Net Income Per Common Share

6 Months Ended

Jan. 31, 2016

Earnings Per Share Reconciliation [Abstract]

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 participate in the earnings of Vail Resorts. Presented below is basic and diluted EPS for the three months ended January 31, 2016 and 2015 (in thousands, except per share amounts):



	Three Months Ended January 31,
	2016				2015
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	116,982	$	116,982	$	115,762	$	115,762
Weighted-average shares outstanding	36,246		36,246		36,329		36,329
Effect of dilutive securities	—		1,010		—		1,038
Total shares	36,246		37,256		36,329		37,367
Net income per share attributable to Vail Resorts	$	3.23	$	3.14	$	3.19	$	3.10

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 excluded from the calculation of diluted net income per share because the effect of their inclusion would have been anti-dilutive totaled 19,000 and 8,000 for the three months ended January 31, 2016 and 2015, respectively.

Presented below is basic and diluted EPS for the six months ended January 31, 2016 and 2015 (in thousands, except per share amounts):



	Six Months Ended January 31,
	2016				2015
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	57,395	$	57,395	$	51,486	$	51,486
Weighted-average shares outstanding	36,359		36,359		36,289		36,289
Effect of dilutive securities	—		999		—		1,024
Total shares	36,359		37,358		36,289		37,313
Net income per share attributable to Vail Resorts	$	1.58	$	1.54	$	1.42	$	1.38

The number of shares issuable on the exercise of share based awards excluded from the calculation of diluted net income per share because the effect of their inclusion would have been anti-dilutive totaled 10,000 and 4,000 for the six months ended January 31, 2016 and 2015, respectively.

During the three and six months ended January 31, 2016, the Company paid cash dividends of $0.6225 and $1.2450 per share ($22.6 million and $45.2 million, respectively, in the aggregate). During the three and six months ended January 31, 2015, the Company paid cash dividends of $0.4150 and $0.8300 per share ($15.1 million and $30.1 million, respectively, in the aggregate). On March 9, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.81 per share payable on April 13, 2016 to stockholders of record as of March 29, 2016.