Net Income Per Common Share

12 Months Ended

Jul. 31, 2012

Earnings Per Share Reconciliation [Abstract]

Net Income Per Common Share

Net Income Per Common Share

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income attributable to Vail Resorts stockholders by the weighted-average shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, resulting in the issuance of shares of common stock that would then share in the earnings of Vail Resorts. Presented below is basic and diluted EPS for the years ended July 31, 2012, 2011 and 2010 (in thousands, except per share amounts):

	Year Ended July 31,
	2012				2011				2010
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	16,453	$	16,453	$	34,489	$	34,489	$	30,385	$	30,385
Weighted-average shares outstanding	36,004		36,004		36,009		36,009		36,212		36,212
Effect of dilutive securities	—		669		—		745		—		519
Total shares	36,004		36,673		36,009		36,754		36,212		36,731
Net income per share attributable to Vail Resorts	$	0.46	$	0.45	$	0.96	$	0.94	$	0.84	$	0.83

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. The number of shares issuable on the exercise of share based awards that were excluded from the calculation of diluted net income per share because the effect of their inclusion would have been anti-dilutive totaled 36,000, 57,000 and 22,000 for the years ended July 31, 2012, 2011 and 2010, respectively.

On June 7, 2011 the Company’s Board of Directors approved the commencement of a regular quarterly cash dividend on the Company's common stock at an annual rate of $0.60 per share, subject to quarterly declaration. On March 5, 2012 the Company’s Board of Directors approved a 25% increase to the annual cash dividend to an annual rate of $0.75 per share, subject to quarterly declaration. For the year ended July 31, 2012, the Company paid cash dividends of $0.6750 per share ($24.2 million in the aggregate). On September 21, 2012 the Company’s Board of Directors approved a quarterly cash dividend of $0.1875 per share payable on October 25, 2012 to stockholders of record as of October 10, 2012.