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Segment Information
 6 Months Ended
Jan. 31, 2012
Segment Information [Abstract]  
Segment Information
10. Segment Information

The Company has three reportable segments: Mountain, Lodging and Real Estate. The Mountain segment includes the operations of the Company's ski resorts and related ancillary services. The Lodging segment includes the operations of all of the Company's owned hotels, RockResorts, certain National Park Service concessionaire properties including GTLC, condominium management, CME and 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 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), 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 (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 (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. 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. 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. 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
January 31,		     Six Months Ended
January 31,		  
     2012     2011     2012     2011  

Net revenue:

         

Lift tickets

    $ 153,699      $ 155,173      $ 153,699      $ 155,173   

Ski school

      37,252        37,296        37,252        37,296   

Dining

      24,722        26,405        30,369        30,512   

Retail/rental

      73,850        74,320        100,814        96,373   

Other

      26,415        25,083        43,474        39,702   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Mountain net revenue

      315,938        318,277        365,608        359,056   

Lodging

      48,306        51,676        101,900        102,793   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Resort net revenue

      364,244        369,953        467,508        461,849   

Real Estate

      9,088        25,147        22,197        174,408   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenue

    $ 373,332      $ 395,100      $ 489,705      $ 636,257   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating expense:

         

Mountain

    $ 195,489      $ 191,224      $ 294,044      $ 274,360   

Lodging

      47,093        50,795        102,394        100,369   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Resort operating expense

      242,582        242,019        396,438        374,729   

Real estate

      12,563        25,344        30,410        170,407   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total segment operating expense

    $ 255,145      $ 267,363      $ 426,848      $ 545,136   
  

 

 

    

 

 

    

 

 

    

 

 

  

Mountain equity investment income, net

    $ 178      $ 138      $ 608      $ 918   

Reported EBITDA:

         

Mountain

    $ 120,627      $ 127,191      $ 72,172      $ 85,614   

Lodging

      1,213        881        (494 )      2,424   
  

 

 

    

 

 

    

 

 

    

 

 

  

Resort

      121,840        128,072        71,678        88,038   

Real Estate

      (3,475 )      (197 )      (8,213 )      4,001   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Reported EBITDA

    $ 118,365      $ 127,875      $ 63,465      $ 92,039   
  

 

 

    

 

 

    

 

 

    

 

 

  

Real estate held for sale and investment

    $ 257,169      $ 281,699      $ 257,169      $ 281,699   

Reconciliation to net income (loss) attributable to Vail Resorts, Inc:

 

      

Total Reported EBITDA

    $ 118,365      $ 127,875      $ 63,465      $ 92,039   

Depreciation and amortization

      (33,050 )      (30,276 )      (61,980 )      (58,008 ) 

Loss on disposal of fixed assets, net

      (919 )      (400 )      (1,033 )      (308 ) 

Investment income

      310        226        374        464   

Interest expense, net

      (8,542 )      (8,659 )      (16,783 )      (16,595 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before (provision) benefit for income taxes

      76,164        88,766        (15,957 )      17,592   

(Provision) benefit for income taxes

      (29,743 )      (34,209 )      6,644        (6,095 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ 46,421      $ 54,557      $ (9,313 )    $ 11,497   

Net (income) loss attributable to noncontrolling interests

      (32 )      (6 )      (7 )      31   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Vail Resorts, Inc.

    $ 46,389      $ 54,551      $ (9,320 )    $ 11,528