Segment Information

9 Months Ended

Apr. 30, 2012

Segment Information [Abstract]

Segment Information

10. Segment Information

The Company has three reportable segments: Mountain, Lodging and Real Estate. The Mountain segment includes the operations of the Company's ski resorts and related ancillary services. The Lodging segment includes the operations of all of the Company's owned hotels, RockResorts, certain National Park Service concessionaire properties including GTLC, condominium management, CME and golf operations. The Real Estate segment owns and develops 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), which is a non-GAAP financial measure. 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.

Reported EBITDA is not a measure of financial performance under GAAP. 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. Because Reported EBITDA is not a measurement determined in accordance with GAAP and thus is susceptible to varying calculations, Reported EBITDA as presented may not be comparable to other similarly titled measures of other companies.

The Company utilizes Reported EBITDA in evaluating 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. 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						Nine Months Ended
	April 30,						April 30,
	2012			2011			2012			2011
Net revenue:
Lift tickets	$	188,712		$	187,341		$	342,411		$	342,514
Ski school		47,040			46,522			84,292			83,818
Dining		31,388			31,733			61,757			62,244
Retail/rental		60,144			59,364			160,958			155,737
Other		27,302			26,458			70,776			66,161
Total Mountain net revenue		354,586			351,418			720,194			710,474
Lodging		53,972			57,477			155,872			160,270
Total Resort net revenue		408,558			408,895			876,066			870,744
Real Estate		12,587			13,221			34,784			187,629
Total net revenue	$	421,145		$	422,116		$	910,850		$	1,058,373
Operating expense:
Mountain	$	184,211		$	182,136		$	478,256		$	456,496
Lodging		47,103			48,643			149,497			149,012
Total Resort operating expense		231,314			230,779			627,753			605,508
Real estate		16,069			18,309			46,479			188,716
Total segment operating expense	$	247,383		$	249,088		$	674,232		$	794,224
Mountain equity investment income, net	$	336		$	406		$	944		$	1,324
Reported EBITDA:
Mountain	$	170,711		$	169,688		$	242,882		$	255,302
Lodging		6,869			8,834			6,375			11,258
Resort		177,580			178,522			249,257			266,560
Real Estate		(3,482	)		(5,088	)		(11,695	)		(1,087	)
Total Reported EBITDA	$	174,098		$	173,434		$	237,562		$	265,473
Real estate held for sale and investment	$	248,262		$	282,162		$	248,262		$	282,162
Reconciliation to net income attributable to Vail Resorts, Inc:
Total Reported EBITDA	$	174,098		$	173,434		$	237,562		$	265,473
Depreciation and amortization		(33,266	)		(30,937	)		(95,245	)		(88,945	)
Loss on disposal of fixed assets, net		(90	)		(35	)		(1,123	)		(343	)
Asset impairment charge		—			(2,561	)		—			(2,561	)
Investment (loss) income		(18	)		114			356			578
Interest expense, net		(8,443	)		(8,515	)		(25,226	)		(25,110	)
Loss on extinguishment of debt		—			(6,615	)		—			(6,615	)
Income before provision for income taxes		132,281			124,885			116,324			142,477
Provision for income taxes		(52,753	)		(48,045	)		(46,108	)		(54,140	)
Net income	$	79,528		$	76,840		$	70,216		$	88,337
Net loss attributable to noncontrolling interests		41			27			34			58
Net income attributable to Vail Resorts, Inc.	$	79,569		$	76,867		$	70,250		$	88,395