Segment Information

6 Months Ended

Jan. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: Mountain, Lodging and Real Estate. The Mountain segment includes the operations of the Company’s mountain resorts and Urban ski areas and related ancillary services. The Lodging segment includes the operations of all of the Company’s owned hotels in the U.S., RockResorts, NPS concessionaire properties, condominium management, CME and mountain resort 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 each other, 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, plus gain on litigation settlement and for the Real Estate segment, plus gain on sale of real property), 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 (the 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 plus gain on litigation settlement. 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 plus gain on sale of real property. All segment expenses include an allocation of corporate administrative expenses. 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 January 31,						Six Months Ended January 31,
	2016			2015			2016			2015
Net revenue:
Lift	$	287,685		$	239,288		$	307,838		$	239,288
Ski school	62,040			57,295			65,424			57,295
Dining	44,738			38,619			57,093			46,658
Retail/rental	102,975			95,012			135,364			124,485
Other	35,434			32,817			68,086			55,691
Total Mountain net revenue	532,872			463,031			633,805			523,417
Lodging	62,807			59,364			127,093			117,857
Total Resort net revenue	595,679			522,395			760,898			641,274
Real estate	3,684			7,842			13,032			17,225
Total net revenue	$	599,363		$	530,237		$	773,930		$	658,499
Operating expense:
Mountain	$	296,256		$	268,966		$	447,414		$	400,918
Lodging	57,311			53,927			118,748			111,681
Total Resort operating expense	353,567			322,893			566,162			512,599
Real estate	4,617			9,871			13,958			21,485
Total segment operating expense	$	358,184		$	332,764		$	580,120		$	534,084
Gain on litigation settlement	$	—		$	—		—			16,400
Gain on sale of real property	$	632		$	—		1,791			—
Mountain equity investment (loss) income, net	$	(61	)	$	200		781			525
Reported EBITDA:
Mountain	$	236,555		$	194,265		$	187,172		$	139,424
Lodging	5,496			5,437			8,345			6,176
Resort	242,051			199,702			195,517			145,600
Real estate	(301		)	(2,029		)	865			(4,260		)
Total Reported EBITDA	$	241,750		$	197,673		$	196,382		$	141,340
Real estate held for sale and investment	$	117,999		$	151,103		$	117,999		$	151,103
Reconciliation to net income attributable to Vail Resorts, Inc.:
Total Reported EBITDA	$	241,750		$	197,673		$	196,382		$	141,340
Depreciation and amortization	(40,541		)	(37,376		)	(79,241		)	(73,345		)
Change in fair value of Contingent Consideration	—			—			—			4,550
Loss on disposal of fixed assets and other, net	(1,206		)	(26		)	(2,985		)	(781		)
Investment income, net	161			62			359			36
Interest expense	(10,910		)	(13,807		)	(21,505		)	(27,375		)
Income before (provision) benefit from income taxes	189,254			146,526			93,010			44,425
(Provision) benefit from income taxes	(72,383		)	(30,826		)	(35,809		)	6,951
Net income	$	116,871		$	115,700		$	57,201		$	51,376
Net loss attributable to noncontrolling interests	111			62			194			110
Net income attributable to Vail Resorts, Inc.	$	116,982		$	115,762		$	57,395		$	51,486