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Segment Information
12 Months Ended
Jul. 31, 2019
Segment Reporting [Abstract]  
Segment Information
Segment and Geographic Area 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, Colorado resort ground transportation operations 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 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 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,
  
2019
2018
2017
Net revenue:
 
 
 
Lift tickets
$
1,033,234

$
880,293

$
818,341

Ski school
215,060

189,910

177,748

Dining
181,837

161,402

150,587

Retail/rental
320,267

296,466

293,428

Other
205,803

194,851

171,682

Total Mountain net revenue
1,956,201

1,722,922

1,611,786

Lodging
314,662

284,643

278,514

Resort
2,270,863

2,007,565

1,890,300

Real Estate
712

3,988

16,918

Total net revenue
$
2,271,575

$
2,011,553

$
1,907,218

Segment operating expense:
 
 
 
Mountain
$
1,279,567

$
1,132,840

$
1,047,331

Lodging
286,562

259,637

251,427

Resort
1,566,129

1,392,477

1,298,758

Real Estate, net
5,609

3,546

24,083

Total segment operating expense
$
1,571,738

$
1,396,023

$
1,322,841

Gain on sale of real property
$
580

$
515

$
6,766

Mountain equity investment income, net
$
1,960

$
1,523

$
1,883

Reported EBITDA:
 
 
 
Mountain
$
678,594

$
591,605

$
566,338

Lodging
28,100

25,006

27,087

Resort
706,694

616,611

593,425

Real Estate
(4,317
)
957

(399
)
Total Reported EBITDA
$
702,377

$
617,568

$
593,026

Real estate held for sale and investment
$
101,021

$
99,385

$
103,405

Reconciliation to net income attributable to Vail Resorts, Inc.:
 
 
 
Total Reported EBITDA
$
702,377

$
617,568

$
593,026

Depreciation and amortization
(218,117
)
(204,462
)
(189,157
)
Change in fair value of contingent consideration
(5,367
)
1,854

(16,300
)
Loss on disposal of fixed assets and other, net
(664
)
(4,620
)
(6,430
)
Investment income and other, net
3,086

1,944

6,114

Foreign currency (loss) gain on intercompany loans
(2,854
)
(8,966
)
15,285

Interest expense, net
(79,496
)
(63,226
)
(54,089
)
Income before (provision) benefit from income taxes
398,965

340,092

348,449

(Provision) benefit from income taxes
(75,472
)
61,138

(116,731
)
Net income
323,493

401,230

231,718

Net income attributable to noncontrolling interests
(22,330
)
(21,332
)
(21,165
)
Net income attributable to Vail Resorts, Inc.
$
301,163

$
379,898

$
210,553



Geographic Information

Net revenue and property, plant and equipment, net by geographic region are as follows (in thousands).
 
Year Ended July 31,
Net revenue
2019
2018
2017
U.S.
$
1,865,062

$
1,610,323

$
1,578,276

International (a)
406,513

401,230

328,942

Total net revenue
$
2,271,575

$
2,011,553

$
1,907,218

 
 
 
 
 
 
As of July 31,
Property, plant and equipment, net
 
2019
2018
U.S.
 
$
1,381,378

$
1,210,169

International (a)
 
461,122

417,050

Total property, plant and equipment, net
 
$
1,842,500

$
1,627,219


(a) The only individual international country (i.e. except the U.S.) to account for more than 10% of the Company’s revenue and property plant and equipment, net was Canada. Canada accounted for $308.1 million, $321.0 million and $257.8 million of revenue for the years ended July 31, 2019, 2018 and 2017, respectively, and for $319.4 million and $316.8 million of property, plant and equipment, net as of July 31, 2019 and 2018, respectively.