17. 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 “EVIDENCE.com & Video” segment). The Company includes only revenues and costs directly attributable to the EVIDENCE.com & Video segment in that segment. Included in EVIDENCE.com & Video 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 EVIDENCE.com & Video 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):


	2013
	TASER Weapons			EVIDENCE.com & Video			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 & administrative		40,201			6,383			46,584
Research & development		4,311			5,577			9,888
Litigation judgment recovery		1,450			—			1,450
Gain on write down / disposal of property and equipment, net		(27	)		—			(27	)

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


	2012
	TASER Weapons			EVIDENCE.com & Video			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 & administrative		35,576			3,510			39,086
Research & development		3,938			4,201			8,139
Litigation judgment		(2,200	)		—			(2,200	)
Loss on write down / disposal of property and equipment, net		161			—			161

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


	2011
	TASER Weapons		EVIDENCE.com & Video			Total
Product sales	$	86,675	$	3,001		$	89,676
Service revenue		—		352			352

Net sales		86,675		3,353			90,028

Cost of products sold		34,213		2,693			36,906
Cost of services delivered		—		4,847			4,847
Excess inventory charges		1,749		1,997			3,746

Gross margin		50,713		(6,184	)		44,529

Sales, general & administrative		34,794		3,207			38,001
Research & development		5,445		4,544			9,989
Litigation judgment		3,301		—			3,301
Loss on impairment		1,354		—			1,354
Loss on write down / disposal of property and equipment, net		643		2,157			2,800

Income (loss) from operations	$	5,176	$	(16,092	)	$	(10,916	)

Purchase of property and equipment	$	1,501	$	353		$	1,854
Purchase of intangible assets		413		—			413
Depreciation and amortization		5,409		2,688			8,097