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Net Income Per Common Share
 6 Months Ended
Jan. 31, 2013
Earnings Per Share Reconciliation [Abstract]  
Net Income Per Common Share
Net Income (Loss) Per Common Share
Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income (loss) 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 share in the earnings of Vail Resorts. Presented below is basic and diluted EPS for the three months ended January 31, 2013 and 2012 (in thousands, except per share amounts):
 
 
 
Three Months Ended January 31,
 
 
2013
 
2012
 
 
Basic
 
Diluted
 
Basic
 
Diluted
Net income per share:
 
 
 
 
 
 
 
 
Net income attributable to Vail Resorts
 
$
60,551

 
$
60,551

 
$
46,389

 
$
46,389

Weighted-average shares outstanding
 
35,895

 
35,895

 
36,005

 
36,005

Effect of dilutive securities
 
—

 
768

 
—

 
646

Total shares
 
35,895

 
36,663

 
36,005

 
36,651

Net income per share attributable to Vail Resorts
 
$
1.69

 
$
1.65

 
$
1.29

 
$
1.27



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 that were excluded from the calculation of diluted net income per share because the effect of their inclusion would have been anti-dilutive totaled 1,000 and 38,000 for the three months ended January 31, 2013 and 2012, respectively.

Presented below is basic and diluted EPS for the six months ended January 31, 2013 and 2012 (in thousands, except per share amounts):
 
 
Six Months Ended January 31,
 
 
2013
 
2012
 
 
Basic
 
Diluted
 
Basic
 
Diluted
Net loss per share:
 
 
 
 
 
 
 
 
Net loss attributable to Vail Resorts
 
$
(29
)
 
$
(29
)
 
$
(9,320
)
 
$
(9,320
)
Weighted-average shares outstanding
 
35,798

 
35,798

 
36,036

 
36,036

Effect of dilutive securities
 
—

 
—

 
—

 
—

Total shares
 
35,798

 
35,798

 
36,036

 
36,036

Net loss per share attributable to Vail Resorts
 
$
—

 
$
—

 
$
(0.26
)
 
$
(0.26
)


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 that were excluded from the calculation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive totaled 842,000 and 666,000 for the six months ended January 31, 2013 and 2012, respectively.
On June 7, 2011 the Company’s Board of Directors approved the commencement of a regular quarterly cash dividend on the Company's common stock at an annual rate of $0.60 per share, subject to quarterly declaration. On March 5, 2012 the Company’s Board of Directors approved a 25% increase to the annual cash dividend to an annual rate of $0.75 per share, subject to quarterly declaration. During the three and six months ended January 31, 2013, the Company paid cash dividends of $0.1875 and $0.3750 per share, respectively ($6.7 million and $13.5 million, respectively, in the aggregate). During the three and six months ended January 31, 2012, the Company paid cash dividends of $0.15 and $0.30 per share, respectively ($5.4 million and $10.8 million, respectively, in the aggregate). On March 4, 2013 the Company’s Board of Directors approved an approximate 10% increase to its annual cash dividend on its common stock, subject to quarterly declaration. As a result, a quarterly cash dividend of $0.2075 per share was declared by the Company's Board of Directors payable on April 9, 2013 to stockholders of record as of March 25, 2013.