Revenues (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The impacts to the December 31, 2017 balance sheet of adopting Topic 606 are presented below (in thousands):



	December 31, 2017 (As reported)		Impact of Adoption of Topic 606 on Opening Balance Sheet			January 1, 2018 (As adjusted)
Accounts and notes receivable, net	$	56,064	$	28,915		$	84,979
Contract assets, net	—		5,512			5,512
Prepaid expense and other current assets	21,696		2,003			23,699
Total impacted current assets	77,760		36,430			114,190
Deferred income tax assets, net	15,755		(5,158		)	10,597
Long-term notes receivable, net of current portion	36,877		(12,977		)	23,900
Other assets	15,366		5,323			20,689
Total impacted assets	145,758		23,618			169,376

Accrued liabilities	23,502		2,512			26,014
Current portion of deferred revenue	70,401		863			71,264
Total impacted current liabilities	93,903		3,375			97,278
Deferred revenue, net of current portion	54,881		1,249			56,130
Total impacted liabilities	148,784		4,624			153,408
Retained earnings	123,185		18,994			142,179
Total impacted stockholders' equity	123,185		18,994			142,179
Total impacted liabilities and stockholders' equity	271,969		23,618			295,587

Summary of Revenue by Product and Service Offering and Geography

The following table presents the Company's revenues by primary product and service offering (in thousands):



	Three Months Ended June 30, 2018						Three Months Ended June 30, 2017 ⁽¹⁾
	TASER Weapons		Software and Sensors		Total		TASER Weapons		Software and Sensors		Total
TASER X26P	$	18,146	$	—	$	18,146	$	16,235	$	—	$	16,235
TASER X2	18,362		—		18,362		16,052		—		16,052
TASER Pulse and Bolt	1,101		—		1,101		801		—		801
Single cartridges	17,243		—		17,243		14,867		—		14,867
Axon Body	—		4,780		4,780		—		3,752		3,752
Axon Flex	—		1,535		1,535		—		3,851		3,851
Axon Dock	—		2,119		2,119		—		2,783		2,783
Axon Fleet	—		2,715		2,715		—		—		—
Evidence.com and cloud services	—		20,357		20,357		—		12,756		12,756
TASER Cam	—		762		762		—		766		766
Extended warranties	3,738		2,870		6,608		2,991		1,619		4,610
Other	2,034		3,464		5,498		2,070		1,100		3,170
Total	$	60,624	$	38,602	$	99,226	$	53,016	$	26,627	$	79,643



	Six Months Ended June 30, 2018						Six Months Ended June 30, 2017 ⁽¹⁾
	TASER Weapons		Software and Sensors		Total		TASER Weapons		Software and Sensors		Total
TASER X26P	$	34,620	$	—	$	34,620	$	31,903	$	—	$	31,903
TASER X2	42,294		—		42,294		35,038		—		35,038
TASER Pulse and Bolt	2,447		—		2,447		1,823		—		1,823
Single cartridges	33,357		—		33,357		31,531		—		31,531
Axon Body	—		10,338		10,338		—		7,198		7,198
Axon Flex	—		3,204		3,204		—		5,326		5,326
Axon Dock	—		5,154		5,154		—		4,770		4,770
Axon Fleet	—		4,831		4,831		—		—		—
Evidence.com and cloud services	—		40,598		40,598		—		24,498		24,498
TASER Cam	—		2,122		2,122		—		1,485		1,485
Extended warranties	7,444		5,360		12,804		5,834		3,037		8,871
Other	3,986		4,686		8,672		4,558		1,884		6,442
Total	$	124,148	$	76,293	$	200,441	$	110,687	$	48,198	$	158,885

⁽¹⁾ Amounts for the three and six months ended June 30, 2017 have not been adjusted under the modified retrospective method of adoption of Topic 606, and are presented consistent with the prior period amounts reported under ASC 605.

The following table presents the Company's revenues disaggregated by geography (in thousands):



	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017 ⁽¹⁾				2018				2017 ⁽¹⁾
United States	$	78,731	79	%	$	66,200	83	%	$	156,681	78	%	$	130,952	82	%
Other countries	20,495		21		13,443		17		43,760		22		27,933		18
Total	$	99,226	100	%	$	79,643	100	%	$	200,441	100	%	$	158,885	100	%

Contract with Customer, Assets and Liabilities

The following table presents the Company's contract assets, contract liabilities and certain information related to these balances as of and for the six months ended June 30, 2018 (in thousands):



	June 30, 2018
Contract assets ⁽¹⁾	$	11,021
Contract liabilities (deferred revenue)	138,039
Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period	43,282

⁽¹⁾ Of the $11.0 million balance of contract assets as of June 30, 2018, $0.6 million was classified as long-term and included within "Other assets" on the accompanying condensed consolidated balance sheet.

Contract liabilities (deferred revenue) consisted of the following (in thousands):



	June 30, 2018						December 31, 2017 ⁽¹⁾
	Current		Long-Term		Total		Current		Long-Term		Total
Warranty:
TASER Weapons	$	11,593	$	16,508	$	28,101	$	12,501	$	18,619	$	31,120
Software and Sensors	7,001		5,551		12,552		6,293		4,195		10,488
	18,594		22,059		40,653		18,794		22,814		41,608
Hardware:
TASER Weapons	6,264		14,787		21,051		4,164		11,401		15,565
Software and Sensors	15,931		15,379		31,310		16,956		14,781		31,737
	22,195		30,166		52,361		21,120		26,182		47,302
Software and Sensors Services	35,794		9,231		45,025		30,487		5,885		36,372
Total	$	76,583	$	61,456	$	138,039	$	70,401	$	54,881	$	125,282



	June 30, 2018						December 31, 2017 ⁽¹⁾
	Current		Long-Term		Total		Current		Long-Term		Total
TASER Weapons	$	17,857	$	31,295	$	49,152	$	16,665	$	30,020	$	46,685
Software and Sensors	58,726		30,161		88,887		53,736		24,861		78,597
Total	$	76,583	$	61,456	$	138,039	$	70,401	$	54,881	$	125,282

⁽¹⁾ Amounts as of December 31, 2017 have not been adjusted under the modified retrospective method of adoption of Topic 606, and are presented consistent with the prior period amounts reported under ASC 605.

Capitalized Contract Cost

As of June 30, 2018, the Company's assets for costs to obtain contracts were as follows (in thousands):



	June 30, 2018
Current deferred commissions ⁽¹⁾	$	5,941
Deferred commissions, net of current portion ⁽²⁾	13,766
	$	19,707

⁽¹⁾ Current deferred commissions are included within "Prepaid expenses and other current assets" on the accompanying condensed consolidated balance sheet.

⁽²⁾Deferred commissions, net of current portion, are included in "Other assets" on the accompanying condensed consolidated balance sheet.