Segment Information

9 Months Ended

Apr. 30, 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 and for the Real Estate segment, plus gain on sale of real property), 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 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 plus gain on sale of real property. 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,
	2015			2014			2015			2014
Net revenue:
Lift	$	285,249		$	251,914		$	524,537		$	447,271
Ski school	66,216			62,512			123,511			109,442
Dining	44,003			42,303			90,661			82,369
Retail/rental	71,078			73,785			195,563			188,401
Other	33,005			30,073			88,696			82,091
Total Mountain net revenue	499,551			460,587			1,022,968			909,574
Lodging	67,323			66,293			185,180			179,694
Total Resort net revenue	566,874			526,880			1,208,148			1,089,268
Real estate	12,469			16,167			29,694			29,890
Total net revenue	$	579,343		$	543,047		$	1,237,842		$	1,119,158
Operating expense:
Mountain	$	244,675		$	233,301		$	645,593		$	601,587
Lodging	54,726			53,182			166,407			163,346
Total Resort operating expense	299,401			286,483			812,000			764,933
Real estate	14,028			18,445			35,513			35,682
Total segment operating expense	$	313,429		$	304,928		$	847,513		$	800,615
Gain on litigation settlement	$	—		$	—		$	16,400		$	—
Gain on sale of real property	$	151		$	—		$	151		$	—
Mountain equity investment (loss) income, net	$	(129	)	$	665		$	396		$	1,282
Reported EBITDA:
Mountain	$	254,747		$	227,951		$	394,171		$	309,269
Lodging	12,597			13,111			18,773			16,348
Resort	267,344			241,062			412,944			325,617
Real estate	(1,408		)	(2,278		)	(5,668		)	(5,792		)
Total Reported EBITDA	$	265,936		$	238,784		$	407,276		$	319,825
Real estate held for sale and investment	$	137,740		$	170,818		$	137,740		$	170,818
Reconciliation to net income attributable to Vail Resorts, Inc.:
Total Reported EBITDA	$	265,936		$	238,784		$	407,276		$	319,825
Depreciation and amortization	(38,242		)	(35,588		)	(111,587		)	(105,948		)
Change in fair value of contingent consideration	—			—			4,550			—
(Loss) gain on disposal of fixed assets and other, net	(71		)	634			(852		)	(839		)
Investment income, net	119			124			155			289
Interest expense	(13,735		)	(16,408		)	(41,110		)	(48,745		)
Income before provision for income taxes	214,007			187,546			258,432			164,582
Provision for income taxes	(80,605		)	(69,680		)	(73,654		)	(60,953		)
Net income	$	133,402		$	117,866		$	184,778		$	103,629
Net loss attributable to noncontrolling interests	8			80			118			204
Net income attributable to Vail Resorts, Inc.	$	133,410		$	117,946		$	184,896		$	103,833