Net Income Per Common Share

12 Months Ended

Jul. 31, 2016

Earnings Per Share Reconciliation [Abstract]

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, 2016, 2015 and 2014 (in thousands, except per share amounts):



	Year Ended July 31,
	2016				2015				2014
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	149,754	$	149,754	$	114,754	$	114,754	$	28,478	$	28,478
Weighted-average shares outstanding	36,276		36,276		36,342		36,342		36,127		36,127
Effect of dilutive securities	—		1,036		—		1,064		—		930
Total shares	36,276		37,312		36,342		37,406		36,127		37,057
Net income per share attributable to Vail Resorts	$	4.13	$	4.01	$	3.16	$	3.07	$	0.79	$	0.77

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 18,000, 11,000 and 17,000 for the years ended July 31, 2016, 2015 and 2014, 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 9, 2016, the Company’s Board of Directors approved an increase of approximately 30% in the annual cash dividend to an annual rate of $3.24 per share, subject to quarterly declaration. For the year ended July 31, 2016, the Company paid cash dividends of $2.865 per share ($103.8 million in the aggregate). On September 23, 2016 the Company’s Board of Directors approved a quarterly cash dividend of $0.81 per share payable on October 25, 2016 to stockholders of record as of October 7, 2016.