Segment Information

9 Months Ended

Apr. 30, 2014

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/areas 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 mountain resort 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 each other, 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, 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 April 30,						Nine Months Ended April 30,
	2014			2013			2014			2013
Net revenue:
Lift	$	251,914		$	215,163		$	447,271		$	390,820
Ski school	62,512			53,531			109,442			95,254
Dining	42,303			37,876			82,369			74,075
Retail/rental	73,785			66,329			188,401			176,802
Other	30,073			29,118			82,091			78,719
Total Mountain net revenue	460,587			402,017			909,574			815,670
Lodging	66,293			53,834			179,694			152,885
Total Resort net revenue	526,880			455,851			1,089,268			968,555
Real estate	16,167			13,840			29,890			39,937
Total net revenue	$	543,047		$	469,691		$	1,119,158		$	1,008,492
Operating expense:
Mountain	$	233,301		$	207,953		$	601,587		$	536,498
Lodging	53,182			45,446			163,346			142,055
Total Resort operating expense	286,483			253,399			764,933			678,553
Real estate	18,445			16,996			35,682			49,349
Total segment operating expense	$	304,928		$	270,395		$	800,615		$	727,902
Mountain equity investment income, net	$	665		$	266		$	1,282		$	799
Reported EBITDA:
Mountain	$	227,951		$	194,330		$	309,269		$	279,971
Lodging	13,111			8,388			16,348			10,830
Resort	241,062			202,718			325,617			290,801
Real estate	(2,278		)	(3,156		)	(5,792		)	(9,412		)
Total Reported EBITDA	$	238,784		$	199,562		$	319,825		$	281,389
Real estate held for sale and investment	$	170,818		$	201,861		$	170,818		$	201,861
Reconciliation to net income attributable to Vail Resorts, Inc.:
Total Reported EBITDA	$	238,784		$	199,562		$	319,825		$	281,389
Depreciation and amortization	(35,588		)	(33,730		)	(105,948		)	(98,827		)
Gain (loss) on disposal of fixed assets, net	634			(224		)	(839		)	(757		)
Investment income, net	124			153			289			306
Interest expense	(16,408		)	(8,359		)	(48,745		)	(25,268		)
Income before provision for income taxes	187,546			157,402			164,582			156,843
Provision for income taxes	(69,680		)	(59,814		)	(60,953		)	(59,329		)
Net income	$	117,866		$	97,588		$	103,629		$	97,514
Net loss attributable to noncontrolling interests	80			52			204			97
Net income attributable to Vail Resorts, Inc.	$	117,946		$	97,640		$	103,833		$	97,611