Stock-Based Compensation and Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Stock-based compensation expense for the years ended December 31 was as follows (in thousands):


	2013		2012		2011
Cost of revenues	$	163	$	45	$	68
Selling, general and administrative		1,942		864		1,188
Research and development		345		335		667

Total stock based compensation	$	2,450	$	1,244	$	1,923

Weighted-Average Assumptions for Fair Value for Stock Options

The fair value for the options was estimated at the date of grant using a Black-Scholes option pricing model under all methods with the following weighted-average assumptions:


	Non Performance- based Stock Options
Vicor:	2013			2012			2011
Risk-free interest rate		1.2	%		0.7	%		1.8	%
Expected dividend yield		0.0	%		0.6	%		1.6	%
Expected volatility		39	%		52	%		54	%
Expected lives (years)		4.9			4.1			5.0

VI Chip:	2013			2012			2011
Risk-free interest rate		1.6	%		1.2	%		1.5	%
Expected dividend yield		—			—			—
Expected volatility		48	%		50	%		49	%
Expected lives (years)		6.5			6.5			6.5

Picor:	2013			2012			2011
Risk-free interest rate		1.2	%		1.2	%		1.6	%
Expected dividend yield		—			—			—
Expected volatility		49	%		50	%		52	%
Expected lives (years)		6.5			6.5			6.5

Vicor Plan [Member]

Stock-Based Compensation Expense

A summary of the activity under Vicor’s stock option plans as of December 31, 2013 and changes during the year then ended, is presented below (in thousands except for share and weighted-average data):


	Options Outstanding			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding on December 31, 2012		1,796,475		$	12.99
Granted (1)		1,819,345		$	7.43
Forfeited and expired (1)		(1,624,142	)	$	13.25
Exercised		(2,430	)	$	5.41

Outstanding on December 31, 2013		1,989,248		$	7.71		9.18	$	11,399

Exercisable on December 31, 2013		54,284		$	9.72		5.28	$	217

Vested or expected to vest as of December 31, 2013 (2)		1,709,313		$	7.60		9.18	$	9,983

(1)	Includes Option Exchange.

(2)	In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options.

Picor Plan [Member]

Stock-Based Compensation Expense

A summary of the activity under the 2001 Picor Plan as of December 31, 2013 and changes during the year then ended, is presented below (in thousands except for share and weighted-average data):


	Options Outstanding			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding on December 31, 2012		10,215,367		$	0.65
Granted		170,000		$	0.64
Forfeited and expired		(380,000	)	$	0.25
Exercised		(601,000	)	$	0.75

Outstanding on December 31, 2013		9,404,367		$	0.66		6.18	$	351

Exercisable on December 31, 2013		5,869,044		$	0.69		5.39	$	204

Vested or expected to vest as of December 31, 2013 (1)		9,275,632		$	0.66		6.04	$	347

(1)	In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options.

Vi Chip Plan [Member]

Stock-Based Compensation Expense

A summary of the activity under the 2007 VI Chip Plan as of December 31, 2013 and changes during the year then ended, is presented below (in thousands except for share and weighted-average data):


	Options Outstanding			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding on December 31, 2012		10,525,000		$	1.00
Granted		560,000		$	1.00
Forfeited and expired		(340,750	)	$	1.00
Exercised		—		$	—

Outstanding on December 31, 2013 (1)		10,744,250		$	1.00		4.78	$	—

Exercisable on December 31, 2013		7,267,600		$	1.00		3.52	$	—

Vested or expected to vest as of December 31, 2013 (2)		10,273,500		$	1.00		4.66	$	—

(1)	Of the total VI Chip options outstanding on December 31, 2013, 5,500,000 options have been granted to the Company’s Chief Executive Officer.

(2)	In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest is calculated by applying an estimated forfeiture rate to the unvested options.