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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2022
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number: 001-09614
mtn-20220430_g1.jpg
Vail Resorts, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware51-0291762
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
390 Interlocken Crescent
Broomfield,Colorado80021
(Address of Principal Executive Offices)(Zip Code)
(303) 404-1800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par valueMTNNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes     No
As of June 6, 2022, 40,250,896 shares of the registrant’s common stock were outstanding.



Table of Contents
 
PART IFINANCIAL INFORMATIONPage
Item 1.Financial Statements (unaudited).
Item 2.
Item 3.
Item 4.
PART IIOTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

1


Vail Resorts, Inc.
Consolidated Condensed Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
April 30, 2022July 31, 2021April 30, 2021
Assets
Current assets:
Cash and cash equivalents$1,401,168 $1,243,962 $1,344,702 
Restricted cash20,795 14,612 11,684 
Trade receivables, net267,111 345,408 208,132 
Inventories, net92,608 80,316 73,044 
Other current assets63,719 61,288 47,253 
Total current assets1,845,401 1,745,586 1,684,815 
Property, plant and equipment, net (Note 7)
2,143,285 2,067,876 2,116,795 
Real estate held for sale or investment95,519 95,615 96,259 
Goodwill, net (Note 7)
1,752,533 1,781,047 1,801,296 
Intangible assets, net315,025 319,110 323,521 
Operating right-of-use assets196,919 204,716 211,497 
Other assets48,612 37,106 42,454 
Total assets$6,397,294 $6,251,056 $6,276,637 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 7)
$742,245 $815,472 $567,264 
Income taxes payable23,891 48,812 36,344 
Long-term debt due within one year (Note 5)
63,736 114,117 113,454 
Total current liabilities829,872 978,401 717,062 
Long-term debt, net (Note 5)
2,687,488 2,736,175 2,739,981 
Operating lease liabilities176,970 190,561 196,256 
Other long-term liabilities233,689 264,034 252,451 
Deferred income taxes, net404,095 252,817 344,190 
Total liabilities4,332,114 4,421,988 4,249,940 
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.01 par value, 25,000 shares authorized, no shares issued and outstanding
   
Common stock, $0.01 par value, 100,000 shares authorized, 46,715, 46,552 and 46,429 shares issued, respectively
467 466 465 
Exchangeable shares, $0.01 par value, 31, 34 and 34 shares issued and outstanding, respectively (Note 4)
   
Additional paid-in capital1,178,495 1,196,993 1,220,942 
Accumulated other comprehensive income10,759 27,799 50,643 
Retained earnings1,081,510 773,752 914,563 
Treasury stock, at cost, 6,306, 6,161 and 6,161 shares, respectively (Note 11)
(441,914)(404,411)(404,411)
Total Vail Resorts, Inc. stockholders’ equity1,829,317 1,594,599 1,782,202 
Noncontrolling interests235,863 234,469 244,495 
Total stockholders’ equity 2,065,180 1,829,068 2,026,697 
Total liabilities and stockholders’ equity$6,397,294 $6,251,056 $6,276,637 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
2


Vail Resorts, Inc.
Consolidated Condensed Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended April 30,Nine Months Ended April 30,
 2022202120222021
Net revenue:
Mountain and Lodging services and other$1,020,544 $794,393 $1,912,704 $1,495,777 
Mountain and Lodging retail and dining 155,992 93,885 345,448 208,362 
Resort net revenue1,176,536 888,278 2,258,152 1,704,139 
Real Estate129 800 624 1,369 
Total net revenue1,176,665 889,078 2,258,776 1,705,508 
Operating expense (exclusive of depreciation and amortization shown separately below):
Mountain and Lodging operating expense417,422 317,836 965,483 765,944 
Mountain and Lodging retail and dining cost of products sold57,174 35,937 135,118 90,435 
General and administrative91,764 73,294 260,259 210,444 
Resort operating expense566,360 427,067 1,360,860 1,066,823 
Real Estate operating expense1,609 2,023 4,590 5,088 
Total segment operating expense567,969 429,090 1,365,450 1,071,911 
Other operating (expense) income:
Depreciation and amortization(65,655)(64,071)(189,214)(189,362)
Gain on sale of real property189 189 1,151 189 
Change in estimated fair value of contingent consideration (Note 8)
(2,800)(10,400)(21,580)(12,202)
(Loss) gain on disposal of fixed assets and other, net(51)1,999 16,163 (762)
Income from operations540,379 387,705 699,846 431,460 
Mountain equity investment income, net363 1,011 2,695 6,177 
Investment income and other, net224 347 980 857 
Foreign currency (loss) gain on intercompany loans
(Note 5)
(1,040)4,157 (3,079)9,832 
Interest expense, net(35,132)(39,033)(112,043)(112,287)
Income before provision for income taxes504,794 354,187 588,399 336,039 
Provision for income taxes(118,211)(76,897)(110,407)(66,640)
Net income386,583 277,290 477,992 269,399 
Net income attributable to noncontrolling interests(14,033)(2,661)(21,383)(738)
Net income attributable to Vail Resorts, Inc.$372,550 $274,629 $456,609 $268,661 
Per share amounts (Note 4):
Basic net income per share attributable to Vail Resorts, Inc.$9.18 $6.82 $11.27 $6.67 
Diluted net income per share attributable to Vail Resorts, Inc.$9.16 $6.72 $11.20 $6.58 
Cash dividends declared per share$1.91 $ $3.67 $ 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
3



Vail Resorts, Inc.
Consolidated Condensed Statements of Comprehensive Income
(In thousands)
(Unaudited)

Three Months Ended April 30,Nine Months Ended April 30,
 2022202120222021
Net income$386,583 $277,290 $477,992 $269,399 
Foreign currency translation adjustments(15,199)54,910 (48,919)132,167 
Change in estimated fair value of hedging instruments, net of tax10,764 3,610 19,592 9,572 
Comprehensive income382,148 335,810 448,665 411,138 
Comprehensive income attributable to noncontrolling interests(9,257)(18,764)(9,096)(34,997)
Comprehensive income attributable to Vail Resorts, Inc.$372,891 $317,046 $439,569 $376,141 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
4


Vail Resorts, Inc.
Consolidated Condensed Statements of Stockholders’ Equity
(In thousands)
(Unaudited)
Common StockAdditional Paid in CapitalAccumulated Other Comprehensive IncomeRetained EarningsTreasury StockTotal Vail Resorts, Inc. Stockholders’ EquityNoncontrolling InterestsTotal Stockholders’ Equity
Vail ResortsExchangeable
Balance, January 31, 2021$465 $ $1,216,489 $8,226 $639,934 $(404,411)$1,460,703 $225,743 $1,686,446 
Comprehensive income:
Net income— — — — 274,629 — 274,629 2,661 277,290 
Foreign currency translation adjustments— — — 38,807 — — 38,807 16,103 54,910 
Change in estimated fair value of hedging instruments, net of tax— — — 3,610 — — 3,610 — 3,610 
Total comprehensive income317,046 18,764 335,810 
Stock-based compensation expense— — 6,184 — — — 6,184 — 6,184 
Issuance of shares under share award plans, net of shares withheld for employee taxes — (1,731)— — — (1,731)— (1,731)
Distributions to noncontrolling interests, net— — — — — — — (12)(12)
Balance, April 30, 2021$465 $ $1,220,942 $50,643 $914,563 $(404,411)$1,782,202 $244,495 $2,026,697 
Balance, January 31, 2022$467 $ $1,172,595 $10,418 $786,473 $(404,411)$1,565,542 $228,142 $1,793,684 
Comprehensive income:
Net income— — — — 372,550 — 372,550 14,033 386,583 
Foreign currency translation adjustments— — — (10,423)— — (10,423)(4,776)(15,199)
Change in estimated fair value of hedging instruments, net of tax— — — 10,764 — — 10,764 — 10,764 
Total comprehensive income372,891 9,257 382,148 
Stock-based compensation expense— — 6,029 — — — 6,029 — 6,029 
Issuance of shares under share award plans, net of shares withheld for employee taxes — (129)— — — (129)— (129)
Repurchase of common stock (Note 11)
— — — — — (37,503)(37,503)— (37,503)
Dividends (Note 4)
— — — — (77,513)— (77,513)— (77,513)
Distributions to noncontrolling interests, net— — — — — — — (1,536)(1,536)
Balance, April 30, 2022$467 $ $1,178,495 $10,759 $1,081,510 $(441,914)$1,829,317 $235,863 $2,065,180 
5


Common StockAdditional Paid in CapitalAccumulated Other Comprehensive (Loss) IncomeRetained EarningsTreasury StockTotal Vail Resorts, Inc. Stockholders’ EquityNoncontrolling InterestsTotal Stockholders’ Equity
Vail ResortsExchangeable
Balance, July 31, 2020$464 $ $1,131,624 $(56,837)$645,902 $(404,411)$1,316,742 $214,925 $1,531,667 
Comprehensive income:
Net income— — — — 268,661 — 268,661 738 269,399 
Foreign currency translation adjustments— — — 97,908 — — 97,908 34,259 132,167 
Change in estimated fair value of hedging instruments, net of tax— — — 9,572 — — 9,572 — 9,572 
Total comprehensive income376,141 34,997 411,138 
Equity component of 0.0% Convertible Notes, net (Note 5)
— — 80,066 — — — 80,066 — 80,066 
Stock-based compensation expense— — 18,517 — — — 18,517 — 18,517 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (9,265)— — — (9,264)— (9,264)
Distributions to noncontrolling interests, net— — — — — — — (5,427)(5,427)
Balance, April 30, 2021$465 $ $1,220,942 $50,643 $914,563 $(404,411)$1,782,202 $244,495 $2,026,697 
Balance, July 31, 2021$466 $ $1,196,993 $27,799 $773,752 $(404,411)$1,594,599 $234,469 $1,829,068 
Comprehensive income:
Net income— — — — 456,609 — 456,609 21,383 477,992 
Foreign currency translation adjustments— — — (36,632)— — (36,632)(12,287)(48,919)
Change in estimated fair value of hedging instruments, net of tax— — — 19,592 — — 19,592 — 19,592 
Total comprehensive income439,569 9,096 448,665 
Stock-based compensation expense— — 18,933 — — — 18,933 — 18,933 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (37,431)— — — (37,430)— (37,430)
Repurchase of common stock (Note 11)
— — — — — (37,503)(37,503)— (37,503)
Dividends (Note 4)
— — — — (148,851)— (148,851)— (148,851)
Distributions to noncontrolling interests, net— — — — — — — (7,702)(7,702)
Balance, April 30, 2022$467 $ $1,178,495 $10,759 $1,081,510 $(441,914)$1,829,317 $235,863 $2,065,180 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
6


Vail Resorts, Inc.
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended April 30,
 20222021
Cash flows from operating activities:
Net income$477,992 $269,399 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization189,214 189,362 
Stock-based compensation expense18,933 18,517 
Deferred income taxes, net127,449 69,063 
Change in estimated fair value of contingent consideration21,580 12,202 
Other non-cash income, net(9,368)(11,622)
Changes in assets and liabilities:
Trade receivables, net77,226 (99,727)
Inventories, net(11,883)30,680 
Accounts payable and accrued liabilities46,046 86,278 
Deferred revenue(137,355)(22,434)
Income taxes payable - excess tax benefit from share award exercises(17,042)(2,423)
Income taxes payable - other(7,799)(3,073)
Other assets and liabilities, net(2,009)14,915 
Net cash provided by operating activities772,984 551,137 
Cash flows from investing activities:
Capital expenditures(161,842)(85,595)
Acquisition of business, net of cash acquired(116,337) 
Other investing activities, net22,614 10,579 
Net cash used in investing activities(255,565)(75,016)
Cash flows from financing activities:
Proceeds from borrowings under Whistler Credit Agreement 21,144 
Proceeds from borrowings under 0.0% Convertible Notes 575,000 
Repayments of borrowings under Vail Holdings Credit Agreement(46,875)(46,875)
Repayments of borrowings under Whistler Credit Agreement(23,145)(44,050)
Repayment of EB-5 Development Notes(51,500) 
Employee taxes paid for share award exercises(37,431)(9,265)
Dividends paid(148,851) 
Repurchases of common stock(37,503) 
Other financing activities, net(7,348)(21,638)
Net cash (used in) provided by financing activities(352,653)474,316 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(1,377)3,863 
Net increase in cash, cash equivalents and restricted cash163,389 954,300 
Cash, cash equivalents and restricted cash:
Beginning of period1,258,574 402,086 
End of period$1,421,963 $1,356,386 
Non-cash investing activities:
Accrued capital expenditures$13,090 $7,299 
The accompanying Notes are an integral part of these unaudited consolidated condensed financial statements.
7


Vail Resorts, Inc.
Notes to Consolidated Condensed Financial Statements
(Unaudited)

1.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 40 destination mountain resorts and regional ski areas:

mtn-20220430_g2.jpg
*Denotes a destination mountain resort, which generally receives a meaningful portion of skier visits from long-distance travelers, as opposed to the Company’s regional ski areas, which tend to generate skier visits predominantly from their respective local markets.

Additionally, the Mountain segment includes ancillary services, primarily including ski school, dining and retail/rental operations, and for the Company’s Australian ski areas, including lodging and transportation operations.

In the Lodging segment, the Company owns and/or manages a collection of luxury hotels and condominiums under its RockResorts brand; 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, which operates destination resorts in Grand Teton National Park; a Colorado resort ground transportation company and mountain resort golf courses.

Vail Resorts Development Company, 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 peak operating season at the Company’s Australian resorts, NPS concessionaire properties and golf courses generally occurs from June to early October.

8


Expected Acquisition of Andermatt-Sedrun Sport AG
On March 28, 2022, the Company announced that it had entered into an agreement to acquire a 55% ownership stake in Andermatt-Sedrun Sport AG (“Andermatt-Sedrun”) from Andermatt Swiss Alps AG ("ASA"), which controls and operates all of Andermatt-Sedrun's mountain and ski-related assets, including lifts, most of the restaurants and a ski school operation. Pursuant to the terms of the agreement, the Company plans to invest CHF149 million, comprised of a CHF110 million investment into Andermatt-Sedrun for use in capital investments to enhance the guest experience on the mountain and CHF39 million which will be paid to ASA and fully reinvested into the real estate developments in the base area. ASA will retain a 40% ownership stake, with a group of existing shareholders comprising the remaining 5% ownership. The transaction is expected to close later in calendar year 2022, subject to certain third-party consents.

2.     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, 2021. 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, 2021 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.
Fair Value of Financial Instruments — The recorded amounts for cash and cash equivalents, restricted cash, trade receivables, other current assets, accounts payable and accrued liabilities approximate fair value due to their short-term nature. The fair value of amounts outstanding under the Company’s credit agreements and the Employee Housing Bonds (as defined in Note 5, Long-Term Debt) approximate book value due to the variable nature of the interest rate associated with the debt. The estimated fair values of the 6.25% Notes and the 0.0% Convertible Notes (each as defined in Note 5, Long-Term Debt) are based on quoted market prices (a Level 2 input). The estimated fair value of the EPR Secured Notes (as defined in Note 5, Long-Term Debt) has been estimated using analyses based on current borrowing rates for debt with similar remaining maturities and ratings (a Level 2 input). The carrying values, including any unamortized premium or discount, and estimated fair values of the 6.25% Notes, 0.0% Convertible Notes and EPR Secured Notes as of April 30, 2022 are presented below (in thousands):
April 30, 2022
Carrying ValueEstimated Fair Value
6.25% Notes$600,000 $616,212 
0.0% Convertible Notes$493,038 $546,969 
EPR Secured Notes$134,508 $181,454 
9


Recently Issued Accounting Standards
Standards Being Evaluated
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional transition guidance, for a limited time, to companies that have contracts, hedging relationships or other transactions that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate which is expected to be discontinued because of reference rate reform. The amendments provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions if certain criteria are met. The amendments in this update are effective as of March 12, 2020 through December 31, 2022. The amendments in this update may be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. All other amendments should be applied on a prospective basis. The Company is in the process of evaluating the effect that the adoption of this standard will have on its Consolidated Condensed Financial Statements, but does not expect it will have a material effect.

In August 2020, the FASB issued ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” which simplifies the guidance in Accounting Standards Codifications (“ASC”) 470-20, “Debt – Debt with Conversion and Other Options” by reducing the number of accounting separation models for convertible instruments, amending the guidance in ASC 815-40, “Derivatives and Hedging – Contracts in Entity’s Own Equity” for certain contracts in an entity’s own equity that are currently accounted for as derivatives, and requiring entities to use the if-converted method for all convertible instruments in the diluted earnings per share (“EPS”) calculation. This standard will be effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years (the Company’s first quarter of the fiscal year ending July 31, 2023). This standard allows for a modified retrospective or fully retrospective method of transition. The Company will adopt ASU 2020-06 on August 1, 2022 and expects to use the modified retrospective method, and therefore financial information for periods before August 1, 2022 will remain unchanged. As a result of the adoption of ASU 2020-06, the Company expects that it will reclassify the equity component of its 0.0% Convertible Notes (as defined in Note 5, Long-Term Debt) to long-term debt, net and it will no longer record interest expense related to the amortization of the debt discount.

3.     Revenues
Revenue Recognition

Revenue from the sale of pass products is recognized as lift revenue 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 customers. In accordance with Topic 606, the Company estimates progress towards satisfaction of its performance obligations using an output method that best depicts the transfer of control of the service to its customers.

Historically, the output method measured progress toward satisfaction of the Company’s performance obligations based on the estimated number of pass product holder visits relative to total expected visits, based on historical data, which the Company believed to provide a faithful depiction of its customers’ pass product usage. When sufficient historical data to determine usage patterns was not available, such as in the case of new product offerings, progress was measured on a straight-line basis throughout the ski season until sufficient historical usage patterns were available. Beginning August 1, 2021, progress towards satisfaction of the Company’s performance obligations for all passes is measured using an output method based on the skiable days of the season to date relative to the total estimated skiable days of the season, which effectively results in revenue being recorded on a straight-line basis throughout the ski season. Total estimated skiable days is based on actual resort opening and estimated closing dates. The Company believes this method best estimates the value transferred to the customer to date relative to the remaining services promised under the contract. Due to the strong correlation between historical pass product usage and skiable days, the change in the Company’s method of estimating progress toward satisfaction of the performance obligation alone does not have a material effect on the recognition pattern of pass product revenue.

10


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, 2022 and 2021 (in thousands):
Three Months Ended April 30,Nine Months Ended April 30,
 2022
2021(1)
2022
2021(1)
Mountain net revenue:
Lift$714,708 $577,680 $1,250,619 $1,041,546 
Ski School120,897 80,390 214,442 138,824 
Dining79,826 45,981 146,395 81,276 
Retail/Rental126,497 91,286 281,704 203,718 
Other42,707 34,575 135,150 106,005 
Total Mountain net revenue$1,084,635 $829,912 $2,028,310 $1,571,369 
Lodging net revenue:
Owned hotel rooms$18,295 $10,252 $53,362 $24,325 
Managed condominium rooms37,494 28,726 83,703 58,391 
Dining 14,646 4,162 33,296 7,703 
Transportation6,862 4,663 14,421 7,610 
Golf  5,138 3,733 
Other9,925 8,610 31,641 25,834 
87,222 56,413 221,561 127,596 
Payroll cost reimbursements4,679 1,953 8,281 5,174 
Total Lodging net revenue $91,901 $58,366 $229,842 $132,770 
Total Resort net revenue$1,176,536 $888,278 $2,258,152 $1,704,139 
Total Real Estate net revenue129 800 624 1,369 
Total net revenue$1,176,665 $889,078 $2,258,776 $1,705,508 
(1) Segment results for the three and nine months ended April 30, 2021 have been retrospectively adjusted to reflect current period presentation. See Note 10 for additional information.

Contract Balances
Deferred revenue balances of a short-term nature were $326.0 million and $456.5 million as of April 30, 2022 and July 31, 2021, respectively. Deferred revenue balances of a long-term nature, comprised primarily of long-term private club initiation fee revenue, was $119.2 million and $121.0 million as of April 30, 2022 and July 31, 2021, respectively. For the three and nine months ended April 30, 2022, the Company recognized approximately $200.9 million and $423.9 million, respectively, of revenue that was included in the deferred revenue balance as of July 31, 2021. As of April 30, 2022, the weighted average remaining period over which revenue for unsatisfied performance obligations on long-term private club contracts will be recognized was approximately 16 years. Trade receivables, net were $267.1 million and $345.4 million as of April 30, 2022 and July 31, 2021, respectively.

Costs to Obtain Contracts with Customers
As of April 30, 2022, $1.3 million of costs to obtain contracts with customers were recorded within other current assets on the Company’s Consolidated Condensed Balance Sheet. The amounts capitalized are subject to amortization commensurate with the revenue recognized for related pass products. The Company recorded amortization of $11.8 million and $21.9 million, respectively, for these costs during the three and nine months ended April 30, 2022, which was recorded within Mountain and Lodging operating expenses on the Company’s Consolidated Condensed Statement of Operations.

11


4.    Net Income per Share
Earnings per Share
Basic 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, 2022 and 2021 (in thousands, except per share amounts):
 Three Months Ended April 30,
 20222021
 BasicDilutedBasicDiluted
Net income per share:
Net income attributable to Vail Resorts$372,550 $372,550 $274,629 $274,629 
Weighted-average Vail Shares outstanding40,537 40,537 40,262 40,262 
Weighted-average Exchangeco Shares outstanding31 31 34 34 
Total Weighted-average shares outstanding40,568 40,568 40,296 40,296 
Effect of dilutive securities— 110 — 600 
Total shares40,568 40,678 40,296 40,896 
Net income per share attributable to Vail Resorts$9.18 $9.16 $6.82 $6.72 

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 8,000 and 1,000 for the three months ended April 30, 2022 and 2021, respectively.

Presented below is basic and diluted EPS for the nine months ended April 30, 2022 and 2021 (in thousands, except per share amounts):
 Nine Months Ended April 30,
 20222021
 BasicDilutedBasicDiluted
Net income per share:
Net income attributable to Vail Resorts$456,609 $456,609 $268,661 $268,661 
Weighted-average Vail Shares outstanding