Segment Information

12 Months Ended

Jul. 31, 2016

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/ski areas and related ancillary activities. The Lodging segment includes the operations of the Company’s owned hotels, RockResorts, NPS concessionaire properties, condominium management, CME and mountain resort golf operations. The Real Estate segment owns, develops and sells real estate in and around the Company’s resort communities. The Company’s reportable segments, although integral to the success of the others, 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). The Company reports segment results in a manner consistent with management’s internal reporting of operating results to the chief operating decision maker (Chief Executive Officer) for purposes of evaluating segment performance.

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 financial statements as indicators of financial performance or liquidity.

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 expense. Assets are not allocated between segments, or used to evaluate performance, except as shown in the table below. The accounting policies specific to each segment are the same as those described in Note 2, Summary of Significant Accounting Policies.

Following is key financial information by reportable segment which is used by management in evaluating performance and allocating resources (in thousands):

	Year Ended July 31,
	2016			2015			2014
Net revenue:
Lift tickets	$	658,047		$	536,458		$	447,271
Ski school	143,249			126,206			109,442
Dining	121,008			101,010			89,892
Retail/rental	241,134			219,153			210,387
Other	141,166			121,202			106,581
Total Mountain net revenue	1,304,604			1,104,029			963,573
Lodging	274,554			254,553			242,287
Resort	1,579,158			1,358,582			1,205,860
Real Estate	22,128			41,342			48,786
Total net revenue	$	1,601,286		$	1,399,924		$	1,254,646
Segment operating expense:
Mountain	$	881,472		$	777,147		$	712,785
Lodging	246,385			232,877			225,563
Resort	1,127,857			1,010,024			938,348
Real Estate	24,639			48,408			55,826
Total segment operating expense	$	1,152,496		$	1,058,432		$	994,174
Gain on litigation settlement	$	—		$	16,400		$	—
Gain on sale of real property	$	5,295		$	151		$	—
Mountain equity investment income, net	$	1,283		$	822		$	1,262
Reported EBITDA:
Mountain	$	424,415		$	344,104		$	252,050
Lodging	28,169			21,676			16,724
Resort	452,584			365,780			268,774
Real Estate	2,784			(6,915		)	(7,040		)
Total Reported EBITDA	$	455,368		$	358,865		$	261,734
Real estate held for sale and investment	$	111,088		$	129,825		$	157,858
Reconciliation to net income attributable to Vail Resorts, Inc.:
Total Reported EBITDA	$	455,368		$	358,865		$	261,734
Depreciation and amortization	(161,488		)	(149,123		)	(140,601		)
Change in fair value of contingent consideration	(4,200		)	3,650			(1,400		)
Loss on disposal of fixed assets and other, net	(5,418		)	(2,057		)	(1,208		)
Investment income, net	723			246			375
Interest expense	(42,366		)	(51,241		)	(63,997		)
Loss on extinguishment of debt	—			(11,012		)	(10,831		)
Income before provision for income taxes	242,619			149,328			44,072
Provision for income taxes	(93,165		)	(34,718		)	(15,866		)
Net income	149,454			114,610			28,206
Net loss attributable to noncontrolling interests	300			144			272
Net income attributable to Vail Resorts, Inc.	$	149,754		$	114,754		$	28,478