Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Segment Information

11. Segment Information

The Company has organized its business segments according to its key product lines. The Brick Business Unit segment (“BBU”) designs, develops, manufactures and markets the Company’s modular power converters and configurable products, and also includes the operations of the Company’s Westcor division, the six entities comprising Vicor Custom Power, and the BBU operations of Vicor Japan Company, Ltd. (“VJCL”). The VI Chip segment includes VI Chip Corporation, which designs, develops, manufactures and markets the Company’s factorized power architecture (“FPA”) products. The VI Chip segment also includes the VI Chip business conducted through VJCL. Picor Corporation designs, develops, manufactures and markets integrated circuits and related products for use in a variety of power management and power system applications. Picor develops these products to be sold as part of the Company’s products or to third parties for separate applications.

The Company’s chief operating decision maker evaluates performance and allocates resources based on segment revenues and segment operating income (loss). The operating income (loss) for each segment includes selling, general and administrative and research and development expenses directly attributable to the segment. Certain of the Company’s indirect overhead costs, which include corporate selling, general and administrative expenses, are allocated among the segments based upon an estimate of costs associated with each segment. Assets allocated to each segment are based upon specific identification of such assets, which include accounts receivable, inventories, fixed assets and certain other assets. The Corporate segment consists of those operations and assets shared by all segments. The costs of certain centralized executive and administrative functions are recorded in this segment, as are certain shared assets, most notably cash and cash equivalents, deferred tax assets, long-term investments, the Company’s facilities in Massachusetts, real estate and other assets. The Company’s accounting policies and method of presentation for segments are consistent with that used throughout the Condensed Consolidated Financial Statements.

The following table provides significant segment financial data as of and for the three months ended June 30, (in thousands):

	BBU		VI Chip			Picor			Corporate			Eliminations			Total
	(1)		(1)									(1)
2012:
Net revenues	$	45,822	$	9,520		$	2,401		$	—		$	(2,276	)	$	55,467
Income (loss) from operations		8,495		(7,012	)		(597	)		(177	)		—			709
Total assets		86,131		21,234			6,030			129,744			(34,297	)		208,842
Depreciation and amortization		1,243		898			102			369			—			2,612
2011:
Net revenues	$	49,066	$	15,048		$	3,638		$	—		$	(2,350	)	$	65,402
Income (loss) from operations		8,433		(3,706	)		(103	)		(240	)		—			4,384
Total assets		80,490		30,866			7,861			115,115			(19,232	)		215,100
Depreciation and amortization		1,403		901			112			357			—			2,773

The following table provides significant segment financial data as of and for the six months ended June 30, (in thousands):

	BBU		VI Chip			Picor			Corporate			Eliminations			Total
2012:
Net revenues	$	90,757	$	23,938		$	5,114		$	—		$	(4,674	)	$	115,135
Income (loss) from operations		14,458		(11,804	)		(1,113	)		(368	)		—			1,173
Total assets		86,131		21,234			6,030			129,744			(34,297	)		208,842
Depreciation and amortization		2,504		1,792			206			742			—			5,244
2011:
Net revenues	$	104,657	$	29,355		$	6,940		$	—		$	(5,095	)	$	135,857
Income (loss) from operations		19,326		(8,019	)		(42	)		(461	)		—			10,804
Total assets		80,490		30,866			7,861			115,115			(19,232	)		215,100
Depreciation and amortization		2,691		1,774			225			711			—			5,401

(1) The elimination for net revenues is principally related to inter-segment revenues of Picor to BBU and VI Chip and for inter-segment revenues of VI Chip to BBU. The elimination for total assets is principally related to inter-segment accounts receivable due to BBU for the funding of VI Chip operations and for the purchase of equipment for both VI Chip and Picor.