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 and MediaSolv (the “Axon” segment). The Company includes only revenues and costs 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 chief operating decision maker does not review assets by segment as part of the financial information provided; therefore, only limited asset information is provided in the following tables.

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



	For the year ended December 31, 2015
	TASER Weapons		Axon			Total
Product sales	$	162,375	$	22,855		$	185,230
Service revenue	—		12,662			12,662
Net sales	162,375		35,517			197,892
Cost of products sold	48,821		16,201			65,022
Cost of services delivered	—		4,223			4,223
Gross margin	113,554		15,093			128,647
Sales, general and administrative	47,640		22,058			69,698
Research and development	4,470		19,144			23,614
Income (loss) from operations	$	61,444	$	(26,109	)	$	35,335
Purchase of property and equipment	$	4,159	$	1,844		$	6,003
Purchase of intangible assets	277		224			501
Purchase of property and equipment and intangible assets in connection with business acquisitions ^(a)	1,536		11,583			13,119
Depreciation and amortization	2,311		980			3,291

^(a) Total goodwill recorded in connection with business acquisitions during the year ended December 31, 2015 was $7.5 million. Of this amount, $0.8 million was assigned to the TASER Weapons segment and $6.7 million was assigned to the Axon segment.



	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
Litigation judgment	—		—			—
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 recovery	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