Revenue (Notes)

9 Months Ended

Apr. 30, 2020

Revenue from Contract with Customer [Text Block]

3. Revenues

Revenue Recognition

As a result of the COVID-19 pandemic, the Company closed its North American destination mountain resorts, regional ski areas and retail stores beginning on March 15. 2020. To encourage the Company’s pass product holders to renew their pass purchases for next season following the early closures this spring, the Company announced a credit offer on April 27, 2020 for all existing 2019/2020 North American ski season pass product holders to purchase 2020/2021 North American ski season pass products at a discount (the “Credit Offer”). The Credit Offer discounts range from a minimum of 20% to a maximum of 80% for season pass holders, depending on the number of days the pass holder used their pass product during the 2019/2020 season and a credit, with no minimum, but up to 80% for multi-day pass products, such as the Epic Day Pass, based on total unused days. The Credit Offer was considered a contract modification and constitutes a material right to existing guests and, as such, represent a separate performance obligation to which the Company allocated a transaction price of approximately $120.9 million. As a result, the Company deferred $120.9 million of pass product revenue, which would have been recognized as lift revenue during the year ending July 31, 2020, primarily during the quarter ended April 30, 2020. The revenue will be recognized once the performance obligation associated with the Credit Offer is satisfied, which the Company expects will be primarily in the second and third fiscal quarters of the fiscal year ending July 31, 2021, or earlier if the Credit Offer expires unredeemed. In addition, as a result of the pass product revenue deferral, the Company also deferred approximately $2.9 million of the associated costs of obtaining a contract (primarily credit card processing fees), which will be recognized commensurate with the associated deferred revenue.

The Company estimated the standalone selling price of the Credit Offer by utilizing historical pass holder renewal data to estimate the total amount of credits that are expected to be redeemed. Estimates and assumptions made regarding expected renewal rates impact the estimate of the transaction price allocated to the Credit Offer and could vary materially from the amount of revenue deferred depending upon actual customer redemptions.

Disaggregation of Revenues

The following table presents net revenues disaggregated by segment and major revenue type for the three and nine months ended April 30, 2020 and 2019 (in thousands):



	Three Months Ended April 30,				Nine Months Ended April 30,
	2020		2019		2020		2019
Mountain net revenue:
Lift	$	374,818	$	526,881	$	900,995	$	999,124
Ski School	76,563		110,755		187,840		207,271
Dining	61,632		78,928		158,980		162,629
Retail/Rental	78,133		114,082		259,761		285,860
Other	44,158		47,252		154,105		144,093
Total Mountain net revenue	$	635,304	$	877,898	$	1,661,681	$	1,798,977
Lodging net revenue:
Owned hotel rooms	$	8,126	$	12,352	$	39,323	$	43,499
Managed condominium rooms	23,744		30,671		69,984		69,835
Dining	8,099		11,067		37,353		37,385
Transportation	5,672		8,578		15,748		18,774
Golf	—		—		10,606		9,628
Other	9,775		13,278		37,411		37,697
	55,416		75,946		210,425		216,818
Payroll cost reimbursements	2,969		3,902		9,605		11,179
Total Lodging net revenue	$	58,385	$	79,848	$	220,030	$	227,997
Total Resort net revenue	$	693,689	$	957,746	$	1,881,711	$	2,026,974
Total Real Estate net revenue	398		241		4,784		595
Total net revenue	$	694,087	$	957,987	$	1,886,495	$	2,027,569

Contract Balances

Deferred revenue balances of a short-term nature were $219.4 million and $335.7 million as of April 30, 2020 and July 31, 2019, respectively. Deferred revenue balances of a long-term nature, comprised primarily of long-term private club initiation fee revenue, were $124.5 million and $124.3 million as of April 30, 2020 and July 31, 2019, respectively. For the three and nine months ended April 30, 2020, the Company recognized approximately $83.5 million and $263.4 million, respectively, of revenue that was included in the deferred revenue balance as of July 31, 2019. As of April 30, 2020, the weighted average remaining period over which revenue for unsatisfied performance obligations on long-term private club contracts will be recognized was approximately 16 years. Trade receivable balances were $100.2 million and $270.9 million as of April 30, 2020 and July 31, 2019, respectively.

Costs to Obtain Contracts with Customers

As of April 30, 2020, $3.1 million of costs to obtain contracts with customers were recorded within other current assets on the Company’s Consolidated Condensed Balance Sheet. The amounts capitalized are subject to amortization commensurate with the revenue recognized for skier visits. The Company recorded amortization of $4.0 million and $11.0 million for these costs during the three and nine months ended April 30, 2020, which was recorded within Mountain and Lodging operating expenses on the Company’s Consolidated Condensed Statements of Operations.