Segment Information

6 Months Ended

Jun. 30, 2016

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 DC-DC converters and configurable products, and also includes the 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 many of the Company’s advanced power component 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. The Picor segment develops these products for use in the Company’s BBU and VI Chip modules, to be sold as complements to the Company’s BBU and VI Chip products, or for sale to third parties for separate (i.e., stand-alone) 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 segment financial data for the three months ended June 30 (in thousands):

	BBU		VI Chip			Picor			Corporate			Eliminations (1)			Total
2016:
Net revenues	$	40,576	$	10,418		$	4,321		$	—		$	(2,374	)	$	52,941
Income (loss) from operations		4,235		(4,508	)		(133	)		(195	)		—			(601	)
Total assets		190,135		19,583			6,111			71,513			(133,193	)		154,149
Depreciation and amortization		1,149		545			135			287			—			2,116
2015:
Net revenues	$	45,399	$	8,736		$	3,970		$	—		$	(1,986	)	$	56,119
Income (loss) from operations		6,627		(5,284	)		(374	)		(176	)		—			793
Total assets		157,170		16,138			5,658			85,119			(102,298	)		161,787
Depreciation and amortization		1,152		717			98			353			—			2,320

The following table provides segment financial data for the six months ended June 30 (in thousands):

	BBU		VI Chip			Picor			Corporate			Eliminations (1)			Total
2016:
Net revenues	$	77,445	$	18,165		$	7,276		$	—		$	(3,918	)	$	98,968
Income (loss) from operations		5,741		(10,216	)		(1,137	)		(418	)		—			(6,030	)
Total assets		190,135		19,583			6,111			71,513			(133,193	)		154,149
Depreciation and amortization		2,268		1,129			262			652			—			4,311
2015:
Net revenues	$	90,277	$	22,916		$	11,079		$	—		$	(4,136	)	$	120,136
Income (loss) from operations		12,006		(8,772	)		1,643			(474	)		—			4,403
Total assets		157,170		16,138			5,658			85,119			(102,298	)		161,787
Depreciation and amortization		2,305		1,516			195			707			—			4,723

(1) The elimination for net revenues is principally related to inter-segment sales by Picor to BBU and VI Chip and for inter-segment sales by 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.