Net Income Per Common Share

9 Months Ended

Apr. 30, 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 April 30, 2016 and 2015 (in thousands, except per share amounts):



	Three Months Ended April 30,
	2016				2015
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	157,632	$	157,632	$	133,410	$	133,410
Weighted-average shares outstanding	36,217		36,217		36,354		36,354
Effect of dilutive securities	—		1,051		—		1,099
Total shares	36,217		37,268		36,354		37,453
Net income per share attributable to Vail Resorts	$	4.35	$	4.23	$	3.67	$	3.56

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 24,000 and 15,000 for the three months ended April 30, 2016 and 2015, respectively.

Presented below is basic and diluted EPS for the nine months ended April 30, 2016 and 2015 (in thousands, except per share amounts):



	Nine Months Ended April 30,
	2016				2015
	Basic		Diluted		Basic		Diluted
Net income per share:
Net income attributable to Vail Resorts	$	215,027	$	215,027	$	184,896	$	184,896
Weighted-average shares outstanding	36,312		36,312		36,310		36,310
Effect of dilutive securities	—		1,016		—		1,052
Total shares	36,312		37,328		36,310		37,362
Net income per share attributable to Vail Resorts	$	5.92	$	5.76	$	5.09	$	4.95

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 13,000 and 5,000 for the nine months ended April 30, 2016 and 2015, respectively.

During the three and nine months ended April 30, 2016, the Company paid cash dividends of $0.8100 and $2.0550 per share, respectively ($29.3 million and $74.5 million, respectively, in the aggregate). During the three and nine months ended April 30, 2015, the Company paid cash dividends of $0.6225 and $1.4525 per share, respectively ($22.6 million and $52.8 million, respectively, in the aggregate). On June 8, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.8100 per share payable on July 13, 2016 to stockholders of record as of June 28, 2016.