Segment Information

6 Months Ended

Jan. 31, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: Mountain, Lodging and Real Estate. The Company refers to “Resort” as the combination of the Mountain and Lodging segments. 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, and for the Real Estate segment, plus gain or loss 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 condensed financial statements as indicators of financial performance or liquidity.

The Company utilizes Reported EBITDA in evaluating the 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. 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 or loss 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 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,
	2018			2017			2018			2017
Net revenue:
Lift	$	381,912		$	358,251		$	407,380		$	379,677
Ski school	80,116			78,119			84,554			81,970
Dining	53,910			54,366			72,212			67,734
Retail/rental	115,446			123,233			160,853			159,712
Other	39,518			40,130			94,028			75,773
Total Mountain net revenue	670,902			654,099			819,027			764,866
Lodging	63,539			65,884			135,628			133,286
Total Resort net revenue	734,441			719,983			954,655			898,152
Real Estate	134			5,215			770			5,311
Total net revenue	$	734,575		$	725,198		$	955,425		$	903,463
Segment operating expense:
Mountain	$	365,605		$	355,239		$	572,689		$	523,492
Lodging	59,871			59,683			127,605			123,763
Resort	425,476			414,922			700,294			647,255
Real Estate	1,207			5,841			2,898			7,326
Total segment operating expense	$	426,683		$	420,763		$	703,192		$	654,581
Gain on sale of real property	$	515		$	—		$	515		$	6,466
Mountain equity investment (loss) income, net	$	(35	)	$	157		$	487		$	989
Reported EBITDA:
Mountain	$	305,262		$	299,017		$	246,825		$	242,363
Lodging	3,668			6,201			8,023			9,523
Resort	308,930			305,218			254,848			251,886
Real Estate	(558		)	(626		)	(1,613		)	4,451
Total Reported EBITDA	$	308,372		$	304,592		$	253,235		$	256,337
Real estate held for sale and investment	$	103,212		$	112,633		$	103,212		$	112,633
Reconciliation to net income attributable to Vail Resorts, Inc.:
Total Reported EBITDA	$	308,372		$	304,592		$	253,235		$	256,337
Depreciation and amortization	(51,404		)	(49,626		)	(100,028		)	(90,207		)
Change in estimated fair value of contingent consideration	—			(300		)	—			(600		)
Gain (loss) on disposal of fixed assets and other, net	538			(2,231		)	1,105			(2,781		)
Investment income and other, net	397			1,148			780			5,671
Foreign currency gain on intercompany loans	10,337			5,166			2,991			5,166
Interest expense, net	(15,973		)	(14,214		)	(31,147		)	(26,178		)
Income before (provision) benefit from income taxes	252,267			244,535			126,936			147,408
(Provision) benefit from income taxes	(3,594		)	(84,807		)	89,810			(51,298		)
Net income	248,673			159,728			216,746			96,110
Net income attributable to noncontrolling interests	(12,982		)	(10,549		)	(9,440		)	(9,518		)
Net income attributable to Vail Resorts, Inc.	$	235,691		$	149,179		$	207,306		$	86,592