Segment Information

6 Months Ended

Jan. 31, 2015

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 mountain resorts and Urban ski 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, plus gain on litigation settlement), 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 plus gain on litigation settlement. 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 January 31,						Six Months Ended January 31,
	2015			2014			2015			2014
Net revenue:
Lift	$	239,288		$	195,357		$	239,288		$	195,357
Ski school	57,295			46,930			57,295			46,930
Dining	38,619			32,602			46,658			40,066
Retail/rental	95,012			85,717			124,485			114,616
Other	32,817			31,050			55,691			52,018
Total Mountain net revenue	463,031			391,656			523,417			448,987
Lodging	59,364			56,187			117,857			113,401
Total Resort net revenue	522,395			447,843			641,274			562,388
Real estate	7,842			4,877			17,225			13,723
Total net revenue	$	530,237		$	452,720		$	658,499		$	576,111
Operating expense:
Mountain	$	268,966		$	243,512		$	400,918		$	368,286
Lodging	53,927			53,259			111,681			110,164
Total Resort operating expense	322,893			296,771			512,599			478,450
Real estate	9,871			8,006			21,485			17,237
Total segment operating expense	$	332,764		$	304,777		$	534,084		$	495,687
Gain on litigation settlement	$	—		$	—		$	16,400		$	—
Mountain equity investment income, net	200			14			525			617
Reported EBITDA:
Mountain	$	194,265		$	148,158		$	139,424		$	81,318
Lodging	5,437			2,928			6,176			3,237
Resort	199,702			151,086			145,600			84,555
Real estate	(2,029		)	(3,129		)	(4,260		)	(3,514		)
Total Reported EBITDA	$	197,673		$	147,957		$	141,340		$	81,041
Real estate held for sale and investment	$	151,103		$	184,101		$	151,103		$	184,101
Reconciliation to net income (loss) attributable to Vail Resorts, Inc.:
Total Reported EBITDA	$	197,673		$	147,957		$	141,340		$	81,041
Depreciation and amortization	(37,376		)	(36,204		)	(73,345		)	(70,360		)
Change in fair value of contingent consideration	—			—			4,550			—
Loss on disposal of fixed assets and other, net	(26		)	(1,044		)	(781		)	(1,473		)
Investment income, net	62			70			36			165
Interest expense	(13,807		)	(16,239		)	(27,375		)	(32,337		)
Income (loss) before (provision) benefit from income taxes	146,526			94,540			44,425			(22,964		)
(Provision) benefit from income taxes	(30,826		)	(35,340		)	6,951			8,727
Net income (loss)	$	115,700		$	59,200		$	51,376		$	(14,237	)
Net loss attributable to noncontrolling interests	62			63			110			124
Net income (loss) attributable to Vail Resorts, Inc.	$	115,762		$	59,263		$	51,486		$	(14,113	)