Segment Data

The Company’s operations are comprised of two reportable segments: the sale of CEWs, accessories and other products and services (the “TASER Weapons” segment); and the video business, which includes the TASER Cam, AXON video products and EVIDENCE.com (the “AXON” segment). The Company includes only revenues and costs directly attributable to the AXON segment in that segment. Included in AXON segment costs are: costs of sales for both products and services, overhead allocation based on direct labor, selling expense for the video sales team, video product management expenses, video trade shows and related expenses, and research and development for products included in the AXON segment. All other costs are included in the TASER Weapons segment. The CODM does not review assets by segment as part of the financial information provided; therefore, no asset information is provided in the following tables.

Information relative to the Company’s reportable segments is as follows (in thousands):



	For the year ended December 31, 2014
	TASER Weapons		AXON			Total
Product sales	$	145,613	$	14,700		$	160,313
Service revenue	—		4,212			4,212
Net sales	145,613		18,912			164,525
Cost of products sold	47,680		13,233			60,913
Cost of services delivered	—		2,064			2,064
Gross margin	97,933		3,615			101,548
Sales, general and administrative	42,989		11,169			54,158
Research and development	3,872		11,013			14,885
Income (loss) from operations	$	51,072	$	(18,567	)	$	32,505
Purchase of property and equipment	$	2,233	$	272		$	2,505
Purchase of intangible assets	180		3			183
Depreciation and amortization	3,936		381			4,317



	For the year ended December 31, 2013
	TASER Weapons		AXON			Total
Product sales	$	127,474	$	8,649		$	136,123
Service revenue	—		1,708			1,708
Net sales	127,474		10,357			137,831
Cost of products sold	44,025		6,074			50,099
Cost of services delivered	—		1,889			1,889
Gross margin	83,449		2,394			85,843
Sales, general and administrative	40,174		6,383			46,557
Research and development	4,311		5,577			9,888
Litigation judgment	1,450		—			1,450
Income (loss) from operations	$	37,514	$	(9,566	)	$	27,948
Purchase of property and equipment	$	1,324	$	459		$	1,783
Purchase of intangible assets	307		16			323
Depreciation and amortization	4,011		1,120			5,131



	For the year ended December 31, 2012
	TASER Weapons			AXON			Total
Product sales	$	109,055		$	5,071		$	114,126
Service revenue	—			627			627
Net sales	109,055			5,698			114,753
Cost of products sold	39,350			3,773			43,123
Cost of services delivered	—			3,915			3,915
Gross margin	69,705			(1,990		)	67,715
Sales, general and administrative	35,737			3,510			39,247
Research and development	3,938			4,201			8,139
Litigation recovery	(2,200		)	—			(2,200		)
Income (loss) from operations	$	32,230		$	(9,701	)	$	22,529
Purchase of property and equipment	$	922		$	412		$	1,334
Purchase of intangible assets	429			—			429
Depreciation and amortization	4,327			2,192			6,519