Segment Information

3 Months Ended

Oct. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: Mountain, Lodging and Real Estate. The Company refers to “Resort” as the combination of the Mountain and Lodging segments. The Mountain segment includes the operations of the Company’s mountain resorts/ski areas and related ancillary activities. The Lodging segment includes the operations of the Company’s owned hotels, RockResorts, NPS concessionaire properties, condominium management, CME and mountain resort golf operations. The Real Estate segment owns, develops and sells 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, and for the Real Estate segment, plus gain or loss on sale of real property). 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.

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 (loss), 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.

The Company utilizes Reported EBITDA in evaluating the 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 plus gain or loss on sale of real property. 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 October 31,
	2017			2016
Net revenue:
Lift	$	25,468		$	21,426
Ski school	4,438			3,851
Dining	18,302			13,368
Retail/rental	45,407			36,479
Other	54,510			35,643
Total Mountain net revenue	148,125			110,767
Lodging	72,089			67,402
Total Resort net revenue	220,214			178,169
Real Estate	636			96
Total net revenue	$	220,850		$	178,265
Segment operating expense:
Mountain	$	207,084		$	168,253
Lodging	67,734			64,080
Resort	274,818			232,333
Real Estate	1,691			1,485
Total segment operating expense	$	276,509		$	233,818
Gain on sale of real property	$	—		$	6,466
Mountain equity investment income, net	$	522		$	832
Reported EBITDA:
Mountain	$	(58,437	)	$	(56,654	)
Lodging	4,355			3,322
Resort	(54,082		)	(53,332		)
Real Estate	(1,055		)	5,077
Total Reported EBITDA	$	(55,137	)	$	(48,255	)
Real estate held for sale and investment	$	102,697		$	116,852
Reconciliation to net loss attributable to Vail Resorts, Inc.:
Total Reported EBITDA	$	(55,137	)	$	(48,255	)
Depreciation and amortization	(48,624		)	(40,581		)
Change in estimated fair value of contingent consideration	—			(300		)
Gain (loss) on disposal of fixed assets, net	567			(550		)
Investment income and other, net	383			4,523
Foreign currency loss on intercompany loans	(7,346		)	—
Interest expense, net	(15,174		)	(11,964		)
Loss before benefit from income taxes	(125,331		)	(97,127		)
Benefit from income taxes	93,404			33,509
Net loss	(31,927		)	(63,618		)
Net loss attributable to noncontrolling interests	3,542			1,031
Net loss attributable to Vail Resorts, Inc.	$	(28,385	)	$	(62,587	)