Segment Information

3 Months Ended

Oct. 31, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: Mountain, Lodging and Real Estate. The Mountain segment includes the operations of the Company’s ski resorts and related ancillary services. The Lodging segment includes the operations of all of the Company’s owned hotels, RockResorts, NPS concessionaire properties, condominium management, CME and golf operations. The Real Estate segment owns and develops real estate in and around the Company’s resort communities. The Company’s reportable segments, although integral to the success of the others, offer distinctly different products and services and require different types of management focus. As such, these segments are managed separately.

The Company reports its segment results using Reported EBITDA (defined as segment net revenue less segment operating expenses, plus or minus segment equity investment income or loss), which is a non-GAAP financial measure. The Company reports segment results in a manner consistent with management’s internal reporting of operating results to the chief operating decision maker (the Chief Executive Officer) for purposes of evaluating segment performance.

Reported EBITDA is not a measure of financial performance under GAAP. Items excluded from Reported EBITDA are significant components in understanding and assessing financial performance. Reported EBITDA should not be considered in isolation or as an alternative to, or substitute for, net income (loss), net change in cash and cash equivalents or other financial statement data presented in the Consolidated Condensed Financial Statements as indicators of financial performance or liquidity. Because Reported EBITDA is not a measurement determined in accordance with GAAP and thus is susceptible to varying calculations, Reported EBITDA as presented may not be comparable to other similarly titled measures of other companies.

The Company utilizes Reported EBITDA in evaluating performance of the Company and in allocating resources to its segments. Mountain Reported EBITDA consists of Mountain net revenue less Mountain operating expense plus or minus Mountain equity investment income or loss. Lodging Reported EBITDA consists of Lodging net revenue less Lodging operating expense. Real Estate Reported EBITDA consists of Real Estate net revenue less Real Estate operating expense. All segment expenses include an allocation of corporate administrative expenses. Assets are not allocated between segments, or used to evaluate performance, except as shown in the table below.

The following table presents financial information by reportable segment which is used by management in evaluating performance and allocating resources (in thousands):

	Three Months Ended October 31,
	2012			2011
Net revenue:
Lift tickets	$	—		$	—
Ski school	—			—
Dining	6,373			5,647
Retail/rental	26,725			26,964
Other	18,814			17,059
Total Mountain net revenue	51,912			49,670
Lodging	52,508			53,594
Total Resort net revenue	104,420			103,264
Real estate	11,930			13,109
Total net revenue	$	116,350		$	116,373
Operating expense:
Mountain	$	107,548		$	98,555
Lodging	51,806			55,301
Total Resort operating expense	159,354			153,856
Real estate	15,614			17,847
Total segment operating expense	$	174,968		$	171,703
Mountain equity investment income, net	$	434		$	430
Reported EBITDA:
Mountain	$	(55,202	)	$	(48,455	)
Lodging	702			(1,707		)
Resort	(54,500		)	(50,162		)
Real estate	(3,684		)	(4,738		)
Total Reported EBITDA	$	(58,184	)	$	(54,900	)
Real estate held for sale and investment	$	227,662		$	263,130
Reconciliation to net loss attributable to Vail Resorts, Inc:
Total Reported EBITDA	$	(58,184	)	$	(54,900	)
Depreciation and amortization	(31,679		)	(28,930		)
Loss on disposal of fixed assets, net	(2		)	(114		)
Investment income, net	54			64
Interest expense, net	(8,375		)	(8,241		)
Loss before benefit from income taxes	(98,186		)	(92,121		)
Benefit from income taxes	37,583			36,387
Net loss	$	(60,603	)	$	(55,734	)
Net loss attributable to noncontrolling interests	23			25
Net loss attributable to Vail Resorts, Inc.	$	(60,580	)	$	(55,709	)