XML 36 R20.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Information
 12 Months Ended
Jul. 31, 2017
Segment Reporting [Abstract]  
Segment Information
Segment and Geographic Area Information
Segment Information
The Company has three reportable segments: Mountain, Lodging and Real Estate. Resort is the combination of the Mountain and Lodging segments. 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, develops and sells 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). 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.
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.
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,
  
2017
2016
2015
Net revenue:
 
 
 
Lift tickets
$
818,341

$
658,047

$
536,458

Ski school
177,748

143,249

126,206

Dining
150,587

121,008

101,010

Retail/rental
293,428

241,134

219,153

Other
171,682

141,166

121,202

Total Mountain net revenue
1,611,786

1,304,604

1,104,029

Lodging
278,514

274,554

254,553

Resort
1,890,300

1,579,158

1,358,582

Real Estate
16,918

22,128

41,342

Total net revenue
$
1,907,218

$
1,601,286

$
1,399,924

Segment operating expense:
 
 
 
Mountain
$
1,047,331

$
881,472

$
777,147

Lodging
251,427

246,385

232,877

Resort
1,298,758

1,127,857

1,010,024

Real Estate
24,083

24,639

48,408

Total segment operating expense
$
1,322,841

$
1,152,496

$
1,058,432

Gain on litigation settlement
$
—

$
—

$
16,400

Gain on sale of real property
$
6,766

$
5,295

$
151

Mountain equity investment income, net
$
1,883

$
1,283

$
822

Reported EBITDA:
 
 
 
Mountain
$
566,338

$
424,415

$
344,104

Lodging
27,087

28,169

21,676

Resort
593,425

452,584

365,780

Real Estate
(399
)
2,784

(6,915
)
Total Reported EBITDA
$
593,026

$
455,368

$
358,865

Real estate held for sale and investment
$
103,405

$
111,088

$
129,825

Reconciliation to net income attributable to Vail Resorts, Inc.:
 
 
 
Total Reported EBITDA
$
593,026

$
455,368

$
358,865

Depreciation and amortization
(189,157
)
(161,488
)
(149,123
)
Change in fair value of contingent consideration
(16,300
)
(4,200
)
3,650

Loss on disposal of fixed assets and other, net
(6,430
)
(5,418
)
(2,057
)
Investment income and other, net
6,114

723

246

Foreign currency gain on intercompany loans
15,285

—

—

Interest expense, net
(54,089
)
(42,366
)
(51,241
)
Loss on extinguishment of debt
—

—

(11,012
)
Income before provision for income taxes
348,449

242,619

149,328

Provision for income taxes
(116,731
)
(93,165
)
(34,718
)
Net income
231,718

149,454

114,610

Net (income) loss attributable to noncontrolling interests
(21,165
)
300

144

Net income attributable to Vail Resorts, Inc.
$
210,553

$
149,754

$
114,754



Geographic Information

Net revenue and property, plant and equipment, net by geographic region are as follows (in thousands).
 
Year Ended July 31,
Net revenue
2017
2016
2015
U.S.
$
1,578,276

$
1,534,716

$
1,375,190

International (a)
328,942

66,570

24,734

Total net revenue
$
1,907,218

$
1,601,286

$
1,399,924

 
 
 
 
 
 
As of July 31,
Property, plant and equipment, net
 
2017
2016
U.S.
 
$
1,260,220

$
1,247,838

International (a)
 
453,933

115,977

Total property, plant and equipment, net
 
$
1,714,154

$
1,363,814


(a) The only individual international country (i.e. except the U.S.) to account for more than 10% of the Company’s revenue and property plant and equipment, net was Canada. Canada accounted for $257.8 million of revenue for the year ended July 31, 2017 and for $338.8 million of property, plant and equipment, net as of July 31, 2017.