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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, 2023
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/aaccdb7228b3c50aedfa2d770dcf1668-vaila07.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 5, 2023, 38,553,666 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, 2023July 31, 2022April 30, 2022
Assets
Current assets:
Cash and cash equivalents$896,089 $1,107,427 $1,401,168 
Restricted cash22,544 18,680 20,795 
Trade receivables, net351,597 383,425 267,111 
Inventories, net103,606 108,723 92,608 
Other current assets108,592 173,277 63,719 
Total current assets1,482,428 1,791,532 1,845,401 
Property, plant and equipment, net (Note 7)
2,370,273 2,118,052 2,143,285 
Real estate held for sale or investment90,078 95,983 95,519 
Goodwill, net (Note 7)
1,694,033 1,754,928 1,752,533 
Intangible assets, net306,519 314,058 315,025 
Operating right-of-use assets199,990 192,070 196,919 
Other assets56,130 51,405 48,612 
Total assets$6,199,451 $6,318,028 $6,397,294 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 7)
$868,369 $942,830 $742,245 
Income taxes payable49,022 104,275 23,891 
Long-term debt due within one year (Note 5)
68,970 63,749 63,736 
Total current liabilities986,361 1,110,854 829,872 
Long-term debt, net (Note 5)
2,773,747 2,670,300 2,687,488 
Operating lease liabilities174,363 174,567 176,970 
Other long-term liabilities264,243 246,359 233,689 
Deferred income taxes, net401,240 268,464 404,095 
Total liabilities4,599,954 4,470,544 4,332,114 
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, 46,797, 46,744 and 46,715 shares issued, respectively
468 467 467 
Exchangeable shares, $0.01 par value, 0, 3 and 31 shares issued and outstanding, respectively (Note 4)
   
Additional paid-in capital1,118,221 1,184,577 1,178,495 
Accumulated other comprehensive (loss) income(42,434)10,923 10,759 
Retained earnings1,080,972 895,889 1,081,510 
Treasury stock, at cost, 8,243, 6,466 and 6,306 shares, respectively (Note 11)
(883,309)(479,417)(441,914)
Total Vail Resorts, Inc. stockholders’ equity1,273,918 1,612,439 1,829,317 
Noncontrolling interests325,579 235,045 235,863 
Total stockholders’ equity 1,599,497 1,847,484 2,065,180 
Total liabilities and stockholders’ equity$6,199,451 $6,318,028 $6,397,294 
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,
 2023202220232022
Net revenue:
Mountain and Lodging services and other$1,054,134 $1,020,544 $2,166,357 $1,912,704 
Mountain and Lodging retail and dining 184,142 155,992 445,272 345,448 
Resort net revenue1,238,276 1,176,536 2,611,629 2,258,152 
Real Estate155129 7,967 624 
Total net revenue1,238,431 1,176,665 2,619,596 2,258,776 
Operating expense (exclusive of depreciation and amortization shown separately below):
Mountain and Lodging operating expense462,613 417,422 1,212,115 965,483 
Mountain and Lodging retail and dining cost of products sold63,575 57,174 174,091 135,118 
General and administrative88,860 91,764 304,275 260,259 
Resort operating expense615,048 566,360 1,690,481 1,360,860 
Real Estate operating expense1,679 1,609 9,371 4,590 
Total segment operating expense616,727 567,969 1,699,852 1,365,450 
Other operating (expense) income:
Depreciation and amortization(69,097)(65,655)(199,700)(189,214)
Gain on sale of real property88 189 845 1,151 
Change in estimated fair value of contingent consideration (Note 8)
(45,900)(2,800)(47,636)(21,580)
(Loss) gain on disposal of fixed assets and other, net(6,269)(51)(8,055)16,163 
Income from operations500,526 540,379 665,198 699,846 
Mountain equity investment income, net94 363 482 2,695 
Investment income and other, net7,740 224 17,734 980 
Foreign currency loss on intercompany loans (Note 5)
(1,766)(1,040)(5,563)(3,079)
Interest expense, net(39,139)(35,132)(112,811)(112,043)
Income before provision for income taxes467,455 504,794 565,040 588,399 
Provision for income taxes(124,289)(118,211)(145,315)(110,407)
Net income343,166 386,583 419,725 477,992 
Net income attributable to noncontrolling interests(18,160)(14,033)(23,011)(21,383)
Net income attributable to Vail Resorts, Inc.$325,006 $372,550 $396,714 $456,609 
Per share amounts (Note 4):
Basic net income per share attributable to Vail Resorts, Inc.$8.20 $9.18 $9.90 $11.27 
Diluted net income per share attributable to Vail Resorts, Inc.$8.18 $9.16 $9.87 $11.20 
Cash dividends declared per share$2.06 $1.91 $5.88 $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,
 2023202220232022
Net income$343,166 $386,583 $419,725 $477,992 
Foreign currency translation adjustments(36,633)(15,199)(71,973)(48,919)
Change in estimated fair value of hedging instruments, net of tax(1,920)10,764 3,300 19,592 
Comprehensive income304,613 382,148 351,052 448,665 
Comprehensive income attributable to noncontrolling interests(13,476)(9,257)(7,695)(9,096)
Comprehensive income attributable to Vail Resorts, Inc.$291,137 $372,891 $343,357 $439,569 
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 Income (Loss)Retained EarningsTreasury StockTotal Vail Resorts, Inc. Stockholders’ EquityNoncontrolling InterestsTotal Stockholders’ Equity
Vail ResortsExchangeable
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)
Repurchases 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 
Balance, January 31, 2023$468 $ $1,112,519 $(8,565)$837,573 $(479,417)$1,462,578 $314,773 $1,777,351 
Comprehensive income:
Net income— — — — 325,006 — 325,006 18,160 343,166 
Foreign currency translation adjustments— — — (31,949)— — (31,949)(4,684)(36,633)
Change in estimated fair value of hedging instruments, net of tax— — — (1,920)— — (1,920)— (1,920)
Total comprehensive income291,137 13,476 304,613 
Stock-based compensation expense— — 5,873 — — — 5,873 — 5,873 
Issuance of shares under share award plans, net of shares withheld for employee taxes — (171)— — — (171)— (171)
Repurchases of common stock (Note 11)
— — — — — (403,892)(403,892)— (403,892)
Dividends (Note 4)
— — — — (81,607)— (81,607)— (81,607)
Distributions to noncontrolling interests, net— — — — — — — (2,670)(2,670)
Balance, April 30, 2023$468 $ $1,118,221 $(42,434)$1,080,972 $(883,309)$1,273,918 $325,579 $1,599,497 


5



Common StockAdditional Paid in CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsTreasury StockTotal Vail Resorts, Inc. Stockholders’ EquityNoncontrolling InterestsTotal Stockholders’ Equity
Vail ResortsExchangeable
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)
Repurchases 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 
Balance, July 31, 2022$467 $ $1,184,577 $10,923 $895,889 $(479,417)$1,612,439 $235,045 $1,847,484 
Comprehensive income:
Net income— — — — 396,714 — 396,714 23,011 419,725 
Foreign currency translation adjustments— — — (56,657)— — (56,657)(15,316)(71,973)
Change in estimated fair value of hedging instruments, net of tax— — — 3,300 — — 3,300 — 3,300 
Total comprehensive income343,357 7,695 351,052 
Stock-based compensation expense— — 19,062 — — — 19,062 — 19,062 
Issuance of shares under share award plans, net of shares withheld for employee taxes1 — (5,352)— — — (5,351)— (5,351)
Repurchases of common stock (Note 11)
— — — — — (403,892)(403,892)— (403,892)
Dividends (Note 4)
— — — — (235,654)— (235,654)— (235,654)
Cumulative effect of adoption of ASU 2020-06 (Notes 2 & 5)
— — (80,066)— 24,023 — (56,043)— (56,043)
Estimated acquisition date fair value of noncontrolling interests (Note 6)
— — — — — — — 91,524 91,524 
Distributions to noncontrolling interests, net— — — — — — — (8,685)(8,685)
Balance, April 30, 2023$468 $ $1,118,221 $(42,434)$1,080,972 $(883,309)$1,273,918 $325,579 $1,599,497 
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,
 20232022
Cash flows from operating activities:
Net income$419,725 $477,992 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization199,700 189,214 
Stock-based compensation expense19,062 18,933 
Deferred income taxes, net143,748 127,449 
Change in estimated fair value of contingent consideration47,636 21,580 
Other non-cash income, net(4,703)(9,368)
Changes in assets and liabilities:
Trade receivables, net32,665 77,226 
Inventories, net4,850 (11,883)
Accounts payable and accrued liabilities(2,183)46,046 
Deferred revenue(62,017)(137,355)
Income taxes payable(63,551)(7,799)
Other assets and liabilities, net(8,049)(19,051)
Net cash provided by operating activities726,883 772,984 
Cash flows from investing activities:
Capital expenditures(261,259)(161,842)
Return of deposit for acquisition of business114,506  
Acquisition of businesses, net of cash acquired(38,567)(116,337)
Investments in short-term deposits(86,756) 
Maturity of short-term deposits37,978  
Other investing activities, net12,838 22,614 
Net cash used in investing activities(221,260)(255,565)
Cash flows from financing activities:
Repayments of borrowings under Vail Holdings Credit Agreement(46,875)(46,875)
Repayments of borrowings under Whistler Credit Agreement (23,145)
Repayment of EB-5 Development Notes (51,500)
Employee taxes paid for share award exercises(5,352)(37,431)
Dividends paid(235,654)(148,851)
Repurchases of common stock(400,000)(37,503)
Other financing activities, net(15,295)(7,348)
Net cash used in financing activities(703,176)(352,653)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(9,921)(1,377)
Net (decrease) increase in cash, cash equivalents and restricted cash(207,474)163,389 
Cash, cash equivalents and restricted cash:
Beginning of period1,126,107 1,258,574 
End of period$918,633 $1,421,963 
Non-cash investing activities:
Accrued capital expenditures$20,099 $13,090 
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 41 destination mountain resorts and regional ski areas:

https://cdn.kscope.io/aaccdb7228b3c50aedfa2d770dcf1668-Screenshot 2022-09-09 134820.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”) concessioner 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.
8


The Company’s mountain business and its lodging properties at or around the Company’s mountain resorts are seasonal in nature, and typically experience their peak operating seasons primarily from mid-December through mid-April in North America and Europe. The peak operating season at the Company’s Australian resorts, NPS concessioner properties and golf courses generally occurs from June to early October.

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, 2022. 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, 2022 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 recorded amount of the Company’s NRP Loan (as defined in Note 5, Long-Term Debt), which was assumed by the Company during the nine months ended April 30, 2023 approximates fair value as the debt obligation was recorded at estimated fair value in conjunction with the preliminary purchase accounting for the Andermatt-Sedrun acquisition (see Note 6, Acquisitions). 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, 2023 are presented below (in thousands):
April 30, 2023
Carrying ValueEstimated Fair Value
6.25% Notes$600,000 $605,520 
0.0% Convertible Notes$575,000 $519,536 
EPR Secured Notes$132,904 $171,442 
Recently Issued Accounting Standards
Adopted Standards
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 of ASU 2020-04 were effective as of March 12, 2020. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which extended the effective date of the provisions of ASU 2020-04 to December 31, 2024. The amendments in this update may be applied as of any date from the beginning of an interim period that includes or
9


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 party to various interest rate swap agreements that hedge the variable interest rate component of underlying cash flows of $400.0 million in principal amount of its Vail Holdings Credit Agreement (as defined in Note 5, Long-Term Debt), which are designated as cash flow hedges. During the nine months ended April 30, 2023, the Company entered into an amendment to its Vail Holdings Credit Agreement (the “Fifth Amendment”) to modify the calculation of interest under the Vail Holdings Credit Agreement from being calculated based on LIBOR to being calculated based on SOFR (see Note 5, Long-Term Debt, for additional information). Subsequent to the Fifth Amendment, the interest rate swaps were also amended to transition from a hedge of LIBOR-based cash flows to a hedge of SOFR-based cash flows. The Company elected certain optional expedients provided by Topic 848, which allowed the Company to not apply certain modification accounting requirements or reassess the previous accounting designation of the interest rate swap agreements as cash flow hedges.
In August 2020, the FASB issued ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” which simplifies the accounting related to certain convertible debt instruments. The guidance removes certain rules which required separation of the embedded conversion features from the host contract for convertible instruments. The updated guidance requires bifurcation only if the convertible debt feature qualifies as a derivative under ASC 815, “Derivatives and Hedging”, or for convertible debt issued at a substantial premium. The guidance also amends 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. This standard is 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 adopted ASU 2020-06 on August 1, 2022 using the modified retrospective method, and therefore prior period financial information has not been retrospectively adjusted and continues to be reported under the accounting standards in effect for those periods.
Upon adoption of the standard, the Company reclassified the previously bifurcated equity component of its 0.0% Convertible Notes (as defined in Note 5, Long-Term Debt) to long-term debt, net, as the convertible option on the 0.0% Convertible Notes does not qualify as a derivatives under ASC 815 nor were the 0.0% Convertible Notes issued at a substantial premium. This reclassification was partially offset by an increase to retained earnings to reverse the previously recognized non-cash interest expense, net of tax that had been recorded as a result of amortization of the previously recorded debt discount. The adoption of this new guidance eliminates the recognition of non-cash interest expense in future periods due to the elimination of the debt discount associated with the 0.0% Convertible Notes.
The impact of adoption of ASU 2020-06 on the Consolidated Condensed Balance Sheet as of the adoption date was as follows (in thousands):
As of August 1, 2022
Balance SheetBalances without the Adoption of ASU 2020-06AdjustmentsBalances with the adoption of ASU 2020-06
Liabilities
Long-term debt, net$2,670,300 $74,822 $2,745,122 
Deferred income taxes, net$268,464 $(18,779)$249,685 
Stockholders’ equity
Additional paid-in capital$1,184,577 $(80,066)$1,104,511 
Retained earnings$895,889 $24,023 $919,912 
ASU 2020-06 also prohibits the use of the treasury stock method for convertible instruments for the purposes of calculating diluted earnings per share (“EPS”) and instead requires application of the if-converted method. Under the if-converted method, diluted EPS will generally be calculated assuming that all of the convertible debt instruments were converted solely into shares of common stock at the beginning of the reporting period unless the result would be anti-dilutive. Pursuant to the terms of the 0.0% Convertible Notes, the principal amount of the 0.0% Convertible Notes is required to be paid in cash and only the premium due upon conversion, if any, is permitted to be settled in shares, cash or a combination of shares and cash. Consequently, for the Company the if-converted method would produce a similar result as the treasury stock method, which was utilized for the calculation of diluted EPS prior to the adoption of ASU 2020-06 for the 0.0% Convertible Notes.

10


3.     Revenues
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, 2023 and 2022 (in thousands):
Three Months Ended April 30,Nine Months Ended April 30,
 2023202220232022
Mountain net revenue:
Lift$710,052 $714,708 $1,362,195 $1,250,619 
Ski School145,134 120,897 277,512 214,442 
Dining101,683 79,826 206,953 146,395 
Retail/Rental135,008 126,497 335,284 281,704 
Other52,853 42,707 177,945 135,150 
Total Mountain net revenue$1,144,730 $1,084,635 $2,359,889 $2,028,310 
Lodging net revenue:
Owned hotel rooms$15,091 $18,295 $52,135 $53,362 
Managed condominium rooms38,409 37,494 82,604 83,703 
Dining 15,422 14,646 45,435 33,296 
Transportation6,924 6,862 14,272 14,421 
Golf  6,072 5,138 
Other12,380 9,925 37,235 31,641 
88,226 87,222 237,753 221,561 
Payroll cost reimbursements5,320 4,679 13,987 8,281 
Total Lodging net revenue $93,546 $91,901 $251,740 $229,842 
Total Resort net revenue$1,238,276 $1,176,536 $2,611,629 $2,258,152 
Total Real Estate net revenue155 129 7,967 624 
Total net revenue$1,238,431 $1,176,665 $