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Segment Information
 12 Months Ended
Jul. 31, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company has three reportable segments: Mountain, Lodging and Real Estate. 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 all of the Company’s owned hotels, RockResorts, NPS concessionaire properties, condominium management, CME and mountain resort 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, and for the Real Estate segment, plus gain on sale of real property) 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, net change in cash and cash equivalents or other financial statement data presented in the consolidated 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 plus gain 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 accounting policies specific to each segment are the same as those described in Note 2, Summary of Significant Accounting Policies.
Following is key financial information by reportable segment which is used by management in evaluating performance and allocating resources (in thousands):
 
Year Ended July 31,
  
2014
2013
2012
Net revenue:
 
 
 
Lift tickets
$
447,271

$
390,820

$
342,500

Ski school
109,442

95,254

84,292

Dining
89,892

81,175

68,376

Retail/rental
210,387

199,418

181,772

Other
106,581

100,847

89,668

Total Mountain net revenue
963,573

867,514

766,608

Lodging
242,287

210,974

210,623

Resort
1,205,860

1,078,488

977,231

Real estate
48,786

42,309

47,163

Total net revenue
$
1,254,646

$
1,120,797

$
1,024,394

Segment operating expense:
 
 
 
Mountain
$
712,785

$
639,706

$
568,578

Lodging
225,563

198,813

204,270

Resort
938,348

838,519

772,848

Real estate
55,826

58,090

63,170

Total segment operating expense
$
994,174

$
896,609

$
836,018

Gain on sale of real property
$
—

$
6,675

$
—

Mountain equity investment income, net
$
1,262

$
891

$
878

Reported EBITDA:
 
 
 
Mountain
$
252,050

$
228,699

$
198,908

Lodging
16,724

12,161

6,353

Resort
268,774

240,860

205,261

Real estate
(7,040
)
(9,106
)
(16,007
)
Total Reported EBITDA
$
261,734

$
231,754

$
189,254

Real estate held for sale and investment
$
157,858

$
195,230

$
237,668

Reconciliation to net income attributable to Vail Resorts, Inc.:
 
 
 
Total Reported EBITDA
$
261,734

$
231,754

$
189,254

Depreciation and amortization
(140,601
)
(132,688
)
(127,581
)
Change in fair value of contingent consideration
(1,400
)
—

—

Loss on disposal of fixed assets, net
(1,208
)
(1,222
)
(1,464
)
Investment income, net
375

351

469

Interest expense, net
(63,997
)
(38,966
)
(33,586
)
Loss on extinguishment of debt
(10,831
)
—

—

Income before provision for income taxes
44,072

59,229

27,092

Provision for income taxes
(15,866
)
(21,619
)
(10,701
)
Net income
28,206

37,610

16,391

Net loss attributable to noncontrolling interests
272

133

62

Net income attributable to Vail Resorts, Inc.
$
28,478

$
37,743

$
16,453