Net Income Per Common Share

9 Months Ended

Apr. 30, 2014

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 three months ended April 30, 2014 and 2013 (in thousands, except per share amounts):

	Three Months Ended April 30,
	2014				2013
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	117,946	$	117,946	$	97,640	$	97,640
Weighted-average shares outstanding	36,159		36,159		35,911		35,911
Effect of dilutive securities	—		895		—		863
Total shares	36,159		37,054		35,911		36,774
Net income per share attributable to Vail Resorts	$	3.26	$	3.18	$	2.72	$	2.66

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 4,000 and 25,000 for the three months ended April 30, 2014 and 2013, respectively.

Presented below is basic and diluted EPS for the nine months ended April 30, 2014 and 2013 (in thousands, except per share amounts):

	Nine Months Ended April 30,
	2014				2013
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	103,833	$	103,833	$	97,611	$	97,611
Weighted-average shares outstanding	36,105		36,105		35,835		35,835
Effect of dilutive securities	—		920		—		846
Total shares	36,105		37,025		35,835		36,681
Net income per share attributable to Vail Resorts	$	2.88	$	2.80	$	2.72	$	2.66

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 11,000 and 10,000 for the nine months ended April 30, 2014 and 2013, respectively.

During the three and nine months ended April 30, 2014, the Company paid cash dividends of $0.4150 and $0.8300 per share, respectively ($15.0 million and $30.0 million, respectively, in the aggregate). During the three and nine months ended April 30, 2013, the Company paid cash dividends of $0.2075 and $0.5825 per share, respectively ($7.5 million and $20.9 million, respectively, in the aggregate). On June 3, 2014 the Company’s Board of Directors declared a quarterly cash dividend of $0.4150 per share payable on July 8, 2014 to stockholders of record as of June 23, 2014.