinsic value at year end | $ 235,325 |
Stockholders' Equity - RSU and
Stockholders' Equity - RSU and PSU - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Sep. 09, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Tax payments, for net share settlement of share based award | $ 331,309 | $ 7,809 | $ 4,051 | |||
Recorded share-based compensation expense | $ 230,300 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate intrinsic value price per share (in dollars per share) | $ 157 | $ 157 | ||||
Aggregate intrinsic value, RSUs vested | $ 96,400 | $ 56,000 | $ 39,400 | |||
Shares withheld, for net share settlement of share based award (in shares) | 100 | |||||
Tax payments, for net share settlement of share based award | $ 11,100 | |||||
Performance criteria had been met (in shares) | 554 | 598 | 547 | |||
Number of units outstanding (in shares) | 1,115 | 1,107 | 1,249 | 1,115 | 1,244 | |
Unrecognized stock-based compensation expense related to non-vested stock options | $ 128,100 | $ 128,100 | ||||
Weighted average period over which costs are recognized | 2 years 4 months 17 days | |||||
eXponential Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of vesting | 4.00% | |||||
Modification, number of shares vested | 99 | |||||
eXponential Stock Units Modification One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Modification, stock-based compensation expense | $ 2,800 | |||||
eXponential Stock Units Modification Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Modification, stock-based compensation expense | $ 3,400 | |||||
Performance Stock Units (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate intrinsic value price per share (in dollars per share) | $ 157 | $ 157 | ||||
Shares withheld, for net share settlement of share based award (in shares) | 1,200 | |||||
Tax payments, for net share settlement of share based award | $ 204,300 | |||||
Performance criteria had been met (in shares) | 4,345 | 184 | 103 | |||
Number of units outstanding (in shares) | 1,499 | 5,618 | 6,033 | 1,499 | 411 | |
Unrecognized stock-based compensation expense related to non-vested stock options | $ 33,500 | $ 33,500 | ||||
Weighted average period over which costs are recognized | 2 years 2 months 15 days | |||||
Performance criteria had been met (in shares) | 7 | |||||
Performance Stock Units (PSUs) | Related To Release Of Tranches Four Through Nine | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares withheld, for net share settlement of share based award (in shares) | 1,100 | |||||
Minimum | eXponential Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Minimum holding period | 2 years 6 months |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of the Company's Stock Options Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, Granted (in shares) | 0 | 0 | 0 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, Options outstanding, beginning of year (in shares) | 6,366,000 | 6,431,000 | 6,458,000 |
Number of options, Granted (in shares) | 0 | 0 | 0 |
Number of options, Exercised (in shares) | (3,928,000) | (65,000) | (27,000) |
Number of options, Expired / terminated (in shares) | 0 | 0 | 0 |
Number of options, Options outstanding, end of year (in shares) | 2,438,000 | 6,366,000 | 6,431,000 |
Number of options, Options exercisable, end of period (in shares) | 1,377,000 | 530,000 | 65,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted average exercise price, Options outstanding, beginning of year (in dollars per share) | $ 28.58 | $ 28.34 | $ 28.24 |
Weighted average exercise price, Granted (in dollars per share) | 0 | 0 | 0 |
Weighted average exercise price, Exercised (in dollars per share) | 28.58 | 4.52 | 4.27 |
Weighted average exercise price, Expired / terminated (in dollars per share) | 0 | 0 | 0 |
Weighted average exercise price, Options outstanding, end of period (in dollars per share) | 28.58 | 28.58 | 28.34 |
Weighted average exercise price, Options exercisable, end of period (in dollars per share) | $ 28.58 | $ 28.58 | $ 4.52 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | May 24, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance shares authorized (in shares) | 0 | 0 | 0 | ||
Number of unvested options outstanding | 1,100,000 | ||||
Tax payments, for net share settlement of share based award | $ 331,309 | $ 7,809 | $ 4,051 | ||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance shares authorized (in shares) | 0 | 0 | 0 | ||
Total intrinsic value of options exercised | $ 571,400 | $ 5,100 | $ 1,200 | ||
Aggregate intrinsic value, Options exercisable, end of period | $ 176,800 | ||||
Number of options, Options outstanding, end of year (in shares) | 2,438,000 | 6,366,000 | 6,431,000 | ||
Weighted average exercise price (in dollars per share) | $ 28.58 | $ 28.58 | $ 28.34 | $ 28.24 | |
Number of options exercised (in shares) | 3,928,000 | 65,000 | 27,000 | ||
Value at exercise for shares sold | $ 176,600 | ||||
Stock Options | Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of additional shares sold | 300,000 | ||||
Options exercised, net-share settled | 2,100,000 | ||||
Value at exercise for shares sold | $ 160,600 | ||||
Number of options exercised | 1,100,000 | ||||
Stock Options | Chief Executive Officer | Shares sold to cover tax obligation | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options exercised (in shares) | 600,000 | ||||
Non-Vested Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average exercise price (in dollars per share) | $ 28.58 | ||||
Weighted average fair value (in dollars per share) | $ 35.80 | ||||
Weighted average remaining contractual life, Options outstanding, end of period | 6 years 2 months 12 days | ||||
Aggregate intrinsic value of unvested options | $ 136,300 | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance shares authorized (in shares) | 6,365,856 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate intrinsic value price per share (in dollars per share) | $ 157 | ||||
Shares withheld, for net share settlement of share based award (in shares) | 100,000 | ||||
Tax payments, for net share settlement of share based award | $ 11,100 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock Options Outstanding and Exercisable (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
$28.58 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Price, lower limit (in dollars per share) | $ 28.58 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options outstanding (in shares) | 2,438 | 6,366 | 6,431 | 6,458 |
Weighted average exercise price (in dollars per share) | $ 28.58 | $ 28.58 | $ 28.34 | $ 28.24 |
Number of options, Options exercisable, end of period (in shares) | 1,377 | 530 | 65 | |
Weighted average exercise price, Options exercisable, end of period (in dollars per share) | $ 28.58 | $ 28.58 | $ 4.52 | |
Stock Options | $28.58 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options outstanding (in shares) | 1,377 | |||
Weighted average exercise price (in dollars per share) | $ 28.58 | |||
Weighted average remaining contractual life, Options outstanding, end of period | 6 years 1 month 24 days | |||
Number of options, Options exercisable, end of period (in shares) | 1,377 | |||
Weighted average exercise price, Options exercisable, end of period (in dollars per share) | $ 28.58 | |||
Weighted average remaining contractual life, Options exercisable, end of period | 6 years 1 month 24 days |
Stockholders' Equity - Stock-_2
Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 303,331 | $ 133,572 | $ 78,495 |
Income tax benefit | 30,586 | 29,329 | 11,457 |
Cost of products sold and services delivered | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 5,844 | 3,464 | 1,565 |
Sales, general and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 238,813 | 103,860 | 59,342 |
Research and development expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 58,674 | $ 26,248 | $ 17,588 |
Stockholders' Equity - Stock In
Stockholders' Equity - Stock Incentive Plan (Details) - 2019 Inducement Plan - shares | Dec. 31, 2021 | Sep. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance (in shares) | 500,000 | |
Shares available for grant under the plan (in shares) | 29,600 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Plan (Details) - 2016 Stock Incentive Plan - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 29, 2016 |
Equity, Class of Treasury Stock [Line Items] | |||
Outstanding common stock repurchase program authorized amount (up to) | $ 50 | ||
Remaining authorized repurchase amount | $ 16.3 | $ 16.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated other comprehensive income loss | |||
Beginning balance | $ 976,255 | $ 543,495 | $ 467,324 |
Other comprehensive income (loss) | (1,458) | 1,237 | 417 |
Ending balance | 1,047,849 | 976,255 | 543,495 |
Accumulated Other Comprehensive Income (loss). | |||
Accumulated other comprehensive income loss | |||
Beginning balance | 141 | (1,096) | (1,513) |
Other comprehensive income (loss) | (1,458) | 1,237 | 417 |
Ending balance | (1,317) | 141 | (1,096) |
Unrealized Gains (Losses) on Available-for-Sale Investments | |||
Accumulated other comprehensive income loss | |||
Other comprehensive income (loss) | (207) | ||
Ending balance | (207) | ||
Foreign Currency Translation | |||
Accumulated other comprehensive income loss | |||
Beginning balance | 141 | (1,096) | |
Other comprehensive income (loss) | (1,251) | 1,237 | |
Ending balance | $ (1,110) | $ 141 | $ (1,096) |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 5 years |
Termination period | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining terms | 7 years |
Leases - Balance Sheet (Details
Leases - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Operating lease assets, other assets | $ 23,270 | $ 22,308 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Current | ||
Operating lease, current liabilities | $ 6,540 | $ 5,431 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Liabilities, Current | Other Liabilities, Current |
Noncurrent | ||
Operating lease, noncurrent liabilities | $ 20,439 | $ 18,952 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities non-current | Other liabilities non-current |
Total lease liabilities | $ 26,979 | $ 24,383 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 7,495 | $ 6,757 |
Sublease income | (55) | |
Net lease expense | $ 7,495 | $ 6,702 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Balance Sheet Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 7,506 | $ 4,666 |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 6,726 | $ 17,390 |
Weighted average remaining lease term: | ||
Operating leases (in years) | 4 years 2 months 12 days | 4 years 4 months 24 days |
Weighted average discount rate: | ||
Operating leases (as a percentage) | 2.73% | 3.36% |
Leases - Minimum Lease Payments
Leases - Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Leases, After Adoption of 842 | |
2022 | $ 7,782 |
2023 | 7,397 |
2024 | 5,961 |
2025 | 5,915 |
2026 | 2,176 |
Thereafter | 214 |
Total minimum lease payments | 29,445 |
Less: Amount representing interest | (2,466) |
Present value of lease payments | $ 26,979 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee deferrals deemed vested upon contribution (as a percentage) | 100.00% | ||
Defined contribution plan, cost | $ 7.4 | $ 5.6 | $ 4.8 |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferral percentage of base salary (as a percentage) | 80.00% | ||
Deferral percentage of other compensation (as a percentage) | 100.00% |
Business Acquisitions (Details)
Business Acquisitions (Details) $ in Thousands | Dec. 22, 2021USD ($)trancheshares | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 43,592 | $ 25,205 | |
Occam Video Solutions, LLC | |||
Business Acquisition [Line Items] | |||
Estimated purchase price | $ 26,000 | ||
Cash consideration | 22,000 | ||
Cash acquired | 300 | ||
Shares transferred | $ 1,500 | ||
Shares transferred (in shares) | shares | 9,381 | ||
Vesting period (in years) | 3 years | ||
Contingent consideration | $ 2,500 | ||
Contingent consideration (in shares) | shares | 15,635 | ||
Number of even tranche vested | tranche | 2 | ||
Goodwill | $ 18,000 | ||
Intangible assets | 8,600 | ||
Liabilities, net | $ 700 | ||
Intangible assets, weighted average useful life | 3 years 7 months 6 days |
Segment Data (Details)
Segment Data (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments of company | segment | 2 | ||
Net sales | $ 863,381 | $ 681,003 | $ 530,860 |
Cost of sales | 322,471 | 264,672 | 223,574 |
Gross margin | 540,910 | 416,331 | 307,286 |
Research and development | 194,026 | 123,195 | 100,721 |
TASER | |||
Segment Reporting Information [Line Items] | |||
Net sales | 436,927 | 366,552 | 281,661 |
Cost of sales | 149,884 | 136,925 | 107,188 |
Gross margin | 287,043 | 229,627 | 174,473 |
Research and development | 46,136 | 15,380 | 14,469 |
Software and Sensors | |||
Segment Reporting Information [Line Items] | |||
Net sales | 426,454 | 314,451 | 249,199 |
Cost of sales | 172,587 | 127,747 | 116,386 |
Gross margin | 253,867 | 186,704 | 132,813 |
Research and development | 147,890 | 107,815 | 86,252 |
Product | |||
Segment Reporting Information [Line Items] | |||
Net sales | 608,525 | 500,250 | 399,474 |
Cost of sales | 260,098 | 224,131 | 190,683 |
Product | TASER | |||
Segment Reporting Information [Line Items] | |||
Net sales | 426,916 | 362,649 | 280,554 |
Cost of sales | 149,739 | 136,925 | 107,188 |
Product | Software and Sensors | |||
Segment Reporting Information [Line Items] | |||
Net sales | 181,609 | 137,601 | 118,920 |
Cost of sales | 110,359 | 87,206 | 83,495 |
Service | |||
Segment Reporting Information [Line Items] | |||
Net sales | 254,856 | 180,753 | 131,386 |
Cost of sales | 62,373 | 40,541 | 32,891 |
Service | TASER | |||
Segment Reporting Information [Line Items] | |||
Net sales | 10,011 | 3,903 | 1,107 |
Cost of sales | 145 | ||
Service | Software and Sensors | |||
Segment Reporting Information [Line Items] | |||
Net sales | 244,845 | 176,850 | 130,279 |
Cost of sales | $ 62,228 | $ 40,541 | $ 32,891 |
Supplemental Disclosure to Ca_3
Supplemental Disclosure to Cash Flows - Summary of Supplemental Non-Cash and Other Cash Flow Information (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 356,332 | $ 155,440 | $ 172,250 | |
Restricted cash | 106 | 111 | 105 | |
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | 356,438 | 155,551 | 172,355 | $ 351,027 |
Cash paid for income taxes, net of refunds | 5,108 | 10,893 | 3,669 | |
Non-cash transactions: | ||||
Property and equipment purchases in accounts payable | $ 1,994 | $ 878 | 834 | |
Non-cash purchase consideration related to business combinations | 3,920 | |||
Commission payable converted to stock-based award | $ 314 |