Segment Information

3 Months Ended

Oct. 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 in the U.S., 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 (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 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 October 31,
	2015			2014
Net revenue:
Lift	$	20,153		$	—
Ski school	3,384			—
Dining	12,355			8,039
Retail/rental	32,389			29,473
Other	32,652			22,874
Total Mountain net revenue	100,933			60,386
Lodging	64,286			58,493
Total Resort net revenue	165,219			118,879
Real estate	9,348			9,383
Total net revenue	$	174,567		$	128,262
Operating expense:
Mountain	$	151,158		$	131,952
Lodging	61,437			57,754
Total Resort operating expense	212,595			189,706
Real estate	9,341			11,614
Total segment operating expense	$	221,936		$	201,320
Gain on litigation settlement	—			16,400
Gain on sale of real property	1,159			—
Mountain equity investment income, net	842			325
Reported EBITDA:
Mountain	$	(49,383	)	$	(54,841	)
Lodging	2,849			739
Resort	(46,534		)	(54,102		)
Real estate	1,166			(2,231		)
Total Reported EBITDA	$	(45,368	)	$	(56,333	)
Real estate held for sale and investment	$	120,769		$	157,182
Reconciliation to net loss attributable to Vail Resorts, Inc.:
Total Reported EBITDA	$	(45,368	)	$	(56,333	)
Depreciation and amortization	(38,700		)	(35,969		)
Change in fair value of contingent consideration	—			4,550
Loss on disposal of fixed assets and other, net	(1,779		)	(755		)
Investment income (loss), net	198			(26		)
Interest expense	(10,595		)	(13,568		)
Loss before benefit from income taxes	(96,244		)	(102,101		)
Benefit from income taxes	36,574			37,777
Net loss	$	(59,670	)	$	(64,324	)
Net loss attributable to noncontrolling interests	83			48
Net loss attributable to Vail Resorts, Inc.	$	(59,587	)	$	(64,276	)