Net Income Per Common Share

12 Months Ended

Jul. 31, 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 years ended July 31, 2014, 2013 and 2012 (in thousands, except per share amounts):

	Year Ended July 31,
	2014				2013				2012
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	28,478	$	28,478	$	37,743	$	37,743	$	16,453	$	16,453
Weighted-average shares outstanding	36,127		36,127		35,859		35,859		36,004		36,004
Effect of dilutive securities	—		930		—		874		—		669
Total shares	36,127		37,057		35,859		36,733		36,004		36,673
Net income per share attributable to Vail Resorts	$	0.79	$	0.77	$	1.05	$	1.03	$	0.46	$	0.45

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 approximately 17,000, 19,000 and 36,000 for the years ended July 31, 2014, 2013 and 2012, respectively.

In fiscal 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. Since the initial commencement of a regular quarterly cash dividend, the Company's Board of Directors has annually approved an increase to the cash dividend on the Company's common stock and on March 10, 2014, the Company’s Board of Directors approved an increase of 100% in the annual cash dividend to an annual rate of $1.66 per share, subject to quarterly declaration. For the year ended July 31, 2014, the Company paid cash dividends of $1.245 per share ($45.0 million in the aggregate). On September 23, 2014 the Company’s Board of Directors approved a quarterly cash dividend of $0.4150 per share payable on October 22, 2014 to stockholders of record as of October 7, 2014.