Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

12. 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. The Picor segment includes Picor Corporation, which 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 for the three months ended September 30, (in thousands):

	BBU		VI Chip			Picor			Corporate			Eliminations (1)			Total
2014:
Net revenues	$	45,972	$	10,321		$	4,081		$	—		$	(1,972	)	$	58,402
Income (loss) from operations		2,369		(6,429	)		156			(228	)		—			(4,132	)
Total assets		149,125		18,876			4,945			77,397			(91,624	)		158,719
Depreciation and amortization		1,155		850			103			351			—			2,459
2013:
Net revenues	$	42,331	$	12,457		$	2,836		$	—		$	(2,533	)	$	55,091
Income (loss) from operations		5,162		(5,555	)		(696	)		(266	)		—			(1,355	)
Total assets		119,739		19,898			4,345			98,614			(61,718	)		180,878
Depreciation and amortization		1,296		760			96			375			—			2,527

The following table provides significant segment financial data for the nine months ended September 30, (in thousands):

	BBU		VI Chip			Picor			Corporate			Eliminations (1)			Total
2014:
Net revenues	$	137,546	$	24,296		$	9,698		$	—		$	(6,544	)	$	164,996
Income (loss) from operations		10,030		(22,682	)		(1,371	)		(562	)		—			(14,585	)
Total assets		149,125		18,876			4,945			77,397			(91,624	)		158,719
Depreciation and amortization		3,506		2,429			309			1,069			—			7,313
2013:
Net revenues	$	120,743	$	22,503		$	7,426		$	—		$	(6,770	)	$	143,902
Income (loss) from operations		9,752		(23,142	)		(2,711	)		(732	)		—			(16,833	)
Total assets		119,739		19,898			4,345			98,614			(61,718	)		180,878
Depreciation and amortization		3,773		2,468			315			999			—			7,555

(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 and Picor operations.