v3.22.2.2
Segment Information
 12 Months Ended
Jul. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment and Geographic Area Information
Segment Information
The Company has three reportable segments: Mountain, Lodging and Real Estate. The Company refers to “Resort” as 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 concessioner properties, condominium management, Colorado resort ground transportation operations 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.
On August 1, 2021, the Company revised its segment reporting to move certain dining and golf operations from the Lodging segment to the Mountain segment. Segment reporting results for the prior years have been adjusted retrospectively to conform to the current period presentation.
The Company reports its segment results using Reported EBITDA (defined as segment net revenue less segment operating expenses, plus segment equity investment income or loss, and for the Real Estate segment, plus gain or loss 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 accompanying Consolidated Financial Statements as indicators of financial performance or liquidity.
The Company utilizes Reported EBITDA in evaluating the performance of the Company and in allocating resources to its segments. Mountain Reported EBITDA consists of Mountain net revenue less Mountain operating expense plus 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 or loss on sale of real property. All segment expenses include an allocation of corporate administrative expense. Assets are not 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.
The following table presents key financial information by reportable segment, which is used by management in evaluating performance and allocating resources (in thousands):
 Year ended July 31,
  
2022
2021 (1)
2020 (1)
Net revenue:
Mountain$2,213,114 $1,702,798 $1,726,620 
Lodging312,090 205,142 232,237 
Total Resort net revenue2,525,204 1,907,940 1,958,857 
Real Estate708 1,770 4,847 
Total net revenue$2,525,912 $1,909,710 $1,963,704 
Segment operating expense:
Mountain$1,404,527 $1,156,743 $1,224,870 
Lodging286,343 213,239 232,328 
Total Resort operating expense1,690,870 1,369,982 1,457,198 
Real Estate5,911 6,676 9,182 
Total segment operating expense$1,696,781 $1,376,658 $1,466,380 
Gain on sale of real property$1,276 $324 $207 
Mountain equity investment income, net$2,580 $6,698 $1,690 
Reported EBITDA:
Mountain$811,167 $552,753 $503,440 
Lodging25,747 (8,097)(91)
Resort836,914 544,656 503,349 
Real Estate(3,927)(4,582)(4,128)
Total Reported EBITDA$832,987 $540,074 $499,221 
Real estate held for sale or investment$95,983 $95,615 $96,844 
Reconciliation of net income attributable to Vail Resorts, Inc. to Total Reported EBITDA:   
Net income attributable to Vail Resorts, Inc.$347,923 $127,850 $98,833 
Net income (loss) attributable to noncontrolling interests20,414 (3,393)10,222 
Net income368,337 124,457 109,055 
Provision for income taxes88,824 726 7,378 
Income before provision for income taxes457,161 125,183 116,433 
Depreciation and amortization252,391 252,585 249,572 
Asset impairments— — 28,372 
(Gain) loss on disposal of fixed assets and other, net (2)
(43,992)5,373 (838)
Change in estimated fair value of contingent consideration20,280 14,402 (2,964)
Investment income and other, net(3,718)(586)(1,305)
Foreign currency loss (gain) on intercompany loans2,682 (8,282)3,230 
Interest expense, net148,183 151,399 106,721 
Total Reported EBITDA$832,987 $540,074 $499,221 
(1) Segment results for the years ended July 31, 2021 and 2020 have been retrospectively adjusted to reflect current period presentation.
(2) During the year ended July 31, 2022, the Company recognized a gain of $32.2 million from the sale of a hotel property in Breckenridge.
Geographic Information
Net revenue and property, plant and equipment, net by geographic region are as follows (in thousands):
Year ended July 31,
Net revenue202220212020
U.S.$2,228,708 $1,717,270 $1,655,961 
International (1)
297,204 192,440 307,743 
Total net revenue$2,525,912 $1,909,710 $1,963,704 
July 31,
Property, plant and equipment, net20222021
U.S.$1,729,400 $1,646,097 
International (2)
388,652 421,779 
Total property, plant and equipment, net$2,118,052 $2,067,876 
(1) No individual international country (i.e. except the U.S.) accounted for more than 10% of the Company’s revenue for the years ended July 31, 2022 and 2021. The only individual international country to account for more than 10% of the Company’s revenue for the year ended July 31, 2020 was Canada. Canada accounted for $223.3 million of revenue for the year ended July 31, 2020.
(2) The only individual international country to account for more than 10% of the Company’s property plant and equipment, net was Canada. Canada accounted for $272.9 million and $288.4 million of property, plant and equipment, net as of July 31, 2022 and 2021, respectively.