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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 January 31, 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
https://cdn.kscope.io/38868afa70f1787e776459ee27c45271-mtn-20220131_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 March 10, 2022, 40,553,539 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.




Vail Resorts, Inc.
Consolidated Condensed Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
January 31, 2022July 31, 2021January 31, 2021
Assets
Current assets:
Cash and cash equivalents$1,407,019 $1,243,962 $1,301,003 
Restricted cash15,643 14,612 11,001 
Trade receivables, net167,088 345,408 117,012 
Inventories, net104,573 80,316 86,876 
Other current assets73,104 61,288 57,559 
Total current assets1,767,427 1,745,586 1,573,451 
Property, plant and equipment, net (Note 7)
2,190,332 2,067,876 2,158,863 
Real estate held for sale or investment95,331 95,615 96,801 
Goodwill, net (Note 7)
1,764,106 1,781,047 1,760,908 
Intangible assets, net318,078 319,110 318,983 
Operating right-of-use assets198,672 204,716 215,377 
Other assets35,796 37,106 41,450 
Total assets$6,369,742 $6,251,056 $6,165,833 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 7)
$1,067,137 $815,472 $831,794 
Income taxes payable24,153 48,812 37,862 
Long-term debt due within one year (Note 5)
63,746 114,117 112,796 
Total current liabilities1,155,036 978,401 982,452 
Long-term debt, net (Note 5)
2,695,589 2,736,175 2,768,015 
Operating lease liabilities188,797 190,561 210,855 
Other long-term liabilities (Note 7)
254,209 264,034 251,913 
Deferred income taxes, net282,427 252,817 266,152 
Total liabilities4,576,058 4,421,988 4,479,387 
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, 46,713, 46,552 and 46,416 shares issued, respectively
467 466 465 
Exchangeable shares, $0.01 par value, 33, 34 and 35 shares issued and outstanding, respectively (Note 4)
   
Additional paid-in capital1,172,595 1,196,993 1,216,489 
Accumulated other comprehensive income10,418 27,799 8,226 
Retained earnings786,473 773,752 639,934 
Treasury stock, at cost, 6,161 shares (Note 11)
(404,411)(404,411)(404,411)
Total Vail Resorts, Inc. stockholders’ equity1,565,542 1,594,599 1,460,703 
Noncontrolling interests228,142 234,469 225,743 
Total stockholders’ equity 1,793,684 1,829,068 1,686,446 
Total liabilities and stockholders’ equity$6,369,742 $6,251,056 $6,165,833 
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 January 31,Six Months Ended January 31,
 2022202120222021
Net revenue:
Mountain and Lodging services and other$770,300 $597,110 $892,160 $701,384 
Mountain and Lodging retail and dining 136,055 87,219 189,456 114,477 
Resort net revenue906,355 684,329 1,081,616 815,861 
Real Estate180 315 495 569 
Total net revenue906,535 684,644 1,082,111 816,430 
Operating expense (exclusive of depreciation and amortization shown separately below):
Mountain and Lodging operating expense364,336 293,971 548,061 448,108 
Mountain and Lodging retail and dining cost of products sold53,715 37,366 77,944 54,498 
General and administrative91,261 78,121 168,495 137,150 
Resort operating expense509,312 409,458 794,500 639,756 
Real Estate operating expense1,511 1,615 2,981 3,065 
Total segment operating expense510,823 411,073 797,481 642,821 
Other operating (expense) income:
Depreciation and amortization(62,070)(62,663)(123,559)(125,291)
Gain on sale of real property931  962  
Change in estimated fair value of contingent consideration (Note 8)
(16,780)(1,000)(18,780)(1,802)
Gain (loss) on disposal of fixed assets and other, net7,347 (2,192)16,214 (2,761)
Income from operations325,140 207,716 159,467 43,755 
Mountain equity investment income, net818 1,180 2,332 5,166 
Investment income and other, net257 167 756 510 
Foreign currency (loss) gain on intercompany loans
(Note 5)
(2,870)5,135 (2,039)5,675 
Interest expense, net(37,366)(37,847)(76,911)(73,254)
Income (loss) before (provision for) benefit from income taxes285,979 176,351 83,605 (18,148)
(Provision for) benefit from income taxes(52,049)(27,221)7,804 10,257 
Net income (loss)233,930 149,130 91,409 (7,891)
Net (income) loss attributable to noncontrolling interests(10,539)(1,332)(7,350)1,923 
Net income (loss) attributable to Vail Resorts, Inc.$223,391 $147,798 $84,059 $(5,968)
Per share amounts (Note 4):
Basic net income (loss) per share attributable to Vail Resorts, Inc.$5.51 $3.67 $2.08 $(0.15)
Diluted net income (loss) per share attributable to Vail Resorts, Inc.$5.47 $3.62 $2.06 $(0.15)
Cash dividends declared per share$0.88 $ $1.76 $ 
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 January 31,Six Months Ended January 31,
 2022202120222021
Net income (loss)$233,930 $149,130 $91,409 $(7,891)
Foreign currency translation adjustments(48,857)75,484 (33,720)77,257 
Change in estimated fair value of hedging instruments, net of tax4,483 1,307 8,828 5,962 
Comprehensive income189,556 225,921 66,517 75,328 
Comprehensive (income) loss attributable to noncontrolling interests(436)(17,510)161 (16,233)
Comprehensive income attributable to Vail Resorts, Inc.$189,120 $208,411 $66,678 $59,095 
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 (Loss) IncomeRetained EarningsTreasury StockTotal Vail Resorts, Inc. Stockholders’ EquityNoncontrolling InterestsTotal Stockholders’ Equity
Vail ResortsExchangeable
Balance, October 31, 2020$464 $ $1,130,318 $(52,387)$492,136 $(404,411)$1,166,120 $209,607 $1,375,727 
Comprehensive income:
Net income— — — — 147,798 — 147,798 1,332 149,130 
Foreign currency translation adjustments— — — 59,306 — — 59,306 16,178 75,484 
Change in estimated fair value of hedging instruments, net of tax— — — 1,307 — — 1,307 — 1,307 
Total comprehensive income208,411 17,510 225,921 
Equity component of 0.0% Convertible Notes, net (Note 5)
— — 80,066 — — — 80,066 — 80,066 
Stock-based compensation expense— — 6,579 — — — 6,579 — 6,579 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (474)— — — (473)— (473)
Distributions to noncontrolling interests, net— — — — — — — (1,374)(1,374)
Balance, January 31, 2021$465 $ $1,216,489 $8,226 $639,934 $(404,411)$1,460,703 $225,743 $1,686,446 
Balance, October 31, 2021$466 $ $1,192,901 $44,689 $598,796 $(404,411)$1,432,441 $233,989 $1,666,430 
Comprehensive income:
Net income— — — — 223,391 — 223,391 10,539 233,930 
Foreign currency translation adjustments— — — (38,754)— — (38,754)(10,103)(48,857)
Change in estimated fair value of hedging instruments, net of tax— — — 4,483 — — 4,483 — 4,483 
Total comprehensive income189,120 436 189,556 
Stock-based compensation expense— — 6,479 — — — 6,479 — 6,479 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (26,785)— — — (26,784)— (26,784)
Dividends (Note 4)
— — — — (35,714)— (35,714)— (35,714)
Distributions to noncontrolling interests, net— — — — — — — (6,283)(6,283)
Balance, January 31, 2022$467 $ $1,172,595 $10,418 $786,473 $(404,411)$1,565,542 $228,142 $1,793,684 
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 loss— — — — (5,968)— (5,968)(1,923)(7,891)
Foreign currency translation adjustments— — — 59,101 — — 59,101 18,156 77,257 
Change in estimated fair value of hedging instruments, net of tax— — — 5,962 — — 5,962 — 5,962 
Total comprehensive income59,095 16,233 75,328 
Equity component of 0.0% Convertible Notes, net (Note 5)
— — 80,066 — — — 80,066 — 80,066 
Stock-based compensation expense— — 12,333 — — — 12,333 — 12,333 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (7,534)— — — (7,533)— (7,533)
Distributions to noncontrolling interests, net— — — — — — — (5,415)(5,415)
Balance, January 31, 2021$465 $ $1,216,489 $8,226 $639,934 $(404,411)$1,460,703 $225,743 $1,686,446 
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— — — — 84,059 — 84,059 7,350 91,409 
Foreign currency translation adjustments— — — (26,209)— — (26,209)(7,511)(33,720)
Change in estimated fair value of hedging instruments, net of tax— — — 8,828 — — 8,828 — 8,828 
Total comprehensive income66,678 (161)66,517 
Stock-based compensation expense— — 12,904 — — — 12,904 — 12,904 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (37,302)— — — (37,301)— (37,301)
Dividends (Note 4)
— — — — (71,338)— (71,338)— (71,338)
Distributions to noncontrolling interests, net— — — — — — — (6,166)(6,166)
Balance, January 31, 2022$467 $ $1,172,595 $10,418 $786,473 $(404,411)$1,565,542 $228,142 $1,793,684 
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)
Six Months Ended January 31,
 20222021
Cash flows from operating activities:
Net income (loss)$91,409 $(7,891)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization123,559 125,291 
Stock-based compensation expense12,904 12,333 
Deferred income taxes, net9,214 (8,779)
Change in estimated fair value of contingent consideration18,780 1,802 
Other non-cash income, net(602)(1,698)
Changes in assets and liabilities:
Trade receivables, net178,252 (9,014)
Inventories, net(23,627)16,151 
Accounts payable and accrued liabilities89,502 111,481 
Deferred revenue147,614 220,846 
Income taxes payable - excess tax benefit from share award exercises(17,018)(1,478)
Income taxes payable - other(7,581)(2,454)
Other assets and liabilities, net(11,077)2,479 
Net cash provided by operating activities611,329 459,069 
Cash flows from investing activities:
Capital expenditures(128,854)(67,338)
Acquisition of business, net of cash acquired(118,099) 
Other investing activities, net21,421 1,608 
Net cash used in investing activities(225,532)(65,730)
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(31,250)(31,250)
Repayments of borrowings under Whistler Credit Agreement(23,145)(22,380)
Repayment of EB-5 Development Notes(51,500) 
Employee taxes paid for share award exercises(37,302)(7,534)
Dividends paid(71,338) 
Other financing activities, net(6,158)(21,693)
Net cash (used in) provided by financing activities(220,693)513,287 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(1,016)3,292 
Net increase in cash, cash equivalents and restricted cash164,088 909,918 
Cash, cash equivalents and restricted cash:
Beginning of period1,258,574 402,086 
End of period$1,422,662 $1,312,004 
Non-cash investing activities:
Accrued capital expenditures$17,388 $12,877 
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:

https://cdn.kscope.io/38868afa70f1787e776459ee27c45271-mtn-20220131_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


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 January 31, 2022 are presented below (in thousands):
January 31, 2022
Carrying ValueEstimated Fair Value
6.25% Notes$600,000 $623,124 
0.0% Convertible Notes$487,824 $576,466 
EPR Secured Notes$134,909 $203,120 
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.

9


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). Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years (the Company’s first quarter of the fiscal year ending July 31, 2022). 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 six months ended January 31, 2022 and 2021 (in thousands):
Three Months Ended January 31,Six Months Ended January 31,
 2022
2021(1)
2022
2021(1)
Mountain net revenue:
Lift$521,582 $430,775 $535,911 $463,866 
Ski School92,072 56,390 93,545 58,434 
Dining54,049 32,227 66,569 35,295 
Retail/Rental126,831 90,126 155,207 112,432 
Other39,841 32,460 92,443 71,430 
Total Mountain net revenue$834,375 $641,978 $943,675 $741,457 
Lodging net revenue:
Owned hotel rooms$13,584 $6,708 $35,067 $14,073 
Managed condominium rooms33,125 20,336 46,209 29,665 
Dining 8,375 2,448 18,650 3,541 
Transportation5,766 2,947 7,559 2,947 
Golf  5,118 3,691 
Other9,269 7,894 21,736 17,266 
70,119 40,333 134,339 71,183 
Payroll cost reimbursements1,861 2,018 3,602 3,221 
Total Lodging net revenue $71,980 $42,351 $137,941 $74,404 
Total Resort net revenue$906,355 $684,329 $1,081,616 $815,861 
Total Real Estate net revenue180 315 495 569 
Total net revenue$906,535 $684,644 $1,082,111 $816,430 
(1) Segment results for the three and six months ended January 31, 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 $611.5 million and $456.5 million as of January 31, 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 $120.6 million and $121.0 million as of January 31, 2022 and July 31, 2021, respectively. For the three and six months ended January 31, 2022, the Company recognized approximately $177.6 million and $223.0 million, respectively, of revenue that was included in the deferred revenue balance as of July 31, 2021. As of January 31, 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 $167.1 million and $345.4 million as of January 31, 2022 and July 31, 2021, respectively.

Costs to Obtain Contracts with Customers
As of January 31, 2022, $11.7 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 generally beginning in the second quarter of fiscal 2022, commensurate with the revenue recognized for related pass products. The Company recorded amortization of $10.0 million and $10.1 million, respectively, for these costs during the three and six months ended January 31, 2022, which was recorded within Mountain and Lodging operating expenses on the Company’s Consolidated Condensed Statement of Operations.

11


4.    Net Income (Loss) per Share
Earnings per Share
Basic EPS excludes dilution and is computed by dividing net income (loss) 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 January 31, 2022 and 2021 (in thousands, except per share amounts):
 Three Months Ended January 31,
 20222021
 BasicDilutedBasicDiluted
Net income per share:
Net income attributable to Vail Resorts$223,391 $223,391 $147,798 $147,798 
Weighted-average Vail Shares outstanding40,505 40,505 40,253 40,253 
Weighted-average Exchangeco Shares outstanding33 33 35 35 
Total Weighted-average shares outstanding40,538 40,538 40,288 40,288 
Effect of dilutive securities— 282 — 521 
Total shares40,538 40,820 40,288 40,809 
Net income per share attributable to Vail Resorts$5.51 $5.47 $3.67 $3.62 

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 zero and 5,000 for the three months ended January 31, 2022 and 2021, respectively.

Presented below is basic and diluted EPS for the six months ended January 31, 2022 and 2021 (in thousands, except per share amounts):
 Six Months Ended January 31,
 20222021
 BasicDilutedBasicDiluted
Net income (loss) per share:
Net income (loss) attributable to Vail Resorts$84,059 $84,059 $(5,968)$(5,968)
Weighted-average Vail Shares outstanding40,460 40,460 40,233 40,233 
Weighted-average Exchangeco Shares outstanding33 33 35 35 
Total Weighted-average shares outstanding40,493 40,493 40,268 40,268 
Effect of dilutive securities— 344 —  
Total shares40,493 40,837 40,268 40,268 
Net income (loss) per share attributable to Vail Resorts$2.08 $2.06 $