3.	Net Income Per Common Share

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 three months ended April 30, 2011 and 2010 (in thousands, except per share amounts):


	Three Months Ended April 30,
	2011				2010
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	76,867	$	76,867	$	72,789	$	72,789

Weighted-average shares outstanding		36,038		36,038		36,271		36,271
Effect of dilutive securities		—		831		—		563

Total shares		36,038		36,869		36,271		36,834


Net income per share attributable to Vail Resorts	$	2.13	$	2.08	$	2.01	$	1.98

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 1,000 and approximately 35,000 for the three months ended April 30, 2011 and 2010, respectively.

Presented below is basic and diluted EPS for the nine months ended April 30, 2011 and 2010 (in thousands, except per share amounts):


	Nine months ended April 30,
	2011				2010
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	88,395	$	88,395	$	72,306	$	72,306

Weighted-average shares outstanding		35,988		35,988		36,239		36,239
Effect of dilutive securities		—		730		—		499

Total shares		35,988		36,718		36,239		36,738


Net income per share attributable to Vail Resorts	$	2.46	$	2.41	$	2.00	$	1.97

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 54,000 and approximately 12,000 for the nine months ended April 30, 2011 and 2010, respectively.