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  "documentTitle": "Axon Enterprise (formerly TASER) (AAXN)",
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  "presentationDate": "2019-06-19 00:00:00",
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  "notes": "Uses excerpts from 2018 and 2017 10-K filings to highlight the removal of specific overhead allocation language.",
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      "kind": "callout",
      "text": "Axon’s Segment Reporting Provides It Significant Flexibility To Put All Unallocated Costs To The Slower Growing Taser Segment",
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      "text": "Notice Carefully How Axon Removed “Overhead Allocation” and “Trade Show And Related Expenses” From Its Description of Costs Applied To Software and Sensors",
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      "text": "With Axon planning to triple the size of its new HQ, and Axon removing reference to \"overhead allocation\" to its Software and Sensors business, it would be able to allocate substantially more \"overhead\" to the slower growing Taser segment, while artificially inflating the segment performance of its faster growing Software and Sensors segment.",
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      "text": "By reading Axon’s segment reporting carefully, we see that it includes select costs for Software and Sensors, and “all other costs are included in the Taser segment”. With Axon planning to triple the size of its new HQ, and Axon removing reference to “overhead allocation” to its Software and Sensors business, it would be able to allocate substantially more “overhead” to the slower growing Taser segment, while artificially inflating the segment performance of its faster growing Software and Sensors segment. In addition, as of Q1’2019 Axon stopped providing SG&A by segment.",
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      "text": "All other costs are included in the TASER segment. — 2018 10-K",
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      "text": "16. Segment Data... overhead allocation based on direct labor, trade shows and related expenses... All other costs are included in the TASER Weapons segment.",
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      "text": "16. Segment Data... All other costs are included in the TASER segment.",
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      "text": "Why Might Axon Need 3x More Sqft For Its New HQ?",
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