XML 95 R20.htm IDEA: XBRL DOCUMENT v3.3.0.814
Segment Information
 12 Months Ended
Jul. 31, 2015
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 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, plus gain on litigation settlement 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 plus gain on litigation settlement. 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,
  
2015
2014
2013
Net revenue:
 
 
 
Lift tickets
$
536,458

$
447,271

$
390,820

Ski school
126,206

109,442

95,254

Dining
101,010

89,892

81,175

Retail/rental
219,153

210,387

199,418

Other
121,202

106,581

100,847

Total Mountain net revenue
1,104,029

963,573

867,514

Lodging
254,553

242,287

210,974

Resort
1,358,582

1,205,860

1,078,488

Real Estate
41,342

48,786

42,309

Total net revenue
$
1,399,924

$
1,254,646

$
1,120,797

Segment operating expense:
 
 
 
Mountain
$
777,147

$
712,785

$
639,706

Lodging
232,877

225,563

198,813

Resort
1,010,024

938,348

838,519

Real Estate
48,408

55,826

58,090

Total segment operating expense
$
1,058,432

$
994,174

$
896,609

Gain on litigation settlement
$
16,400

$
—

$
—

Gain on sale of real property
$
151

$
—

$
6,675

Mountain equity investment income, net
$
822

$
1,262

$
891

Reported EBITDA:
 
 
 
Mountain
$
344,104

$
252,050

$
228,699

Lodging
21,676

16,724

12,161

Resort
365,780

268,774

240,860

Real Estate
(6,915
)
(7,040
)
(9,106
)
Total Reported EBITDA
$
358,865

$
261,734

$
231,754

Real estate held for sale and investment
$
129,825

$
157,858

$
195,230

Reconciliation to net income attributable to Vail Resorts, Inc.:
 
 
 
Total Reported EBITDA
$
358,865

$
261,734

$
231,754

Depreciation and amortization
(149,123
)
(140,601
)
(132,688
)
Change in fair value of contingent consideration
3,650

(1,400
)
—

Loss on disposal of fixed assets and other, net
(2,057
)
(1,208
)
(1,222
)
Investment income, net
246

375

351

Interest expense
(51,241
)
(63,997
)
(38,966
)
Loss on extinguishment of debt
(11,012
)
(10,831
)
—

Income before provision for income taxes
149,328

44,072

59,229

Provision for income taxes
(34,718
)
(15,866
)
(21,619
)
Net income
114,610

28,206

37,610

Net loss attributable to noncontrolling interests
144

272

133

Net income attributable to Vail Resorts, Inc.
$
114,754

$
28,478

$
37,743