Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Reconciliation of Federal Statutory Rate on Loss before Income Taxes and before Gain from Sale of Equity Method Investment Rate to Effective Income Tax Rate

The reconciliation of the federal statutory rate on the loss before income taxes and before the gain from sale of equity method investment to the effective income tax rate for the years ended December 31 is as follows:


	2016			2015			2014
Statutory federal tax rate		(34.0	)%		(34.0	)%		(34.0	)%
State income taxes, net of federal income tax benefit		1.9			46.4			0.8
(Decrease) increase in valuation allowance		46.5			(138.4	)		46.9
Tax credits		(13.6	)		29.9			(12.4	)
Capital gain on sale to noncontrolling interest		3.9			237.8			—
Permanent items		0.9			21.2			0.4
Decrease in unremitted Vicor Custom Power earnings		(0.9	)		(108.7	)		—
Foreign rate differential and deferred items		(0.8	)		(18.2	)		(0.3	)
Book income attributable to noncontrolling interest		0.1			47.0			(0.6	)
Decrease in tax reserves		—			(248.6	)		(3.7	)
Other		(0.2	)		(0.1	)		—

		3.8	%		(165.7	)%		(2.9	)%

Schedule of Domestic and Foreign Components of Income (Loss) Before Income Taxes and before the Gain from Sale of Equity Method Investment

For financial reporting purposes, income (loss) before income taxes and before the gain from sale of equity method investment for the years ended December 31 include the following components (in thousands):


	2016			2015			2014
Domestic	$	(6,034	)	$	1,373		$	(14,223	)
Foreign		4			(1,615	)		(272	)

	$	(6,030	)	$	(242	)	$	(14,495	)

Schedule of Components of Provision (Benefit) for Income Taxes

Significant components of the provision (benefit) for income taxes for the years ended December 31 are as follows (in thousands):


	2016			2015			2014
Current:
Federal	$	—		$	144		$	(690	)
State		172			(473	)		147
Foreign		137			111			124

		309			(218	)		(419	)
Deferred:
Federal		(55	)		(274	)		(6	)
Foreign		(23	)		91			—

		(78	)		(183	)		(6	)

	$	231		$	(401	)	$	(425	)

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands):


	2016			2015
Deferred tax assets:
Research and development tax credit carryforwards	$	13,967		$	12,503
Net operating loss carryforwards		4,902			3,393
Stock-based compensation		4,066			3,993
Inventory reserves		3,143			2,979
Vacation accrual		1,928			1,768
Investment tax credit carryforwards		1,576			1,399
Alternative minimum tax credit carryforward		340			340
Deferred revenue		154			192
Unrealized loss on investments		136			149
Warranty reserves		73			202
Bad debt reserves		52			58
Other		331			735

Total deferred tax assets		30,668			27,711
Less: Valuation allowance for deferred tax assets		(29,274	)		(25,862	)

Net deferred tax assets		1,394			1,849
Deferred tax liabilities:
Prepaid expenses		(654	)		(713	)
Depreciation		(406	)		(787	)
Patent amortization		(296	)		(334	)
Unremitted Vicor Custom Power earnings		—			(55	)

Total deferred tax liabilities		(1,356	)		(1,889	)

Net deferred tax assets (liabilities)	$	38		$	(40	)

Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):


	2016			2015			2014
Balance on January 1	$	830		$	1,254		$	2,072
Additions based on tax provisions related to the current year		125			120			161
Reductions for tax positions of prior years		—			—			(967	)
Settlements		—			(480	)		—
Lapse of statute		(9	)		(64	)		(12	)

Balance on December 31	$	946		$	830		$	1,254