Revenues (Tables)

9 Months Ended

Sep. 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	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 our revenues disaggregated by geography (in thousands):



	Three Months Ended September 30,								Nine Months Ended September 30,
	2018				2017 ⁽¹⁾				2018				2017 ⁽¹⁾
United States	$	88,125	84	%	$	73,203	81	%	$	244,806	80	%	$	204,155	82	%
Other countries	16,711		16		17,059		19		60,471		20		44,992		18
Total	$	104,836	100	%	$	90,262	100	%	$	305,277	100	%	$	249,147	100	%

⁽¹⁾ Amounts for the three and nine months ended September 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 our revenues by primary product and service offering (in thousands):



	Three Months Ended September 30, 2018						Three Months Ended September 30, 2017 ⁽¹⁾
	TASER Weapons		Software and Sensors		Total		TASER Weapons		Software and Sensors		Total
TASER X26P	$	17,998	$	—	$	17,998	$	13,264	$	—	$	13,264
TASER X2	20,392		—		20,392		22,717		—		22,717
TASER Pulse and Bolt	1,402		—		1,402		1,069		—		1,069
Single cartridges	18,406		—		18,406		17,474		—		17,474
Axon Body	—		4,744		4,744		—		4,527		4,527
Axon Flex	—		1,325		1,325		—		2,563		2,563
Axon Fleet	—		1,809		1,809		—		1,113		1,113
Axon Dock	—		2,178		2,178		—		2,639		2,639
Axon Evidence and cloud services	—		23,915		23,915		—		16,200		16,200
TASER Cam	—		717		717		—		922		922
Extended warranties	4,123		3,161		7,284		3,086		1,945		5,031
Other	1,345		3,321		4,666		1,806		937		2,743
Total	$	63,666	$	41,170	$	104,836	$	59,416	$	30,846	$	90,262



	Nine Months Ended September 30, 2018						Nine Months Ended September 30, 2017 ⁽¹⁾
	TASER Weapons		Software and Sensors		Total		TASER Weapons		Software and Sensors		Total
TASER X26P	$	52,618	$	—	$	52,618	$	45,167	$	—	$	45,167
TASER X2	62,686		—		62,686		57,755		—		57,755
TASER Pulse and Bolt	3,849		—		3,849		2,892		—		2,892
Single cartridges	51,763		—		51,763		49,005		—		49,005
Axon Body	—		15,082		15,082		—		11,725		11,725
Axon Flex	—		4,529		4,529		—		7,889		7,889
Axon Fleet	—		6,640		6,640		—		1,113		1,113
Axon Dock	—		7,332		7,332		—		7,409		7,409
Axon Evidence and cloud services	—		64,513		64,513		—		40,698		40,698
TASER Cam	—		2,839		2,839		—		2,407		2,407
Extended warranties	11,567		8,521		20,088		8,920		4,982		13,902
Other	5,331		8,007		13,338		6,364		2,821		9,185
Total	$	187,814	$	117,463	$	305,277	$	170,103	$	79,044	$	249,147

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 nine months ended September 30, 2018 (in thousands):



	September 30, 2018
Contract assets, net	$	13,263
Contract liabilities (deferred revenue)	159,019
Revenue recognized in the period from:
Amounts included in contract liabilities at the beginning of the period	63,475

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



	September 30, 2018						December 31, 2017 ⁽¹⁾
	Current		Long-Term		Total		Current		Long-Term		Total
Warranty:
TASER Weapons	$	11,256	$	18,085	$	29,341	$	12,501	$	18,619	$	31,120
Software and Sensors	8,525		5,195		13,720		6,293		4,195		10,488
	19,781		23,280		43,061		18,794		22,814		41,608
Hardware:
TASER Weapons	7,389		15,927		23,316		4,164		11,401		15,565
Software and Sensors	17,681		19,833		37,514		16,956		14,781		31,737
	25,070		35,760		60,830		21,120		26,182		47,302
Software and Sensors Services	44,786		10,342		55,128		30,487		5,885		36,372
Total	$	89,637	$	69,382	$	159,019	$	70,401	$	54,881	$	125,282



	September 30, 2018						December 31, 2017 ⁽¹⁾
	Current		Long-Term		Total		Current		Long-Term		Total
TASER Weapons	$	18,645	$	34,012	$	52,657	$	16,665	$	30,020	$	46,685
Software and Sensors	70,992		35,370		106,362		53,736		24,861		78,597
Total	$	89,637	$	69,382	$	159,019	$	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 September 30, 2018, our assets for costs to obtain contracts were as follows (in thousands):



	September 30, 2018
Current deferred commissions ⁽¹⁾	$	6,207
Deferred commissions, net of current portion ⁽²⁾	14,175
	$	20,382

⁽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.