Net Income Per Common Share

12 Months Ended

Jul. 31, 2011

Net Income Per Common Share

Net Income Per Common Share

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. 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 the Company. Presented below is basic and diluted EPS for the years ended July 31, 2011, 2010 and 2009 (in thousands, except per share amounts):

	Year Ended July 31,
	2011				2010				2009
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts, Inc.	$	34,489	$	34,489	$	30,385	$	30,385	$	48,950	$	48,950
Weighted-average shares outstanding		36,009		36,009		36,212		36,212		36,546		36,546
Effect of dilutive securities		--		745		--		519		--		127
Total shares		36,009		36,754		36,212		36,731		36,546		36,673
Net income per share attributable to Vail Resorts, Inc.	$	0.96	$	0.94	$	0.84	$	0.83	$	1.34	$	1.33

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 57,000, 22,000 and 795,000 for the years ended July 31, 2011, 2010 and 2009, respectively.

On June 7, 2011 the Company's Board of Directors approved the commencement of a regular quarterly cash dividend on our common stock at an annual rate estimated to be $0.60 per share, subject to quarterly declaration. During the three months ended July 31, 2011, the Company paid cash dividends of $0.15 per share ($5.4 million in the aggregate). On September 20, 2011 the Company's Board of Directors approved a quarterly cash dividend of $0.15 per share payable on October 27, 2011 to stockholders of record as of October 12, 2011.