10. 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 September 30 (in thousands):


	BBU		VI Chip			Picor		Corporate			Eliminations (1)			Total
2017:
Net revenues	$	38,529	$	14,745		$	6,360	$	—		$	(2,746	)	$	56,888
Income (loss) from operations		2,007		(2,952	)		1,359		(314	)		—			100
Total assets		227,408		33,021			11,934		64,864			(171,151	)		166,076
Depreciation and amortization		971		712			188		373			—			2,244
2016:
Net revenues	$	38,518	$	11,961		$	5,320	$	—		$	(2,572	)	$	53,227
Income (loss) from operations		3,734		(1,915	)		627		(173	)		—			2,273
Total assets		193,115		21,453			6,928		72,521			(138,979	)		155,038
Depreciation and amortization		1,025		531			142		375			—			2,073

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


	BBU		VI Chip			Picor			Corporate			Eliminations (1)			Total
2017:
Net revenues	$	115,141	$	42,835		$	19,553		$	—		$	(8,470	)	$	169,059
Income (loss) from operations		5,962		(10,761	)		3,825			(842	)		—			(1,816	)
Total assets		227,408		33,021			11,934			64,864			(171,151	)		166,076
Depreciation and amortization		2,944		2,000			558			1,088			—			6,590
2016:
Net revenues	$	115,963	$	30,126		$	12,596		$	—		$	(6,490	)	$	152,195
Income (loss) from operations		9,475		(12,131	)		(510	)		(591	)		—			(3,757	)
Total assets		193,115		21,453			6,928			72,521			(138,979	)		155,038
Depreciation and amortization		3,293		1,660			404			1,027			—			6,384

(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.