Net Income Per Common Share

9 Months Ended

Apr. 30, 2012

Net Income Per Common Share [Abstract]

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 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, 2012 and 2011 (in thousands, except per share amounts):

	Three Months Ended April 30,
	2012				2011
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	79,569	$	79,569	$	76,867	$	76,867
Weighted-average shares outstanding		36,032		36,032		36,038		36,038
Effect of dilutive securities		—		672		—		831
Total shares		36,032		36,704		36,038		36,869
Net income per share attributable to Vail Resorts	$	2.21	$	2.17	$	2.13	$	2.08

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. 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 42,000 and 1,000 for the three months ended April 30, 2012 and 2011, respectively.

Presented below is basic and diluted EPS for the nine months ended April 30, 2012 and 2011 (in thousands, except per share amounts):

	Nine Months Ended April 30,
	2012				2011
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	70,250	$	70,250	$	88,395	$	88,395
Weighted-average shares outstanding		36,034		36,034		35,988		35,988
Effect of dilutive securities		—		630		—		730
Total shares		36,034		36,664		35,988		36,718
Net income per share attributable to Vail Resorts	$	1.95	$	1.92	$	2.46	$	2.41

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. 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 24,000 and 54,000 for the nine months ended April 30, 2012 and 2011, respectively.

On June 7, 2011 the Company's Board of Directors approved the commencement of a regular quarterly cash dividend on its common stock at an annual rate of $0.60 per share, subject to quarterly declaration. On March 5, 2012 the Company's Board of Directors approved a 25% increase to the annual cash dividend to an annual rate of $0.75 per share, subject to quarterly declaration. During the three and nine months ended April 30, 2012, the Company paid cash dividends of $0.1875 and $0.4875 per share, respectively ($6.8 million and $17.6 million, respectively, in the aggregate). On June 5, 2012, the Company's Board of Directors approved a quarterly cash dividend of $0.1875 per share payable on July 10, 2012 to stockholders of record as of June 25, 2012.