19.

Guarantor Subsidiaries and Non-Guarantor Subsidiaries

The Company's payment obligations under the 6.50% Notes (see Note 4, Long-Term Debt) are fully and unconditionally guaranteed on a joint and several, senior subordinated basis by substantially all of the Company's consolidated subsidiaries (including VR Acquisition, Inc., BCRP, Inc., Booth Creek Ski Holdings, Inc., Trimont Land Company, Northstar Commercial Properties LLC, and Northstar Group Restaurant Properties LLC (collectively, "Northstar-at-Tahoe") which were non-guarantor subsidiaries under the 6.75% Notes) (collectively, and excluding Non-Guarantor Subsidiaries (as defined below), the "Guarantor Subsidiaries"), except for, Eagle Park Reservoir Company, Larkspur Restaurant & Bar, LLC, and certain other insignificant entities (together, the "Non-Guarantor Subsidiaries"). APII and the Employee Housing Entities are included with the Non-Guarantor Subsidiaries for purposes of the consolidated financial information, but are not considered subsidiaries under the indenture governing the 6.50% Notes.

Presented below is the consolidated financial information of the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. Financial information for the Non-Guarantor Subsidiaries is presented in the column titled "Other Subsidiaries." Balance sheets are presented as of July 31, 2011 and 2010. Statements of operations and statements of cash flows are presented for the years ended July 31, 2011, 2010 and 2009. In the current year, the Company revised its presentation of reimbursed payroll costs from managed hotel properties from a net presentation to a gross presentation in its Consolidated Statements of Operations (see Note 2, Summary of Significant Accounting Policies). Total revenue and total operating expense in the statements of operations for the years ended July 31, 2010 and 2009 for the Guarantor Subsidiaries presented below have been revised to reflect this presentation .

Investments in subsidiaries are accounted for by the Parent Company and Guarantor Subsidiaries using the equity method of accounting. Net income (loss) of Guarantor and Non-Guarantor Subsidiaries is, therefore, reflected in the Parent Company's and Guarantor Subsidiaries' investments in and advances to (from) subsidiaries. Net income (loss) of the Guarantor and Non-Guarantor Subsidiaries is reflected in Guarantor Subsidiaries and Parent Company as equity in consolidated subsidiaries. The elimination entries eliminate investments in Other Subsidiaries and intercompany balances and transactions for consolidated reporting purposes.

Supplemental Condensed Consolidating Balance Sheet

As of July 31, 2011

(in thousands)


	Parent Company		100% Owned Guarantor Subsidiaries		Other Subsidiaries		Eliminating Entries		Consolidated
Current assets:
Cash and cash equivalents	$	--	$	63,365	$	6,778	$	--	$	70,143
Restricted cash		--		11,781		657		--		12,438
Trade receivables, net		--		57,746		783		--		58,529
Inventories, net		--		53,775		232		--		54,007
Other current assets		29,167		21,063		277		--		50,507
Total current assets		29,167		207,730		8,727		--		245,624
Property, plant and equipment, net		--		972,963		48,773		--		1,021,736
Real estate held for sale and investment		--		273,663		--		--		273,663
Goodwill, net		--		268,058		--		--		268,058
Intangible assets, net		--		72,943		18,155		--		91,098
Other assets		8,060		33,296		4,701		--		46,057
Investments in subsidiaries		1,721,269		(3,862)		--		(1,717,407)		--
Advances		(349,144)		356,981		(7,837)		--		--
Total assets	$	1,409,352	$	2,181,772	$	72,519	$	(1,717,407)	$	1,946,236

Current liabilities:
Accounts payable and accrued liabilities	$	7,117	$	211,565	$	2,677	$	--	$	221,359
Income taxes payable		20,778		--		--		--		20,778
Long-term debt due within one year		--		848		197		--		1,045
Total current liabilities		27,895		212,413		2,874		--		243,182
Long-term debt		390,000		42,532		58,166		--		490,698
Other long-term liabilities		28,526		205,558		1,345		--		235,429
Deferred income taxes		133,208		--		--		--		133,208
Total Vail Resorts, Inc. stockholders' equity		829,723		1,721,269		(3,862)		(1,717,407)		829,723
Noncontrolling interests		--		--		13,996		--		13,996
Total stockholders' equity		829,723		1,721,269		10,134		(1,717,407)		843,719
Total liabilities and stockholders' equity	$	1,409,352	$	2,181,772	$	72,519	$	(1,717,407)	$	1,946,236

Supplemental Condensed Consolidating Balance Sheet

As of July 31, 2010

(in thousands)


	Parent Company			100% Owned Guarantor Subsidiaries		Other Subsidiaries			Eliminating Entries			Consolidated
Current assets:
Cash and cash equivalents	$	--		$	11,315	$	3,430		$	--		$	14,745
Restricted cash		--			11,443		391			--			11,834
Trade receivables, net		--			53,013		609			--			53,622
Inventories, net		--			48,081		214			--			48,295
Other current assets		21,448			20,570		231			--			42,249
Total current assets		21,448			144,422		4,875			--			170,745
Property, plant and equipment, net		--			990,904		36,486			--			1,027,390
Real estate held for sale and investment		--			422,164		--			--			422,164
Goodwill, net		--			181,085		--			--			181,085
Intangible assets, net		--			71,118		18,155			--			89,273
Other assets		2,515			24,776		4,861			--			32,152
Investments in subsidiaries		1,631,824			(16,258)		--			(1,615,566	)		--
Advances		(294,189	)		298,798		(4,609)			--			--
Total assets	$	1,361,598		$	2,117,009	$	59,768		$	(1,615,566	)	$	1,922,809

Current liabilities:
Accounts payable and accrued liabilities	$	12,400		$	240,823	$	2,103		$	--		$	255,326
Income taxes payable		32,729			--		--			--			32,729
Long-term debt due within one year		--			1,682		187			--			1,869
Total current liabilities		45,129			242,505		2,290			--			289,924
Long-term debt		390,000			76,479		58,363			--			524,842
Other long-term liabilities		29,203			166,201		1,756			--			197,160
Deferred income taxes		108,496			--		--			--			108,496
Total Vail Resorts, Inc. stockholders' equity		788,770			1,631,824		(16,258	)		(1,615,566	)		788,770
Noncontrolling interests		--			--		13,617			--			13,617
Total stockholders' equity		788,770			1,631,824		(2,641	)		(1,615,566	)		802,387
Total liabilities and stockholders' equity	$	1,361,598		$	2,117,009	$	59,768		$	(1,615,566	)	$	1,922,809

Supplemental Condensed Consolidating Statement of Operations

For the year ended July 31, 2011

(in thousands)


	Parent Company			100% Owned Guarantor Subsidiaries		Other Subsidiaries			Eliminating Entries			Consolidated
Total net revenue	$	--		$	1,166,706	$	12,212		$	(11,872	)	$	1,167,046
Total operating expense		522			1,070,054		13,718			(11,720	)		1,072,574
(Loss) income from operations		(522	)		96,652		(1,506	)		(152	)		94,472
Other (expense) income, net		(34,244	)		(4,908)		(1,294	)		152			(40,294	)
Equity investment income, net		--			1,342		--			--			1,342
(Loss) income before benefit (provision) for income taxes		(34,766	)		93,086		(2,800	)		--			55,520
Benefit (provision) for income taxes		14,235			(35,333)		--			--			(21,098	)
Net (loss) income before equity in income (loss) of consolidated subsidiaries		(20,531	)		57,753		(2,800	)		--			34,422
Equity in income (loss) of consolidated subsidiaries		55,020			(2,733)		--			(52,287	)		--
Net income (loss)		34,489			55,020		(2,800	)		(52,287	)		34,422
Net loss attributable to noncontrolling interests		--			--		67			--			67
Net income (loss) attributable to Vail Resorts, Inc.	$	34,489		$	55,020	$	(2,733	)	$	(52,287	)	$	34,489

Supplemental Condensed Consolidating Statement of Operations

For the year ended July 31, 2010

(in thousands)


	Parent Company			100% Owned Guarantor Subsidiaries			Other Subsidiaries			Eliminating Entries			Consolidated
Total net revenue	$	--		$	894,409		$	11,041		$	(10,647	)	$	894,803
Total operating expense		792			821,318			13,879			(10,495	)		825,494
(Loss) income from operations		(792	)		73,091			(2,838	)		(152	)		69,309
Other (expense) income, net		(27,034	)		10,885			(1,073	)		152			(17,070	)
Equity investment income, net		--			1,558			--			--			1,558
(Loss) income before benefit (provision) for income taxes		(27,826	)		85,534			(3,911	)		--			53,797
Benefit (provision) for income taxes		9,457			(27,479	)		--			--			(18,022	)
Net (loss) income before equity in income (loss) of consolidated subsidiaries		(18,369	)		58,055			(3,911	)		--			35,775
Equity in income (loss) of consolidated subsidiaries		48,754			(3,580	)		--			(45,174	)		--
Net income (loss)		30,385			54,475			(3,911	)		(45,174	)		35,775
Net (income) loss attributable to noncontrolling interests		--			(5,721	)		331			--			(5,390)
Net income (loss) attributable to Vail Resorts, Inc.	$	30,385		$	48,754		$	(3,580	)	$	(45,174	)	$	30,385

Supplemental Condensed Consolidating Statement of Operations

For the year ended July 31, 2009

(in thousands)


	Parent Company			100% Owned Guarantor Subsidiaries			Other Subsidiaries			Eliminating Entries			Consolidated
Total net revenue	$	--		$	1,003,079		$	10,602		$	(9,328	)	$	1,004,353
Total operating expense		498			895,941			10,956			(9,176	)		898,219
(Loss) income from operations		(498	)		107,138			(354	)		(152	)		106,134
Other (expense) income, net		(27,035	)		3,663			(2,535	)		152			(25,755	)
Equity investment income, net		--			817			--			--			817
(Loss) income before benefit (provision) for income taxes		(27,533	)		111,618			(2,889	)		--			81,196
Benefit (provision) for income taxes		10,600			(41,244	)		--			--			(30,644	)
Net (loss) income before equity in income (loss) of consolidated subsidiaries		(16,933	)		70,374			(2,889	)		--			50,552
Equity in income (loss) of consolidated subsidiaries		65,883			(3,364	)		--			(62,519	)		--
Net income (loss)		48,950			67,010			(2,889	)		(62,519	)		50,552
Net income attributable to noncontrolling interests		--			(1,127	)		(475	)		--			(1,602	)
Net income (loss) attributable to Vail Resorts, Inc.	$	48,950		$	65,883		$	(3,364	)	$	(62,519	)	$	48,950

Supplemental Condensed Consolidating Statement of Cash Flows

For the year ended July 31, 2011

(in thousands)


	Parent Company			100% Owned Guarantor Subsidiaries			Other Subsidiaries			Consolidated
Net cash (used in) provided by operating activities	$	(2,659	)	$	268,602		$	1,344		$	267,287

Cash flows from investing activities:
Capital expenditures		--			(95,568	)		(72	)		(95,640	)
Acquisition of businesses		--			(62,344	)		--			(62,344	)
Other investing activities, net		--			(204	)		--			(204	)
Net cash used in investing activities		--			(158,116	)		(72	)		(158,188	)

Cash flows from financing activities:
Proceeds from borrowings under other long-term debt		--			189,000			--			189,000
Payments of other long-term debt		--			(226,674	)		(187	)		(226,861	)
Proceeds from borrowings under the 6.50% notes		390,000			--			--			390,000
Payment of tender of 6.75% notes		(390,000	)		--			--			(390,000	)
Payment of financing costs		(9,331	)		(3,069	)		--			(12,400	)
Dividends paid		(5,411	)		--			--			(5,411	)
Other financing activities, net		1,319			(1,055	)		1,707			1,971
Advances		16,082			(16,638	)		556			--
Net cash provided by (used in) financing activities		2,659			(58,436	)		2,076			(53,701	)

Net increase in cash and cash equivalents		--			52,050			3,348			55,398
Cash and cash equivalents
Beginning of period		--			11,315			3,430			14,745
End of period	$	--		$	63,365		$	6,778		$	70,143

Supplemental Condensed Consolidating Statement of Cash Flows

For the year ended July 31, 2010

(in thousands)


	Parent Company			100% Owned Guarantor Subsidiaries			Other Subsidiaries			Consolidated
Net cash provided by (used in) operating activities	$	4,428		$	31,943		$	(421	)	$	35,950

Cash flows from investing activities:
Capital expenditures		--			(67,544	)		(1,413	)		(68,957	)
Acquisition of business		2,193			(18,063	)		--			(15,870	)
Cash received from sale of real property		--			8,920			--			8,920
Other investing activities, net		--			(145	)		(7,500	)		(7,645	)
Net cash provided by (used in) investing activities		2,193			(76,832	)		(8,913	)		(83,552	)

Cash flows from financing activities:
Acquisition of noncontrolling interest		--			(31,000	)		--			(31,000	)
Repurchase of common stock		(14,999	)		--			--			(14,999	)
Proceeds from borrowings under other long-term debt		--			140,962			--			140,962
Payments of other long-term debt		--			(106,132	)		(177	)		(106,309	)
Other financing activities, net		1,109			(7,042	)		10,328			4,395
Advances		7,269			(7,269	)		--			--
Net cash (used in) provided by financing activities		(6,621	)		(10,481	)		10,151			(6,951	)

Net (decrease) increase in cash and cash equivalents		--			(55,370	)		817			(54,553	)
Cash and cash equivalents
Beginning of period		--			66,685			2,613			69,298
End of period	$	--		$	11,315		$	3,430		$	14,745

Supplemental Condensed Consolidating Statement of Cash Flows

For the year ended July 31, 2009

(in thousands)


	Parent Company		100% Owned Guarantor Subsidiaries		Other Subsidiaries		Consolidated
Net cash (used in ) provided by operating activities	$	(11,385)	$	148,703	$	(3,042)	$	134,276

Cash flows from investing activities:
Capital expenditures		--		(106,145)		(346)		(106,491)
Acquisition of business		--		(38,170)		--		(38,170)
Other investing activities, net		--		36		--		36
Net cash used in investing activities		--		(144,279)		(346)		(144,625)

Cash flows from financing activities:
Repurchase of common stock		(22,367)		--		--		(22,367)
Proceeds from borrowings under non-recourse real estate financings		--		9,013		--		9,013
Payments of Non-Recourse Real Estate Financings		--		(58,407)		--		(58,407)
Proceeds from borrowings under other long-term debt		--		67,280		--		67,280
Payments of other long-term debt		--		(82,464)		(168)		(82,632)
Other financing activities, net		742		2,582		1,091		4,415
Advances		33,010		(33,010)		--		--
Net cash provided by (used in) financing activities		11,385		(95,006)		923		(82,698)

Net decrease in cash and cash equivalents		--		(90,582)		(2,465)		(93,047)
Cash and cash equivalents
Beginning of period		--		157,267		5,078		162,345
End of period	$	--	$	66,685	$	2,613	$	69,298