SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report Pursuant to Section 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
(MARK ONE)
/x/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
FOR THE TRANSITION PERIOD FROM ___________________________ TO _____________
COMMISSION FILE NUMBER: 1-9614
A. FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM
THAT OF THE ISSUER NAMED BELOW:
THE VAIL ASSOCIATES, INC. 401(K) RETIREMENT PLAN
B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE
ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE:
VAIL RESORTS, INC.
P.O. BOX 7
VAIL, CO 81658
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
VAIL ASSOCIATES, INC. 401(K) RETIREMENT PLAN
NANCI N. NORTHWAY
VICE PRESIDENT & CONTROLLER
JULY 30, 1998
THE VAIL ASSOCIATES, INC.
-------------------------
401(k) RETIREMENT PLAN
----------------------
INDEX TO THE FINANCIAL STATEMENTS AND SCHEDULES
-----------------------------------------------
SEPTEMBER 30, 1997 AND 1996
---------------------------
Page (s)
--------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 1-2
FINANCIAL STATEMENTS:
Statement of Net Assets Available for Plan Benefits with Fund Information
as of September 30, 1997 & 1996 4
Statement of Changes in Net Assets Available for Plan Benefits with
Fund Information for the Year Ended September 30, 1997 5
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES 6-20
SCHEDULES SUPPORTING FINANCIAL STATEMENTS:
Schedule I: Item 27a - Schedule of Assets Held for Investment Purposes
as of September 30, 1997 21-22
Schedule II: Item 27d - Schedule of Reportable Transactions
for the Year Ended September 30, 1997 23
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Participants and the Administrative
Committee of the Vail Associates, Inc.
401(k) Retirement Plan:
We have audited the accompanying statements of net assets available for plan
benefits of THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN (the "Plan") as of
September 30, 1997 and 1996, and the related statement of changes in net assets
available for plan benefits for the year ended September 30, 1997. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of September 30, 1997 and 1996, and the changes in net assets available for plan
benefits for the year ended September 30, 1997, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The Fund Information in
the statements of net assets available for plan benefits and the statement of
changes in net assets available for plan benefits is presented for purposes of
additional analysis rather than to present the net assets available for plan
1
benefits and changes in net assets available for plan benefits of each fund.
The supplemental schedules and Fund Information have been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
Arthur Andersen, LLP
Denver, Colorado,
July 15, 1998.
2
THE VAIL ASSOCIATES, INC.
401(k) RETIREMENT PLAN
FINANCIAL STATEMENTS AND SCHEDULES
AS OF SEPTEMBER 30, 1997 AND 1996
TOGETHER WITH REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF SEPTEMBER 30,
-------------------
1997 1996
----------- -----------
CASH $ 10,263
INVESTMENTS:
Common/collective trusts 1,254,643 1,097,219
Mutual funds 19,288,949 14,182,042
Guaranteed interest accounts 271,988 489,071
Participant loans 359,573 289,672
Employer stock 890,775 -
----------- -----------
Total investments 22,076,191 16,058,004
RECEIVABLES AND OTHER:
Matching contributions receivable 631,925 525,283
Guaranteed interest accounts matured 209,249 278,408
----------- -----------
Total assets 22,917,365 16,861,695
LIABILITIES:
Excess contributions payable (48,777) (10,111)
----------- -----------
Net assets available for plan benefits $22,868,588 $16,851,584
=========== ===========
The accompanying notes are an integral part of this statement.
4
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED SEPTEMBER 30,
--------------------------------
ADDITIONS TO NET ASSETS 1997
-----------
ATTRIBUTED TO:
Contributions-
Employee $ 1,729,960
Employer 650,097
Rollover 35,703
Other 1,054
-----------
Total contributions 2,416,814
-----------
Investment income-
Dividend and interest income 688,013
Net realized and unrealized
gain on investments 3,302,906
-----------
Total additions 6,407,733
-----------
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED TO:
Benefits and distributions paid
to participants 363,884
Administrative expenses and other 26,845
-----------
Total deductions 390,729
-----------
NET TRANSFERS -
-----------
Net increase (decrease) in net
assets available for plan benefits 6,017,004
-----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year 16,851,584
-----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $22,868,588
===========
The accompanying notes are an integral part of this statement.
5
THE VAIL ASSOCIATES, INC.
-------------------------
401(k) RETIREMENT PLAN
----------------------
NOTES TO FINANCIAL STATEMENTS AND SCHEDULES
-------------------------------------------
SEPTEMBER 30, 1997 AND 1996
---------------------------
(1) DESCRIPTION OF THE PLAN
-----------------------
Effective May 1, 1978, Vail Associates, Inc. (the "Company") established The
Profit Sharing Thrift Plan of Vail Associates, Inc. The Plan was amended and
restated effective October 1, 1994. The amendment changed the name of the Plan
from The Profit Sharing Thrift Plan of Vail Associates, Inc. to The Vail
Associates, Inc. 401(k) Retirement Plan (the "Plan"). The following description
of the Plan provides only general information. Participants should refer to the
Plan agreement for a more complete description of the Plan's provisions.
General
-------
The Plan is a defined contribution plan administered by a committee appointed by
the Board of Directors of the Company. The Plan is subject to the applicable
provisions of the Employee Retirement Income Security Act of 1974 ("ERISA").
Benefits under the Plan are not guaranteed by the Pension Benefit Guaranty
Corporation.
Eligibility and Contributions
-----------------------------
Employees are eligible to participate in the Plan upon attaining the age of 21
and completing one year of employment including a minimum of 1,000 hours of
service.
Each participant may elect to contribute from 2% to 15% of their qualifying
annual compensation, as defined in the Plan agreement. However, deferred
contributions shall not exceed $9,500 in the calendar years ending December 31,
1997 and 1996 as set forth by the Internal Revenue Code ("IRC").
The Company may, in its sole discretion, make matching contributions equal to
50% of each participant's contribution. However, the matching percentage is
only applicable up to 6% of the participant's qualifying annual compensation
regardless of the percentage contributed by the participant. In the event that
the Company makes matching contributions that are less than these percentages,
matching contributions will be allocated to participants in proportion to their
contributions and the applicable matching percentages for such plan year. In
addition to matching contributions, the Company may, in its sole discretion,
make discretionary contributions in an amount determined by the Board of
Directors. Discretionary Company contributions will be allocated to
participants who are eligible to share in the allocation of matching Company
contributions according to the participant's compensation earned during the Plan
year. Due to limitations imposed by the IRC, the sum of Company contributions
and participant deferred contributions may not, in general, exceed the lesser of
(1) 25% of a participant's compensation for the year or (2) $30,000.
6
Subject to Company approval, participants may elect rollovers of amounts from
other qualified plans in accordance with the Internal Revenue Code.
Participant Accounts
--------------------
Each participant's account is credited with his or her contribution, the Company
matching contribution, discretionary Company contributions, if any, and an
allocation of Plan earnings and expenses. Allocations are determined by the
Plan document. The benefit to which a participant is entitled is the vested
portion of the benefit that can be provided from the participant's account.
Vesting
-------
Participants' contributions are immediately 100% vested. Vesting in the
Company's contributions is according to the following schedule:
Years of Service Vested Percentage
---------------- -----------------
Fewer than 1 0%
1 33-1/3%
2 66-2/3%
3 100%
Participants forfeit unvested Company contributions upon termination from the
Plan. All amounts forfeited are used to reduce Company matching contributions
otherwise required. Forfeitures during the year ended September 30, 1997 and
1996 were immaterial to the Plan.
Termination Provisions
----------------------
Although the Company has not expressed any intent to do so, it has the right,
under the Plan agreement, to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100% vested in their accounts.
Payments of Benefits
--------------------
A participant's entire interest in the Plan is payable upon death of the
participant, upon attaining normal retirement age (65), or upon being considered
disabled as determined by the Plan administrative committee. Upon other
terminations of service a participant may elect to receive a lump-sum
distribution equal to his or her vested account balance. In addition, hardship
distributions are permitted if certain criteria are met.
Loans to Participants
---------------------
A participant may borrow the lesser of $50,000 or 50% of his vested account
balance with a minimum loan amount of $1,000. Loans are secured by the
participant's account and bear an interest rate based on U.S. Treasury rates for
notes of equivalent maturities on the date the interest rate is established,
plus 4%. The loans are subject to certain restrictions, as defined by the Plan
document and applicable restrictions under the IRC.
(2) SUMMARY OF ACCOUNTING POLICIES
------------------------------
Basis of Accounting
-------------------
7
The accompanying financial statements are presented on the accrual basis of
accounting. The preparation of the financial statements in conformity with
generally accepted accounting principles requires the Plan's management to use
estimates and assumptions that affect the accompanying financial statements and
disclosures. Actual results could differ from these estimates.
Investment Valuation and Income Recognition
-------------------------------------------
Plan investments are stated at fair value based primarily on quoted market
prices. Company common stock is traded on a national securities exchange and is
valued at the last reported sales price on the last business day of the year.
Guaranteed interest accounts are valued at fair market value, as determined by
Principal Mutual Life Insurance Company, as these contracts are not fully
benefit-responsive. Loans are valued at cost which approximates fair market
value.
Net realized and unrealized gain (loss) on investments is determined as the
difference between market value at the beginning of the year (or date purchased
during the year) and selling price or year end market value. For purposes of
the supplemental schedules, cost is determined based on the original cost to
acquire the asset.
Administrative Expenses
-----------------------
Expenses of administering the Plan are paid by the Company, with all other costs
and expenses being deducted from the participants' accounts on a pro-rata basis.
Payment of Benefits
-------------------
Benefits are recorded when paid.
(3) INCOME TAXES
------------
The Company has received a favorable determination letter from the IRS dated
January 31, 1997, that the Plan meets the requirements of Section 401(a) of the
IRC and is exempt from federal income taxes under Section 501(a) of the IRC.
The Plan administrator and the Plan's tax counsel believe that the Plan is
currently designed and being operated in compliance with the applicable
requirements of the IRC. Therefore, they believe that the Plan was qualified
and the related trust was tax exempt as of September 30, 1997 and 1996.
(4) INVESTMENTS
-----------
Various investment advisors manage the Plan's assets. Participants may direct
their investments in the following options.
Principal Mutual Life Insurance
Company: --- Guaranteed Interest Accounts -- This fund is part of
Principal Mutual Life Insurance Company's General
Account. The underlying assets in the General
Account are invested mostly in private placement
bonds, commercial mortgages and residential
mortgages.
INVESCO: --- Stable Value Fund -- This fund invests in a
diversified portfolio of investment contracts with
insurance companies, banks, or other financial
institutions. A portion of the fund is also
invested in money market accounts.
8
The American Funds Group: -- Bond Fund of America -- This fund invests in a
diversified portfolio consisting mostly of
marketable corporate bonds, government bonds,
and money market securities.
-- Fundamental Investors Fund -- This fund invests
primarily in a diversified portfolio of stocks
or investments that are convertible into
stocks. Assets may also be held in bonds or
cash or cash equivalents and U.S. governmental
securities.
AIM Family of Funds: -- Value Fund - Class A -- This fund invests
primarily in stocks of large, financially
healthy companies whose stock prices are low
compared to the fund management's expectations
for future growth in earnings and dividends.
-- Constellation Fund -- This fund emphasizes
investing in small-to-medium-sized emerging-
growth companies and trading in securities for
the short-term.
Putnam Investments: -- New Opportunities Fund - Class A -- This fund
invests primarily in the stocks of companies in
growth sectors of the economy that have the
potential for above-average growth.
9
The Franklin Templeton Group: -- World Fund -- This fund invests in stocks of
companies whose prices are low compared to
management's expectations for future growth
in earnings and dividends, but it may also
invest in bonds, rated or unrated.
-- Foreign Fund -- This fund invests primarily in
stocks and bonds of large companies and
governments outside the United States.
-- Real Estate Fund -- This fund invests
primarily in securities of issuers
throughout the world which are significantly
engaged in or related to the real estate
industry.
The stated objectives of these funds are not necessarily indicators of actual
performance.
The fair market value of individual investments that represent 5% or more of the
Plan's total investments as of September 30, 1997 and 1996 are separately
identified in the accompanying Statements of Net Assets Available for Plan
Benefits with Fund Information.
(5) RELATED PARTY TRANSACTIONS
--------------------------
In connection with Vail Resorts, Inc.'s (parent company of Vail Associates,
Inc.) Initial Public Offering on February 4, 1997, there was a one-time
opportunity for plan participants to purchase, with their plan assets, Vail
Resorts, Inc. common stock at a discount to the offering price. A total of
34,000 shares were purchased at a cost of $699,380. Subsequent to the Initial
Public Offering, Vail Resorts, Inc. common stock is not available as an
investment alternative for plan participant contributions until June 1, 1998
(see Note 8).
(6) RISKS AND UNCERTAINTIES
-----------------------
The Plan provides for various investment options in common/collective trusts,
mutual funds, guaranteed interest accounts and employer stock. Investment
securities, in general, are exposed to various risks, such as interest rate,
credit and overall market volatility. Due to the level of risk associated with
certain investment securities, it is reasonably possible that changes in the
values of investment securities will occur in the near term and such changes
could materially affect participants' account balances and amounts reported in
the statements of net assets available for plan benefits.
(7) SUBSEQUENT PLAN MERGER
----------------------
On January 3, 1997, Vail Resorts, Inc. acquired 100% of the stock of Ralston
Resorts, Inc (which owns and operates Keystone, Breckenridge and Arapahoe Basin
ski areas). Ralston Resorts, Inc. Savings and Investment Plan was merged into
the Plan effective June 1, 1998 and approximately $12.7 million of assets were
transferred as a result of this merger.
10
(8) SUBSEQUENT PLAN AMENDMENT/RESTATEMENT
-------------------------------------
Effective June 1, 1998 the Plan was amended and restated. The amendment and
restatement changed certain provisions of the Plan. Significant revisions to
the Plan are as follows:
. Vesting schedule changed from three years to four years for Company
contributions.
. Eligibility requirements changed to permit fulfillment of hours of
service as 1,000 hours in first year or 1,500 cumulative hours.
. Exclusion of part-time and temporary employees from receipt of Company
matching contributions. In addition, the Company changed timing of match
contributions to each pay period rather than on a yearly basis.
. Participants are permitted to have a maximum of two loans outstanding
with all loan limitations in effect as defined.
. Vail Resorts, Inc. Common Stock was made available as an investment
election subject to various rules and limitations, as defined.
. Participants that have obtained the age of 50 and are 100% vested may
receive withdrawal of their account balance as a lump-sum distribution
or as a series of periodic annuity payments.
. Plan year changed from September 30 to December 31.
11
Page 1 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF SEPTEMBER 30, 1997
------------------------
Principal
Mutual Life
Insurance
Company
INVESCO ---------- AIM Family of Funds The American Funds Group
------------ Guaranteed ------------------------- ----------------------------
Stable Value Interest Value Fund- Constellation Bond Fund Fundamental
Fund Accounts Class A Fund of America Investors Fund
------------ ---------- ---------- ------------- ------------ ----------------
CASH $ - $ - $ - $ - $ - $ -
INVESTMENTS:
Common/collective trusts 1,254,643 - - - - -
Mutual funds - - 1,329,473 3,643,891 468,326 1,257,994
Guaranteed interest accounts - 271,988 - - - -
Participant loans - - - - - -
Employer stock - - - - - -
------------ ---------- ---------- ------------ ----------- -------------
Total investments 1,254,643 271,988 1,329,473 3,643,891 468,326 1,257,994
RECEIVABLES:
Matching contributions
receivable 45,882 - 34,942 110,103 17,706 34,638
Guaranteed interest accounts
matured - - 209,249 - - -
------------ ---------- ---------- ------------ ----------- -------------
Total assets 1,300,525 481,237 1,364,415 3,753,994 486,032 1,292,632
LIABILITIES:
Excess contributions payable (2,086) (9,231) - (1,610) - (2,721)
------------ ---------- ---------- ------------ ----------- -------------
Net assets available for plan
Benefits $ 1,298,439 $ 472,006 $1,364,415 $ 3,752,384 $ 486,032 $ 1,289,911
============ ========== ========== ============ =========== =============
The accompanying notes are an integral part of this statement.
12
Page 2 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
----------------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF SEPTEMBER 30, 1997
------------------------
Putnam
Investments
--------------- The Franklin Templeton Group
New -----------------------------------------
Opportunities Foreign Real Estate World
Fund - Class A Fund Fund Fund
-------------- ------------ ----------- ------------
CASH $ - $ - $ - $ -
INVESTMENTS:
Common/collective trusts - - - -
Mutual funds 7,056,769 1,138,590 1,312,046 3,081,860
Guaranteed interest accounts - - - -
Participant loans - - - -
Employer stock - - - -
-------------- ------------ ----------- ------------
Total investments 7,056,769 1,138,590 1,312,046 3,081,860
RECEIVABLES:
Matching contributions receivable 218,034 36,035 45,526 89,059
Guaranteed interest accounts matured - - - -
-------------- ------------ ----------- ------------
Total assets 7,274,803 1,174,625 1,357,572 3,170,919
LIABILITIES:
Excess contributions payable (27,584) (3,493) (2,052) -
-------------- ------------ ----------- ------------
Net assets available for plan benefits $ 7,247,219 $ 1,171,132 $ 1,355,520 $ 3,170,919
============== ============ =========== ============
The accompanying notes are an integral part of this statement.
13
Page 3 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF SEPTEMBER 30, 1997
------------------------
Vail
Resorts, Inc.
Common Participant
Stock Loans Cash Total
------------- ----------- --------- -----------
CASH $ - $ - $ 10,263 $ 10,263
INVESTMENTS:
Common/collective trusts - - - 1,254,643
Mutual funds - - - 19,288,949
Guaranteed interest accounts - - - 271,988
Participant loans - 359,573 - 359,573
Employer stock 890,775 - - 890,775
------------- ----------- --------- -----------
Total investments 890,775 359,573 10,263 22,076,191
RECEIVABLES:
Matching contributions receivable - - - 631,925
Guaranteed interest accounts matured - - - 209,249
------------- ----------- --------- -----------
Total assets 890,775 359,573 10,263 22,917,365
LIABILITIES:
Excess contributions payable - - - (48,777)
------------- ----------- --------- -----------
Net assets available for plan benefits $890,775 $359,573 $10,263 $22,868,588
============= =========== ========= ===========
The accompanying notes are an integral part of this statement.
14
Page 1 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF SEPTEMBER 30, 1996
------------------------
Principal
Mutual Life
Insurance
Company
INVESCO ---------- AIM Family of Funds
------------ Guaranteed ---------------------------
Stable Value Interest Value Fund - Constellation
Fund Accounts Class A Fund
------------ ----------- ------------ -----------
INVESTMENTS:
Common/collective trusts $ 1,097,219 $ - $ - $ -
Mutual funds - - 857,807 2,773,487
Guaranteed interest accounts - 489,071 - -
Participant loans - - - -
------------ ----------- ---------- -----------
Total investments 1,097,219 489,071 857,807 2,773,487
RECEIVABLES AND OTHER:
Matching contributions receivable 50,542 - 26,819 88,504
Guaranteed interest accounts matured - 278,408 - -
------------ ------------ --------- -----------
Total assets 1,147,761 767,479 884,626 2,861,991
LIABILITIES:
Excess contributions payable (907) - (499) (1,813)
------------ ------------ --------- -----------
Net assets available for plan benefits $ 1,146,854 $ 767,479 $ 884,127 $ 2,860,178
============ ============ ========= ===========
The accompanying notes are an integral part of this statement.
15
Page 2 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
----------------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF SEPTEMBER 30, 1996
------------------------
Putnam
Investments
The American Funds Group --------------
----------------------------- New
Bond Fund of Fundamental Opportunities
America Investors Fund Fund - Class A
------------ -------------- ---------------
INVESTMENTS:
Common/collective trusts $ - $ - $ -
Mutual funds 376,097 756,822 5,504,971
Guaranteed interest accounts - - -
Participant loans - - -
------------ -------------- ---------------
Total investments 376,097 756,822 5,504,971
RECEIVABLES AND OTHER:
Matching contributions receivable 15,886 24,444 177,780
Guaranteed interest accounts matured - - -
------------ ------------- ---------------
Total assets 391,983 781,266 5,682,751
LIABILITIES:
Excess contributions payable (190) (1,139) (2,358)
------------ ------------- ---------------
Net assets available for plan benefits $ 391,793 $ 780,127 $ 5,680,393
============ ============= ===============
The accompanying notes are an integral part of this statement.
16
Page 3 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
----------------------------------------------------
WITH FUND INFORMATION
---------------------
AS OF SEPTEMBER 30, 1996
------------------------
The Franklin Templeton Group
---------------------------------------
Foreign Real Estate World Participant
Fund Fund Fund Loans Total
--------- ----------- ----------- ----------- ------------
INVESTMENTS:
Common/collective trusts $ - $ - $ - $ - $ 1,097,219
Mutual funds 889,257 936,391 2,087,210 - 14,182,042
Guaranteed interest accounts - - - 489,071
Participant loans - - - 289,672 289,672
--------- ----------- ----------- ----------- ------------
Total investments 889,257 936,391 2,087,210 289,672 16,058,004
RECEIVABLES AND OTHER:
Matching contributions receivable 28,919 38,614 73,775 - 525,283
Guaranteed interest accounts matured - - - - 278,408
--------- ----------- ----------- ----------- ------------
Total assets 918,176 975,005 2,160,985 289,672 16,861,695
LIABILITIES:
Excess contributions payable (1,284) (1,728) (193) - (10,111)
--------- ----------- ----------- ----------- ------------
Net assets available for plan benefits $ 916,892 $ 973,277 $ 2,160,792 $ 289,672 $ 16,851,584
========= =========== =========== =========== ============
The accompanying notes are an integral part of this statement.
17
Page 1 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------------------
WITH FUND INFORMATION
---------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1997
-------------------------------------
Principal
Mutual Life
Insurance
Company
INVESCO ----------- AIM Family of Funds The American Funds Group
------------ Guaranteed -------------------------- -------------------------
Stable Value Interest Value Fund- Constellation Bond Fund Fundamental
Fund Accounts Class A Fund of America Investor Fund
------------ ----------- ----------- ------------- ---------- -------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Contributions-
Employee $ 122,831 $ (9,231) $ 95,870 $ 318,155 $ 45,138 $ 88,330
Employer 46,032 - 36,572 113,867 17,765 35,235
Rollover 682 - 372 11,523 272 677
Other - - - - - -
---------- --------- ---------- ---------- --------- ----------
Total contributions 169,545 (9,231) 132,814 443,545 63,175 124,242
---------- --------- ---------- ---------- --------- ----------
Investment income-
Dividend and interest income 63,701 29,227 47,659 100,801 32,320 77,215
Net realized and unrealized
gain on investments - - 275,834 622,353 14,462 245,399
---------- --------- ---------- ---------- --------- ----------
Total additions 233,246 19,996 456,307 1,166,699 109,957 446,856
---------- --------- ---------- ---------- --------- ----------
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED TO:
Benefits and distributions paid
to participants 46,058 8,625 16,415 56,744 38,250 15,276
Administrative expenses and other 2,924 105 1,514 4,456 981 1,332
---------- --------- ---------- ---------- --------- ----------
Total deductions 48,982 8,730 17,929 61,200 39,231 16,608
---------- --------- ---------- ---------- -------- ----------
NET TRANSFERS (32,679) (306,739) 41,910 (213,293) 23,513 79,536
---------- --------- ---------- ---------- -------- ----------
Net increase (decrease) in net
assets available for plan
benefits 151,585 (295,473) 480,288 892,206 94,239 509,784
---------- --------- ---------- ---------- -------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year 1,146,854 767,479 884,127 2,860,178 391,793 780,127
---------- --------- ---------- ---------- -------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $1,298,439 $ 472,006 $1,364,415 $3,752,384 $486,032 $1,289,911
========== ========= ========== ========== ======== ==========
The accompanying notes are an integral part of this statement.
18
Page 2 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
WITH FUND INFORMATION
---------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1997
-------------------------------------
Putnam
Investments
-------------- The Franklin Templeton Group
New ----------------------------------
Opportunities Foreign Real Estate World
Fund - Class A Fund Fund Fund
-------------- --------- ----------- --------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Contributions-
Employee $ 584,533 $ 96,902 $ 132,494 $ 254,938
Employer 223,118 38,666 46,789 92,053
Rollover 14,281 695 3,420 3,781
Other - - - -
---------- ---------- ---------- ----------
Total contributions 821,932 136,263 182,703 350,772
---------- ---------- ---------- ----------
Investment income-
Dividend and interest income 42,978 40,918 29,460 194,198
Net realized and unrealized
gain on investments 867,027 184,197 230,781 654,262
---------- ---------- ---------- ----------
Total additions 1,731,937 361,378 442,944 1,199,232
---------- ---------- ---------- ----------
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED TO:
Benefits and distributions paid
to participants 87,067 29,579 19,460 38,092
Administrative expenses and other 8,564 1,581 2,006 3,382
---------- ---------- ---------- ----------
Total deductions 95,631 31,160 21,466 41,474
---------- ---------- ---------- ----------
NET TRANSFERS (69,480) (75,978) (39,235) (147,631)
---------- ---------- ---------- ----------
Net increase (decrease) in net
assets available for plan benefits 1,566,826 254,240 382,243 1,010,127
---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year 5,680,393 916,892 973,277 2,160,792
---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $7,247,219 $1,171,132 $1,355,520 $3,170,919
========== ========== ========== ==========
The accompanying notes are an integral part of this statement.
19
Page 3 of 3
THE VAIL ASSOCIATES, INC. 401(k) RETIREMENT PLAN
------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
--------------------------------------------------------------
WITH FUND INFORMATION
---------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1997
-------------------------------------
Vail
Resorts, Inc.
Common Participant
Stock Loans Other Total
------------- ------------- ------------- -------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Contributions-
Employee $ - $ - $ - $ 1,729,960
Employer - - - 650,097
Rollover - - - 35,703
Other - - 1,054 1,054
------------- ------------- ------------- -------------
Total contributions - - 1,054 2,416,814
------------- ------------- ------------- -------------
Investment income-
Dividend and interest income - 26,564 2,972 688,013
Net realized and unrealized
gain on investments 208,591 - - 3,302,906
------------- ------------- ------------- -------------
Total additions 208,591 26,564 4,026 6,407,733
------------- ------------- ------------- -------------
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED TO:
Benefits and distributions paid
to participants 5,352 2,966 - 363,884
Administrative expenses and other - - - 26,845
------------- ------------- ------------- -------------
Total deductions 5,352 2,966 - 390,729
------------- ------------- ------------- -------------
NET TRANSFERS 687,536 46,303 6,237 -
------------- ------------- ------------- -------------
Net increase (decrease) in net
assets available for plan benefits 890,775 69,901 10,263 6,017,004
------------- ------------- ------------- -------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year - 289,672 - 16,851,584
------------- ------------- ------------- -------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $ 890,775 $ 359,573 $ 10,263 $ 22,868,588
============= ============= ============= =============
The accompanying notes are an integral part of this statement.
20
SCHEDULE I
Page 1 of 2
THE VAIL ASSOCIATES, INC.
-------------------------
401(k) RETIREMENT PLAN
----------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
AS OF SEPTEMBER 30, 1997
------------------------
Identity of Issue, Borrower, Historical Current
Lessor or Similar Party Description of Investment Cost Value
- -------------------------- --------------------------------------- ------------ -----------
Common/Collective Trusts:
INVESCO Stable Value Fund $ 933,759 $ 933,759
AIM Family of Funds Money Market Fund - Class A 66,092 66,092
The American Funds Group The Cash Management Trust of America 53,730 53,730
Putnam Investments Money Market Fund 137,249 137,249
The Franklin Templeton Group Money Fund 63,813 63,813
---------- ----------
Total Common/Collective Trusts 1,254,643 1,254,643
---------- ----------
Mutual Funds:
AIM Family of Funds Value Fund - Class A 931,982 1,329,473
AIM Family of Funds Constellation Fund 2,436,329 3,643,891
The American Funds Group Bond Fund of America 441,436 468,326
The American Funds Group Fundamental Investors Fund 898,576 1,257,994
Putnam Investments New Opportunities Fund - Class A 4,576,398 7,056,769
The Franklin Templeton Group Foreign Fund 854,141 1,138,590
The accompanying notes are an integral part of this schedule.
21
SCHEDULE I
Page 2 of 2
THE VAIL ASSOCIATES, INC.
-------------------------
401(k) RETIREMENT PLAN
----------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
AS OF SEPTEMBER 30, 1997
------------------------
Identity of Issue, Borrower Historical Current
Lessor or Similar Party Description of Investment Cost Value
- ---------------------------- ---------------------------- ---------------- -------------
The Franklin Templeton Real Estate Fund $ 1,025,715 $ 1,312,046
Group
The Franklin Templeton World Fund 2,306,219 3,081,860
Group ----------- ------------
Total Mutual Funds 13,470,796 19,288,949
----------- ------------
Principal Mutual Life Guaranteed Interest
Insurance Company Account, due
September 30, 1998 271,988 271,988
----------- ------------
Total Guaranteed 271,988 271,988
Interest Accounts ----------- ------------
* Vail Resorts, Inc. Employer stock 699,380 890,775
Participant Loans Loans secured by
participant's vested
accrued benefits,
interest rate range
8.84% - 11.79% 359,573 359,573
---------------------- ----------- ------------
Total Investments $16,056,380 $22,065,928
=========== ============
* Represents a party-in-interest (see Note 5).
The accompanying notes are an integral part of this schedule.
22
SCHEDULE II
THE VAIL ASSOCIATES, INC.
-------------------------
401(k) RETIREMENT PLAN
----------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS (a) (b)
-------------------------------------------------------
FOR THE YEAR ENDED SEPTEMBER 30, 1997
-------------------------------------
Identity of Number of Purchase Selling Cost of
Party Involved Description of Asset Transactions Price Price Asset Net Gain
- ------------------------------- -------------------------------- ------------ ---------- --------- --------- ---------
Series of Transactions:
Mutual Funds:
AIM Family of Funds Constellation Fund 38 $ 571,311 $ - $ 571,311 $ -
AIM Family of Funds Constellation Fund 44 - 424,059 321,707 102,352
Putnam Investments New Opportunities Fund-Class A 49 1,229,961 - 1,229,961 -
Putnam Investments New Opportunities Fund-Class A 43 - 588,168 431,318 156,850
The Franklin Templeton Group World Fund 39 544,784 - 544,784 -
The Franklin Templeton Group World Fund 39 - 398,595 336,938 61,657
(a) This schedule is a listing of series of transactions of the same security
which exceeded 5% of the Plan assets as of October 1, 1996.
(b) This schedule is prepared using the alternative way of reporting (iii)
series transactions under DOL Regulation 2520.103-6 (d) (2).
The accompanying notes are an integral part of this schedule.
23
