Segment Information

12 Months Ended

Jul. 31, 2020

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 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,
	2020			2019			2018
Net revenue:
Lift	$	913,091		$	1,033,234		$	880,293
Ski school	189,131			215,060			189,910
Dining	160,763			181,837			161,402
Retail/rental	270,299			320,267			296,466
Other	177,159			205,803			194,851
Total Mountain net revenue	1,710,443			1,956,201			1,722,922
Lodging	248,414			314,662			284,643
Total Resort net revenue	1,958,857			2,270,863			2,007,565
Real Estate	4,847			712			3,988
Total net revenue	$	1,963,704		$	2,271,575		$	2,011,553
Segment operating expense:
Mountain	$	1,212,053		$	1,279,567		$	1,132,840
Lodging	245,145			286,562			259,637
Total Resort operating expense	1,457,198			1,566,129			1,392,477
Real Estate, net	9,182			5,609			3,546
Total segment operating expense	$	1,466,380		$	1,571,738		$	1,396,023
Gain on sale of real property	$	207		$	580		$	515
Mountain equity investment income, net	$	1,690		$	1,960		$	1,523
Reported EBITDA:
Mountain	$	500,080		$	678,594		$	591,605
Lodging	3,269			28,100			25,006
Resort	503,349			706,694			616,611
Real Estate	(4,128		)	(4,317		)	957
Total Reported EBITDA	$	499,221		$	702,377		$	617,568
Real estate held for sale and investment	$	96,844		$	101,021		$	99,385
Reconciliation of net income attributable to Vail Resorts, Inc. to Total Reported EBITDA:
Net income attributable to Vail Resorts, Inc.	$	98,833		$	301,163		$	379,898
Net income attributable to noncontrolling interests	10,222			22,330			21,332
Net income	109,055			323,493			401,230
Provision (benefit) from income taxes	7,378			75,472			(61,138		)
Income before provision (benefit) from income taxes	116,433			398,965			340,092
Depreciation and amortization	249,572			218,117			204,462
Asset impairments	28,372			—			—
(Gain) loss on disposal of fixed assets and other, net	(838		)	664			4,620
Change in fair value of contingent consideration	(2,964		)	5,367			(1,854		)
Investment income and other, net	(1,305		)	(3,086		)	(1,944		)
Foreign currency loss on intercompany loans	3,230			2,854			8,966
Interest expense, net	106,721			79,496			63,226
Total Reported EBITDA	$	499,221		$	702,377		$	617,568

Geographic Information

Net revenue and property, plant and equipment, net by geographic region are as follows (in thousands):

	Year Ended July 31,
Net revenue	2020		2019		2018
U.S.	$	1,655,961	$	1,865,062	$	1,610,323
International (1)	307,743		406,513		401,230
Total net revenue	$	1,963,704	$	2,271,575	$	2,011,553
			July 31,
Property, plant and equipment, net			2020		2019
U.S.			$	1,759,692	$	1,381,378
International (1)			432,987		461,122
Total property, plant and equipment, net			$	2,192,679	$	1,842,500

(1) 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 $223.3 million, $308.1 million, and $321.0 million of revenue for the years ended July 31, 2020, 2019 and 2018, respectively, and for $291.7 million and $319.4 million of property, plant and equipment, net as of July 31, 2020 and 2019, respectively.