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Segment Information
 12 Months Ended
Dec. 31, 2011
Segment Information [Abstract]  
SEGMENT INFORMATION

16.  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 VJCL. The V*I Chip segment includes V*I Chip Corporation, which designs, develops, manufactures and markets the Company’s factorized power architecture (“FPA”) products. The V*I Chip segment also includes the V*I 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 Vicor’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 Consolidated Financial Statements.

 

The following table provides significant segment financial data as of and for the years ended December 31 (in thousands):

 

                                                 
    BBU     V*I Chip     Picor     Corporate     Eliminations     Total  
    (1)     (1)                 (1)(2)        

2011:

                                                

Net revenues

   $ 194,830     $ 55,154     $ 13,183     $ —     $ (10,199 )    $ 252,968  

Income (loss) from operations

     31,938       (16,294 )      (1,239 )      (719 )      —       13,686  

Total assets

     82,096       30,701       7,098       119,231       (30,985 )      208,141  

Depreciation and amortization

     5,503       3,570       458       1,474       —       11,005  

2010:

                                                

Net revenues

   $ 217,018     $ 33,842     $ 11,061     $ —     $ (11,188 )    $ 250,733  

Income (loss) from operations

     55,619       (24,565 )      (1,282 )      (640 )      (10 )      29,122  

Total assets

     78,014       31,278       7,463       103,486       (15,329 )      204,912  

Depreciation and amortization

     4,788       3,500       470       1,464       —       10,222  

2009:

                                                

Net revenues

   $ 186,975       14,599     $ 6,143     $ —     $ (9,758 )    $ 197,959  

Income (loss) from operations

     29,173       (22,642 )      (4,265 )      (716 )      3,223       4,773  

Total assets

     204,611       19,124       9,352       98,209       (150,719 )      180,577  

Depreciation and amortization

     5,283       2,968       403       1,544       —       10,198  

 

(1) During the fourth quarter of 2010, the Company completed a recapitalization of V*I Chip. The impact of the recapitalization on V*I Chip was to eliminate its intercompany payable to BBU of approximately $172,100,000 and institute capital accounts totaling $50,000,000 as of December 31, 2010. The impact on segment reporting was to reduce Total assets for BBU and increase Eliminations by $172,100,000 as of December 31, 2010. There was no impact on the consolidated financial statements as a result of this recapitalization.

 

(2) The elimination for net revenues is principally related to inter-segment revenues of Picor to BBU and V*I Chip and for inter-segment revenues of V*I Chip to BBU. The elimination for total assets is principally related to inter-segment receivables due to BBU for the funding of V*I Chip operations and for the purchase of equipment for both V*I Chip and Picor.

During 2011, one customer accounted for approximately 14.9% of net revenues. The majority of this revenue was from the V*I Chip segment, with lesser amounts from BBU and Picor. During 2010, two customers accounted for approximately 12.3% and 11.5% of net revenues, respectively. During 2009, no customer accounted for more than 10% of net revenues. International sales, as a percentage of total net revenues, were approximately 57% in 2011 and 49% in 2010 and 41% in 2009, respectively. During 2011, net revenues from customers in Taiwan and Hong Kong, China accounted for approximately 15.3% and 11.8%, respectively, of total net revenues (11.8% and 11.4%, respectively, in 2010).