Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Apr. 30, 2019 | Jun. 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MTN | |
Entity Registrant Name | VAIL RESORTS INC | |
Entity Central Index Key | 0000812011 | |
Current Fiscal Year End Date | --07-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,202,028 | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 |
Assets | |||
Cash and cash equivalents | $ 59,636 | $ 178,145 | $ 181,597 |
Restricted cash | 8,876 | 6,895 | 7,427 |
Trade receivables, net | 273,108 | 230,829 | 220,248 |
Inventories, net | 84,059 | 85,588 | 79,361 |
Other current assets | 41,177 | 37,279 | 31,027 |
Total current assets | 466,856 | 538,736 | 519,660 |
Property, plant and equipment, net (Note 7) | 1,847,434 | 1,627,219 | 1,640,727 |
Real estate held for sale and investment | 101,251 | 99,385 | 99,623 |
Goodwill, net (Note 7) | 1,596,867 | 1,475,686 | 1,488,663 |
Intangible assets, net | 306,489 | 280,572 | 283,802 |
Other assets | 42,837 | 43,386 | 42,960 |
Total assets | 4,361,734 | 4,064,984 | 4,075,435 |
Liabilities | |||
Accounts payable and accrued liabilities (Note 7) | 543,060 | 504,533 | 429,858 |
Income taxes payable | 23,290 | 50,632 | 29,512 |
Long-term debt due within one year (Note 5) | 48,504 | 38,455 | 38,444 |
Total current liabilities | 614,854 | 593,620 | 497,814 |
Long-term debt, net (Note 5) | 1,310,870 | 1,234,277 | 1,078,005 |
Other long-term liabilities (Note 7) | 268,350 | 291,506 | 279,797 |
Deferred income taxes, net | 274,306 | 133,918 | 215,696 |
Total liabilities | 2,468,380 | 2,253,321 | 2,071,312 |
Commitments and contingencies (Note 9) | |||
Stockholders' Equity | |||
Preferred stock, $0.01 par value, 25,000 shares authorized, no shares issued and outstanding | 0 | 0 | 0 |
Common stock, $0.01 par value, 100,000 shares authorized, 46,105, 46,021 and 45,874 shares issued, respectively | 461 | 460 | 458 |
Exchangeable shares, $0.01 par value, 56, 58 and 58 shares issued and outstanding, respectively (Note 4) | 1 | 1 | 1 |
Additional paid-in capital | 1,140,099 | 1,137,467 | 1,162,872 |
Accumulated other comprehensive (loss) income | (36,540) | (2,227) | 10,469 |
Retained earnings | 920,327 | 726,722 | 869,862 |
Treasury stock, at cost, 5,905, 5,552, and 5,552 shares, respectively (Note 11) | (357,989) | (272,989) | (272,989) |
Total Vail Resorts, Inc. stockholders’ equity | 1,666,359 | 1,589,434 | 1,770,673 |
Noncontrolling interests | 226,995 | 222,229 | 233,450 |
Total stockholders’ equity | 1,893,354 | 1,811,663 | 2,004,123 |
Total liabilities and stockholders’ equity | $ 4,361,734 | $ 4,064,984 | $ 4,075,435 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 46,105,000 | 46,021,000 | 45,874,000 |
Exchangeable Shares, Par Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Exchangeable Shares, Shares, Issued | 56,000 | 58,000 | 58,000 |
Treasury stock, shares | 5,905,000 | 5,552,000 | 5,552,000 |
Consolidated Condensed Statemen
Consolidated Condensed Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Net revenue: | ||||
Mountain and Lodging services and other | $ 800,816 | $ 700,033 | $ 1,631,957 | $ 1,437,753 |
Mountain and Lodging retail and dining | 156,930 | 141,318 | 395,017 | 358,253 |
Resort net revenue | 957,746 | 841,351 | 2,026,974 | 1,796,006 |
Real Estate Revenue | 241 | 3,140 | 595 | 3,910 |
Revenues | 957,987 | 844,491 | 2,027,569 | 1,799,916 |
Operating expense (exclusive of depreciation and amortization shown separately below): | ||||
Mountain and Lodging operating expense | 349,647 | 301,760 | 894,392 | 780,539 |
Mountain and Lodging retail and dining cost of products sold | 59,615 | 54,289 | 157,996 | 147,205 |
General and administrative | 68,213 | 66,181 | 209,954 | 194,780 |
Resort operating expense | 477,475 | 422,230 | 1,262,342 | 1,122,524 |
Real Estate operating expense, net | 1,382 | (597) | 4,141 | 2,301 |
Total segment operating expense | 478,857 | 421,633 | 1,266,483 | 1,124,825 |
Other operating (expense) income: | ||||
Depreciation and amortization | (55,260) | (54,104) | (161,541) | (154,132) |
Gain on sale of real property | 268 | 0 | 268 | 515 |
Change in estimated fair value of contingent consideration (Note 8) | (1,567) | 2,454 | (3,467) | 2,454 |
Gain (loss) on disposal of fixed assets and other, net | 27 | (3,230) | 505 | (2,125) |
Income from operations | 422,598 | 367,978 | 596,851 | 521,803 |
Mountain equity investment income, net | 445 | 607 | 1,555 | 1,094 |
Investment income and other, net | 1,727 | 736 | 2,697 | 1,516 |
Foreign currency loss on intercompany loans (Note 5) | (3,319) | (9,502) | (5,180) | (6,511) |
Interest expense, net | (19,575) | (15,648) | (59,215) | (46,795) |
Income before (provision) benefit from income taxes | 401,876 | 344,171 | 536,708 | 471,107 |
(Provision) benefit from income taxes | (93,346) | (71,896) | (120,914) | 17,914 |
Net income | 308,530 | 272,275 | 415,794 | 489,021 |
Net income attributable to noncontrolling interests | (16,396) | (16,023) | (25,106) | (25,463) |
Net income attributable to Vail Resorts, Inc. | $ 292,134 | $ 256,252 | $ 390,688 | $ 463,558 |
Per share amounts (Note 4): | ||||
Basic net income per share attributable to Vail Resorts, Inc. | $ 7.26 | $ 6.34 | $ 9.68 | $ 11.48 |
Diluted net income per share attributable to Vail Resorts, Inc. | 7.12 | 6.17 | 9.48 | 11.13 |
Cash dividends declared per share | $ 1.76 | $ 1.47 | $ 4.70 | $ 3.576 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Net income | $ 308,530 | $ 272,275 | $ 415,794 | $ 489,021 |
Foreign currency translation adjustments, net of tax | (30,089) | (64,020) | (44,862) | (44,417) |
Comprehensive income | 278,441 | 208,255 | 370,932 | 444,604 |
Comprehensive income attributable to noncontrolling interests | (8,898) | (284) | (14,557) | (14,972) |
Comprehensive income attributable to Vail Resorts, Inc. | $ 269,543 | $ 207,971 | $ 356,375 | $ 429,632 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Exchangeable Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total Vail Resorts, Inc. Stockholders' Equity [Member] | Noncontrolling Interests [Member] |
Balance at Jul. 31, 2017 | $ 1,798,959 | $ 454 | $ 1 | $ 1,222,510 | $ 44,395 | $ 550,985 | $ (247,189) | $ 1,571,156 | $ 227,803 |
Net income attributable to Vail Resorts, Inc. | 463,558 | 463,558 | 463,558 | ||||||
Net (income) loss attributable to noncontrolling interests | 25,463 | 25,463 | |||||||
Net income | 489,021 | ||||||||
Foreign currency translation adjustments, net of tax | (44,417) | (33,926) | (33,926) | (10,491) | |||||
Total comprehensive income | 429,632 | 429,632 | |||||||
Comprehensive (income) loss attributable to noncontrolling interests | 14,972 | 14,972 | |||||||
Total comprehensive income | 444,604 | ||||||||
Stock-based compensation expense | 14,056 | 14,056 | 14,056 | ||||||
Measurement period adjustment | (1,776) | (1,776) | |||||||
Issuance of shares under share award plans, net of shares withheld for employee taxes | (73,690) | 4 | (73,694) | (73,690) | |||||
Repurchase of common stock (Note 11) | (25,800) | (25,800) | (25,800) | ||||||
Dividends (Note 4) | (144,681) | (144,681) | (144,681) | ||||||
Distributions to noncontrolling interests, net | (7,549) | (7,549) | |||||||
Balance at Apr. 30, 2018 | 2,004,123 | 458 | 1 | 1,162,872 | 10,469 | 869,862 | (272,989) | 1,770,673 | 233,450 |
Balance at Jan. 31, 2018 | 1,880,778 | 458 | 1 | 1,160,243 | 58,750 | 673,065 | (247,189) | 1,645,328 | 235,450 |
Net income attributable to Vail Resorts, Inc. | 256,252 | 256,252 | 256,252 | ||||||
Net (income) loss attributable to noncontrolling interests | 16,023 | 16,023 | |||||||
Net income | 272,275 | ||||||||
Foreign currency translation adjustments, net of tax | (64,020) | (48,281) | (48,281) | (15,739) | |||||
Total comprehensive income | 207,971 | 207,971 | |||||||
Comprehensive (income) loss attributable to noncontrolling interests | 284 | 284 | |||||||
Total comprehensive income | 208,255 | ||||||||
Stock-based compensation expense | 4,644 | 4,644 | 4,644 | ||||||
Issuance of shares under share award plans, net of shares withheld for employee taxes | (2,015) | (2,015) | (2,015) | ||||||
Repurchase of common stock (Note 11) | (25,800) | (25,800) | (25,800) | ||||||
Dividends (Note 4) | (59,455) | (59,455) | (59,455) | ||||||
Distributions to noncontrolling interests, net | (2,284) | (2,284) | |||||||
Balance at Apr. 30, 2018 | 2,004,123 | 458 | 1 | 1,162,872 | 10,469 | 869,862 | (272,989) | 1,770,673 | 233,450 |
Balance at Jul. 31, 2018 | 1,811,663 | 460 | 1 | 1,137,467 | (2,227) | 726,722 | (272,989) | 1,589,434 | 222,229 |
Net income attributable to Vail Resorts, Inc. | 390,688 | 390,688 | 390,688 | ||||||
Net (income) loss attributable to noncontrolling interests | 25,106 | 25,106 | |||||||
Net income | 415,794 | ||||||||
Foreign currency translation adjustments, net of tax | (44,862) | (34,313) | (34,313) | (10,549) | |||||
Total comprehensive income | 356,375 | 356,375 | |||||||
Comprehensive (income) loss attributable to noncontrolling interests | 14,557 | 14,557 | |||||||
Total comprehensive income | 370,932 | ||||||||
Stock-based compensation expense | 14,786 | 14,786 | 14,786 | ||||||
Cumulative effect for adoption of revenue standard (Notes 2 & 3) | (7,517) | (7,517) | (7,517) | ||||||
Issuance of shares under share award plans, net of shares withheld for employee taxes | (12,153) | 1 | (12,154) | (12,153) | |||||
Repurchase of common stock (Note 11) | (85,000) | (85,000) | (85,000) | ||||||
Dividends (Note 4) | (189,566) | (189,566) | (189,566) | ||||||
Distributions to noncontrolling interests, net | (9,791) | (9,791) | |||||||
Balance at Apr. 30, 2019 | 1,893,354 | 461 | 1 | 1,140,099 | (36,540) | 920,327 | (357,989) | 1,666,359 | 226,995 |
Balance at Jan. 31, 2019 | 1,683,095 | 461 | 1 | 1,135,709 | (13,949) | 699,045 | (357,989) | 1,463,278 | 219,817 |
Net income attributable to Vail Resorts, Inc. | 292,134 | 292,134 | 292,134 | ||||||
Net (income) loss attributable to noncontrolling interests | 16,396 | 16,396 | |||||||
Net income | 308,530 | ||||||||
Foreign currency translation adjustments, net of tax | (30,089) | (22,591) | (22,591) | (7,498) | |||||
Total comprehensive income | 269,543 | 269,543 | |||||||
Comprehensive (income) loss attributable to noncontrolling interests | 8,898 | 8,898 | |||||||
Total comprehensive income | 278,441 | ||||||||
Stock-based compensation expense | 4,886 | 4,886 | 4,886 | ||||||
Issuance of shares under share award plans, net of shares withheld for employee taxes | (496) | (496) | (496) | ||||||
Dividends (Note 4) | (70,852) | (70,852) | (70,852) | ||||||
Distributions to noncontrolling interests, net | (1,720) | (1,720) | |||||||
Balance at Apr. 30, 2019 | $ 1,893,354 | $ 461 | $ 1 | $ 1,140,099 | $ (36,540) | $ 920,327 | $ (357,989) | $ 1,666,359 | $ 226,995 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 415,794 | $ 489,021 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 161,541 | 154,132 |
Cost of real estate sales | 0 | 3,750 |
Stock-based compensation expense | 14,786 | 14,056 |
Deferred income taxes, net | 125,803 | 36,558 |
Change in Fair Value of Contingent Consideration | 3,467 | (2,454) |
Foreign exchange loss on intercompany loans | 5,180 | 6,511 |
Other non-cash income, net | (6,485) | (8,090) |
Changes in assets and liabilities: | ||
Trade receivables, net | (37,146) | (33,096) |
Inventories, net | 5,170 | 5,609 |
Accounts payable and accrued liabilities | 1,013 | (35,519) |
Deferred revenue | (2,746) | 11,014 |
Income taxes payable - excess tax benefit from share award exercises | (4,890) | (54,473) |
Income taxes payable - other | (22,403) | (14,100) |
Other assets and liabilities, net | 6,512 | 7,744 |
Net cash provided by operating activities | 665,596 | 580,663 |
Cash flows from investing activities: | ||
Capital expenditures | (146,896) | (106,314) |
Acquisition of businesses, net of cash acquired | (419,044) | (1,356) |
Other investing activities, net | 13,286 | 7,088 |
Net cash used in investing activities | (552,654) | (100,582) |
Cash flows from financing activities: | ||
Proceeds from borrowings under Vail Holdings Credit Agreement | 335,625 | 95,000 |
Proceeds from borrowings under Whistler Credit Agreement | 7,667 | 11,920 |
Repayments of borrowings under Vail Holdings Credit Agreement | (223,750) | (173,125) |
Repayments of borrowings under Whistler Credit Agreement | (45,060) | (91,941) |
Issuance of shares under share award plans, net of shares withheld for employee taxes | (12,153) | (73,690) |
Dividends paid | (189,566) | (144,681) |
Repurchases of common stock | (85,000) | (25,800) |
Other financing activities, net | (12,408) | (11,626) |
Net cash used in financing activities | (224,645) | (413,943) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,825) | (4,776) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (116,528) | 61,362 |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 185,040 | 127,662 |
End of period | 68,512 | 189,024 |
Accrued capital expenditures | $ 13,508 | $ 7,869 |
Organization and Business
Organization and Business | 9 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Vail Resorts, Inc. (“Vail Resorts”) is organized as a holding company and operates through various subsidiaries. Vail Resorts and its subsidiaries (collectively, the “Company”) operate in three business segments: Mountain, Lodging and Real Estate. The Company refers to “Resort” as the combination of the Mountain and Lodging segments. In the Mountain segment, the Company operates the following seventeen world-class mountain resort properties and three urban ski areas: Mountain Resorts: Location: 1. Vail Mountain Resort (“Vail Mountain”) Colorado 2. Breckenridge Ski Resort (“Breckenridge”) Colorado 3. Keystone Resort (“Keystone”) Colorado 4. Beaver Creek Resort (“Beaver Creek”) Colorado 5. Crested Butte Mountain Resort (“Crested Butte”) Colorado 6. Heavenly Mountain Resort (“Heavenly”) Lake Tahoe area of Nevada and California 7. Northstar Resort (“Northstar”) Lake Tahoe area of California 8. Kirkwood Mountain Resort (“Kirkwood”) Lake Tahoe area of California 9. Mount Sunapee Resort (“Mount Sunapee”) New Hampshire 10. Park City Resort (“Park City”) Utah 11. Stowe Mountain Resort (“Stowe”) Vermont 12. Okemo Mountain Resort (“Okemo”) Vermont 13. Stevens Pass Mountain Resort (“Stevens Pass”) Washington 14. Whistler Blackcomb Resort (“Whistler Blackcomb”) British Columbia, Canada 15. Perisher Ski Resort (“Perisher”) New South Wales, Australia 16. Falls Creek Alpine Resort (“Falls Creek”) Victoria, Australia 17. Hotham Alpine Resort (“Hotham”) Victoria, Australia Urban Ski Areas: Location: 1. Afton Alps Ski Area (“Afton Alps”) Minnesota 2. Mount Brighton Ski Area (“Mt. Brighton”) Michigan 3. Wilmot Mountain (“Wilmot”) Wisconsin Additionally, the Mountain segment includes ancillary services, primarily including ski school, dining and retail/rental operations, and for the Company’s Australian resorts, including lodging and transportation operations. Several of the resorts located in the United States (“U.S.”) operate primarily on federal land under the terms of Special Use Permits granted by the U.S. Department of Agriculture Forest Service. The operations of Whistler Blackcomb are conducted on land owned by the government of the Province of British Columbia, Canada within the traditional territory of the Squamish and Lil’wat Nations. The operations of the Company’s Australian resorts are conducted pursuant to long-term leases and licenses on land owned by the governments of New South Wales and Victoria, Australia. Okemo, Mount Sunapee and Stowe operate on land leased from the respective states in which the resorts are located and on land owned by the Company. In the Lodging segment, the Company owns and/or manages a collection of luxury hotels and condominiums under its RockResorts brand, as well as other strategic lodging properties and a large number of condominiums located in proximity to the Company’s North American mountain resorts, National Park Service (“NPS”) concessionaire properties including the Grand Teton Lodge Company (“GTLC”), which operates destination resorts in Grand Teton National Park, a Colorado resort ground transportation company and mountain resort golf courses. Vail Resorts Development Company (“VRDC”), a wholly-owned subsidiary, conducts the operations of the Company’s Real Estate segment, which owns, develops and sells real estate in and around the Company’s resort communities. The Company’s mountain business and its lodging properties at or around the Company’s mountain resorts are seasonal in nature with peak operating seasons primarily from mid-November through mid-April in North America. The operating season at the Company’s Australian resorts, NPS concessionaire properties and golf courses generally occurs from June to early October. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Consolidated Condensed Financial Statements— In the opinion of the Company, the accompanying Consolidated Condensed Financial Statements reflect all adjustments necessary to state fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. Results for interim periods are not indicative of the results for the entire fiscal year, particularly given the significant seasonality to the Company’s operating cycle. The accompanying Consolidated Condensed Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2018 . Certain information and footnote disclosures, including significant accounting policies, normally included in fiscal year financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) have been condensed or omitted. The Consolidated Condensed Balance Sheet as of July 31, 2018 was derived from audited financial statements. Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Revenue Recognition — The Company recognizes revenues from contracts with customers when or as control of goods or services promised in the contracts is transferred in an amount that reflects consideration to which it expects to be entitled to in exchange for those goods or services. The Company determines the appropriate revenue recognition for contracts with customers by analyzing the type, terms and conditions of contracts or arrangements with customers. Certain contracts with customers contain multiple performance obligations in which case revenue is allocated to each distinct and separate performance obligation based on its relative standalone selling price. See Note 3, Revenues, for more information. Recently Issued Accounting Standards Adopted Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in Topic 605. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. Subsequent to the issuance of ASU 2014-09, the FASB issued several amendments, which did not change the core principle of the guidance and were intended to clarify and improve understanding of certain topics included within the revenue standard. On August 1, 2018, the Company adopted this standard using the modified retrospective transition method for contracts which were not completed as of August 1, 2018. In accordance with this transition method, results for reporting periods beginning after August 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historical accounting methodology under Topic 605. On August 1, 2018, as a result of adopting this standard, the Company recorded an approximate $7.5 million reduction of retained earnings with a corresponding increase in accounts payable and accrued liabilities, which was primarily associated with the measurement of the loyalty reward programs under the new standard at an estimated fair value of underlying products or services expected to be delivered to satisfy the Company’s obligations associated with such loyalty programs. The application of this standard had an immaterial impact on total net revenue and net income attributable to Vail Resorts, Inc. for the three and nine months ended April 30, 2019. In accordance with the new revenue recognition standard disclosure requirements, the impact of adoption of Topic 606 on the Consolidated Condensed Balance Sheet as of April 30, 2019 was as follows (in thousands): As of April 30, 2019 Balance Sheet Balances Without Adoption of Topic 606 Adjustments As Reported (Under Topic 606) Liabilities Accounts payable and accrued liabilities $ 536,130 $ 6,930 $ 543,060 Stockholders’ equity Retained earnings $ 927,257 $ (6,930 ) $ 920,327 In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This standard provides guidance for eight targeted changes with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. The Company adopted this accounting standard on August 1, 2018, which did not have an impact on its consolidated condensed financial statements. In November 2016, the FASB issued ASU No. 2016-18, “Restricted Cash,” which requires that a statement of cash flows present the change during a period for the total of cash, cash equivalents and restricted cash. Historically, under previous guidance, changes in restricted cash have been included within operating, investing or financing activities, which were eliminated under the new standard. The Company adopted this standard as of August 1, 2018, which required retrospective application to all periods presented. As a result, cash provided by operating activities during the nine months ended April 30, 2018 decreased by $2.6 million under the new guidance as compared to what was reported under the previously required guidance. Additionally, due to the inclusion of restricted cash in the beginning and end of period balances, cash, cash equivalents and restricted cash as of April 30, 2018 and July 31, 2017 increased $7.4 million and $10.3 million , respectively, as compared to what was reported under the previously required guidance. During peak operations of the North American ski season, the Company’s restricted cash balance is primarily associated with customer reservations deposits that are required to be held in a trust pursuant to statutory requirements until such reservations are fulfilled. Standards Being Evaluated The authoritative guidance listed below is currently being evaluated for its impact to Company policies upon adoption as well as any significant implementation matters yet to be addressed. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which supersedes “Leases (Topic 840).” The standard requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance, on the balance sheet and disclose key information about leasing arrangements. The standard also allows for an accounting policy election not to recognize on the balance sheet lease assets and liabilities for leases with a term of 12 months or less. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset on their balance sheets, while lessor accounting will be largely unchanged. The standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those years (the Company’s first quarter of fiscal 2020), and as originally written must be applied using a modified retrospective transition approach to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with early adoption permitted. In July 2018, the FASB made targeted improvements to the standard, including providing an additional and optional transition method. Under this method, an entity initially applies the standard at the adoption date, including the election of certain transition reliefs, and recognizes a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company is currently evaluating the impacts the adoption of this accounting standard will have on the Company’s financial position or results of operations and cash flows and related disclosures. Additionally, the Company has made progress in centralizing lease contracts in a lease accounting software system and has completed testing of the completeness and accuracy of this information. During the fourth quarter of the fiscal year ending July 31, 2019, the Company expects to finalize various technical interpretations, such as determination of discount rates used in the measurement of lease liabilities, for adoption. |
Revenue (Notes)
Revenue (Notes) | 9 Months Ended |
Apr. 30, 2019 | |
Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | 3. Revenues Revenue Recognition The following provides information about the Company’s composition of revenue recognized from contracts with customers and other revenues, the performance obligations under those contracts, and the significant judgments made in accounting for those contracts: • Mountain revenue is derived from a wide variety of sources, including, among other things: lift revenue, which includes sales of lift tickets and season passes; ski school revenue, which includes the revenue derived from ski school operations; dining revenue, which includes both casual and fine dining on-mountain operations; retail sales and equipment rentals; and other on-mountain revenue, which includes private ski club revenue (which includes both club dues and amortization of initiation fees), marketing and internet advertising revenue, municipal services and lodging and transportation operations at the Company’s Australian resorts. Revenue is recognized over time as performance obligations are satisfied as control of the good or service (e.g. access to ski areas, provision of ski school services, etc.) is transferred to the customer, except for the Company’s retail sales and dining operations revenues which are recognized at a point in time when performance obligations are satisfied by transferring control of the underlying goods to the customer. The Company records deferred revenue primarily related to the sale of season passes. Deferred revenue is recognized throughout the ski season as the Company’s performance obligations are satisfied as control of the service (e.g. access to ski areas throughout the ski season) is transferred to the customer. Transfer of control is based on an estimated number of season pass holder visits relative to total expected visits. Total expected visits are estimated based on historical data, and the Company believes this estimate provides a faithful depiction of its customers’ season pass usage. When sufficient historical data to determine usage patterns is not available, deferred revenue is recognized on a straight-line basis throughout the ski season. The Company also includes other sources of revenue, mostly related to commercial leasing, and employee housing leasing arrangements within other mountain revenue. • Lodging revenue is derived from a wide variety of sources, including, among other things: revenue from owned hotel rooms and managed hotel rooms; revenue from hotel dining operations; transportation revenue which relates to the Company’s Colorado resort ground transportation operations; and other lodging revenue which includes property management services, managed properties other costs reimbursements, private golf club revenue (which includes both club dues and amortization of initiation fees), and golf course fees. Lodging revenue also includes managed hotel property payroll cost reimbursements related to payroll costs at managed properties where the Company is the employer, which are reimbursed by the owner with no added margin. Therefore, these revenues and corresponding expenses have no net effect on the Company’s operating income or net income. Other than revenue from dining operations, lodging revenue is mostly recognized over time as performance obligations are satisfied as control of the service (e.g. nightly hotel room access) is transferred to the customer. • Real estate revenue primarily relates to the sale of development land parcels. Real estate revenue is generally recognized at a point in time when performance obligations have been satisfied, which is usually upon closing of the sales transaction and in an amount that reflects the consideration to which the Company expects to be entitled. For certain contracts that have an original term length of one year or less, the Company uses the practical expedient applicable to such contracts and does not consider the time value of money. For contracts with an expected term in excess of one year, the Company has considered the provisions of Topic 606 in determining whether contracts contain a financing component. The Company presents revenues in the accompanying consolidated condensed statements of operations, net of taxes, when collected from its customers that are remitted or payable to government taxing authorities, except when products are inclusive of taxes where applicable. 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, 2019 and 2018 (in thousands): Three Months Ended April 30, Nine Months Ended April 30, 2019 2018 2019 2018 Mountain net revenue: Lift $ 526,881 $ 452,723 $ 999,124 $ 860,103 Ski School 110,755 101,213 207,271 185,767 Dining 78,928 70,678 162,629 142,890 Retail/Rental 114,082 104,162 285,860 265,015 Other 47,252 43,748 144,093 137,776 Total Mountain net revenue $ 877,898 $ 772,524 $ 1,798,977 $ 1,591,551 Lodging net revenue: Owned hotel rooms $ 12,352 $ 12,518 $ 43,499 $ 43,506 Managed condominium rooms 30,671 24,604 69,835 58,133 Dining 11,067 8,660 37,385 32,409 Transportation 8,578 8,164 18,774 18,177 Golf — — 9,628 8,903 Other 13,278 11,074 37,697 32,626 75,946 65,020 216,818 193,754 Payroll cost reimbursements 3,902 3,807 11,179 10,701 Total Lodging net revenue $ 79,848 $ 68,827 $ 227,997 $ 204,455 Total Resort net revenue $ 957,746 $ 841,351 $ 2,026,974 $ 1,796,006 Total Real Estate net revenue 241 3,140 595 3,910 Total net revenue $ 957,987 $ 844,491 $ 2,027,569 $ 1,799,916 Arrangements with Multiple Performance Obligations Several of the Company’s contracts with customers include multiple performance obligations, primarily related to bundled services such as ski school packages, lodging packages and events (e.g. weddings and conferences). For such contracts, revenue is allocated to each distinct and separate performance obligation based on its relative standalone selling price. The standalone selling prices are generally based on observable prices charged to customers or estimated based on historical experience and information. Contract Balances Contract liabilities are recorded primarily as deferred revenues when payments are received or due in advance of the Company’s performance, including amounts which may be refundable. The deferred revenue balance is primarily related to accounts receivable or cash payments recorded in advance of satisfying the Company’s performance obligations related to sales of season passes prior to the start of the ski season, private club initiation fees and other related advance purchase products, including advance purchase lift tickets, multiple-day lift tickets, ski school lessons, equipment rentals and lodging advance deposits. Due to the seasonality of the Company’s operations, its largest deferred revenue balances occur during the North American season pass selling window, which generally begins in the fourth quarter of its fiscal year. Deferred revenue balances of a short-term nature were $297.9 million and $282.1 million as of April 30, 2019 and July 31, 2018, respectively. Deferred revenue balances of a long-term nature, comprised primarily of long-term private club initiation fee revenue, were $124.9 million and $126.5 million as of April 30, 2019 and July 31, 2018, respectively. For the three and nine months ended April 30, 2019, the Company recognized approximately $116.9 million and $272.2 million , respectively, of revenue that was included in the deferred revenue balance as of July 31, 2018. As of April 30, 2019, the weighted average remaining period over which revenue for unsatisfied performance obligations on long-term private club contracts will be recognized was approximately 17 years. Contract assets are recorded as trade receivables when the right to consideration is unconditional. Trade receivable balances were $273.1 million and $230.8 million as of April 30, 2019 and July 31, 2018, respectively. Payments from customers are based on billing terms established in the contracts with customers, which vary by the type of customer, the location and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, contracts require payment before the products are delivered or services are provided to the customer. Impairment losses related to contract assets are recognized through the Company’s allowance for doubtful accounts analysis. Contract asset write-offs are evaluated on an individual basis. Costs to Obtain Contracts with Customers The Company expects that credit card fees and sales commissions paid in order to obtain season ski pass products contracts are recoverable. Accordingly, the Company recognizes these amounts as assets when they are paid prior to the start of the ski season. As of April 30, 2019, $1.3 million of costs to obtain contracts with customers were recorded within other current assets on the Company’s Consolidated Condensed Balance Sheet. Deferred credit card fees and sales commissions are amortized commensurate with the recognition of season ski pass revenue. The Company recorded amortization of $5.2 million and $10.6 million for these costs during the three and nine months ended April 30, 2019, respectively, which were recorded within Mountain and Lodging operating expenses on the Company’s Consolidated Condensed Statement of Operations. Utilizing the practical expedient provided for under Topic 606, the Company has elected to expense credit card fees and sales commissions related to non-season ski pass products and services as incurred, as the amortization period is generally one year or less for the time between customer purchase and utilization. These fees are recorded within Mountain and Lodging operating expenses on the Company’s Consolidated Condensed Statements of Operations. |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |
Summary of Calculation of Basic And Diluted EPS | Three Months Ended April 30, 2019 2018 Basic Diluted Basic Diluted Net income per share: Net income attributable to Vail Resorts $ 292,134 $ 292,134 $ 256,252 $ 256,252 Weighted-average Vail Shares outstanding 40,198 40,198 40,379 40,379 Weighted-average Exchangeco Shares outstanding 57 57 59 59 Total Weighted-average shares outstanding 40,255 40,255 40,438 40,438 Effect of dilutive securities — 765 — 1,107 Total shares 40,255 41,020 40,438 41,545 Net income per share attributable to Vail Resorts $ 7.26 $ 7.12 $ 6.34 $ 6.17 The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. The number of shares issuable upon the exercise of share based awards excluded from the calculation of diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 54,000 and 5,000 for the three months ended April 30, 2019 and 2018, respectively. Presented below is basic and diluted EPS for the nine months ended April 30, 2019 and 2018 (in thousands, except per share amounts): Nine Months Ended April 30, 2019 2018 Basic Diluted Basic Diluted Net income per share: Net income attributable to Vail Resorts $ 390,688 $ 390,688 $ 463,558 $ 463,558 Weighted-average Vail Shares outstanding 40,307 40,307 40,313 40,313 Weighted-average Exchangeco Shares outstanding 57 57 61 61 Total Weighted-average shares outstanding 40,364 40,364 40,374 40,374 Effect of dilutive securities — 837 — 1,267 Total shares 40,364 41,201 40,374 41,641 Net income per share attributable to Vail Resorts $ 9.68 $ 9.48 $ 11.48 $ 11.13 The number of shares issuable upon the exercise of share based awards excluded from the calculation of diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 48,000 and 5,000 for the nine months ended April 30, 2019 and 2018 , respectively. |
Net Income Per Common Share | Net Income per Share Earnings per Share Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income attributable to Vail Resorts stockholders by the weighted-average shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, resulting in the issuance of shares of common stock that would then share in the earnings of Vail Resorts. In connection with the Company’s acquisition of Whistler Blackcomb in October 2016, the Company issued consideration in the form of shares of Vail Resorts common stock (the “Vail Shares”) and shares of the Company’s wholly-owned Canadian subsidiary (“Exchangeco”). Whistler Blackcomb shareholders elected to receive 3,327,719 Vail Shares and 418,095 shares of Exchangeco (the “Exchangeco Shares”). Both Vail Shares and Exchangeco Shares have a par value of $ 0.01 per share, and Exchangeco Shares, while outstanding, are substantially the economic equivalent of Vail Shares and are exchangeable, at any time prior to the seventh anniversary of the closing of the acquisition, into Vail Shares. The Company’s calculation of weighted-average shares outstanding includes the Exchangeco Shares. Presented below is basic and diluted EPS for the three months ended April 30, 2019 and 2018 (in thousands, except per share amounts): Three Months Ended April 30, 2019 2018 Basic Diluted Basic Diluted Net income per share: Net income attributable to Vail Resorts $ 292,134 $ 292,134 $ 256,252 $ 256,252 Weighted-average Vail Shares outstanding 40,198 40,198 40,379 40,379 Weighted-average Exchangeco Shares outstanding 57 57 59 59 Total Weighted-average shares outstanding 40,255 40,255 40,438 40,438 Effect of dilutive securities — 765 — 1,107 Total shares 40,255 41,020 40,438 41,545 Net income per share attributable to Vail Resorts $ 7.26 $ 7.12 $ 6.34 $ 6.17 The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. The number of shares issuable upon the exercise of share based awards excluded from the calculation of diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 54,000 and 5,000 for the three months ended April 30, 2019 and 2018, respectively. Presented below is basic and diluted EPS for the nine months ended April 30, 2019 and 2018 (in thousands, except per share amounts): Nine Months Ended April 30, 2019 2018 Basic Diluted Basic Diluted Net income per share: Net income attributable to Vail Resorts $ 390,688 $ 390,688 $ 463,558 $ 463,558 Weighted-average Vail Shares outstanding 40,307 40,307 40,313 40,313 Weighted-average Exchangeco Shares outstanding 57 57 61 61 Total Weighted-average shares outstanding 40,364 40,364 40,374 40,374 Effect of dilutive securities — 837 — 1,267 Total shares 40,364 41,201 40,374 41,641 Net income per share attributable to Vail Resorts $ 9.68 $ 9.48 $ 11.48 $ 11.13 The number of shares issuable upon the exercise of share based awards excluded from the calculation of diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 48,000 and 5,000 for the nine months ended April 30, 2019 and 2018 , respectively. Net income attributable to Vail Resorts decreased by approximately $72.9 million for the nine months ended April 30, 2019 compared to the prior year primarily due to a decrease in excess tax benefits of $49.6 million , which resulted primarily from employee exercises of in-the-money stock appreciation rights, and a one-time, provisional net tax benefit of approximately $64.6 million recorded during the three and nine months ended April 30, 2018, which was the result of comprehensive U.S. tax legislation, commonly referred to as the “Tax Act,” which was enacted by the U.S. government on December 22, 2017. Both of these items were recorded within (provision) benefit from income taxes on the Company’s Consolidated Condensed Statement of Operations. These decreases were partially offset by an increase in income from operations. Dividends During the three and nine months ended April 30, 2019 , the Company paid cash dividends of $1.76 and $4.70 per share, respectively ( $70.9 million and $189.6 million , respectively, in the aggregate). During the three and nine months ended April 30, 2018, the Company paid cash dividends of $1.47 and $3.576 per share, respectively ( $59.5 million and $144.7 million , respectively, in the aggregate). On June 5, 2019 , the Company’s Board of Directors declared a quarterly cash dividend of $1.76 per share for Vail Shares, payable on July 11, 2019 to stockholders of record as of June 26, 2019 . Additionally, a Canadian dollar equivalent dividend on the Exchangeco Shares will be payable on July 11, 2019 to the shareholders of record on June 26, 2019 . |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt, net as of April 30, 2019 , July 31, 2018 and April 30, 2018 is summarized as follows (in thousands): Maturity April 30, 2019 July 31, 2018 April 30, 2018 Vail Holdings Credit Agreement term loan (a) 2024 $ 926,250 $ 684,375 $ 693,750 Vail Holdings Credit Agreement revolver (a) 2024 — 130,000 — Whistler Credit Agreement revolver (b) 2023 26,127 65,353 31,153 Employee housing bonds 2027-2039 52,575 52,575 52,575 Canyons obligation 2063 338,823 334,509 333,078 Other (c) 2020-2032 19,636 9,270 9,430 Total debt 1,363,411 1,276,082 1,119,986 Less: Unamortized debt issuance costs 4,037 3,350 3,537 Less: Current maturities (d) 48,504 38,455 38,444 Long-term debt, net $ 1,310,870 $ 1,234,277 $ 1,078,005 (a) On August 15, 2018 , in order to fund the Stevens Pass and Triple Peaks acquisitions (see Note 6, Acquisitions), the Company’s wholly owned subsidiary, Vail Holdings, Inc. (“VHI”), entered into the Eighth Amended and Restated Credit Agreement (the “Vail Holdings Credit Agreement”), with Bank of America, N.A., as administrative agent, and other lenders named therein, through which these lenders agreed to provide an additional $265.6 million in incremental term loans and agreed, on behalf of all lenders, to extend the maturity date for the outstanding term loans and revolver facility under the Vail Holdings Credit Agreement to August 15, 2023 . Subsequently, on April 15, 2019, the Company entered into an amendment to the Vail Holdings Credit Agreement which primarily extended the maturity date for the outstanding term loans and revolver facility to April 15, 2024, increased the amount of dividends the Company is permitted to pay in each fiscal quarter under the agreement and increased the amount of the revolver facility by $100.0 million . The Vail Holdings Credit Agreement consists of a $500.0 million revolving credit facility and a $950.0 million term loan facility. VHI’s obligations under the Vail Holdings Credit Agreement are guaranteed by the Company and certain of its subsidiaries and are collateralized by a pledge of all the capital stock of VHI and substantially all of its subsidiaries (with certain additional exceptions for the pledge of the capital stock of foreign subsidiaries). In addition, pursuant to the terms of the Vail Holdings Credit Agreement, VHI has the ability to increase availability (under the revolver or in the form of term loans) to an aggregate principal amount not to exceed the greater of (i) $1.2 billion and (ii) the product of 2.75 and the trailing twelve-month Adjusted EBITDA, as defined in the Vail Holdings Credit Agreement. The term loan facility is subject to quarterly amortization of principal of approximately $11.9 million, which began on January 31, 2019, in equal installments, for a total of five percent of principal payable in each year and the final payment of all amounts outstanding, plus accrued and unpaid interest due in April 2024. The proceeds of the loans made under the Vail Holdings Credit Agreement may be used to fund the Company’s working capital needs, capital expenditures, acquisitions, investments and other general corporate purposes, including the issuance of letters of credit. Borrowings under the Vail Holdings Credit Agreement, including the term loan facility, bear interest annually at LIBOR plus 1.25% as of April 30, 2019 ( 3.73% as of April 30, 2019). Interest rate margins may fluctuate based upon the ratio of the Company’s Net Funded Debt to Adjusted EBITDA on a trailing four-quarter basis. The Vail Holdings Credit Agreement also includes a quarterly unused commitment fee, which is equal to a percentage determined by the Net Funded Debt to Adjusted EBITDA ratio, as each such term is defined in the Vail Holdings Credit Agreement, multiplied by the daily amount by which the Vail Holdings Credit Agreement commitment exceeds the total of outstanding loans and outstanding letters of credit ( 0.25% as of April 30, 2019). The unused amounts are accessible to the extent that the Net Funded Debt to Adjusted EBITDA ratio does not exceed the maximum ratio allowed at quarter-ends and the ratio of Adjusted EBITDA to interest on Funded Debt (as defined in the Vail Holdings Credit Agreement) does not fall below the minimum ratio allowed at quarter-ends. The Vail Holdings Credit Agreement provides for affirmative and negative covenants that restrict, among other things, the Company’s ability to incur indebtedness, dispose of assets, make capital expenditures, make distributions and make investments. In addition, the Vail Holdings Credit Agreement includes the following restrictive financial covenants: Net Funded Debt to Adjusted EBITDA ratio and Adjusted EBITDA to interest on Funded Debt ratio. (b) Whistler Mountain Resort Limited Partnership (“Whistler LP”) and Blackcomb Skiing Enterprises Limited Partnership (“Blackcomb LP”), together “The WB Partnerships,” are party to a credit agreement, dated as of November 12, 2013 (as amended, the “Whistler Credit Agreement”), by and among Whistler LP, Blackcomb LP, certain subsidiaries of Whistler LP and Blackcomb LP party thereto as guarantors (the “Whistler Subsidiary Guarantors”), the financial institutions party thereto as lenders and The Toronto-Dominion Bank, as administrative agent. The Whistler Credit Agreement consists of a C$300.0 million revolving credit facility. During the three months ended January 31, 2019, the Company entered into an amendment of the Whistler Credit Agreement which extended the maturity date of the revolving credit facility to December 15, 2023 . No other material terms of the Whistler Credit Agreement were altered. The WB Partnerships’ obligations under the Whistler Credit Agreement are guaranteed by the Whistler Subsidiary Guarantors and are collateralized by a pledge of the capital stock of the Whistler Subsidiary Guarantors and a pledge of substantially all of the assets of Whistler LP, Blackcomb LP and the Whistler Subsidiary Guarantors. In addition, pursuant to the terms of the Whistler Credit Agreement, the WB Partnerships have the ability to increase the commitment amount by up to C$75.0 million subject to lender approval. Borrowings under the Whistler Credit Agreement are available in Canadian or U.S. dollars and bear interest annually, subject to an applicable margin based on the WB Partnerships’ Consolidated Total Leverage Ratio (as defined in the Whistler Credit Agreement), with pricing as of April 30, 2019, in the case of borrowings (i) in Canadian dollars, at the WB Partnerships’ option, either (a) at the Canadian Prime Rate plus 0.75% per annum or (b) by way of the issuance of bankers’ acceptances plus 1.75% per annum; and (ii) in U.S. dollars, at the WB Partnerships option, either at (a) the U.S. Base Rate plus 0.75% per annum or (b) Bankers Acceptance Rate plus 1.75% per annum . As of April 30, 2019 , all borrowings under the Whistler Credit Agreement were made in Canadian dollars and by way of the issuance of bankers’ acceptances plus 1.75% (approximately 3.78% ). The Whistler Credit Agreement also includes a quarterly unused commitment fee based on the Consolidated Total Leverage Ratio, which as of April 30, 2019 is equal to 0.3937% per annum. The Whistler Credit Agreement provides for affirmative and negative covenants that restrict, among other things, the WB Partnerships’ ability to incur indebtedness and liens, dispose of assets, make capital expenditures, make distributions and make investments. In addition, the Whistler Credit Agreement includes the restrictive financial covenants (leverage ratios and interest coverage ratios) customary for facilities of this type. (c) During the three and nine months ended April 30, 2019, the Company completed two real estate sales transactions that were accounted for as financing arrangements as a result of the Company’s continuing involvement with the underlying assets that were sold, including but not limited to, the obligation to repurchase finished commercial space from the development projects upon completion. The Company received approximately $11.2 million of proceeds for these sales transactions during the three months ended April 30, 2019, which are reflected within long-term debt, net. (d) Current maturities represent principal payments due in the next 12 months. Aggregate maturities of debt outstanding as of April 30, 2019 reflected by fiscal year (August 1 through July 31) are as follows (in thousands): Total 2019 (May 2019 through July 2019) $ 12,046 2020 54,666 2021 48,580 2022 48,648 2023 48,719 Thereafter 1,150,752 Total debt $ 1,363,411 The Company recorded gross interest expense of $19.6 million and $15.6 million for the three months ended April 30, 2019 and 2018 , respectively, of which $0.3 million was amortization of deferred financing costs in both periods. The Company recorded gross interest expense of $59.2 million and $46.8 million for the nine months ended April 30, 2019 and 2018, respectively, of which $1.0 million was amortization of deferred financing costs in both periods. The Company was in compliance with all of its financial and operating covenants required to be maintained under its debt instruments for all periods presented. In connection with the acquisition of Whistler Blackcomb in October 2016, VHI funded a portion of the purchase price through an intercompany loan to Whistler Blackcomb of $210.0 million , which was effective as of November 1, 2016, and requires foreign currency remeasurement to Canadian dollars, the functional currency for Whistler Blackcomb. As a result, foreign currency fluctuations associated with the loan are recorded within the Company’s results of operations. The Company recognized approximately $3.3 million and $5.2 million , respectively, of non-cash foreign currency losses on the intercompany loan to Whistler Blackcomb for the three and nine months ended April 30, 2019 on the Company’s Consolidated Condensed Statements of Operations. The Company recognized approximately $9.5 million and $6.5 million , respectively, of non-cash foreign currency losses on the intercompany loan to Whistler Blackcomb for the three and nine months ended April 30, 2018 on the Company’s Consolidated Condensed Statements of Operations. |
Acquisitions
Acquisitions | 9 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Falls Creek and Hotham Resorts On April 4, 2019, the Company, through a wholly-owned subsidiary, acquired ski field leases and related infrastructure used to operate two resorts in Victoria, Australia. The Company acquired Australian Alpine Enterprises Holdings Pty. Ltd and all related corporate entities that operate the Falls Creek and Hotham resorts from Living and Leisure Australia Group, a subsidiary of Merlin Entertainments, for a cash purchase price of approximately AU $178.9 million ( $127.4 million ), after adjustments for certain agreed-upon terms, including an increase in the purchase price for operating losses incurred for the period from December 29, 2018 through closing. The acquisition included the mountain operations of both resorts, including base area skier services (ski and snowboard school facilities, retail and rental, reservation and property management operations). The following summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed at the date the transaction was effective (in thousands): Acquisition Date Estimated Fair Value Current assets $ 6,979 Property, plant and equipment 56,264 Goodwill 71,111 Identifiable intangible assets and other assets 5,451 Liabilities (12,453 ) Net assets acquired $ 127,352 Identifiable intangible assets acquired in the transaction were primarily related to trade names. The excess of the purchase price over the aggregate estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies, the assembled workforce of Falls Creek and Hotham and other factors. None of the goodwill is expected to be deductible for income tax purposes under Australian tax law. The Company recognized $4.7 million of acquisition related expenses associated with the transaction, including stamp duty expense of $2.9 million , within Mountain and Lodging operating expense in its Consolidated Condensed Statement of Operations for the nine months ended April 30, 2019. The operating results of Falls Creek and Hotham are reported within the Mountain segment prospectively from the date of acquisition. Stevens Pass Resort On August 15, 2018, the Company, through a wholly-owned subsidiary, acquired Stevens Pass Resort in the State of Washington from Ski Resort Holdings, LLC, an affiliate of Oz Real Estate (“Ski Resort Holdings”), for total cash consideration of $64.0 million , after adjustments for certain agreed-upon terms. The Company borrowed $70.0 million on August 15, 2018 under its Vail Holdings Credit Agreement term loan (see Note 5, Long-Term Debt) to fund the transaction and associated acquisition related expenses. The acquisition included the mountain operations of the resort, including base area skier services (food and beverage, retail and rental, lift ticket offices and ski and snowboard school facilities). The following summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed at the date the transaction was effective (in thousands): Acquisition Date Estimated Fair Value Current assets $ 752 Property, plant and equipment 34,865 Goodwill 28,878 Identifiable intangible assets 2,680 Deferred income taxes, net 886 Liabilities (4,029 ) Net assets acquired $ 64,032 The excess of the purchase price over the aggregate estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies, the assembled workforce of Stevens Pass and other factors, and is expected to be deductible for income tax purposes. The Company recognized $1.2 million of acquisition related expenses associated with the transaction within Mountain and Lodging operating expense in its Consolidated Condensed Statement of Operations for the nine months ended April 30, 2019. The operating results of Stevens Pass are reported within the Mountain segment prospectively from the date of acquisition. Okemo Mountain Resort, Crested Butte Resort and Mount Sunapee Resort On September 27, 2018, the Company, through a wholly-owned subsidiary, acquired Triple Peaks, LLC (“Triple Peaks”), the parent company of Okemo Mountain Resort in Vermont, Crested Butte Mountain Resort in Colorado, and Mount Sunapee Resort in New Hampshire, for a cash purchase price of approximately $74.1 million , after adjustments for certain agreed-upon terms. In addition, contemporaneous with the closing of the transaction, Triple Peaks paid $155.0 million to pay the remaining obligations of the leases that all three resorts had with Ski Resort Holdings, with funds provided by the Company. Accordingly, the total purchase price, including the repayment of lease obligations, was $229.1 million , for which the Company utilized cash on hand and borrowed $195.6 million under the Vail Holdings Credit Agreement term loan (see Note 5, Long-Term Debt) to fund the transaction and associated acquisition related expenses. The Company obtained a new Special Use Permit from the U.S. Forest Service for Crested Butte, and assumed the state land leases for Okemo and Mount Sunapee. The acquisition included the mountain operations of the resorts, including base area skier services (food and beverage, retail and rental, lift ticket offices and ski and snowboard school facilities). The following summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed at the date the transaction was effective (in thousands): Acquisition Date Estimated Fair Value Current assets $ 5,197 Property, plant and equipment 159,799 Goodwill 51,633 Identifiable intangible assets 27,360 Deferred income taxes, net 3,093 Liabilities (17,989 ) Net assets acquired $ 229,093 Identifiable intangible assets acquired in the transaction were primarily related to property management contracts and trade names. The excess of the purchase price over the aggregate estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies, the assembled workforce of the resorts and other factors, and is expected to be deductible for income tax purposes. The Company recognized $2.8 million of acquisition related expenses associated with the transaction within Mountain and Lodging operating expense in its Consolidated Condensed Statement of Operations for the nine months ended April 30, 2019. The operating results of Triple Peaks are reported within the Mountain and Lodging segments prospectively from the date of acquisition. The estimated fair values of assets acquired and liabilities assumed in the acquisitions of Falls Creek, Hotham, Stevens Pass and Triple Peaks are preliminary and are based on the information that was available as of the respective acquisition dates. The Company believes that this information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed; however, the Company is obtaining additional information necessary to finalize those estimated fair values. Therefore, the preliminary measurements of estimated fair values reflected are subject to change. The Company expects to finalize the valuation and complete the purchase consideration allocation no later than one year from the respective acquisition dates. Pro Forma Financial Information The following presents the unaudited pro forma consolidated financial information of the Company as if the acquisitions of Falls Creek, Hotham, Stevens Pass and Triple Peaks were completed on August 1, 2017, the beginning of the fiscal year preceding the fiscal year in which the acquisitions occurred. The following unaudited pro forma financial information includes adjustments for (i) depreciation on acquired property, plant and equipment; (ii) amortization of intangible assets recorded at the date of the transactions; (iii) lease expenses incurred by the prior owners which the Company will not be subject to; (iv) transaction and business integration related costs; and (v) interest expense associated with financing the transactions. This unaudited pro forma financial information is presented for informational purposes only and does not purport to be indicative of the results of future operations or the results that would have occurred had the transaction taken place on August 1, 2017 (in thousands, except per share amounts). Three Months Ended April 30, 2019 2018 Pro forma net revenue $ 958,051 $ 901,832 Pro forma net income attributable to Vail Resorts, Inc. $ 293,002 $ 265,119 Pro forma basic net income per share attributable to Vail Resorts, Inc. $ 7.28 $ 6.56 Pro forma diluted net income per share attributable to Vail Resorts, Inc. $ 7.14 $ 6.38 Nine Months Ended April 30, 2019 2018 Pro forma net revenue $ 2,059,722 $ 1,949,438 Pro forma net income attributable to Vail Resorts, Inc. $ 395,633 $ 474,687 Pro forma basic net income per share attributable to Vail Resorts, Inc. $ 9.80 $ 11.76 Pro forma diluted net income per share attributable to Vail Resorts, Inc. $ 9.60 $ 11.40 |
Supplementary Balance Sheet Inf
Supplementary Balance Sheet Information | 9 Months Ended |
Apr. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplementary Balance Sheet Information | Supplementary Balance Sheet Information The composition of property, plant and equipment follows (in thousands): April 30, 2019 July 31, 2018 April 30, 2018 Land and land improvements $ 618,545 $ 552,271 $ 553,366 Buildings and building improvements 1,279,117 1,193,528 1,194,877 Machinery and equipment 1,157,424 1,007,250 1,024,483 Furniture and fixtures 304,345 283,694 275,959 Software 118,678 113,699 110,789 Vehicles 63,443 60,697 60,266 Construction in progress 48,728 59,579 35,895 Gross property, plant and equipment 3,590,280 3,270,718 3,255,635 Accumulated depreciation (1,742,846 ) (1,643,499 ) (1,614,908 ) Property, plant and equipment, net $ 1,847,434 $ 1,627,219 $ 1,640,727 The composition of accounts payable and accrued liabilities follows (in thousands): April 30, 2019 July 31, 2018 April 30, 2018 Trade payables $ 80,218 $ 80,793 $ 58,228 Deferred revenue 297,874 282,103 251,110 Accrued salaries, wages and deferred compensation 37,817 40,034 24,645 Accrued benefits 42,732 33,963 37,776 Deposits 32,090 26,646 24,326 Other liabilities 52,329 40,994 33,773 Total accounts payable and accrued liabilities $ 543,060 $ 504,533 $ 429,858 The composition of other long-term liabilities follows (in thousands): April 30, 2019 July 31, 2018 April 30, 2018 Private club deferred initiation fee revenue $ 111,294 $ 114,319 $ 116,375 Unfavorable lease obligation, net 19,733 21,839 22,537 Other long-term liabilities 137,323 155,348 140,885 Total other long-term liabilities $ 268,350 $ 291,506 $ 279,797 The changes in the net carrying amount of goodwill allocated between the Company’s segments for the nine months ended April 30, 2019 are as follows (in thousands): Mountain Lodging Goodwill, net Balance at July 31, 2018 $ 1,407,787 $ 67,899 $ 1,475,686 Acquisitions 151,622 — 151,622 Effects of changes in foreign currency exchange rates (30,441 ) — (30,441 ) Balance at April 30, 2019 $ 1,528,968 $ 67,899 $ 1,596,867 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Apr. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB issued fair value guidance that establishes how reporting entities should measure fair value for measurement and disclosure purposes. The guidance establishes a common definition of fair value applicable to all assets and liabilities measured at fair value and prioritizes the inputs into valuation techniques used to measure fair value. Accordingly, the Company uses valuation techniques which maximize the use of observable inputs and minimize the use of unobservable inputs when determining fair value. The three levels of the hierarchy are as follows: Level 1: Inputs that reflect unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities; Level 2: Inputs include quoted prices for similar assets and liabilities in active and inactive markets or that are observable for the asset or liability either directly or indirectly; and Level 3: Unobservable inputs which are supported by little or no market activity. The table below summarizes the Company’s cash equivalents, other current assets and Contingent Consideration measured at estimated fair value (all other assets and liabilities measured at fair value are immaterial) (in thousands). Estimated Fair Value Measurement as of April 30, 2019 Description Total Level 1 Level 2 Level 3 Assets: Money Market $ 3,037 $ 3,037 $ — $ — Commercial Paper $ 2,401 $ — $ 2,401 $ — Certificates of Deposit $ 10,092 $ — $ 10,092 $ — Liabilities: Contingent Consideration $ 25,300 $ — $ — $ 25,300 Estimated Fair Value Measurement as of July 31, 2018 Description Total Level 1 Level 2 Level 3 Assets: Money Market $ 3,021 $ 3,021 $ — $ — Commercial Paper $ 2,401 $ — $ 2,401 $ — Certificates of Deposit $ 11,249 $ — $ 11,249 $ — Liabilities: Contingent Consideration $ 21,900 $ — $ — $ 21,900 Estimated Fair Value Measurement as of April 30, 2018 Description Total Level 1 Level 2 Level 3 Assets: Money Market $ 3,017 $ 3,017 $ — $ — Commercial Paper $ 2,401 $ — $ 2,401 $ — Certificates of Deposit $ 6,849 $ — $ 6,849 $ — Liabilities: Contingent Consideration $ 21,300 $ — $ — $ 21,300 The Company’s cash equivalents and other current assets are measured utilizing quoted market prices or pricing models whereby all significant inputs are either observable or corroborated by observable market data. The changes in Contingent Consideration during the nine months ended April 30, 2019 and 2018 were as follows (in thousands): Balance as of July 31, 2018 and 2017, respectively $ 21,900 $ 27,400 Payments (67 ) (3,646 ) Change in estimated fair value 3,467 (2,454 ) Balance as of April 30, 2019 and 2018, respectively $ 25,300 $ 21,300 The lease for Park City provides for participating contingent payments (the “Contingent Consideration”) to the landlord of 42% of the amount by which EBITDA for the Park City resort operations, as calculated under the lease, exceeds approximately $35 million, as established at the transaction date, with such threshold amount subsequently increased annually by an inflation linked index and a 10% adjustment for any capital improvements or investments made under the lease by the Company. The estimated fair value of Contingent Consideration includes the future period resort operations of Park City in the calculation of EBITDA on which participating contingent payments are made, which is determined on the basis of estimated subsequent year performance, escalated by an assumed growth factor. The Company estimated the fair value of the Contingent Consideration payments using an option pricing valuation model. Key assumptions included a discount rate of 11.15%, volatility of 17.0% and future period Park City EBITDA and capital expenditures, which are unobservable inputs and thus are considered Level 3 inputs. The Company prepared a sensitivity analysis to evaluate the effect that changes on certain key assumptions would have on the estimated fair value of the Contingent Consideration. A change in the discount rate of 100 basis points or a 5% change in estimated subsequent year performance would result in a change in the estimated fair value within the range of approximately $3.8 million to $5.3 million . Contingent Consideration is classified as a liability, which is remeasured to fair value at each reporting date until the contingency is resolved. During the nine months ended April 30, 2019 , the Company made a payment to the landlord for Contingent Consideration of approximately $0.1 million and recorded an increase of approximately $3.5 million primarily related to the estimated Contingent Consideration payment for the fiscal year ending July 31, 2019. These changes resulted in an estimated fair value of the Contingent Consideration of approximately $25.3 million , which is reflected in accounts payable and accrued liabilities and other long-term liabilities in the Consolidated Condensed Balance Sheet. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Metropolitan Districts The Company credit-enhances $6.3 million of bonds issued by Holland Creek Metropolitan District (“HCMD”) through a $6.4 million letter of credit issued under the Vail Holdings Credit Agreement. HCMD’s bonds were issued and used to build infrastructure associated with the Company’s Red Sky Ranch residential development. The Company has agreed to pay capital improvement fees to the Red Sky Ranch Metropolitan District (“RSRMD”) until RSRMD’s revenue streams from property taxes are sufficient to meet debt service requirements under HCMD’s bonds. The Company has recorded a liability of $2.0 million primarily within other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets, as of April 30, 2019 , July 31, 2018 and April 30, 2018 , respectively, with respect to the estimated present value of future RSRMD capital improvement fees. The Company estimates it will make capital improvement fee payments under this arrangement through the fiscal year ending July 31, 2031 . Guarantees/Indemnifications As of April 30, 2019 , the Company had various letters of credit outstanding totaling $71.9 million , consisting of $53.4 million to support the Employee Housing Bonds and $18.5 million primarily for workers’ compensation, a wind energy purchase agreement and insurance-related deductibles. The Company also had surety bonds of $10.4 million as of April 30, 2019 , primarily to provide collateral for its U.S. workers compensation self-insurance programs. In addition to the guarantees noted above, the Company has entered into contracts in the normal course of business that include certain indemnifications under which it could be required to make payments to third parties upon the occurrence or non-occurrence of certain future events. These indemnities include indemnities related to licensees in connection with third-parties’ use of the Company’s trademarks and logos, liabilities associated with the infringement of other parties’ technology and software products, liabilities associated with the use of easements, liabilities associated with employment of contract workers and the Company’s use of trustees, and liabilities associated with the Company’s use of public lands and environmental matters. The duration of these indemnities generally is indefinite and generally do not limit the future payments the Company could be obligated to make. As permitted under applicable law, the Company and certain of its subsidiaries have agreed to indemnify their directors and officers over their lifetimes for certain events or occurrences while the officer or director is, or was, serving the Company or its subsidiaries in such a capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that should enable the Company to recover a portion of any amounts paid. Unless otherwise noted, the Company has not recorded any significant liabilities for the letters of credit, indemnities and other guarantees noted above in the accompanying Consolidated Condensed Financial Statements, either because the Company has recorded on its Consolidated Condensed Balance Sheets the underlying liability associated with the guarantee, the guarantee is with respect to the Company’s own performance and is therefore not subject to the measurement requirements as prescribed by GAAP, or because the Company has calculated the estimated fair value of the indemnification or guarantee to be immaterial based on the current facts and circumstances that would trigger a payment under the indemnification clause. In addition, with respect to certain indemnifications, it is not possible to determine the maximum potential amount of liability under these potential obligations due to the unique set of facts and circumstances likely to be involved in each particular claim and indemnification provision. Historically, payments made by the Company under these obligations have not been material. As noted above, the Company makes certain indemnifications to licensees for their use of the Company’s trademarks and logos. The Company does not record any liabilities with respect to these indemnifications. Additionally, the Company has entered into strategic long-term season pass alliance agreements with third-party mountain resorts in which the Company has committed to pay minimum revenue guarantees over the remaining terms of these agreements. Self-Insurance The Company is self-insured for claims under its U.S. health benefit plans and for the majority of workers’ compensation claims in the U.S. Workers compensation claims in the U.S. are subject to stop loss policies. The self-insurance liability related to workers’ compensation is determined actuarially based on claims filed. The self-insurance liability related to claims under the Company’s U.S. health benefit plans is determined based on analysis of actual claims. The amounts related to these claims are included as a component of accrued benefits in accounts payable and accrued liabilities (see Note 7, Supplementary Balance Sheet Information). Legal The Company is a party to various lawsuits arising in the ordinary course of business. Management believes the Company has adequate insurance coverage and/or has accrued for all loss contingencies for asserted and unasserted matters deemed to be probable losses and estimable. As of April 30, 2019 , July 31, 2018 and April 30, 2018 , the accruals for the above loss contingencies were not material individually or in the aggregate. |
Segment Information
Segment Information | 9 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment 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 concessionaire 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. 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 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 consolidated condensed 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 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 or loss 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 following table presents financial information by reportable segment, which is used by management in evaluating performance and allocating resources (in thousands): Three Months Ended April 30, Nine Months Ended April 30, 2019 2018 2019 2018 Net revenue: Lift $ 526,881 $ 452,723 $ 999,124 $ 860,103 Ski school 110,755 101,213 207,271 185,767 Dining 78,928 70,678 162,629 142,890 Retail/rental 114,082 104,162 285,860 265,015 Other 47,252 43,748 144,093 137,776 Total Mountain net revenue 877,898 772,524 1,798,977 1,591,551 Lodging 79,848 68,827 227,997 204,455 Total Resort net revenue 957,746 841,351 2,026,974 1,796,006 Real Estate 241 3,140 595 3,910 Total net revenue $ 957,987 $ 844,491 $ 2,027,569 $ 1,799,916 Segment operating expense: Mountain $ 410,254 $ 363,878 $ 1,056,625 $ 936,567 Lodging 67,221 58,352 205,717 185,957 Resort 477,475 422,230 1,262,342 1,122,524 Real Estate, net 1,382 (597 ) 4,141 2,301 Total segment operating expense $ 478,857 $ 421,633 $ 1,266,483 $ 1,124,825 Gain on sale of real property $ 268 $ — $ 268 $ 515 Mountain equity investment income, net $ 445 $ 607 $ 1,555 $ 1,094 Reported EBITDA: Mountain $ 468,089 $ 409,253 $ 743,907 $ 656,078 Lodging 12,627 10,475 22,280 18,498 Resort 480,716 419,728 766,187 674,576 Real Estate (873 ) 3,737 (3,278 ) 2,124 Total Reported EBITDA $ 479,843 $ 423,465 $ 762,909 $ 676,700 Real estate held for sale and investment $ 101,251 $ 99,623 $ 101,251 $ 99,623 Reconciliation to net income attributable to Vail Resorts, Inc.: Total Reported EBITDA $ 479,843 $ 423,465 $ 762,909 $ 676,700 Depreciation and amortization (55,260 ) (54,104 ) (161,541 ) (154,132 ) Change in estimated fair value of contingent consideration (1,567 ) 2,454 (3,467 ) 2,454 Gain (loss) on disposal of fixed assets and other, net 27 (3,230 ) 505 (2,125 ) Investment income and other, net 1,727 736 2,697 1,516 Foreign currency loss on intercompany loans (3,319 ) (9,502 ) (5,180 ) (6,511 ) Interest expense, net (19,575 ) (15,648 ) (59,215 ) (46,795 ) Income before (provision) benefit from income taxes 401,876 344,171 536,708 471,107 (Provision) benefit from income taxes (93,346 ) (71,896 ) (120,914 ) 17,914 Net income 308,530 272,275 415,794 489,021 Net income attributable to noncontrolling interests (16,396 ) (16,023 ) (25,106 ) (25,463 ) Net income attributable to Vail Resorts, Inc. $ 292,134 $ 256,252 $ 390,688 $ 463,558 |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Apr. 30, 2019 | |
Payments for Repurchase of Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program On March 9, 2006, the Company’s Board of Directors approved a share repurchase program, authorizing the Company to repurchase up to 3,000,000 Vail Shares. On July 16, 2008, the Company’s Board of Directors increased the authorization by an additional 3,000,000 Vail Shares, and on December 4, 2015, the Company’s Board of Directors increased the authorization by an additional 1,500,000 Vail Shares for a total authorization to repurchase up to 7,500,000 Vail Shares. The Company repurchased zero and 353,007 Vail Shares (at a total cost of approximately $85.0 million ), respectively, during the three and nine months ended April 30, 2019. The Company repurchased 115,422 Vail Shares (at a total cost of $25.8 million ) during the three and nine months ended April 30, 2018. Since inception of its share repurchase program through April 30, 2019 , the Company has repurchased 5,904,723 Vail Shares for approximately $358.0 million . As of April 30, 2019 , 1,595,277 Vail Shares remained available to repurchase under the existing share repurchase program, which has no expiration date. Vail Shares purchased pursuant to the repurchase program will be held as treasury shares and may be used for the issuance of Vail Shares under the Company’s employee share award plan. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Consolidated Financial Statements Policy [Table Text Block] | Consolidated Condensed Financial Statements— In the opinion of the Company, the accompanying Consolidated Condensed Financial Statements reflect all adjustments necessary to state fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. Results for interim periods are not indicative of the results for the entire fiscal year, particularly given the significant seasonality to the Company’s operating cycle. The accompanying Consolidated Condensed Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2018 . Certain information and footnote disclosures, including significant accounting policies, normally included in fiscal year financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) have been condensed or omitted. The Consolidated Condensed Balance Sheet as of July 31, 2018 was derived from audited financial statements. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition — The Company recognizes revenues from contracts with customers when or as control of goods or services promised in the contracts is transferred in an amount that reflects consideration to which it expects to be entitled to in exchange for those goods or services. The Company determines the appropriate revenue recognition for contracts with customers by analyzing the type, terms and conditions of contracts or arrangements with customers. Certain contracts with customers contain multiple performance obligations in which case revenue is allocated to each distinct and separate performance obligation based on its relative standalone selling price. See Note 3, Revenues, for more information. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Standards Adopted Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in Topic 605. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. Subsequent to the issuance of ASU 2014-09, the FASB issued several amendments, which did not change the core principle of the guidance and were intended to clarify and improve understanding of certain topics included within the revenue standard. On August 1, 2018, the Company adopted this standard using the modified retrospective transition method for contracts which were not completed as of August 1, 2018. In accordance with this transition method, results for reporting periods beginning after August 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historical accounting methodology under Topic 605. On August 1, 2018, as a result of adopting this standard, the Company recorded an approximate $7.5 million reduction of retained earnings with a corresponding increase in accounts payable and accrued liabilities, which was primarily associated with the measurement of the loyalty reward programs under the new standard at an estimated fair value of underlying products or services expected to be delivered to satisfy the Company’s obligations associated with such loyalty programs. The application of this standard had an immaterial impact on total net revenue and net income attributable to Vail Resorts, Inc. for the three and nine months ended April 30, 2019. In accordance with the new revenue recognition standard disclosure requirements, the impact of adoption of Topic 606 on the Consolidated Condensed Balance Sheet as of April 30, 2019 was as follows (in thousands): As of April 30, 2019 Balance Sheet Balances Without Adoption of Topic 606 Adjustments As Reported (Under Topic 606) Liabilities Accounts payable and accrued liabilities $ 536,130 $ 6,930 $ 543,060 Stockholders’ equity Retained earnings $ 927,257 $ (6,930 ) $ 920,327 In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This standard provides guidance for eight targeted changes with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. The Company adopted this accounting standard on August 1, 2018, which did not have an impact on its consolidated condensed financial statements. In November 2016, the FASB issued ASU No. 2016-18, “Restricted Cash,” which requires that a statement of cash flows present the change during a period for the total of cash, cash equivalents and restricted cash. Historically, under previous guidance, changes in restricted cash have been included within operating, investing or financing activities, which were eliminated under the new standard. The Company adopted this standard as of August 1, 2018, which required retrospective application to all periods presented. As a result, cash provided by operating activities during the nine months ended April 30, 2018 decreased by $2.6 million under the new guidance as compared to what was reported under the previously required guidance. Additionally, due to the inclusion of restricted cash in the beginning and end of period balances, cash, cash equivalents and restricted cash as of April 30, 2018 and July 31, 2017 increased $7.4 million and $10.3 million , respectively, as compared to what was reported under the previously required guidance. During peak operations of the North American ski season, the Company’s restricted cash balance is primarily associated with customer reservations deposits that are required to be held in a trust pursuant to statutory requirements until such reservations are fulfilled. |
Accounting Standards Being Evaluated | Standards Being Evaluated The authoritative guidance listed below is currently being evaluated for its impact to Company policies upon adoption as well as any significant implementation matters yet to be addressed. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which supersedes “Leases (Topic 840).” The standard requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance, on the balance sheet and disclose key information about leasing arrangements. The standard also allows for an accounting policy election not to recognize on the balance sheet lease assets and liabilities for leases with a term of 12 months or less. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset on their balance sheets, while lessor accounting will be largely unchanged. The standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those years (the Company’s first quarter of fiscal 2020), and as originally written must be applied using a modified retrospective transition approach to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with early adoption permitted. In July 2018, the FASB made targeted improvements to the standard, including providing an additional and optional transition method. Under this method, an entity initially applies the standard at the adoption date, including the election of certain transition reliefs, and recognizes a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company is currently evaluating the impacts the adoption of this accounting standard will have on the Company’s financial position or results of operations and cash flows and related disclosures. Additionally, the Company has made progress in centralizing lease contracts in a lease accounting software system and has completed testing of the completeness and accuracy of this information. During the fourth quarter of the fiscal year ending July 31, 2019, the Company expects to finalize various technical interpretations, such as determination of discount rates used in the measurement of lease liabilities, for adoption. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Apr. 30, 2019 | |
Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | 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, 2019 and 2018 (in thousands): Three Months Ended April 30, Nine Months Ended April 30, 2019 2018 2019 2018 Mountain net revenue: Lift $ 526,881 $ 452,723 $ 999,124 $ 860,103 Ski School 110,755 101,213 207,271 185,767 Dining 78,928 70,678 162,629 142,890 Retail/Rental 114,082 104,162 285,860 265,015 Other 47,252 43,748 144,093 137,776 Total Mountain net revenue $ 877,898 $ 772,524 $ 1,798,977 $ 1,591,551 Lodging net revenue: Owned hotel rooms $ 12,352 $ 12,518 $ 43,499 $ 43,506 Managed condominium rooms 30,671 24,604 69,835 58,133 Dining 11,067 8,660 37,385 32,409 Transportation 8,578 8,164 18,774 18,177 Golf — — 9,628 8,903 Other 13,278 11,074 37,697 32,626 75,946 65,020 216,818 193,754 Payroll cost reimbursements 3,902 3,807 11,179 10,701 Total Lodging net revenue $ 79,848 $ 68,827 $ 227,997 $ 204,455 Total Resort net revenue $ 957,746 $ 841,351 $ 2,026,974 $ 1,796,006 Total Real Estate net revenue 241 3,140 595 3,910 Total net revenue $ 957,987 $ 844,491 $ 2,027,569 $ 1,799,916 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |
Summary of Calculation of Basic And Diluted EPS | Three Months Ended April 30, 2019 2018 Basic Diluted Basic Diluted Net income per share: Net income attributable to Vail Resorts $ 292,134 $ 292,134 $ 256,252 $ 256,252 Weighted-average Vail Shares outstanding 40,198 40,198 40,379 40,379 Weighted-average Exchangeco Shares outstanding 57 57 59 59 Total Weighted-average shares outstanding 40,255 40,255 40,438 40,438 Effect of dilutive securities — 765 — 1,107 Total shares 40,255 41,020 40,438 41,545 Net income per share attributable to Vail Resorts $ 7.26 $ 7.12 $ 6.34 $ 6.17 The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. The number of shares issuable upon the exercise of share based awards excluded from the calculation of diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 54,000 and 5,000 for the three months ended April 30, 2019 and 2018, respectively. Presented below is basic and diluted EPS for the nine months ended April 30, 2019 and 2018 (in thousands, except per share amounts): Nine Months Ended April 30, 2019 2018 Basic Diluted Basic Diluted Net income per share: Net income attributable to Vail Resorts $ 390,688 $ 390,688 $ 463,558 $ 463,558 Weighted-average Vail Shares outstanding 40,307 40,307 40,313 40,313 Weighted-average Exchangeco Shares outstanding 57 57 61 61 Total Weighted-average shares outstanding 40,364 40,364 40,374 40,374 Effect of dilutive securities — 837 — 1,267 Total shares 40,364 41,201 40,374 41,641 Net income per share attributable to Vail Resorts $ 9.68 $ 9.48 $ 11.48 $ 11.13 The number of shares issuable upon the exercise of share based awards excluded from the calculation of diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 48,000 and 5,000 for the nine months ended April 30, 2019 and 2018 , respectively. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | Long-term debt, net as of April 30, 2019 , July 31, 2018 and April 30, 2018 is summarized as follows (in thousands): Maturity April 30, 2019 July 31, 2018 April 30, 2018 Vail Holdings Credit Agreement term loan (a) 2024 $ 926,250 $ 684,375 $ 693,750 Vail Holdings Credit Agreement revolver (a) 2024 — 130,000 — Whistler Credit Agreement revolver (b) 2023 26,127 65,353 31,153 Employee housing bonds 2027-2039 52,575 52,575 52,575 Canyons obligation 2063 338,823 334,509 333,078 Other (c) 2020-2032 19,636 9,270 9,430 Total debt 1,363,411 1,276,082 1,119,986 Less: Unamortized debt issuance costs 4,037 3,350 3,537 Less: Current maturities (d) 48,504 38,455 38,444 Long-term debt, net $ 1,310,870 $ 1,234,277 $ 1,078,005 (a) On August 15, 2018 , in order to fund the Stevens Pass and Triple Peaks acquisitions (see Note 6, Acquisitions), the Company’s wholly owned subsidiary, Vail Holdings, Inc. (“VHI”), entered into the Eighth Amended and Restated Credit Agreement (the “Vail Holdings Credit Agreement”), with Bank of America, N.A., as administrative agent, and other lenders named therein, through which these lenders agreed to provide an additional $265.6 million in incremental term loans and agreed, on behalf of all lenders, to extend the maturity date for the outstanding term loans and revolver facility under the Vail Holdings Credit Agreement to August 15, 2023 . Subsequently, on April 15, 2019, the Company entered into an amendment to the Vail Holdings Credit Agreement which primarily extended the maturity date for the outstanding term loans and revolver facility to April 15, 2024, increased the amount of dividends the Company is permitted to pay in each fiscal quarter under the agreement and increased the amount of the revolver facility by $100.0 million . The Vail Holdings Credit Agreement consists of a $500.0 million revolving credit facility and a $950.0 million term loan facility. VHI’s obligations under the Vail Holdings Credit Agreement are guaranteed by the Company and certain of its subsidiaries and are collateralized by a pledge of all the capital stock of VHI and substantially all of its subsidiaries (with certain additional exceptions for the pledge of the capital stock of foreign subsidiaries). In addition, pursuant to the terms of the Vail Holdings Credit Agreement, VHI has the ability to increase availability (under the revolver or in the form of term loans) to an aggregate principal amount not to exceed the greater of (i) $1.2 billion and (ii) the product of 2.75 and the trailing twelve-month Adjusted EBITDA, as defined in the Vail Holdings Credit Agreement. The term loan facility is subject to quarterly amortization of principal of approximately $11.9 million, which began on January 31, 2019, in equal installments, for a total of five percent of principal payable in each year and the final payment of all amounts outstanding, plus accrued and unpaid interest due in April 2024. The proceeds of the loans made under the Vail Holdings Credit Agreement may be used to fund the Company’s working capital needs, capital expenditures, acquisitions, investments and other general corporate purposes, including the issuance of letters of credit. Borrowings under the Vail Holdings Credit Agreement, including the term loan facility, bear interest annually at LIBOR plus 1.25% as of April 30, 2019 ( 3.73% as of April 30, 2019). Interest rate margins may fluctuate based upon the ratio of the Company’s Net Funded Debt to Adjusted EBITDA on a trailing four-quarter basis. The Vail Holdings Credit Agreement also includes a quarterly unused commitment fee, which is equal to a percentage determined by the Net Funded Debt to Adjusted EBITDA ratio, as each such term is defined in the Vail Holdings Credit Agreement, multiplied by the daily amount by which the Vail Holdings Credit Agreement commitment exceeds the total of outstanding loans and outstanding letters of credit ( 0.25% as of April 30, 2019). The unused amounts are accessible to the extent that the Net Funded Debt to Adjusted EBITDA ratio does not exceed the maximum ratio allowed at quarter-ends and the ratio of Adjusted EBITDA to interest on Funded Debt (as defined in the Vail Holdings Credit Agreement) does not fall below the minimum ratio allowed at quarter-ends. The Vail Holdings Credit Agreement provides for affirmative and negative covenants that restrict, among other things, the Company’s ability to incur indebtedness, dispose of assets, make capital expenditures, make distributions and make investments. In addition, the Vail Holdings Credit Agreement includes the following restrictive financial covenants: Net Funded Debt to Adjusted EBITDA ratio and Adjusted EBITDA to interest on Funded Debt ratio. (b) Whistler Mountain Resort Limited Partnership (“Whistler LP”) and Blackcomb Skiing Enterprises Limited Partnership (“Blackcomb LP”), together “The WB Partnerships,” are party to a credit agreement, dated as of November 12, 2013 (as amended, the “Whistler Credit Agreement”), by and among Whistler LP, Blackcomb LP, certain subsidiaries of Whistler LP and Blackcomb LP party thereto as guarantors (the “Whistler Subsidiary Guarantors”), the financial institutions party thereto as lenders and The Toronto-Dominion Bank, as administrative agent. The Whistler Credit Agreement consists of a C$300.0 million revolving credit facility. During the three months ended January 31, 2019, the Company entered into an amendment of the Whistler Credit Agreement which extended the maturity date of the revolving credit facility to December 15, 2023 . No other material terms of the Whistler Credit Agreement were altered. The WB Partnerships’ obligations under the Whistler Credit Agreement are guaranteed by the Whistler Subsidiary Guarantors and are collateralized by a pledge of the capital stock of the Whistler Subsidiary Guarantors and a pledge of substantially all of the assets of Whistler LP, Blackcomb LP and the Whistler Subsidiary Guarantors. In addition, pursuant to the terms of the Whistler Credit Agreement, the WB Partnerships have the ability to increase the commitment amount by up to C$75.0 million subject to lender approval. Borrowings under the Whistler Credit Agreement are available in Canadian or U.S. dollars and bear interest annually, subject to an applicable margin based on the WB Partnerships’ Consolidated Total Leverage Ratio (as defined in the Whistler Credit Agreement), with pricing as of April 30, 2019, in the case of borrowings (i) in Canadian dollars, at the WB Partnerships’ option, either (a) at the Canadian Prime Rate plus 0.75% per annum or (b) by way of the issuance of bankers’ acceptances plus 1.75% per annum; and (ii) in U.S. dollars, at the WB Partnerships option, either at (a) the U.S. Base Rate plus 0.75% per annum or (b) Bankers Acceptance Rate plus 1.75% per annum . As of April 30, 2019 , all borrowings under the Whistler Credit Agreement were made in Canadian dollars and by way of the issuance of bankers’ acceptances plus 1.75% (approximately 3.78% ). The Whistler Credit Agreement also includes a quarterly unused commitment fee based on the Consolidated Total Leverage Ratio, which as of April 30, 2019 is equal to 0.3937% per annum. The Whistler Credit Agreement provides for affirmative and negative covenants that restrict, among other things, the WB Partnerships’ ability to incur indebtedness and liens, dispose of assets, make capital expenditures, make distributions and make investments. In addition, the Whistler Credit Agreement includes the restrictive financial covenants (leverage ratios and interest coverage ratios) customary for facilities of this type. (c) During the three and nine months ended April 30, 2019, the Company completed two real estate sales transactions that were accounted for as financing arrangements as a result of the Company’s continuing involvement with the underlying assets that were sold, including but not limited to, the obligation to repurchase finished commercial space from the development projects upon completion. The Company received approximately $11.2 million of proceeds for these sales transactions during the three months ended April 30, 2019, which are reflected within long-term debt, net. (d) Current maturities represent principal payments due in the next 12 months. |
Schedule Of Aggregate Maturities For Debt Outstanding | Aggregate maturities of debt outstanding as of April 30, 2019 reflected by fiscal year (August 1 through July 31) are as follows (in thousands): Total 2019 (May 2019 through July 2019) $ 12,046 2020 54,666 2021 48,580 2022 48,648 2023 48,719 Thereafter 1,150,752 Total debt $ 1,363,411 |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 9 Months Ended |
Apr. 30, 2019 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following presents the unaudited pro forma consolidated financial information of the Company as if the acquisitions of Falls Creek, Hotham, Stevens Pass and Triple Peaks were completed on August 1, 2017, the beginning of the fiscal year preceding the fiscal year in which the acquisitions occurred. The following unaudited pro forma financial information includes adjustments for (i) depreciation on acquired property, plant and equipment; (ii) amortization of intangible assets recorded at the date of the transactions; (iii) lease expenses incurred by the prior owners which the Company will not be subject to; (iv) transaction and business integration related costs; and (v) interest expense associated with financing the transactions. This unaudited pro forma financial information is presented for informational purposes only and does not purport to be indicative of the results of future operations or the results that would have occurred had the transaction taken place on August 1, 2017 (in thousands, except per share amounts). Three Months Ended April 30, 2019 2018 Pro forma net revenue $ 958,051 $ 901,832 Pro forma net income attributable to Vail Resorts, Inc. $ 293,002 $ 265,119 Pro forma basic net income per share attributable to Vail Resorts, Inc. $ 7.28 $ 6.56 Pro forma diluted net income per share attributable to Vail Resorts, Inc. $ 7.14 $ 6.38 Nine Months Ended April 30, 2019 2018 Pro forma net revenue $ 2,059,722 $ 1,949,438 Pro forma net income attributable to Vail Resorts, Inc. $ 395,633 $ 474,687 Pro forma basic net income per share attributable to Vail Resorts, Inc. $ 9.80 $ 11.76 Pro forma diluted net income per share attributable to Vail Resorts, Inc. $ 9.60 $ 11.40 |
Falls Creek and Hotham [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Falls Creek and Hotham Resorts On April 4, 2019, the Company, through a wholly-owned subsidiary, acquired ski field leases and related infrastructure used to operate two resorts in Victoria, Australia. The Company acquired Australian Alpine Enterprises Holdings Pty. Ltd and all related corporate entities that operate the Falls Creek and Hotham resorts from Living and Leisure Australia Group, a subsidiary of Merlin Entertainments, for a cash purchase price of approximately AU $178.9 million ( $127.4 million ), after adjustments for certain agreed-upon terms, including an increase in the purchase price for operating losses incurred for the period from December 29, 2018 through closing. The acquisition included the mountain operations of both resorts, including base area skier services (ski and snowboard school facilities, retail and rental, reservation and property management operations). The following summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed at the date the transaction was effective (in thousands): Acquisition Date Estimated Fair Value Current assets $ 6,979 Property, plant and equipment 56,264 Goodwill 71,111 Identifiable intangible assets and other assets 5,451 Liabilities (12,453 ) Net assets acquired $ 127,352 Identifiable intangible assets acquired in the transaction were primarily related to trade names. The excess of the purchase price over the aggregate estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies, the assembled workforce of Falls Creek and Hotham and other factors. None of the goodwill is expected to be deductible for income tax purposes under Australian tax law. The Company recognized $4.7 million of acquisition related expenses associated with the transaction, including stamp duty expense of $2.9 million , within Mountain and Lodging operating expense in its Consolidated Condensed Statement of Operations for the nine months ended April 30, 2019. The operating results of Falls Creek and Hotham are reported within the Mountain segment prospectively from the date of acquisition. |
Stevens Pass [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Stevens Pass Resort On August 15, 2018, the Company, through a wholly-owned subsidiary, acquired Stevens Pass Resort in the State of Washington from Ski Resort Holdings, LLC, an affiliate of Oz Real Estate (“Ski Resort Holdings”), for total cash consideration of $64.0 million , after adjustments for certain agreed-upon terms. The Company borrowed $70.0 million on August 15, 2018 under its Vail Holdings Credit Agreement term loan (see Note 5, Long-Term Debt) to fund the transaction and associated acquisition related expenses. The acquisition included the mountain operations of the resort, including base area skier services (food and beverage, retail and rental, lift ticket offices and ski and snowboard school facilities). The following summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed at the date the transaction was effective (in thousands): Acquisition Date Estimated Fair Value Current assets $ 752 Property, plant and equipment 34,865 Goodwill 28,878 Identifiable intangible assets 2,680 Deferred income taxes, net 886 Liabilities (4,029 ) Net assets acquired $ 64,032 The excess of the purchase price over the aggregate estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies, the assembled workforce of Stevens Pass and other factors, and is expected to be deductible for income tax purposes. The Company recognized $1.2 million of acquisition related expenses associated with the transaction within Mountain and Lodging operating expense in its Consolidated Condensed Statement of Operations for the nine months ended April 30, 2019. The operating results of Stevens Pass are reported within the Mountain segment prospectively from the date of acquisition. |
Triple Peaks, LLC [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Okemo Mountain Resort, Crested Butte Resort and Mount Sunapee Resort On September 27, 2018, the Company, through a wholly-owned subsidiary, acquired Triple Peaks, LLC (“Triple Peaks”), the parent company of Okemo Mountain Resort in Vermont, Crested Butte Mountain Resort in Colorado, and Mount Sunapee Resort in New Hampshire, for a cash purchase price of approximately $74.1 million , after adjustments for certain agreed-upon terms. In addition, contemporaneous with the closing of the transaction, Triple Peaks paid $155.0 million to pay the remaining obligations of the leases that all three resorts had with Ski Resort Holdings, with funds provided by the Company. Accordingly, the total purchase price, including the repayment of lease obligations, was $229.1 million , for which the Company utilized cash on hand and borrowed $195.6 million under the Vail Holdings Credit Agreement term loan (see Note 5, Long-Term Debt) to fund the transaction and associated acquisition related expenses. The Company obtained a new Special Use Permit from the U.S. Forest Service for Crested Butte, and assumed the state land leases for Okemo and Mount Sunapee. The acquisition included the mountain operations of the resorts, including base area skier services (food and beverage, retail and rental, lift ticket offices and ski and snowboard school facilities). The following summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed at the date the transaction was effective (in thousands): Acquisition Date Estimated Fair Value Current assets $ 5,197 Property, plant and equipment 159,799 Goodwill 51,633 Identifiable intangible assets 27,360 Deferred income taxes, net 3,093 Liabilities (17,989 ) Net assets acquired $ 229,093 Identifiable intangible assets acquired in the transaction were primarily related to property management contracts and trade names. The excess of the purchase price over the aggregate estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies, the assembled workforce of the resorts and other factors, and is expected to be deductible for income tax purposes. The Company recognized $2.8 million of acquisition related expenses associated with the transaction within Mountain and Lodging operating expense in its Consolidated Condensed Statement of Operations for the nine months ended April 30, 2019. The operating results of Triple Peaks are reported within the Mountain and Lodging segments prospectively from the date of acquisition. The estimated fair values of assets acquired and liabilities assumed in the acquisitions of Falls Creek, Hotham, Stevens Pass and Triple Peaks are preliminary and are based on the information that was available as of the respective acquisition dates. The Company believes that this information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed; however, the Company is obtaining additional information necessary to finalize those estimated fair values. Therefore, the preliminary measurements of estimated fair values reflected are subject to change. The Company expects to finalize the valuation and complete the purchase consideration allocation no later than one year from the respective acquisition dates. |
Supplementary Balance Sheet I_2
Supplementary Balance Sheet Information (Tables) | 9 Months Ended |
Apr. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Composition Of Property, Plant And Equipment | The composition of property, plant and equipment follows (in thousands): April 30, 2019 July 31, 2018 April 30, 2018 Land and land improvements $ 618,545 $ 552,271 $ 553,366 Buildings and building improvements 1,279,117 1,193,528 1,194,877 Machinery and equipment 1,157,424 1,007,250 1,024,483 Furniture and fixtures 304,345 283,694 275,959 Software 118,678 113,699 110,789 Vehicles 63,443 60,697 60,266 Construction in progress 48,728 59,579 35,895 Gross property, plant and equipment 3,590,280 3,270,718 3,255,635 Accumulated depreciation (1,742,846 ) (1,643,499 ) (1,614,908 ) Property, plant and equipment, net $ 1,847,434 $ 1,627,219 $ 1,640,727 |
Components Of Accounts Payable And Accrued Liabilities | The composition of accounts payable and accrued liabilities follows (in thousands): April 30, 2019 July 31, 2018 April 30, 2018 Trade payables $ 80,218 $ 80,793 $ 58,228 Deferred revenue 297,874 282,103 251,110 Accrued salaries, wages and deferred compensation 37,817 40,034 24,645 Accrued benefits 42,732 33,963 37,776 Deposits 32,090 26,646 24,326 Other liabilities 52,329 40,994 33,773 Total accounts payable and accrued liabilities $ 543,060 $ 504,533 $ 429,858 |
Components Of Other Long-Term Liabilities | The composition of other long-term liabilities follows (in thousands): April 30, 2019 July 31, 2018 April 30, 2018 Private club deferred initiation fee revenue $ 111,294 $ 114,319 $ 116,375 Unfavorable lease obligation, net 19,733 21,839 22,537 Other long-term liabilities 137,323 155,348 140,885 Total other long-term liabilities $ 268,350 $ 291,506 $ 279,797 |
Schedule of Goodwill [Table Text Block] | The changes in the net carrying amount of goodwill allocated between the Company’s segments for the nine months ended April 30, 2019 are as follows (in thousands): Mountain Lodging Goodwill, net Balance at July 31, 2018 $ 1,407,787 $ 67,899 $ 1,475,686 Acquisitions 151,622 — 151,622 Effects of changes in foreign currency exchange rates (30,441 ) — (30,441 ) Balance at April 30, 2019 $ 1,528,968 $ 67,899 $ 1,596,867 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Apr. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary Of Cash Equivalents Measured At Fair Value | The table below summarizes the Company’s cash equivalents, other current assets and Contingent Consideration measured at estimated fair value (all other assets and liabilities measured at fair value are immaterial) (in thousands). Estimated Fair Value Measurement as of April 30, 2019 Description Total Level 1 Level 2 Level 3 Assets: Money Market $ 3,037 $ 3,037 $ — $ — Commercial Paper $ 2,401 $ — $ 2,401 $ — Certificates of Deposit $ 10,092 $ — $ 10,092 $ — Liabilities: Contingent Consideration $ 25,300 $ — $ — $ 25,300 Estimated Fair Value Measurement as of July 31, 2018 Description Total Level 1 Level 2 Level 3 Assets: Money Market $ 3,021 $ 3,021 $ — $ — Commercial Paper $ 2,401 $ — $ 2,401 $ — Certificates of Deposit $ 11,249 $ — $ 11,249 $ — Liabilities: Contingent Consideration $ 21,900 $ — $ — $ 21,900 Estimated Fair Value Measurement as of April 30, 2018 Description Total Level 1 Level 2 Level 3 Assets: Money Market $ 3,017 $ 3,017 $ — $ — Commercial Paper $ 2,401 $ — $ 2,401 $ — Certificates of Deposit $ 6,849 $ — $ 6,849 $ — Liabilities: Contingent Consideration $ 21,300 $ — $ — $ 21,300 The Company’s cash equivalents and other current assets are measured utilizing quoted market prices or pricing models whereby all significant inputs are either observable or corroborated by observable market data. The changes in Contingent Consideration during the nine months ended April 30, 2019 and 2018 were as follows (in thousands): Balance as of July 31, 2018 and 2017, respectively $ 21,900 $ 27,400 Payments (67 ) (3,646 ) Change in estimated fair value 3,467 (2,454 ) Balance as of April 30, 2019 and 2018, respectively $ 25,300 $ 21,300 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary Of Financial Information By Reportable Segment | The following table presents financial information by reportable segment, which is used by management in evaluating performance and allocating resources (in thousands): Three Months Ended April 30, Nine Months Ended April 30, 2019 2018 2019 2018 Net revenue: Lift $ 526,881 $ 452,723 $ 999,124 $ 860,103 Ski school 110,755 101,213 207,271 185,767 Dining 78,928 70,678 162,629 142,890 Retail/rental 114,082 104,162 285,860 265,015 Other 47,252 43,748 144,093 137,776 Total Mountain net revenue 877,898 772,524 1,798,977 1,591,551 Lodging 79,848 68,827 227,997 204,455 Total Resort net revenue 957,746 841,351 2,026,974 1,796,006 Real Estate 241 3,140 595 3,910 Total net revenue $ 957,987 $ 844,491 $ 2,027,569 $ 1,799,916 Segment operating expense: Mountain $ 410,254 $ 363,878 $ 1,056,625 $ 936,567 Lodging 67,221 58,352 205,717 185,957 Resort 477,475 422,230 1,262,342 1,122,524 Real Estate, net 1,382 (597 ) 4,141 2,301 Total segment operating expense $ 478,857 $ 421,633 $ 1,266,483 $ 1,124,825 Gain on sale of real property $ 268 $ — $ 268 $ 515 Mountain equity investment income, net $ 445 $ 607 $ 1,555 $ 1,094 Reported EBITDA: Mountain $ 468,089 $ 409,253 $ 743,907 $ 656,078 Lodging 12,627 10,475 22,280 18,498 Resort 480,716 419,728 766,187 674,576 Real Estate (873 ) 3,737 (3,278 ) 2,124 Total Reported EBITDA $ 479,843 $ 423,465 $ 762,909 $ 676,700 Real estate held for sale and investment $ 101,251 $ 99,623 $ 101,251 $ 99,623 Reconciliation to net income attributable to Vail Resorts, Inc.: Total Reported EBITDA $ 479,843 $ 423,465 $ 762,909 $ 676,700 Depreciation and amortization (55,260 ) (54,104 ) (161,541 ) (154,132 ) Change in estimated fair value of contingent consideration (1,567 ) 2,454 (3,467 ) 2,454 Gain (loss) on disposal of fixed assets and other, net 27 (3,230 ) 505 (2,125 ) Investment income and other, net 1,727 736 2,697 1,516 Foreign currency loss on intercompany loans (3,319 ) (9,502 ) (5,180 ) (6,511 ) Interest expense, net (19,575 ) (15,648 ) (59,215 ) (46,795 ) Income before (provision) benefit from income taxes 401,876 344,171 536,708 471,107 (Provision) benefit from income taxes (93,346 ) (71,896 ) (120,914 ) 17,914 Net income 308,530 272,275 415,794 489,021 Net income attributable to noncontrolling interests (16,396 ) (16,023 ) (25,106 ) (25,463 ) Net income attributable to Vail Resorts, Inc. $ 292,134 $ 256,252 $ 390,688 $ 463,558 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Jul. 31, 2018 | Jul. 31, 2017 | |
Cumulative effect for adoption of revenue standard (Notes 2 & 3) | $ (7,517) | |||
Increase (Decrease) in Restricted Cash for Operating Activities | $ 2,600 | |||
Restricted cash | 8,876 | $ 7,427 | $ 6,895 | $ 10,300 |
Retained Earnings [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | (6,930) | |||
Cumulative effect for adoption of revenue standard (Notes 2 & 3) | (7,517) | |||
Accounts Payable and Accrued Liabilities [Member] | ||||
Cumulative effect for adoption of revenue standard (Notes 2 & 3) | $ 6,930 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Jul. 31, 2018 | |
Capitalized Contract Cost, Amortization | $ 5,200 | $ 10,600 | |||
Deferred revenue | 297,874 | $ 251,110 | 297,874 | $ 251,110 | $ 282,103 |
Deferred Revenue and Credits, Noncurrent | 124,900 | 124,900 | $ 126,500 | ||
Mountain Revenue Net | 877,898 | 772,524 | 1,798,977 | 1,591,551 | |
Lodging Revenue Net | 79,848 | 68,827 | 227,997 | 204,455 | |
Resort net revenue | 957,746 | 841,351 | 2,026,974 | 1,796,006 | |
Real Estate Revenue | 241 | 3,140 | 595 | 3,910 | |
Revenues | 957,987 | 844,491 | 2,027,569 | 1,799,916 | |
Recognition of Deferred Revenue Outstanding as of July 31, 2018 | 116,900 | 272,200 | |||
Lift | |||||
Mountain Revenue Net | 526,881 | 452,723 | 999,124 | 860,103 | |
Ski School | |||||
Mountain Revenue Net | 110,755 | 101,213 | 207,271 | 185,767 | |
Dining | |||||
Mountain Revenue Net | 78,928 | 70,678 | 162,629 | 142,890 | |
Lodging Revenue Net | 11,067 | 8,660 | 37,385 | 32,409 | |
Retail/Rental | |||||
Mountain Revenue Net | 114,082 | 104,162 | 285,860 | 265,015 | |
Other | |||||
Mountain Revenue Net | 47,252 | 43,748 | 144,093 | 137,776 | |
Owned hotel rooms | |||||
Lodging Revenue Net | 12,352 | 12,518 | 43,499 | 43,506 | |
Managed condominium rooms | |||||
Lodging Revenue Net | 30,671 | 24,604 | 69,835 | 58,133 | |
Transportation | |||||
Lodging Revenue Net | 8,578 | 8,164 | 18,774 | 18,177 | |
Golf | |||||
Lodging Revenue Net | 0 | 0 | 9,628 | 8,903 | |
Other | |||||
Lodging Revenue Net | 13,278 | 11,074 | 37,697 | 32,626 | |
Lodging revenue (excluding payroll cost reimbursements) [Member] | |||||
Lodging Revenue Net | 75,946 | 65,020 | 216,818 | 193,754 | |
Payroll cost reimbursements | |||||
Lodging Revenue Net | $ 3,902 | $ 3,807 | $ 11,179 | $ 10,701 |
Revenue Contract Balances (Deta
Revenue Contract Balances (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | |
Schedule of Goodwill [Abstract] | ||||
Deferred revenue | $ 297,874 | $ 297,874 | $ 282,103 | $ 251,110 |
Deferred Revenue and Credits, Noncurrent | 124,900 | 124,900 | 126,500 | |
Recognition of Deferred Revenue Outstanding as of July 31, 2018 | 116,900 | $ 272,200 | ||
Private Club Recognized Initiation Fees Average Remaining Period | 17 | |||
Trade receivables, net | $ 273,108 | $ 273,108 | $ 230,829 | $ 220,248 |
Revenue Costs to Obtain Contrac
Revenue Costs to Obtain Contracts with Customers (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Apr. 30, 2019USD ($) | Apr. 30, 2019USD ($) | |
Schedule of Goodwill [Abstract] | ||
Capitalized Contract Cost, Net | $ 1.3 | $ 1.3 |
Capitalized Contract Cost, Amortization | $ 5.2 | $ 10.6 |
Net Income Per Common Share Net
Net Income Per Common Share Net Income per Common Share (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 11, 2019 | Jun. 26, 2019 | Jun. 05, 2019 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Jul. 31, 2018 |
Anti-dilutive securities (in shares) | 54,000 | 5,000 | 48,000 | 5,000 | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.76 | $ 1.47 | $ 4.70 | $ 3.576 | ||||
Cash dividends declared per share | $ 1.76 | $ 1.47 | $ 4.70 | $ 3.576 | ||||
Payments of Dividends | $ 70,900 | $ 59,500 | $ 189,566 | $ 144,681 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||
Scenario, Forecast [Member] | ||||||||
Cash dividends declared per share | $ 1.76 | |||||||
Dividends Payable, Date to be Paid | Jul. 11, 2019 | |||||||
Dividends Payable, Date of Record | Jun. 26, 2019 | |||||||
Common Stock [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 3,327,719 | |||||||
Exchangeable Shares [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 418,095 |
Net Income Per Common Share (Su
Net Income Per Common Share (Summary of Calculation of Basic and Diluted EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 54,000 | 5,000 | 48,000 | 5,000 |
Net income attributable to Vail Resorts, Inc. | $ 292,134 | $ 256,252 | $ 390,688 | $ 463,558 |
Weighted-average Vail Shares outstanding | 40,198,000 | 40,379,000 | 40,307,000 | 40,313,000 |
Weighted-average Exchangeco Shares outstanding | 57,000 | 59,000 | 57,000 | 61,000 |
Total Weighted-average shares outstanding | 40,255,000 | 40,438,000 | 40,364,000 | 40,374,000 |
Effect of dilutive securities | 765,000 | 1,107,000 | 837,000 | 1,267,000 |
Total shares | 41,020,000 | 41,545,000 | 41,201,000 | 41,641,000 |
Basic net income per share attributable to Vail Resorts, Inc. | $ 7.26 | $ 6.34 | $ 9.68 | $ 11.48 |
Diluted net income per share attributable to Vail Resorts, Inc. | $ 7.12 | $ 6.17 | $ 9.48 | $ 11.13 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Narrative) (Details) - USD ($) | Aug. 15, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Jul. 31, 2018 |
Line of Credit Facility, Increase (Decrease), Net | $ 100,000,000 | |||||
Gross interest expense | $ 19,600,000 | $ 15,600,000 | 59,200,000 | $ 46,800,000 | ||
Long-term Debt | 1,363,411,000 | 1,119,986,000 | 1,363,411,000 | 1,119,986,000 | $ 1,276,082,000 | |
Amortization of deferred financing costs | 300,000 | 300,000 | 1,000,000 | 1,000,000 | ||
Intercompany Foreign Currency Balance, Amount | 210,000,000 | 210,000,000 | ||||
Debt Instrument, Unused Borrowing Capacity, Fee | 0.0025 | |||||
Unamortized Debt Issuance Expense | 4,037,000 | 3,537,000 | 4,037,000 | 3,537,000 | 3,350,000 | |
Foreign currency gain (loss) on intercompany loans (Note 5) | 3,319,000 | 9,502,000 | 5,180,000 | 6,511,000 | ||
Proceeds from Sale of Real Estate | 11,200,000 | |||||
Term Loan [Member] | ||||||
Line of Credit Facility, Initiation Date | Aug. 15, 2018 | |||||
Line of Credit Facility, Increase (Decrease), Net | $ 265,600,000 | |||||
Debt Instrument, Maturity Date | Aug. 15, 2023 | |||||
Long-term Line of Credit | 950,000,000 | $ 950,000,000 | ||||
Long-term Debt | $ 926,250,000 | 693,750,000 | $ 926,250,000 | 693,750,000 | 684,375,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.73% | 3.73% | ||||
Long-term Debt, Description | In addition, pursuant to the terms of the Vail Holdings Credit Agreement, VHI has the ability to increase availability (under the revolver or in the form of term loans) to an aggregate principal amount not to exceed the greater of (i) $1.2 billion and (ii) the product of 2.75 and the trailing twelve-month Adjusted EBITDA, as defined in the Vail Holdings Credit Agreement. The term loan facility is subject to quarterly amortization of principal of approximately $11.9 million, which began on January 31, 2019, in equal installments, for a total of five percent of principal payable in each year and the final payment of all amounts outstanding, plus accrued and unpaid interest due in April 2024. | |||||
Credit Facility Revolver [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | $ 500,000,000 | ||||
Long-term Debt | 0 | 0 | $ 0 | 0 | 130,000,000 | |
Whistler Credit Agreement revolver [Member] | ||||||
Line of Credit Facility, Initiation Date | Nov. 12, 2013 | |||||
Debt Instrument, Maturity Date | Dec. 15, 2023 | |||||
Long-term Debt | $ 26,127,000 | $ 31,153,000 | $ 26,127,000 | $ 31,153,000 | $ 65,353,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.78% | 3.78% | ||||
Long-term Debt, Description | Borrowings under the Whistler Credit Agreement are available in Canadian or U.S. dollars and bear interest annually, subject to an applicable margin based on the WB Partnerships’ Consolidated Total Leverage Ratio (as defined in the Whistler Credit Agreement), with pricing as of April 30, 2019, in the case of borrowings (i) in Canadian dollars, at the WB Partnerships’ option, either (a) at the Canadian Prime Rate plus 0.75% per annum or (b) by way of the issuance of bankers’ acceptances plus 1.75% per annum; and (ii) in U.S. dollars, at the WB Partnerships option, either at (a) the U.S. Base Rate plus 0.75% per annum or (b) Bankers Acceptance Rate plus 1.75% per annum | |||||
Debt Instrument, Unused Borrowing Capacity, Fee | 0.3937% | |||||
Canada, Dollars | Whistler Credit Agreement revolver [Member] | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 75,000,000 | $ 75,000,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 | $ 300,000,000 |
Long-Term Debt (Schedule Of Deb
Long-Term Debt (Schedule Of Debt Instruments) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | |
Total debt | $ 1,363,411 | $ 1,276,082 | $ 1,119,986 |
Unamortized Debt Issuance Expense | 4,037 | 3,350 | 3,537 |
Long-term debt due within one year (Note 5) | 48,504 | 38,455 | 38,444 |
Long-term debt, net (Note 5) | 1,310,870 | 1,234,277 | 1,078,005 |
Credit Facility Revolver [Member] | |||
Total debt | $ 0 | 130,000 | 0 |
Fiscal year maturity | 2024 | ||
Whistler Credit Agreement revolver [Member] | |||
Total debt | $ 26,127 | 65,353 | 31,153 |
Fiscal year maturity | 2023 | ||
Term Loan [Member] | |||
Total debt | $ 926,250 | 684,375 | 693,750 |
Fiscal year maturity | 2024 | ||
Employee Housing Bonds [Member] | |||
Total debt | $ 52,575 | 52,575 | 52,575 |
Canyons Obligation [Member] | |||
Total debt | $ 338,823 | 334,509 | 333,078 |
Fiscal year maturity | 2063 | ||
Other [Member] | |||
Total debt | $ 19,636 | $ 9,270 | $ 9,430 |
Maximum [Member] | Employee Housing Bonds [Member] | |||
Fiscal year maturity, end | Dec. 31, 2039 | ||
Maximum [Member] | Other [Member] | |||
Fiscal year maturity, end | Dec. 31, 2032 | ||
Minimum [Member] | Employee Housing Bonds [Member] | |||
Fiscal year maturity, start | Dec. 31, 2027 | ||
Minimum [Member] | Other [Member] | |||
Fiscal year maturity, start | Dec. 31, 2020 |
Long-Term Debt (Schedule Of Agg
Long-Term Debt (Schedule Of Aggregate Maturities For Debt Outstanding) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 |
Debt Instrument [Line Items] | |||
2019 (May 2019 through July 2019) | $ 12,046 | ||
2020 | 54,666 | ||
2021 | 48,580 | ||
2022 | 48,648 | ||
2023 | 48,719 | ||
Thereafter | 1,150,752 | ||
Total debt | $ 1,363,411 | $ 1,276,082 | $ 1,119,986 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - 9 months ended Apr. 30, 2019 $ in Thousands, $ in Millions | USD ($) | AUD ($) |
Goodwill, Acquired During Period | $ 151,622 | |
Falls Creek and Hotham [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 6,979 | |
Business Combination, Consideration Transferred | $ 178.9 | |
Business Combination, Cash Consideration Transferred | 127,400 | |
Business Acquisition, Transaction Costs | 4,700 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 56,264 | |
Goodwill, Acquired During Period | 71,111 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 5,451 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 12,453 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 127,352 | |
Stamp Duty Expense | 2,900 | |
Stevens Pass [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 752 | |
Business Combination, Cash Consideration Transferred | 64,000 | |
Proceeds from (Repayments of) Debt | 70,000 | |
Business Acquisition, Transaction Costs | 1,200 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 34,865 | |
Goodwill, Acquired During Period | 28,878 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,680 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 4,029 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 64,032 | |
Triple Peaks, LLC [Member] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 5,197 | |
Business Combination, Consideration Transferred | 229,100 | |
Business Combination, Cash Consideration Transferred | 74,100 | |
Proceeds from (Repayments of) Debt | 195,600 | |
Business Combination, Consideration Transferred, Other | 155,000 | |
Business Acquisition, Transaction Costs | 2,800 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 159,799 | |
Goodwill, Acquired During Period | 51,633 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 27,360 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 17,989 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 229,093 |
Acquisitions (Summary Of Estima
Acquisitions (Summary Of Estimate Of Fair Value Of Identifiable Assets Acquired And Liabilities Assumed) (Details) - 9 months ended Apr. 30, 2019 $ in Thousands, $ in Millions | USD ($) | AUD ($) |
Business Acquisition [Line Items] | ||
Goodwill Acquired During Period | $ 151,622 | |
Falls Creek and Hotham [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 6,979 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 56,264 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 5,451 | |
Goodwill Acquired During Period | 71,111 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (12,453) | |
Business Combination, Consideration Transferred | $ 178.9 | |
Business Combination, Cash Consideration Transferred | 127,400 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 127,352 | |
Triple Peaks, LLC [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 5,197 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 159,799 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 27,360 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 3,093 | |
Goodwill Acquired During Period | 51,633 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (17,989) | |
Business Combination, Consideration Transferred | 229,100 | |
Business Combination, Cash Consideration Transferred | 74,100 | |
Business Combination, Consideration Transferred, Other | 155,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 229,093 | |
Stevens Pass [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 752 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 34,865 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 2,680 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 886 | |
Goodwill Acquired During Period | 28,878 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (4,029) | |
Business Combination, Cash Consideration Transferred | 64,000 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 64,032 |
Acquisitions (Summary Pro Forma
Acquisitions (Summary Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Pro Forma Financial Information [Line Items] | ||||
Pro forma net revenue | $ 958,051 | $ 901,832 | $ 2,059,722 | $ 1,949,438 |
Pro forma net income attributable to Vail Resorts, Inc. | $ 293,002 | $ 265,119 | $ 395,633 | $ 474,687 |
Pro forma basic net income per share attributable to Vail Resorts, Inc. | $ 7.28 | $ 6.56 | $ 9.80 | $ 11.76 |
Pro forma diluted net income per share attributable to Vail Resorts, Inc. | $ 7.14 | $ 6.38 | $ 9.60 | $ 11.40 |
Supplementary Balance Sheet I_3
Supplementary Balance Sheet Information (Composition Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 |
Property, Plant and Equipment [Line Items] | |||
Land and land improvements | $ 618,545 | $ 552,271 | $ 553,366 |
Buildings and building improvements | 1,279,117 | 1,193,528 | 1,194,877 |
Machinery and equipment | 1,157,424 | 1,007,250 | 1,024,483 |
Furniture and fixtures | 304,345 | 283,694 | 275,959 |
Software | 118,678 | 113,699 | 110,789 |
Vehicles | 63,443 | 60,697 | 60,266 |
Construction in progress | 48,728 | 59,579 | 35,895 |
Gross property, plant and equipment | 3,590,280 | 3,270,718 | 3,255,635 |
Accumulated depreciation | (1,742,846) | (1,643,499) | (1,614,908) |
Property, plant and equipment, net | $ 1,847,434 | $ 1,627,219 | $ 1,640,727 |
Supplementary Balance Sheet I_4
Supplementary Balance Sheet Information (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | |||
Trade payables | $ 80,218 | $ 80,793 | $ 58,228 |
Deferred revenue | 297,874 | 282,103 | 251,110 |
Accrued salaries, wages and deferred compensation | 37,817 | 40,034 | 24,645 |
Accrued benefits | 42,732 | 33,963 | 37,776 |
Deposits | 32,090 | 26,646 | 24,326 |
Other liabilities | 52,329 | 40,994 | 33,773 |
Total accounts payable and accrued liabilities | $ 543,060 | $ 504,533 | $ 429,858 |
Supplementary Balance Sheet I_5
Supplementary Balance Sheet Information (Components Of Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 |
Balance Sheet Related Disclosures [Abstract] | |||
Private club deferred initiation fee revenue | $ 111,294 | $ 114,319 | $ 116,375 |
Unfavorable lease obligation, net | 19,733 | 21,839 | 22,537 |
Other long-term liabilities | 137,323 | 155,348 | 140,885 |
Total other long-term liabilities | $ 268,350 | $ 291,506 | $ 279,797 |
Supplementary Balance Sheet I_6
Supplementary Balance Sheet Information Schedule of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Apr. 30, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | |
Goodwill [Line Items] | |||
Goodwill | $ 1,596,867 | $ 1,475,686 | $ 1,488,663 |
Goodwill, Acquired During Period | 151,622 | ||
Effects of changes in foreign currency exchange rates | (30,441) | ||
Mountain [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 1,528,968 | 1,407,787 | |
Goodwill, Acquired During Period | 151,622 | ||
Effects of changes in foreign currency exchange rates | (30,441) | ||
Lodging [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 67,899 | $ 67,899 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Jul. 31, 2018 | Jul. 31, 2017 | |
Contingent Consideration | $ 25,300 | $ 21,300 | $ 21,900 | $ 27,400 |
Payments for Rent | (67) | (3,646) | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 3,467 | (2,454) | ||
Business Combination, Contingent Consideration Arrangements, Description | 42% of the amount by which EBITDA for the Park City resort operations, as calculated under the lease, exceeds approximately $35 million, as established at the transaction date, with such threshold amount subsequently increased annually by an inflation linked index and a 10% adjustment for any capital improvements or investments made under the lease by the Company. | |||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Adverse Change in Other Assumption, Description | The Company prepared a sensitivity analysis to evaluate the effect that changes on certain key assumptions would have on the estimated fair value of the Contingent Consideration. A change in the discount rate of 100 basis points or a 5% change in estimated subsequent year performance would result in a change in the estimated fair value within the range of approximately $3.8 million to $5.3 million | |||
Contingent Consideration, Key Assumptions for Valuation | The estimated fair value of Contingent Consideration includes the future period resort operations of Park City in the calculation of EBITDA on which participating contingent payments are made, which is determined on the basis of estimated subsequent year performance, escalated by an assumed growth factor. The Company estimated the fair value of the Contingent Consideration payments using an option pricing valuation model. Key assumptions included a discount rate of 11.15%, volatility of 17.0% and future period Park City EBITDA and capital expenditures, which are unobservable inputs and thus are considered Level 3 inputs. | |||
Money Market | $ 3,037 | 3,017 | 3,021 | |
Level 1 [Member] | ||||
Money Market | 3,037 | 3,017 | 3,021 | |
Fair Value, Inputs, Level 3 [Member] | ||||
Contingent Consideration | 25,300 | 21,300 | 21,900 | |
Commercial Paper [Member] | ||||
Commercial Paper | 2,401 | 2,401 | 2,401 | |
Commercial Paper [Member] | Level 2 [Member] | ||||
Commercial Paper | 2,401 | 2,401 | 2,401 | |
Certificates of Deposit [Member] | ||||
Commercial Paper | 10,092 | 6,849 | 11,249 | |
Certificates of Deposit [Member] | Level 2 [Member] | ||||
Commercial Paper | $ 10,092 | $ 6,849 | $ 11,249 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Amount outstanding in letters of credit | $ 71,900 | |
Surety Bonds Outstanding | 10,400 | |
Holland Creek Metropolitan District [Member] | ||
Credit-enhanced bonds issued amount | 6,300 | |
Amount outstanding in letters of credit | 6,400 | |
Red Sky Ranch Metropolitan District [Member] | ||
Other long-term liabilities | $ 2,000 | $ 2,000 |
Estimated cessation date of capital improvement fee payment obligation | Jul. 31, 2031 | |
Employee Housing Bonds [Member] | ||
Amount outstanding in letters of credit | $ 53,400 | |
Workers' Compensation and General Liability Related to Construction and Development Activities [Member] | ||
Amount outstanding in letters of credit | $ 18,500 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | Jul. 31, 2018 | |
Total Mountain net revenue | $ 877,898 | $ 772,524 | $ 1,798,977 | $ 1,591,551 | |
Lodging Revenue Net | 79,848 | 68,827 | 227,997 | 204,455 | |
Total Resort net revenue | 957,746 | 841,351 | 2,026,974 | 1,796,006 | |
Revenues | 957,987 | 844,491 | 2,027,569 | 1,799,916 | |
Real Estate Revenue | 241 | 3,140 | 595 | 3,910 | |
Mountain | 410,254 | 363,878 | 1,056,625 | 936,567 | |
Lodging | 67,221 | 58,352 | 205,717 | 185,957 | |
Resort | 477,475 | 422,230 | 1,262,342 | 1,122,524 | |
Real Estate, net | 1,382 | (597) | 4,141 | 2,301 | |
Total segment operating expense | 478,857 | 421,633 | 1,266,483 | 1,124,825 | |
Gain on sale of real property | 268 | 0 | 268 | 515 | |
Mountain equity investment income, net | 445 | 607 | 1,555 | 1,094 | |
Total Reported EBITDA | 479,843 | 423,465 | 762,909 | 676,700 | |
Real estate held for sale and investment | 101,251 | 99,623 | 101,251 | 99,623 | $ 99,385 |
Depreciation and amortization | (55,260) | (54,104) | (161,541) | (154,132) | |
Change in estimated fair value of contingent consideration (Note 8) | (1,567) | 2,454 | (3,467) | 2,454 | |
Gain (loss) on disposal of fixed assets and other, net | 27 | (3,230) | 505 | (2,125) | |
Investment income and other, net | 1,727 | 736 | 2,697 | 1,516 | |
Foreign currency loss on intercompany loans | (3,319) | (9,502) | (5,180) | (6,511) | |
Interest expense, net | (19,575) | (15,648) | (59,215) | (46,795) | |
Income before (provision) benefit from income taxes | 401,876 | 344,171 | 536,708 | 471,107 | |
(Provision) benefit from income taxes | (93,346) | (71,896) | (120,914) | 17,914 | |
Net income | 308,530 | 272,275 | 415,794 | 489,021 | |
Net income attributable to noncontrolling interests | (16,396) | (16,023) | (25,106) | (25,463) | |
Net income attributable to Vail Resorts, Inc. | 292,134 | 256,252 | 390,688 | 463,558 | |
Lift Tickets [Member] | |||||
Total Mountain net revenue | 526,881 | 452,723 | 999,124 | 860,103 | |
Ski School [Member] | |||||
Total Mountain net revenue | 110,755 | 101,213 | 207,271 | 185,767 | |
Dining [Member] | |||||
Total Mountain net revenue | 78,928 | 70,678 | 162,629 | 142,890 | |
Retail/Rental [Member] | |||||
Total Mountain net revenue | 114,082 | 104,162 | 285,860 | 265,015 | |
Other Mountain Revenue [Member] | |||||
Total Mountain net revenue | 47,252 | 43,748 | 144,093 | 137,776 | |
Resort [Member] | |||||
Total Reported EBITDA | 480,716 | 419,728 | 766,187 | 674,576 | |
Mountain [Member] | |||||
Total Reported EBITDA | 468,089 | 409,253 | 743,907 | 656,078 | |
Lodging [Member] | |||||
Total Reported EBITDA | 12,627 | 10,475 | 22,280 | 18,498 | |
Real Estate [Member] | |||||
Total Reported EBITDA | $ (873) | $ 3,737 | $ (3,278) | $ 2,124 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Apr. 30, 2019 | Apr. 30, 2019 | Apr. 30, 2018 | Jul. 31, 2018 | Dec. 04, 2015 | Jul. 16, 2008 | Mar. 09, 2006 | |
Accelerated Share Repurchases [Line Items] | |||||||
Number of shares authorized to repurchase | 7,500,000 | 7,500,000 | 3,000,000 | ||||
Treasury Stock, Shares, Acquired | 0 | 353,007 | 115,422 | ||||
Additional number of shares authorized to repurchase | 1,500,000 | 3,000,000 | |||||
Number of shares repurchased since inception | 5,905,000 | 5,905,000 | 5,552,000 | 5,552,000 | |||
Payments for Repurchase of Common Stock | $ 85,000 | $ 25,800 | |||||
Value of stock repurchased since inception | $ 357,989 | $ 357,989 | $ 272,989 | $ 272,989 | |||
Remaining shares available for repurchase under existing program | 1,595,277 | 1,595,277 |