NOTICE OF THE 2023 ANNUAL MEETING OF STOCKHOLDERS
PROXY STATEMENT
2023 ANNUAL REPORT ON FORM 10-K
TABLE OF CONTENTS
Page
Page
Our Company
Proxy Summary
Proposal 1. Election of Officers
Information with Respect to Nominees
Management
Security Ownership of Directors and Executive
Officers
Information as to Certain Stockholders
Corporate Governance
Corporate Governance Guidelines
Board Leadership and Lead Independent Director
Meetings of the Board
Executive Sessions
Director Nominations
Determinations Regarding Independence
Communications with the Board
Code of Ethics and Business Conduct
Risk Management
Sustainability Efforts
Compensation Risk Assessment
Committees of the Board
The Audit Committee
Audit Committee Report
The Compensation Committee
Compensation Committee Report
The Nominating & Governance Committee
The Executive Committee
Director Compensation
Director Compensation for Fiscal 2023
Director Cash Compensation
Director Equity Compensation
Limited Director Perquisites and Personal Benefits
Stock Ownership Guidelines for Non-Employee
Directors
Delinquent Section 16(a) Reports
Transactions with Related Persons
Related Party Transactions Policy and Procedures
Executive Compensation
1
2
8
8
19
20
21
22
22
22
23
23
23
23
23
23
24
24
24
24
25
25
27
28
29
29
30
30
31
31
31
32
32
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32
33
Compensation Discussion and Analysis
Leadership Transitions
Company Performance Highlights
Executive Summary of our Compensation Program
Key Objectives of Our Executive Compensation
Program
Compensation Decision Process
Elements of Compensation
2023 Compensation Decisions
Other Executive Compensation Policies and
Practices
Summary Compensation Table for Fiscal 2023
Grants of Plan-Based Awards in Fiscal 2023
Employment Agreements
Outstanding Equity Awards at Fiscal 2023 Year-
End
Option Exercises and Stock Vested in Fiscal 2023
Pension Benefits
Nonqualified Deferred Compensation for Fiscal
2023
Potential Payments Upon Termination or Change-
In-Control
Securities Authorized for Issuance Under Equity
Compensation Plans
Pay Ratio Disclosure
Pay Versus Performance Disclosure
Proposal 2. Ratification of the Selection of
Independent Registered Public Accounting Firm
Selection of Independent Registered Public
Accounting Firm
Fees Billed to Vail Resorts by PricewaterhouseCoopers
LLP during Fiscal 2023 and Fiscal 2022
Proposal 3. Advisory Vote to Approve Executive
Compensation
Proposal 4. Advisory Vote on the Frequency
of Future Advisory Votes on Executive
Compensation
The Annual Meeting and Voting – Questions
and Answers
Stockholder Proposals for 2024 Annual Meeting
Householding of Proxy Materials
Other Matters
Appendix A
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Who We Are
We are the premier mountain resort company in the world and a leader in luxury, destination-based travel at iconic locations. We
operate world-class destination mountain resorts, and regional ski areas, including Vail Mountain, Breckenridge, Park City Mountain,
Whistler Blackcomb, Stowe, and 32 additional resorts across North America; Andermatt-Sedrun in Switzerland; and Perisher, Hotham,
and Falls Creek in Australia. We are passionate about providing an Experience of a Lifetime to our team members and guests, and our
EpicPromise is to reach a zero net operating footprint by 2030, support our employees and communities, and broaden engagement in
our sport. Our company owns and/or manages a collection of elegant hotels under the RockResorts brand, a portfolio of vacation rentals,
condominiums and branded hotels located in close proximity to our mountain destinations, as well as the Grand Teton Lodge Company
in Jackson Hole, Wyoming. Vail Resorts Retail operates more than 250 retail and rental locations across North America.
What We Believe
Everything we do needs to be aligned with our five stakeholders:
• Our Guests
• Our Employees
• Our Communities
• Our Natural Environment
• Our Shareholders
Our Mission: Experience of a Lifetime
At Vail Resorts, our mission is simple – to provide an Experience of a Lifetime. We do this by creating an Experience of a Lifetime
for our employees, so they can, in turn, provide an Experience of a Lifetime for our guests.
Our Core Values
As Vail Resorts employees, we hold ourselves accountable for living these foundational values every day in everything we do:
Serve Others
Lead with service to create Experiences of a Lifetime for one another and our guests.
Do Right
Act with integrity – always do the right thing, knowing it leads to the right outcome.
Be Inclusive
Welcome everyone to our Company, resorts and communities—include all races,
gender identities, sexual orientations, abilities, and the many qualities that make each of
us unique.
Drive Value
Fuel business growth and guest loyalty through guest experience and continued innovation.
Do Good
Preserve our natural environments and contribute to the success of our local communities.
Be Safe
Be committed to the safety and wellness of our employees and guests.
Have Fun
Fun is our product – create fun, enjoy your work and share the contagious spirit.
PROXY SUMMARY
This summary contains highlights about our Company and the 2023 Annual Meeting of Stockholders. This summary does not
contain all of the information that you should consider in advance of the annual meeting, and we encourage you to read the entire Proxy
Statement and our 2023 Annual Report on Form 10-K filed with the SEC on September 28, 2023 (the “Annual Report”) carefully before
voting. Page references are provided to help you find further information in this Proxy Statement. For information concerning the
annual meeting and voting on the proposals discussed in more detail in this Proxy Statement, please see “The Annual Meeting and
Voting – Questions and Answers” beginning on page 73.
Corporate Governance Highlights (page 22)
We believe good governance is integral to achieving long-term stockholder value. We are committed to governance policies and
practices that serve the interests of the Company and its stockholders. The Board of Directors (the “Board”) monitors developments in
governance best practices to assure that it continues to meet its commitment to thoughtful and independent representation of stockholder
interests. Highlights of our corporate governance include:
• All of our director nominees are independent, except for Mr. Katz and Ms. Lynch;
• All of our Audit, Compensation, and Nominating & Governance Committee members are independent;
• An independent non-executive lead director;
• Annual election of all directors;
• Majority voting standard and a director resignation policy in uncontested director elections;
• Executive sessions of independent directors held at regularly scheduled Board meetings;
• Meaningful stock ownership guidelines;
• Excellent track record of attendance by our directors at Board and committee meetings in fiscal 2023;
• Anti-hedging policy for all directors and executive officers; and
• Clawback policy applicable to executive officers for both cash and equity-based awards.
Environmental, Social & Governance Highlights
Vail Resorts is committed to creating long-term value for our business and our stakeholders through environmental, social, and
governance (“ESG”) practices that drive environmentally, socially, and ethically sustainable behavior and promote the wellbeing of our
employees, guests, and communities. Highlights of our ESG commitments include:
2
Community Impact. Vail Resorts is committed to helping our
communities thrive by partnering with critical non-profit
organizations in the communities in which we operate to make
an impact. In fiscal year 2023, Vail Resorts donated
approximately $28.1 million to our non-profit partners. Also in
fiscal year 2023, Vail Resorts’ Epic for Everyone youth access
program hosted more than 11,000 youth who otherwise might
not have had access to skiing and riding across its North
American
information, please visit
epicpromise.com.
resorts. For more
Mountain Safety. Our value of “Be Safe” and the health,
safety, and security of our employees and guests are
fundamental to our operations. All employees are trained on
working safely and are accountable for promoting a safe
environment. As part of our “safety first” culture, we have a
dedicated health and safety team that supports our resort
operations, as well as highly trained ski patrol professionals on
staff at each resort.
Diversity, Equity & Inclusion (“DEI”). We believe that DEI
is core to both our Company’s success and the growth of the ski
industry. One of our core values is “Be Inclusive,” which means
that we welcome everyone to our Company, resorts, and
communities, including all races, gender identities, sexual
orientations, abilities, and other differences. One of our core
leadership competencies is “Elevate,” which requires leaders to
be self-aware of their own inclusive behavior in order to
intentionally build diverse representation, bring equity to our
business practices, and create inclusive communities in which
all people can thrive.
Company Culture. Core to our mission is to create an
Experience of a Lifetime for our employees, so they in turn can
provide an Experience of a Lifetime for our guests. We have a
values-based leadership culture that places a premium on leader
transparency, vulnerability, and authenticity. In 2016, we
launched our nonprofit organization, the EpicPromise Employee
the EpicPromise Employee
Foundation. In fiscal 2023,
Foundation contributed approximately $1.1 million
to
employees and their dependents through our unplanned hardship
and scholarship programs.
3
Commitment to Zero. Vail Resorts remains on track to
achieve our sustainability goal of achieving a zero net operating
footprint by 2030. For more detail regarding our progress
toward reaching our commitment to zero net emissions, zero
waste to landfill, and zero net operating impact on forests and
habitat, please see our EpicPromise Progress Report at
epicpromise.com.
Corporate Governance. We believe that good governance is
integral to achieving long-term value for our stakeholders. Our
Board of Directors ensures that we are leading with the best
governance practices to serve the interests of our Company and
our stockholders, including receiving feedback from our
stockholders.
Talent Development. We are passionate about developing our
talent and building the best teams. We offer a variety of
leadership development programs for everyone from our entry-
level seasonal employees to our most senior executives.
Investment in Employees. The experience of our employees
and guests is the core of our business model. During fiscal 2023,
we increased our minimum wage for North American employees
to $20 per hour and to $21 per hour for technical roles such as
patrol, maintenance, and certified commercial vehicle drivers, to
make frontline talent a strategic advantage. We also announced
a substantial investment in our human resource department to
support more normalized staffing and operations at our resorts,
as well as significant investments in affordable housing in our
communities.
Director Nominees (page 8)
The following table provides summary information about each director nominee. Each director stands for election annually. Detailed
information about each director nominee’s background, skill set, and areas of experience can be found beginning on page 8.
Committee
Memberships
Independent
Audit
Comp N&G
Exec
Primary Occupation and
Experience
CEO and Co-Founder of Raftr
and Principal of Deck3
Ventures LLC
Executive Chairperson of the
Board and former CEO of Vail
Resorts, Inc.
CEO of Vail Resorts, Inc.
Operating Chairman, WNBA
Chicago Sky
Former CEO of Allegiant
Travel Company
Co-Founder and Executive
Chairman of Clearco
Strategic Advisor to the Board
of Directors of Shutterfly, LLC.
Director
Nominee
Susan L.
Decker
Director
Since
2015
Robert A. Katz 1996
Kirsten A.
Lynch
Nadia
Rawlinson
John T.
Redmond
Michele
Romanow
Hilary A.
Schneider
D. Bruce
Sewell♦
2021
2019
2008
2016
2010
2013
Yes
No
No
Yes
Yes
F
Yes
Yes
Former SVP, General Counsel
& Secretary of Apple Inc.
Yes
F
John F. Sorte
1993
Executive Chairman of Morgan
Joseph TriArtisan Group, Inc.
Peter A.
Vaughn
2013
Fiscal 2023 Meetings:
Audit – Audit Committee
Comp – Compensation Committee
Founder and Managing
Director of Vaughn Advisory
Group, LLC
Yes
Yes
Chair
F
X
4
Exec – Executive Committee
F – Audit Committee Financial Expert
4
X
Chair
X
X
X
3
X
X
Chair
X
X
X
2
X
0
N&G – Nominating & Governance Committee
♦ – Lead Independent Director
The Board of Directors held four meetings during fiscal 2023. Each of the director nominees who were directors during fiscal 2023
attended 100% of the meetings held by the Board and Board committees on which he or she served during the fiscal year.
Board Composition
Our ten director nominees have an effective mix of skills, experience, background, and diversity of perspective. The below graphs
quantify these aspects of our various board members.
5
Executive Compensation Highlights (page 33)
Under our executive compensation program, a significant portion of the CEO’s (approximately 85%) and other named executive
officers’ (approximately 67%) annual target total direct compensation is variable based upon our operating performance and/or our stock
price, as shown below:
CEO Fiscal 2023 Total Target Direct
Compensation
Other NEO Fiscal 2023 Total Target
Direct
Compensation (1)
15.4%
15.4%
Base
Salary
Target
Annual
Incentive
Long-
Term
Equity
Incentive
32.9%
55.9%
11.2%
Base
Salary
Target
Annual
Incentive
Long-
Term
Equity
Incentive
69.2%
(1) Excludes compensation for Mr. Barkin and Mr. O’Donnell.
In addition, for fiscal 2023, we engaged in (or refrained from) certain pay practices with respect to our named executive officer
compensation program that we believe align with market best practices:
Annual Advisory Vote to Approve Executive Compensation
Independent Compensation Committee
Significant Portion of Executive Compensation Tied to Performance
Significant Portion of Executive Compensation Delivered in the Form of Long-Term Equity-Based Incentives
Market Alignment of Compensation but with Greater Emphasis on At- Risk Compensation
What We Do:
Independent Compensation Consultant
Clawback Policy
Stock Ownership Guidelines
Use of Tally Sheets
Annual Risk Assessment
What We Don’t Do:
☒
☒
☒
☒
☒
☒
☒
☒
No Excessive Perquisites
No Tax Gross-Ups on Perquisites, Except for Standard Relocation Benefits
No Excise Tax Gross-Ups
No Automatic Salary Increases or Guaranteed Bonuses
No “Single Trigger” Automatic Payments, Benefits, or Equity Vesting Upon a Change in Control
No Hedging or Pledging
No Equity Repricing
No Pension Plans or SERPs
VOTING MATTERS AND BOARD RECOMMENDATION
The following table summarizes the proposals to be considered at the annual meeting and the Board’s voting recommendation with
respect to each proposal.
6
Management Proposals
Election of the ten directors named in this Proxy Statement, each for a one-year term
expiring in 2024
Ratification of PricewaterhouseCoopers LLP as independent registered public accounting
firm for fiscal 2024
Advisory vote to approve executive compensation
Advisory vote on the frequency of future advisory votes on executive compensation
Board Vote
Recommendation
FOR EACH
NOMINEE
FOR
FOR
EVERY ONE
YEAR
Page
Reference
8
70
71
72
Election of Directors (Proposal No. 1)
We are asking stockholders to elect each of our nominees for the Board of Directors named in this proxy statement. Our nominees are:
Susan L. Decker, Robert A. Katz, Kirsten A. Lynch, Nadia Rawlinson, John T. Redmond, Michele Romanow, Hilary A. Schneider, D.
Bruce Sewell, John F. Sorte, and Peter A. Vaughn. If elected, each director nominee will serve as a director for a one-year term that
expires in 2024.
Ratification of PricewaterhouseCoopers LLP as Independent Auditor (Proposal No. 2)
We are asking stockholders to ratify the appointment of PricewaterhouseCoopers LLP as independent registered public accounting firm
for fiscal 2024. The Audit Committee has selected, and the Board of Directors has ratified the selection of, PricewaterhouseCoopers
LLP to serve as our independent registered public accounting firm for fiscal 2024. Set forth below is information about its fees in fiscal
2023 and fiscal 2022.
Type of fees
Audit fees
Tax fees
Other fees
Total
2023
$3,945,000
$190,000
$2,000
2022
$3,491,000
$217,800
$2,000
$4,137,000 $3,710,800
Advisory Vote to Approve Executive Compensation (Proposal No. 3)
We are asking stockholders to cast an advisory, non-binding vote to approve compensation awarded to our named executive officers.
The primary objective of our executive compensation program is to emphasize pay-for-performance by incentivizing our executive
officers and senior management to drive superior results and generate stockholder value. Additional information regarding our executive
compensation may be found elsewhere in this Proxy Statement.
Advisory Vote on the Frequency of Future Advisory Votes on Executive Compensation (Proposal No. 4)
We are asking stockholders to indicate their preference as to whether future advisory votes on executive compensation should occur
every year, every two years, or every three years. Currently, advisory votes on executive compensation are held every year.
MEETING INFORMATION
Date and time:
December 6, 2023, 9:00 a.m. Mountain Time
Website:
www.virtualshareholdermeeting.com/MTN2023
Record date:
October 10, 2023
Voting:
Stockholders at the close of business on the record date may vote at the Annual Meeting of Stockholders. Each
share is entitled to one vote on each matter to be voted upon.
7
390 Interlocken Crescent
Broomfield, Colorado 80021
PROXY STATEMENT FOR THE 2023
ANNUAL MEETING OF STOCKHOLDERS
We are providing these proxy materials in connection with the solicitation of proxies by the Board of Directors (the “Board”) of
Vail Resorts, Inc. (“we,” “us,” “Vail Resorts,” or the “Company”) to be voted at our annual meeting, which will take place on
Wednesday, December 6, 2023 at 9:00 a.m., Mountain Time, via a live virtual stockholder meeting, and at any adjournment or
postponement thereof. As a stockholder, you are invited to attend the annual meeting and are requested to vote on the items of business
described in this Proxy Statement.
In accordance with the “notice and access” rules and regulations of the SEC, instead of mailing a printed copy of our proxy materials
to each stockholder of record or beneficial owner, we are furnishing proxy materials, which include our Proxy Statement and annual
report, to our stockholders over the Internet. Because you received a Notice of Internet Availability of Proxy Materials by mail, you will
not receive a printed copy of the proxy materials, unless you have previously made a permanent election to receive these materials in
hard copy or unless you request a printed copy as described below. Instead, the Notice of Internet Availability of Proxy Materials will
instruct you as to how you may access and review all of the important information contained in the proxy materials. The Notice of
Internet Availability of Proxy Materials also instructs you as to how you may submit your proxy. If you received a Notice of Internet
Availability of Proxy Materials by mail and would like to receive a printed copy of our proxy materials, you should follow the
instructions for requesting such materials included in the Notice of Internet Availability of Proxy Materials.
It is anticipated that the Notice of Internet Availability of Proxy Materials will be mailed, and this Proxy Statement will be made
available, to stockholders on or about October 26, 2023.
PROPOSAL 1. ELECTION OF DIRECTORS
At the annual meeting, ten directors will be nominated for election to the Board to serve for the next year and until their respective
successors are elected and qualified. The nominees are Mses. Decker, Lynch, Rawlinson, Romanow, and Schneider and Messrs. Katz,
Redmond, Sewell, Sorte, and Vaughn. Each of the nominees is currently a director of the Company and all nominees were previously
elected by stockholders.
The persons named as proxies in the accompanying proxy, who have been designated by the Board, intend to vote, unless otherwise
instructed in such proxy, “FOR” the election of Mses. Decker, Lynch, Rawlinson, Romanow, and Schneider and Messrs. Katz,
Redmond, Sewell, Sorte, and Vaughn as directors. If any nominee becomes unavailable for election as a result of an unexpected
occurrence, your shares will be voted for the election of a substitute nominee, if any, proposed by the Board. Each person nominated for
election has agreed to serve if elected. Our Board has no reason to believe that any nominee will be unable to serve. The proxies solicited
by this proxy statement may not be voted for more than ten nominees.
INFORMATION WITH RESPECT TO NOMINEES
The Nominating & Governance Committee monitors the mix of skills, knowledge, perspective, leadership, age, experience, and
diversity among directors in order to assure that the Board has the ability to perform its oversight function effectively. The Nominating
& Governance Committee has determined that the Board will be comprised of individuals who meet the highest possible personal and
professional standards. Our director nominees should have broad experience in management, policymaking and/or finance, relevant
industry knowledge, business creativity and vision. They should also be committed to enhancing stockholder value and should be able
to dedicate sufficient time to effectively carry out their duties.
The Nominating & Governance Committee considers many factors when determining the eligibility of candidates for nomination
as director. The Nominating & Governance Committee does not have a formal diversity policy; however, in connection with the annual
nomination process, the Nominating & Governance Committee considers the diversity of candidates to ensure that the Board is
comprised of individuals with a broad range of experiences and backgrounds who can contribute to the Board’s overall effectiveness in
carrying out its responsibilities. The Nominating & Governance Committee assesses the effectiveness of its efforts at achieving a diverse
Board when it annually evaluates the Board’s composition.
8
The Nominating & Governance Committee considers the following specific characteristics in making its nominations for our Board:
independence, wisdom, integrity, understanding and general acceptance of the Company’s corporate philosophy, business or
professional knowledge and experience that can bear on the Company’s and the Board’s challenges and deliberations, proven record of
accomplishment with excellent organizations, inquiring mind, willingness to speak one’s mind, ability to challenge and stimulate
management, future orientation, willingness to commit time and energy, diversity and international/global experience.
At the Annual Meeting, director nominees will stand for election for one-year terms, expiring at the 2024 Annual Meeting of
Stockholders. The following sets forth the name and age of each director, identifies whether the director is currently a member of the
Board, lists all other positions and offices, if any, now held by him or her with the Company, and specifies his or her principal occupation
during at least the last five years.
Director Nominee
SUSAN L. DECKER
Age – 60
CEO & Co-Founder,
Raftr
Director Since
September 2015
Independent
Committees:
Compensation
Current Public Directorships:
Berkshire Hathaway, Inc.
Costco Wholesale Corporation
Business Experience, Other Directorships and Qualifications
Ms. Decker is CEO and co-founder of Raftr, a college campus social platform which was
launched in 2017. In addition, Ms. Decker is the principal of Deck3 Ventures LLC, a
privately held consulting and advisory firm, a position she has held since 2009. Ms.
Decker currently serves on the boards of directors of Berkshire Hathaway Inc. and Costco
Wholesale Corporation and of private corporations Automattic, Chime Financial, and Vox
Media, Inc. She previously served on the board of directors of Intel Corporation, Pixar,
InterPrivate II Acquisition Corp., and Momentive Inc. (formerly SurveyMonkey). During
the 2009 - 2010 academic year, Ms. Decker served as Entrepreneur-in-Residence at
Harvard Business School. Prior to that, from June 2000 to April 2009, she held various
executive management positions at Yahoo! Inc., a global Internet brand, including
President (June 2007 to April 2009), head of the Advertiser and Publisher Group
(December 2006 to June 2007) and Chief Financial Officer (June 2000 to June 2007).
Prior to joining Yahoo!, she spent 14 years with Donaldson, Lufkin & Jenrette (DLJ),
most recently as Managing Director, global equity research (1998 - 2000), and previously
as an equity research analyst, covering publishing and advertising stocks from 1986 to
1998.
Key Skills and Qualifications:
• Leadership and Finance experience—former lead director of an international
manufacturer of microprocessors and chipsets (Intel); current principal of
corporate advisory firm (Deck3); former president and CFO of large public
global technology company (Yahoo!); former entrepreneur-in-residence for
leading business school (Harvard); former global director of equity research for
an investment bank (DLJ)
• Technology and International experience—director of a large, diverse
multinational conglomerate (Berkshire); director of a financial technology and
mobile banking company (Chime); director of a leading global retailer (Costco);
former director of an international manufacturer of microprocessors and chipsets
company (Intel); leadership positions at large public global technology company
(Yahoo!); former director of global equity research for an investment bank
(DLJ); former director of a cloud-based software as a service (SaaS) company
(Momentive); CEO & co-founder of a digital media product (Raftr)
9
Director Nominee
ROBERT A. KATZ
Age – 56
Executive Chairperson of the
Board,
Vail Resorts, Inc.,
Since November 2021
Chairperson of the Board,
Vail Resorts, Inc.,
From March 2009 to November
2021
Director Since
June 1996
Committees:
Executive
Business Experience, Other Directorships and Qualifications
Mr. Katz is the Executive Chairperson of the Board of Vail Resorts. Mr. Katz served as
Chairperson from March 2009 until November 2021, at which point he was appointed as
Executive Chairperson. He previously served as Lead Director from June 2003 until his
appointment as Chief Executive Officer in February 2006. Mr. Katz served as Chief
Executive Officer until November 2021. Mr. Katz has served on the Board of Directors
of Vail Resorts since 1996 and has been involved with the Company since 1991. Prior to
becoming the Chief Executive Officer, he was associated with Apollo Management L.P.,
a private equity investment firm, since its founding in 1990. Mr. Katz and his wife are the
founders and board members of the Katz Amsterdam Foundation, which works to address
systemic injustice and racial and social disparities in mental health, reproductive health,
and civic engagement. Mr. Katz currently serves on the Wharton Leadership Advisory
Board and he has previously served on numerous private, public and non-profit boards.
Key Skills and Qualifications:
• Leadership, Industry and Marketing experience—professional association
with Vail Resorts began in 1991 and has been involved with all major strategic
decisions for over three decades; CEO from February 2006 to November 2021
with unique insight and information regarding the Company’s strategy,
operations and business, and experience with global branding, development, and
strategy, as well a unique historical perspective into the operations and vision for
the Company (Vail Resorts)
• Finance experience—former CEO of large public company (Vail Resorts);
former senior partner at large private equity investment firm (Apollo)
10
Director Nominee
Business Experience, Other Directorships and Qualifications
KIRSTEN A. LYNCH
Age – 55
Chief Executive Officer,
Vail Resorts, Inc.
Director Since
November 2021
Committees:
Executive
Ms. Lynch has served as Chief Executive Officer and director of Vail Resorts since
November 2021, and previously served as Executive Vice President and Chief Marketing
Officer. From March 2018 to May 2022, Ms. Lynch served as a director of Stitch Fix,
Inc., a publicly traded e-commerce company focused on personalized data-driven fashion.
Prior to joining the Company in 2011, Ms. Lynch was with PepsiCo, Inc., where she was
Chief Marketing Officer of the Quaker Foods and Snacks Division from 2009 to 2011,
leading the brand marketing, consumer insights, and shopper marketing organization.
Prior to PepsiCo, Kirsten worked for Kraft Foods for 12 years in various positions
including Vice President of Marketing for Kraft Foods’ Cheese and Dairy Business Unit
and Senior Marketing Director for Kraft Macaroni & Cheese. Ms. Lynch started her career
with Ford Motor Company in marketing and sales.
Key Skills and Qualifications:
• Leadership experience—professional association with Vail Resorts began in
2011; CEO and director of Vail Resorts since November 2021; former Executive
Vice President and Chief Marketing Officer of a large public company (Vail
Resorts); former Chief Marketing Officer at multinational food and beverage
corporation (PepsiCo); former Vice President of marketing for large food
manufacturing conglomerate (Kraft); former director at publicly traded e-
commerce company (Stitch Fix)
•
Industry and Marketing experience—former Chief Marketing Officer at two
major corporations leading brand marketing and consumer insights across the
enterprises (Vail Resorts, PepsiCo); multiple marketing positions, including
Vice President, overseeing various product divisions (Kraft); marketing and
sales at multinational automobile manufacturer (Ford)
• Finance experience—current CEO of large public company (Vail Resorts)
11
Director Nominee
NADIA RAWLINSON
Age – 44
Operating Chairman, WNBA
Chicago Sky
Director Since
December 2019
Independent
Committees:
Compensation (Chair)
Business Experience, Other Directorships and Qualifications
Ms. Rawlinson is currently a co-owner and the Operating Chairman of the WNBA
franchise Chicago Sky. In her capacity as Operating Chairman, Ms. Rawlinson leads the
ownership group and oversees all business operations, strategy, and government relations.
Additionally, Ms. Rawlinson is a Venture Advisor at GV, the venture capital arm of
Alphabet Inc. With $8 billion under management, GV invests in early-stage consumer,
life sciences, enterprise, and frontier technology companies. Before joining GV, she built
a robust career in human resources and was the Chief People Officer of Slack
Technologies, Inc., a leading channel-based messaging platform, where she was
responsible for shaping the future of work and overseeing human resources strategy. From
June 2016 to September 2020, she was the Chief Human Resources Officer at Live Nation
Entertainment, leading HR for the company’s 35,000 full time and seasonal employees.
Ms. Rawlinson also worked as the Chief Human Resources Officer at Rakuten Americas,
part of Japan-based Rakuten Group, one of the largest Internet services companies in the
world. Early in her career, she operated in both HR and Business leadership roles at
Groupon, American Express, and Google. Ms. Rawlinson is currently a director at J.Crew
Group, Inc. serving as a member of the compensation committee, and a board member of
the international NGO Save the Children. Ms. Rawlinson currently serves on the Stanford
University Board of Trustees. Ms. Rawlinson received her BA from Stanford University
and MBA from Harvard Business School.
Key Skills and Qualifications:
• Leadership experience—former Chief People Officer of leading channel-based
messaging platform (Slack); former Chief Human Resources Officer of a
Fortune 500 live music entertainment company (Live Nation); former Chief
Human Resources Officer of a large international Internet services company
(Rakuten Americas); leadership positions at various technology and financial
services companies (Groupon, American Express)
•
Industry and Technology experience—former Chief Human Resources Officer
of large international e-commerce and software as a service (SaaS) technology
companies (Rakuten Americas, Slack Technologies)
• Finance experience—current Venture Adviser at GV
12
Director Nominee
Business Experience, Other Directorships and Qualifications
JOHN T. REDMOND
Age – 65
Former CEO,
Allegiant Travel Company
Director Since
March 2008
Independent
Committees:
Audit
Mr. Redmond served as the CEO of Allegiant Travel Company from June 2022 to
September 2023, and also served as a director of Allegiant. Before Mr. Redmond’s time
as CEO, Mr. Redmond was the President of Allegiant Travel Company from September
2016 to June 2022. Prior to joining Allegiant, Mr. Redmond was the Managing Director
and Chief Executive Officer of Echo Entertainment Group Limited, a leading Australian
entertainment and gaming company, from January 2013 to April 2014, and previously
served as a non-executive director from March 2012 to January 2013. Mr. Redmond was
President and Chief Executive Officer of MGM Grand Resorts, LLC, a collection of
resort-casino, residential living, and retail developments, and a director of its parent
company, MGM Resorts International, from March 2001 to August 2007. He served as
Co-Chief Executive Officer and a director of MGM Grand, Inc. from December 1999 to
March 2001. Mr. Redmond was President and Chief Operating Officer of Primm Valley
Resorts from March 1999 to December 1999 and Senior Vice President of MGM Grand
Development, Inc. from August 1996 to February 1999. Prior to 1996, Mr. Redmond was
Senior Vice President and Chief Financial Officer of Caesars Palace and Sheraton Desert
Inn, having served in various other senior operational and development positions with
Caesars World, Inc. Mr. Redmond previously served on the board of directors of
Tropicana Las Vegas Hotel and Casino, Inc.
Key Skills and Qualifications:
• Leadership and Finance experience—former CEO of
large public
entertainment and gaming company (Echo); former senior officer and director of
large public entertainment and gaming company (MGM); former CEO and
director of leisure travel company (Allegiant)
•
Industry and International experience—former CEO and director of leisure
travel company (Allegiant); former CEO of large public entertainment and
gaming company (Echo); former senior officer and director of large public
entertainment and gaming company (MGM)
13
Director Nominee
Business Experience, Other Directorships and Qualifications
MICHELE ROMANOW
Age – 38
Co-Founder and Executive
Chairman,
Clearco
Director Since
October 2016
Independent
Committees:
Compensation
Current Public Directorships:
BBTV Holdings, Inc.
Ms. Romanow is the Co-Founder and Executive Chairman of Clearco (formerly
Clearbanc), a technology company changing the way companies raise money by
providing fast, affordable growth capital to online brands. She transitioned from CEO to
Executive Chairman of Clearco in January 2023. Clearco has invested $5 billion into more
than 10,000 companies in 13 countries. Clearco is headquartered in Toronto, Canada.
Previously, Ms. Romanow was the Co-Founder of Snap by Groupon (previously
SnapSaves), which was founded in March 2012 and acquired by Groupon, Inc. in June
2014. She served as a senior marketing executive for Groupon from June 2014 until March
2016. In February 2011, Ms. Romanow founded Buytopia.ca, a Canadian e-commerce
leader. Prior to that, she was Director of Corporate Strategy & Business Improvement for
Sears Canada. Ms. Romanow is also one of the venture capitalists on the award-winning
CBC series Dragons’ Den. Ms. Romanow is a member of the board of directors of BBTV
Holdings Inc., a Canadian media and technology company whose stock is publicly traded
on the Toronto Stock Exchange. Ms. Romanow was previously a member of the board of
directors of Whistler Blackcomb, which was acquired by Vail Resorts in October 2016,
SHAD, a Canadian charity for high school students, Freshii Inc., a publicly listed
Canadian fast casual restaurant franchise, and League of Innovators, a Canadian charity.
She holds a Bachelor of Science in Engineering and a Master of Business Administration
from Queen’s University.
Key Skills and Qualifications:
• Leadership experience—Co-founder and Executive Chairman of Clearco;
former CEO of Clearco; co-founder of SnapSaves (now Snap by Groupon) and
former head of marketing of Snap by Groupon; co-founder and former partner
of Buytopia.ca; former director of Freshii; former director of Whistler
Blackcomb
• Technology and Marketing experience—former senior marketing executive
(Groupon); co-founder of three technology companies (Clearco, SnapSaves and
Buytopia.ca)
14
Director Nominee
Business Experience, Other Directorships and Qualifications
Ms. Schneider is currently a Strategic Advisor to the Board of Directors of Shutterfly,
LLC, a leading digital retailer and manufacturer of personalized products and services.
She was Chief Executive Officer and Chair of the Board of Directors of Shutterfly from
January 2020 to June 2023. From January 2018 to November 2019 she served as CEO of
Wag!, the country's largest on-demand mobile dog walking and dog care service. Prior to
that, Ms. Schneider served as the CEO of LifeLock, Inc., a leading provider of identity
theft protection, identity risk assessment, and fraud protection services, a position she held
from March 2016 until the acquisition of LifeLock by Symantec in February 2017. From
September 2012 to February 2016, she served as the President of LifeLock, Inc. From
March 2010 to November 2010, Ms. Schneider served as Executive Vice President at
Yahoo! Americas. She joined Yahoo! in September 2006 when she led the company’s
U.S. region, Global Partner Solutions and Local Markets and Commerce divisions. Prior
to joining Yahoo!, she held senior leadership roles at Knight Ridder, Inc., from April 2002
to January 2005, including Chief Executive Officer of Knight Ridder Digital before
moving to co-manage the company's overall newspaper and online business. From 2000
to 2002, Ms. Schneider served as President and CEO of Red Herring Communications.
She also held numerous roles at Times Mirror from 1990 through 2000, including
President and CEO of Times Mirror Interactive and General Manager of the Baltimore
Sun. Ms. Schneider serves on the board of directors of DigitalOcean, Inc., a cloud-based
service provider, Getty Images, Inc. a visual media company, Water.org, a non-profit
organization, and the American Journalism Project, a local news venture philanthropy.
Ms. Schneider was also previously a member of the board of directors of LifeLock, Inc.
and SendGrid, Inc.
Key Skills and Qualifications:
HILARY A. SCHNEIDER
Age – 62
Strategic Advisor to the Board of
Directors,
Shutterfly, LLC
Director Since
March 2010
Independent
Committees:
Compensation
Current Public Directorships:
DigitalOcean, Inc.
• Leadership experience—former CEO of
retailer and
personalized products manufacturer (Shutterfly, LLC), former CEO of an on-
demand dog walking and dog care company (Wag!), former director, President
and CEO of large public identity and fraud protection company (LifeLock);
leadership positions at large public global technology company (Yahoo!)
leading digital
•
Industry and Marketing experience—former president and CEO of large public
identity and fraud protection company (LifeLock); leadership positions at large
public global technology company (Yahoo!); former director of a SaaS-based
multi-channel engagement platform (SendGrid); senior advisor to large private
equity investment firm (TPG)
15
Director Nominee
D. BRUCE SEWELL
Age – 65
Former Senior Vice President,
General Counsel & Secretary
Apple Inc.
Director Since
January 2013
Lead Independent Director
Since June 2019
Independent
Committees:
Audit, Executive,
Nominating & Governance
(Chair)
Current Public Directorships:
C3.ai, Inc.
intellectual property,
Business Experience, Other Directorships and Qualifications
From September 2009 until December 2017, Mr. Sewell was Senior Vice President,
General Counsel and Secretary of Apple Inc., overseeing all legal matters for Apple,
litigation, and securities
including corporate governance,
compliance, as well as global security operations, privacy, and encryption. Prior to joining
Apple, Mr. Sewell served as Senior Vice President, General Counsel of Intel Corporation
from 2005 to 2009. He also served as Intel’s Vice President, General Counsel from 2004
to 2005 and Vice President of Legal and Government Affairs, Deputy General Counsel
from 2001 to 2004. Prior to joining Intel in 1995 as a senior attorney, Mr. Sewell was a
partner in the law firm of Brown and Bain PC. He currently serves on the board of
directors and as chair for the nominating & governance committee of C3.ai, Inc., an
enterprise artificial intelligence software company, and serves on the board of Clearco, a
privately held growth capital technology company. Mr. Sewell also serves on the board
of Village Enterprise, a charitable organization focusing on training and creating
sustainable businesses in Africa, and is the President and Director of Friends of Lancaster
University in America, a non-profit organization supporting higher education.
Key Skills and Qualifications:
• Leadership and Finance experience—prior General Counsel of a large
international public company (Apple); leadership positions at international
manufacturer of microprocessors and chipsets (Intel)
• Technology and International experience—prior General Counsel of
international public mobile communication, personal computer, software, and
international
media devices company (Apple);
manufacturer of microprocessors and chipsets (Intel); leadership position at
cloud-based enterprise Platform as a Service (PaaS) for deployment of big data,
AI & IoT software applications (C3.ai)
leadership positions at
16
Director Nominee
JOHN F. SORTE
Age – 76
Executive Chairman,
Morgan Joseph
TriArtisan Group Inc.
Director Since
January 1993
Independent
Committees:
Audit (Chair), Compensation,
Nominating & Governance,
Executive
Business Experience, Other Directorships and Qualifications
Mr. Sorte is Executive Chairman of Morgan Joseph TriArtisan Group Inc., a merchant
bank. Prior to co-founding Morgan Joseph in 2001, he was President of New Street
Advisors L.P. He previously held various positions at Drexel Burnham Lambert,
including Head of the Energy Group, Co-head of Investment Banking, and Chief
Executive Officer and member of the board of directors. Mr. Sorte started his career as an
investment banker at Shearson Hammill. Mr. Sorte also serves on the board of directors
of Shorts International Ltd. and previously served on the board of directors of Autotote
Corp. and Westpoint Stevens Inc., as well as several private companies and non-profit
organizations.
Key Skills and Qualifications:
• Leadership and Finance experience—Executive Chairman of merchant bank
(Morgan Joseph); former President of private equity firm (New Street); prior
leadership positions at global investment bank (Drexel)
•
International experience—Executive Chairman of merchant bank with
international operations (Morgan Joseph); prior leadership positions at global
investment bank (Drexel)
17
Director Nominee
PETER A. VAUGHN
Age – 59
Founder & Managing Director,
Vaughn Advisory Group, LLC
Director Since
June 2013
Independent
Committees:
Audit, Nominating & Governance
Business Experience, Other Directorships and Qualifications
Mr. Vaughn is the Founding and Managing Director of the Vaughn Advisory Group, LLC,
a privately held company providing advisory and consulting services on global marketing,
brand strategy, business strategy, organizational effectiveness, and executive coaching.
Since October 2021, he has also served as the Chairman of the Board of Trustees of
Vaughn College of Aeronautics and Technology in Queens, New York. From July 2018
to January 2020, Mr. Vaughn served as Chief Experience Officer of Avenues: The World
School, a privately held, for-profit global network of independent schools headquartered
in New York. From January 2013 through November 2014, he was the Senior Vice
President of International Consumer Products and Marketing of the American Express
Company, providing strategic marketing leadership for the company’s consumer card-
issuing and network businesses in over 160 countries worldwide, with a focus on product
line strategy, benefit sourcing and management, product innovation, brand management,
communications, and advertising. Previously, he held several senior marketing roles
within American Express, including serving as Chief Marketing Officer of Global
Network Services from 2011 to January 2013, Senior Vice President of Global Brand
Management from 2005 to 2011, Vice President of Marketing for the Travelers Cheque
and Prepaid Services Group from 2002 to 2004, Vice President and General Manager of
Lending for the Small Business Division in 2001, and Vice President of Acquisition and
Advertising for Small Business Services from 1999 to 2001. From 1994 to 1999, he held
several positions overseas in the Consumer Services Group of American Express,
including Vice President of International Product Development, European Head of
Revolving Credit and Lending, and Senior Director of European Product Development.
Mr. Vaughn joined American Express in 1992, acting as Director of Marketing for the
Consumer Financial Services Group.
Key Skills and Qualifications:
• Leadership and International experience—former senior global marketing
positions and senior business leader in multiple business lines at a global, public
financial services company (American Express); executive of global school
network (Avenues)
• Marketing and Finance experience—principal of privately-held global brand
strategy and marketing company (Vaughn Advisory Group); former senior
global marketing positions and senior business leader in multiple business lines
with operational marketing and profit/loss responsibility at a global, public
financial services company (American Express); former senior executive of a
global private school network (Avenues)
THE BOARD RECOMMENDS THAT YOU VOTE “FOR” THE ELECTION OF EACH OF THE
NOMINEES NAMED ABOVE.
18
The Company’s executive officers, as well as additional information with respect to such persons, are set forth below:
MANAGEMENT
Name
Age
Position
Kirsten A. Lynch
Angela A. Korch
Bill Rock
David T. Shapiro
Gregory J. Sullivan
55
44
58
53
52
Chief Executive Officer
Executive Vice President and Chief Financial Officer
President - Mountain Division
Executive Vice President, General Counsel and Secretary
Executive Vice President, Retail/Rental & Hospitality
For biographical information about Ms. Lynch, see “Director Nominees” above.
Angela A. Korch has served as Executive Vice President and Chief Financial Officer since December 2022. Ms. Korch rejoined the
Company from CorePower Yoga, where she served as Chief Financial Officer from May 2020 through December 2022. Ms. Korch
originally joined the Company in 2010 and held several successive leadership roles, including Vice President of Corporate & Mountain
Finance. During her tenure, Ms. Korch managed financial and capital allocation strategies, transformed core processes, and played an
integral role in the integration of 32 mountain resorts. Prior to working at the Company, Ms. Korch was an Assistant Portfolio Manager
at Muzinich & Company. She earned her MBA in finance from the NYU Stern School of Business, is a CFA charter holder, and has an
undergraduate degree in applied economics and business management from Cornell University.
Bill Rock has served as the President of the Mountain Division since May 2023. Prior thereto, Mr. Rock served as Company’s
Executive Vice President of Mountain Operations from June 2021 to May 2023, and from September 2019 until June 2021 served as
Senior Vice President and Chief Operating Officer of the Rocky Mountain region with oversight responsibility for Vail Mountain,
Beaver Creek, Breckenridge, Keystone and Crested Butte in Colorado as well as Park City Mountain in Utah. Prior to this role, Mr.
Rock was Senior Vice President and Chief Operating Officer of Park City Mountain, a role he began in October 2014. After joining the
Company as the Vice President and Chief Operating Officer of Northstar California Resort in 2010, Mr. Rock oversaw operations for
the Company’s three resorts in the Tahoe region. Mr. Rock started his career in the mountain resort industry in 1996 at Bristol Mountain
in New York as Director of Marketing and subsequently held several leadership roles in the industry.
David T. Shapiro has served as Executive Vice President, General Counsel and Secretary since July 2015. Prior to joining the
Company, Mr. Shapiro served as General Counsel and Senior Vice President for DaVita Kidney Care, a division of DaVita Inc.,
overseeing all aspects of the division’s legal work. Mr. Shapiro joined DaVita in 2008, serving as Senior Vice President and Chief
Special Counsel from 2012 to 2013 and as Senior Vice President and Chief Compliance Officer from 2008 to 2012. From 2003 to 2007,
he served as a trial attorney for the U.S. Department of Justice’s Civil Frauds Section in Washington, D.C. and, prior to that, in private
practice at law firms in Connecticut, Philadelphia, and Washington, D.C. Mr. Shapiro currently serves as a member of the board of
trustees for Colorado Academy, and is Chair of the Risk Committee. He has previously served on other private and non-profit boards,
including the Children's Hospital Colorado, the Denver Public School Foundation, and the Denver Metro Chamber of Commerce.
Gregory J. Sullivan was appointed Executive Vice President of Retail and Hospitality in October 2022, after serving as Senior Vice
President of Retail and Hospitality since June 2021. Mr. Sullivan joined the Company in September 2016 as Chief Operating Officer of
Rental and Retail. Prior to joining Vail Resorts, Mr. Sullivan was the Senior Vice President of Global Business Transformation at Crocs,
Inc. and before that he held numerous roles in a 20-year career with Walmart, culminating as a Division President, overseeing the
Southeast Division based in Atlanta. Mr. Sullivan has previously served on the board of directors for SOS Outreach and as a council
member of Executive Leadership Development for the American Diabetes Association.
19
SECURITY OWNERSHIP OF DIRECTORS AND
EXECUTIVE OFFICERS
Set forth in the following table is the beneficial ownership of common stock at the close of business on October 10, 2023 for all
directors, nominees, named executive officers, and all directors and executive officers as a group as of such date.
Name of Beneficial Owner
Susan L. Decker
Nadia Rawlinson
John T. Redmond
Michele Romanow
Hilary A. Schneider
D. Bruce Sewell
John F. Sorte
Peter A. Vaughn
Robert A. Katz
Angela A. Korch
Kirsten A. Lynch
Michael Z. Barkin
Ryan Bennett
James C. O’Donnell
David T. Shapiro
Directors and current executive officers as
a group (14 persons)
____________________
* Less than 1.0%.
Common Stock
Beneficially Owned
Shares
7,077
3,330
21,542
6,023
17,364
19,843
45,750
8,592
271,880(2)
0
38,403(3)
14,303
2,162
8,483
6,704
Percent of Class(1)
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
456,676(4)
1.2%
(1) Applicable percentages are based on 38,090,029 shares outstanding on October 10, 2023, adjusted as required by rules promulgated by the SEC. Unless
indicated by footnote, the address for each listed director and executive officer is c/o Vail Resorts, Inc., 390 Interlocken Crescent, Broomfield, Colorado 80021.
Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities.
Except as indicated by footnote, the person named in the table has sole voting and investment power with respect to all shares of common stock beneficially
owned by them.
The number of shares of common stock outstanding used in calculating the percentage for each listed person includes the restricted share units, or RSUs, and
common stock underlying share appreciation rights, or SARs, held by that person that are currently exercisable or are exercisable within 60 days of October
10, 2023, but excludes RSUs and our common stock underlying SARs held by any other person.
(2)
(3)
(4)
Includes 27,386 shares of common stock underlying 202,827 SARs (assuming a fair market value of $212.76 the closing price of our common stock on October
10, 2023).
Includes 8,349 shares of common stock underlying 101,463 SARs (assuming a fair market value of $212.76, the closing price of our common stock on October
10, 2023).
Includes 38,346 shares of common stock underlying 382,764 SARs (assuming a fair market value of $212.76 the closing price of our common stock on October
10, 2023).
20
INFORMATION AS TO CERTAIN STOCKHOLDERS
Set forth below is certain information with respect to the only persons known to the Company to be the beneficial owners of more
than five percent of the Company’s voting securities at the close of business on October 10, 2023.
Name of Beneficial Owner
Ronald Baron/Baron Capital Management, Inc. (2)
The Vanguard Group, Inc. (3)
BlackRock, Inc. (4)
Select Equity Group, L.P. (5)
APG Asset Management US Inc. (6)
Common Stock
Beneficially Owned
Shares
4,309,980
3,905,848
4,639,362
2,612,048
2,139,550
Percent of Class(1)
11.3%
10.3%
12.2%
6.9%
5.6%
____________________
(1) Applicable percentages are based on 38,090,029 shares outstanding on October 10, 2023.
(2) As reported by Baron Capital Group, Inc. (“BCG”), BAMCO Inc. (“BAMCO”), Baron Capital Management Inc. (“BCM”), Baron Growth Fund (“BGF”) and
Ronald Baron and on a joint Schedule 13G/A filed with the SEC on February 14, 2023. BAMCO and BCM are subsidiaries of BCG. BGF is an advisory client
of BAMCO. Ronald Baron owns a controlling interest in BCG. The address for the holders is 767 Fifth Avenue, 49th Floor, New York, NY 10153.
(3) As reported by The Vanguard Group on a Schedule 13G/A filed with the SEC on July 10, 2023. The address for the holder is 100 Vanguard Blvd, Malvern,
PA 19355.
(4) As reported by BlackRock, Inc. on a Schedule 13G/A filed with the SEC on October 6, 2023. The address for the holder is 50 Hudson Yards, New York, NY
10001.
(5) As reported by Select Equity Group, L.P. (“Select LP”) and George S. Loening, who is the majority owner of Select LP and managing member of its general
partner, on a joint Schedule 13G filed with the SEC on February 14, 2023. The address for the holders is 380 Lafayette Street, New York, New York 10003.
(6) As reported by APG Asset Management US Inc. (“APG US”) on a Schedule 13G/A filed with the SEC on January 12, 2023. APG Asset Management, N.V.
(“APG NL”) is wholly-owned by APG Groep, N.V. (“APG Groep”) and is the investment manager with respect to the securities to which this statement relates.
Pursuant to an Investment Management Agreement, APG NL has delegated its investment and voting power with respect to such securities to APG US, which
is its wholly-owned subsidiary. Stichting Pensioenfonds ABP is the majority owner of APG Groep. The address for the holder is 666 3rd Ave, New York, NY
10017.
21
CORPORATE GOVERNANCE GUIDELINES
CORPORATE GOVERNANCE
The Board acts as the ultimate decision-making body of the Company, except for those matters reserved to or shared with the
Company’s stockholders. The Board selects, advises, and oversees our management, who are responsible for the day-to-day operations
and administration of the Company. The Board has adopted Corporate Governance Guidelines which, along with the charters of each
of the committees of the Board and the Company’s Code of Ethics and Business Conduct, which we refer to as the Code of Ethics,
provide the framework for the governance of the Company. A complete copy of the Company’s Corporate Governance Guidelines, the
charters of the Board committees and the Code of Ethics for directors, officers and employees may be found in the “Governance” section
of the Company’s website at investors.vailresorts.com.
BOARD LEADERSHIP AND LEAD INDEPENDENT DIRECTOR
Currently, the positions of Chairperson of the Board and Chief Executive Officer of the Company are held by separate persons,
with Mr. Katz serving as our Executive Chairperson of the Board and Ms. Lynch serving as Chief Executive Officer. Both Mr. Katz and
Ms. Lynch are considered non-independent directors. When the Chairperson of the Board is a non-independent director, the independent
directors elect an independent director to serve in a lead capacity. Accordingly, Mr. Sewell serves as our Lead Independent Director, or
Lead Director.
The Board believes that two leaders serving as Executive Chairperson and Chief Executive Officer, together with an experienced
and engaged Lead Director, is the most appropriate leadership structure for the Board at this time. This structure results in two leaders
being directly accountable to the Board and, through the Board, to stockholders. Specific duties of the Executive Chairperson and the
Lead Director are:
EXECUTIVE CHAIRPERSON OF THE BOARD
LEAD DIRECTOR
• Advising and supporting the CEO and other executives
on long-term strategy and key strategic decisions;
• Providing regular feedback to the CEO on their
performance;
• Presiding over meetings of the Board at which the
Executive Chairperson is not present, including executive
sessions of independent directors;
• Having the authority to call meetings of the
• Engaging in select, key strategic projects and
independent directors;
initiatives;
• Setting the agenda for Board meetings with the Lead
Director and the CEO;
• Having the authority to call special meetings of the
the
Board and such other duties assigned
Chairperson under the Company’s Bylaws;
to
• Serving as the presiding director for purposes of all rights
and duties assigned to the presiding director under the
Company’s Bylaws, including the right to call special
meetings of the Board;
• Serving as principal liaison on Board-wide issues between
the independent directors and the Executive Chairperson;
• Serving as a liaison between the Board and Senior
• Approving meeting agendas and meeting
Management;
schedules for the Board;
• Monitoring the content, quality, and timeliness of
information sent to the Board;
• Acting as a source of institutional knowledge; and
• Being available to the Board and the CEO for
additional responsibilities as may be needed.
• Serving as the point of contact for communications from
stockholders or other interested parties directed to the Lead
Director or the non-management directors or the Board as a
group; and
• Such other duties as set forth in the Charter of the Lead
Independent Director (attached as Appendix A to the
Corporate Governance Guidelines).
MEETINGS OF THE BOARD
The Board held a total of four meetings during fiscal 2023. Each of our then-serving directors attended 100% of the meetings held
by the Board and Board committees on which he or she served during the fiscal year. In accordance with our Corporate Governance
Guidelines, directors are invited and encouraged to attend our annual meeting of stockholders. All of our then-serving directors attended
our 2022 annual meeting of stockholders.
22
EXECUTIVE SESSIONS
The non-management directors’ practice is to meet in executive session following the conclusion of each regularly scheduled
quarterly Board meeting to discuss such matters as they deem appropriate and, at least once a year, to review the Compensation
Committee’s annual review of the Chief Executive Officer and the Executive Chairperson. These executive sessions are chaired by the
Lead Director. Interested parties, including our stockholders, may communicate with the Lead Director and the non-management
directors by following the procedures under the heading “Communications with the Board” below.
DIRECTOR NOMINATIONS
The Nominating & Governance Committee considers and recommends candidates for election to the Board. The Nominating &
Governance Committee also considers candidates for election to the Board, if any, that are submitted by stockholders. Each member of
the Nominating & Governance Committee participates in the review and discussion of director candidates. In addition, members of the
Board who are not on the Nominating & Governance Committee may meet with and evaluate the suitability of candidates. In making
its selections of candidates to recommend for election, the Nominating & Governance Committee seeks persons who have achieved
prominence in their field and who possess significant experience in areas of importance to the Company. The minimum qualifications
that the Nominating & Governance Committee believes must be met for a candidate to be nominated include independence, wisdom,
integrity, understanding and general acceptance of the Company’s corporate philosophy, business or professional knowledge and
experience that can bear on the Company’s and the Board’s challenges and deliberations, proven record of accomplishment with
excellent organizations, inquiring mind, willingness to speak one’s mind, ability to challenge and stimulate management, future
orientation, willingness to commit time and energy, diversity and international/global experience. In general, directors are expected to
retire from the Board at the conclusion of the term in which they reach age 72, unless otherwise recommended for nomination by the
Nominating & Governance Committee, which the Nominating & Governance Committee determined to do with respect to Mr. Sorte,
who has attained the age of 76, particularly in light of his knowledge of and experience with the Company as well as his financial
acumen.
Stockholders who wish to submit candidates for consideration by the Nominating & Governance Committee for election at an
annual or special meeting of stockholders should submit the candidate’s name and qualifications, including the candidate’s consent to
serve as a director of the Company if nominated by the Committee and so elected, by mail to: Secretary, Vail Resorts, Inc., 390
Interlocken Crescent, Broomfield, Colorado 80021. The Nominating & Governance Committee applies the same standards in
considering candidates submitted by stockholders as it does in evaluating candidates submitted by members of the Board. The
Nominating & Governance Committee recommended the nominees for election at this year’s annual meeting.
DETERMINATIONS REGARDING INDEPENDENCE
Under the Company’s Corporate Governance Guidelines, a majority of the Board must be comprised of directors who are
independent, as determined based on the independence standards of the New York Stock Exchange's (“NYSE”) Listed Company
Manual. In accordance with our Corporate Governance Guidelines and the NYSE’s listing standards, the Board has adopted categorical
standards of director independence to assist it in making determinations of independence of Board members. These categorical standards
of director independence are available in the “Governance” section of the Company’s website under “Governance Documents” at
investors.vailresorts.com. The Board has affirmatively determined that each of the nominees, other than Mr. Katz and Ms. Lynch, is
“independent” under the NYSE’s listing standards and the categorical standards of director independence adopted by the Board.
Information on our website does not constitute part of this document.
COMMUNICATIONS WITH THE BOARD
The Board has adopted a formal process by which interested parties, including our stockholders, may communicate with the Board,
the Lead Director, or the non-management directors as a group. This information is available in the “Governance” section of the
Company’s website under “Governance Documents” at investors.vailresorts.com. Information on our website does not constitute part
of this document.
CODE OF ETHICS AND BUSINESS CONDUCT
The Company has adopted a Code of Ethics that applies to all directors, officers and employees, including its chief executive officer,
chief financial officer, chief accounting officer and controller, or persons performing similar functions. We make the Code of Ethics
available to all directors, officers, and employees, and convey our expectation that every director, officer, and employee read and
understand the Code of Ethics and its application to the performance of each such person’s business responsibilities. Our Code of Ethics
uses a principles-based guideline to alert directors, officers, and employees to potential conflicts of interest. Under the Code of Ethics,
a conflict of interest occurs when an individual’s personal, social, financial, or political interests conflict with his or her loyalty to the
Company. Our policy under the Code of Ethics provides that even the appearance of a conflict of interest where none actually exists can
be damaging and should be avoided. If any person believes a conflict of interest is present in a personal activity, financial transaction,
23
or business dealing involving the Company, then that person is instructed under the Code of Ethics to report such belief to an appropriate
individual or department as identified in the Code of Ethics.
The Code of Ethics is available in the “Governance” section of the Company’s website under “Governance Documents” at
investors.vailresorts.com. In the event the Company amends or waives any of the provisions of the Code of Ethics applicable to our
chief executive officer, chief financial officer, or chief accounting officer and controller that relates to any element of the definition of
“code of ethics” enumerated in Item 406(b) of Regulation S-K under the Securities Exchange Act of 1934, as amended, (the “Exchange
Act”), the Company intends to disclose these actions on its website. Information on our website does not constitute part of this document.
RISK MANAGEMENT
The Board believes that oversight of the Company’s overall risk management program is the responsibility of the entire Board and
views risk management as an important part of the Company’s overall strategic planning process. The Board has delegated the regular
oversight of the elements of the risk management program to the Audit Committee, and the Board receives periodic updates on individual
areas of risk from the Audit Committee or members of senior management, as appropriate. The Board also periodically schedules a risk
management agenda item for regular Board meetings, during which the Audit Committee or members of senior management report to
and informs the Board of its risk management oversight activities. Senior management reports directly to the Audit Committee at each
scheduled Audit Committee meeting and additionally as needed on the status of the Company’s risk management program. Specifically,
cybersecurity has been identified as a critical part of risk management at the Company. The Company has a dedicated team that is
responsible for leading enterprise-wide information security strategy, policy, standards, architecture, and processes. Cybersecurity
oversight consists of the Audit Committee receiving quarterly updates from the Chief Information Officer regarding major cyber risk
areas and recommended actions to address those risks.
The Audit Committee has established an internal audit function to provide management and the Board with ongoing assessments
of the Company’s risk management processes and systems of internal control. In addition, as part of its responsibilities, the Audit
Committee inquires of management and our independent auditors about the Company’s processes for identifying and assessing such
risks and exposures and the steps management has taken to minimize such risks and exposures to the Company. The Audit Committee
also reviews the Company’s guidelines and policies that govern the processes for identifying and assessing significant risks or exposures
and for formulating and implementing steps to minimize such risks and exposures to the Company.
SUSTAINABILITY EFFORTS
The Company’s resorts operate in some of the world’s greatest natural environments, and accordingly environmental stewardship
is a core philosophy for the Company. In 2017, the Company launched its Commitment to Zero, a pledge to have a zero net operating
footprint by 2030. This commitment includes achieving (i) zero net emissions by finding operational energy efficiencies, investing in
renewable energy, and investing in offsets and other emissions reduction projects, (ii) zero waste to landfills by diverting 100 percent
of waste from the Company’s operations, and (iii) zero net operating impact to forests and habitat by restoring an acre of forest for every
acre displaced by the Company’s operations. Performance against these objectives and targets is routinely monitored, and details on the
Company’s
at
be
can
epicpromise.com/environment/commitment-to-zero/. Information on this website does not constitute part of this document.
our EpicPromise
Progress Report
performance
against
found
goals
these
in
COMPENSATION RISK ASSESSMENT
The Compensation Committee, with the assistance of our independent compensation consultant, reviewed the material
compensation policies and practices for all employees, including executive officers. The Compensation Committee considered whether
the compensation program encouraged excessive risk taking by employees at the expense of long-term Company value. Based upon its
assessment, the Compensation Committee believes that the Company’s compensation program, which includes a mix of annual and
long-term incentives, cash and equity awards, and retention incentives, does not present risks that are reasonably likely to have a material
adverse effect on the Company.
COMMITTEES OF THE BOARD
The Board has a standing Audit Committee, Compensation Committee, Executive Committee, and Nominating & Governance
Committee. The charters for each of these committees, which have been approved by the Board, are available in the “Governance”
section of the Company’s website under “Committee Charters” at investors.vailresorts.com. Following is a description of each
committee of the Board. Each of the committees has authority to engage legal counsel or other experts or consultants, as it deems
appropriate to carry out its responsibilities. Information on our website does not constitute part of this document.
24
The Audit Committee
The Audit Committee is primarily concerned with the effectiveness of the Company’s independent registered public accounting
firm, accounting policies and practices, financial reporting, and internal controls. The Audit Committee acts pursuant to its charter, and
is authorized and directed, among other things, to: (1) appoint, retain, compensate, evaluate, and terminate, as appropriate, the
Company’s independent registered public accounting firm; (2) approve all audit engagement fees and terms, as well as all permissible
non-audit service engagements with the independent registered public accounting firm; (3) discuss with management and the
independent registered public accounting firm and meet to review the Company’s annual audited financial statements and quarterly
financial statements, including reviewing the Company’s disclosures under “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s annual and quarterly reports filed with the SEC; (4) review reports by the
independent registered public accounting firm describing its internal quality control procedures and all relationships between the
Company, or individuals in financial reporting oversight roles at the Company, and the independent registered public accounting firm;
(5) establish procedures, as required under applicable law, for the receipt, retention, and treatment of complaints received by the
Company regarding accounting, internal accounting controls, or auditing matters and the confidential and anonymous submission by
employees of concerns regarding questionable accounting or auditing matters; (6) monitor the rotation of partners of the independent
auditors on the Company’s audit engagement team as required by law; (7) review and approve or reject transactions between the
Company and any related persons in accordance with the Company’s Related Party Transactions Policy; (8) confer with management
and the independent auditors regarding the effectiveness of internal control over financial reporting; (9) oversee management’s efforts
to monitor compliance with the Company’s programs and policies designed to ensure adherence to applicable laws and regulations and
the Company’s Code of Ethics; (10) annually prepare a report as required by the SEC to be included in the Company’s annual proxy
statement; and (11) discuss policies with respect to risk assessment and risk management.
The members of the Audit Committee are Mr. Sorte, Chair, and Messrs. Redmond, Sewell, and Vaughn. The Board has determined
that each of Messrs. Redmond, Sorte, and Sewell qualify as an “audit committee financial expert” as defined in the SEC’s rules and
regulations adopted pursuant to the Exchange Act, and that all of the members of the Audit Committee are “independent” as defined by
the NYSE’s listing standards and the rules of the SEC applicable to audit committee members. The Audit Committee held four meetings
during fiscal 2023.
AUDIT COMMITTEE REPORT
Management is responsible for the Company’s accounting practices, internal control over financial reporting, the financial reporting
process, and preparation of the consolidated financial statements. The Company’s independent registered public accounting firm is
responsible for performing an independent audit of the Company’s consolidated financial statements in accordance with the standards
of the Public Company Accounting Oversight Board, or the PCAOB. The Audit Committee’s responsibility is to monitor and oversee
these processes.
In this context, the Audit Committee has met and held discussions with management and the Company’s independent registered
public accounting firm. Management represented to the Audit Committee that the Company’s consolidated financial statements for the
fiscal year ended July 31, 2023 were prepared in accordance with generally accepted accounting principles. The Audit Committee
reviewed and discussed the consolidated financial statements with management and the Company’s independent registered public
accounting firm, including a discussion of the quality of the accounting principles, the reasonableness of significant judgments, the
clarity of disclosures in the financial statements and management’s assessment of the effectiveness of the Company’s internal control
over financial reporting. The Audit Committee further discussed with the Company’s independent registered public accounting firm the
matters required to be discussed under the rules adopted by the PCAOB, as well as the Company’s independent registered public
accounting firm’s opinion on the effectiveness of the Company’s internal control over financial reporting.
The Company’s independent registered public accounting firm also provided to the Audit Committee the written disclosures and
letter required by applicable requirements of the PCAOB regarding the independent accountants’ communications with the Audit
Committee concerning independence, and the Audit Committee discussed with the Company’s independent registered public accounting
firm, and were satisfied with, that firm’s independence from the Company and its management. The Audit Committee has also
considered whether the Company’s independent registered public accounting firm’s provision of non-audit services to the Company is
compatible with the auditors’ independence.
The Audit Committee discussed with the Company’s internal auditor and independent registered public accounting firm the overall
scope and plans for their respective audits. The Audit Committee meets with the Company’s independent registered public accounting
firm, with and without management present, to discuss the results of their examination, their evaluation of the Company’s internal
control over financial reporting, and the overall quality of the Company’s financial reporting. In addition, the Audit Committee meets
with the internal auditor, with and without management present, to discuss the results of their examination and evaluation of the
Company’s internal control over financial reporting. The Audit Committee has also reviewed and discussed Company policies with
respect to risk assessment and risk management.
25
Based upon the Audit Committee’s discussion with management and the Company’s independent registered public accounting firm
referred to above, the Audit Committee recommended to the Board that the Company’s audited financial statements as of and for the
fiscal year ended July 31, 2023 be included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2023 for
filing with the SEC.
Audit Committee
John F. Sorte, Chair
John T. Redmond
D. Bruce Sewell
Peter A. Vaughn
26
The Compensation Committee
The Compensation Committee acts pursuant to its charter and is authorized and directed, among other things, to: (1) review and
approve corporate goals and objectives relevant to the Chief Executive Officer’s compensation, evaluate the Chief Executive Officer’s
performance in light of those goals and objectives (including the Chief Executive Officer’s performance in fostering a culture of ethics
and integrity), and, either as a committee or together with the other independent directors (as directed by the Board), determine and
approve the Chief Executive Officer’s compensation level based on this evaluation; (2) review the performance of, make
recommendations (where appropriate) with respect to, and approve the total compensation for the executive officers of the Company
other than the CEO, including any proposed severance arrangements or change in control and similar agreements/provisions, and any
amendments, supplements, or waivers to the foregoing agreements; (3) oversee the Company’s overall compensation structure, policies,
and programs for executive officers and employees, including assessing the incentives and risks arising from or related to the Company’s
compensation programs and plans, and assessing whether the incentives and risks are appropriate; (4) review and approve the Company’s
incentive compensation and equity-based plans and approve changes to such plans, in each case subject, where appropriate, to
stockholder or Board approval, and review and approve issuances of equity securities to employees of the Company; (5) review and
recommend to the Board annual retainer and meeting fees for non-employee members of the Board and committees of the Board, fix
the terms and awards of stock compensation for such members of the Board and determine the terms, if any, upon which such fees may
be deferred; (6) produce a compensation committee report on executive officer compensation as required by the SEC, after the committee
reviews and discusses with management the Company’s Compensation Discussion and Analysis, or “CD&A,” and consider whether to
recommend that it be included in the Company’s proxy statement or Annual Report; and (7) consider and recommend to the Board the
frequency of the Company’s advisory vote on executive compensation.
The members of the Compensation Committee are Ms. Rawlinson, Chair, Mses. Decker, Romanow, and Schneider and Mr. Sorte.
The Board has determined that all members of the Compensation Committee are “independent” as defined by the NYSE’s listing
standards. In addition, the Compensation Committee consists of “non-employee directors,” within the meaning of Rule 16b-3
promulgated under the Exchange Act and “outside directors,” within the meaning of regulations promulgated under Section 162(m) of
the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. The Compensation Committee held three meetings
during fiscal 2023.
Compensation Committee Processes and Procedures
The Compensation Committee meets as often as necessary to carry out its responsibilities. The agenda for each meeting is usually
developed by the Chair of the Compensation Committee, in consultation with the Chief Executive Officer. The Chief Executive Officer
does not participate in and is not present during any deliberations or determinations of the Compensation Committee regarding her
compensation or individual performance objectives. The charter of the Compensation Committee grants the Compensation Committee
sole authority, at the expense of the Company, to retain or to obtain advice from a compensation consultant, legal counsel, or other
adviser to assist in the execution of the Compensation Committee’s responsibilities. The Compensation Committee is directly
responsible for the appointment, compensation, and oversight of the work of any consultant or adviser retained and has authority to
approve the fees and other retention terms. The Compensation Committee expects that it will seek advice from independent
compensation consultants as it deems necessary on a periodic basis, but not necessarily annually, in order to determine that the
Company’s compensation programs remain appropriate and consistent with industry practices. Prior to the retention of any compensation
consultant, legal counsel, or any other external adviser, the Compensation Committee will assess the independence of such adviser from
management, taking into consideration all factors relevant to such adviser’s independence, including factors specified in the NYSE
listing standards.
During fiscal 2023, the Compensation Committee engaged Aon's Human Capital Solutions Practice, a division of Aon plc. (“Aon”),
a multinational, multi-services insurance and consulting firm as its independent compensation consultant. Aon was retained by the
Compensation Committee to review the Company’s executive and Board compensation programs, including an analysis relating to the
compensation of our Chief Executive Officer and a compensation program risk assessment.
In fiscal 2023, Aon was paid approximately $133,000 for these executive compensation consulting services provided to the
Compensation Committee. During fiscal 2023, Aon and its affiliates provided insurance services, health benefits, valuation services,
and a pharmacy coalition membership. The decision to engage Aon and its affiliates for these additional services was made by
management as part of the Company’s existing relationship with Aon concerning these services, and was not approved, or required to
be approved, by the Compensation Committee or the Board. Professional fees for the foregoing additional services in fiscal 2023 were
approximately $634,000, or 0.005% of Aon's approximately $12.5 billion corporate revenues. The individuals at Aon that advise the
Compensation Committee on executive compensation matters have no involvement in the other services provided to the Company by
Aon and its affiliates, and the individuals at Aon advising the Compensation Committee report directly to, and are overseen by, the
Compensation Committee. These individuals have no other relationship with the Company or management. The Compensation
Committee has assessed the independence of Aon as required by the NYSE listing standards. The Compensation Committee reviewed
its relationship with Aon and considered all relevant factors, and concluded that there are no conflicts of interest raised by the work
performed by Aon and its affiliates.
27
Under its charter, the Compensation Committee may form, and delegate authority to, subcommittees, as appropriate, and the Chief
Executive Officer has been granted authority to grant certain equity-based awards for hiring incentive grants, correction grants, or grants
to promoted non-executive employees. The purpose of this delegation of authority is to enhance the flexibility of equity administration
within the Company and to facilitate the timely grant of equity awards to new or recently promoted non-executive employees within
specified limits approved by the Compensation Committee. The Chief Executive Officer’s authority to make new hire incentive grants
is limited by the restrictions established by the Compensation Committee.
Historically, the Compensation Committee has made adjustments to annual compensation, determined annual cash and equity
awards, and established new performance objectives at one or more meetings held during the first quarter of the fiscal year. However,
the Compensation Committee also considers matters related to individual compensation, such as compensation for new executive hires,
at various times as needed throughout the year. Generally, the Compensation Committee’s process comprises two related elements: the
determination of compensation levels and the establishment of performance objectives for the fiscal year. For executives other than the
Chief Executive Officer, the Compensation Committee solicits and considers evaluations and recommendations submitted to the
committee by the Chief Executive Officer. The Compensation Committee makes all final determinations regarding these awards, and
none of our executive officers, including the Chief Executive Officer, are involved in the determination of their own compensation. In
the case of the Chief Executive Officer, the evaluation of her performance is conducted by the Compensation Committee, which
determines any adjustments to her compensation as well as awards to be granted. The non-management directors’ practice is to meet in
executive session following the Board meeting in September of each year to review and ratify the Compensation Committee’s annual
review of the Chief Executive Officer. For all executives and directors, as part of its deliberations, the Compensation Committee may
review and consider, as appropriate, materials such as financial reports and projections, operational data, tax and accounting information,
tally sheets that set forth the total compensation that may become payable to executives in various hypothetical scenarios, executive and
director stock ownership information, company stock performance data, analyses of historical executive compensation levels and current
Company-wide compensation levels, and recommendations of the Compensation Committee’s compensation consultant, including
analyses of executive and director compensation paid at other companies identified by the consultant.
The specific determinations of the Compensation Committee with respect to executive compensation for fiscal 2023 are described
in greater detail in the Compensation Discussion & Analysis section of this proxy statement, as well as the narrative disclosure that
accompanies the Summary Compensation Table and related tables in the Executive Compensation section of this proxy statement.
Compensation Committee Interlocks and Insider Participation
During fiscal 2023, no Compensation Committee interlocks existed between the Company and any other entity, meaning none of
our executive officers currently serves, or has served during the last completed fiscal year, on the compensation committee or board of
directors of any other entity that has one or more executive officers serving as a member of our Board or Compensation Committee. No
member of our Compensation Committee has ever been an executive officer or employee of the Company.
COMPENSATION COMMITTEE REPORT
The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis contained
in this Proxy Statement. Based upon this review and discussion, the Compensation Committee has recommended to the Board that the
Compensation Discussion and Analysis be included in this Proxy Statement and incorporated into our Annual Report on Form 10-K for
the fiscal year ended July 31, 2023.
Compensation Committee
Nadia Rawlinson, Chair
Susan L. Decker
Michele Romanow
Hilary A. Schneider
John F. Sorte
28
The Nominating & Governance Committee
The Nominating & Governance Committee acts pursuant to its charter and is authorized and directed to: (1) review the overall
composition of the Board; (2) actively seek individuals qualified to become Board members for recommendation to the Board; (3)
identify and recommend to the Board director nominees for the next annual meeting of stockholders and members of the Board to serve
on the various committees of the Board; (4) oversee the evaluation of the performance of the Board and oversee the annual self-
evaluation process of the Board and each committee; (5) review and reassess the adequacy of the Corporate Governance Guidelines of
the Company and recommend any proposed changes to the Board for approval; (6) review and present to the Board individual director
candidates recommended for the committee’s consideration by stockholders and stockholder nominations for director that are made in
writing to the Secretary of the Company in compliance with the Company’s Bylaws; and (7) review and present to the Board stockholder
proposals. The Nominating & Governance Committee also has the authority to retain and terminate any search firm to be used to identify
candidates and to approve the search firm’s fees and other retention terms.
The members of the Nominating & Governance Committee are Mr. Sewell, Chair, Mr. Sorte, and Mr. Vaughn. The Board has
determined that all members of the Nominating & Governance Committee are “independent” as defined by the NYSE’s listing standards.
The Nominating & Governance Committee held two meetings during fiscal 2023.
The Executive Committee
The Executive Committee has all powers and rights necessary to exercise the full authority of the Board during the intervals between
meetings of the Board in the management of the business and affairs of the Company, subject to certain limitations set forth in the
charter of the Executive Committee. For fiscal 2023, the members of the Executive Committee were Messrs. Katz, Sewell, and Sorte
and Ms. Lynch. The Executive Committee held multiple discussions, but no formal meetings during fiscal 2023.
29
DIRECTOR COMPENSATION FOR FISCAL 2023
DIRECTOR COMPENSATION
The following table provides information concerning the compensation of our non-employee directors in fiscal 2023:
Name(1)
Susan L. Decker(5)
Nadia Rawlinson(6)
John T. Redmond(7)
Michele Romanow(8)
Hilary A. Schneider(9)
D. Bruce Sewell(10)
John F. Sorte(11)
Peter A. Vaughn(12)
____________________
Fees Earned or
Paid in Cash
($)(2)
85,000
95,000
90,000
85,000
85,000
155,000
130,000
100,000
Stock
Awards
($)(3)
220,283
220,283
220,283
220,283
220,283
220,283
220,283
220,283
All Other
Compensation
($)(4)
—
12,980
—
—
—
—
—
14,074
Total
($)
305,283
328,263
310,283
305,283
305,283
375,283
350,283
334,357
(1)
(2)
(3)
(4)
Mr. Katz and Ms. Lynch are also named executive officers and their compensation is included in the Summary Compensation Table in the “Executive
Compensation” section of this Proxy Statement. Neither Mr. Katz nor Ms. Lynch receive any additional compensation for their service on the Board.
Consists of non-employee director annual retainers, and, if applicable, lead director fees, committee chair fees, and committee member fees. Cash
compensation paid to each director in fiscal 2023 was as follows:
Committees
Audit
Compensation
Nominating
&
Governance
Executive
Committee
Service
($)
Committee
Service
($)
Committee
Service
($)
Committee
Service
($)
—
—
15,000
—
—
15,000
25,000
15,000
10,000
20,000
—
10,000
10,000
—
10,000
— —
— —
—
—
—
—
—
—
10,000
15,000
10,000
10,000
—
10,000
Board of
Directors
Board
Service
($)
75,000
75,000
75,000
75,000
75,000
115,000
75,000
75,000
Total
($)
85,000
95,000
90,000
85,000
85,000
155,000
130,000
100,000
Susan L. Decker
Nadia Rawlinson
John T. Redmond
Michele Romanow
Hilary A. Schneider
D. Bruce Sewell
John F. Sorte
Peter A. Vaughn
The amounts in this column represent the aggregate grant date fair value of RSUs granted during fiscal 2023 computed in accordance with
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718.
All other compensation for fiscal 2023 includes the following:
30
Susan L. Decker
Nadia Rawlinson
John T. Redmond
Michele Romanow
Hilary A. Schneider
D. Bruce Sewell
John F. Sorte
Peter A. Vaughn
Charitable
Donations
($)(a)
Company-paid Lodging, Ski
School Privileges and
Discretionary Spending on
Goods and Services
($)(b)
Total
($)
—
—
—
—
—
—
—
—
—
—
12,980
12,980
—
—
—
—
—
—
—
—
—
—
14,074
14,074
(a)
(b)
Represents the value of vacation packages donated to charity on behalf of a director under the Company’s charitable donations program. See
below under “Limited Director Perquisites and Personal Benefits” for a description of this program.
Represents the amounts reported during fiscal 2023 that were used by a director towards lodging, ski school privileges and discretionary
spending on services or goods at our properties for personal use under the Company’s Director Perquisite Fund Program. See below under
“Limited Director Perquisites and Personal Benefits” for a description of this program. In accordance with SEC rules, the value of these
benefits is measured on the basis of the estimated aggregate incremental cost to the Company for providing these benefits, and perquisites
and personal benefits are not reported for any director for whom such amounts were less than $10,000 in the aggregate for the fiscal year.
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
As of July 31, 2023, Ms. Decker held 1,071 unvested RSUs.
As of July 31, 2023, Ms. Rawlinson held 1,071 unvested RSUs.
As of July 31, 2023, Mr. Redmond held and 1,071 unvested RSUs.
As of July 31, 2023, Ms. Romanow held 1,071 unvested RSUs.
As of July 31, 2023, Ms. Schneider held 1,071 unvested RSUs.
As of July 31, 2023, Mr. Sewell held 1,071 unvested RSUs.
As of July 31, 2023, Mr. Sorte held 1,071 unvested RSUs.
As of July 31, 2023, Mr. Vaughn held 1,071 unvested RSUs.
DIRECTOR CASH COMPENSATION
All of our non-employee directors receive annual cash fees, payable in quarterly installments. The annual cash retainer for each
Board member is $75,000 and no additional per meeting fees are paid. In addition, the Lead Director of the Board receives an additional
$40,000 per year and the Chairperson of the Audit Committee receives an additional $25,000 per year. Each other Audit Committee
member receives an additional $15,000 per year, the Chairperson of the Compensation Committee receives an additional $20,000 per
year, the Chairperson of the Nominating & Governance Committee receives an additional $15,000 per year, and each other
Compensation Committee member and Nominating & Governance Committee member receives an additional $10,000 each per year.
Members of the Executive Committee receive an additional $10,000 per year. A non-executive Chairperson of the Board would receive
an additional annual retainer of $50,000, but we currently have an Executive Chairperson, and he is not entitled to this retainer.
All directors received reimbursement of their reasonable travel expenses in connection with their service.
DIRECTOR EQUITY COMPENSATION
The Company provides its non-employee directors with an annual grant of restricted share units (“RSUs”) as determined each year
by the Compensation Committee. The RSUs vest on the first anniversary of the grant date. For fiscal 2023, each non-employee director
received RSUs with a grant date value of $220,283, consisting of 1,071 RSUs granted on September 29, 2022. The aggregate grant date
fair value of these RSUs is set forth under the “Stock Awards” column of the Director Compensation Table and described in footnote 3
above.
LIMITED DIRECTOR PERQUISITES AND PERSONAL BENEFITS
Non-employee directors receive benefits consisting of lodging, ski school privileges and discretionary spending on services or
goods at our resorts for personal use in accordance with the terms of the Company’s Director Perquisite Fund Program. Each director is
entitled to an annual $40,000 allowance to be used at the Company’s resorts in accordance with such program, under which directors
may draw against the account to pay for services or goods at the market rate. Unused funds in each director’s account at the end of each
fiscal year are forfeited. In accordance with SEC rules, the value of these benefits is measured on the basis of the estimated aggregate
incremental cost to the Company. For this purpose, perquisites do not include benefits generally available on a non-discriminatory basis
to all of our employees, such as skiing privileges.
31
In addition, each year we allow each director to designate one charity as the recipient of a vacation package with a retail value of
no more than $4,000 and to include only the same array of services that are eligible under the Company’s Director Perquisite Fund
Program. We also require that the package be given as part of a public event, dinner or auction and that the Company receive appropriate
credit and marketing presence.
STOCK OWNERSHIP GUIDELINES FOR NON-EMPLOYEE DIRECTORS
Each non-employee director must own shares of our common stock equal to the greater of five times his or her annual cash retainer
for Board service or $375,000 in value within five years of the date such director is elected or appointed to the Board. Directors are not
permitted to sell any shares of common stock (except to pay the exercise price of a particular equity grant, if any, or taxes generated as
a result of equity grants) until such time as the ownership guidelines have been satisfied and then only to the extent that such sales do
not reduce such director’s ownership below the threshold requirement. Shares of common stock, stock owned in a directed retirement
plan or IRA and the intrinsic value of vested equity grants count as stock ownership for purposes of these guidelines.
DELINQUENT SECTION 16(a) REPORTS
Section 16(a) of the Exchange Act requires our directors and executive officers, and persons who beneficially own more than 10%
of our common stock, to file reports of beneficial ownership and changes in beneficial ownership with the SEC. To our knowledge,
based solely on a review of the reports filed by or on behalf of our directors and executive officers and written representations from
these persons that no other reports were required, we believe that during fiscal 2023 our directors, executive officers, and holders of
more than 10% of our common stock filed the required reports on a timely basis under Section 16(a), except Ms. Decker who did not
timely report 76 shares gifted in December 2021 due to an administrative error.
TRANSACTIONS WITH RELATED PERSONS
RELATED PARTY TRANSACTIONS POLICY AND PROCEDURES
We have adopted a written Related Party Transactions Policy that sets forth the Company’s policies and procedures regarding the
identification, review, consideration and approval of “related party transactions.” For purposes of our policy only, a “related party
transaction” is a transaction, contract, agreement, understanding, loan, advance, or guarantee (or any series of similar transactions or
arrangements) in which the Company and any “related person” are participants involving an amount that exceeds $120,000. Transactions
involving compensation for services provided to the Company solely in their capacity as an officer or director by a related person are
not covered by this policy. A related person is any executive officer, director, or more than 5% stockholder of the Company, or any
immediate family member of an executive officer or director, including any entity in which such persons are an officer or 10% or greater
equity holder.
Under the policy, where a transaction has been identified as a related party transaction, management must present information
regarding the proposed related party transaction to the Chairperson of the Audit Committee, the full Audit Committee, or the Board for
consideration and approval, depending upon the size of the transaction involved. In considering related party transactions, the Audit
Committee takes into account the fairness of the proposed transaction to the Company and whether the terms of such transaction are at
least as favorable to the Company as it would receive or be likely to receive from an unrelated third party in a comparable or substantially
comparable transaction.
To ensure that our existing procedures are successful in identifying related party transactions, the Company distributed
questionnaires to its directors and executive officers shortly following the end of the fiscal year which included, among other things,
inquiries about any transactions they have entered into with us.
During fiscal 2023 and through the date of this Proxy Statement, there were no related party transactions under the relevant standards
described above.
32
COMPENSATION DISCUSSION AND ANALYSIS
EXECUTIVE COMPENSATION
This Compensation Discussion and Analysis, or CD&A, describes our executive compensation program, the various components
of our program, and the compensation-related decisions made for fiscal 2023 with respect to our named executive officers (“NEOs”).
For purposes of this CD&A and the compensation tables and narratives that follow, the NEOs for fiscal 2023 were:
• Kirsten A. Lynch, Chief Executive Officer (“CEO”)
• Robert A. Katz, Executive Chairperson
• Angela A. Korch, Executive Vice President and Chief Financial Officer1
• Michael Z. Barkin, Former Executive Vice President and Chief Financial Officer1
•
James C. O’Donnell, Former President – Mountain Division2
• David T. Shapiro, Executive Vice President, General Counsel and Secretary
• Ryan Bennett, Former Senior Vice President and Chief Marketing Officer3
1.
2.
3.
Ms. Korch assumed the role of Executive Vice President and Chief Financial Officer as of December 22, 2022, when she succeeded Mr. Barkin
in the position.
Effective March 3, 2023, Mr. O’Donnell is no longer with the Company.
Effective October 20, 2023, Mr. Bennett is no longer with the Company.
Leadership Transitions
Angela A. Korch assumed the role of Executive Vice President and Chief Financial Officer, effective December 22, 2022,
succeeding Michael Z. Barkin. Mr. Barkin left after nearly a decade in the role to take time to pursue personal opportunities. Ms. Korch
previously worked at the Company from 2010 through 2020, and held several successive leadership roles during that time, including
Vice President of Corporate & Mountain Finance.
On March 2, 2023, the Company announced that effective March 3, 2023, James C. O’Donnell would no longer be with the
Company, and that Bill Rock, the former Executive Vice President, Mountain Operations and Chief Operating Officer of the Rocky
Mountain region, would assume the role of President of the Mountain Division, effective May 1, 2023.
On October 16, 2023, the Company announced that effective October 20, 2023, Ryan Bennett would no longer be with the
Company.
Company Performance Highlights
• Our fiscal 2023 total net revenue increased $363.5 million, or 14.4%, to $2,889.4 million. Net income attributable to Vail
Resorts, Inc. was $268.1 million for fiscal 2023 compared to net income attributable to Vail Resorts, Inc. of $347.9 million
for fiscal 2022. The decrease was primarily attributable to a large gain on the disposal of fixed assets in the prior year, and
an increase in fiscal 2023 expense associated with a change in the estimated fair value of the contingent consideration
liability related to our Park City resort lease. Resort Reported EBITDA was $834.8 million for fiscal 2023, compared to
Resort Reported EBITDA of $836.9 million for fiscal 2022.
• Through September 22, 2023, our North American ski season pass sales increased approximately 7% in units and 11% in
sales dollars as compared to the prior year through September 23, 2022.
• During fiscal 2023, we made significant investments in employee wages and benefits including (i) the increase of
minimum wage for North American employees to $20 per hour, (ii) a substantial investment in our human resource
department to support more normalized staffing and deliver enhanced employee experience and a new frontline leadership
development program, (iii) a new mental health program available for all employees, (iv) expanded reproductive care, (v)
33
the establishment of a Flexible Remote Work policy which allows corporate employees to permanently work from any
state in which we currently operate, and (vi) new employee benefits, including a 40% discount for retail and rental gear.
• We achieved normal staffing levels at our mountain resorts for the 2022/2023 North American ski season, which enabled
our resorts to deliver a strong guest experience resulting in a significant improvement in guest satisfaction scores that
exceeded pre-COVID levels at our destination mountain resorts.
• We have continued to demonstrate the stability and strength of our business model and to execute on our long-term business
strategies, including:
o
In August 2022, we closed on our purchase of a majority stake in Andermatt-Sedrun in Switzerland, marking the
Company’s first strategic investment in, and opportunity to operate, a ski resort in Europe.
o During fiscal 2023, we repurchased approximately 2.2 million shares of our common stock, or 5.4% of shares
outstanding, at an average price of approximately $229 for a total of $500 million. Additionally, we increased our
quarterly dividend by approximately 8% during fiscal 2023 to $2.06 per share.
o We plan to complete our calendar year 2023 capital plan of $180 million to $185 million, excluding one-time
investments related to integration activities, deferred capital associated with previously delayed projects,
reimbursable investments associated with insurance recoveries, and growth capital investments at Andermatt-
Sedrun.
o We continue to be disciplined stewards of our capital and remain committed to continuous investment in our
people, strategic, high-return capital projects, strategic acquisition opportunities, and returning capital to our
stockholders through our quarterly dividend and share repurchase program.
The leadership and dedication of our executive management team has been essential to delivering these strategic and operational
achievements.
Executive Summary of our Compensation Program
Our executive compensation program, which is grounded in the principle of pay-for-performance, is intended to reward our
executive officers for sustained, high-level performance over the short and long-term as demonstrated by measurable, company-wide
performance metrics and individual contributions that are consistent with our overall growth strategy and achievement of goals. We
compensate our executive officers with a combination of cash compensation (in the form of base salary and annual cash incentive
compensation) and equity awards, as well as a modest amount of benefits and perquisites. Our compensation program has been structured
to enhance our ability to achieve our short-term and long-term strategic goals and to retain and motivate our executive officers and
senior management to achieve such goals.
Our Executive Compensation Program Emphasizes Pay-for-Performance
The primary objective of our executive compensation program is to emphasize pay-for-performance by incentivizing our executive
officers to drive superior results and generate stockholder value. We accomplish this objective in the following ways:
• Annual Incentive Awards. Our Management Incentive Plan (“MIP”), which provides for the award of annual cash incentive
compensation, referred to in this CD&A as a “MIP award,” is intended to focus our executive officers on the key corporate
financial metrics that we believe drive our best results. The Compensation Committee selected Resort Reported EBITDA
(earnings before interest, taxes, depreciation, and amortization, as reported for our Mountain and Lodging segments combined)
as the primary performance metric for the MIP. The NEOs’ annual cash incentive fluctuates with our performance and the
achievement of our annual goals as established by the Compensation Committee.
• Long-Term Equity Awards. A significant portion of our NEOs’ total annual compensation opportunity is in the form of long-
term equity incentive compensation, including share appreciation rights (“SARs”) and restricted share units (“RSUs”), which
generally vest ratably over three years. Value for each of SARs and RSUs fluctuates with our stock price, and SARs only have
value if the share price exceeds the exercise price. Consistent with of our pay-for-performance philosophy and to align the
interests of our CEO with our stockholders, the Compensation Committee made approximately 50% of our CEO’s annual
equity grant in the form of SARs with an exercise price that is 10% greater than the closing price of our common stock on the
34
grant date (“Premium SARs”). For fiscal 2023, the Compensation Committee granted Ms. Lynch long-term equity value
consisting of approximately 50% Premium SARs and 50% time-based vesting RSUs.
• High Percentage of Compensation
significant percentage of our NEOs’
compensation is tied to incentives or appreciation in our stock price, and as executive officers attain greater levels of
responsibility, the percentage of their total target compensation that is variable or “at-risk” increases, and the percentage that
is fixed decreases. Our commitment to emphasizing variable and “at-risk” compensation is illustrated by the following charts
for fiscal 2023:
is Variable or “At-Risk.” A
CEO Fiscal 2023 Total Target Direct
Compensation
Other NEO Fiscal 2023 Total Target
Direct
Compensation (1)
15.4%
15.4%
Base
Salary
Target
Annual
Incentive
Long-
Term
Equity
Incentive
32.9%
55.9%
11.2%
Base
Salary
Target
Annual
Incentive
Long-
Term
Equity
Incentive
69.2%
(1) Excludes compensation for Mr. Barkin and Mr. O’Donnell.
Our Executive Compensation Program is Supported by Our Stockholders
At our annual meeting of stockholders held on December 7, 2022, approximately 97% of the votes cast on the proposal were voted
in support of the advisory resolution to approve the compensation of our NEOs. After considering the results of this vote, the
Compensation Committee concluded that there is strong stockholder support of our executive compensation program and its emphasis
on pay-for-performance. As a result, the Compensation Committee determined to maintain the current executive compensation program.
At our 2017 annual meeting, our stockholders expressed a preference that advisory votes on executive compensation occur every
year, as recommended by our Board of Directors. Consistent with this preference, our Board of Directors has implemented an advisory
vote on executive compensation every year. Pursuant to the SEC rules, we are submitting a proposal to stockholders (“Proposal 4”) for
an advisory vote on the frequency of future advisory votes on executive compensation in this proxy statement, and we have
recommended that shareholders vote to continue to hold annual advisory votes on executive compensation.
Effective Corporate Governance Reinforces Our Executive Compensation Program
The following features of our executive compensation program are evidence of our commitment to good corporate governance
practices:
35
WHAT WE DO
WHAT WE DON’T DO
Annual Advisory Vote
to Approve Executive
Compensation. We provide our stockholders with an annual
opportunity to vote on an advisory basis to approve the
compensation paid to our NEOs as disclosed in this Proxy
Statement.
Independent Compensation Committee. Our executive
compensation program
the
Compensation Committee, which
solely of
independent directors and makes all final determinations
regarding the compensation of our NEOs.
reviewed annually by
consists
is
Significant Portion of Executive Compensation Is Variable
and At-Risk. A significant portion of our NEOs’
compensation is comprised of elements of variable and at-risk
compensation that are tied to defined corporate and individual
performance goals or stock price performance. Our three-year
average at-risk compensation is approximately 83.0% of our
CEO’s total compensation and approximately 69.4% of our
other NEOs’ total compensation. In addition, approximately
50% of the long-term equity incentives granted to our CEO
each fiscal year consist of Premium SARs that have an exercise
price that is 10% greater than the closing price of our common
stock on the grant date.
Significant Portion of Executive Compensation Delivered
in the Form of Long-Term Equity-Based Incentives. A
significant portion of our NEOs’ compensation is comprised of
long-term equity incentive awards, consisting of SARs and
RSUs, which generally vest over three years. In the last three
fiscal years, approximately 73.1% of our CEO’s and 61.9% of
other NEOs’ total compensation as reported in the Summary
Compensation Table, has on average been in the form of long-
term equity-based incentives.
Market Alignment of Compensation but with Greater
Emphasis on At-Risk Compensation. To attract and retain
talented executive officers, we align targeted compensation
opportunity with comparable levels to our peer group, but we
generally make at-risk compensation a more significant
component.
Independent Compensation Consultant. The Compensation
Committee periodically retains and receives advice from an
independent compensation consultant.
Clawback Policy. The Compensation Committee has adopted
a clawback policy that, in the event of a financial restatement,
incentive
requires us
compensation from executive officers that was paid based on
the misstated financial information.
to recoup cash or equity-based
Stock Ownership Guidelines. Our executive officers are
subject to meaningful stock ownership guidelines, requiring
that they hold a meaningful amount of our common stock,
which helps to align their interests with those of our
stockholders. Additionally, until the applicable guideline is
achieved for an executive, he or she is required to retain at least
No Excessive Perquisites. We provide our executive officers
with limited perquisites, which consist primarily of credit at our
owned and operated properties designed to incentivize our
executive officers to visit and use our resorts in order to make
informed decisions regarding our business and the guest
experience and provide relevant feedback concerning our
properties and services.
No Tax Gross-Ups on Perquisites, Except for Standard
Relocation Benefits. We do not pay tax gross-ups on the limited
perquisites that our executive officers receive, except in the case
of standard relocation benefits available to all similarly situated
employees.
No Excise Tax Gross-Ups. We do not pay excise tax gross-ups
in connection with the change in control arrangements provided
to our executive officers.
No Automatic Salary Increases or Guaranteed Bonuses. We
do not guarantee annual salary increases or bonuses for any
NEO and no employment agreement with any NEO contains
such provisions.
No “Single Trigger” Automatic Cash Payments, Benefits or
Equity Vesting Upon a Change in Control. The change in
control arrangements provided to our executive officers require
a termination event (including a termination by the executive for
“good reason”) following a change in control before any cash-
based payments or benefits are triggered. Additionally, our
CEO’s potential cash severance is two times her base salary plus
prior year bonus. For equity awards granted in fiscal 2021 and
beyond, in the event of a change in control, equity will only have
accelerated vesting if an award is not assumed or replaced or in
the event of a termination without cause within 12 months of a
change in control event.
No Hedging or Pledging. Under our Insider Trading
Compliance Program, senior level employees, including our
executive officers, as well as our directors, are prohibited from
conducting short sales or using derivatives or other instruments
designed to hedge against the risk of ownership of our securities
or otherwise offset any decrease in the market value of our
securities, including put and call options and collar transactions.
The Insider Trading Compliance Program also prohibits
directors and senior level employees, including our executive
officers, from pledging shares of the Company’s stock.
No Equity Repricing. We expressly prohibit the repricing of
underwater SARs without stockholder approval.
No Pension Plans or SERPs. We do not provide our executive
officers with tax-qualified defined benefit pension plans or
supplemental executive retirement plans.
36
WHAT WE DO
75% of the net shares received from vesting of RSUs or
exercise of SARs.
WHAT WE DON’T DO
Use of Tally Sheets. The Compensation Committee uses tally
sheets that provide information as to all compensation that is
potentially available to our NEOs when evaluating executive
compensation.
the assistance of our
Annual Risk Assessment. The Compensation Committee,
independent compensation
with
consultant, annually conducts a compensation risk assessment
and, for fiscal 2023, determined
the Company’s
compensation policies and practices, or components thereof, do
not create risks that are reasonably likely to have a material
adverse effect on the Company.
that
Key Objectives of Our Executive Compensation Program
Our executive compensation program focuses on the following three key objectives:
• Emphasizing Pay-for-Performance. Emphasize pay-for-performance by tying annual and long-term compensation incentives
to achievement of specified performance objectives or overall stock performance.
• Attracting, Retaining, and Motivating. Attract, retain, and motivate talented executives who will determine our long-term
success. We have structured our executive compensation program to be competitive with compensation paid by companies in
the same market for executive talent.
• Rewarding Contributions and Creating Long-Term Value. We have structured our compensation program to recognize and
reward contributions of all employees, including executive officers, in achieving strategic goals and business objectives, while
aligning the program with stockholder interests.
Compensation Decision Process
Role of the Compensation Committee
The Compensation Committee is responsible for determining the compensation of our executive officers, including our NEOs. In
appropriate circumstances, such as when new market data supports a market adjustment, the Compensation Committee, in its sole
discretion, considers the recommendations of our CEO in setting executive compensation, including the compensation of the other
NEOs. The Compensation Committee, however, makes all final determinations regarding these awards (subject to any matters requiring
approval by the Board of Directors and/or our stockholders), and no executive officer is involved in the deliberations or the determination
with respect to his or her own compensation. The non-management directors’ practice is to meet in executive session following the
Board meeting in September of each year to review and ratify the Compensation Committee’s annual review of the CEO.
Role of Management
For executive officers other than herself, our CEO makes pay recommendations to the Compensation Committee based on
competitive market data and an assessment of individual performance. Her recommendations to the Compensation Committee establish
appropriate and market-competitive compensation opportunities for our executive officers, consistent with our overall pay philosophy.
The Compensation Committee reviews and discusses the recommendations, in conjunction with the Compensation Committee’s
independent compensation consultant, in making compensation decisions or recommendations to the full Board. No executive officer
participates directly in the final deliberations or determinations regarding his or her own compensation package.
Role of the Independent Compensation Consultant
The Compensation Committee retains the services of Aon as its independent compensation consultant, in accordance with the
Compensation Committee’s charter. Aon reports directly to the Compensation Committee. The Compensation Committee retains sole
authority to hire or terminate Aon, approves its professional fees, determines the nature and scope of its services and evaluates its
performance. A representative of Aon attends Compensation Committee meetings, as requested, and communicates with the
37
Compensation Committee chair between meetings. The Compensation Committee makes all final decisions regarding executive
compensation.
Aon’s specific compensation consultation roles include, but are not limited to, the following:
•
•
•
•
•
•
•
advising the Compensation Committee on director and executive compensation trends and regulatory developments;
developing a peer group of companies for determining competitive compensation rates;
providing a total compensation study for executives and independent non-employee board members against peer companies;
providing advice to the Compensation Committee on corporate governance best practices, as well as any other areas of concern
or risk;
serving as a resource to the Compensation Committee chair for meeting agendas and supporting materials in advance of each
meeting;
reviewing and commenting on proxy statement disclosure items, including preparation of the CD&A; and
advising the Compensation Committee on management’s pay recommendations.
The Compensation Committee has assessed the independence of Aon as required by the NYSE listing standards. The Compensation
Committee reviewed its relationship with Aon and considered all relevant factors, including those set forth in Rule 10C-1(b)(4)(i)
through (vi) of the Exchange Act. Based on this review, the Compensation Committee concluded that there are no conflicts of interest
raised by the work performed by Aon.
Role of Peer Companies and Competitive Market Data
To achieve our executive compensation objectives, the Compensation Committee periodically analyzes market data and evaluates
individual executive performance with a goal of setting compensation at levels the Compensation Committee believes, based on its
general business and industry knowledge and experience, are comparable with executives in other companies operating in the leisure,
travel, gaming, and hospitality industries, which we refer to as our “peer group.” We face a somewhat unique challenge in establishing
a peer group because few publicly-traded companies participate in more than one of our operating segments. Thus, when evaluating
executive compensation, the Compensation Committee includes in our peer group a variety of leisure, travel, gaming, and hospitality
companies with whom we may compete for executive talent.
The following peer group development criteria were used to assist with peer group development for the fiscal 2023 pay study:
•
Industries: similar to the Company in the leisure, travel, gaming, and hospitality industries;
• Company size: approximately 0.4 times to 3 times the Company's annual revenues, with a secondary focus on market cap;
• Peers: companies using the Company in their compensation peer group;
• Peers of peers: companies used in the peer groups of potential peer companies; and
• Competitors: companies that compete with the Company for business and management talent.
When performing its annual executive compensation review, the Compensation Committee has sole authority to engage an
independent compensation consultant to assist in obtaining market data and analyzing the competitive nature of our compensation
programs. In August 2022, the Compensation Committee engaged Aon to conduct a competitive market study to assist with fiscal 2023
pay decisions. The study included market data from Aon’s proprietary global compensation survey for similar-sized companies, and
proxy disclosures for publicly-traded peer companies from the leisure, travel, gaming, and hospitality industries, as approved by the
Compensation Committee. Our peer group approved by the Compensation Committee to assist with fiscal 2023 compensation decisions
included:
Boyd Gaming Corporation
Cedar Fair, L.P.
Choice Hotels International
Penn National Gaming Inc.
Red Rock Resorts Inc.
Six Flags Entertainment Corporation
38
Churchill Downs Inc.
Hilton Grand Vacations
Hyatt Hotels Corporation
Marriott Vacations Worldwide
Norwegian Cruise Line Holdings Ltd
Travel + Leisure Co.
Wyndham Hotels & Resorts, Inc.
Wynn Resorts Ltd.
Extended Stay America, Inc. was removed from the fiscal 2023 peer group because they became privately-held. Hilton Grand
Vacations and Choice Hotels International were added to the fiscal 2023 peer group because of their similar industry focus and
comparable annual revenues.
The Compensation Committee uses competitive compensation data from the annual total compensation study of peer companies
and survey data to inform its decisions about overall compensation opportunities and specific compensation elements. Additionally, the
Compensation Committee uses multiple reference points when establishing targeted compensation levels. The Compensation Committee
does not benchmark specific compensation elements or total compensation to any specific percentile relative to the peer companies or
the broader United States market. Instead, the Compensation Committee applies judgment and discretion in establishing targeted pay
levels, taking into account not only competitive market data, but also factors such as Company, business and individual performance,
scope of responsibility, critical needs and skill sets, leadership potential, and succession planning. The Compensation Committee also
evaluates the compensation programs of other companies which, while not in the peer set, have similar characteristics of the Company’s
business model, complexity, and sophistication.
Role of Tally Sheets and Company-Specific Factors
In addition to considering market data with respect to executive compensation practices of companies within our peer group, the
Compensation Committee takes into account individual performance, our retention needs, our relative performance, and our own
strategic goals. We also conduct an annual review of the aggregate level of our executive compensation program as part of our annual
budget review and annual performance review processes, which includes determining the operating metrics and non-financial elements
used to measure our performance and to compensate our executive officers.
The Compensation Committee, in conjunction with data and recommendations provided by our independent compensation
consultant in any given year, also annually analyzes tally sheets prepared for each NEO. These tally sheets present the dollar amount of
each component of the NEO’s compensation, including current cash compensation (base salary and the MIP award for the applicable
fiscal year), perquisites, and the value of equity awards previously granted to the NEO as of the applicable fiscal year end, as well as
the amounts that would have been payable to the NEO if employment had been terminated under various scenarios as of the end of the
most recently completed fiscal year. The Compensation Committee uses these tally sheets, which provide substantially the same
information as is provided in the tables included in this Proxy Statement, together with peer group data, primarily for purposes of
analyzing our NEOs’ total compensation and determining whether it is appropriate to adjust the compensation mix for our NEOs on a
going-forward basis. In its most recent review of tally sheets, the Compensation Committee determined that total compensation amounts
for our NEOs remained consistent with our executive compensation philosophy and objectives.
Determination of CEO Compensation
At its first regularly scheduled meeting of the fiscal year, the Compensation Committee reviews and evaluates CEO performance,
and determines performance achievement levels, for the prior fiscal year. The Committee also reviews competitive compensation data.
Following review and discussion of the Company's financial performance at the first regularly scheduled Board meeting of the fiscal
year, the Committee approves the CEO’s compensation.
Elements of Compensation
Our executive compensation program consists of the following elements, which are reviewed annually by the Compensation
Committee and may be adjusted to align with market standards:
Compensation
Element
Base Salary
Objective
Key Features
To attract and retain
executives with a proven
track record of performance
• Based primarily on the scope of an executive officer’s
responsibilities, taking into account individual performance and
experience, competitive market compensation for similar
positions, as well as seniority of the individual, our ability to
replace the individual, the impact the individual’s loss would
have on the Company, and other factors which may be deemed to
be relevant by the Compensation Committee.
39
Compensation
Element
Annual MIP
Award
Objective
Key Features
• No guaranteed increases to base salary.
To motivate achievement of
annual financial, operational,
and strategic goals and
achievement of individual
annual performance
objectives
• For each fiscal year, Company and individual performance
elements drive two different aspects of the MIP: (1) the aggregate
amount of funds available under the MIP (driven by Company
performance), and (2) the specific allocation of awards to
participants under the MIP (driven by Company performance for
Ms. Lynch and individual performance for the other NEOs).
Equity Incentive
Awards
To align our executives’
interests with our
stockholders’ long-term
interests
Limited
Perquisites
To incentivize executives to
use the Company’s services
in order to help them in their
performance by allowing
them to evaluate our resorts
and services based upon
firsthand knowledge
• MIP awards are paid in cash only.
• Equity awards are granted under our stockholder-approved 2015
Omnibus Incentive Plan, referred to in this Proxy Statement as
the 2015 Plan.
• For fiscal 2023, we granted time-based vesting RSUs and SARs
to provide a balanced portfolio of potential wealth accumulation
and alignment to our stockholders’ long-term investment
interests. Value in both programs fluctuates with our stock price,
and SARs only have value if the share price exceeds the exercise
price.
• SARs are granted with an exercise price of no less than the
closing price of our common stock on the grant date. For Ms.
Lynch, we grant Premium SARs with the exercise price set 10%
higher than the closing value on the grant date. As such,
stockholders realize a 10% return before Ms. Lynch may
recognize personal gains from the exercise of any Premium
SARs.
• For fiscal 2023, the Compensation Committee awarded Ms.
Lynch her long-term equity incentive awards as approximately
50% of the award value in RSUs and approximately 50% of the
award value in Premium SARs, which consisted of 12,102 RSUs
and 47,125 Premium SARs, each vesting annually over three
years.
• For equity awards granted in fiscal 2021 and beyond, in the event
of a change in control, equity vesting will only accelerate if an
award is not assumed or replaced or in the event of a “double
trigger” termination without cause within 12 months of a change
in control event. Accordingly, no outstanding unvested awards
provide for accelerated vesting if such awards are assumed or
replaced, or in the event of a termination without cause.
•
Includes our Executive Perquisite Fund Program, under which
certain of our senior management receive an annual allowance,
based on executive level, to be used at the Company’s owned or
operated resorts. Executives may draw against the account to pay
for services or goods at the market rate for the applicable resort
or services. Amounts used by executives are taxed as ordinary
income, like other compensation. Unused funds at the end of each
fiscal year are forfeited.
• All Company employees enjoy skiing privileges, including our
executives.
2023 Compensation Decisions
The Compensation Committee approved the following fiscal 2023 compensation program for Ms. Lynch:
• Annual base salary of $1,060,000;
40
• Annual MIP target equal to 100% of her base salary, subject to the terms and conditions of the Company’s MIP;
• Annual equity target of approximately $4,770,000 comprised of 50% RSUs and 50% Premium SARs with an exercise price at
a 10% premium to market, which vest in three equal installments beginning on the first anniversary of the grant date; and
• Participation in the Company’s Executive Perquisite Fund Program with an annual allowance of $80,000 per year to be used
at the Company’s owned or operated resorts.
For fiscal 2023, the Compensation Committee approved a salary of $1,060,000 for Mr. Katz, our Executive Chairperson, and target
equity awards under the 2015 Plan of approximately $1,060,000. The equity awards were comprised of 50% RSUs and 50% SARs, each
of which vest in three equal installments beginning on the first anniversary of the grant date. Mr. Katz is not eligible to participate in the
Company’s MIP.
Base Salary. The Compensation Committee generally reviews and adjusts base salaries annually at its September committee
meeting, with new salaries effective in mid-October.
Fiscal 2023 approved salaries reflect a recognition of individual performance, a thorough review of competitive market data from
the Aon executive compensation study, and the overall growth and results of the Company in fiscal 2022.
Fiscal 2022
Approved
Base Salary
Fiscal 2023
Approved Base
Salary
% Change in Fiscal
2023
Approved Base
Salary versus Fiscal
2022
Name
6%
Kirsten A. Lynch . . . . . . . . . . . . . . . $ 1,000,000 $ 1,060,000
6%
$ 1,060,000
Robert A. Katz . . . . . . . . . . . . . . . .
Angela A. Korch . . . . . . . . . . . . . . . $ — $ 550,000 N/A
Michael Z. Barkin1 . . . . . . . . . . . . .
0%
$ 625,000
James C. O’Donnell2 . . . . . . . . . . .
6%
$ 540,000
6%
$ 575,000
David T. Shapiro . . . . . . . . . . . . . . .
18%
Ryan Bennett . . . . . . . . . . . . . . . . . . $ 400,000
625,000
572,400
609,500
472,760
$ 1,000,000
$
$
$
$
1.
2.
Mr. Barkin’s 2023 fiscal year salary reflects his approved full year base salary. Mr. Barkin’s actual salary
through the date of his departure from the Company on December 31, 2022 was $287,260.
Mr. O’Donnell’s base salary for fiscal 2023 reflects his approved full year base salary. Mr. O’Donnell’s
actual salary through the date of his departure from the Company was $347,261.
Annual MIP Awards. Certain of our NEOs were eligible to receive an annual MIP award for fiscal 2023 based upon the Company’s
performance and for all NEOs other than Ms. Lynch, the NEO’s individual performance during fiscal 2023. As Executive Chairperson,
Mr. Katz is not eligible to participate in the MIP. In addition, Messrs. Barkin and O’Donnell were ineligible to receive a MIP award in
fiscal 2023 due to their departures from the Company.
Annual Funding of the MIP. The Compensation Committee has established Resort Reported EBITDA as the primary performance
measure to determine MIP funding. The Compensation Committee bases the Resort Reported EBITDA target on the target set by our
Board annually when approving the Company’s financial budget. In setting the performance measures and goals, the Compensation
Committee considers our past performance, broader economic trends that may impact us in the upcoming year, and our historical
performance against MIP targets.
Please see page 39, 40 and 49 of our Annual Report for information regarding our use of the non-GAAP financial measures
discussed in this CD&A. For a reconciliation of the differences between Resort Reported EBITDA and the most directly comparable
GAAP financial measures, see Appendix A of this proxy statement.
Resort Reported EBITDA Target. For fiscal 2023, the Resort Reported EBITDA target was set at $920 million, which was based
upon our approved budget for fiscal 2023. This target excludes (i) any EBITDA and related acquisition and transaction expenses
associated with any acquisitions completed or signed during fiscal 2023 (other than Andermatt-Sedrun), (ii) the impact of any exercises
of SARs by the CEO or Executive Chairperson during the fiscal year (of which there were none for fiscal 2023), and (iii) the impact of
41
any currency fluctuations on the Company’s results. The Compensation Committee established the performance measure at the
beginning of the fiscal year with the expectation that the target level of performance of these goals would require significant effort and
substantial progress toward our strategic plan goals in light of the business environment at that time.
The following table summarizes funding opportunity from threshold to maximum performance.
MIP Funding for Resort Reported EBITDA
Percentage of Target
Performance Achieved
Less than 80%
80%
90%
95%
100%
110%
120% or greater
Percentage of Annual Target
Funding Level Available under
the MIP
0%
15%
25%
50%
100%
175%
200%
Fiscal 2023 Resort Reported
EBITDA Value
($)
Less than $736.0 million
$736.0 million
$828.0 million
$874.0 million
$920.0 million
$1,012.0 million
$1,104.0 million or greater
In the event our Resort Reported EBITDA for any fiscal year exceeds the specified threshold level, then the MIP is funded at the
appropriate level and each NEO is eligible to receive a MIP award. For achievement between annual target funding level percentages,
the payout is determined by linear interpolation.
Target Annual MIP Awards. The NEOs’ target MIP awards as a percentage of their base salaries was determined based on a
combination of competitive market data for each NEOs’ role and the role’s ability to influence our performance. For fiscal 2023, each
NEO other than Mr. Katz was eligible for an annual MIP award based on a percentage of annual base salary. The following table sets
forth the target annual MIP awards as a percentage of base salary approved by the Compensation Committee at the start of the fiscal
year for each of fiscal 2023 and 2022, and the percentage change in the target from fiscal 2022 to 2023.
2022 Target
Annual MIP
Award as
Percentage of
Base Salary
100%
—
—
75%
75%
50%
42.5%
2023 Target
Annual MIP
Award as
Percentage of
Base Salary
100%
—
75%
—
—
50%
42.5%
% Change
0%
N/A
N/A(1)
N/A
N/A
0%
0%
Name
Kirsten A. Lynch . . . . . . . . . .
Robert A. Katz . . . . . . . . . . .
Angela A. Korch . . . . . . . . . .
Michael Z. Barkin . . . . . . . . .
James C. O’Donnell . . . . . . . .
David T. Shapiro . . . . . . . . . .
Ryan Bennett .... . . . . . . . . . . .
(1) As Ms. Korch assumed the role of Executive Vice President and Chief Financial Officer in December 2022 when she succeeded Mr. Barkin in the position,
the percentage change from fiscal 2022 to fiscal 2023 is not meaningful.
The table below sets forth the threshold, target and maximum awards payable under the MIP for each NEO in fiscal 2023 who was
eligible for an award at the time that the Committee established the NEO’s opportunity:
Name
Kirsten A. Lynch ... . . . . . . . . . . . . .
Robert A. Katz . . . . . . . . . . . . . . . .
Angela A. Korch1 . . . . . . . . . . . . .
Michael Z. Barkin . . . . . . . . . . . . .
James C. O’Donnell ... . . . . . . . . . . .
David T. Shapiro ....... . . . . . . . . . . .
Ryan Bennett ............. . . . . . . . . . . .
Threshold
($)
—
—
--
—
—
—
—
Target
($)
1,060,000
—
412,500
—
—
304,750
200,923
Maximum
($)
2,120,000
—
1,072,500
—
—
792,350
522,400
42
(1) Ms. Korch’s Target and Maximum Opportunities reflect the opportunity values for a full fiscal year, and exclude the impact of proration resulting from
being in the role for only a portion of the actual fiscal year following her appointment to the Executive Vice President and Chief Financial Officer role
in December 2022.
Individual MIP Award Determination. Once funding was established for fiscal 2023, the actual MIP award paid to each NEO was
determined by individual performance achievements against their individual performance objectives. In the case of Ms. Lynch, her
award is based solely on the funded amount of target MIP determined by Company performance because, unlike other NEOs, she is
responsible for all aspects of Company performance. This structure reflects our objective to put more emphasis on individual
performance-oriented compensation, while at the same time requiring that overall Company performance standards are met before MIP
funding can occur. Mr. Katz was not eligible to participate in the MIP, and Messrs. O’Donnell and Barkin were ineligible for MIP
awards for fiscal 2023 due to their departures from the Company.
Achievement of individual performance objectives can result in the NEO receiving a MIP award equal to 0%, 50%, 100%, 120%
or 130% of the funded amount (subject to availability of funds under the MIP) and subject to further adjustments at the discretion of the
Compensation Committee. Individual performance objectives vary depending upon our strategic plan and each NEO’s individual
responsibilities are established at the beginning of each fiscal year, with the expectation in fiscal 2023 that the target level of performance
of these objectives would require significant effort and substantial progress toward the goals of our strategic plan in light of the current
business environment. As a result, the Committee believed that each NEO’s attainment of his or her performance objectives in fiscal
2023 would be moderately likely.
Example. An executive whose MIP award funding is 100% based on Resort Reported EBITDA, earning $300,000 annually with a
target MIP award of 50% of base salary, would have an available MIP award funding of $150,000 for 100% achievement of Resort
Reported EBITDA (100% times 50% salary target times 100% funding), for a total of $150,000 of target funding. However, because
the executive’s total MIP award is determined by the achievement of individual performance objectives, an executive’s ultimate total
MIP award can be paid out in an amount equal to 0%, 50%, 100%, 120% or 130% of the target amount based on individual performance
(subject to availability of funds under the MIP).
Fiscal 2023 Results. In fiscal 2023, we met 91.25% of the Resort Reported EBITDA target, which resulted in a funding level at
31.25% of the target funding level for that component of the funding calculation. Based upon these results and individual performance,
and noting that no adjustments were made based upon individual performance, the Compensation Committee determined the final MIP
award amounts as follows:
Name
Kirsten A. Lynch . . . . . . . . . . . . . .
Robert A. Katz . . . . . . . . . . . . . . . .
Angela A. Korch1 . . . . . . . . . . . . .
Michael Z. Barkin2 . . . . . . . . . . .
James C. O’Donnell3 . . . . . . . . . . . .
David T. Shapiro . . . . . . . . . . . . . .
Ryan Bennett . . . . . . . . . . . . . . . . .
2023 MIP
Award
$331,250
—
$86,367
—
—
$95,234
$62,788
(1) Ms. Korch’s MIP award for fiscal 2023 was pro-rated as a result of being in her role as Executive Vice President and Chief Financial Officer for only a portion
of the full fiscal year 2023.
(2) Mr. Barkin was not eligible for a MIP award for fiscal 2023 due to his departure from the Company on December 31, 2022.
(3) Mr. O’Donnell was not eligible for a MIP award for fiscal 2023 due to his separation from the Company on March 3, 2023.
Long-Term Equity Incentives
Our long-term equity incentive award program is designed to promote long-term Company performance and align each executive’s
interests with stockholder interest, to reward the achievement of long-term goals, and to promote stability and corporate loyalty among
our executives. The Compensation Committee bases awards of long-term equity compensation on a number of factors, including
competitive market practices as determined by our peer group analysis, the information provided by our independent compensation
consultant, the amount of cash compensation that is currently paid to each NEO, each NEO’s level of responsibility, our retention
objectives, and our pay-for-performance philosophy. In general, the Compensation Committee makes long-term equity award
determinations for executive officers in September of each year and typically consults with our CEO in determining the size of grants
to each NEO, other than herself, although the Compensation Committee makes all final determinations. The non-management directors’
practice is to meet in executive session following the Board meeting in September of each year to review and ratify the Compensation
43
Committee’s annual review of the CEO. In fiscal 2023, the Compensation Committee granted long-term equity incentive awards under
the stockholder-approved 2015 Plan.
For fiscal 2023, the Compensation Committee awarded each NEO, other than Mr. Barkin, an equity value based on individual
achievements and performance. The Compensation Committee granted Ms. Lynch her long-term equity for fiscal 2023 as approximately
50% RSU value and approximately 50% Premium SAR value. To further promote retention, the RSUs and SARs granted in fiscal 2023
vest in equal annual installments over a three-year period commencing on the first anniversary date of the grant. As the awards are
inherently tied to the performance of our common stock, we consider a vesting schedule based upon continued service appropriate to
meet the desire for both retention and performance incentive.
The Compensation Committee has structured the mix of long-term and short-term equity awards and the relative weight assigned
to each type to motivate performance against long-term targets, stock price appreciation over the long term and to encourage ownership
and retention while aligning executive officers’ interests with those of our stockholders. The RSUs are complementary to the SARs
because they have upside potential, but deliver some value even during periods of market or stock price underperformance, providing a
retention incentive and reinforcing an ownership culture and commitment to the Company.
The table below shows the number and grant date fair value of the equity awards granted to our NEOs in fiscal 2023.
Name
Kirsten A. Lynch . . . . . . .
Robert A. Katz . . . . . . . .
Angela A. Korch1 . . . . . .
Michael Z. Barkin2 . . . . .
James C. O’Donnell3 . . . .
David T. Shapiro . . . . . . .
Ryan Bennett4 . . . . . . . . . .
. .
RSU Value
($)
2,384,820
529,894
647,3661
—
665,078
865,093
374,808
RSUs
Granted
(#)
12,102
2,689
2,6421
—
3,375
4,390
1,902
SAR
Value ($)
2,384,996
529,965
347,561
—
665,102
865,091
374,965
SARs
Granted
(#)
47,125
9,365
5,000
—
11,753
15,287
6,626
(1) The amount shown includes a sign-on grant for Ms. Korch when she assumed the role of Executive Vice President and Chief Financial Officer in December
2022 when she succeeded Mr. Barkin in the position.
(2) Mr. Barkin did not receive a 2023 equity grant due to his impending departure from the Company on December 31, 2023.
(3) Mr. O’Donnell’s fiscal 2023 equity awards were forfeited upon his separation from the Company on March 3, 2023.
(4) The unvested portion of Mr. Bennett’s fiscal 2023 equity awards was forfeited upon his separation from the Company on October 20, 2023.
Other Executive Compensation Policies and Practices
Perquisites and Other Benefits
We provide the NEOs with certain health and welfare benefits, relocation program benefits, and a tax-qualified 401(k) plan in the
same manner that such benefits have been made available to other salaried employees of the Company. We also pay premiums for
supplemental life insurance and disability insurance on behalf of our NEOs that are consistent with those provided to similarly situated
executives at other companies.
Under our Executive Perquisite Fund Program, we offer the NEOs a specified allowance at our owned and operated properties to
incentivize our executive officers to visit and use our resorts in order to make informed decisions regarding our business and the guest
experience and provide relevant feedback concerning our properties and services. Executives may draw against the credit to pay for
services or goods at the market rate, such as towards lodging, ski school privileges, and discretionary spending on services or goods at
our properties for personal use. Amounts of the fund used by the NEO are taxed as ordinary income, like other compensation. In addition,
the Company also provided each NEO with access to one or more of our private clubs through our quality assessment program, for
which the Company incurs no incremental costs.
The Compensation Committee reviews perquisites in the tally sheets for both appropriateness and effectiveness. However, the
value of any perquisites provided to any of the NEOs is a limited portion of any officer’s compensation.
Clawback Policy
The Compensation Committee has adopted a clawback policy that requires the Company to recoup incentive compensation that
was paid to executive officers based on financial statements that were subsequently restated. The policy provides that in the event of a
material restatement of publicly issued financial results from those previously issued to the public, our Board will review all MIP awards
and equity awards made to executive officers during the three-year period prior to the restatement on the basis of having met or exceeded
44
specific performance targets. If such payments would have been lower had they been calculated based on such restated results, our Board
will recoup the payments in excess of the amount that would have been paid based on the restated results. The Company will review the
clawback policy periodically to ensure compliance with applicable law, NYSE listing standards, and corporate governance best
practices.
Equity Grant Practices
We generally seek to make equity compensation grants in the first quarter following the completion of a given fiscal year. SARs
are granted with an exercise price equal to or higher than the closing market price of our common stock on the grant date, which is the
date the Compensation Committee approves the award. We do not have any specific program, plan, or practice related to timing equity
compensation awards to executives; however, the Compensation Committee generally approves annual awards on the date of the
regularly scheduled first fiscal quarter Board meeting in September, with the grant date being the first business day after the public
release of earnings for the previous fiscal year. Other than grants made in connection with hiring, promotions, or to replace certain new
hire grants once they vest and/or are exercised, equity awards are granted to NEOs at the same time that equity awards are granted to all
other employees who are eligible for such awards.
Stock Ownership Guidelines for Executives
Consistent with our objective of encouraging executive stock ownership to create long-term stockholder value by aligning the
interests of our executives with our stockholders, the Company has adopted executive stock ownership guidelines. Under the guidelines,
our executive officers are expected to hold shares of our common stock equal to multiples of their base salaries as follows:
Name
Executive Chairperson ..........................................
Chief Executive Officer ........................................
Chief Financial Officer..........................................
Presidents ..............................................................
Executive Vice Presidents .....................................
Multiple of Base
Salary
6x
6x
3x
3x
2x
Until an executive achieves the required level of ownership, he or she is required to retain at least 75% of the net shares received as
a result of the vesting of RSUs or restricted stock or the exercise of SARs. Net shares are those that remain after shares are netted to pay
any applicable exercise price and/or statutory tax withholdings. Shares of common stock, stock owned in a directed retirement plan or
IRA, and the intrinsic value of vested equity grants count as stock ownership for purposes of these guidelines.
Policy Prohibiting Hedging and Pledging Transactions
Our Insider Trading Compliance Program prohibits directors and senior level employees, including our executive officers, from
engaging in hedging transactions designed to offset decreases in the market value of the Company’s securities, including engaging in
short sales or investing in other derivatives of the Company’s securities, including put and call options and collar transactions. The
Insider Trading Compliance Program also prohibits directors and senior level employees, including our executive officers, from pledging
shares of the Company’s stock.
Post-Termination Compensation
Pursuant to her employment agreement, Ms. Lynch is entitled to receive severance payments and continuation of certain benefits
upon certain terminations of employment, including certain resignations for “good reason” (as defined in her agreement). Pursuant to
the Company’s executive severance policy, Messrs. Katz and Shapiro and Ms. Korch are entitled to receive severance payments upon
certain terminations of employment, including upon a termination occurring within a limited period of time following a change in control
as more fully described under the heading “Potential Payments Upon Termination or Change in Control” below.
We believe the change in control arrangements provide continuity of management in the event of an actual or threatened change in
control. We also believe that our termination and severance provisions reflect both market practices and competitive factors. Our Board
believed that these severance payments and benefit arrangements were necessary to attract and retain our executives when these
agreements were entered into.
Tax Deductibility of Executive Compensation
Compensation above $1,000,000 is generally non-deductible for federal tax purposes for any person who was (i) the chief executive
officer or chief financial officer at any time during the taxable year, (ii) one of the three highest compensated other executive officers
45
for the taxable year, or (iii) a covered employee under Section 162(m) of the Internal Revenue Code for any taxable year beginning on
or after January 1, 2017. Our Company’s objectives are not always consistent with the requirements for full deductibility. Therefore,
deductibility is not the sole factor used in setting the appropriate compensation levels paid by the Company and decisions leading to
future compensation levels may not be fully deductible under Section 162(m). We believe this flexibility enables us to respond to
changing business conditions or to an executive’s exceptional individual performance.
SUMMARY COMPENSATION TABLE FOR FISCAL 2023
The following table summarizes the total compensation paid or earned by the NEOs for each of the last three fiscal years during
which the officer was a NEO:
Name and Principal
Position
Kirsten A. Lynch
Chief Executive
Officer
Robert A. Katz
Executive
Chairperson and
Former Chief
Executive Officer
Angela A. Korch
Executive Vice
President
and Chief Financial
Officer
Michael Z. Barkin
Former Executive
Vice President and
Chief Financial
Officer
James. C. O’Donnell
Former President -
Mountain
Division
David T. Shapiro
Executive Vice
President,
General Counsel and
Secretary
Ryan Bennett
Former Senior Vice
President and Chief
Marketing Officer
Fiscal
Year
2023
Bonus
Salary
($)(1)
($)
1,050,769 —
885,999 —
541,882 —
1,050,769 —
Option/Share
Appreciation
Right
Awards
($)(3)
2,384,996
2,249,981
1,134,550(7)
529,965
Non-Equity
Incentive Plan
Compensation
($)(4)
331,250
1,118,300
—
—
Stock
Awards
($)(2)
2,384,820
2,249,991
750,293
529,894
1,000,320 —
809,372 —
499,847
1,034,933(6)
499,986
1,936,862(8)
323,654
—
—
—
—
—
647,366
—
—
347,561
—
—
—
—
86,367
—
—
2022
2021
2023
2022
2021
2023
2022
2021
All Other
Compensation
($)(5)
43,467
Total
($)
35,357
33,046
23,051
22,301
33,622
22,099
—
—
6,195,302
6,609,628
2,459,771
2,133,679
2,022,454
3,814,789
1,427,047
—
—
2023
2022
2021
287,260
—
614,936 —
541,882 —
—(9)
952,833
750,293
—
952,909
1,134,550(8)
—
557,016
—
4,819
33,451
20,417
292,079
3,111,145
2,447,142
2023
347,261 —
665,078
665,102
—
598,614
2,276,055
2022
2021
2023
2022
2021
2023
2022
2021
532,885
—
431,051
—
627,186
362,249
627,429
362,219
604,192 —
865,093
865,091
564,539 —
497,596 —
461,566
—
374,289
—
—
—
768,786
549,877
374,808
314,781
—
768,912
549,951
374,965
315,000
—
481,262
221,203
95,234
341,636
232,875
62,788
202,011
—
28,791
13,553
30,209
27,561
16,081
27,800
15,352
—
2,297,553
1,390,275
2,459,819
2,471,434
1,846,380
1,301,927
1,221,433
—
____________________
(1) Amounts shown reflect salary earned during the fiscal year, which differ from base salaries in that year based in part on the timing of previous year annual
adjustments, mid-year promotions, service period and other adjustments in any given year.
(2) Awards consist of RSUs. The amounts represent the aggregate grant date fair value of RSUs granted during the applicable fiscal year computed in accordance
with FASB ASC Topic 718, and do not represent cash payments made to individuals or amounts realized, or amounts that may be realized. Assumptions used in
the calculation of these amounts are included in note 14 to our audited financial statements for fiscal 2023, which are included in our Annual Report.
(3) Awards consist of SARs. The amounts represent the aggregate grant date fair value of SARs granted during the applicable fiscal year computed in accordance
with FASB ASC Topic 718, and do not represent cash payments made to individuals or amounts realized, or amounts that may be realized. Assumptions used in
the calculation of these amounts are included in note 14 to our audited financial statements for fiscal 2023, which are included in our Annual Report.
46
(4)
In September 2023, pursuant to the MIP, as more fully described in the CD&A and based upon the attainment of performance targets previously established by the
Compensation Committee under the MIP, the Compensation Committee approved fiscal 2023 MIP awards for the NEOs other than Messrs. Barkin, Katz, and
O’Donnell. Such amounts were paid in October 2023.
(5) All other compensation for fiscal 2023 includes the following:
Name
Kirsten A. Lynch
Robert A. Katz
Angela A. Korch
Michael Z. Barkin
James C. O’Donnell
David T. Shapiro
Ryan Bennett
____________________
Company
Contributions
Under 401(k)
Savings Plan
($)(a)
Company-paid
Supplemental
Life Insurance
Premiums
($)(b)
9,900
9,900
6,265
382
4,332
—
9,048
900
7,295
525
375
600
900
900
Fiscal
Year
2023
2023
2023
2023
2023
2023
2023
Company-
paid
Supplemental
Disability
Insurance
Premiums
($)(c)
Company-paid
Lodging, Ski
School
Privileges and
Discretionary
Spending on
Goods and
Services
($)(d)
Severance
($)(e)
Total
($)
43,467
23,051
22,099
4,819
—
—
—
—
27,134
—
15,309
—
—
588,308
598,614
22,252
14,025
—
—
30,209
27,800
5,533
5,856
—
4,062
5,374
7,057
3,827
(a) Consists of Company contributions to the NEO’s accounts in the Company’s tax-qualified 401(k) plan.
(b) Consists of premiums paid on behalf of the NEO for supplemental life insurance.
(c) Consists of premiums paid on behalf of the NEO for supplemental disability insurance.
(d)
In fiscal 2023, our NEOs were entitled to participate in our Executive Perquisite Fund Program, under which certain of the Company’s officers receive an
annual allowance based on officer level to be used at the Company’s resorts. For fiscal 2023, annual allowances for NEOs were as follows: CEO and Executive
Chairperson —$80,000; Chief Financial Officer and President – Mountain Division—$50,000; Executive Vice President (excluding the Chief Financial
Officer) —$40,000; and Senior Vice President—$30,000. Executives may draw against the account to pay for services or goods at the market rate. Amounts
of the fund used by the NEO are taxed as ordinary income, like other compensation. The amounts reported include the amounts used by the NEO towards
lodging, ski school privileges and discretionary spending on services or goods at our properties for personal use. In accordance with SEC rules, the value of
these benefits is measured on the basis of the estimated aggregate incremental cost to the Company for providing these benefits, and perquisites and personal
benefits are not reported for any NEO for whom such amounts were less than $10,000 in the aggregate for the fiscal year. In fiscal 2022, the Company also
provided each NEO with access to one or more of our private clubs through our quality assessment program, for which the Company incurred no incremental
costs. NEOs are responsible for the payment of their individual, non-business related expenditures incurred at such clubs, although these expenses would
qualify for reimbursement under the Company’s Executive Perquisite Fund Program if within the NEO’s allowance under that program.
(e) Following his involuntary termination of employment on March 3, 2023, Mr. O’Donnell received the following pursuant to his severance agreement: (i) a
severance payment of $572,400 under the Company’s executive severance plan, (ii) a payment in the amount of $15,908, which was equal to the cost of
COBRA coverage for 6 months, and (iii) active ski passes for the 2022-23 ski season with de minimis value for Mr. O’Donnell and his dependents. Mr.
O’Donnell’s termination and severance payment is more fully described under the heading “Potential Payments Upon Termination or Change in Control”
below.
(6) The amount shown in the “Stock Awards” column for fiscal 2021 includes $1,034,993 as part of Mr. Katz's long-term equity incentive award, which represents
the aggregate grant date fair value of RSUs, based on 4,694 RSUs granted on September 25, 2020. Mr. Katz received a MIP award in the form of Premium SARs
for fiscal 2021.
(7) Represents 8,161 shares in the form of Premium SARs for Mr. Barkin and Ms. Lynch’s fiscal 2021 MIP award and 13,765 shares for each of their fiscal 2021
long-term equity incentive awards.
(8) Represents 19,156 shares in the form of Premium SARs for Mr. Katz’s fiscal 2021 MIP award and 21,371 shares for Mr. Katz’s fiscal 2021 long-term equity
incentive award.
(9) Mr. Barkin did not receive a 2023 equity grant or MIP due to his impending departure from the Company on December 31, 2023.
47
GRANTS OF PLAN-BASED AWARDS IN FISCAL 2023
The following table shows certain information regarding grants of plan-based awards to the NEOs during fiscal 2023:
Estimated Possible Payouts
Under Non-Equity Incentive
Plan Awards(2)
Grant
Date(1)
Threshold
($)(3)
—
Target
($)(4)
1,060,000
Maximum
($)(5)
2,120,000
9/29/2022
9/29/2022
9/29/2022
9/29/2022
2/01/2023
2/01/2023
2/01/2023
9/29/2022
9/29/2022
9/29/2022
9/29/2022
9/29/2022
9/29/2022
9/29/2022
9/29/2022
—
—
—
—
412,500(9)
1,072,500(9)
—
—
—
—
—
—
—
304,750
792,350
—
200,923
522,400
Name
Kirsten A.
Lynch
Robert A.
Katz
Angela A
Korch
Michael Z.
Barkin
James C.
O’Donnell(8)
David T.
Shapiro
Ryan
Bennett
____________________
All Other
Stock
Awards:
Number of
Shares of
Stock or
Units(#)
—
12,1028)
—
2,689(8)
1,418
1,224
—
—
—
3,375(8)
—
4,390(8)
—
1,902(8)
All Other
Option/SAR
Awards:
Number of
Securities
Underlying
Options/
SARs (#)(6)
—
Exercise
or Base
Price of
Option/
SAR
Awards
($/Sh)
—
47,125
—
9,365
—
5,000
—
—
—
11,753
—
15,287
—
6,626
N/A
234.91
—
N/A
213.55
N/A
N/A
262.31
—
N/A
—
N/A
213.55
—
N/A
213.55
—
N/A
213.55
Grant Date
Fair Value
of Stock
and Option
Name
Awards($)(7)
—
2,384,820
2,384,996
—
529,894
529,965
347,451
299,915
347,561
—
—
—
—
665,078
665,102
—
865,093
865,091
—
374,808
374,965
(1) With respect to equity awards, with the exception of the awards to Ms. Korch, which were approved by the Compensation Committee as part of the Company’s
offer letter, such awards were approved by the Compensation Committee of the Board on September 21, 2022, with a grant date of September 29, 2022, which is
the first business day after the public release of earnings for the previous fiscal year.
(2) The estimated possible payouts are based on the parameters applicable to each NEO at the time the Compensation Committee established the relevant performance
goals in writing at the beginning of fiscal 2023, as more fully described in the CD&A section of this Proxy Statement. The actual earned and subsequently paid
amounts are reported in the Summary Compensation Table under the “Non-Equity Incentive Plan Compensation” column. As the Executive Chairperson, Mr. Katz
was not eligible to receive a MIP award in fiscal 2023.
(3) The Threshold amount is based on the MIP’s minimum target funding level based upon no achievement of Resort Reported EBITDA targets for fiscal 2023, with
the resulting funding applied to the NEO’s target percentage of base salary and then paid out at the 50% threshold level for individual performance (other than for
Ms. Lynch, whose MIP awards are tied entirely to corporate performance).
(4) The Target amount is based on the MIP’s target funding level of 100% upon achievement by the Company of 100% of certain Resort Reported EBITDA targets for
fiscal 2023, with the resulting funding applied to the NEO’s target percentage of base salary and then paid out at the 100% target level for individual performance
(other than for Ms. Lynch, whose MIP awards are tied entirely to corporate performance).
(5) The Maximum amount is based on the MIP’s maximum funding level of 200% upon achievement by the Company of at least 120% of certain Resort Reported
EBITDA targets for fiscal 2023, with the resulting funding applied to the NEO’s target percentage of base salary and then paid out at the 130% maximum level for
individual performance (other than for Ms. Lynch, whose MIP awards are tied entirely to corporate performance).
(6) Represents SARs that vest in three equal annual installments beginning on the first anniversary of the grant date. The exercise price of each SAR is equal to the
closing price of our common stock on the grant date, except in the case of the SARs award value granted to Ms. Lynch for which the exercise price was 110% of
the closing price of our common stock on the grant date. Upon the exercise of a SAR, the actual number of shares the Company will issue to the NEO is equal the
quotient of (i) the product of (x) the excess of the per share fair market value of our common stock on the date of exercise over the exercise price, multiplied by
(y) the number of SARs exercised, divided by (ii) the per share fair market value of our common stock on the date of exercise, less any shares withheld to cover
payment of applicable tax withholding obligations. The grants were made pursuant to the 2015 Plan.
(7) The amounts shown represent the aggregate fair value of the award calculated as of the grant date in accordance with FASB ASC Topic 718.
Assumptions used in the calculation of these amounts are included in note 14 to our audited financial statements for fiscal 2023, which are included in our Annual
Report.
48
(8) Represents RSUs that vest in three equal annual installments beginning on the first anniversary of the grant date. The grants were made pursuant to
the 2015 Plan.
(9) Ms. Korch’s Target and Maximum Opportunities reflect the opportunity values for full fiscal year, and exclude the impact of proration resulting from being in the
role for only a portion of the actual fiscal year following her appointment to the Executive Vice President and Chief Financial Officer role in December 2022.
EMPLOYMENT AGREEMENTS
The Company has an employment agreement with Ms. Lynch, which was approved by the Compensation Committee. No other
NEO had an employment agreement with the Company at fiscal year-end.
Kirsten A. Lynch, Chief Executive Officer
The Company entered into an employment agreement with Ms. Lynch on November 1, 2021. The employment agreement has an
initial term through October 31, 2024 and provides for automatic renewal for successive one year periods if neither party provides
written notice of non-renewal to the other party not less than 60 days prior to the then-current scheduled expiration date. Under the
employment agreement, the initial base salary is set at $1,000,000.00, subject to annual adjustments by the Compensation Committee,
though in no case may the base salary be reduced at any time below the then-current level without Ms. Lynch’s consent. Pursuant to the
employment agreement, Ms. Lynch also participates in the Company’s MIP, as more fully described in the CD&A. Under the
employment agreement, if the Company achieves specified performance targets for the year under the MIP, Ms. Lynch’s “target
opportunity” will be no less than 100% of her base salary.
Ms. Lynch receives other benefits and perquisites on the same terms as afforded to senior executives generally, including customary
health, disability, and insurance benefits, and participation in the Company’s Executive Perquisite Fund Program.
The employment agreement also provides for certain payments in connection with the termination of Ms. Lynch under certain
circumstances, as more fully described under the heading “Potential Payments Upon Termination or Change in Control” below.
Ms. Lynch’s employment agreement contains customary provisions for non-competition and non-solicitation of the Company’s
managerial employees that become effective as of the date of Ms. Lynch’s termination of employment and that continue for two years
thereafter. Ms. Lynch is also subject to a permanent covenant to maintain confidentiality of the Company’s confidential information.
49
OUTSTANDING EQUITY AWARDS AT FISCAL 2023 YEAR-END
The following table shows certain information regarding outstanding equity awards held by the NEOs as of July 31, 2023:
Name
Kirsten A.
Lynch
Robert A.
Katz
Angela A.
Korch
Michael Z.
Barkin
James C.
O’Donnell
David T.
Shapiro
Ryan
Bennett(7)
Option Awards
Number of
Securities
Underlying
Unexercised
Options /
SARs
Exercisable
(#)(1)
13,169 (SARs)
7,458 (SARs)
6,851 (SARs)
7,137 (SARs)
12,364 (SARs)
9,176 (SARs)
8,161 (SARs)
8,425 (SARs)
18,527 (SARs)
42,385 (SARs)
45,528 (SARs)
14,814 (SARs)
11,727 (SARs)
22,827 (SARs)
14,247 (SARs)
19,156 (SARs)
1,685 (SARs)
Number of
Securities
Underlying
Unexercised
Options /
SARs
Unexercisable
(#)(1)(2)
4,589 (SARs)
16,850 (SARs)
47,125 (SARs)
7,124 (SARs)
3,372 (SARs)
9,365 (SARs)
Option /
SAR
Exercise
Price
($)(3)
Option /
SAR
Expiration
Date
107.42
9/25/2025
160.56
228.04
286.13
236.15
225.26
247.79
387.04
234.91
9/23/2026
9/27/2027
9/27/2028
9/25/2029
9/25/2030
9/25/2030
9/24/2031
9/29/2032
107.42
9/25/2025
134.28
200.70
285.05
357.66
295.19
247.79
247.79
351.85
213.55
9/25/2025
9/23/2026
9/27/2027
9/27/2028
9/25/2029
9/25/2030
9/25/2030
9/24/2031
9/29/2032
0
5,000 (SARs)
262.31
2/01/2033
Stock Awards
Number of
Shares
or Units of
Stock
That Have
Not
Vested
(#)(4)(5)
Market Value of
Shares or Units
of Stock That
Have Not Vested
($)(6)
1,135
4,418
12,102
267,281
1,040,395
2,849,900
1,565
982
2,689
1,418
1,224
368,542
231,251
633,233
333,925
288,240
—
—
—
—
—
—
—
—
—
—
—
—
4,360 (SARs)
4,922 (SARs)
8,526 (SARs)
6,726 (SARs)
2,592 (SARs)
317 (SARs
1,335 (SARs)
990 (SARs)
297 (SARs)
1,062 (SARs)
3,363 (SARs)
5,185 (SARs)
15,287 (SARs)
496 (SARs)
149 (SARs)
2,124 (SARs)
6,626 (SARs)
228.04
9/27/2027
286.13
236.15
225.26
351.85
213.55
9/27/2028
9/25/2029
9/25/2030
9/24/2031
9/29/2032
229.99
5/1/2029
236.15
225.26
325.16
351.85
213.55
9/25/2029
9/25/2030
5/1/2031
9/24/2031
9/29/2032
832
1,510
4,390
195,928
355,590
1,033,801
257
618
1,902
60,521
145,533
447,902
50
____________________
(1) Represents exercisable or unexercisable SARs that vest in three equal annual installments beginning on the first anniversary of the grant date, except for the Premium
SARs granted to Mr. Katz and Ms. Lynch on September 25, 2020 which vest in full on the first anniversary of the grant date. Upon the exercise of a SAR, the actual
number of shares the Company will issue to the NEO is equal to the quotient of (i) the product of (x) the excess of the per share fair market value of our common
stock on the date of exercise over the exercise price, multiplied by (y) the number of SARs exercised, divided by (ii) the per share fair market value of our common
stock on the date of exercise, less any shares withheld to cover payment of applicable tax withholding obligations.
(2) The grant dates and vesting dates of each unexercisable SAR award as of July 31, 2023 are as follows:
Number of
Unexercisable
SARs
Grant Date
Vesting Schedule of
Original Total Grant
Name
Kirsten A. Lynch
4,589 September 25,
2020
16,850 September 24,
2021
47,125 September 29,
2022
Robert A. Katz
7,124 September 25,
2020
3,372 September 24,
2021
9,365 September 29,
2022
Angela A. Korch
5,000 February 1,
2023
Michael
Barkin(3)
James
O’Donnell
Z.
C.
David T. Shapiro
— —
— —
—
—
3,363 September 25,
2020
5,185 September 24,
2021
15,287 September 29,
2022
Ryan Bennett
496 September 25,
2020
149 May 1, 2021
2,124 September 24,
2021
Vesting Date
(date award
is
vested in full)
September 25,
2023
September 24,
2024
September 29,
2025
September 25,
2023
September 24,
2024
September 29,
2025
Febraury
2026
1,
—
—
September 25,
2023
September 24,
2024
September 29,
2025
September 25,
2023
May 1, 2024
September 24,
2024
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
51
6,626 September 29,
2022
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
September 29,
2025
____________________
(3) The exercise price of each SAR is equal to the closing price of our common stock on the grant date, except for: the Premium SARs granted to Ms. Lynch with an
exercise price of $387.04 and $234.91, which is equal to 110% of the closing price of our common stock on the grant date; the Premium SARs granted to Mr. Katz
with exercise prices of $134.28, $200.70, $285.05, $357.66, and $295.19, which are equal to 125% of the closing price of our common stock on the grant date; and
the Premium SARs granted to Mr. Katz and Ms. Lynch on September 25, 2020, with an exercise price of $247.79, which is equal to 110% of the closing price of
our common stock on the grant date.
(4) Represents unvested RSUs that, unless otherwise specifically noted in footnote 5 below, vest in three equal annual installments beginning on the first anniversary
of the grant date.
(5) The grant dates and vesting dates of RSUs that have not vested as of July 31, 2023 are as follows:
52
Number of
Unexercisable
RSUs
Grant Date
Vesting Schedule of
Original Total Grant
Name
Kirsten A. Lynch
1,135 September 25,
2020
4,418 September 24,
2021
12,102 September 29,
2022
Robert A. Katz
1,565 September 25,
2020
982 September 24,
2021
2,689 September 29,
2022
Angela A. Korch
1,418 February 1,
2023
1,224 February 1,
2023
Michael Z. Barkin
—
—
James
O’Donnell
C.
David T. Shapiro
— —
832 September 25,
2020
1,510 September 24,
2021
4,390 September 29,
2022
Ryan Bennett
257 September 25,
2020
618 September 24,
2021
1,902 September 29,
2022
Vesting Date
(date award
is
vested in full)
September 25,
2023
September 24,
2024
September 29,
2025
September 25,
2023
September 24,
2024
September 29,
2025
February
2026
1,
February
2026
1,
—
—
September 25,
2023
September 24,
2024
September 29,
2025
September 25,
2023
September 24,
2024
September 29,
2025
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
—
—
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
Equal annual installments over
a three-year period beginning
on anniversary of the grant
date.
____________________
(6) The fair market value of these unvested RSU awards was determined based on the closing price of our common stock of $235.49 per share on July 31, 2023,
multiplied by the number of units.
(7) The unvested portion of Mr. Bennett’s fiscal 2023 equity awards was forfeited upon his separation from the Company on October 20, 2023.
53
OPTION EXERCISES AND STOCK VESTED IN FISCAL 2023
The following table shows for fiscal 2023 certain information regarding SAR exercises and stock vested during the last fiscal year
with respect to the NEOs:
Option Awards
Stock Awards
Number of
Shares
Acquired
on
Exercise
(#)(1)
—
Value
Realized on
Exercise
($)(2)
—
Number of
Shares
Acquired
on
Vesting
(#)(1)
4,494
Value
Realized
on
Vesting
($)(3)
935,516
—
37,383
13,456
—
—
—
—
—
869,473
140,189
—
—
4,131
0
859,950
0
3,221
670,516
1,719
357,844
2,380
495,445
657
136,768
Name
Kirsten A.
Lynch
Robert A. Katz
Angela A.
Korch
Michael Z.
Barkin
James C.
O’Donnell
David T.
Shapiro
Ryan Bennett
____________________
(1) Represents the aggregate number of shares acquired on vesting or exercise, as applicable. The amounts shown do not reflect amounts withheld by the Company to
satisfy tax withholding requirements or to satisfy the exercise price.
(2) The aggregate dollar value realized upon the exercise of options/SARs was computed by multiplying the difference between the market price of the Company’s
common stock on the exercise date and the exercise price for the award by the number of awards exercised.
(3) The aggregate dollar value realized on the vesting of RSUs was computed by multiplying the closing price of the Company’s common stock on the vesting date by
the number of shares vested. As the vesting dates fell on a Saturday or Sunday, the most recent business date closing price was used.
PENSION BENEFITS
The Company does not provide pension benefits or a defined contribution plan to the NEOs other than the Company’s tax-qualified
401(k) plan.
NONQUALIFIED DEFERRED COMPENSATION FOR FISCAL 2023
Although the Company maintains certain deferred compensation arrangements, none of the NEOs participated in such arrangements
in fiscal 2023 or otherwise had any earned or awarded benefit under any such deferred compensation arrangement for any prior fiscal
year.
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE-IN-CONTROL
The employment agreement with Ms. Lynch and the Company’s executive severance policy, which applies to Messrs. Katz and
Shapiro and Ms. Korch, require us to provide certain compensation in the event of certain terminations of employment or upon a change
in control of the Company. In addition, the forms of equity award agreements used with all of our employees provide for the full
acceleration of vesting of outstanding SARs, restricted stock, and RSUs upon a change in control of the Company if (i) the successor
corporation does not assume or substitute such award or (ii) the executive’s employment is terminated without Cause within the 12-
month period following the change in control of the Company. In accordance with the employment agreement with Ms. Lynch, if she
breaches the post-employment non-competition or non-solicitation covenants to which she is subject, then she must promptly reimburse
the Company for any severance payments received from, or payable by, the Company.
Under the terms of the Company's executive severance policy, the Company may terminate the executive at any time with or without
Cause. If the executive’s employment is terminated without Cause or terminated by the executive for Good Reason in connection with
or outside of a Change in Control (each, as defined below), then the executive shall be entitled, in exchange for a signed release, to
receive compensation in the amounts and under the circumstances described below. The amount of severance received under the
Company's executive severance policy varies according to the executive’s grade and title. In general, covered executive employees are
entitled to receive the following severance amounts under the Company's executive severance policy in the event of termination of
employment of the covered executive by the Company without Cause or termination of employment by a covered executive for Good
Reason: (i) for qualifying terminations occurring without a change in control, the covered executive is entitled to one year of base salary
54
(two years of base salary in the case of the CEO), (ii) for qualifying terminations following a change in control, (A) the CEO is entitled
to receive two years of base salary plus an amount equal to the most recent bonus paid to the CEO, (B) executive vice presidents, senior
executive vice presidents, and division presidents are each entitled to receive one year of base salary plus an amount equal to the most
recent bonus paid to the executive and (C) vice presidents and senior vice presidents are entitled to receive one year of base salary.
Under the terms of the Company's executive severance policy and Ms. Lynch’s employment agreement, “Cause” is generally
defined as (i) any conduct related to the Company involving gross negligence, gross mismanagement, or the unauthorized disclosure of
confidential information or trade secrets; (ii) dishonesty or a violation of the Company’s Code of Ethics and Business Conduct that has
or reasonably could be expected to result in a detrimental impact on the reputation, goodwill, or business position of any of the
Companies; (iii) gross obstruction of business operations or illegal or disreputable conduct by executive that impairs or reasonably could
be expected to impair the reputation, goodwill, or business position of any of the Companies, and any acts that violate any policy of the
Company relating to discrimination or harassment; (iv) commission of a felony or a crime involving moral turpitude or the entrance of
a plea of guilty or nolo contendere to a felony or a crime involving moral turpitude; or (v) any action involving a material breach of the
terms of the employment agreement including material inattention to or material neglect of duties that executive has not have remedied
within 30 days after receiving written notice from the Board specifying the details thereof.
“Good Reason” is defined under the terms of the Company's executive severance policy as (i) the Company has decreased the
executive’s then current base salary, (ii) the executive is directed to relocate their principal office more than 50 miles without their
consent, and/or (iii) the Company has effected a material diminution in the executive’s reporting responsibilities, authority, or duties as
in effect immediately prior to such change; provided, however, that executive does not have the right to terminate executive’s
employment agreement for Good Reason unless: (A) executive has provided notice to the Company of any of the foregoing conditions
within 90 days of the initial existence of the condition; (B) the Company has been given at least 30 days after receiving such notice to
cure such condition (other than if Good Reason is due to a Change in Control); and (C) executive actually terminates employment within
six months following the initial existence of the condition.
“Good Reason” is defined under the terms of Ms. Lynch’s employment agreement as (i) the Company has breached its obligations
under the employment agreement in any material respect, (ii) the Company has decreased executive’s then current base salary, (iii)
executive is directed to relocate executive’s principal office more than 30 miles from Interlocken Business Park without consent, and/or
(iv) the Company has effected a material diminution in executive’s reporting responsibilities, authority, or duties as in effect immediately
prior to such change; provided, however, that executive does not have the right to terminate executive’s employment agreement for
Good Reason unless: (A) executive has provided notice to the Company of any of the foregoing conditions within 90 days of the initial
existence of the condition; (B) the Company has been given at least 30 days after receiving such notice to cure such condition (other
than if Good Reason is due to a Change in Control); and (C) executive actually terminates employment within six months following the
initial existence of the condition.
“Change in Control” is defined under the terms of the Company's executive severance policy and Ms. Lynch's employment
agreement as an event or series of events by which: (A) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of
the Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent, or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-
3 and 13d-5 under the Exchange Act), directly or indirectly, of 35% or more of the equity securities of the Company entitled to vote for
members of the Board or equivalent governing body of the Company on a fully-diluted basis; or (B) during any period of twenty four
consecutive months, a majority of the members of the Board or other equivalent governing body of the Company cease to be composed
of individuals (1) who were members of that Board or equivalent governing body on the first day of such period, (2) whose election or
nomination to that Board or equivalent governing body was approved by individuals referred to in clause (1) above constituting at the
time of such election or nomination at least a majority of that Board or equivalent governing body, or (3) whose election or nomination
to that Board or other equivalent governing body was approved by individuals referred to in clauses (1) and (2) above constituting at the
time of such election or nomination at least a majority of that Board or equivalent governing body (excluding, in the case of both clause
(2) and clause (3), any individual whose initial nomination for, or assumption of office as, a member of that Board or equivalent
governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the Board); or (C)
any person or two or more persons acting in concert shall have acquired, by contract or otherwise, control over the equity securities of
the Company entitled to vote for members of the Board or equivalent governing body of the Company on a fully-diluted basis (and
taking into account all such securities that such person or group has the right to acquire pursuant to any option right) representing 51%
or more of the combined voting power of such securities; or (D)the Company sells or transfers (other than by mortgage or pledge) all or
substantially all of its properties and assets to, another “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act).
The amounts shown in the tables below are estimates of the value of the payments and benefits each of our NEOs.
Kirsten A. Lynch, Chief Executive Officer
55
Ms. Lynch’s employment agreement provides that upon (i) the giving of notice of non-renewal of the agreement by the Company
or termination of employment by the Company without Cause or (ii) termination of employment by Ms. Lynch for Good Reason, Ms.
Lynch is entitled to receive certain benefits (so long as she has executed a release in connection with her termination). In the event of a
termination for Cause, Ms. Lynch will only be entitled to receive her then-current salary though the date of such termination. In the
event of a termination without Cause of termination by Ms. Lynch for Good Reason, Ms. Lynch will be entitled to receive (i) her then
current salary through the effective date of the termination, (ii) a pro-rated bonus for the portion of the Company’s fiscal year though
the effective date of her termination, which pro-rated bonus is to be based on applying the level of achievement of her and the Company’s
performance targets, and (iii) two years of her then current salary, payable in a lump sum. If, within twelve months of the consummation
of a Change in Control of the Company, (i) the Company terminates Ms. Lynch without Cause or gives notice of non-renewal of her
agreement or (ii) Ms. Lynch terminates her employment for Good Reason, Ms. Lynch is entitled to receive (so long as she has executed
a release in connection with her termination): (a) her then current salary through the effective date of the termination, (b) a pro-rated
bonus for the portion of the Company’s fiscal year though the effective date of her termination, which pro-rated bonus is to be based on
applying the level of achievement of her and the Company’s performance targets, and (c) two years of her then current salary, payable
in a lump sum, plus an amount equal to the cash bonus paid to Ms. Lynch in the prior calendar year, payable no later than two and a half
months following the calendar year in which her termination occurs.
The following table describes the estimated potential compensation to Ms. Lynch upon a qualifying termination assuming the
termination occurred on July 31, 2023:
Executive Benefits and Payments(1)
Base Salary
SAR/RSU Acceleration
MIP Award
Health Insurance
Total
Termination without Cause
or Resignation for Good
Reason
($)
2,120,000
4,231,854
1,060,000
31,601
7,443,455
Termination without
Cause or Resignation for
Good Reason following
Change in Control
($)(2)
2,120,000
4,231,854
2,248,300
—
8,600,154
(1) Assumes the following: (a) base salary equal to $1,060,000 is in effect as of the assumed termination or change in control date of July 31, 2023; (b) executive’s
unvested RSUs and SARs at July 31,2023 would be subject to accelerated vesting on that date (when the closing price per share of our common stock was $235.49)
(see footnote 2); and (c) all Company targets under the MIP are met and executive’s pro rata MIP award payable as of the termination date is the target amount
indicated under Non-Equity Incentive Plan Awards in the Grants of Plan-Based Awards Table above.
(2) Benefits triggered upon termination without Cause or resignation for Good Reason would apply in the same manner following a change in control pursuant to the
Company’s executive severance policy when the new owners are bound by the terms of the executive severance policy. For equity awards granted in fiscal 2021
and beyond, in the event of a change in control, equity will only have accelerated vesting if an award is not assumed or replaced or in the event of a termination
without Cause within 12 months of a change in control event.
Robert A. Katz, Executive Chairperson
Upon his departure from the Chief Executive Officer position on November 1, 2021, Mr. Katz’s employment agreement was
terminated and he became subject to the Company's executive severance policy.
The following table describes the estimated potential compensation to Mr. Katz upon a qualifying termination assuming the
termination occurred on July 31, 2023:
Executive Benefits and Payments(1)
Base Salary
SAR/RSU Acceleration
MIP Award
Health Insurance
Total
Termination without Cause
or Resignation for Good
Reason
($)
1,060,000
—
—
—
1,060,000
Termination without
Cause or Resignation for
Good Reason following
Change in Control
($)(2)
1,060,000
1,438,494
—
—
2,498,494
(1) Assumes the following: (a) base salary equal to $1,060,000 is in effect as of the assumed termination or change in control date of July 31, 2023 and (b) executive’s
unvested RSUs and SARs at July 31, 2023 would be subject to accelerated vesting on that date (when the closing price per share of our common stock was $235.49)
(see footnote 2).
56
(2) Benefits triggered upon termination without cause or resignation for Good Reason would apply in the same manner following a change in control pursuant to the
Company’s executive severance policy when the new owners are bound by the terms of the executive severance policy. For equity awards granted in fiscal 2021
and beyond, in the event of a change in control, equity will only have accelerated vesting if an award is not assumed or replaced or in the event of a termination
without cause within 12 months of a change in control event.
Angela A. Korch, Executive Vice President and Chief Financial Officer
The following table describes the estimated potential compensation to Ms. Korch upon a qualifying termination assuming the
termination occurred on July 31, 2023:
Executive Benefits and Payments(1)
Base Salary
SAR/RSU Acceleration
MIP Award
Health Insurance
Total
Termination without Cause
or Resignation for Good
Reason
($)
550,000
—
—
—
550,000
Termination without
Cause or Resignation for
Good Reason following
Change in Control
($)(2)
550,000
622,165
86,367
—
1,258,532
(1) Assumes the following: (a) base salary equal to $550,000 is in effect as of the assumed termination or change in control date of July 31, 2023; and (b) executive’s
unvested SARs and RSUs at July 31, 2023 would be subject to accelerated vesting on that date (when the closing price per share of our common stock was $235.49)
(see footnote 2).
(2) Benefits triggered upon termination without cause or resignation for Good Reason would apply in the same manner following a change in control pursuant to the
Company’s executive severance policy when the new owners are bound by the terms of the executive severance policy. For equity awards granted in fiscal 2021
and beyond, in the event of a change in control, equity will only have accelerated vesting if an award is not assumed or replaced or in the event of a termination
without cause within 12 months of a change in control event.
Michael Z. Barkin, Former Executive Vice President and Chief Financial Officer
Effective upon Mr. Barkin’s voluntary resignation from the company on December 31, 2022, he is no longer eligible for a
termination payment, as reflected in the following table.
Executive Benefits and Payments(1)
Base Salary
SAR/RSU Acceleration
MIP Award
Health Insurance
Total
Termination without Cause
or Resignation for Good
Reason
($)
—
—
—
—
—
Termination without
Cause or Resignation for
Good Reason following
Change in Control
($)
—
—
—
—
—
(1) Effective upon Mr. Barkin’s voluntary resignation from the company on December 31, 2022, he is no longer eligible for a termination payment.
James C. O’Donnell, Former President - Mountain Division
Mr. O’Donnell had an involuntary termination without Cause from the Company on March 3, 2023. In connection with his
termination, Mr. O’Donnell entered into a severance agreement pursuant to which he received a severance payment under the
Company’s executive severance policy and certain other benefits in exchange for a signed release of claims. As permitted by SEC
guidance, the following tables reflects Mr. O’Donnell’s severance actually received in connection with is involuntary termination
without Cause pursuant to his severance agreement.
Executive Benefits and Payments
Base Salary(1)
SAR/RSU Acceleration
Termination without Cause
or Resignation for Good
Reason
($)
572,400
—
57
Termination without
Cause or Resignation for
Good Reason following
Change in Control
($)
—
—
MIP Award
Health Insurance(2)
Total(3)
—
15,908
588,308
—
—
—
(1) Mr. O’Donnell received a severance payment following the involuntary termination of his employment without Cause on March 3, 2023. Pursuant to the Company’s
executive severance plan and his severance agreement, Mr. O’Donnell received severance equal to one year of base salary.
(2) Pursuant to his severance agreement, Mr. O’Donnell also received a payment in the amount of $15,908, which was equal to the cost of COBRA coverage for 6
months.
(3) Pursuant to his severance agreement, Mr. O’Donnell also received active ski passes for the remainder of the 2022-23 ski season for himself and his dependents, with
a de minimis value.
David T. Shapiro, Executive Vice President, General Counsel and Secretary
The following table describes the estimated potential compensation to Mr. Shapiro upon a qualifying termination assuming the
termination occurred on July 31, 2023:
Executive Benefits and Payments(1)
Base Salary
SAR/RSU Acceleration
MIP Award
Health Insurance
Total
Termination without Cause
or Resignation for Good
Reason
($)
609,500
—
—
—
609,500
Termination without
Cause or resignation for
Good Reason following
Change in Control
($)(2)
609,500
1,955,119
95,234
—
2,659,853
(1) Assumes the following: (a) base salary equal to $609,500 is in effect as of the assumed termination or change in control date of July 31, 2023; (b) executive’s
unvested SARs and RSUs at July 31, 2023 would be subject to accelerated vesting on that date (when the closing price per share of our common stock was $235.49)
(see footnote 2); and (c) MIP award payable under the Company’s executive severance policy upon a termination following a change in control is equal to the most
recent MIP award paid to the executive.
(2) Benefits triggered upon termination without cause or resignation for Good Reason would apply in the same manner following a change in control pursuant to the
Company’s executive severance policy when the new owners are bound by the terms of the executive severance policy. For equity awards granted in fiscal 2021and
beyond, in the event of a change in control, equity will only have accelerated vesting if an award is not assumed or replaced or in the event of a termination without
cause within 12 months of a change in control event.
Ryan Bennett, Former Senior Vice President and Chief Marketing Officer
Mr. Bennett had an involuntary termination without Cause from the Company effective as of October 20, 2023. In connection with
Mr. Bennett’s termination, the Company entered into a severance agreement pursuant to which he will receive a severance payment
under the Company’s executive severance policy and certain other benefits in exchange for a signed release of claims. The following
table describes the estimated potential compensation to Mr. Bennett upon a qualifying termination assuming the termination occurred
on July 31, 2023:
Executive Benefits and Payments(1)
Base Salary
SAR/RSU Acceleration
MIP Award(3)
Health Insurance(4)
Total
Termination without Cause
or Resignation for Good
Reason
($)
472,760
—
—
—
472,760
Termination without
Cause or Resignation for
Good Reason following
Change in Control
($)(2)
472,760
804,404
—
—
1,227,164
(1) Assumes the following: (a) base salary equal to $472,760 is in effect as of the assumed termination or change in control date of July 31, 2023; and (b) executive’s
unvested SARs and RSUs at July 31, 2023 would be subject to accelerated vesting on that date (when the closing price per share of our common stock was $235.49)
(see footnote 2).
(2) Benefits triggered upon termination without cause or resignation for Good Reason would apply in the same manner following a change in control pursuant to the
Company’s executive severance policy when the new owners are bound by the terms of the executive severance policy. For equity awards granted in fiscal 2021
and beyond, in the event of a change in control, equity will only have accelerated vesting if an award is not assumed or replaced or in the event of a termination
without cause within 12 months of a change in control event.
58
(3) Under the Company’s MIP, Mr. Bennett earned and has received his fiscal year 2023 MIP Award because he was employed as of the MIP payment date. Please see
page 41 of this proxy statement for final MIP Award amounts.
(4) Pursuant to his severance agreement, Mr. Bennett is entitled to receive a payment in the amount of $16,827.06, which is equal to the cost of COBRA coverage for
6 months.
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS
The following table summarizes the Company’s equity compensation plans as of July 31, 2023:
Plan Category
Equity compensation plans approved by
security holders
Equity compensation plans not
approved by security holders
Total
(a)
Number of securities
to be issued upon
exercise of
outstanding options,
warrants and
rights(1)(2)
(in thousands)
879
—
879
(b)
Weighted average
exercise price of
outstanding options,
warrants and rights
(c)
Number of securities
remaining available for
future issuance under equity
compensation plans
(excluding securities
reflected in column (a))
(in thousands)
$235.69
2,137
—
$235.69
—
2,137
(1)
Includes 169,000 RSUs that are not included in the calculation of the Weighted-Average Exercise Price in column (b).
(2)
Includes the gross number of shares underlying outstanding SARs. Upon the exercise of a SAR, the actual number of shares we will issue to the participant is equal
the quotient of (i) the product of (x) the excess of the per share fair market value of our common stock on the date of exercise over the exercise price, multiplied by
(y) the number of SARs exercised, divided by (ii) the per share fair market value of our common stock on the date of exercise, less any shares withheld to cover
payment of applicable tax withholding obligations.
59
PAY RATIO DISCLOSURE
As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(u) of Regulation
S-K (we refer to the statute and the regulation collectively as the “pay ratio rule”), we are providing the ratio of the annual total
compensation of our CEO, to the annual total compensation of our median employee. The pay ratio included in this information is a
reasonable estimate calculated in a manner consistent with the pay ratio rule.
We determined our median employee as of July 31, 2023, which is the last day of our fiscal 2023. On July 31, 2023, we had 17,285
employees, 7,734 of which were year-round employees and 9,551 of which were seasonal employees.
To identify the “median employee” for the purposes of this disclosure, we analyzed the compensation that we paid to each of those
individuals for the 12-month period ending on July 31, 2023. We considered each employee’s “compensation” to consist of (i) the
employee’s total gross earnings for a 12-month period ending on July 31, 2023 or June 30, 2023 in the case of Australian employees,
plus (ii) the estimated amount of the Company’s contributions for that period to the retirement plans in which the employee participates
based upon the employee’s deferral elections on the date identified. For our Canadian employees, the rate of pay was converted using
the conversion rate CAD$1.0000 to USD$0.7599 as of July 31, 2023. For our Australian employees, the rate of pay was converted using
the conversion rate of AUD$1.0000 to USD$0.6730 as of July 31, 2023. For our Swiss employees, the rate of pay was converted using
the conversion rate CHF$1.0000 to USD$1.1510 as of July 31, 2023. No cost-of-living adjustments were made.
Total Annual Compensation of our CEO in fiscal 2023 was $6,195,302 and was based on the compensation reportable in the
Summary Compensation Table according to applicable instructions and interpretations. When compared to the total annual
compensation for our median employee of $25,538, this results in a pay ratio of 243:1.
The nature of our operations requires the use of many seasonal and part-time employees who do not work year-round, and
accordingly, we are providing a supplemental disclosure annualizing the compensation of such employees. To identify the “median
employee” for purposes of this supplemental disclosure, we analyzed the compensation that we paid to each of those individuals for the
12-month period ending on July 31, 2023. We considered each employee’s “compensation” to consist of (i) the employee’s total gross
earnings for the 12-month period ending July 31, 2023 or June 30, 2023 in the case of Australian employees, plus (ii) the estimated
amount of the Company’s contributions for that period to the retirement plans in which the employee participates. The compensation
for seasonal or part-time employees who were not employed by us for the entire 12-month period was annualized to reflect compensation
for a comparable period (or 2,080 hours worked during the year). The same Canadian dollar, Australian dollar and Swiss franc currency
conversion rates as stated above were used for this supplemental disclosure. No cost of living adjustments were made.
Using the total annual compensation of our CEO in fiscal 2023 of $6,195,302 when compared to the total annualized compensation
for the median employee selected for this supplemental disclosure as of July 31, 2023 of $48,511, results in a pay ratio of 128:1.
60
PAY VERSUS PERFORMANCE DISCLOSURE
As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and Item 402(v)
of Regulation S-K, we are providing the following disclosure regarding the relationship between executive compensation actually paid
to our principal executive officers (“PEOs”) and Non-PEO NEOs and certain Company financial performance for the fiscal years listed
below. The Compensation Committee did not consider the pay versus performance disclosure below in making its pay decisions for
any of the years shown. For further information concerning the Company’s variable pay-for-performance philosophy and how the
Company aligns executive compensation with the Company’s performance, please see “Compensation Discussion and Analysis”
beginning on page 33.
Summary
Compensat
ion Table
Total for
Robert A.
Katz¹
($)
Summary
Compensat
ion Table
Total for
Kirsten A.
Lynch¹
($)
Compensat
ion
Actually
Paid to
Robert A.
Katz¹˒²˒³
($)
Compensat
ion
Actually
Paid to
Kirsten A.
Lynch¹˒²˒³
($)
Average
Summary
Compensat
ion Table
Total for
Non-PEO
NEOs¹
($)
Average
Compensat
ion
Actually
Paid to
Non-PEO
NEOs¹˒²˒³
($)
(b)
—
(b)
(c)
6,195,302 —
(c)
7,161,467
(d)
1,648,434
(e)
1,079,735
2,022,454
6,609,628
1,866,128
4,684,527
2,275,391
1,588,826
3,814,789 —
8,379,431 —
2,116,605
4,304,689
(f)
129.
51
126.
04
158.
93
Value of
Initial Fixed
$100
Investment
based on:4
TSR
($)
Peer
Gro
up
TSR
($)
(g)
157.4
5
119.6
5
146.9
3
Net
Incom
e
($
Millio
ns)
Resort
Report
ed
EBITD
A⁵
($
Million
s)
(h)
285.1
(i)
834.8
368.3
836.9
124.5
544.7
Yea
r
(a)
202
3
202
2
202
1
(1)
Robert A. Katz was our PEO from August 1, 2020 to November 1, 2021. Kirsten Lynch was our PEO from November 1, 2021
to the present. The individuals comprising the Non-PEO NEOs for each year presented are listed below.
2021
Michael Z. Barkin
David T. Shapiro
James C. O'Donnell
Kirsten A. Lynch
Patricia A. Campbell
2022
Michael Z. Barkin
David T. Shapiro
James C. O'Donnell
Ryan Bennett
2023
Michael Z. Barkin
David T. Shapiro
James C. O'Donnell
Robert A. Katz
Ryan Bennett
Angela A. Korch
(2)
(3)
Year
2022
2021
The amounts shown for Compensation Actually Paid have been calculated in accordance with Item 402(v) of Regulation S-K
and do not reflect compensation actually earned, realized, or received by the Company’s NEOs. These amounts reflect the
Summary Compensation Table Total with certain adjustments as described in footnote 3 below.
Compensation Actually Paid reflects the exclusions and inclusions of certain amounts for the PEOs and the Non-PEO NEOs
computed in accordance with Item 402(v) of Regulation S-K as set forth below. Adjusted equity values are calculated in
accordance with FASB ASC Topic 718. The same valuation methodologies to create the underlying assumptions were used to
calculate the fair values of equity awards as those disclosed at the time of grant. Amounts in the Exclusion of Stock Awards
and Option Awards column are the totals from the Stock Awards and Option Awards columns set forth in the Summary
Compensation Table. The Company did not have a defined benefit pension plan in the covered years, so no pension adjustments
were made.
Summary
Compensation Table
Total for Robert Katz
($)
2,022,454
3,814,789
Exclusion of Stock
Awards and Option
Awards for Robert
Katz
($)
(999,833)
(2,971,795)
61
Inclusion of Adjusted
Equity Values for
Robert Katz
($)
Total Compensation
Actually Paid to Robert
Katz
($)
843,507
7,536,437
1,866,128
8,379,431
Year
2023
2022
Year
2023
2022
2021
Summary
Compensation Table
Total for Kirsten
Lynch
($)
6,195,302
6,609,628
Exclusion of Stock
Awards and Option
Awards for Kirsten
Lynch
($)
(4,769,816)
(4,499,972)
Inclusion of Adjusted
Equity Values for
Kirsten Lynch
($)
Total Compensation
Actually Paid to
Kirsten Lynch
($)
5,735,981
2,574,871
7,161,467
4,684,527
Summary
Compensation Table
Total for Non-PEO
NEOs
($)
1,648,434
2,275,391
2,116,605
Average Exclusion of
Stock Awards and
Option Awards for
Non-
PEO NEOs
($)
(977,487)
(1,331,959)
(1,495,765)
Average Inclusion of
Adjusted Equity
Values for Non-
PEO NEOs
($)
Total Average
Compensation Actually
Paid to Non-
PEO NEOs
($)
408,788
645,394
3,683,849
1,079,735
1,588,826
4,304,689
The amounts in the Inclusion of Adjusted Equity Values in the tables above are derived from the amounts set forth in the following
tables:
Year
Year-End Fair
Value of Equity
Awards
Granted
During Year
That Remained
Unvested as of
Last Day of
Year for
Robert Katz ($)
Change in Fair
Value from
Last Day of
Prior Year to
Last Day of
Year of
Unvested
Equity Awards
for Robert Katz
($)
Vesting-Date
Fair Value of
Equity Awards
Granted
During Year
that Vested
During Year
for Robert
Katz ($)
2022
2021
570,565
5,624,664
(1,250,375)
1,541,752
—
—
Change in Fair
Value from
Last Day of
Prior Year to
Vesting Date of
Unvested
Equity Awards
that Vested
During Year
for Robert
Katz ($)
1,523,317
370,021
Fair Value at
Last Day of
Prior Year of
Equity Awards
Forfeited
During Year
for Robert
Katz ($)
Total -
Inclusion of
Adjusted
Equity Values
for Robert
Katz ($)
—
—
843,507
7,536,437
Year-End Fair
Value of Equity
Awards
Granted
During Year
That Remained
Unvested as of
Last Day of
Year for
Kirsten Lynch
($)
6,048,457
2,575,970
Change in Fair
Value from
Last Day of
Prior Year to
Last Day of
Year of
Unvested
Equity Awards
for Kirsten
Lynch ($)
Vesting-Date
Fair Value of
Equity Awards
Granted
During Year
that Vested
During Year
for Kirsten
Lynch ($)
6,587
(845,576)
—
—
Change in Fair
Value from
Last Day of
Prior Year to
Vesting Date of
Unvested
Equity Awards
that Vested
During Year
for Kirsten
Lynch ($)
(319,063)
844,477
Fair Value at
Last Day of
Prior Year of
Equity Awards
Forfeited
During Year
for Kirsten
Lynch ($)
Total -
Inclusion of
Adjusted
Equity Values
for Kirsten
Lynch ($)
—
—
5,735,981
2,574,871
Average Year-
End Fair Value
of Equity
Awards
Average
Change in Fair
Value from
Last Day of
Average
Vesting- Date
Fair Value of
Equity Awards
Average
Change in Fair
Value from
Last Day of
Average Fair
Value at Last
Day of Prior
Year of Equity
Total - Average
Inclusion of
Adjusted
Equity Values
62
Year
2023
2022
Year
Granted
During Year
That Remained
Unvested as of
Last Day of
Year for Non-
PEO NEOs ($)
Prior Year to
Last Day of
Year of
Unvested
Equity Awards
for Non-PEO
NEOs ($)
Granted
During Year
that Vested
During Year
for Non-PEO
NEOs ($)
900,201
760,099
2,633,281
(189)
(494,312)
873,537
—
—
—
Prior Year to
Vesting Date of
Unvested
Equity Awards
that Vested
During Year
for Non- PEO
NEOs ($)
(150,012)
379,607
177,031
for Non-PEO
NEOs ($)
Awards
Forfeited
During Year
for Non- PEO
NEOs ($)
(341,212)
—
—
408,788
645,394
3,683,849
The Peer Group Total Shareholder Return (“TSR”) set forth in this table utilizes the Dow Jones U.S. Travel & Leisure Index,
which we also utilize in the stock performance graph required by Item 201(e) of Regulation S-K included in our Annual Report
for the year ended July 31, 2023. The comparison assumes $100 was invested for the period starting July 31, 2020, through the
end of the listed year in the Company and in the Dow Jones U.S. Travel & Leisure Index, respectively. Historical stock
performance is not necessarily indicative of future stock performance.
We determined Resort Reported EBITDA to be the most important financial performance measure used to link Company
performance to Compensation Actually Paid to our PEOs and Non-PEO NEOs in 2023. Resort Reported EBITDA is a non-
GAAP financial measure, calculated as earnings before interest, taxes, depreciation and amortization, as reported for our
Mountain and Lodging segments combined. For a reconciliation of the differences between Resort Reported EBITDA and the
most directly comparable GAAP financial measure, see Appendix A of this proxy statement. This performance measure may
not have been the most important financial performance measure for years 2022 and 2021 and we may determine a different
financial performance measure to be the most important financial performance measure in future years.
2023
2022
2021
(4)
(5)
63
Relationship Between PEOs and Non-PEO NEO Compensation Actually Paid and Company TSR
The following chart sets forth the relationship between Compensation Actually Paid to our PEOs, the average of Compensation Actually
Paid to our Non-PEO NEOs, and the Company’s cumulative TSR over the three most recently completed fiscal years.
64
Relationship Between PEO and Non-PEO NEO Compensation Actually Paid and Net Income
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually
Paid to our Non-PEO NEOs, and our Net Income during the three most recently completed fiscal years.
65
Relationship Between PEO and Non-PEO NEO Compensation Actually Paid and Resort Reported EBITDA
The following chart sets forth the relationship between Compensation Actually Paid to our PEO, the average of Compensation Actually
Paid to our Non-PEO NEOs, and our Resort Reported EBITDA during the three most recently completed fiscal years.
66
Description of Relationship Between Company TSR and Peer Group TSR
The following chart compares our cumulative TSR over the three most recently completed fiscal years to that of the Dow Jones U.S.
Travel & Leisure Index over the same period.
67
Tabular List of Most Important Financial Performance Measures
Resort Reported EBITDA was the only financial performance measure that the Company used to link Compensation Actually Paid to
our PEO and Non-PEO NEOs for 2023 to Company performance.
68
PROPOSAL 2. RATIFICATION OF THE SELECTION OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Audit Committee has selected, and the Board has ratified the selection of, PricewaterhouseCoopers LLP to serve as our
independent registered public accounting firm for fiscal 2024, and has further directed that management submit the selection of
independent auditors for ratification by the stockholders at the annual meeting. PricewaterhouseCoopers LLP has been the Company’s
independent registered public accounting firm since 2002. PricewaterhouseCoopers LLP expects to have a representative at the annual
meeting who will have the opportunity to make a statement and who will be available to answer appropriate questions.
Neither the Company’s Bylaws nor other governing documents or law require stockholder ratification of the selection of
PricewaterhouseCoopers LLP as the Company’s independent registered public accounting firm. However, the Audit Committee is
submitting the selection of PricewaterhouseCoopers LLP to the stockholders for ratification as a matter of good corporate practice. If
the stockholders fail to ratify the selection, the Audit Committee will reconsider whether or not to retain PricewaterhouseCoopers LLP.
It is understood that even if the selection is ratified, the Audit Committee, in its discretion, may direct the appointment of a new
independent accounting firm at any time during the year if the Audit Committee believes that such a change would be in the best interests
of the Company and its stockholders.
FEES BILLED TO VAIL RESORTS BY PRICEWATERHOUSECOOPERS LLP DURING FISCAL 2023 AND FISCAL
2022
Audit Fees. Audit fees (including expenses) billed (or billable) to the Company by PricewaterhouseCoopers LLP for the audit of
our annual financial statements included in our Form 10-K and the review of the financial statements included in our Forms 10-Q with
respect to fiscal 2023 and fiscal 2022 were $3,945,000 and $3,491,000, respectively. For both fiscal years, such fees included fees for
PricewaterhouseCoopers LLP’s examination of the effectiveness of the Company’s internal control over financial reporting.
Audit-Related Fees. There were no audit-related fees billed by PricewaterhouseCoopers LLP with respect to fiscal 2023 and fiscal
2022.
Tax Fees. Tax fees billed (or billable) by PricewaterhouseCoopers LLP with respect to fiscal 2023 and fiscal 2022 were $190,000
and $217,800, respectively. Such fees were related to tax services provided to the Company in connection with international tax
compliance.
All Other Fees. All other fees (including expenses) billed by PricewaterhouseCoopers LLP with respect to fiscal 2023 and fiscal
2022 were $2,000 and $2,000, respectively. Such fees were related to software licensing fees for technical research tools.
The Audit Committee determined that the provision of services other than audit services by PricewaterhouseCoopers LLP was
compatible with maintaining PricewaterhouseCoopers LLP’s independence.
The Audit Committee has the sole authority to approve all audit engagement fees and terms and pre-approve all audit and
permissible non-audit services provided by the Company’s independent registered public accounting firm. The Audit Committee has
delegated authority to the Chair of the Audit Committee to pre-approve services between Audit Committee meetings, which must be
reported to the full Audit Committee at its next meeting. Fees for permissible non-audit services that are not pre-approved must be less
than 5% of total fees paid. For fiscal 2023 and fiscal 2022, all of the fees included under the headings “Tax Fees” and “All Other Fees”
above were pre-approved by the Audit Committee.
THE BOARD RECOMMENDS THAT YOU VOTE “FOR” THE RATIFICATION OF THE SELECTION OF
PRICEWATERHOUSECOOPERS LLP AS THE COMPANY’S INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING JULY 31, 2024.
69
PROPOSAL 3. ADVISORY VOTE TO APPROVE EXECUTIVE
COMPENSATION
As required by Section 14A of the Exchange Act, we are asking stockholders to approve an advisory resolution,
commonly referred to as a “say-on-pay” resolution, approving our executive compensation as reported in this proxy
statement. As described in the CD&A section of this proxy statement, our executive compensation program is designed
to incentivize achievement of short and long-term Company and individual performance. We believe this
compensation approach aligns the interests of our executive officers with those of our stockholders.
The Compensation Committee has structured our executive compensation program to achieve the following key
objectives:
• Emphasizing Pay-for-Performance. Emphasize pay-for-performance by tying annual and long-term
compensation incentives to achievement of specified performance objectives or overall stock performance.
• Attracting, Retaining, and Motivating. Attract, retain, and motivate talented executives who will determine
our long-term success through a program competitive with compensation paid by companies in the same
market for executive talent.
• Rewarding Contributions and Creating Long-Term Value. Recognize and reward contributions of all
employees, including executive officers, in achieving strategic goals and business objectives, while aligning
the program with stockholder interests.
We encourage stockholders to read the CD&A (as well as the other tables and narrative disclosures included in
this proxy statement), which describes in more detail how our executive compensation program operates and is
designed to achieve our compensation objectives, including through the use of annual incentive awards, long-term
equity awards, a high percentage of compensation that is variable or “at-risk,” and performance-based stock awards
for our CEO. The Compensation Committee and the Board believe that the policies and procedures articulated in the
CD&A are effective in achieving our goals and that the compensation of our named executive officers reported in this
proxy statement has supported and contributed to the Company’s recent and long-term success and is aligned with the
interests of our stockholders.
At the 2022 annual meeting, we submitted a “say-on-pay” resolution to our stockholders. Our stockholders
approved this proposal with approximately 97% of the votes cast on the proposal voting in favor of the resolution.
Because our Board views the annual advisory vote as a good corporate governance practice, and because at our 2017
annual meeting approximately 93% of the votes cast on the frequency proposal were in favor of an annual advisory
vote, we are again asking stockholders to approve the compensation of our NEOs as disclosed in this proxy statement.
Accordingly, the Board unanimously recommends that stockholders approve the following advisory resolution at
the annual meeting:
“RESOLVED, that the compensation paid to the named executive officers of Vail Resorts, Inc., as disclosed
pursuant to the rules of the Securities and Exchange Commission, including the CD&A, compensation tables and
related narrative discussion, is hereby APPROVED.”
Although this vote is advisory and is not binding on the Company, the Compensation Committee will take into
account the outcome of the vote when considering future executive compensation decisions.
THE BOARD RECOMMENDS THAT YOU VOTE “FOR” THE APPROVAL OF EXECUTIVE
COMPENSATION.
70
PROPOSAL 4. ADVISORY VOTE ON THE FREQUENCY OF FUTURE ADVISORY
VOTES ON EXECUTIVE COMPENSATION
We are also asking stockholders to indicate their preference as to whether future advisory votes on executive
compensation, of the nature reflected in Proposal 3 above, should occur every year, every two years or every three
years.
At our 2017 annual meeting approximately 93% of the votes cast on the frequency proposal were in favor of an annual
advisory vote. Given the previous stockholder voting and after careful consideration, the Board has determined that
holding an advisory vote on executive compensation every year continues to be the most appropriate policy for the
Company at this time and recommends that stockholders vote for future advisory votes on executive compensation to
occur every year. While the Company’s executive compensation programs are designed to promote a long-term
connection between pay and performance, the Board recognizes that executive compensation disclosures are made
annually. Holding an annual advisory vote on executive compensation provides the Company with more direct and
immediate feedback on our compensation disclosures.
We understand that our stockholders may have different views as to what is an appropriate frequency for advisory
votes on executive compensation, and we will carefully review the voting results on this proposal. Stockholders will
be able to specify one of four choices for this proposal on the proxy card: 1 year, 2 years, 3 years, or abstain.
Stockholders are not voting to approve or disapprove the Board's recommendation. This advisory vote on the
frequency of future advisory votes on executive compensation is not binding on the Board. Notwithstanding the
Board's recommendation and the outcome of the stockholder vote, the Board may in the future decide to conduct
advisory votes on a less frequent basis and may vary its practice based on factors such as discussions with stockholders
and the adoption of material changes to compensation programs.
THE BOARD RECOMMENDS THAT YOU VOTE TO CONDUCT FUTURE ADVISORY VOTES ON
EXECUTIVE COMPENSATION EVERY "ONE YEAR."
71
THE ANNUAL MEETING AND VOTING – QUESTIONS AND ANSWERS
How can stockholders attend the annual meeting?
We look forward to continuing to provide expanded access, improved communication, and cost savings for the
Company and our stockholders by holding our Annual Meeting entirely online. We believe a live virtual meeting
enables increased stockholder attendance and participation and is an efficient use of resources for our stockholders
and the Company. Accordingly, this year’s annual meeting will be held in live virtual format. Only such stockholders
as of the close of business on October 10, 2023, their proxy holders, and our invited guests may attend the Annual
Meeting. To participate in the virtual annual meeting, visit www.virtualshareholdermeeting.com/MTN2023 and log in using
the 16-digit control number printed in the box marked by the arrow on your proxy card. If you encounter any
difficulties accessing the virtual meeting during the check-in or course of the annual meeting, please call 844-986-
0822 (U.S.) or 303-562-9302 (international) for assistance.
What is the agenda for the annual meeting?
The annual meeting will include a discussion of and voting on matters described in the Notice of 2023 Annual
Meeting of Stockholders and Proxy Statement and a brief question and answer session. The question and answer
session will be limited only to questions relating to the proposals set forth in the Notice and Proxy Statement. We will
not be providing a business update or answering any business or company performance related questions at the annual
meeting as we will be releasing our results for the first quarter of fiscal 2024 the following day and holding an investor
call to discuss the results at such time. If you wish to submit a question relating to the proposals set forth in the Notice
and Proxy Statement, immediately before or during the meeting, log into the virtual meeting platform at
www.virtualshareholdermeeting.com/MTN2023 type your question into the “Ask a Question” field, and click “Submit.”
What is the difference between a stockholder of record and a “street name” holder?
If your shares of the Company’s common stock are registered directly in your name with the Company’s transfer
agent, EQ Shareowner Services, then you are a stockholder of record.
If your shares are not held in your name, but rather are held through an intermediary, such as in an account at a
brokerage firm or by a bank, trustee or other nominee, then you are the beneficial owner of shares held in “street
name.” However, as a beneficial owner, you have the right to direct your broker or other nominee regarding how to
vote the shares held in your account.
Who is entitled to vote at or attend the annual meeting?
Holders of record and street name holders (subject to the requirements below) of our common stock as of the
close of business on October 10, 2023, which we refer to as the record date, are entitled to vote. On the record date,
we had 38,090,029 shares of common stock outstanding. You are entitled to attend the annual meeting only if you
were a stockholder or joint holder as of the record date or you hold a valid proxy for the annual meeting.
If you are a stockholder of record:
If you are a stockholder of record, you may vote at the virtual meeting or vote by proxy. Whether or not you plan
to attend the annual meeting, we urge you to vote by proxy in advance of the annual meeting over the telephone or on
the Internet as instructed in the Notice of Internet Availability of Proxy Materials to ensure your vote is counted.
If you are a street name holder:
If you are a street name holder, you may not vote your shares at the virtual annual meeting unless you request and
obtain a valid proxy from your broker or other nominee and follow the instructions on how to attend the virtual
meeting. If you want to attend the virtual annual meeting, but not vote at the meeting, you must also follow the
instructions of your broker or other nominee on how to attend the virtual meeting. Whether or not you plan to attend
72
the annual meeting, we urge you to vote by proxy or otherwise instruct your nominee how to vote on your behalf in
advance of the annual meeting in accordance with the instructions provided by your bank, broker, trustee or other
nominee.
How do I vote my shares?
If you are a stockholder of record of our common shares: By Telephone or the Internet
Stockholders of record can vote their shares via telephone or the Internet as instructed in the Notice of Internet
Availability of Proxy Materials. The telephone and Internet procedures are designed to authenticate a stockholder’s
identity, to allow stockholders to vote their shares and confirm that their instructions have been properly recorded.
The telephone and Internet voting facilities will close at 11:59 p.m., Eastern Time, on December 5, 2023.
By Mail
Stockholders who elect to vote by mail should request a paper proxy card by telephone or Internet and should
complete, sign and date their proxy cards and mail them in the pre-addressed envelopes that accompany the delivery
of paper proxy cards. Proxy cards submitted by mail must be received by the time of the meeting in order for your
shares to be voted.
By Participating in the Virtual Annual Meeting
Stockholders of record who wish to vote electronically at the virtual annual meeting may visit
www.virtualshareholdermeeting.com/MTN2023 log in using the 16-digit control number printed in the box marked by the
arrow on your proxy card, click on the vote button on the screen and follow the instructions provided.
If you are a street name holder of our common shares:
By Telephone or the Internet
If your broker or other nominee provides for a means to submit your voting instructions by telephone or the
Internet, you will be provided with directions on doing so by your broker or other nominee.
By Mail
Street name holders may vote by mail by requesting a paper voting instruction card according to the instructions
contained in the materials received from your broker or other nominee.
By Participating in the Virtual Annual Meeting
Street name holders who wish
the virtual annual meeting may visit
www.virtualshareholdermeeting.com/MTN2023 log in using the 16-digit control number printed in the box marked by the
arrow on your proxy card, click on the vote button on the screen and follow the instructions provided.
to vote electronically at
Can I change my vote?
If you are a stockholder of record of common stock, you may change your vote at any time prior to the vote at the
annual meeting by:
•
•
•
providing timely delivery of a later-dated proxy (including by telephone or Internet vote);
providing timely written notice of revocation to our Secretary at 390 Interlocken Crescent, Broomfield,
Colorado 80021; or
attending the virtual annual meeting and voting electronically.
73
To be timely, later dated proxy cards and written notices if revocation is submitted by mail, must be received by
the time of the annual meeting. In order to change your vote by telephone or Internet, you must do so before the
telephone and Internet voting facilities close at 11:59 p.m., Eastern Time, on December 5, 2023.
If you are a street name holder of common stock, you may change your vote by timely submitting new voting
instructions to your broker or other nominee following the instructions they provided, or, if you have obtained a valid
proxy from your broker or other nominee giving you the right to vote your shares, by attending the virtual meeting
and voting electronically.
How many shares must be present or represented to conduct business at the annual meeting?
The quorum requirement for holding the annual meeting and transacting business is that holders of a majority of
the issued and outstanding common stock that is entitled to vote must be present virtually or represented by proxy.
Both abstentions and broker non-votes described below are counted for the purpose of determining the presence of a
quorum. If there is no quorum, the holders of a majority of shares present at the virtual meeting or represented by
proxy may adjourn the annual meeting to another date.
How are abstentions treated?
Abstentions are counted for purposes of determining whether a quorum is present. For purposes of determining
whether the stockholders have approved a matter, abstentions are not treated as votes cast affirmatively or negatively,
and therefore do not have any effect on the outcome of a matter to be voted on at the annual meeting that requires an
affirmative vote of a majority of the votes cast by holders of our common stock present virtually or by proxy at the
annual meeting. A “majority of votes cast” means the number of “FOR” votes exceeds the number of “AGAINST”
votes.
What are “broker non-votes”?
If you hold shares in street name through a broker and do not provide your broker with voting instructions, your
shares may constitute “broker non-votes.” Generally, broker non-votes occur on a matter when a broker is not
permitted to vote on that matter without instructions from the beneficial owner and instructions are not given by the
beneficial owner. In tabulating the voting result for any particular proposal, shares that constitute broker non-votes
are considered present for the purpose of determining a quorum but are not considered entitled to vote or votes cast
on that proposal. Thus, a broker non-vote will make a quorum more readily attainable, but, broker non-votes will not
affect the outcome of any matter being voted on at the annual meeting, assuming that a quorum is obtained.
If your shares are held in street name and you do not instruct your broker on how to vote your shares, your
brokerage firm, in its discretion, may either leave your shares unvoted or vote your shares on “routine” matters. The
proposal to ratify the selection of our independent registered public accounting firm for the current fiscal year
(Proposal 2) is considered a routine matter. Under the rules of the New York Stock Exchange, or the NYSE, the
election of directors (Proposal 1) and the advisory vote to approve executive compensation (Proposal 3) and the
advisory vote on the frequency of future advisory votes on executive compensation (Proposal 4) are not considered
routine matters and, consequently, without your voting instructions, your broker cannot vote your uninstructed shares
on these proposals.
What are the voting requirements?
Proposal 1—Election of Directors
In the election of directors named in this proxy statement, you may vote “FOR” one or more of the nominees or
your vote may be “AGAINST” one or more of the nominees. Alternatively, you may vote “ABSTAIN” with respect
to one or more nominees. You may not cumulate your votes for the election of directors. To be elected, each director
nominee requires a majority of the votes cast for his or her election, which means that each director nominee must
receive more votes cast “FOR” than “AGAINST” that director nominee. Abstentions and broker non-votes are not
treated as voting on this proposal. If stockholders do not elect a nominee who is already serving as a director, Delaware
law provides that the director would continue to serve on the Board as a “holdover director,” rather than causing a
vacancy, until a successor is duly elected or until the director resigns. Under our Corporate Governance Guidelines
74
and as permitted by our Bylaws, each director has submitted an advance, contingent resignation that the Board may
accept if stockholders do not elect the director. In that situation, our Nominating & Governance Committee would
make a recommendation to the Board about whether to accept or reject the resignation, or whether to take other action.
The Board will promptly publicly disclose its decision regarding the director’s resignation.
Proposal 2—Ratification of Selection of PricewaterhouseCoopers LLP
In the ratification of the selection of PricewaterhouseCoopers LLP as the Company’s independent registered
public accounting firm for the fiscal year ending July 31, 2024, you may vote “FOR,” “AGAINST” or “ABSTAIN.”
This proposal requires the affirmative vote of a majority of those shares present virtually or represented by proxy,
entitled to vote, and actually voting on the proposal at the annual meeting. Abstentions are not treated as voting on
this proposal. Broker non-votes are not applicable to this proposal.
Proposal 3—Advisory Vote to Approve Executive Compensation
In the advisory vote to approve executive compensation, you may vote “FOR,” “AGAINST” or “ABSTAIN.”
This proposal requires the affirmative vote of a majority of those shares present virtually or represented by proxy,
entitled to vote, and actually voting on the proposal at the annual meeting. Abstentions and broker non-votes are not
treated as voting on this proposal. The vote is advisory, and therefore not binding on the Company, the Compensation
Committee or the Board. However, the Compensation Committee will review the voting results and take them into
consideration when making future decisions regarding executive compensation as it deems appropriate.
Proposal 4—Advisory Vote on the Frequency of Future Advisory Votes on Executive Compensation
In the advisory vote on the frequency of future advisory votes on executive compensation, you may vote every
“1 YEAR,” "2 YEARS," "3 YEARS" or "ABSTAIN." This proposal requires the affirmative vote of a majority of
those shares present in person or represented by proxy, entitled to vote, and actually voting on the proposal at the
annual meeting and the frequency that receives such a majority will be considered to be the frequency selected by the
stockholders. However, because stockholders have several voting choices, it is possible that no single choice will
receive a majority vote. Abstentions are not treated as voting on this proposal. Similar to Proposal 3, the vote is
advisory, and therefore not binding on the Company, the Compensation Committee or our Board. However, the
Compensation Committee and the Board will review the voting results when determining the frequency of holding
future advisory votes on executive compensation.
Who will serve as inspector of elections?
The inspector of elections will be a representative from Broadridge Financial Solutions, Inc.
Who will bear the cost of soliciting votes for the annual meeting?
The Company is soliciting your proxy, and we will bear the cost of soliciting proxies. In addition to the original
solicitation of proxies, proxies may be solicited personally, by telephone or other means of communication, by our
directors and employees. Directors and employees will not be paid any additional compensation for soliciting proxies.
We may reimburse brokers holding common stock in their names or in the names of their nominees for their
expenses in sending proxy material to the beneficial owners of such common stock.
What does it mean if I receive more than one Notice of Internet Availability of Proxy Materials?
If you receive more than one Notice of Internet Availability of Proxy Materials, it means that you have multiple
accounts at the transfer agent or with brokers or other nominees. Please vote all of your shares as described herein, or
follow the instructions received from each broker or other nominee, to ensure that all of your shares are voted.
What if I submit a proxy but do not make specific choices?
75
If a proxy is voted by telephone or Internet, or is signed and returned by mail without choices specified, in the
absence of contrary instructions, the shares of common stock represented by such proxy will be voted as recommended
by the Board, and will be voted in the proxy holders’ discretion as to other matters that may properly come before the
annual meeting.
How can I find out the results of the voting at the annual meeting?
Preliminary voting results will be announced at the annual meeting. Final voting results will be reported in a Form
8-K, which will be filed with the SEC following the annual meeting.
Annual Meeting Materials
The Notice of Internet Availability of Proxy Materials, Notice of Annual Meeting, this proxy statement and the
Annual Report have been made available to all stockholders entitled to Notice of Internet Availability of Proxy
Materials and entitled to vote at the annual meeting. The Annual Report is not incorporated into this Proxy Statement
and is not considered proxy-soliciting material.
STOCKHOLDER PROPOSALS FOR 2024 ANNUAL MEETING
The deadline for stockholders to submit proposals pursuant to Rule 14a-8 of the Exchange Act for inclusion in
the Company’s proxy statement and proxy for the 2024 annual meeting of stockholders is June 28, 2024. Such
proposals must be received at the Company’s principal executive offices no later than such date.
If you wish to nominate a director or submit a proposal for consideration at the Company’s 2024 annual meeting
of stockholders that is not to be included in next year’s proxy materials, your proposal or nomination must be submitted
in writing to the Secretary of the Company not later than September 7, 2024 nor earlier than August 8, 2024. You are
also advised to review our Bylaws, which contain additional requirements about advance notice of stockholder
proposals and director nominations. Such notices must be in accordance with the procedures described in our Bylaws.
You can obtain a copy of our Bylaws by writing the Secretary at the address shown on the cover of this proxy
statement.
To comply with universal proxy rules, stockholders who intend to solicit proxies in support of director nominees
other than the Company’s nominees must provide notice that sets forth the information required by Rule 14a-19 under
the Exchange Act no later than October 7, 2024.
HOUSEHOLDING OF PROXY MATERIALS
The SEC has adopted rules that permit companies and intermediaries, such as brokers, to satisfy the delivery
requirements for proxy statements and annual reports with respect to two or more stockholders sharing the same
address by delivering a single proxy statement addressed to those stockholders. This process, which is commonly
referred to as “householding,” potentially means extra convenience for stockholders and cost savings for companies.
This year, a number of brokers with account holders who are Company stockholders may be “householding” our
proxy materials to the extent such stockholders have given their prior express or implied consent in accordance with
SEC rules. A single Notice of Internet Availability of Proxy Materials, proxy statement and Annual Report (if you
requested one) will be delivered to multiple stockholders sharing an address unless contrary instructions have been
received from the affected stockholders. Once you have received notice from your broker that they will be
“householding” communications to your address, “householding” will continue until you are notified otherwise or
until you revoke your consent. If, at any time, you no longer wish to participate in householding and would prefer to
receive a separate Notice of Internet Availability of Proxy Materials, proxy statement and Annual Report, please notify
your broker to discontinue householding and direct your written request to receive a separate Notice of Internet
Availability of Proxy Materials, proxy statement, and Annual Report to the Company at: Vail Resorts, Inc., Attention:
Investor Relations, 390 Interlocken Crescent, Broomfield, Colorado, 80021, or by calling (303) 404-1800.
Stockholders who currently receive multiple copies of the Notice of Internet Availability of Proxy Materials, proxy
76
statement and Annual Report at their address and would like to request householding of their communications should
contact their broker.
OTHER MATTERS
At the date of this proxy statement, the Board has no knowledge of any business other than that described herein
which will be presented for consideration at the annual meeting. In the event any other business is presented at the
annual meeting, the persons named in the enclosed proxy will vote such proxy thereon in accordance with their
judgment in the best interests of the Company.
David T. Shapiro
Executive Vice President, General Counsel &
Secretary
October 26, 2023
A copy of the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2023 is available
without charge upon written request to: Secretary, Vail Resorts, Inc., 390 Interlocken Crescent, Broomfield,
Colorado 80021.
77
Appendix A
Reconciliation of Measures of Segment Profitability and Non-GAAP Financial Measures
Presented below is a reconciliation of net income attributable to Vail Resorts, Inc. to Total Reported EBITDA for the
twelve months ended July 31, 2023, 2022 and 2021.
Net income attributable to Vail Resorts, Inc.
Net income (loss) attributable to noncontrolling interests
Net income
Provision for income taxes
Income before provision for income taxes
Depreciation and amortization
Loss (gain) on disposal of fixed assets and other, net
Change in fair value of contingent consideration
Investment income and other, net
Foreign currency loss (gain) on intercompany loans
Interest expense, net
Total Reported EBITDA
Mountain Reported EBITDA
Lodging Reported EBITDA
Resort Reported EBITDA (1)
Real Estate Reported EBITDA
Total Reported EBITDA
(1) Resort represents the sum of Mountain and Lodging.
(In thousands)
(Unaudited)
Twelve Months Ended July 31,
2023
2022
$
268,148
$
347,923
16,955
285,103
88,414
373,517
268,501
9,070
49,836
(23,744)
2,907
153,022
833,109
822,570
12,267
834,837
(1,728)
833,109
$
$
$
$
20,414
368,337
88,824
457,161
252,391
(43,992)
20,280
(3,718)
2,682
148,183
832,987
811,167
25,747
836,914
(3,927)
832,987
$
$
$
$
2021
$127,850
(3,393)
124,457
726
125,183
252,585
5,373
14,402
(586)
(8,282)
151,399
$540,074
$552,753
(8,097)
$544,656
(4,582)
$540,074
78
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the fiscal year ended July 31, 2023
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
For the transition period from to
OF 1934
Commission File Number: 001-09614
Vail Resorts, Inc.
(Exact name of registrant as specified in its charter)
Delaware
51-0291762
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
390 Interlocken Crescent
Broomfield, Colorado
(Address of principal executive offices)
80021
(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 class
Common Stock, $0.01 par value
Trading Symbol
MTN
Name of each exchange on which registered
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
None
(Title of class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. ☒ Yes ☐ No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. ☐ Yes ☒ No
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
Non-accelerated filer
☒
☐
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 has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the
registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-
based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to
§240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
☐ Yes ☒ No
The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant, based on the
closing price of $262.34 per share as reported on the New York Stock Exchange Composite Tape on January 31, 2023 (the last
business day of the registrant’s most recently completed second fiscal quarter) was $10,473,772,605.
As of September 25, 2023, 38,149,524 shares of the registrant’s common stock were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement for its 2023 Annual Meeting of Stockholders to be filed with the
Securities and Exchange Commission within 120 days of July 31, 2023 are incorporated by reference herein into Part III, Items
10 through 14, of this Annual Report.
Table of Contents
PART I
Business
Risk Factors
Unresolved Staff Comments
Properties
Legal Proceedings
Mine Safety Disclosures
PART II
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
Reserved
Management’s Discussion and Analysis of Financial Condition and Results of
Operations
Quantitative and Qualitative Disclosures About Market Risk
Financial Statements and Supplementary Data
Changes in and Disagreements With Accountants on Accounting and Financial
Disclosure
Controls and Procedures
Other Information
Disclosure Reporting Regarding Foreign Jurisdictions that Prevent Inspections
PART III
Directors, Executive Officers and Corporate Governance
Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
Certain Relationships and Related Transactions, and Director Independence
Principal Accounting Fees and Services
Exhibits, Financial Statement Schedules
Form 10-K Summary
PART IV
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
Item 9C.
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
Item 15.
Item 16.
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FORWARD-LOOKING STATEMENTS
Except for any historical information contained herein, the matters discussed or incorporated by reference in this Annual Report
on Form 10-K (this “Form 10-K”) contain certain forward-looking statements within the meaning of the federal securities laws.
These statements relate to analyses and other information, available as of the date hereof which are based on forecasts of future
results and estimates of amounts not yet determinable. These statements also relate to our contemplated future prospects,
developments and business strategies.
These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will” and similar terms and phrases, including references
to assumptions. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-
looking statements are reasonable, we cannot assure you that such plans, intentions or expectations will be achieved. Important
factors that could cause actual results to differ materially from our forward-looking statements include, but are not limited to:
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the economy generally, and our business and results of operations, including the ultimate amount of refunds that we
would be required to refund to our pass product holders for qualifying circumstances under our Epic Coverage
program;
prolonged weakness in general economic conditions, including adverse effects on the overall travel and leisure
related industries;
risks associated with the effects of high or prolonged inflation, rising interest rates and financial institution
disruptions;
unfavorable weather conditions or the impact of natural disasters or other unexpected events;
the willingness or ability of our guests to travel due to terrorism, the uncertainty of military conflicts or outbreaks of
contagious diseases (such as the COVID-19 pandemic), and the cost and availability of travel options and changing
consumer preferences, discretionary spending habits or willingness to travel;
risks related to travel and airline disruptions, and other adverse impacts on the ability of our guests to travel;
risks related to interruptions or disruptions of our information technology systems, data security or cyberattacks;
risks related to our reliance on information technology, including our failure to maintain the integrity of our
customer or employee data and our ability to adapt to technological developments or industry trends;
our ability to acquire, develop and implement relevant technology offerings for customers and partners;
the seasonality of our business combined with adverse events that may occur during our peak operating periods;
competition in our mountain and lodging businesses or with other recreational and leisure activities;
risks related to the high fixed cost structure of our business;
our ability to fund resort capital expenditures;
risks related to a disruption in our water supply that would impact our snowmaking capabilities and operations;
our reliance on government permits or approvals for our use of public land or to make operational and capital
improvements;
risks related to federal, state, local and foreign government laws, rules and regulations, including environmental
and health and safety laws and regulations;
risks related to changes in security and privacy laws and regulations which could increase our operating costs and
adversely affect our ability to market our products, properties and services effectively;
potential failure to adapt to technological developments or industry trends regarding information technology;
risks related to our workforce, including increased labor costs, loss of key personnel and our ability to maintain
adequate staffing, including hiring and retaining a sufficient seasonal workforce;
a deterioration in the quality or reputation of our brands, including our ability to protect our intellectual property
and the risk of accidents at our mountain resorts;
risks related to scrutiny and changing expectations regarding our environmental, social and governance practices
and reporting;
our ability to successfully integrate acquired businesses, including their integration into our internal controls and
infrastructure; our ability to successfully navigate new markets, including Europe; or that acquired businesses may
fail to perform in accordance with expectations;
risks associated with international operations;
fluctuations in foreign currency exchange rates where the Company has foreign currency exposure, primarily the
Canadian and Australian dollars and the Swiss franc, as compared to the U.S. dollar;
changes in tax laws, regulations or interpretations, or adverse determinations by taxing authorities;
risks related to our indebtedness and our ability to satisfy our debt service requirements under our outstanding debt
including our unsecured senior notes, which could reduce our ability to use our cash flow to fund our operations,
capital expenditures, future business opportunities and other purposes;
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a materially adverse change in our financial condition;
adverse consequences of current or future litigation and legal claims;
changes in accounting judgments and estimates, accounting principles, policies or guidelines; and
other risks and uncertainties included under Part I, Item 1A. “Risk Factors” in this document.
All forward-looking statements attributable to us or any persons acting on our behalf are expressly qualified in their entirety by
these cautionary statements.
If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may
vary materially from those expected, estimated or projected. Given these uncertainties, users of the information included or
incorporated by reference in this Form 10-K, including investors and prospective investors, are cautioned not to place undue
reliance on such forward-looking statements. Actual results may differ materially from those suggested by the forward-looking
statements that we make for a number of reasons including those described above and in Part I, Item 1A. “Risk Factors” of this
Form 10-K. All forward-looking statements are made only as of the date hereof. Except as may be required by law, we do not
intend to update these forward-looking statements, even if new information, future events or other circumstances have made
them incorrect or misleading.
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PART I
ITEM 1.
BUSINESS
General
Vail Resorts, Inc., together with its subsidiaries, is referred to throughout this document as “we,” “us,” “our” or the “Company.”
Vail Resorts, Inc., a Delaware corporation, was organized as a holding company in 1997 and operates through various
subsidiaries. Our operations are grouped into three reportable segments: Mountain, Lodging and Real Estate, which represented
approximately 88%, 12% and 0%, respectively, of our net revenue for our fiscal year ended July 31, 2023 (“Fiscal 2023”).
Our Mountain segment operates 41 world-class destination mountain resorts and regional ski areas (collectively, our “Resorts”).
Additionally, the Mountain segment includes ancillary services, primarily including ski school, dining and retail/rental
operations.
In the Lodging segment, we own and/or manage a collection of luxury hotels and condominiums under our RockResorts brand,
other strategic lodging properties and a large number of condominiums located in proximity to our North American mountain
resorts, National Park Service (“NPS”) concessioner properties including the Grand Teton Lodge Company (“GTLC”), which
operates destination resorts in Grand Teton National Park, a Colorado resort ground transportation company and mountain
resort golf courses.
We refer to “Resort” as the combination of the Mountain and Lodging segments. Our Real Estate segment owns, develops and
sells real estate in and around our resort communities.
For financial information and other information about the Company’s segments and geographic areas, see Item 7.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 8. “Financial Statements
and Supplementary Data.”
Mountain Segment
In the Mountain segment, the Company operates the following 41 destination mountain resorts and regional ski areas, including
five resorts within the top ten most visited resorts in the United States for the 2022/2023 North American ski season:
*Denotes a destination mountain resort, which generally receives a meaningful portion of skier visits from long-distance
travelers, as opposed to our regional ski areas, which tend to generate skier visits predominantly from their respective local
markets.
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Our Mountain segment derives revenue through the sale of lift tickets, including pass products, as well as a comprehensive
offering of amenities available to guests, including ski and snowboard lessons, equipment rentals and retail merchandise sales, a
variety of dining venues, private club operations and other winter and summer recreational activities. In addition to providing
extensive guest amenities, we also lease some of our owned and leased commercial space to third party operators to add unique
restaurants and retail stores to the mix of amenities at the base of our resorts.
Many of our destination mountain resorts operate year-round and provide a comprehensive resort experience to a diverse
clientele with an attractive demographic profile. We offer a broad complement of winter and summer recreational activities,
including skiing, snowboarding, snowshoeing, snowtubing, sightseeing, mountain biking, guided hiking, zip lines, challenge
ropes courses, alpine slides, mountain coasters, children’s activities and other recreational activities. Collectively, our Resorts
are located in close proximity to population centers totaling approximately 110 million people.
Destination Mountain Resorts
Rocky Mountains (Colorado and Utah Resorts)
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Breckenridge Ski Resort (“Breckenridge”) - the most visited mountain resort in the United States (“U.S.”) for the
2022/2023 ski season with five interconnected peaks offering an expansive variety of terrain for every skill level,
including access to above tree line intermediate and expert terrain, and progressive and award-winning terrain parks.
Park City Resort (“Park City”) - the second most visited mountain resort in the U.S. for the 2022/2023 ski season and
the largest by acreage in the U.S. Park City offers 7,300 skiable acres, including diverse terrain for every type of skier
and snowboarder.
Vail Mountain Resort (“Vail Mountain”) - the third most visited mountain resort in the U.S. for the 2022/2023 ski
season. Vail Mountain offers some of the most expansive and varied terrain in North America with approximately
5,300 skiable acres including seven world renowned back bowls and the resort’s rustic Blue Sky Basin.
Keystone Resort (“Keystone”) - the ninth most visited mountain resort in the U.S. for the 2022/2023 ski season, as
well as the largest area for night skiing in Colorado. For the 2023/2024 ski season, we also plan to complete the
transformational lift-served terrain expansion project in Bergman Bowl, increasing lift served terrain by 555 acres with
the addition of a new six-person high speed lift, and also providing lift-served access to Erickson Bowl. Keystone is a
premier destination for families with its “Kidtopia” program focused on providing activities for kids on and off the
mountain.
Beaver Creek Resort (“Beaver Creek”) - the tenth most visited mountain resort in the U.S. for the 2022/2023 ski
season. Beaver Creek is a European-style resort with multiple villages and also includes a world renowned children’s
ski school program focused on providing a first-class experience with unique amenities such as a dedicated children’s
gondola.
Crested Butte Mountain Resort (“Crested Butte”) - located in southwest Colorado and includes over 1,500 skiable
acres and over 3,000 feet of vertical drop. Crested Butte is known for its historic town, iconic mountain peaks and
legendary skiing and riding terrain.
Pacific Northwest (British Columbia, Canada)
• Whistler Blackcomb (“Whistler Blackcomb”) - located in the Coast Mountains of British Columbia, Canada,
approximately 85 miles (135 kilometers) from the Vancouver International Airport, Whistler Blackcomb is the largest
year-round mountain resort in North America, with two mountains connected by the PEAK 2 PEAK gondola, which
combined offer over 200 marked runs, over 8,000 skiable acres (3,300 hectares), 14 alpine bowls, three glaciers and
one of the longest ski seasons in North America. In the summer Whistler Blackcomb offers a variety of activities,
including hiking trails, a bike park and sightseeing. Whistler Blackcomb is a popular destination for international
visitors and was home to the 2010 Winter Olympics.
Lake Tahoe Resorts
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Heavenly Mountain Resort (“Heavenly”) - located near the South Shore of Lake Tahoe with over 4,800 skiable acres,
Heavenly straddles the border of California and Nevada and offers unique and spectacular views of Lake Tahoe.
Heavenly offers great nightlife, including its proximity to several casinos.
Northstar Resort (“Northstar”) - located near the North Shore of Lake Tahoe, Northstar is the premier luxury mountain
resort destination near Lake Tahoe which offers premium lodging, a vibrant base area and over 3,000 skiable acres.
Northstar’s village features high-end shops and restaurants, a conference center and a 9,000 square-foot skating rink.
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Kirkwood Mountain Resort (“Kirkwood”) - located about 35 miles southwest of South Lake Tahoe, offering a unique
location atop the Sierra Crest, Kirkwood is recognized for offering some of the best high alpine advanced terrain
in North America with 2,000 feet of vertical drop and over 2,300 skiable acres.
Switzerland
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Andermatt-Sedrun (“Andermatt-Sedrun”) - marking our first owned and operated resort in Europe, the Company
acquired a 55% controlling ownership stake in Andermatt-Sedrun during Fiscal 2023. Andermatt-Sedrun is located
approximately 70 miles (110 kilometers) from Zurich, Switzerland and approximately 200 miles (320 kilometers) from
Geneva, Switzerland, in the Ursern Valley of the Swiss Alps. Andermatt-Sedrun offers nearly 75 miles (120
kilometers) of varied terrain and a top elevation of 9,800 feet (3,000 meters) across the mountains of Andermatt,
Sedrun and Gemsstock, with connected access to Disentis, which is independently owned. The ski area spans over 10
miles (16 kilometers) of scenic high alpine terrain between Andermatt and Sedrun, including the iconic Oberalp Pass,
and is connected by the Matterhorn Gothard Bahn, a railway which operates year-round.
Regional Ski Areas
Our ski resort network allows us to connect guests with drive-to access and destination resort access on a single pass product.
Building a presence near major metropolitan areas with large populations enables us to drive advance commitment pass product
sales among a broad array of guests.
Northeast
We own and operate eight regional ski areas in the Northeast that we believe provide a compelling regional and local
connection to guests within driving distance from the New York, Boston and the greater New England markets. Stowe is the
premier, high-end regional ski area in the Northeast offering outstanding skiing and an exceptional base area experience.
Okemo and Mount Snow are compelling regional destinations serving guests in the New York metropolitan area and
throughout New England. Hunter Mountain is a day-trip ski area primarily serving the New York metropolitan area.
Additionally, we own four ski areas in New Hampshire serving guests throughout New England.
Mid-Atlantic (Pennsylvania)
We own and operate eight ski areas in the Mid-Atlantic region serving guests in Philadelphia, Pittsburgh, Southern New Jersey,
Baltimore and Washington D.C. Our presence in the region allows us to offer compelling local options and easy overnight
weekend and holiday trips to our premium Northeast regional ski areas, which are within driving distance from these markets.
Midwest
We own and operate ten ski areas in the Midwest that draw guests from Chicago, Detroit, Minneapolis, St. Louis, Indianapolis,
Cleveland, Columbus, Kansas City and Louisville, among others. Located within close proximity to major metropolitan
markets, these ski areas provide beginners with easy access to beginner ski programs and many also offer night skiing for
young adults and families. Additionally, the proximity of these ski areas to metropolitan areas allows for regular usage by avid
skiers.
Pacific Northwest (U.S.)
Stevens Pass Resort (“Stevens Pass’’) - located less than 85 miles from Seattle on the crest of Washington State’s Cascade
Range, Stevens Pass offers terrain for all levels across over 1,100 acres of skiable terrain. Stevens Pass has operated for over 80
years and is known for its numerous bowls, glades and faces, as well as extensive lighted terrain for skiing and riding well into
the evening.
Australia
Australia is an important market for both domestic skiing during the Australian winter and as a source of international visitation
to the Northern Hemisphere in the Australian off-season, with typically over one million estimated Australian skier visits
annually to North America, Europe and Japan. We own three of the five largest ski areas in Australia, which we serve with the
Epic Australia Pass, an Australian dollar denominated pass product marketed specifically to Australian guests. Perisher, located
in New South Wales, is the largest ski resort in Australia and targets guests in the Sydney metropolitan area and the broader
New South Wales market, while Falls Creek and Mount Hotham are two of the largest ski areas in Victoria and target guests in
the Melbourne metropolitan area and the broader Victoria market.
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Ski Industry/Competition
There are approximately 760 ski areas operating in North America with approximately 480 in the U.S., ranging from small ski
area operations that service day skiers to large resorts that attract both day skiers and destination guests looking for a
comprehensive vacation experience. During the 2022/2023 North American ski season, combined skier visits for all ski areas in
North America were approximately 85.8 million. Our North American Resorts had approximately 17.2 million skier visits
during the 2022/2023 ski season, representing approximately 20.0% of North American skier visits.
There is limited opportunity for development of new destination ski resorts due to the limited private lands on which ski areas
can be built, the difficulty in obtaining the appropriate governmental approvals to build on public lands and the significant
capital needed to construct the necessary infrastructure. As such, there have been virtually no new destination ski resorts of
scale in North America for over 40 years, which has allowed and should continue to allow the best-positioned destination
resorts to benefit from future industry growth. Our resorts compete with other major destination mountain resorts, including,
among others, Aspen Snowmass, Copper Mountain, Mammoth, Deer Valley, Snowbird, Palisades Tahoe, Killington, Sierra at
Tahoe, Steamboat, Jackson Hole and Winter Park, as well as other ski areas in Colorado, California, Nevada, Utah, the Pacific
Northwest, the Northeast, the Southwest, British Columbia, Canada, Australia and Switzerland, and other destination ski areas
worldwide as well as non-ski related vacation options and destinations. Additionally, our pass products compete with other
single and multi-resort frequency pass products in North America, including the IKON Pass, the Mountain Collective Pass and
various regional and local pass products.
The ski industry statistics stated in this section have been derived primarily from data published by Colorado Ski Country USA,
Canadian Ski Council, Kottke National End of Season Surveys as well as other industry publications.
Our Competitive Strengths
We believe our premier resorts and business model differentiate our Company from the rest of the ski industry. We own and
operate some of the most iconic, branded destination mountain resorts in geographically diverse and important ski destinations
in North America, including Colorado, Utah, Lake Tahoe and the Pacific Northwest, including British Columbia, Canada.
These resorts are complemented by regional ski areas in the Northeast, Pacific Northwest, Midwest and Mid-Atlantic regions,
which are strategically positioned near key U.S. population centers, as well as three ski areas in Australia and one ski resort in
Switzerland. Through our data-driven marketing analytics and personalized marketing capabilities, we target increased
penetration of ski pass products, providing our guests with a strong value proposition in return for guests committing to ski or
ride at our resorts prior to, or very early into the ski season, which we believe attracts more guests to our resorts. We believe we
invest in more capital improvements than our competitors and we create synergies through our owned and operated network of
resorts, which enhances our profitability by enabling customers to access our network of resorts with our pass products. Many
of our destination mountain resorts located in the U.S. typically rank in the most visited ski resorts in the U.S. (five of the top
ten for the 2022/2023 U.S. ski season), and most of our destination mountain resorts are consistently in the top ranked ski
resorts in North America according to industry surveys, which we attribute to our ability to provide a high-quality experience.
We believe the following factors contribute directly to each Resort’s success:
Exceptional Mountain Experience
• World-Class Mountain Resorts and Integrated Base Resort Areas
Our mountain resorts offer a multitude of skiing and snowboarding experiences for the beginner, intermediate,
advanced and expert levels. Each mountain resort is fully integrated into expansive resort base areas offering a broad
array of lodging, dining, retail, nightlife and other amenities, some of which we own or manage.
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Snow Conditions
Our Resorts in the Rocky Mountain region of Colorado and Utah, the Sierra Nevada Mountains in Lake Tahoe and the
Coast Mountains in British Columbia, Canada generally receive abundant snowfall each year, but we have invested
significantly in snowmaking systems in these areas that help provide a more consistent experience, especially in the
early season. We have made significant recent investments in our snowmaking systems in Colorado that transformed
the early-season terrain experience at Vail, Keystone and Beaver Creek. Our other ski areas receive less snowfall than
our western North American mountain resorts, but we have invested in snowmaking operations at these resorts in order
to provide a consistent experience for our guests. Additionally, we provide several hundred acres of groomed terrain at
each of our mountain resorts with extensive fleets of snow grooming equipment.
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Lift Service
We systematically upgrade our lifts and put in new lifts to increase uphill capacity and streamline skier traffic to
maximize the guest experience. Discretionary capital expenditures expected for calendar year 2023 include, among
other projects:
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a new high-speed six-person lift in Bergman Bowl at Keystone, providing access to more than 550 acres of
intermediate-and-above high alpine terrain, including 16 new trails in Bergman and Erickson Bowls;
replacing Breckenridge’s fixed-grip double 5-Chair with a new high-speed four-person lift as part of a
continued investment plan in the Peak 8 base area, which also includes new teaching terrain and a transport
carpet from the base to make beginner terrain more accessible;
replacing Whistler Blackcomb’s existing four-person high speed Fitzsimmons lift with a new high-speed
eight-person lift, which will increase uphill capacity from Whistler Village, significantly reducing wait times
and improving bike haul capacity during summer operations;
replacing Stevens Pass’ current fixed-grip double Kehr’s Chair lift with a new four-person lift to improve
uphill capacity and guest experience; and
replacing the current three-person fixed-grip Summit Triple lift at Attitash with a new high-speed four-person
lift, increasing uphill capacity and reducing guests’ time on the longest lift at the resort.
In the past several years, we have installed or upgraded several high speed chairlifts and gondolas across our Resorts,
including 18 new or replacement lifts across 12 Resorts for the 2022/2023 North American ski season, which
meaningfully increased lift capacity and reduced wait times at those lift locations. Investments in the past several years
include:
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a new high-speed ten-person gondola at Whistler Blackcomb replacing the existing six-person gondola;
replacing Whistler Blackcomb’s existing Big Red Express high-speed four-person lift with a high-speed six-
person lift;
a new high-speed four-person lift in Vail’s Sun Down Bowl;
replacing the four-person lift in Vail’s Game Creek Bowl with a new high-speed six-person lift;
replacing Breckenridge’s fixed-grip double Rip’s Ride lift with a high-speed four-person lift;
a new high-speed six-person chair replacing Northstar’s Comstock four-person lift;
replacing Heavenly’s fixed-grip triple North Bowl lift with a high-speed four-person lift;
replacing 11 existing lifts at Stowe, Mount Snow, Attitash, Boston Mills, Brandywine, Jack Frost and Big
Boulder with new high-speed and fixed-grip lifts;
the 250-acre lift-served terrain expansion in the McCoy Park area of Beaver Creek;
a new four-person high speed lift to serve Peak 7 at Breckenridge;
replacing the four-person Peru lift at Keystone with a six-person high speed lift;
replacing the Peachtree lift at Crested Butte with a new three-person fixed-grip lift; and
an upgrade of the four-person Quantum lift at Okemo with a six-person high speed lift, and relocating the
four-person Quantum lift to replace the Green Ridge three-person fixed-grip lift.
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Terrain Parks
We are committed to leading the industry in terrain park design, education and events for the growing segment of
freestyle skiers and snowboarders. Each of our destination mountain resorts has multiple terrain parks that include
progressively-challenging features. These park structures, coupled with freestyle ski school programs, promote
systematic learning from basic to professional skills.
Extraordinary Service and Amenities
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Commitment to the Guest Experience
Our focus is to provide quality service at every touch point of the guest journey. Prior to arrival at our mountain
resorts, guests can receive personal assistance through our full-service, central reservations group and through our
comprehensive websites to book desired lodging accommodations, lift tickets and pass products, ski school lessons,
equipment rentals, activities and other resort services. Upon arrival, our resort staff serve as ambassadors to engage
guests, answer questions and foster a customer-focused environment. During Fiscal 2023, we announced the launch of
the new My Epic mobile application (“My Epic App”), which we expect will be available to guests for the 2023/2024
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North American ski season, and will allow our guests to purchase their pass product or lift ticket online and access our
Resorts via the new app, utilizing hands free Bluetooth® technology, eliminating the need to wait in line to purchase
lift tickets. In addition, the My Epic App allows guests to capture their activity on the mountain (e.g. number of ski
days, vertical feet skied and chairlift activity); provides current trail maps along with real-time trail and lift status;
allows guests to access real and forecasted lift line wait times; and provides information regarding parking, dining,
events and other on-mountain activities. In addition, beginning in the 2023/2024 North American ski season, we plan
to pilot “My Epic Gear,” a new membership program that provides its members with the ability to choose the gear they
want from a selection of popular ski and snowboard models, and have it delivered to them when and where they want
it, with free slopeside pick up and drop off every day. A limited number of Epic Pass holders will pilot the
membership at Vail, Beaver Creek, Breckenridge and Keystone during the 2023/2024 ski season. Expansion of the
program is planned for the 2024/2025 ski season to additional North American Resorts, with further expansions
planned for future seasons. My Epic Gear is designed to allow users to manage their entire experience from gear
selection to boot fitting to delivery all from the new My Epic App.
We also solicit guest feedback through a variety of surveys and results, which are used to ensure high levels of
customer satisfaction, understand trends and develop future resort programs and amenities. We then utilize this guest
feedback to help us focus our capital spending and operational efforts to the areas of the greatest need.
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Season Pass & Epic Day Pass Products
We offer a variety of pass products, primarily season pass and Epic Day Pass products, for all of our Resorts that are
marketed towards both out-of-state and international (“Destination”) guests as well as in-state and local (“Local”)
guests. These pass products are available for purchase prior to the start of the ski season, offering our guests a better
value in exchange for their commitment to ski at our Resorts before the season begins. Our pass program drives strong
customer loyalty and mitigates exposure to more weather sensitive guests, leading to greater revenue stability and
allowing us to capture valuable guest data. Additionally, our pass product customers typically ski more days each
season than those guests who do not buy pass products, which leads to additional ancillary spending. In addition, our
pass products attract new guests to our Resorts. Our pass products generated approximately 61% of our total lift
revenue for Fiscal 2023, and generated approximately 73% of total visitation (excluding complimentary access) for
Fiscal 2023. Sales of pass products are a key component of our overall Mountain segment revenue and help create
strong synergies among our Resorts. Our pass products range from providing access for a certain number of days to
one or a combination of our Resorts to our Epic Pass, which provides unrestricted and unlimited access to all of our
Resorts. The Epic Day Pass is a customizable one to seven day pass product purchased in advance of the season, for
those skiers and riders who expect to ski a certain number of days during the season, and which is available in three
tiers of resort offerings. All of our various pass product options can be found on our consumer website
www.snow.com. Information on our websites does not constitute part of this document.
As part of our continued strategy to drive pass product sales and create a stronger connection between key skier
markets and our iconic destination mountain resorts, we have continued to expand our portfolio of properties in recent
years. In August 2022, we acquired Andermatt-Sedrun, located in Switzerland, marking our first strategic investment
in, and opportunity to operate, a ski resort in Europe. In December 2021, we acquired Seven Springs Mountain Resort,
Hidden Valley Resort and Laurel Mountain Ski Area in Pennsylvania (collectively, the “Seven Springs Resorts”),
which added three regional ski areas strategically located near Pittsburgh, expanding our presence in the Mid-Atlantic
region and generating incremental drive-to business from other major metropolitan areas such as Washington DC,
Baltimore and Cleveland. In September 2019, we acquired Peak Resorts, Inc., which added 17 regional ski areas
strategically located near key U.S. population centers in the Northeast, Mid-Atlantic and Midwest regions.
Additionally, we enter into strategic long-term season pass alliance agreements with third-party mountain resorts,
which for the 2023/2024 ski season include Telluride Ski Resort in Colorado, Hakuba Valley and Rusutsu Resort in
Japan, Resorts of the Canadian Rockies in Canada, Les 3 Vallées in France, Disentis Ski Area and Verbier 4 Vallées in
Switzerland, Skirama Dolomiti in Italy and Ski Arlberg in Austria, which further increase the value proposition of our
pass products.
Pass product holders also receive additional value in exchange for their advance commitment through our Epic
Mountain Rewards program, which provides pass product holders a discount of 20% off on-mountain food and
beverage, lodging, group ski school lessons, equipment rentals and more at our North American owned and operated
Resorts. Epic Mountain Rewards is available for everyone who purchases an Epic Pass, Epic Local Pass, Epic Day
Pass, Epic Military Pass and most of our other pass products, regardless of whether guests plan to ski one day or every
day of the season. Additionally, Epic Coverage is included with the purchase of all pass products for no additional
charge and provides refunds in the event of certain resort closures and certain travel restrictions, giving pass holders a
refund for any portion of the season that is lost due to qualifying circumstances. Additionally, Epic Coverage provides
a refund for qualifying personal circumstances including eligible injuries, job losses and many other personal events.
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Premier Ski Schools
Our mountain resorts are home to some of the highest quality and most widely recognized ski schools in the industry.
Through a combination of outstanding training and abundant work opportunities, our ski schools have become home to
many of the most experienced and credentialed professionals in the business. We complement our instructor staff with
state-of-the-art facilities and extensive learning terrain, all with a keen attention to guest needs. We offer a wide
variety of adult and child group and private lesson options with a goal of creating lifelong skiers and riders and
showcasing to our guests all the terrain our resorts have to offer.
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Dining
Our Resorts provide a variety of quality on-mountain and base village dining venues, ranging from top-rated fine
dining restaurants to trailside express food service outlets. For the 2022/2023 ski season, we operated approximately
270 dining venues at our Resorts.
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Retail/Rental
We have approximately 340 retail/rental locations specializing in sporting goods including ski, snowboard and cycling
equipment. Several of our rental locations offer delivery services, bringing ski and snowboard gear and expert advice
directly to our guests. In addition to providing a major retail/rental presence at each of our Resorts, we also have retail/
rental locations throughout the Colorado Front Range and Minneapolis. Many of our retail/rental locations near key
population centers also offer prime venues for selling our pass products.
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On-Mountain Activities
We are a ski industry leader in providing comprehensive destination vacation experiences, including on-mountain
activities designed to appeal to a broad range of interests. During a normal winter season, in addition to our
exceptional ski experiences, guests can choose from a variety of non-ski related activities such as snowtubing,
snowshoeing, scenic snow cat tours, backcountry expeditions, horse-drawn sleigh rides and high altitude dining.
During the summer season, our mountain resorts offer non-ski related recreational activities and provide guests with a
wide array of options including scenic chairlift and gondola rides, mountain biking, horseback riding, guided hiking,
4x4 Jeep tours and our Epic Discovery program at Vail Mountain, Heavenly and Breckenridge. The Epic Discovery
program encourages “learn through play” by featuring extensive environmental educational elements interspersed
between numerous activities, consisting of zip lines, children’s activities, challenge ropes courses, tubing, mountain
excursions, an alpine slide and alpine coasters. The Mountain segment also operates several company-owned mountain
resort golf courses, including three in Colorado, one in Vermont and two in Pennsylvania.
•
Lodging and Real Estate
High quality lodging options are an integral part of providing a complete resort experience. Our owned and managed
properties proximate to our mountain resorts, including six RockResorts branded properties and a significant inventory
of managed condominium units, provide numerous accommodation options for our mountain resort guests. Our recent
real estate efforts have primarily focused on the potential to expand our destination bed base and upgrade our resorts
through the sale of land parcels to third-party developers, which in turn provides opportunity for the development of
condominiums, luxury hotels, parking and commercial space for restaurants and retail shops. Our Lodging and Real
Estate segments have and continue to invest in resort related assets and amenities or seek opportunities to expand and
enhance the overall resort experience.
Lodging Segment
Our Lodging segment includes owned and managed lodging properties, including those under our luxury hotel management
company, RockResorts; managed condominium units which are in and around our mountain resorts in Colorado, Lake Tahoe,
Utah, Vermont, New York, Pennsylvania and British Columbia, Canada; two NPS concessioner properties in and near Grand
Teton National Park in Wyoming; a resort ground transportation company in Colorado; and company-owned and operated
mountain resort golf courses managed by our Lodging operations, including two in Colorado, one in Wyoming, one in Lake
Tahoe, California, and one in Park City, Utah. For additional property details, see Item 2. “Properties”.
The Lodging segment currently includes approximately 5,500 owned and managed hotel rooms and condominium units. Our
lodging strategy seeks to complement and enhance our mountain resort operations through our ownership or management of
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lodging properties and condominiums proximate to our mountain resorts and selective management of luxury resort hotels in
premier destination locations.
In addition to our portfolio of owned and managed luxury resort hotels and other hotels and properties, our lodging business
also features a Colorado ground transportation company, which represents the first point of contact with many of our guests
when they arrive by air to Colorado. We offer year-round ground transportation from Denver International Airport and Eagle
County Airport to the Vail Valley (locations in and around Vail, Beaver Creek, Avon and Edwards) and Summit County (which
includes Keystone, Breckenridge, Copper Mountain, Frisco and Silverthorne).
Lodging Industry/Market
Hotels are categorized by Smith Travel Research, a leading lodging industry research firm, as luxury, upper upscale, upscale,
upper midscale, midscale and economy. The service quality and level of accommodations of our RockResorts’ hotels place
them in the luxury segment, which represents hotels achieving the highest average daily rates (“ADR”) in the industry, and
includes such brands as the Four Seasons, Ritz-Carlton and Marriott’s Luxury Collection hotels. Our other hotels are
categorized in the upper upscale and upscale segments of the hotel market. The luxury and upper upscale segments consist of
approximately 827,000 rooms at approximately 2,700 properties in the U.S. as of July 31, 2023. For Fiscal 2023, our owned
hotels, which include a combination of certain RockResort hotels as well as other hotels in proximity to our Resorts, had an
overall ADR of $312.15, a paid occupancy rate of 51.5% and revenue per available room (“RevPAR”) of $160.75, as compared
to the upper upscale segment’s ADR of $221.25, a paid occupancy rate of 67.1% and RevPAR of $148.45. We believe that this
comparison to the upper upscale segment is appropriate as our mix of owned hotels include those in the luxury and upper
upscale segments, as well as some of our hotels that fall in the upscale segment. The highly seasonal nature of our lodging
properties typically results in lower average occupancy as compared to the upper upscale segment of the lodging industry as a
whole.
Competition
Competition in the hotel industry is generally based on quality and consistency of rooms, restaurants, meeting facilities and
services, the attractiveness of locations, availability of a global distribution system and price. Our properties compete within
their geographic markets with hotels and resorts that include locally-owned independent hotels, as well as facilities owned or
managed by national and international chains, including such brands as Four Seasons, Hilton, Hyatt, Marriott, Ritz-Carlton and
Westin. Our properties also compete for convention and conference business across the national market. We believe we are
highly competitive in the resort hotel niche for the following reasons:
•
•
all of our hotels are located in unique, highly desirable resort destinations;
our hotel portfolio has achieved some of the most prestigious hotel designations in the world, including The
Arrabelle at Vail Square, which is currently rated as AAA 4-Diamond;
• many of our hotels (both owned and managed) are designed to provide a look that feels indigenous to their
surroundings, enhancing the guest’s vacation experience;
•
each of our RockResorts hotels provides the same high level of quality and services, while still providing unique
characteristics which distinguish the resorts from one another. This appeals to travelers looking for consistency in
quality and service offerings together with an experience more unique than typically offered by larger luxury hotel
chains;
• many of the hotels in our portfolio provide a wide array of amenities available to the guest such as access to
world-class ski and golf resorts, spa and fitness facilities, water sports and a number of other outdoor activities, as
well as highly acclaimed dining options;
•
•
•
conference space with the latest technology is available at most of our hotels. In addition, guests at Keystone can
use our company-owned Keystone Conference Center, the largest conference facility in the Colorado Rocky
Mountain region with more than 100,000 square feet of meeting, exhibit and function space. The Seven Springs
Resorts also provide conference services, offering over 77,000 square feet of meeting and function space;
we have a central reservations system that leverages our mountain resort reservations system and has an online
planning and booking platform, offering our guests a seamless and useful way to make reservations at our resorts;
and
we actively upgrade the quality of the accommodations and amenities available at our hotels through capital
improvements. Capital funding for third-party owned properties is provided by the owners of those properties to
maintain standards required by our management contracts.
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National Park Concessioner Properties
We own GTLC, which is based in the Jackson Hole area in Wyoming and operates within Grand Teton National Park under a
concession agreement with the NPS with an initial term that would have expired on December 31, 2021. In June 2021, we
agreed to an amendment extending the term of the agreement an additional two years, with an expiration date of December 31,
2023. The NPS currently expects to release a contract solicitation for the services offered by GTLC by the end of calendar year
2023. We currently expect that our existing agreement will be extended for an additional one year through December 31, 2024
due to the time needed for solicitation, preparation, review and award of a new contract. We expect the NPS to confirm this
extension in the fall of 2023. We also own Flagg Ranch, located in Moran, Wyoming and centrally located between
Yellowstone National Park and Grand Teton National Park on the John D. Rockefeller, Jr. Memorial Parkway (the “Parkway”).
Flagg Ranch operates under a concession agreement with the NPS that expires October 31, 2028. GTLC also owns Jackson
Hole Golf & Tennis Club (“JHG&TC”), located outside Grand Teton National Park near Jackson, Wyoming. GTLC’s
operations within Grand Teton National Park and JHG&TC have operating seasons that generally run from mid-May through
the end of September.
We primarily compete with such companies as Aramark Parks & Resorts, Delaware North Companies Parks & Resorts,
ExploreUS and Xanterra Parks & Resorts in retaining and obtaining NPS concession agreements. Four full-service
concessioners provide accommodations within Grand Teton National Park, including GTLC. In a normal operating season,
GTLC offers three lodging options within Grand Teton National Park: Jackson Lake Lodge, a full-service, 385-room resort
with 17,000 square feet of conference facilities; Jenny Lake Lodge, a small, rustically elegant retreat with 37 cabins; and Colter
Bay Village, a facility with 166 log cabins, 66 tent cabins, 337 campsites and a 112-space recreational vehicle park. We also
operate two additional campgrounds separate from these facilities: the 304-site Gros Ventre Campground and 51-site Jenny
Lake Campground. GTLC offers dining options as extensive as its lodging options, with cafeterias, casual eateries and fine
dining establishments. Additionally we operate 11 retail outlets located throughout the GTLC properties. GTLC’s resorts
provide a wide range of activities for guests to enjoy, including cruises on Jackson Lake, boat rentals, horseback riding, guided
fishing, float trips, golf and guided Grand Teton National Park tours. As a result of the extensive amenities offered, as well as
the tremendous popularity of the National Park System, GTLC’s accommodations within Grand Teton National Park generally
operate near full capacity during their operating season.
Real Estate Segment
We have extensive holdings of real property at our mountain resorts primarily throughout Summit and Eagle Counties in
Colorado. The principal activities of our Real Estate segment include the sale of land parcels to third-party developers and
planning for future real estate development projects, including zoning and acquisition of applicable permits. We continue
undertaking preliminary planning and design work on future projects and are pursuing opportunities with third-party developers
rather than undertaking our own significant vertical development projects. In addition to the cash flow generated from real
estate development sales, these development activities benefit our Mountain and Lodging segments by (1) creating additional
resort lodging and other resort related facilities and venues (primarily restaurants, spas, commercial space, private mountain
clubs, skier services facilities and parking structures) that provide us with the opportunity to create new sources of recurring
revenue, enhance the guest experience and expand our destination bed base; (2) controlling the architectural themes of our
resorts; and (3) expanding our property management and commercial leasing operations.
Marketing and Sales
Our Mountain segment’s marketing and sales efforts are focused on leveraging marketing analytics to drive targeted and
personalized marketing to our existing and prospective guests. We capture guest data on the vast majority of guest transactions
through sales of our pass products, lift tickets, ski and ride school products, gear rentals, and lodging properties on our e-
commerce platform, as well as through our mobile applications and our lift ticket windows. We promote our Resorts using
guest-centric omni-channel marketing campaigns leveraging email, direct mail, promotional programs, digital marketing
(including social, search and display) and traditional media advertising where appropriate (e.g. targeted print, TV and radio).
We also have marketing programs directed at attracting groups, corporate meetings and convention business. Most of our
marketing efforts drive traffic to our websites, where we provide our guests with information regarding each of our Resorts,
including services and amenities, reservations information, virtual tours and the opportunity to book/purchase our full suite of
products (e.g. lift access, lodging, ski and ride school, rentals, etc.) for their visits. We also enter into strategic alliances with
companies to enhance the guest experience at our Resorts, as well as to create opportunities for cross-marketing.
For our Lodging segment, we promote our hotels and lodging properties through marketing and sales programs, which include
marketing directly to many of our guests through our digital channels (search, social and display), promotional programs and
print media advertising, all of which are designed to drive traffic to our websites and central reservations call center. We also
promote comprehensive vacation experiences through various package offerings and promotions (combining lodging, lift
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tickets, ski school lessons, ski rental equipment, transportation and dining). In addition, our hotels have active sales forces to
generate conference and group business. We market our resort properties in conjunction with our mountain resort marketing
efforts where appropriate, given the strong synergies across the two businesses.
Across both the Mountain and Lodging segments, sales made through our websites and call center allow us to transact directly
with our guests, which further expands our customer base and enables analytics to deliver an increasingly guest-centric
marketing experience.
Seasonality
Ski resort operations are highly seasonal in nature, with a typical ski season in North America generally beginning in mid-
November and running through mid-April. In an effort to partially mitigate the concentration of our revenue in the winter
months in North America, we offer several non-ski related activities in the summer months such as sightseeing, mountain
biking, guided hiking, mountain coasters, ziplines, golf (primarily included in the operations of the Lodging segment) and our
Epic Discovery program. These activities also help attract destination conference and group business to our Resorts in our off-
season. In addition, the operating results of our Australian Resorts, for which the ski season generally occurs from June through
early October, partially counterbalances the concentration of our revenues during this seasonally lower period in North
America.
Our lodging business is also highly seasonal in nature, with peak seasons primarily in the winter months (with the exception of
GTLC, Flagg Ranch, certain managed properties and mountain resort golf operations). We actively promote our extensive
conference facilities and have added more off-season activities to help offset the seasonality of our lodging business.
Additionally, we operate several golf courses proximate to our Resorts, as described above.
Sustainability & Social Responsibility
Sustainability remains a core philosophy for us. As a company rooted in the great outdoors, we have a unique responsibility to
protect and preserve the incredible environments in which we operate. Through our corporate sustainability and social
responsibility program, EpicPromise, we focus on climate change mitigation and adaptation, resource conservation and building
stronger local communities through contributions to local non-profit organizations. Our sustainability efforts are diverse and
touch nearly every area of our operations. In 2017, we launched Commitment to Zero, our pledge to have a zero net operating
footprint by 2030. This commitment includes (i) achieving zero net emissions by finding operational energy efficiencies,
investing in renewable energy and investing in offsets and other emissions reduction projects, (ii) zero waste to landfill and (iii)
zero net operating impact to forests and habitat by restoring an acre of forest for every acre displaced by our operations.
As a result of this commitment, Vail Resorts was accepted as the first travel and tourism company into RE100, a collaborative
initiative uniting more than 400 global and influential businesses committed to 100% renewable electricity. During Fiscal 2023,
we continued to make progress toward our Commitment to Zero goals. Specifically, we focused on reducing waste to landfill
and expanding our robust composting and recycling programs as much as possible. During the year ended July 31, 2022
(“Fiscal 2022”) we achieved 100% renewable electricity for our North American operations, and as a result we were awarded
the National Ski Area Association’s Golden Eagle Climate Change Award at their 2023 annual conference. In Fiscal 2023, we
continued to make progress toward our zero net emissions goals, including continuing to purchase renewable energy from the
82-turbine Plum Creek Wind project we enabled, along with other renewable electricity programs.
For over four years, Vail Resorts has worked with leaders from other ski companies to develop an industry-driven climate
commitment. In June 2021 we, alongside Alterra Mountain Company, Boyne Resorts and POWDR, announced the Climate
Collaborative Charter - the ski industry’s first unified effort to combat climate change. This group rebranded as the Mountain
Collaborative for Climate Action in September 2022 and continues to advocate for climate-smart policy, innovative waste
reduction, and deepened sustainability within the partners’ respective operations. This partnership leverages our leadership in
sustainability and is expected to accelerate our collective progress, leading the industry toward long-term transformational
change.
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In addition, during Fiscal 2023 we sponsored the reforestation of 95 acres in Washington, Oregon and Wyoming that were
previously impacted by wildfire, which addressed 100% of the forests permanently impacted by our operations throughout the
year. Through direct EpicPromise grants and contributions from our $1 guest donation program, we partnered with several local
environmental organizations to fund restoration projects, including the National Forest Foundation, the Tahoe Fund, Grand
Teton National Park Foundation, Mountain Trails Foundation in Park City and the EnviroFund at Whistler Blackcomb. We also
encouraged our employees to help protect the environment and support their local community by volunteering with various
local organizations. Vail Resorts was recently recognized by Newsweek as one of the “Most Trustworthy Companies in
America in 2023,” which we believe reflects our focus on building customer, investor, and employee trust through listening,
learning and adapting to the needs of our team members and guests, while remaining responsible stewards through our industry-
leading sustainability efforts.
For Fiscal 2023, our focus for the EpicPromise community impact grant program focused on larger grants in key communities
to support housing and childcare. In addition, support continues to be given for food security, equal access to education and
other basic needs and services. In the second year of our Epic for Everyone Youth Access in partnership with the Katz
Amsterdam Foundation, we hosted 2,186 urban youth to attend a 5-day snowsports program. We also continued our legacy
access program with more than 9,100 youth participating in multi-day programs focused on mentorship, leadership and the
impact of outdoor time on mental health in this unprecedented time. Finally, our EpicPromise Employee Foundation (the
“Foundation”), which was established in 2015, is a charitable foundation funded by annual contributions from the Company, its
employees and its guests. The Foundation supports Vail Resorts’ employees and their families via grants for emergency relief
and scholarships. Annually more than $1 million in grants and scholarships are provided to help employees in times of need or
to pursue educational opportunities. For more information on both the Foundation and our environmental stewardship, visit
www.EpicPromise.com. Information on our websites does not constitute part of this document.
Human Capital Management
At Vail Resorts, our talent philosophy is designed to enable us to fully achieve our mission and vision by ensuring we have the
talent in place to deliver on our future growth plans. We are truly passionate about our people, and we are focused on attracting,
developing and retaining the best talent and building the best teams around them. At fiscal year end, we employed
approximately 7,200 year-round employees. Over the course of our Resorts’ various winter and summer operating seasons in
Fiscal 2023, we employed approximately 49,200 seasonal employees. In addition, we employed approximately 200 year-round
employees and 200 seasonal employees on behalf of the owners of our managed hotel properties. We consider our employee
relations to be positive.
Recent investments in employee wages and benefits have driven strong staffing levels, enabling our mountain resorts to deliver
strong guest experience results, including on-mountain activities as well as at our restaurants, lodging, ski and ride school, and
retail/rental locations. These investments included: (i) increases in compensation for all of our hourly employees, including
seasonal frontline staff, for the 2022/2023 North American ski season; (ii) investments in our human resource department to
support full staffing and deliver enhanced employee experience and a new frontline leadership development program; (iii) a
new mental health program available for all employees, even if they are not enrolled in an employer-sponsored healthcare plan,
which includes free mental health therapy sessions; (iv) expanded reproductive care; (v) establishment of a Flexible Remote
Work policy which allows corporate employees to permanently work from any state in which we currently operate; and (vi)
new employee benefits, including a 40% discount for retail and rental gear. Collectively, these investments helped enable strong
return rates for our seasonal employee population.
The Vail Resorts talent philosophy recognizes that people are our most important asset in driving our business growth, and
outlines the role that leaders play in attracting, developing, engaging, retaining and rewarding high performing, high potential
talent, including supporting them to achieve their future career growth. Our talent management system equips leaders with
programs and tools to effectively assess, develop and reward talent and includes regular leadership talent review and assessment
processes to ensure that the caliber and capability of our talent aligns with the sophistication of our business strategies and
processes. Our executive team reviews talent strategy and succession planning frequently, including with our Board of
Directors, to assess current and future talent needs. We have a strong track record of hiring, developing and preparing high
performing, high potential talent for internal mobility and succession and since 2018, we have nearly doubled our percentage of
high performing, high potential talent through performance management and talent upgrades. As a result, succession for our
year-round senior leadership roles is primarily sourced through internal talent development and promotion, rather than external
hires (76% internal fill rate, including re-hires). Over the past three years, we announced internal successors for some of the
most senior roles in our Company, including Chief Executive Officer, Chief Marketing Officer, President of the Mountain
Division and Chief Operating Officer of Hospitality and Retail. Nearly all of our recent appointments of General Managers and
Chief Operating Officers of our Resorts for the past three years came from internal succession. Additionally, in December 2022
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we appointed a new Executive Vice President and Chief Financial Officer who had previously been with the Company for more
than ten years, serving in various senior finance leadership roles.
To ensure we are building high performing teams, we encourage every employee at every level within the Company to
continuously grow their leadership by participating in ongoing events that build leadership capability and drive aligned
leadership expectations to enable business outcomes. We host an annual leadership summit that brings together our leaders at
the senior manager level and above to build understanding and alignment to business priorities, explore emerging leadership
topics and build connections across our growing global business and organization. We offer ongoing digital leadership series
discussions led by our CEO for this same population throughout the year and equip leaders to share learnings and insights from
these sessions in dialogue with their teams for the benefit of the entire organization. Our leadership philosophy has a very
strong emphasis on emotional intelligence and a leader’s ability to understand their own impact on others, and shape that impact
to unlock the potential of their teams.
We offer a broad range of professionally designed leadership development programs, with differentiated development for our
highest performing, highest potential employees who make up our long-term leadership succession pipeline. Building upon our
culture of leadership development and in addition to the wage investment for seasonal, frontline talent, we also relaunched our
signature “Epic Service” training. This program inspires and equips frontline talent, who play the most important role in
delivering a differentiated guest experience, to practice service-based leadership. We reinforce the principles of this program
through a daily in-resort frontline recognition program and manager-led career development conversations for frontline staff.
The full Epic Service development platform enables employees to choose curated learning experiences in the areas of
Leadership, Guest Service and Business – that align with their specific motivations and career goals. Results are measured by
completion of required training, utilization and impact of the Epic Service recognition program, employee engagement scores,
pipeline readiness of internal talent for front-line leader roles, guest experience scores and Net Promoter Scores.
We leverage a quarterly continuous listening survey to measure and understand the key drivers of sustainable engagement
among our employees, make timely adjustments to maintain strong alignment, and to care for the needs of our employees.
Vail Resorts Culture
Core to our human capital management strategy is our mission – to create an Experience of a Lifetime for our employees so
they can in turn create an Experience of a Lifetime for our guests. We have a values-based leadership culture that places a
premium on leader transparency, vulnerability and authenticity. We look for people to join Vail Resorts who are brave,
passionate and ambitious. As Vail Resorts employees, we hold ourselves accountable for living these seven foundational values
every day in everything we do: Serve Others, Do Right, Do Good, Be Safe, Have Fun, Be Inclusive and Drive Value.
Diversity, Equity and Inclusion
We believe that diversity, equity and inclusion (“DEI”) is core to both our company success and the future growth of our
industry. At Vail Resorts, one of our core values is “Be Inclusive,” which means that we expect everyone at our Company to be
welcoming to others, including all races, gender identities, sexual orientations, abilities and other differences. We have also
recently added a new leadership competency, “Elevate,” which requires that all of our leaders are self-aware of their own
inclusive behavior so they can intentionally build diverse representation, bring equity to our business practices, and create
inclusive communities in which all people can thrive. We are focused on moving from accountability to action, and “Elevate”
will be included as a competency in our annual performance management process for all employees beginning with the year
ending July 31, 2024.
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We have a long history of building gender diversity throughout the Company. Women represent 55% of our corporate senior
leaders at the director level and above and 53% of our corporate roles generally. Ten resorts in our portfolio are led by women,
including six of our 11 destination mountain resorts (Breckenridge, Vail, Park City, Crested Butte, Whistler Blackcomb and
Northstar). Five of the ten directors on our Board are women, four of our twelve executive committee members are women, we
are one of only a few Fortune 1000 companies with women in both the Chief Financial Officer and Chief Executive Officer
positions, and our Chief Executive Officer, Kirsten Lynch, is the only woman in our industry to head a Fortune 1000 company.
While women currently represent approximately 22% of mountain operations senior leadership roles, we continue to strive to
bring more gender diversity to these roles, which have historically been male-dominated. We have also developed women in
leadership programs and a Women & Allies Employee Resource Group (“ERG”) to foster an inclusive culture and ensure
equity of our talent practices. ERGs are part of a framework for under-represented talent to create a community with people
who share those parts of their identity and their allies. Collectively, we refer to ERGs and Affinity Groups as “Employee
Inclusion Networks.” Our first Affinity Group was the Rainbow Room, which was established in 2021 and focused on creating
a community for our LGBTQIA+ employees and allies. We also recently announced two new Affinity Groups which will
launch in Fiscal 2024, the Black Employee Network and the Veterans, Partners & Allies Affinity Group.
Building on our success with increasing representation of women, we are focused on improving racial diversity at Vail Resorts,
as well as in our communities and our industry. To that end, we are working to address barriers to attracting, developing and
retaining the best talent from BIPOC communities in order to fuel innovation and growth within our Company and industry. We
are also incorporating more diverse representation in our marketing efforts, including more direct outreach to communities of
color. Over the past three years, we have undertaken extensive efforts around DEI, including company-wide virtual webinars
bringing forward diverse voices, DEI dialogues with external thought leaders, online DEI training modules aligned with our
“Be Inclusive” value, building leader capability against our new “Elevate” competency, and establishment of the
aforementioned employee resource groups and affinity groups. As part of our commitment to driving sustainable change, we
are listening and learning as a company, and the Company is part of CEO Action, Colorado Inclusive Economy and Civic
Alliance.
We are committed to providing our employees with an Experience of a Lifetime. We have a holistic set of total rewards
programs designed to support all aspects of that experience for people of all races and genders, and we strive for
competitiveness against the external market for talent. In addition, as part of our “Be Inclusive” core value, we conduct regular
pay equity audits and make adjustments as needed.
Our Code of Conduct states that every employee is entitled to work in a respectful environment that is free of harassment and
discrimination and we require our full-time, year-round employees, as well as certain seasonal employees, to complete a Code
of Conduct training on an annual basis. This annual requirement includes training on a variety of topics, such as financial
integrity, ethical leadership and anti-harassment. In Fiscal 2023, the training was completed by 96% of this employee base.
Mountain Safety
The nature of our on-mountain operations comes with inherent safety risks, and the health and safety of our employees is a top
priority. It is the shared responsibility of every employee to actively participate in creating a safe and secure environment and to
minimize injuries. To that end, we routinely:
•
Provide resources and education to promote safe operating environments at our resorts, including compliance with
Occupational Safety and Health Administration standards, as well as to improve overall workplace safety and health.
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This includes regular and ongoing safety training and assessments as well as safety audits, and all employees are
required to take annual slope safety training.
Proactively assess risks to identify and mitigate unsafe conditions and integrate learnings from incidents to prevent
future occurrences across our network of resorts.
Hire and train a dedicated health and safety team that oversees resort operations as well as highly trained ski patrol
professionals at each resort.
•
•
Employee Housing
Making affordable employee housing available is critical to achieve our hiring and retention goals. While identifying and
securing affordable housing options is challenging in some of the communities in which we operate, providing frontline
employees affordable housing in our resort communities is a critical aspect of the employee value proposition. For the
2023/2024 North American ski season, we expect to serve approximately 6,500 frontline team members with affordable
housing across our Resorts, as well as an additional 1,200 team members at GTLC for the 2024 summer season.
Intellectual Property
The development of intellectual property is part of our overall business strategy, and we regard our intellectual property as an
important element of our success. Accordingly, we protect our intellectual property rights and seek to protect against its
unauthorized use through international, national and state laws and common law rights. We file applications for and obtain
trademark registrations and have filed for patents to protect inventions and will continue to do so where appropriate. We also
seek to maintain our trade secrets and confidential information by nondisclosure policies and through the use of appropriate
confidentiality agreements and contractual provisions.
In the highly competitive industry in which we operate, trademarks, service marks, trade names and logos are very important in
the sales and marketing of our pass products, destination mountain resorts and regional ski areas, lodging properties and
services. We seek to register and protect our trademarks, service marks, trade names and logos and have obtained a significant
number of registrations for those trademarks. We believe our brands have become synonymous in the travel and leisure industry
with a reputation for excellence in service and authentic hospitality. Among other national and international trademark
registrations, the Company owns U.S. federal registrations for Epic®, Epic Pass®, Vail Resorts®, Vail®, Beaver Creek®,
Breckenridge®, Keystone®, Crested Butte & Design®, Kirkwood & Design® and Heavenly®. The Company also owns Canadian
and U.S. trademark registrations for the Whistler Blackcomb & Design® name and logo.
Environmental Compliance and other Laws and Regulations
Our operations are subject to federal, state and local laws and regulations governing the environment, including laws and
regulations governing water and sewer discharges, water use, air emissions, soil and groundwater contamination, the
maintenance of underground and aboveground storage tanks and the disposal of waste and hazardous materials. Examples of
such laws and regulations in the U.S. include the National Environmental Policy Act (NEPA), the California Environmental
Quality Act and the Vermont Land Use and Development Act. Internationally, we are subject to the Forest and Range Practices
Act and Watershed Sustainability Act in British Columbia as well as the Environmental Planning and Assessment Act 1979
(NSW, Australia) and the Environment Protection Act 1970 and the Environment Protection and Biodiversity Conservation Act
1999 (Victoria, Australia). With the acquisition of Andermatt-Sedrun, the Company is required to comply with all Swiss
regulations, including federal acts and ordinances, as well as Cantonal authorities.
Various federal, state, local and provincial regulations also govern our resort operations, including liquor licensing and food
safety regulations applicable to our food and beverage operations and safety standards relating to our lift operations and heli-ski
operations at Whistler Blackcomb. In addition, each resort is subject to and must comply with state, county, regional and local
government land use regulations and restrictions, including, for example, employee housing ordinances, zoning and density
restrictions, noise ordinances and wildlife, water and air quality regulations. We believe that we are in compliance, in all
material respects, with environmental and other laws and regulations. Compliance with such provisions has not materially
impacted our capital expenditures, earnings, or competitive position, and we do not anticipate that it will have a material impact
in the future.
Contracts with Governmental Authorities for Resort Operations
U.S. Forest Service Resorts
The operations of Breckenridge, Vail Mountain, Keystone, Crested Butte, Stevens Pass, Heavenly, Kirkwood, Mount Snow,
Attitash and portions of Beaver Creek and Wildcat are conducted on land under the jurisdiction of the U.S. Forest Service
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(collectively, the “Forest Service Resorts”). The 1986 Ski Area Permit Act (the “1986 Act”) allows the Forest Service to grant
Term Special Use Permits (each, a “SUP”) for the operation of ski areas and construction of related facilities on National Forest
lands. In November 2011, the 1986 Act was amended by the Ski Area Recreational Opportunity Enhancement Act (the
“Enhancement Act”) to clarify the Forest Service’s authority to approve facilities primarily for year-round recreation. Under the
1986 Act and the Enhancement Act, the Forest Service has the authority to review and approve the location, design and
construction of improvements in the permit area and many operational matters.
Each individual national forest is required by the National Forest Management Act to develop and maintain a Land and
Resource Management Plan (a “Forest Plan”), which establishes standards and guidelines for the Forest Service to follow and
consider in reviewing and approving our proposed actions.
Each of the Forest Service Resorts operates under a SUP, and the acreage and expiration date information for each SUP is as
follows:
Forest Service Resort
Breckenridge
Acres
5,702
Expiration Date
December 31, 2029
Vail Mountain
12,226
December 1, 2031
Keystone
Beaver Creek
Heavenly
Mount Snow
Attitash
Wildcat
Kirkwood
Stevens Pass
Crested Butte
8,376
3,801
7,050
894
279
953
2,330
2,443
4,350
December 31, 2032
November 8, 2039
May 1, 2042
April 4, 2047
April 4, 2047
November 18, 2050
March 1, 2052
August 31, 2058
September 27, 2058
We anticipate requesting a new SUP for each Forest Service Resort prior to its expiration date as provided by Forest Service
regulations and the terms of each existing SUP. We are not aware of the Forest Service refusing to issue a new SUP to replace
an expiring SUP for a ski resort in operation at the time of expiration. The Forest Service can also terminate a SUP if it
determines that termination is required in the public interest. However, to our knowledge, no SUP has ever been terminated by
the Forest Service over the opposition of the permit holder.
Each SUP contains a number of requirements, including indemnifying the Forest Service from third-party claims arising out of
our operation under the SUP and compliance with applicable laws, such as those relating to water quality and endangered or
threatened species. For use of the land authorized by the SUPs, we pay a fee to the Forest Service ranging from 1.5% to 4.0% of
adjusted gross revenue for activities authorized by the SUPs. Included in the calculation are sales from, among other things, lift
tickets, pass products, ski school lessons, food and beverage, certain summer activities, equipment rentals and retail
merchandise.
The SUPs may be revised or amended to accommodate changes initiated by us or by the Forest Service to change the permit
area or permitted uses. The Forest Service may amend a SUP if it determines that such amendment is in the public interest.
While the Forest Service is required to seek the permit holder’s consent to any amendment, an amendment can be finalized over
a permit holder’s objection. Permit amendments must be consistent with the Forest Plan and are subject to the provisions of the
National Environmental Policy Act (“NEPA”), both of which are discussed below.
The 1986 Act requires a Master Development Plan (“MDP”) for each ski area that is granted a SUP, and all improvements that
we propose to make on National Forest System lands under any of our SUPs must be included in a MDP, which describes the
existing and proposed facilities, developments and area of activity within the permit area. The MDPs are reviewed by the Forest
Service for compliance with the Forest Plan and other applicable laws and, if found to be compliant, are accepted by the Forest
Service. Notwithstanding acceptance by the Forest Service of the conceptual MDPs, individual projects still require separate
applications and compliance with NEPA and other applicable laws before the Forest Service will approve such projects. We
update or amend our MDPs for our Forest Service Resorts from time to time.
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Whistler Blackcomb
Whistler Blackcomb is comprised of two mountains: Whistler Mountain and Blackcomb Mountain. Whistler Mountain and
Blackcomb Mountain are located on Crown Land within the traditional territory of the Squamish and Lil’wat Nations. The
relationship between Whistler Blackcomb and Her Majesty, the Queen in Right of British Columbia (the “Province”) is largely
governed by Master Development Agreements (the “MDAs”) between the Province and Whistler Mountain Resort Limited
Partnership (“Whistler LP”) with respect to Whistler Mountain, and between the Province and Blackcomb Skiing Enterprises
Limited Partnership (“Blackcomb LP”) with respect to Blackcomb Mountain. Together, Whistler LP and Blackcomb LP are
referred to as the “Partnerships.”
The MDAs, which were entered into in February 2017, have a term of 60 years (expiring on February 23, 2077) and are
replaceable for an additional 60 years by option exercisable by the Partnerships after the first 30 years of the initial term. In
accordance with the MDAs, the Partnerships are obligated to pay annual fees to the Province at a percentage of gross revenues
related to the operation of certain activities at Whistler Blackcomb.
The MDAs require that each of the mountains be developed, operated and maintained in accordance with its respective master
plan, which contains requirements as to matters such as trail design and development, passenger lift development and
environmental concerns. The MDAs grant a general license to use the Whistler Mountain lands and the Blackcomb Mountain
lands for the operation and development of Whistler Blackcomb. The MDAs also provide for the granting of specific tenures of
land owned by the Province to the Whistler LP or the Blackcomb LP, as applicable, by way of rights-of-way, leases or licenses.
Each Partnership is permitted to develop new improvements to Whistler Mountain or Blackcomb Mountain, as the case may be,
within standard municipal type development control conditions. We are obligated to indemnify the Province from third-party
claims arising out of our operations under the MDAs.
Northeast Resorts
Stowe and Okemo operate partially on land that we own and partially on land we lease from the State of Vermont. With respect
to Stowe, the land we own is on the Spruce Peak side of the resort while the land we lease from the State of Vermont is located
on Mt. Mansfield in the Mt. Mansfield State Forest. The initial ten year term of the lease commenced in June 1967, and the
lease provides for eight separate ten year extension options. The current term of the lease extends through June 2027, and there
are three remaining ten year extension options. With respect to Okemo, we own the Jackson Gore base area land and lease most
of the skiable terrain from the State of Vermont. The initial ten year term of the lease commenced in December 1963, and the
lease provides for eight separate ten year extension options. The current term of the lease extends through December 2023, and
there are three remaining ten year extension options. Under both leases, the land can be used for the development and operation
of a ski area including ski trails, ski lifts, warming shelters, restaurants and maintenance facilities. For use of the land under the
leases, we pay a fee to the State of Vermont based on revenue for activities authorized by the lease, such as lift tickets, pass
products, food and beverage, summer activities and retail merchandise. We are obligated to indemnify the State of Vermont
from third-party claims arising out of our operations under the lease.
Mount Sunapee lies within the Mount Sunapee State Park and operates on land that we lease from the State of New Hampshire.
The initial twenty year term of the lease commenced in July 1998, and the lease provides for three separate ten year extension
options. The current term of the lease extends through June 2028, and there are two remaining ten year extension options. The
land can be managed and operated as a ski area and summer recreational facility, including all of its support activities, to
provide year-round outdoor recreation. For use of the land under the lease, we pay a fee to the State of New Hampshire that
includes both a base fee and a fee based on revenue from activities authorized by the lease, such as lift tickets, pass products,
food and beverage, summer activities and retail merchandise. We are obligated to indemnify the State of New Hampshire from
third-party claims arising out of our operations under the lease.
Laurel Mountain
Laurel Mountain Ski Area operates within Laurel Mountain State Park (“State Park”) under a Concession Lease Agreement (the
“Lease Agreement”) with the Commonwealth of Pennsylvania, acting through the Department of Conservation and Natural
Resources (“Department”). The Lease Agreement, first entered into on October 15, 2018, allows for ski operations on
approximately 387 acres of the State Park, including the existing ski area, buildings and equipment owned by the Department.
The Lease Agreement is automatically renewed for a total of 35 one-year terms through October 31, 2051. We pay a fixed
annual rent, as well and an additional amount based on the number of skier visits, with a cap subject to semi-annual consumer
price index adjustments.
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Australian Resorts
Perisher is located in the Kosciuszko National Park, the largest national park in New South Wales, Australia. The resort
includes four villages (Perisher Valley, Smiggin Holes, Guthega and Blue Cow) and their associated ski fields, as well as the
site of the Skitube Alpine Railway at Bullock’s Flat, which is accredited in accordance with the Rail Safety National Law
(NSW) No. 82a. The Office of Environment and Heritage (“OEH”), an agency of the New South Wales government, which is
part of the Department of Planning and Environment, is responsible for the protection and conservation of the Kosciuszko
National Park. The National Parks and Wildlife Act 1974 (NSW) (“NPW Act”) establishes the National Parks and Wildlife
Service and is responsible for the control and management of the Kosciusko National Park.
The NPW Act requires the Kosciuszko National Park to be managed in accordance with the principles specified in that
legislation, including the provision for sustainable visitor or tourist use and enjoyment that is compatible with the conservation
of the national park’s natural and cultural values. The legislation also authorizes the Minister for the Environment and the
Minister for Heritage (the “Minister”) to grant leases and licenses of land within the Kosciuszko National Park for various
purposes, including for purposes related to sustainable visitor or tourist use and enjoyment. Under this power, the Minister has
granted to Perisher a lease and a license of specified land within the Kosciusko National Park until June 30, 2048, with an
option to renew for an additional period of 20 years. The Minister has also granted Perisher a lease of the parking lot at Perisher
Valley that expires on December 31, 2025. Subject to certain conditions being met, the lease for the Perisher Valley parking lot
can be extended until June 30, 2048, with an option to renew for a further 20 years. The lease and license provide for the
payment of a minimum annual base rent with periodic increases in base rent over the term, turnover rent payments based on a
percentage of certain gross revenue, remittance of park user fees and certain other charges, also subject to periodic increases
over the term.
Falls Creek and Hotham are located in the Alpine National Park in Victoria, Australia. Falls Creek and Hotham both operate on
Crown land permanently reserved under the Crown Land (Reserves) Act 1978 (Vic), with the exception of three small parcels of
freehold land within the Hotham resort area. Each resort is subject to the Alpine Resorts (Management) Act 1997 (Vic) (the
“ARM Act”), which is in place to manage the development, promotion, management and use of the resorts on a sustainable
basis and in a manner that is compatible with the alpine environment. The ARM Act established the Alpine Resorts
Commission to plan for the direction and sustainable growth of Victoria’s five alpine resorts (including Falls Creek and
Hotham). This includes review and coordination of the implementation of an Alpine Resorts Strategic Plan to which Falls
Creek and Hotham are subject.
The ARM Act also established each of the Falls Creek Resort Management Board and Hotham Resort Management Board (the
“RMBs”), each of which is appointed by, and responsible to, the Minister for Energy, Environment and Climate Change (the
“Minister”). The RMBs are responsible for the management and collection of fees for entrance into the Alpine National Park
and from Falls Creek and Hotham ski resorts. The ARM Act authorizes the RMBs to grant leases subject to Ministerial
approval, and under this power, the entities operating the Hotham and Falls Creek resorts have each been leased land within the
Alpine National Park under various long-term leases with differing expiration dates. The main lease for the ski field at Falls
Creek expires December 31, 2040, while the main lease for the ski field at Hotham expires December 31, 2057. The key ski
field leases provide for the payment of rent with both a fixed and variable component, a community service charge payable to
the ARCC and a ski patrol contribution payable to RMBs. At Hotham, we also lease land known as ‘Dinner Plain’ within the
Alpine National Park which expires on June 30, 2031, with an option to extend for a further 10 years.
The Alpine Resorts (Management) Regulations 2009 (Vic) gives the RMBs the power to declare the snow season, temporarily
close the resort to entry if there is a significant danger to public safety, determine parts of a resort to which entry is prohibited,
set aside areas of the resort for public use, parking, driving of vehicles, or landing of aircraft, and determine the areas for cross
country ski trails, skiing, snowboarding and other snow play activities.
Andermatt-Sedrun
Andermatt-Sedrun, acquired by the Company on August 3, 2022, is located in the Usern Valley of the Swiss Alps and
comprises five mountains (Gemsstock, Nätschen, Sedrun/Oberalp, Realp and Valtgeva). Ski operations are conducted on land
owned by Andermatt Swiss Alps AG (“ASA”) as freehold or leasehold properties, land owned by Usern Corporation, land
owned by the municipality of Tujetsch and land owned by private property owners.
ASA holds three leasehold properties, which are owned by either Usern Corporation, a corporation under public law consisting
of all the citizens of the Usern Valley, or the Swiss Confederation, namely the Federal Department of Defense, Civil Protection,
and Sport (“DDPS”). For the land owned by Usern Corporation, ASA and Usern Corporation have entered into a main
framework concession agreement, dated August 13, 2013, which sets forth the terms and conditions for the use of the land in
connection with ski infrastructure facilities in the Gemsstock and Nätschen-Gütsch-Oberalp areas (“Ursern Framework
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Concession”). The Ursern Framework Concession was entered into for a fixed term until December 31, 2032. An application
for renewal of the Ursern Framework Concession must be submitted at least 12 months prior to the expiration of the concession
agreement, and we anticipate applying for the renewal. For the land owned by the Swiss Confederation, ASA has entered into
leasehold agreements with the DDPS, which have a term of 50 years expiring on April 10, 2067 and March 13, 2068.
Another part of the land on which the Andermatt-Sedrun resort operations are conducted is owned by the municipality of
Tujetsch. By means of a personal easement agreement dated October 12, 2012, ASA was granted various building rights and
rights of way in order to build, operate and maintain the T-Bars and chairlifts on Tujetsch's property. The personal easement
agreement was entered into for a fixed term until October 12, 2032, and we anticipate applying for renewal.
With respect to Swiss operations, companies who provide for regular and commercial passenger transportation by rail, road and
water as well as by cable cars and elevators must obtain a passenger transport concession from the Federal Office of Transport
(“FOT”). Under the Ursern Framework Concession, ASA was granted the required concessions for all ski infrastructure
facilities and the usage of the ski slopes on the property of the Ursern Corporation. In the course of expanding the ski
infrastructure facilities Urserntal-Oberalp, the FOT granted ASA passenger transport concessions for a total of 12 cableway
installations by means of a plan approval dated May 30, 2014. Each passenger transport concession has a separate expiration
date between 2026 and 2042, and we will then be able to apply for an extension or new concession. Additionally, the plan
approval included concessions and approvals for ancillary installations such as ski slopes, snowmaking systems, rolling carpets,
railway station passenger subway and clearings.
Concession Agreements
National Park Concessioner Properties
GTLC operates three lodging properties, food and beverage services, retail, camping and other services within the Grand Teton
National Park under a concession agreement with the NPS. Our concession agreement with the NPS for GTLC, which had an
initial term expiration date of December 31, 2021, was amended in June 2021 to extend the term to December 31, 2023. The
NPS currently expects to release a contract solicitation for the services offered by GTLC by the end of calendar year 2023. We
currently expect that our existing agreement will be extended for an additional one year through December 31, 2024 due to the
time needed for solicitation, preparation, review and award of a new contract. We expect the NPS to confirm this extension in
the fall of 2023. We pay a fee to the NPS of a percentage of the majority of our sales occurring in Grand Teton National Park.
Flagg Ranch Company, a wholly-owned subsidiary, provides lodging, food and beverage services, retail, service station,
recreation and other services on the Parkway located between Grand Teton National Park and Yellowstone National Park. Our
concession contract with the NPS for the Parkway expires on October 31, 2028, and we pay a fee to the NPS of a percentage of
the majority of our sales occurring in the Parkway.
Prior to expiration of these concession contracts, we will have the opportunity to bid against other prospective concessioners for
award of a new contract. The NPS may suspend operations under the concession contract at any time if the NPS determines it is
necessary to protect visitors or resources within the Grand Teton National Park or during a Federal Government shutdown. The
NPS may also terminate the concession contract for breach, following notice and a 15 day cure period or if it believes
termination is necessary to protect visitors or resources within the Grand Teton National Park.
Available Information
We file with or furnish to the Securities and Exchange Commission (“SEC”) reports, including our annual report on Form 10-
K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These reports and proxy statements are
available free of charge on our corporate website www.vailresorts.com as soon as reasonably practicable after they are
electronically filed with or furnished to the SEC. We also use our website as a means of disclosing additional information,
including for complying with our disclosure obligations under the SEC’s Regulation FD (Fair Disclosure). Information on our
websites does not constitute part of this document. Materials filed with or furnished to the SEC are also made available on its
website at www.sec.gov.
ITEM 1A.
RISK FACTORS.
Our operations and financial results are subject to various risks and uncertainties that could adversely affect our financial
position, results of operations and cash flows. The risks described below should carefully be considered together with the other
information contained in this report.
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Risks Related to Our Business
We are subject to the risk of prolonged weakness in general economic conditions including adverse effects on the overall
travel and leisure related industries.
Skiing, travel and tourism are discretionary recreational activities that can entail a relatively high cost of participation and may
be adversely affected by economic slowdown or recession. Economic conditions in North America, Europe and parts of the rest
of the world, including inflationary pressures, rising interest rates, supply chain disruption, fluctuating commodity pricing,
geopolitical uncertainties, increased labor costs and shortages, increased fuel prices, high unemployment, erosion of consumer
confidence, health pandemics, sovereign debt issues and financial instability in the global markets, among other factors, could
have negative effects on the travel and leisure industry and on our results of operations. As a result of these and other economic
uncertainties, we have experienced and may continue to experience changes in booking trends including guest reservations
made much closer to the actual date of stay, a decrease in the length of stay, a decrease in consumer spending and/or a decrease
in group bookings. We cannot predict what further impact these uncertainties may continue to have on overall travel and leisure
or more specifically, on our guest visitation, guest spending or other related trends and the ultimate impact it will have on our
results of operations. Additionally, the actual or perceived fear of weakness in the economy could also lead to decreased
spending by our guests. This could be further exacerbated by the fact that we charge some of the highest prices for single day
lift tickets and ancillary services in the ski industry; however, we offer pass products, including the Epic Day Pass, that are
available at a discount to the single day lift ticket prices. In the event of a decrease in visitation and overall guest spending we
may decide we need to offer a higher amount of discounts and incentives than we have historically, which would adversely
impact our operating results. Our Resorts also serve as a destination for international guests. To the extent there are material
changes in exchange rates relative to the U.S. dollar or travel restrictions in place due to inflation, geopolitical conflicts, health
pandemics or other factors, it could impact the volume of international visitation, which could have a significant impact on our
operating results.
We may be adversely impacted by the effects of high or prolonged inflation and rising interest rates.
Inflation increases the cost of goods we purchase and services we buy, the cost of capital projects and wages and benefits for
our workforce. Although we may take measures to mitigate the impact of inflation through pricing actions or cost reduction
measures, if we are not able to offset inflationary costs, our results of operations will be negatively impacted and possibly in a
material manner. As a result, the impact of high and prolonged inflation could have a material adverse effect on our business,
financial condition, or results of operations. Inflationary pressures also increase the cost of living and cost of travel, which
decreases consumers’ disposable income and could impact our guests’ discretionary spending habits or willingness to visit our
Resorts, which could reduce customer demand for the products and services that we offer and negatively impact our financial
condition or our results of operations. In addition, the existence of inflation in certain economies has resulted in, and may
continue to result in, rising interest rates. Our business could be adversely impacted by increases in the cost of borrowing from
rising interest rates. Rising interest rates increase the borrowing costs on new debt, including debt we may refinance, and could
affect the fair value of our investments.
Our Epic Coverage program may require us to provide significant refunds to our pass product holders, which would
result in reduced revenue and also exposes us to the risk of customer complaints and negative perception about our pass
products.
Epic Coverage is included with the purchase of all pass products for no additional charge. Epic Coverage offers refunds to pass
product holders if certain qualifying personal or Resort closure events occur before or during the ski season, subject to express
terms and conditions. Accordingly, to the extent that a significant volume of qualifying events occur during the ski season, we
could be required to provide a significant amount of refunds to our pass product holders, subject to express terms and
conditions, which could have a material negative impact on our financial performance and condition.
The estimated amount of refunds reduce the amount of pass product revenue recognized by the Company. To estimate the
amount of refunds under Epic Coverage, the Company considers historical claims data for personal events and the Company’s
operating plans for its Resorts. The Company believes the estimates of refunds are reasonable; however, the program is subject
to a number of variables and uncertainties, and therefore actual results could vary materially from such estimates, and the
Company could be required to refund significantly higher amounts than estimated.
Epic Coverage has also resulted in customer complaints and negative perception by customers who believe they are entitled to a
refund for events that do not qualify under the express terms and conditions of the program. Any complaints posted by
customers on social media platforms, even if inaccurate, may harm our reputation, and may divert management’s time and
attention away from other business matters.
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We are vulnerable to unfavorable weather conditions and the impact of natural disasters.
Our ability to attract guests to our Resorts is partly influenced by weather conditions and by the amount and timing of snowfall
during the ski season. Unfavorable weather conditions can adversely affect skier visits and our revenue and profits.
Unseasonably warm weather may result in inadequate natural snowfall and reduce skiable terrain, which increases the cost of
snowmaking and could render snowmaking, wholly or partially, ineffective in maintaining quality skiing conditions, including
in areas which are not accessible by snowmaking equipment. On the other hand, excessive natural snowfall may significantly
increase the costs incurred to groom trails and may make it difficult for guests to access our Resorts.
Additionally, there is scientific research that emissions of greenhouse gases continue to alter the composition of the global
atmosphere in ways that are affecting and are expected to continue affecting the global climate. The effect of climate change,
including any impact of global warming, could have a material adverse effect on our results of operations as a result of
decreased snowfall, increased weather variability and/or warmer overall temperatures, which could adversely affect skier visits
and our revenue and profits. Revenues and profits generated from mountain summer activities/sightseeing and golf peak season
operations are not nearly sufficient to off-set off-season losses from our other mountain and lodging operations. This impact
could be exacerbated by climate change.
There can be no assurance that our Resorts will receive seasonal snowfalls near their historical averages. As an example of
weather variability, throughout the 2022/2023 North American ski season, unseasonably warm and extreme cold weather
disrupted operating days, impacted demand and increased operating costs at our eastern U.S. Resorts, and significant
snowstorms impacted resort access and our ability to fully open our Resorts in the Tahoe region at certain times. Past snowfall
levels or consistency of snow conditions can impact sales of pass products or other advanced bookings. Additionally, the early
season snow conditions and skier perceptions of early season snow conditions can influence the momentum and success of the
overall ski season. Unfavorable weather conditions can adversely affect our Resorts and lodging properties as guests tend to
delay or postpone vacations if conditions differ from those that are typical at such Resorts for a given season. Although we have
created geographic diversification to help mitigate the impact of weather variability, there is no way for us to predict future
weather patterns or the impact that weather patterns may have on our results of operations or visitation.
A severe natural disaster, such as a forest fire, may interrupt our operations, damage our properties, reduce the number of guests
who visit our Resorts in affected areas and negatively impact our revenue and profitability. Damage to our properties could take
a long time to repair and there is no guarantee that we would have adequate insurance to cover the costs of repair and recoup
lost profits. Furthermore, such a disaster may interrupt or impede access to our affected properties or require evacuations and
may cause visits to our affected properties to decrease for an indefinite period. The ability to attract visitors to our Resorts is
also influenced by the aesthetics and natural beauty of the outdoor environment where our Resorts are located. A severe forest
fire or other severe impacts from naturally occurring events could negatively impact the natural beauty of our Resorts and have
a long-term negative impact on our overall guest visitation as it could take several years for the environment to recover.
Leisure travel is particularly susceptible to various factors outside of our control, including terrorism, the uncertainty of
military and geopolitical conflicts, the cost and availability of travel options and changing consumer preferences or
willingness to travel.
Our business is sensitive to the willingness of our guests to travel. Adverse economic conditions, pandemics, acts of terrorism,
political events and developments in military and geopolitical conflicts in areas of the world from which we draw our guests
could depress the public’s propensity to travel and cause severe disruptions in both domestic and international air travel and
consumer discretionary spending, which could reduce the number of visitors to our Resorts and have an adverse effect on our
results of operations. Many of our guests travel by air and the impact of higher prices for commercial airline services,
availability of air services and willingness of guests to travel by air could cause a decrease in visitation by Destination guests to
our Resorts. Visitation may also decrease if widespread airline or airport disruptions or flight cancellations occur. A significant
portion of our guests also travel by vehicle and higher gasoline prices or willingness of guests to travel generally due to safety
or traffic concerns could cause a decrease in visitation by guests who would typically drive to our Resorts. Higher cost of travel
may also affect the amount that guests are willing to spend at our Resorts and could negatively impact our revenue particularly
for lodging, ski school, dining and retail/rental. In addition, economic volatility and uncertainty, supply chain disruptions,
increased fuel prices and increases to cost of travel (as a result of geopolitical factors or otherwise) may adversely affect our
business and results of operations.
Additionally, our success depends on our ability to attract visitors to our Resorts. Changes in consumer tastes and preferences,
particularly those affecting the popularity of skiing and snowboarding, and other social and demographic trends could adversely
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affect the number of skier visits during a ski season. A significant decline in skier visits compared to historical levels would
have a material adverse effect on our business, prospects, financial condition, results of operations and cash flows.
Pandemics and public health emergencies could materially disrupt our business and negatively impact our results of
operations, cash flows and financial condition.
Pandemics and public health emergencies, such as the COVID-19 pandemic, may impact our results of operations, cash flows
and financial condition in ways that are uncertain, unpredictable and outside of our control. The extent of the impact of such an
event depends on the severity and duration of the public health emergency or pandemic, as well as the nature and duration of
federal, state and local laws, orders, rules, emergency temporary standards, regulations and mandates, together with protocols
and contractual requirements implemented by our customers, that may be enacted or newly enforced in response. Additionally,
our ability to provide our services during such an event may be dependent on the governmental or societal responses to these
circumstances in the markets in which we operate. A pandemic or public health emergency is likely to heighten and exacerbate
the risks described herein. We experienced many of these risks in connection with the COVID-19 pandemic. Any resurgence of
infection rates or the spread of new variants or viruses could adversely affect our revenue, results of operations and cash flows.
Cyberattacks or other interruptions to or disruption of our information technology systems and services could disrupt
our business.
Our business relies on the continuous operation of information technology systems and services. Despite our efforts, our
information networks and systems are vulnerable to service interruptions or to security breaches from inadvertent or intentional
actions by our employees or vendors, natural disasters, system or equipment malfunctions, power outages, computer viruses or
intentional attacks by malicious third parties, which could persist undetected for an extended period of time. Any interruption to
these systems and services could adversely impact our business, including lost revenue, customer claims, damage to reputation,
litigation, and/or denial or interruption to our processing of transactions and/or the services we provide to customers. We also
provide information to third party service providers and rely on third party service providers for the provision of information
technology services. There is a risk that the information held by third parties could be disclosed, otherwise compromised, or
disrupted. We carry insurance for many of these adverse events, including cyber security insurance, but our insurance coverage
may not always be sufficient to meet all of our liabilities or our losses.
There has been a rise in the number of sophisticated cyberattacks on network and information systems, including ransomware
attacks that prevent the target from accessing its own data and/or systems until a ransom is paid. As a result, the risks associated
with such an event continue to increase. We have experienced cybersecurity threats and incidents, none of which have been
material. We have taken, and continue to take, steps to address these concerns by implementing security and internal controls.
However, there can be no assurance that a system interruption, security breach or unauthorized access will not occur. Cyber
threats and attacks are constantly evolving and becoming more sophisticated, which increases the difficulty and cost of
detecting and defending against them. Cyber threats and attacks can have cascading impacts across networks, systems and
operations. Any such interruption, breach or unauthorized access to our network or systems, or the networks or systems of our
vendors, could adversely affect our business operations and result in the loss of critical or sensitive confidential information or
intellectual property, as well as impact our ability to meet regulatory or compliance obligations, and could result in financial,
legal, business and reputational harm to us. These events also could result in large expenditures to repair or replace the damaged
properties, products, services, networks or information systems to protect them from similar events in the future.
Failure to maintain the integrity and security of our internal, employee or guest data could result in damages to our
reputation and subject us to costs, fines or lawsuits.
Our business relies on the use of large volumes of data. We collect and retain guest data, including credit card numbers and
other sensitive personal information, for various business purposes, such as processing transactions, marketing and other
promotional purposes. We also maintain personal information about our employees. We could make faulty decisions if data is
inaccurate or incomplete. Maintaining the integrity and security of data can be costly and is critical to our business, and our
guests and employees have a high expectation that we will adequately protect their personal information. A significant theft,
loss, loss of access to, or fraudulent use of customer, employee, or company data held by us or our service providers could
adversely impact our reputation, and could result in significant remedial and other expenses, fines, and/or litigation.
Our business is highly seasonal.
Our mountain and lodging operations are highly seasonal in nature. Peak operating season for our North American and
European Resorts is from mid-December to mid-April, and accordingly, revenue and profits from our mountain and most of our
lodging operations are substantially lower and historically result in losses from late spring to late fall. Conversely, peak
operating seasons for our Australian Resorts, GTLC and Flagg Ranch, mountain summer activities (including our Epic
Discovery program), sightseeing and our golf courses generally occur from June to the end of September. Revenue and profits
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generated by our Australian Resorts, GTLC and Flagg Ranch, mountain summer activities/sightseeing and golf peak season
operations are not nearly sufficient to fully offset our off-season losses from our other mountain and lodging operations. For
Fiscal 2023, approximately 81% of total combined Mountain and Lodging segment net revenue (excluding Lodging segment
revenue associated with reimbursement of payroll costs) was earned during our second and third fiscal quarters. This
seasonality is partially mitigated by the sale of pass products (which for Fiscal 2023 accounted for approximately 61% of the
total lift revenue) predominately occurring during the period prior to the start of the ski season as the cash from those sales is
collected in advance and revenue is primarily recognized in the second and third fiscal quarters. In addition, the timing of major
holidays and school breaks can impact vacation patterns and therefore visitation at our destination mountain Resorts and
regional ski areas. If we were to experience an adverse event or realize a significant deterioration in our operating results during
our peak periods (our fiscal second and third quarters) we would be unable to fully recover any significant declines in such
fiscal year due to the seasonality of our business. Operating results for any quarter are not necessarily indicative of the results
that may be achieved for any subsequent quarter or for a full fiscal year (see Notes to Consolidated Financial Statements).
We face significant competition.
The ski resort and lodging industries are highly competitive. There are approximately 760 ski areas in North America, including
approximately 480 in the U.S. that serve local and destination guests, and these ski areas can be more or less impacted by
weather conditions based on their location and snowmaking capabilities. The factors that we believe are important to customers
include:
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proximity to population centers;
availability and cost of transportation to ski areas;
availability and quality of lodging options and other amenities in resort areas;
ease of travel to ski areas (including direct flights by major airlines);
pricing of lift tickets and/or pass products;
the magnitude, quality and price of related ancillary services (ski school, dining and retail/rental);
quality of snowmaking;
type and quality of skiing and snowboarding offered;
duration of the ski season;
weather conditions; and
reputation.
There are many competing options for our guests, including other major resorts in Colorado, Utah, California, Nevada, the
Pacific Northwest, Northeast and Southwest United States, and British Columbia, Canada, Australia, Switzerland, and other
major destination ski areas worldwide. Our guests can choose from any of these alternatives, as well as non-skiing vacation
options and destinations around the world. In addition, other forms of leisure such as sporting events and participation in other
competing indoor and outdoor recreational activities are available to potential guests.
Our retail/rental business competes with numerous other national, regional, local and online retail and rental businesses.
RockResorts hotels, our other hotels and our property management business compete with numerous other hotel and property
management companies. Each of these competing businesses may have greater financial resources than we do and they may be
able to adapt more quickly to changes in customer requirements or devote greater resources to promotion of their offerings than
us. Additionally these competing businesses may offer locations, pricing or other factors that appeal to potential customers.
The high fixed cost structure of mountain resort operations can result in significantly lower margins if revenues decline.
The cost structure of our mountain Resort operations has a significant fixed component with variable expenses including, but
not limited to, land use permit or lease fees and other resort related fees, credit card fees, retail/rental cost of sales, labor, and
resort, dining and ski school operations. Any material declines in the economy, elevated geopolitical uncertainties and/or
significant changes in historical snowfall patterns, as well as other risk factors discussed herein, could adversely affect revenue.
As such, our margins, profits and cash flows may be materially reduced due to declines in revenue given our relatively high
fixed cost structure. In addition, inflation has accelerated in the U.S. and globally due in part to global supply chain issues, the
Ukraine-Russia war, a rise in energy prices and strong consumer demand. Increases in expenses as a result of this inflationary
environment and other economic factors may adversely impact wages and other labor costs, energy, healthcare, insurance,
transportation and fuel, cost of goods, property taxes, minimum lease payments and other expenses and operating costs included
in our fixed cost structure, which may also reduce our margin, profits and cash flows.
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We may not be able to fund resort capital expenditures.
We regularly expend capital to construct, maintain and renovate our mountain Resorts and properties in order to remain
competitive, maintain the value and brand standards of our mountain Resorts and properties and comply with applicable laws
and regulations. We cannot always predict where capital will need to be expended in a given fiscal year and capital
expenditures can increase due to circumstances beyond our control. We currently anticipate that we will spend approximately
$204 million to $209 million on capital projects in calendar year 2023.
Our ability to fund capital expenditures will depend on our ability to generate sufficient cash flow from operations and/or to
borrow from third parties in the debt market or raise additional capital in the equity market. We cannot provide assurances that
our operations will be able to generate sufficient cash flow to fund such capital expenditures, or that we will be able to obtain
sufficient capital from other sources on adequate terms, or at all, especially considering rising interest rates. Our ability to
generate cash flow and to obtain third-party financing will depend upon many factors, including:
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our future operating performance;
general economic conditions, including interest rates, and economic conditions affecting the resort industry, the ski
industry and the capital markets;
competition; and
legislative and regulatory matters affecting our operations and business;
Any inability to generate sufficient cash flows from operations or to obtain adequate third-party financing could cause us to
delay or abandon certain projects and/or plans.
A disruption in our water supply would impact our snowmaking capabilities and operations.
Our operations are heavily dependent upon our access to adequate supplies of water for snowmaking and to otherwise conduct
our operations. Our mountain Resorts are subject to federal, state, provincial and local laws and regulations relating to water
rights. Changes in these laws and regulations may adversely affect our operations. In addition, a severe and prolonged drought
may adversely affect our water supply and increase the cost of snowmaking. A significant change in law or policy, impact from
climate change or any other interference with our access to adequate supplies of water to support our current operations or an
expansion of our operations would have a material adverse effect on our business, prospects, financial position, results of
operations and cash flows.
We rely on various government permits and landlord approvals at our U.S. resorts.
Our U.S. Resort operations require permits and approvals from certain federal, state and local authorities, including the Forest
Service, U.S. Army Corps of Engineers, the States of Vermont, New Hampshire and Pennsylvania and the NPS. Virtually all of
our ski trails and related activities, including our summer activities, at Vail Mountain, Breckenridge, Keystone, Crested Butte,
Stevens Pass, Heavenly, Kirkwood, Mount Snow, Wildcat, a majority of Beaver Creek and portions of Attitash are located on
National Forest land. The Forest Service has granted us permits to use these lands, but maintains the right to review and
approve many operational matters, as well as the location, design and construction of improvements in these areas. The
expiration dates for our permits are set forth in the Business section of this Form 10-K under the heading “Contracts with
Governmental Authorities for Resort Operations”.
The Forest Service can terminate or amend these permits if, in its opinion, such termination is required in the public interest. A
termination or amendment of any of our permits could have a materially adverse effect on our business and operations. In order
to undertake improvements and new development, we must apply for permits and other approvals. These efforts, if
unsuccessful, could impact our expansion efforts. Furthermore, Congress may materially increase the fees we pay to the Forest
Service for use of these National Forest lands.
Stowe and Okemo are partially located on land we lease from the State of Vermont, Mount Sunapee is located on land we lease
from the State of New Hampshire and Laurel Mountain is located on land we lease from the State of Pennsylvania. We are
required to seek approval from such states for certain developments and improvements made to the resort. Certain other resorts
are operated on land under long-term leases with third parties. For example, operations at our Northstar, Park City and Mad
River Mountain Resorts are conducted pursuant to long-term leases with third parties who require us to operate the Resorts in
accordance with the terms of the leases and seek certain approvals from the respective landlords for improvements made to the
Resorts. The initial lease term for Northstar with affiliates of EPR Properties expires in January 2027 and allows for three 10-
year renewal options. We entered into a transaction agreement, master lease agreement and ancillary transaction documents
with affiliate companies of Talisker Corporation (“Talisker”), and the initial lease term for our Park City resort with Talisker
expires in May 2063. Following the initial lease term expiration, we have six 50-year renewal options. Additionally, GTLC and
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Flagg Ranch operate under concession agreements with the NPS that expire on December 31, 2023 (which we currently expect
will be extended in the fall of 2023 for an additional year through December 31, 2024 due to the time needed for solicitation,
preparation, review and award of a new contract) and October 31, 2028, respectively. There is no guarantee that at the end of
the lease/license or agreements under which we operate our Resorts we will renew or, if desired, be able to negotiate new terms
that are favorable to us. Additionally, our Resorts that operate on privately-owned land are subject to local land use regulation
and oversight by county and/or town governments, and we may not be able to obtain the requisite approvals needed for resort
improvements or expansions. Failure to comply with the provisions, obligations and terms (including renewal requirements and
deadlines) of our material permits and leases could adversely impact our operating results.
We rely on foreign government leases and landlord approvals, and are subject to certain related laws and regulations, at
our international resorts.
Our international Resort operations require permits and approvals from certain foreign authorities, including the (i) Province of
British Columbia, (ii) the New South Wales and Victoria, Australia governments and (iii) the DDPS, the municipality of
Tujetsch and the FOT in Switzerland. Our operations at Whistler Blackcomb are located on Crown Land within the traditional
territory of the Squamish and Lil’wat Nations, and the operations and future development of both Whistler Mountain and
Blackcomb Mountain are governed by Master Development Agreements, which expire on February 23, 2077. We have a lease
and a license for Perisher within the Kosciusko National Park which expires in June 2048, with an option to renew for an
additional period of 20 years. Perisher relies on a suite of planning approvals (and existing use rights) granted under the
Australian EPA Act to operate the resort. Strategic planning documents have been adopted to provide a framework for the
assessment and approval of future development at the resort. Perisher also holds a number of environmental approvals to
regulate its operations, including an environment protection license and a suite of dangerous goods licenses related to the
storage of diesel, heating oil and propane in storage tanks across the resort. Each of Falls Creek and a majority of Hotham is
located in the Alpine National Park in Victoria, Australia that is permanently reserved under the Crown Land Act and subject to
the ARM Act. The ARM Act established the Falls Creek RMB and the Hotham RMB, which is responsible for the management
and collection of fees from Falls Creek and Hotham, respectively, and the ARM Regulations give each of the Falls Creek RMB
and the Hotham RMB certain discretion over the operations of Falls Creek and Hotham, respectively, including the authority to
(i) declare the snow season, (ii) temporarily close the applicable resort if entry would be a significant danger to public safety
and (iii) determine which portions of the applicable resort are open to the public and the activities that are permitted on those
portions of such resort. Portions of our operations at Andermatt-Sedrun are located on land owned by (i) the DDPS and subject
to two leasehold agreements with ASA, each with a term of 50 years expiring on April 10, 2067 and March 13, 2068; and (ii)
the municipality of Tujetsch by means of a personal easement agreement which expires on October 12, 2032 with an option to
apply for renewal. We also hold a passenger transport concessions from the FOT, for a total of 12 cableway installations by
means of a plan approval dated May 3, 2014. Each passenger transport concession has a separate expiration date between 2026
and 2042, and we will then be able to apply for an extension or new concession. There is no guarantee that at the end of the
initial lease/license or agreements under which we operate our Resorts we will renew or, if desired, be able to negotiate new
terms that are favorable to us. Failure to comply with the provisions, obligations and terms (including renewal requirements and
deadlines) of our material permits and leases could adversely impact our operating results.
We are subject to extensive environmental and health and safety laws and regulations in the ordinary course of
business.
Our operations are subject to a variety of federal, state, local and foreign environmental laws and regulations including those
relating to air emissions, discharges to water, storage, treatment and disposal of wastes and other liquids, land use, remediation
of contaminated sites, protection of natural resources such as wetlands and sustainable visitor or tourist use and enjoyment. For
example, future expansions of certain of our mountain facilities must comply with applicable forest plans approved under the
National Forest Management Act, federal, state and foreign wildlife protection laws or local zoning requirements, and in
Vermont, our operations must comply with Act 250, which regulates the impacts of development to, among other things,
waterways, air, wildlife and earth resources, and any projects must be completed pursuant to a Master Plan. In addition, most
projects to improve, upgrade or expand our ski areas are subject to environmental review under the NEPA, FRPA, Act 250, the
CEQA, the Australian NPW Act, the Australian EPA Act or the Australian EP Act, as applicable. Our ski area improvement
proposals may not be approved or may be approved with modifications that substantially increase the cost or decrease the
desirability of implementing the project. From time to time our operations are subject to inspections by environmental
regulators or other regulatory agencies. We are also subject to worker health and safety requirements as well as various state
and local public health laws, rules, regulations and orders. We believe our operations are in substantial compliance with
applicable material environmental, health and safety requirements. However, our efforts to comply do not eliminate the risk that
we may be held liable, incur fines or be subject to claims for damages, and that the amount of any liability, fines, damages or
remediation costs may be material for, among other things, the presence or release of regulated materials at, on or emanating
from properties we now or formerly owned or operated, newly discovered environmental impacts or contamination at or from
any of our properties, or changes in environmental laws and regulations or their enforcement.
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Changes in security and privacy laws and regulations could increase our operating costs, increase our exposure to fines
and litigation, and adversely affect our ability to market our products, properties and services effectively.
The information, security and privacy requirements imposed by applicable laws and governmental regulation and the payment
card industry are increasingly demanding in the U.S. and other jurisdictions where we operate. Maintaining compliance with
applicable security and privacy regulations may increase our operating costs or our exposure to potential fines and litigation in
connection with the enforcement of such regulations, particularly in light of the launch of our new My Epic App, or otherwise
impact our ability to market our products, properties and services to our guests. In addition, any failure to maintain compliance
with such regulations may cause us to incur significant penalties and generate negative publicity, require us to change our
business practices, increase our costs and adversely affect our business. Any future changes or restrictions in U.S. or
international privacy laws could also adversely affect our operations, including our ability to transfer guest data. Changes in
U.S. or international law affecting marketing, solicitation or privacy, could adversely affect our marketing activities and force
changes in our marketing strategy or increase the costs of marketing. If access to lists of potential customers from travel service
providers or other companies with whom we have relationships was prohibited or otherwise restricted, our ability to develop
new customers and introduce them to our products could be impaired.
We rely on information technology to operate our businesses and maintain our competitiveness, and any failure to adapt
to technological developments or industry trends could harm our business or competitive position.
We depend on the use of sophisticated information technology and systems for central reservations, point of sale, marketing,
customer relationship management and communication, procurement, maintaining the privacy of guest and employee data,
administration and technologies we make available to our guests. We must continuously improve and upgrade our systems and
infrastructure to offer enhanced products, services, features and functionality, while maintaining the reliability and integrity of
our systems, network security and infrastructure. Particularly in light of the launch of our new My Epic App, we may not be
able to maintain our existing systems or replace or introduce new technologies and systems as quickly as we would like or in a
cost-effective manner, which may keep us from achieving the desired results in a timely manner, to the extent anticipated, or at
all. Also, we may be unable to devote adequate financial resources to new technologies and systems in the future. If any of
these events occur, our business and financial performance could suffer.
We may not be able to hire, train, reward and retain adequate team members and determine and maintain adequate
staffing, including our seasonal workforce, which may impact labor costs and our ability to achieve our operating,
growth and financial objectives.
Our long-term growth and profitability depend partially on our ability to recruit and retain high-quality employees to work in
and manage our Resorts. Adequate staffing and retention of qualified employees is a critical factor affecting our guests’
experiences in our Resorts. In addition, our mountain and lodging operations are highly dependent on a large seasonal
workforce. Maintaining adequate staffing is complicated and unpredictable. The market for the most qualified talent continues
to be highly competitive and we must provide competitive wages, benefits and workplace conditions to attract and retain the
most qualified employees, particularly during a time when we have seen significant wage inflation in the market for employees.
In addition, in many communities, the supply of resort-area housing is constrained due to market conditions, making it difficult
for our employees to obtain available, affordable housing. Further, zoning regulations, protracted approval processes and local
anti-development sentiment can prevent or substantially delay new housing projects that we or other parties may pursue to meet
the demand for new affordable housing stock.
Changes in immigration laws could also impact our workforce because we typically recruit and hire foreign nationals as part of
our seasonal workforce. A shortage of international workers, failure to adequately recruit and retain new domestic employees,
higher than expected attrition levels, or increased wages all could affect our ability to open and operate parts of our Resorts,
deliver guest service at traditional margins or achieve our labor cost objectives.
We are also subject to various federal, state and foreign laws governing matters such as minimum wage requirements, sick
leave pay, overtime compensation and other working conditions, work authorization requirements, discrimination and family
and medical leave. Cost of labor and labor-related benefits are primary components in the cost of our operations. Labor
shortages, affordable employee housing shortages, increased employee turnover and health care mandates can increase our
labor costs. We are subject to mandated minimum wage rates and we also experience market-driven pressures to pay wages
even higher than mandated minimum wages. This can result in increases not only to the wages of our minimum wage
employees but also to the wages paid to employees at wage rates that are above the minimum wage. During Fiscal 2023, we
increased our minimum wage for North American employees to $20 per hour and announced a substantial investment in our
human resource department to support more normalized staffing and operations at our Resorts. From time to time, we have
experienced non-union employees attempting to unionize. While only a very small portion of our employees are unionized at
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present, we may experience additional union activity in the future, which could lead to disruptions in our business, increases in
our operating costs and/or constraints on our operating flexibility. These potential labor impacts could adversely impact our
results of operations. For additional details, see “Business—Human Capital Management.”
We have recently acquired Andermatt-Sedrun, which was not subject to rules and regulations promulgated under the
Sarbanes-Oxley Act of 2002, as amended ("Sarbanes-Oxley"), and may therefore lack the internal controls that would
be required of a U.S. public company, which could ultimately affect our ability to ensure compliance with the
requirements of Section 404 of Sarbanes-Oxley.
We have recently acquired Andermatt-Sedrun, which was not previously subject to the rules and regulations promulgated under
Sarbanes-Oxley and accordingly was not required to establish and maintain an internal control infrastructure meeting the
standards promulgated under Sarbanes-Oxley. Our assessment of and conclusion on the effectiveness of our internal control
over financial reporting as of July 31, 2023 did not include certain elements of the internal controls of Andermatt-Sedrun,
which was acquired on August 3, 2022.
Although our management will continue to review and evaluate the effectiveness of our internal controls in light of this
acquisition, we cannot provide any assurances that there will be no significant deficiencies or material weaknesses in our
internal control over financial reporting. Any significant deficiencies or material weaknesses in the internal control structure of
our acquired businesses may cause significant deficiencies or material weaknesses in our internal control over financial
reporting, which could have a material adverse effect on our business and our ability to comply with Section 404 of Sarbanes-
Oxley.
Our business depends on the quality and reputation of our brands, and any deterioration in the quality or reputation of
these brands, including as a result of misappropriation of our intellectual property or the risk of accidents occurring at
our mountain resorts or competing mountain resorts, may reduce visitation and negatively impact our operations.
A negative public image or other adverse events could affect the reputation of one or more of our mountain Resorts, other
destination resorts, hotel properties and other businesses or more generally impact the reputation of our brands. Any resulting
harm on our business may be immediate without affording us an opportunity for redress or correction. Our ability to attract and
retain guests depends, in part, upon the external perceptions of the Company, the quality and safety of our Resorts, services and
activities, including summer activities, and our corporate and management integrity. While we maintain and promote an on-
mountain safety program, there are inherent risks associated with our Resort activities. From time to time in the past, accidents
and other injuries have occurred on Resort property. An accident or an injury at any of our Resorts or at resorts operated by
competitors, particularly an accident or injury involving the safety of guests and employees that receives media attention, could
negatively impact our brand or reputation, cause loss of consumer confidence in us, reduce visitation at our Resorts, and
negatively impact our results of operations.
The considerable expansion in the use of social media over recent years has compounded the impact of negative publicity.
Information posted on social media platforms at any time may be adverse to our interests or may be inaccurate, each of which
may harm our reputation or business. If the reputation or perceived quality of our brands declines, our market share, reputation,
business, financial condition or results of operations could be adversely impacted. Additionally, our intellectual property,
including our trademarks, domain names and other proprietary rights, constitutes a significant part of our value. Any
misappropriation, infringement or violation of our intellectual property rights could also diminish the value of our brands and
their market acceptance, competitive advantages or goodwill, which could adversely affect our business.
Increased scrutiny and changing expectations from investors, consumers, employees, regulators, and others regarding
our environmental, social and governance practices and reporting could cause us to incur additional costs, devote
additional resources and expose us to additional risks, which could adversely impact our reputation, customer
attraction, access to capital and employee recruitment and retention.
Companies across all industries are facing increasing scrutiny related to their environmental, social and governance (“ESG”)
practices and reporting. Investors, consumers, employees and other stakeholders have focused increasingly on ESG practices
and have placed increasing importance on the implications and social cost of their investments, purchases and other interactions
with companies. In 2017, we launched an ambitious Commitment to Zero pledge to have a zero net operating footprint by 2030,
which includes commitments to (i) achieving zero net emissions, (ii) zero waste to landfill, and (iii) zero net operating impact to
forests. Additionally, we were awarded the National Ski Area Association’s Golden Eagle Climate Change award at their 2023
annual conference; however we may not be able to sustain such recognition for our ESG efforts. If our ESG practices do not
meet investor, consumer or employee expectations related to our Commitment to Zero or any other ESG initiative, which
continue to evolve, or if we do not maintain recognition for our ESG efforts, our brand, reputation and customer retention may
be negatively impacted.
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Our ability to achieve any ESG objective is subject to numerous risks, many of which are outside of our control. Examples of
such risks include:
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the evolving regulatory requirements affecting ESG practices;
the availability of suppliers that can meet sustainability, diversity and other ESG standards that we may set; and
our ability to recruit, develop and retain diverse talent in our labor markets.
If we fail, or are perceived to be failing, to meet the standards included in any sustainability disclosure (including our
Commitment to Zero pledge included in our annual EpicPromise Progress Report) or the expectations of our various
stakeholders, it could negatively impact our reputation, customer attraction and retention, access to capital, and employee
retention. In addition, new sustainability rules and regulations have been adopted and may continue to be introduced. Our
failure to comply with any applicable rules or regulations could lead to penalties and adversely impact our reputation, customer
attraction and retention, access to capital, and employee retention.
Our acquisitions might not be successful.
In recent years, we have completed numerous acquisitions and may continue to acquire certain mountain resorts, hotel
properties and other businesses complementary to our own, as well as developable land in proximity to our Resorts.
Acquisitions are complex to evaluate, execute and integrate. We cannot ensure that we will be able to accurately evaluate or
successfully integrate and manage acquired mountain resorts, properties and businesses and increase our profits from these
operations. We continually evaluate potential acquisitions both domestically and internationally and intend to actively pursue
acquisition opportunities, some of which could be significant. As a result, we face various risks from acquisitions, including our
recent acquisitions of the Seven Springs Resorts and Andermatt-Sedrun, some of which include:
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our evaluation of the synergies and/or long-term benefits of an acquired business;
our inability to integrate acquired businesses into our operations as planned;
diversion of our management’s attention;
increased expenditures (including legal, accounting and due diligence expenses, higher administrative costs to support
the acquired entities, information technology, personnel and other integration expenses);
potential increased debt leverage;
potential issuance of dilutive equity securities;
litigation arising from acquisition activity;
potential impairment of goodwill, intangible or tangible assets;
additional risks with respect to current and potential international operations, including by unique laws, regulations and
business practices of foreign jurisdictions; and
unanticipated problems or liabilities.
In addition, we run the risk that any new acquisitions may fail to perform in accordance with expectations, and that estimates of
the costs of improvements and integration for such properties may prove inaccurate.
We are subject to additional risks with respect to our current and potential international operations and properties.
As a result of our acquisitions of Whistler Blackcomb in Canada, Perisher, Hotham and Falls Creek in Australia, and
Andermatt-Sedrun in Switzerland, and potential future international acquisitions, we have and may continue to increase our
operations outside of the United States. We are accordingly subject to a number of risks relating to doing business
internationally. We also intend to consider strategic growth opportunities for our portfolio globally through acquisitions in
attractive international markets to service demonstrable demand where we believe the anticipated risk-adjusted returns are
consistent with our investment objectives. Our international operations and properties and in particular our newly acquired
European properties (following the Andermatt-Sedrun acquisition), could be affected by factors peculiar to the laws, regulations
and business practices of those jurisdictions. These laws, regulations and business practices expose us to risks that are different
than or in addition to those commonly found in the United States. Risks relating to our international operations and properties
include:
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enactment of laws relating to international ownership and laws restricting the ability to remove profits earned from
activities within a particular country to a person’s or company’s country of origin;
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changes in laws or policies governing foreign trade or investment and use of foreign operations or workers, and any
negative sentiments towards multinational companies as a result of any such changes to laws, regulations or policies or
due to trends such as political populism and economic nationalism;
variations in currency exchange rates and the imposition of currency controls;
adverse market conditions caused by terrorism, civil unrest, natural disasters, infectious disease and changes in
international, national or local governmental or economic conditions;
business disruptions arising from public health crises and outbreaks of communicable diseases, including the recent
coronavirus outbreak;
the willingness of U.S. or international lenders to make loans in certain countries and changes in the availability, cost
and terms of secured and unsecured debt resulting from varying governmental economic policies;
the imposition of unique tax structures and changes in tax rates and other operating expenses in particular countries,
including the potential imposition of adverse or confiscatory taxes;
the potential imposition of restrictions on currency conversions or the transfer of funds;
general political and economic instability;
compliance with international laws and regulations (including anti-corruption regulations, such as the U.S. Foreign
Corrupt Practices Act);
data security, including requirements that local customer data be stored locally and not transferred to other
jurisdictions; and
our limited experience and expertise in foreign countries, particularly European countries, relative to our experience
and expertise in the United States;
If any of the foregoing risks were to materialize, they could materially and adversely affect us.
Exchange rate fluctuations could result in significant foreign currency gains and losses and affect our business results.
We are exposed to currency translation risk because the local currency utilized in the operations of Whistler Blackcomb,
Perisher, Hotham, Falls Creek and Andermatt-Sedrun are different than our functional currency, the U.S. dollar. As a result,
changes in foreign exchange rates, in particular between the Canadian dollar, Australian dollar, Swiss franc and the U.S. dollar,
affect the amounts we record for our foreign assets, liabilities, revenues and expenses, and could have a negative effect on our
financial results. We currently do not enter into hedging arrangements to minimize the impact of foreign currency fluctuations.
We expect that our exposure to foreign currency exchange rate fluctuations will increase as our international operations grow
and if we acquire additional international resorts.
We are subject to tax laws and regulations in multiple jurisdictions, and changes to those laws and regulations or
interpretations thereof or adverse determinations by tax authorities may adversely affect us.
We are subject to income and other taxes in the United States and in multiple foreign jurisdictions. Due to economic and
political conditions, tax rates in various jurisdictions may be subject to significant change. Our effective tax rates could be
affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred
tax assets and liabilities, or changes in tax laws or their interpretation.
We are also subject to the examination of tax returns and other tax matters by the Internal Revenue Service (“IRS”) and other
tax authorities and governmental bodies. We regularly assess the likelihood of an adverse outcome resulting from these
examinations to determine the adequacy of our provision for taxes. There can be no assurance as to the outcome of these
examinations. If our effective tax rates were to increase or if the ultimate determination of our taxes owed is for an amount in
excess of amounts previously accrued, our financial condition, operating results and cash flows could be adversely affected.
Risks Relating to Ownership of our Common Stock
We cannot provide assurance that we will pay dividends, or if paid, that dividend payments will be consistent with
historical levels.
We have generally paid quarterly dividends since fiscal 2011 (with the exception of several quarters in Fiscal 2020 and Fiscal
2021 to maintain short-term liquidity in response to the COVID-19 pandemic), which are funded through cash flow from
operations, available cash on hand and borrowings under our Credit Facilities. The declaration of dividends is subject to the
discretion of our Board of Directors, and is limited by applicable state law concepts of available funds for distribution, as well
as contractual restrictions. As a result, the amount, if any, of the dividends to be paid in the future will depend upon a number of
factors, including our available cash on hand, anticipated cash needs, overall financial condition, restrictions contained in our
Eighth Amended and Restated Credit Agreement (the “Vail Holdings Credit Agreement”), any future contractual restrictions,
future prospects for earnings and cash flows, as well as other factors considered relevant by our Board of Directors. In addition,
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our Board of Directors may also suspend the payment of dividends at any time if it deems such action to be in the best interests
of the Company and its stockholders. If we do not pay dividends, the price of our common stock must appreciate for investors
to realize a gain on their investment in Vail Resorts, Inc. This appreciation may not occur and our stock may in fact depreciate
in value. On September 27, 2023, our Board of Directors approved a cash dividend of $2.06 per share payable on October 26,
2023 to stockholders of record as of October 10, 2023.
Our indebtedness could adversely affect our financial condition and our ability to operate our business, to react to
changes in the economy or our industry, to fulfill our obligations under our various notes, to pay our other debts, and
could divert our cash flow from operations for debt payments.
We have a substantial amount of debt, which requires significant interest and principal payments. As of July 31, 2023, we had
$2.8 billion in total indebtedness outstanding. This amount includes (i) $575.0 million in aggregate principal amount of 0.0%
convertible notes due 2026 (the “0.0% Convertible Notes”), (ii) $600.0 million aggregate principal amount of our unsecured
senior notes due 2025 (the “6.25% Notes”), (iii) $1.0 billion of indebtedness pursuant to the term loan facility under the Vail
Holdings Credit Agreement that matures in 2026, (iv) $363.4 million with respect to our obligation associated with the Canyons
long-term lease, (v) $29.5 million with respect to our obligations associated with the Whistler Blackcomb employee housing
leases, (vi) $114.2 million with respect to the EPR Secured Notes under the master credit and security agreements and other
related agreements with EPT Ski Properties, Inc. and its affiliates (“EPR”), as amended (collectively, the “EPR Agreements”),
and (vii) $40.4 million with respect to the New Regional Policy loan between Andermatt-Sedrun and the Canton of Uri and
Canton of Graubünden (the “NRP Loan”). We also have a credit agreement at Whistler Blackcomb that matures in 2028 (the
“Whistler Credit Agreement”), which had no amounts outstanding as of July 31, 2023. Collectively, the Vail Holdings Credit
Agreement, the Whistler Credit Agreement, the EPR Agreements and the NRP Loan are referred to herein as the “Credit
Agreements,” and such facilities, the “Credit Facilities.” Our borrowings under the Vail Holdings Credit Agreement are subject
to interest rate changes substantially increasing our risk to changes in interest rates. Following the Fifth Amendment to the Vail
Holdings Credit Agreement, dated as of August 31, 2022 (the “Fifth Amendment”), borrowings under the Vail Holdings Credit
Agreement, including the term loan facility, bear interest annually at a rate of SOFR plus 1.60%. As of July 31, 2023 we also
have, on a cumulative basis, minimum lease payment obligations under operating leases of approximately $267.3 million over
the term of the leases. Our level of indebtedness and minimum lease payment obligations could have important consequences.
For example, it could:
• make it more difficult for us to satisfy our obligations under our outstanding debt;
increase our vulnerability to general adverse economic and industry conditions;
•
require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness,
•
including the annual payments under the Canyons lease, thereby reducing the availability of our cash flow to fund
dividend payments, working capital, capital expenditures, real estate developments, marketing efforts and other
general corporate purposes;
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
place us at a competitive disadvantage compared to our competitors that have less debt;
limit our ability to borrow additional funds, refinance debt, or obtain additional financing for working capital, capital
expenditures, debt service requirements, acquisitions or other general corporate purposes;
•
•
•
• make it difficult for us to satisfy our obligations, including debt service requirements under our outstanding debt; and
•
cause potential or existing customers to not contract with us due to concerns over our ability to meet our financial
obligations, such as insuring against our professional liability risks, under such contracts.
Furthermore, our debt under our Credit Facilities bears interest at variable rates, which may be impacted by potential future
changes in interest rates due to reference rate reform. We may be able to incur additional indebtedness in the future. The terms
of our Credit Facilities, the 0.0% Convertible Notes and the 6.25% Notes do not fully prohibit us from doing so. If we incur
additional debt, the related risks that we face could intensify.
Additionally, our Credit Facilities also impose significant operating and financial restrictions on us. These restrictions limit our
ability and the ability of our subsidiaries to, among other things:
incur or guarantee additional debt or issue capital stock;
pay dividends and make other distributions on, or redeem or repurchase, capital stock;
•
•
• make certain investments;
•
•
• merge or consolidate;
incur certain liens;
enter into transactions with affiliates;
32
•
•
•
enter into agreements that restrict the ability of subsidiaries to make dividends, distributions or other payments to us or
the guarantors;
designate restricted subsidiaries as unrestricted subsidiaries; and
transfer or sell assets.
The indenture governing the 6.25% Notes contains a number of significant restrictions and covenants that limit our ability to:
•
•
•
grant or permit liens;
engage in sale/leaseback transactions; and
engage in a consolidation or merger, or sell, transfer or otherwise dispose of all or substantially all of our assets.
In addition, the Whistler Credit Agreement contains restrictions on the ability of Whistler Mountain Resort Limited Partnership
and Blackcomb Skiing Enterprises Limited Partnership (together “The WB Partnerships”) and their respective subsidiaries, and
the EPR Agreements contain restrictions on the ability of Peak Resorts and its subsidiaries, to make dividends, distributions or
other payments to us or the guarantors. We and our subsidiaries are subject to other covenants, representations and warranties in
respect of our Credit Facilities, including financial covenants as defined in the Credit Agreements. Events beyond our control
may affect our ability to comply with these covenants.
The terms of any future indebtedness we may incur could include more restrictive covenants. We may not be able to maintain
compliance with our financial covenants in the future and, if we fail to do so, we may not be able to obtain waivers from the
lenders and/or amend the covenants.
There can be no assurance that we will meet the financial covenants contained in our Credit Facilities, when in effect. If we
breach any of these restrictions or covenants, or suffer a material adverse change which restricts our borrowing ability under our
Credit Facilities, we would not be able to borrow funds thereunder without a waiver. Any inability to borrow could have an
adverse effect on our business, financial condition and results of operations. In addition, a breach, if uncured, could cause a
default under the applicable agreement(s) governing our indebtedness, in which case such we may be required to repay these
borrowings before their due date. We may not have or be able to obtain sufficient funds to make these accelerated payments. If
we are forced to refinance these borrowings on less favorable terms or cannot refinance these borrowings, our results of
operations and financial condition could be adversely affected.
We may not continue to repurchase our common stock pursuant to our share repurchase program, and any such
repurchases may not enhance long-term stockholder value. Share repurchases could also increase the volatility of the
price of our common stock and could diminish our cash reserves.
On March 9, 2006, the Company’s Board of Directors approved a share repurchase program, authorizing the Company to
repurchase up to 3,000,000 Vail Shares. On July 16, 2008, December 4, 2015 and March 7, 2023, the Company’s Board of
Directors increased the authorization by an additional 3,000,000, 1,500,000 and 2,500,000 Vail Shares, respectively, for a total
authorization to repurchase up to 10,000,000 Vail Shares. Since inception of this stock repurchase program through July 31,
2023, the Company has repurchased 8,648,302 shares at a cost of approximately $979.4 million, excluding accrued excise tax.
As of July 31, 2023, 1,351,698 Vail Shares remained available to repurchase under the existing share repurchase program,
which has no expiration date.
Although our Board of Directors has approved a share repurchase program, the share repurchase program does not obligate us
to repurchase any specific dollar amount or to acquire any specific number of shares. The timing and amount of repurchases, if
any, will depend upon several factors, including market and business conditions, our liquidity and capital resources, the trading
price of our common stock and the nature of other investment opportunities. The repurchase program may be limited,
suspended or discontinued at any time without prior notice. In addition, repurchases of our common stock pursuant to our share
repurchase program could cause our stock price to be higher than it would be in the absence of such a program and could
potentially reduce the market liquidity for our stock. Additionally, our share repurchase program could reduce our available
liquidity, which may impact our ability to finance future growth and to pursue possible future strategic opportunities and
acquisitions. Further, the Internal Revenue Service recently implemented a nondeductible excise tax equal to 1% of the fair
market value of certain corporate share repurchases. There can be no assurance that any share repurchases will enhance
stockholder value because the market price of our common stock may decline below levels at which we repurchased shares of
stock. Although our share repurchase program is intended to enhance long-term stockholder value, there is no assurance that it
will do so and short-term stock price fluctuations could reduce the program’s effectiveness.
33
General Risk Factors
We are subject to litigation in the ordinary course of business.
We are, from time to time, subject to various asserted or unasserted legal proceedings and claims. Any such proceedings or
claims, regardless of merit, could be time consuming and expensive to defend and could divert management’s attention and
resources. While we believe we have adequate insurance coverage and/or accrue for loss contingencies for all known matters
that are probable and can be reasonably estimated, we cannot provide any assurance that the outcome of all current or future
litigation proceedings and claims will not have a material adverse effect on us and our results of operations.
We are subject to complex and evolving accounting regulations and use certain estimates and judgments that may differ
significantly from actual results.
Implementation of existing and future legislation, rulings, standards and interpretations from the Financial Accounting
Standards Board or other regulatory bodies could affect the presentation of our financial statements and related disclosures.
Future regulatory requirements could significantly change our current accounting practices and disclosures. Such changes in the
presentation of our financial statements and related disclosures could change an investor’s interpretation or perception of our
financial position and results of operations.
We use many methods, estimates and judgments in applying our accounting policies (see “Critical Accounting Policies” in Item
7 of this Form 10-K). Such methods, estimates and judgments are, by their nature, subject to substantial risks, uncertainties and
assumptions, and factors may arise over time that lead us to change our methods, estimates and judgments. Changes in those
methods, estimates and judgments could significantly affect our results of operations.
Anti-takeover provisions affecting us could prevent or delay a change of control that is beneficial to our stockholders.
Provisions of our certificate of incorporation and bylaws, provisions of our debt instruments and other agreements and
provisions of applicable Delaware law and applicable federal and state regulations may discourage, delay or prevent a merger or
other change of control that holders of our securities may consider favorable. These provisions could:
•
•
•
•
delay, defer or prevent a change in control of our Company;
discourage bids for our securities at a premium over the market price;
adversely affect the market price of, and the voting and other rights of the holders of our securities; or
impede the ability of the holders of our securities to change our management.
For instance, provisions of the indentures governing our indebtedness stipulate that the Company must repurchase the senior
notes at the option of their holders upon the event of a change in control of the Company. Further, a change of control would
constitute an event of default under our credit agreements.
ITEM 1B.
UNRESOLVED STAFF COMMENTS.
None.
ITEM 2.
PROPERTIES.
The following table sets forth the principal properties that we own or lease for use in our operations:
Location
Afton Alps, MN
Alpine Valley Resort, OH
Andermatt Ski Resort, Switzerland
Andermatt Ski Resort, Switzerland
Andermatt Ski Resort, Switzerland
Ownership
Owned
Owned
Owned
Leased
Easement
34
Use
Ski resort operations, including ski lifts, ski trails,
clubhouse, buildings, commercial space and other
improvements
Ski resort operations, including ski lifts, ski trails, golf
course, clubhouse, buildings, commercial space and other
improvements
Ski resort operations, including ski lifts, ski trails,
buildings, commercial space and other improvements, and
dining facilities
Ski resort operations, including buildings, commercial
space, parking and other improvements, dining facilities
and employee housing
Ski resort operations, including third party land use rights,
and dining facilities
Location
Andermatt Ski Resort, Switzerland
Arrowhead Mountain, CO
Attitash Mountain, NH
Attitash Mountain, NH (279 acres)
BC Housing RiverEdge, CO
Bachelor Gulch Village, CO
Beaver Creek Resort, CO
Beaver Creek Mountain, CO (3,801 acres)
Beaver Creek Mountain Resort, CO
Big Boulder Mountain, PA
Boston Mills, OH
Brandywine, OH
Breckenridge Ski Resort, CO
Ownership
Concession
contract
Owned
Use
Ski resort operations, including third party land use rights
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, property management
and commercial space
Owned
SUP
Ski resort operations, including ski lifts, ski trails,
buildings, commercial space and other improvements
Ski trails, ski lifts, buildings and other improvements
26% Owned
Employee housing facilities
Owned
Owned
SUP
Owned
Owned
Owned
Owned
Owned
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, property management
and commercial space
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, property management,
commercial space and real estate held for sale or
development
Ski trails, ski lifts, buildings and other improvements
Golf course, clubhouse, commercial space and residential
condominium units
Ski trails, ski lifts, buildings and other improvements
Ski trails, ski lifts, buildings and other improvements
Ski trails, ski lifts, buildings and other improvements
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, property management,
commercial space and real estate held for sale or
development
Breckenridge Mountain, CO (5,702 acres)
Breckenridge Terrace, CO
Broomfield, CO
Colter Bay Village, WY
Crested Butte Mountain Resort, CO
Crested Butte Mountain Resort, CO (4,350 acres)
Crotched Mountain, NH
Eagle-Vail, CO
Edwards, CO
SUP
Ski trails, ski lifts, buildings and other improvements
50% Owned
Employee housing facilities
Leased
Corporate offices
Concession
contract
Lodging and dining facilities
Owned
SUP
Owned
Owned
Leased
Buildings, other improvements and land used for
operation of Crested Butte Mountain Resort
Ski trails, ski lifts, buildings and other improvements
Ski trails, ski lifts, buildings and other improvements
Warehouse facility
Administrative offices
Falls Creek Alpine Resort, Victoria, Australia (1,112 acres)
Leased
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements
Headwaters Lodge & Cabins at Flagg Ranch, WY
Concession
contract
Lodging and dining facilities
Heavenly Mountain Resort, CA & NV
Heavenly Mountain, CA & NV (7,050 acres)
Hidden Valley Resort, MO
Hidden Valley Resort, PA
Hotham Alpine Resort, Victoria, Australia (791 acres)
Hunter Mountain, NY
Jack Frost Ski Resort, PA
Jackson Hole Golf & Tennis Club, WY
Jackson Lake Lodge, WY
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements and commercial space
Ski trails, ski lifts, buildings and other improvements
Ski trails, ski lifts, buildings and other improvements
Ski trails, ski lifts, buildings and other improvements
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements
Ski resort operations, including ski lifts, ski trails, golf
course, clubhouse, buildings, commercial space and other
improvements.
Ski trails, ski lifts, buildings and other improvements
Golf course, clubhouse, tennis and dining facilities
Lodging, dining and conference facilities
Owned
SUP
Owned
Owned
Leased
Owned
Owned
Owned
Concession
contract
35
Location
Jenny Lake Lodge, WY
Keystone Conference Center, CO
Keystone Lodge, CO
Keystone Resort, CO
Keystone Mountain, CO (8,376 acres)
Keystone Ranch, CO
Kirkwood Mountain Resort, CA
Kirkwood Mountain, CA (2,330 acres)
Laurel Mountain, PA
Liberty Mountain Resort, PA
Mad River Mountain, OH
Mount Snow, VT
Ownership
Concession
contract
Use
Lodging and dining facilities
Owned
Owned
Owned
SUP
Owned
Owned
SUP
Leased
Owned
Leased
Owned
Conference facility
Lodging, spa, dining and conference facilities
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, commercial space,
property management, dining and real estate held for sale
or development
Ski trails, ski lifts, buildings and other improvements
Golf course, clubhouse and dining facilities
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, property management
and commercial space
Ski trails, ski lifts, buildings and other improvements
Ski trails, ski lifts, buildings and other improvements
Ski resort operations, including ski lifts, ski trails, golf
course, clubhouse, buildings and other improvements
Ski trails, ski lifts, buildings and other improvements
Ski resort operations, including ski lifts, ski trails, golf
course, clubhouse, buildings, commercial space and other
improvements.
Mount Snow, VT (894 acres)
SUP
Ski trails, ski lifts, buildings and other improvements
Mount Sunapee Resort, NH (850 acres)
Owned/Leased
Mt. Brighton, MI
Mt. Mansfield, VT (1,400 acres)
Northstar California Resort, CA (7,200 acres)
Northstar Village, CA
Okemo Mountain Resort, VT
Okemo Mountain, VT (1,223 acres)
Owned
Leased
Leased
Leased
Owned
Leased
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements and commercial space
Ski resort operations, including ski lifts, ski trails,
buildings, commercial space and other improvements
Ski trails, ski lifts, buildings and other improvements used
for operation of Stowe Mountain Resort
Ski trails, ski lifts, golf course, commercial space, dining
facilities, buildings and other improvements
Commercial space, ski resort operations, dining facilities,
buildings, property management and other improvements
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, property management
and commercial space
Ski resort operations, including ski lifts, ski trails, dining
facilities, buildings and other improvements
Paoli Peaks, IN
Owned/Leased
Ski trails, ski lifts, buildings and other improvements
Park City Mountain, UT (8,900 acres)
Leased
Park City Mountain, UT (220 acres)
Owned
Ski resort operations including ski lifts, ski trails,
buildings, commercial space, dining facilities, property
management, conference facilities and other
improvements (including areas previously referred to as
Canyons Resort, UT)
Ski trails, ski lifts, dining facilities, commercial space,
buildings, real estate held for sale or development and
other improvements
Perisher Ski Resort, NSW, Australia (3,335 acres)
Owned/Leased/
Licensed
Ski trails, ski lifts, dining facilities, commercial space,
railway, buildings, lodging, conference facilities and other
improvements
Red Cliffs Lodge, CA
Red Sky Ranch, CO
River Course at Keystone, CO
Roundtop Mountain Resort, PA
Seven Springs Resort, PA
Leased
Owned
Owned
Owned
Owned
36
Dining facilities, ski resort operations, commercial space,
administrative offices
Golf courses, clubhouses, dining facilities and real estate
held for sale or development
Golf course and clubhouse
Ski resort operations, including ski lifts, ski trails,
buildings, commercial space and other improvements
Ski trails, ski lifts, dining facilities, commercial space,
lodging, property management, conference facilities and
other improvements
Location
Snow Creek, MO
Ownership
Owned
Use
Ski trails, ski lifts, buildings and other improvements
SSI Venture, LLC (“VRR”) Properties; CO, CA, NV, UT,
MN & BC, Canada
Owned/Leased
Ski Tip Lodge, CO
Stevens Pass, WA
Stevens Pass Mountain, WA (2,443 acres)
Stevens Pass Ski Resort, WA
Stowe Mountain Resort, VT
The Arrabelle at Vail Square, CO
The Lodge at Vail, CO
The Osprey at Beaver Creek, CO
The Tarnes at Beaver Creek, CO
Tenderfoot Housing, CO
Approximately 270 rental and retail stores (of which
approximately 105 stores are currently held under lease)
for recreational products and 7 leased warehouses
Lodging and dining facilities
Employee housing and guest parking facilities
Ski trails, ski lifts, buildings and other improvements
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements and commercial space
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements and commercial space
Lodging, spa, dining and conference facilities
Lodging, spa, dining and conference facilities
Lodging, dining and conference facilities
Owned
Owned
SUP
Owned
Owned
Owned
Owned
Owned
31% Owned
Employee housing facilities
50% Owned
Employee housing facilities
The Pines Lodge at Beaver Creek, CO
Vail Mountain, CO
Owned
Owned
Lodging, dining and conference facilities
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, property management,
commercial space and real estate held for sale or
development
Vail Mountain, CO (12,226 acres)
SUP
Ski trails, ski lifts, buildings and other improvements
Whistler Blackcomb Resort, BC, Canada
75% Owned
Whistler Mountain and Blackcomb Mountain, BC, Canada MDA
Whistler Blackcomb Resort, BC, Canada
Whitetail Resort, PA
Wildcat Mountain, NH (953 acres)
Wilmot Mountain, WI
Leased
Owned
SUP
Owned
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements, property management,
commercial space and real estate held for sale or
development
Ski resort operations, including ski lifts, ski trails,
buildings and other improvements
Employee housing facilities
Ski resort operations, including ski lifts, ski trails, golf
course, buildings, commercial space and other
improvements
Ski trails, ski lifts, buildings and other improvements
Ski trails, ski lifts, buildings and other improvements
Many of our properties are used across all segments in complementary and interdependent ways.
ITEM 3.
LEGAL PROCEEDINGS.
We are a party to various lawsuits arising in the ordinary course of business. We believe that we have adequate insurance
coverage and/or have accrued for all estimable and probable loss contingencies for asserted and unasserted matters and that,
although the ultimate outcome of such claims cannot be ascertained, current pending and threatened claims are not expected,
individually or in the aggregate, to have a material adverse impact on our financial position, results of operations and cash
flows.
ITEM 4.
MINE SAFETY DISCLOSURES.
Not applicable.
37
PART II
ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES.
Market and Stockholders
Our common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “MTN.” As of September 25,
2023, 38,149,524 shares of common stock were outstanding, held by approximately 245 holders of record.
Dividend Policy
In fiscal 2011, our Board of Directors approved the commencement of a regular quarterly cash dividend on our common stock,
subject to quarterly declaration, which has typically been increased on an annual basis. The amount, if any, of dividends to be
paid in the future will depend on our available cash on hand, anticipated cash needs, overall financial condition, restrictions
contained in our Eighth Amended and Restated Credit Agreement (the “Vail Holdings Credit Agreement”), future prospects for
earnings and cash flows, as well as other factors considered relevant by our Board of Directors. On September 27, 2023, our
Board of Directors approved a cash dividend of $2.06 per share payable on October 26, 2023 to stockholders of record as of
October 10, 2023. We expect to fund the dividend with available cash on hand.
Repurchase of Equity Securities
The following table sets forth our purchases of shares of our common stock during the fourth quarter of Fiscal 2023:
Total Number of
Shares Purchased
Average Price
Paid per Share
(1)
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
(2)
Maximum
Number of Shares
that May Yet Be
Purchased Under
the Plans or
Programs
(2)
— $
404,864 $
— $
404,864 $
—
247.00
—
247.00
—
404,864
—
404,864
1,756,562
1,351,698
1,351,698
1,351,698
Period
May 1, 2023 - May 31, 2023
June 1, 2023 - June 30, 2023
July 1, 2023 - July 31, 2023
Total
(1) Average price per share excludes any excise tax imposed on stock repurchases as part of the Inflation Reduction Act of
2022.
(2) The share repurchase program is conducted under authorizations made from time to time by our Board of Directors. The
Board of Directors initially authorized the repurchase of up to 3,000,000 Vail Shares (March 9, 2006), and later
authorized additional repurchases of up to 3,000,000 Vail Shares (July 16, 2008), 1,500,000 Vail Shares (December 4,
2015), and 2,500,000 Vail Shares (March 7, 2023), for a total authorization to repurchase up to 10,000,000 Vail Shares.
From inception of this stock repurchase program through July 31, 2023, the Company has repurchased 8,648,302 shares
at a cost of approximately $979.4 million, excluding excise tax. As of July 31, 2023, 1,351,698 shares remained available
to repurchase under the existing repurchase authorization. Repurchases under these authorizations may be made from
time to time at prevailing prices as permitted by applicable laws, including under plans complying with Rule 10b5-1
under the Securities Exchange Act of 1934, as amended, and subject to market conditions and other factors. The timing
as well as the number of Vail Shares that may be repurchased under the program will depend on several factors,
including our future financial performance, our available cash resources and competing uses for cash that may arise in
the future, the restrictions in our Vail Holdings Credit Agreement, prevailing prices of Vail Shares and the number of
Vail Shares that become available for sale at prices that we believe are attractive. These authorizations have no
expiration date.
Performance Graph
The total return graph below is presented for the period from the beginning of our fiscal year ended July 31, 2019 through the
end of our fiscal year ended July 31, 2023 (“Fiscal 2023”). The comparison assumes that $100 was invested at the beginning of
the period in our common stock (“MTN”), The Russell 2000 Stock Index, The Standard & Poor’s 500 Stock Index and the Dow
Jones U.S. Travel and Leisure Stock Index, with dividends reinvested where applicable. We include the Dow Jones U.S. Travel
and Leisure Index as we believe we compete in the travel and leisure industry.
38
The performance graph is not deemed filed with the Securities and Exchange Commission (“SEC”) and is not to be
incorporated by reference into any of our filings under the Securities Act of 1933 or the Exchange Act, unless such filings
specifically incorporate the performance graph by reference therein.
2018
2019
2020
2021
2022
2023
Vail Resorts, Inc.
Russell 2000
Standard & Poor’s 500
Dow Jones U.S. Travel and Leisure
$
$
$
$
100.00 $
100.00 $
100.00 $
100.00 $
91.65 $
95.55 $
107.98 $
116.04 $
73.31 $
91.14 $
120.87 $
88.25 $
116.51 $
138.48 $
164.90 $
129.66 $
92.40 $
118.64 $
157.22 $
105.59 $
94.94
127.97
177.64
138.95
As of July 31,
ITEM 6.
[Reserved]
ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be
read in conjunction with the Consolidated Financial Statements and notes related thereto included in this Form 10-K. To the
extent that the following MD&A contains statements which are not of a historical nature, such statements are forward-looking
statements which involve risks and uncertainties. These risks include, but are not limited to, those discussed in Item 1A. “Risk
Factors” in this Form 10-K. The following discussion and analysis should be read in conjunction with the Forward-Looking
Statements section and Item 1A. “Risk Factors,” each included in this Form 10-K.
The MD&A includes discussion of financial performance within each of our three segments. We have chosen to specifically
include segment Reported EBITDA (defined as segment net revenue less segment operating expense, plus segment equity
investment income or loss, and for the Real Estate segment, plus gain or loss on sale of real property) in the following
discussion because we consider this measurement to be a significant indication of our financial performance. We utilize
segment Reported EBITDA in evaluating our performance and in allocating resources to our segments. Net Debt (defined as
long-term debt, net plus long-term debt due within one year less cash and cash equivalents) is included in the following
discussion because we consider this measurement to be a significant indication of our available capital resources. We also
believe that Net Debt is an important measurement as it is an indicator of our ability to obtain additional capital resources for
our future cash needs. Resort Reported EBITDA (defined as the combination of segment Reported EBITDA of our Mountain
and Lodging segments), Total Reported EBITDA (which is Resort Reported EBITDA plus segment Reported EBITDA from
39
our Real Estate segment) and Net Debt are not measures of financial performance or liquidity defined under accounting
principles generally accepted in the United States (“GAAP”). Refer to the end of the Results of Operations section for a
reconciliation of net income attributable to Vail Resorts, Inc. to Total Reported EBITDA and Resort Reported EBITDA, and
long-term debt, net to Net Debt.
Items excluded from Resort Reported EBITDA, Total Reported EBITDA and Net Debt are significant components in
understanding and assessing financial performance or liquidity. Resort Reported EBITDA, Total Reported EBITDA and Net
Debt should not be considered in isolation or as an alternative to, or substitute for, net income, net change in cash and cash
equivalents or other financial statement data presented in the Consolidated Financial Statements as indicators of financial
performance or liquidity. Because Resort Reported EBITDA, Total Reported EBITDA and Net Debt are not measurements
determined in accordance with GAAP and are thus susceptible to varying calculations, Resort Reported EBITDA, Total
Reported EBITDA and Net Debt, as presented herein, may not be comparable to other similarly titled measures of other
companies. In addition, our segment Reported EBITDA (i.e. Mountain, Lodging and Real Estate), the measure of segment
profit or loss required to be disclosed in accordance with GAAP, may not be comparable to other similarly titled measures of
other companies.
Overview
Our operations are grouped into three integrated and interdependent segments: Mountain, Lodging and Real Estate. We refer to
“Resort” as the combination of the Mountain and Lodging segments. The Mountain, Lodging and Real Estate segments
represented approximately 88%, 12% and 0%, respectively, of our net revenue for Fiscal 2023.
Mountain Segment
In the Mountain segment, the Company operates the following 41 destination mountain resorts and regional ski areas
(collectively, “Resorts”):
*Denotes a destination mountain resort, which generally receives a meaningful portion of skier visits from long-distance
travelers, as opposed to our regional ski areas, which tend to generate skier visits predominantly from their respective local
markets.
40
Additionally, we operate ancillary services, primarily including ski school, dining and retail/rental operations, and for our
Australian ski areas, including lodging and transportation operations. Mountain segment revenue is seasonal, with the majority
of revenue earned from our North American and European ski operations occurring in our second and third fiscal quarters and
the majority of revenue earned from our Australian ski operations occurring in our first and fourth fiscal quarters. Our North
American and European Resorts typically experience their peak operating season for the Mountain segment from mid-
December through mid-April, and our Australian ski areas typically experience their peak operating season from June to early
October. Our largest source of Mountain segment revenue comes from the sale of lift tickets (including pass products), which
represented approximately 56%, 59% and 63% of Mountain segment net revenue for Fiscal 2023, the fiscal year ended July 31,
2022 (“Fiscal 2022”) and the fiscal year ended July 31, 2021 (“Fiscal 2021”), respectively.
Lift revenue is driven by volume and pricing. Pricing is impacted by absolute pricing, as well as both the demographic and
geographic mix of guests, which impacts the price points at which various products are purchased. The demographic mix of
guests that visit our North American Resorts is divided into two primary categories: (i) out-of-state and international
(“Destination”) guests and (ii) in-state and local (“Local”) guests. The geographic mix depends on levels of visitation to our
destination mountain resorts versus our regional ski areas. For the 2022/2023 North American ski season, Destination guests
comprised approximately 57% of our North American destination mountain resort skier visits (excluding complimentary
access), while Local guests comprised approximately 43% of our North American destination mountain resort skier visits
(excluding complimentary access), which compares to 58% and 42%, respectively, for the 2021/2022 North American ski
season and approximately 52% and 48%, respectively, for the 2020/2021 North American ski season. Skier visitation at our
regional ski areas is largely comprised of Local guests. Destination guests generally purchase our higher-priced lift tickets
(including pass products) and utilize more ancillary services such as ski school, dining and retail/rental, as well as lodging at or
around our mountain resorts. Additionally, Destination guest visitation is less likely to be impacted by changes in the weather
during the current season, but may be more impacted by adverse economic conditions, the global geopolitical climate, travel
disruptions or weather conditions in the immediately preceding ski season. Local guests tend to be more value-oriented and
weather-sensitive.
We offer a variety of pass products for all of our Resorts, marketed toward both Destination and Local guests. Our pass product
offerings range from providing access to one or a combination of our Resorts for a certain number of days to our Epic Pass,
which allows pass holders unlimited and unrestricted access to all of our Resorts. The Epic Day Pass is a customizable one to
seven day pass product purchased in advance of the season, for those skiers and riders who expect to ski a certain number of
days during the season, and which is available in three tiers of resort access offerings. Our pass products provide a compelling
value proposition to our guests, which in turn assists us in developing a loyal base of customers who commit to ski at our
Resorts generally in advance of the ski season and typically ski more days each season at our Resorts than those guests who do
not buy pass products. Additionally, we enter into strategic long-term pass alliance agreements with third-party mountain
resorts, which further increase the value proposition of our pass products. For the 2023/2024 ski season, our pass alliances
include Telluride Ski Resort in Colorado, Hakuba Valley and Rusutsu Resort in Japan, Resorts of the Canadian Rockies in
Canada, Les 3 Vallées in France, Disentis Ski Area and Verbier 4 Vallées in Switzerland, Skirama Dolomiti in Italy and Ski
Arlberg in Austria. Our pass program drives strong customer loyalty, mitigates exposure to more weather sensitive guests,
generates additional ancillary spending and provides cash flow in advance of winter season operations. In addition, our pass
program attracts new guests to our Resorts. All of our pass products, including the Epic Pass and Epic Day Pass, are
predominately sold prior to the start of the ski season. Pass product revenue, although primarily collected prior to the ski
season, is recognized on the Company’s Consolidated Statements of Operations throughout the ski season on a straight-line
basis using the skiable days of the season to date relative to the total estimated skiable days of the season.
Lift revenue consists of pass product lift revenue (“pass revenue”) and non-pass product lift revenue (“non-pass revenue”).
Approximately 61% of total lift revenue was derived from pass revenue for each of Fiscal 2023, Fiscal 2022, and Fiscal 2021
(including the impact of the deferral of pass product revenue from Fiscal 2020 to Fiscal 2021 as a result of credits offered to
2019/2020 North American pass product holders who purchased 2020/2021 pass products).
The cost structure of our mountain resort operations has a significant fixed component with variable expenses including, but not
limited to, land use permit or lease fees, credit card fees, retail/rental cost of sales and labor, ski school labor and expenses
associated with dining operations; as such, profit margins can fluctuate greatly based on the level of revenues.
41
Lodging Segment
Operations within the Lodging segment include: (i) ownership/management of a group of luxury hotels through the
RockResorts brand proximate to our Colorado and Utah mountain resorts; (ii) ownership/management of non-RockResorts
branded hotels and condominiums proximate to our North American Resorts; (iii) National Park Service (“NPS”) concessioner
properties, including the Grand Teton Lodge Company (“GTLC”); (iv) a Colorado resort ground transportation company; and
(v) mountain resort golf courses.
The performance of our lodging properties (including managed condominium units) proximate to our Resorts, and our Colorado
resort ground transportation company, are closely aligned with the performance of the Mountain segment and generally
experience similar seasonal trends, particularly with respect to visitation by Destination guests. Revenues from such properties
represented approximately 71%, 73% and 67% of Lodging segment net revenue (excluding Lodging segment revenue
associated with the reimbursement of payroll costs) for Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. Management
primarily focuses on Lodging net revenue excluding payroll cost reimbursements and Lodging operating expense excluding
reimbursed payroll costs (which are not measures of financial performance under GAAP) as the reimbursements are made
based upon the costs incurred with no added margin and as such, the revenue and corresponding expense do not affect our
Lodging Reported EBITDA, which we use to evaluate Lodging segment performance. Revenue of the Lodging segment during
our first and fourth fiscal quarters is generated primarily by the operations of our NPS concessioner properties (as their peak
operating season generally occurs from mid-May through the end of September); mountain resort golf operations and
seasonally lower volume from our other owned and managed properties and businesses.
Real Estate Segment
The principal activities of our Real Estate segment include the sale of land parcels to third-party developers and planning for
future real estate development projects, including zoning and acquisition of applicable permits. We continue undertaking
preliminary planning and design work on future projects and are pursuing opportunities with third-party developers rather than
undertaking our own significant vertical development projects. Additionally, real estate development projects by third-party
developers most often result in the creation of certain resort assets that provide additional benefit to the Mountain segment. We
believe that, due to our low carrying cost of real estate land investments, we are well situated to promote future projects by
third-party developers while limiting our financial risk. Our revenue from the Real Estate segment and associated expense can
fluctuate significantly based upon the timing of closings and the type of real estate being sold, causing volatility in the Real
Estate segment’s operating results from period to period.
Recent Trends, Risks and Uncertainties
We have identified the following important factors (as well as risks and uncertainties associated with such factors) that could
impact our future financial performance or condition:
•
•
The economies in the countries in which we operate and from which we attract our guests may be impacted by economic
challenges associated with rising inflation, increasing interest rates, financial institution disruptions and/or fluctuating
commodity prices that could adversely impact our business, including decreased guest spending or visitation or increased
costs of operations. Skiing, travel and tourism are discretionary recreational activities that can entail a relatively high cost
of participation. As a result, economic downturns and other negative impacts to consumer discretionary spending may
have a pronounced impact on visitation to our Resorts. We cannot predict the extent to which we may be impacted by
such potential economic challenges, whether in North America or globally.
The timing and amount of snowfall can have an impact on Mountain and Lodging revenue, particularly with regard to
skier visits and the duration and frequency of guest visitation. To help mitigate the impact of weather variability, we sell
a variety of pass products prior to the beginning of the ski season, which results in a more stabilized stream of lift
revenue. Additionally, our pass products provide a compelling value proposition to our guests, which in turn creates a
guest commitment predominately prior to the start of the ski season. In March 2023, we began selling pass products for
the 2023/2024 North American and European ski seasons. Pass product sales through September 22, 2023 for the
upcoming 2023/2024 North American ski season increased approximately 7% in units and approximately 11% in sales
dollars as compared to the prior year through September 23, 2022. Pass product sales are adjusted to eliminate the impact
of foreign currency by applying an exchange rate of $0.74 between the Canadian dollar and U.S. dollar in both periods
for Whistler Blackcomb pass product sales. We cannot predict if this favorable trend will continue through the remainder
of the 2023 North American pass product sales campaign or the overall impact that pass product sales will have on lift
revenue for the 2023/2024 North American and European ski seasons.
42
•
•
•
•
Our overall results throughout the 2022/2023 North American ski season highlight the stability of the advance
commitment from season pass products in a season with challenging conditions, including travel disruptions during the
peak holiday period, abnormal weather conditions which significantly reduced operating days, terrain availability, and
activity offerings across our 26 Midwest, Mid-Atlantic and Northeast resorts (collectively, “Eastern” U.S. resorts), and
severe weather disruptions at our Tahoe resorts. Our ancillary businesses, including ski school, dining, and retail/rental,
experienced strong growth compared to the prior year period, when those businesses were impacted by capacity
constraints driven by staffing, and in the case of dining, by operational restrictions associated with COVID-19. Our
dining business rebounded strongly from the prior year, though underperformed expectations for the year as guest dining
behavior did not fully return to pre-COVID levels following two years of significant operational restrictions associated
with COVID-19. The return to normal staffing levels enabled our mountain resorts to deliver a strong guest experience
resulting in a significant improvement in guest satisfaction scores, which exceeded pre-COVID-19 levels at our
destination mountain resorts.
Given that we operate in the travel and leisure industry, we are subject to risks related to public health emergencies,
including the potential outbreak and spread of contagious disease. Public health emergencies may lead to adverse
economic impacts in global and local economies, including the economies in which we operate, which may in turn
impact consumer demand, the willingness or ability of guests to travel, guest visitation, staffing levels or financial
results. We cannot predict the ultimate impact that any potential public health emergency may have on our guest
visitation, guest spending, staffing capabilities, other related trends or overall results of operations.
As of July 31, 2023, we had $563.0 million of cash and cash equivalents as well as $421.0 million available under the
revolver component of the Vail Holdings Credit Agreement, which represents the total commitment of $500.0 million
less certain letters of credit outstanding of $79.0 million. Additionally, we have a credit facility which supports the
liquidity needs of Whistler Blackcomb (the “Whistler Credit Agreement”). As of July 31, 2023, we had C$296.6 million
($224.9 million) available under the revolver component of the Whistler Credit Agreement which represents the total
commitment of C$300.0 million ($227.5 million) less letters of credit outstanding of C$3.4 million ($2.6 million). We
believe that our existing cash and cash equivalents, availability under our credit agreements and the expected positive
cash flow from operating activities of our Mountain and Lodging segments less resort capital expenditures will continue
to provide us with sufficient liquidity to fund our operations.
On August 3, 2022, through a wholly-owned subsidiary, we acquired a 55% controlling interest in Andermatt-Sedrun
Sport AG (“Andermatt-Sedrun”) from Andermatt Swiss Alps AG (“ASA”). Andermatt-Sedrun controls and operates all
of Andermatt-Sedrun's mountain and ski-related assets, including lifts, most of the restaurants and a ski school operation
at the ski area. The total consideration we paid was comprised of a $114.4 million (CHF 110.0 million) investment into
Andermatt-Sedrun for use in capital investments to enhance the guest experience on the mountain and $41.3 million
(CHF 39.3 million) paid to ASA. As of August 3, 2022 the total fair value of the consideration paid was $155.4 million
(CHF 149.3 million). The proceeds paid to ASA will be fully reinvested into real estate developments in the base area.
ASA retains a 40% ownership stake in Andermatt-Sedrun, with a group of existing shareholders comprising the
remaining 5% ownership. We cannot predict the ultimate impact the acquisition of Andermatt-Sedrun will have on our
future results from operations.
Results of Operations
Summary
Shown below is a summary of operating results for Fiscal 2023, Fiscal 2022 and Fiscal 2021 (in thousands):
Net income attributable to Vail Resorts, Inc.
Income before provision for income taxes
Mountain Reported EBITDA
Lodging Reported EBITDA
Resort Reported EBITDA
Real Estate Reported EBITDA
Year ended July 31,
2023
2022
2021
268,148 $
373,517 $
822,570 $
12,267
834,837 $
(1,728) $
347,923 $
457,161 $
811,167 $
25,747
836,914 $
(3,927) $
127,850
125,183
552,753
(8,097)
544,656
(4,582)
$
$
$
$
$
43
A discussion of segment results, including reconciliations of net income attributable to Vail Resorts, Inc. to Total Reported
EBITDA, and other items can be found below. The consolidated results of operations, including any consolidated financial
metrics pertaining thereto, include the operations of Andermatt-Sedrun (acquired August 3, 2022) and Seven Springs Mountain
Resort, Hidden Valley Resort and Laurel Mountain Ski Area in Pennsylvania (collectively, the “Seven Springs Resorts,”
acquired December 31, 2021) prospectively from their respective dates of acquisition.
COVID-19 in general had an adverse impact on our results of operations for Fiscal 2022 and Fiscal 2021.
The sections titled “Fiscal 2023 compared to Fiscal 2022” in each of the Mountain and Lodging segment discussions below
provide comparisons of financial and operating performance for Fiscal 2023 to Fiscal 2022, unless otherwise noted. Discussion
of our financial results for Fiscal 2022 compared to Fiscal 2021 can be found in our Annual Report on Form 10-K for Fiscal
2022, which was filed on September 28, 2022.
Mountain Segment
Mountain segment operating results for Fiscal 2023, Fiscal 2022 and Fiscal 2021 are presented by category as follows (in
thousands, except ETP):
Year ended July 31,
Percentage
Increase/(Decrease)
2023
2022
2021
2023/2022
2022/2021
Mountain net revenue:
Lift
Ski school
Dining
Retail/rental
Other
Total Mountain net revenue
Mountain operating expense:
Labor and labor-related benefits
Retail cost of sales
Resort related fees
General and administrative
Other
Total Mountain operating expense
Mountain equity investment income, net
Mountain Reported EBITDA
Total skier visits
ETP
$
1,420,900 $
287,275
224,642
361,484
246,605
2,540,906
1,310,213 $
223,645
163,705
311,768
203,783
2,213,114
1,076,578
144,227
92,186
227,993
161,814
1,702,798
744,613
118,717
104,797
325,903
424,911
1,718,941
561,266
99,024
93,177
292,412
358,648
1,404,527
605
822,570 $
19,410
73.20 $
2,580
811,167 $
17,298
75.74 $
$
$
458,029
77,217
69,983
253,279
298,235
1,156,743
6,698
552,753
14,852
72.49
8.4 %
28.5 %
37.2 %
15.9 %
21.0 %
14.8 %
32.7 %
19.9 %
12.5 %
11.5 %
18.5 %
22.4 %
(76.6) %
1.4 %
12.2 %
(3.4) %
21.7 %
55.1 %
77.6 %
36.7 %
25.9 %
30.0 %
22.5 %
28.2 %
33.1 %
15.5 %
20.3 %
21.4 %
(61.5) %
46.8 %
16.5 %
4.5 %
Mountain Reported EBITDA includes $21.2 million, $20.9 million and $20.3 million of stock-based compensation expense for
Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively.
44
Fiscal 2023 compared to Fiscal 2022
Mountain Reported EBITDA increased $11.4 million, or 1.4%. The increase was driven by: (i) an overall increase in skier
visitation that benefited our ancillary lines of business, which remained disproportionately impacted by COVID-19 restrictions
and limitations in the prior year; (ii) an increase in North American pass revenue, which benefited from an increase in pass
product sales for the 2022/2023 North American ski season compared to the prior year; and (iii) our Australian operations,
which experienced record visitation and favorable snow conditions in the 2022 ski season following periodic COVID-19 related
closures in the prior year at Perisher, Falls Creek and Hotham. These increases were partially offset by: (i) increased labor and
labor-related benefits and general and administrative expense, primarily as a result of investments in North American employee
wages and increased headcount to support more normalized staffing and operations at our Resorts; (ii) increased variable
expenses associated with increased revenues; (iii) increased expenses related to variable weather conditions; and (iv) the impact
of inflation. Mountain segment results also include $3.1 million and $7.7 million of acquisition and integration related expenses
for Fiscal 2023 and Fiscal 2022, respectively.
Lift revenue increased $110.7 million, or 8.4%, due to increases in both pass revenue and non-pass revenue. Pass revenue
increased 8.5% primarily as a result of an increase in pass product sales for the 2022/2023 North American ski season
compared to the prior year, as well as an increase in pass product sales for the 2022 Australian ski season compared to the prior
year. Non-pass revenue increased 8.3% primarily due to an increase non-pass ETP (excluding Andermatt-Sedrun) of 7.8%, as
well as incremental non-pass revenue from Andermatt-Sedrun of $13.2 million. Total non-pass ETP, including the impact of
Andermatt-Sedrun, increased 4.3%. The increase in non-pass revenue also benefited from an increase in visitation at our
Australian ski areas in the first quarter of Fiscal 2023, which experienced record visitation and favorable snow conditions
during the 2022 ski season following periodic COVID-related closures and restrictions in the prior year. Total ETP decreased
3.4% primarily as a result of an increase in the proportion of pass product visitation (which generally results in lower ETP per
visit) to total skier visits, driven by a continued migration to advance commitment products, partially offset by the increase in
non-pass ETP discussed above.
Ski school revenue increased $63.6 million, or 28.5%, dining revenue increased $60.9 million, or 37.2%, and retail/rental
revenue increased $49.7 million, or 15.9%, each primarily driven by the greater impact of COVID-19 and related limitations
and restrictions in the prior year, including staffing challenges which limited our ability to operate at full capacity, as well as
increased skier visitation.
Other revenue mainly consists of revenues from summer visitation and other mountain activities, employee housing, guest
services, commercial leasing, marketing, private clubs (which includes both club dues and amortization of initiation fees),
municipal services, other recreation activities and Australian ski area lodging and transportation. Other revenue increased
$42.8 million, or 21.0%, primarily as a result of increased visitation at our Resorts compared to the prior year. Additionally, the
increase was driven by the greater impact of COVID-19 and related limitations and restrictions in the prior year, which
impacted the Company’s ability to operate ancillary services and other on-mountain activities at full capacity, as well as our
Australian ski areas, which were disproportionately impacted by restrictions on international travel in the prior year.
Operating expense increased $314.4 million, or 22.4%, which was primarily attributable to investments in employee wages and
salaries and increased headcount to support more normalized staffing and operations at our Resorts, as well as increased
variable expenses associated with increased revenue, the impact of inflation and incremental expenses associated with
Andermatt-Sedrun and the Seven Springs Resorts. Additionally, operating expense includes $3.1 million and $7.7 million of
acquisition and integration related expenses for Fiscal 2023 and Fiscal 2022, respectively.
Labor and labor-related benefits increased 32.7%, primarily due to investments in wages and salaries for North American
employees and increased headcount to support more normalized staffing and operations at our Resorts, as well as an increase in
Australian operations as a result of periodic closures during the 2021 ski season, additional labor costs incurred as a result of
variable weather conditions, and incremental expenses from Andermatt-Sedrun and the Seven Springs Resorts of $21.0 million
for the comparable period they were not owned in the prior year. Retail cost of sales increased 19.9%, compared to an increase
in retail sales of 16.1%, reflecting decreased margins on retail products driven by higher sales of discounted inventory. Resort
related fees increased 12.5% primarily as a result of an increase in revenues on which those fees are based. General and
administrative expense increased 11.5% due to an increase in costs across all corporate functions, which were primarily driven
by investments in employee wages and salaries. Other expense increased 18.5%, primarily due to increases in variable
operating expenses associated with increased revenues, in addition to incremental expenses from Andermatt-Sedrun and the
Seven Springs Resorts of $17.3 million for the comparable period they were not owned in the prior year, increased utility costs
of $10.0 million primarily associated with higher variable rates and increased snowmaking operations at our Eastern U.S. ski
areas, and an increase in repairs and maintenance expense of $4.0 million.
45
Mountain equity investment income, net primarily includes our share of income from the operations of a real estate brokerage
company.
Lodging Segment
Lodging segment operating results for Fiscal 2023, Fiscal 2022 and Fiscal 2021 are presented by category as follows (in
thousands, except average daily rate (“ADR”) and revenue per available room (“RevPAR”)):
Year ended July 31,
Percentage
Increase/(Decrease)
2023
2022
2021
2023/2022
2022/2021
Lodging net revenue:
Owned hotel rooms
Managed condominium rooms
Dining
Transportation
Golf
Other
Lodging net revenue (excluding payroll
cost reimbursements)
Payroll cost reimbursements
Total Lodging net revenue
Lodging operating expense:
Labor and labor-related benefits
General and administrative
Other
Lodging operating expense (excluding
reimbursed payroll costs)
Reimbursed payroll costs
Total Lodging operating expense
Lodging Reported EBITDA
Owned hotel statistics(1):
ADR
RevPar
Managed condominium statistics:
ADR
RevPar
Owned hotel and managed condominium
statistics (combined):
ADR
RevPar
$
$
$
$
$
$
$
$
80,117 $
96,785
62,445
15,242
12,737
55,816
80,579 $
97,704
48,569
16,021
10,975
46,500
323,142
17,251
340,393
148,915
63,562
98,398
300,348
11,742
312,090
128,884
55,081
90,636
310,875
17,251
328,126
12,267 $
274,601
11,742
286,343
25,747 $
47,509
72,217
17,211
9,271
9,373
43,008
198,589
6,553
205,142
95,899
43,714
67,073
206,686
6,553
213,239
(8,097)
312.15 $
160.75 $
309.78 $
170.84 $
264.83
122.45
416.77 $
124.41 $
410.13 $
122.15 $
349.08
77.74
378.62 $
133.48 $
373.89 $
133.53 $
322.15
85.99
(0.6) %
(0.9) %
28.6 %
(4.9) %
16.1 %
20.0 %
7.6 %
46.9 %
9.1 %
15.5 %
15.4 %
8.6 %
13.2 %
46.9 %
14.6 %
(52.4) %
0.8 %
(5.9) %
1.6 %
1.9 %
1.3 %
— %
69.6 %
35.3 %
182.2 %
72.8 %
17.1 %
8.1 %
51.2 %
79.2 %
52.1 %
34.4 %
26.0 %
35.1 %
32.9 %
79.2 %
34.3 %
418.0 %
17.0 %
39.5 %
17.5 %
57.1 %
16.1 %
55.3 %
(1) Owned hotel RevPAR for Fiscal 2023 declined from the prior comparative period primarily due to the inclusion of
properties acquired through the Seven Springs Resorts for the full year-to-date period, compared to only being included for
seven months in the prior year period, as well as the sale of the DoubleTree at Breckenridge hotel, which was sold after the
2021/2022 ski season, partially offset by price increases at our other lodging properties. For Fiscal 2022, the DoubleTree at
Breckenridge contributed $8.6 million of owned hotel revenue.
Lodging Reported EBITDA includes $4.0 million, $3.7 million and $3.8 million of stock-based compensation expense for
Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively.
46
Fiscal 2023 compared to Fiscal 2022
Lodging Reported EBITDA decreased $13.5 million, or 52.4%, primarily driven by an increase in labor and labor-related
benefits and general and administrative expense, including the impacts of investments in employee wages and salaries and
increased headcount to support more normalized staffing and operations at our lodging properties.
Dining revenue increased $13.9 million, or 28.6%, primarily due to incremental revenue from the Seven Springs Resorts of
$7.2 million for the comparable period they were not owned in the prior year, as well as increases in revenue at our other
lodging properties as a result of fewer COVID-19 related limitations and restrictions as compared to the prior year. Golf
revenue increased $1.8 million, or 16.1%, primarily associated with an increase in revenue at our golf course in Wyoming.
Other revenue increased $9.3 million, or 20.0%, primarily due to increases in ancillary revenue associated with the return to
more normalized operations, which include lodging property support fees, lodging retail sales, conference services, and spa
services.
Operating expense (excluding reimbursed payroll costs) increased 13.2%. Labor and labor-related benefits increased 15.5%,
primarily due to investments in employee wages and salaries, and increased headcount to support more normalized staffing and
operations at our lodging properties as compared to prior year, as well as incremental costs from the Seven Springs Resorts of
$6.8 million for the comparable period they were not owned in the prior year. General and administrative expense increased
15.4% compared to the prior year, due to an increase in costs across all corporate functions, and particularly for our central
reservations booking services, which were primarily driven by employee wage and salary investments. Other expense increased
8.6%, primarily related to increases in variable expenses associated with increased revenues, as well as incremental costs from
the Seven Springs Resorts of $4.2 million for the comparable period they were not owned in the prior year.
Revenue from payroll cost reimbursement and the corresponding reimbursed payroll costs relate to payroll costs at managed
hotel properties where we are the employer and all payroll costs are reimbursed by the owners of the properties under
contractual arrangements. Since the reimbursements are made based upon the costs incurred with no added margin, the revenue
and corresponding expense have no effect on our Lodging Reported EBITDA.
Real Estate Segment
Our Real Estate net revenue is primarily determined by the timing of closings and the mix of real estate sold in any given
period. Different types of projects have different revenue and profit margins; therefore, as the real estate inventory mix changes,
it can greatly impact Real Estate segment net revenue, operating expense, gain or loss on sale of real property and Real Estate
Reported EBITDA.
Real Estate segment operating results for Fiscal 2023, Fiscal 2022 and Fiscal 2021 are presented by category as follows (in
thousands):
Total Real Estate net revenue
Real Estate operating expense:
Cost of sales (including sales
commissions)
Other
Total Real Estate operating expense
Gain on sale of real property
Real Estate Reported EBITDA
$
Year ended July 31,
Percentage
Increase/(Decrease)
2023
2022
2021
2023/2022
2022/2021
$
8,065 $
708 $
1,770
1,039.1 %
(60.0) %
5,146
5,489
10,635
842
(1,728) $
251
5,660
5,911
1,276
(3,927) $
1,294
5,382
6,676
324
(4,582)
1,950.2 %
(3.0) %
79.9 %
(34.0) %
56.0 %
(80.6) %
5.2 %
(11.5) %
293.8 %
14.3 %
47
Fiscal 2023
During Fiscal 2023, we closed on the sale of a land parcel in Keystone for $7.5 million, which was recorded within Real Estate
net revenue, with a corresponding cost of sale (including sales commission) of $5.1 million.
Other operating expense of $5.5 million was primarily comprised of general and administrative costs, such as labor and labor-
related benefits, professional services and allocated corporate overhead costs.
Fiscal 2022
We did not close on any significant real estate transactions during Fiscal 2022. Other operating expense of $5.7 million was
primarily comprised of general and administrative costs, such as labor and labor-related benefits, professional services and
allocated corporate overhead costs.
Other Items
In addition to segment operating results, the following items contributed to our overall financial position and results of
operations (in thousands).
Depreciation and amortization
Change in estimated fair value of contingent
consideration
(Loss) gain on disposal of fixed assets and other,
net
Investment income and other, net
Foreign currency (loss) gain on intercompany loans $
Provision for income taxes
Effective tax rate
Net (income) loss attributable to noncontrolling
interest
2023
$ (268,501)
$ (49,836)
$
(9,070)
$ 23,744
(2,907)
$ (88,414)
Year ended July 31,
Percentage Increase/(Decrease)
2022
$ (252,391)
2021
$ (252,585)
2023/2022
2022/2021
6.4 %
(0.1) %
$ (20,280)
$ (14,402)
145.7 %
40.8 %
$ 43,992
3,718
$
(2,682)
$
$ (88,824)
$
$
$
$
(5,373)
586
8,282
(726)
(0.6) %
918.8 %
(120.6) %
534.5 %
538.6 %
(132.4) %
(8.4) %
0.5 % (12,134.7) %
18.8 pts
4.3 pts
(23.7) %
(19.4) %
$ (16,955)
$ (20,414)
$
3,393
16.9 %
(701.7) %
Depreciation and amortization. Depreciation and amortization expense for Fiscal 2023 increased $16.1 million compared to the
prior year, primarily due to assets acquired in the acquisition of Andermatt-Sedrun.
Change in estimated fair value of contingent consideration. We recorded expense of $49.8 million for Fiscal 2023, primarily
related to an increase in the expected long-term EBITDA performance for Park City, as well as an increase in the expected
contingent rent payment to be made for Fiscal 2023. We recorded expense of $20.3 million for Fiscal 2022 primarily related to
an increase in the estimated contingent consideration payment for Fiscal 2022.
(Loss) gain on disposal of fixed assets and other, net. Loss on disposal of fixed assets and other, net for Fiscal 2023 included a
loss of $5.9 million related to the sale of five retail and rental stores in Telluride, Colorado, as well as other annual disposals of
fixed assets. Gain on disposal of fixed assets and other, net for Fiscal 2022 included (i) $32.2 million from the sale of the
DoubleTree at Breckenridge hotel; (ii) $10.3 million in proceeds from the NPS related to partial payments for a leasehold
surrender interest at GTLC associated with assets that have been fully depreciated by the Company (payments were made at the
request of the NPS); and (iii) $7.9 million from the sale of an administrative building in Avon, CO. These gains were partially
offset by losses on other annual disposals of fixed assets.
Investment income and other, net. Investment income and other, net for Fiscal 2023 increased $20.0 million compared to Fiscal
2022, primarily as a result of an increase in earned interest rates.
Foreign currency (loss) gain on intercompany loans. Foreign currency (loss) gain on intercompany loans is associated with an
intercompany loan from Vail Holdings, Inc. to Whistler Blackcomb in the original amount of $210.0 million that was funded,
effective as of November 1, 2016, in connection with the acquisition of Whistler Blackcomb. This intercompany loan requires
foreign currency remeasurement to Canadian dollars, the functional currency for Whistler Blackcomb. As a result, foreign
currency fluctuations between the Canadian dollar and U.S. dollar associated with the loan are recorded within our results of
operations.
48
Provision for income taxes. The effective tax rate for Fiscal 2023 was 23.7%, compared to 19.4% for Fiscal 2022. The increase
in the effective tax rate was primarily due to a shift in income to higher tax rate jurisdictions, as well as a reduction in favorable
discrete items, including excess tax benefits from employee share awards.
Net (income) loss attributable to noncontrolling interest. Net (income) loss attributable to noncontrolling interest is primarily
associated with the income or loss attributable to the minority shareholder of Whistler Blackcomb, and accordingly, fluctuations
are primarily associated with changes in income or loss from Whistler Blackcomb operations. Beginning in Fiscal 2023, net
income (loss) attributable to noncontrolling interest also includes income or loss attributable to the minority shareholder of
Andermatt-Sedrun, for which fluctuations are primarily associated with changes in income or loss from Andermatt-Sedrun
operations.
Reconciliation of Non-GAAP Measures
The following table reconciles net income attributable to Vail Resorts, Inc. to Total Reported EBITDA for Fiscal 2023, Fiscal
2022 and Fiscal 2021 (in thousands):
Net income attributable to Vail Resorts, Inc.
Net income (loss) attributable to noncontrolling interests
Net income
Provision for income taxes
Income before provision for income taxes
Depreciation and amortization
Loss (gain) on disposal of fixed assets and other, net
Change in estimated fair value of contingent consideration
Investment income and other, net
Foreign currency loss (gain) on intercompany loans
Interest expense, net
Total Reported EBITDA
Mountain Reported EBITDA
Lodging Reported EBITDA
Resort Reported EBITDA
Real Estate Reported EBITDA
Total Reported EBITDA
Year ended July 31,
2023
2022
2021
$
268,148 $
347,923 $
127,850
16,955
285,103
88,414
373,517
268,501
9,070
49,836
(23,744)
2,907
153,022
20,414
368,337
88,824
457,161
252,391
(43,992)
20,280
(3,718)
2,682
148,183
833,109 $
832,987 $
(3,393)
124,457
726
125,183
252,585
5,373
14,402
(586)
(8,282)
151,399
540,074
822,570 $
811,167 $
552,753
12,267
834,837
25,747
836,914
(1,728)
(3,927)
(8,097)
544,656
(4,582)
$
$
$
833,109 $
832,987 $
540,074
The following table reconciles long-term debt, net to Net Debt (defined as long-term debt, net plus long-term debt due within
one year less cash and cash equivalents) (in thousands):
Long-term debt, net
Long-term debt due within one year
Total debt
Less: cash and cash equivalents
Net Debt
Year ended July 31,
2023
2022
$
2,750,675 $
2,670,300
69,160
2,819,835
562,975
$
2,256,860 $
63,749
2,734,049
1,107,427
1,626,622
49
Liquidity and Capital Resources
Changes in significant sources and uses of cash for Fiscal 2023, Fiscal 2022 and Fiscal 2021 are presented by categories as
follows (in thousands):
Net cash provided by operating activities
Net cash used in investing activities
Net cash (used in) provided by financing activities
Year ended July 31,
2023
2022
2021
$
$
$
639,563 $
(273,167) $
(915,708) $
710,499 $
(347,917) $
(493,136) $
525,250
(103,329)
434,662
Historically, we have lower cash available at the end of each first and fourth fiscal quarter-end as compared to our second and
third fiscal quarter-ends, primarily due to the seasonality of our Mountain segment operations, although our available cash
balances as of July 31, 2022 and 2021 were higher than our historical July 31 balance primarily as a result of the debt offerings
we completed in Fiscal 2021 and Fiscal 2020.
Fiscal 2023 compared to Fiscal 2022
We generated $639.6 million of cash from operating activities during Fiscal 2023, a decrease of $70.9 million compared to
$710.5 million generated during Fiscal 2022. The decrease in operating cash flows was primarily a result of (i) an increase in
income tax payments of approximately $74.7 million and (ii) an increase in payments for accounts payable and accrued
liabilities primarily associated with the lower level of operations as of the beginning of the prior fiscal year. These decreases
were partially offset by an increase in earned interest on short-term investments of approximately $20.0 million. Additionally,
we generated $7.5 million of proceeds from real estate land parcel sales during Fiscal 2023.
Cash used in investing activities for Fiscal 2023 decreased by $74.8 million primarily due to the prior year acquisition of the
Seven Springs Resorts for $116.3 million, net of cash acquired. Additionally, we made a cash deposit of $114.4 million (CHF
110.0 million) in July 2022 related to the acquisition of Andermatt-Sedrun, which was returned in the current year upon closing
of the acquisition on August 3, 2022. The cash deposit was invested into Andermatt-Sedrun, which is consolidated in our
consolidated financial statements subsequent to the acquisition being completed. Accordingly, the deposit is shown as a cash
outflow in Fiscal 2022 and a cash inflow in Fiscal 2023. These decreases in cash used in investing activities were partially
offset by (i) an increase in capital expenditures of approximately $122.1 million as compared to the prior year, driven by our
significant investment in lift upgrades in calendar year 2022; (ii) $48.8 million of short-term investments in bank deposits in the
current year, net of maturities, which were invested in deposits with maturity dates of more than three months at the date of
purchase and are therefore not reflected as cash equivalents; (iii) $38.6 million of cash paid to ASA upon closing the acquisition
of Andermatt-Sedrun, net of cash acquired, on August 3, 2022 and (iv) proceeds in the prior year due to the sale of the
DoubleTree at Breckenridge, payment from the NPS related to a leasehold surrender interest at GTLC associated with assets
that had been fully depreciated by the Company and the sale of an administrative building in Avon, CO, which did not recur in
the current year.
Cash used in financing activities increased by $422.6 million during Fiscal 2023 compared to Fiscal 2022, primarily due to an
increase in repurchases of common stock of $425.0 million and an increase in dividends paid of $88.6 million. These increases
were partially offset by a decrease in debt repayments, including (i) the prior year repayment associated with the maturity of the
EB-5 Development Notes, which were assumed in our acquisition of Peak Resorts, Inc. ($51.5 million) and (ii) a reduction in
net repayments under the revolver component of our Whistler Credit Agreement ($21.2 million), as well as a decrease in
employee taxes paid for share award exercises ($31.8 million).
Significant Sources of Cash
We had $563.0 million of cash and cash equivalents as of July 31, 2023, compared to $1,107.4 million as of July 31, 2022. The
decrease was primarily due to a $425.0 million increase in share repurchases during Fiscal 2023. We currently anticipate that
our Mountain and Lodging segment operating results will continue to provide a significant source of future operating cash
flows.
In addition to our $563.0 million of cash and cash equivalents at July 31, 2023, we had $421.0 million available under the
revolver component of our Vail Holdings Credit Agreement as of July 31, 2023 (which represents the total commitment of
$500.0 million less certain letters of credit outstanding of $79.0 million). Also, to further support the liquidity needs of Whistler
Blackcomb, we had C$296.6 million ($224.9 million) available under the revolver component of our Whistler Credit
Agreement (which represents the total commitment of C$300.0 million ($227.5 million) less letters of credit outstanding of
50
C$3.4 million ($2.6 million)). We expect that our liquidity needs in the near term will be met by continued use of our existing
cash and cash equivalents, operating cash flows and borrowings under both the Vail Holdings Credit Agreement and Whistler
Credit Agreement, if needed. The Vail Holdings Credit Agreement and the Whistler Credit Agreement provide adequate
flexibility and are priced favorably with any new borrowings currently priced at SOFR, plus 1.60% for the Vail Holdings Credit
Agreement, and Bankers Acceptance Rate plus 1.75% for the Whistler Credit Agreement.
Significant Uses of Cash
Capital Expenditures
We have historically invested significant amounts of cash in capital expenditures for our resort operations, and we expect to
continue to do so, subject to operating performance particularly as it relates to discretionary projects. In addition, we may incur
capital expenditures for retained ownership interests associated with third-party real estate development projects. Currently
planned capital expenditures primarily include investments that will allow us to maintain our high-quality standards for the
guest experience throughout our owned hotels and in technology that can impact the full network. Additionally, planned capital
expenditures include discretionary improvements at our Resorts which we evaluate based on an expected level of return on
investment.
We currently anticipate we will spend approximately $180 million to $185 million on resort capital expenditures during
calendar year 2023, excluding one-time investments related to integration activities, deferred capital associated with the
Keystone and Park City projects, $4 million of reimbursable investments associated with insurance recoveries, and $9 million
of growth capital investments at Andermatt-Sedrun. Including these one-time items, our total capital plan for calendar year
2023 is expected to be approximately $204 million to $209 million. Included in these estimated capital expenditures are
approximately $112 million to $117 million of maintenance capital expenditures (excluding Andermatt-Sedrun), which are
necessary to maintain appearance and level of service appropriate to our resort operations. We currently plan to utilize cash on
hand, borrowings available under our credit agreements and/or cash flow generated from future operations to provide the cash
necessary to complete our capital plans.
Approximately $108 million was spent for capital expenditures in calendar year 2023 as of July 31, 2023, leaving
approximately $96 million to $101 million to spend in the remainder of calendar year 2023.
Acquisitions
On August 3, 2022, we acquired a majority stake in Andermatt-Sedrun, which was funded with cash on hand. The purchase
price was comprised of a $114.4 million (CHF 110.0 million) investment into Andermatt-Sedrun for use in capital investments
to enhance the guest experience on the mountain and $41.3 million (CHF 39.3 million) paid to the seller. As of August 3, 2022,
the value of the total consideration paid was $155.4 million (CHF 149.3 million).
Debt
As of July 31, 2023, principal payments on the majority of our long-term debt ($2.1 billion of the total $2.8 billion debt
outstanding as of July 31, 2023) are not due until fiscal year 2026 and beyond. As of July 31, 2023 and 2022, total long-term
debt, net (including long-term debt due within one year) was $2.8 billion and $2.7 billion, respectively. Net Debt (defined as
long-term debt, net plus long-term debt due within one year less cash and cash equivalents) was $2.3 billion and $1.6 billion as
of July 31, 2023 and 2022, respectively, and the increase was primarily associated with the use of cash to fund increased share
repurchases under our share repurchase program during Fiscal 2023.
As of July 31, 2023, the Vail Holdings Credit Agreement provides for (i) a revolving loan facility in an aggregate principal
amount of $500.0 million and (ii) a term loan facility of $1.0 billion. We expect that our liquidity needs in the near term will be
met by continued use of our existing cash and cash equivalents, operating cash flows and borrowings under the Vail Holdings
Credit Agreement and the Whistler Credit Agreement, if needed.
Our debt service requirements can be impacted by changing interest rates as we had approximately $0.7 billion of net variable-
rate debt outstanding as of July 31, 2023, after consideration of $400.0 million in interest rate swaps which effectively convert
variable-rate debt to fixed-rate debt. A 100-basis point change in our borrowing rates would cause our annual interest payments
on our net variable-rate debt to change by approximately $6.7 million. Additionally, the annual payments associated with the
financing of the Canyons transaction increase by the greater of CPI less 1%, or 2%. The fluctuation in our debt service
requirements, in addition to interest rate and inflation changes, may be impacted by future borrowings under our credit
agreements or other alternative financing arrangements we may enter into. Our long term liquidity needs depend upon operating
results that impact the borrowing capacity under our credit agreements. We can respond to liquidity impacts of changes in the
51
business and economic environment by managing our capital expenditures, variable operating expenses, the timing of new real
estate development activity and the payment of cash dividends on our common stock.
Material Cash Requirements
As part of our ongoing operations, we enter into arrangements that obligate us to make future payments under contracts such as
debt agreements and construction agreements in conjunction with our resort capital expenditures. Debt obligations, which
totaled $2.8 billion as of July 31, 2023, are recognized as liabilities in our Consolidated Balance Sheet. Obligations under
construction contracts and other purchase commitments are not recognized as liabilities in our Consolidated Balance Sheet until
services and/or goods are received which is in accordance with GAAP. A summary of our material cash requirements as of
July 31, 2023 (excluding obligations presented elsewhere, including Notes to Consolidated Financial Statements) is presented
below (in thousands):
Long-term debt (1)
Service contracts
Purchase obligations and other (2)
Total contractual cash obligations
Payments Due by Period
Total
Fiscal
2024
2-3
years
4-5
years
More than
5 years
$ 3,198,106
170,345
1,456,545
891,889
679,327
$
$
45,198
696,772
30,024
546,636
11,541
91,127
3,633
1,390
—
57,619
$ 3,940,076 $
747,005 $ 1,559,213 $
896,912 $
736,946
(1) Long-term debt includes principal payments, fixed-rate interest payments (including payments that are required under
interest rate swaps) and estimated variable interest payments utilizing interest rates in effect at July 31, 2023, and assumes
all debt outstanding as of July 31, 2023 will be held to maturity. The future annual interest obligations noted herein are
estimated only in relation to debt outstanding as of July 31, 2023, and do not reflect interest obligations on potential future
debt or refinancing.
Long-term debt also includes $12.8 million of proceeds resulting from real estate transactions accounted for as financing
arrangements, which are expected to be recognized on the Company’s Statements of Operations in future years as a result of
the anticipated resolution of continuing involvement, with no associated cash outflow.
(2) Purchase obligations and other primarily includes amounts which are classified as trade payables ($148.5 million),
accrued payroll and benefits ($99.4 million), accrued fees and assessments ($27.6 million), contingent consideration liability
($73.3 million) and accrued taxes (including taxes for uncertain tax positions) ($140.3 million) on our Consolidated Balance
Sheet as of July 31, 2023. These amounts also include other commitments for goods and services not yet received, including
construction contracts and minimum commitments under season pass alliance agreements, which are not included on our
Consolidated Balance Sheet as of July 31, 2023 in accordance with GAAP.
Share Repurchase Program
Our share repurchase program is conducted under authorizations made from time to time by our Board of Directors. On March
9, 2006, our Board of Directors initially authorized the repurchase of up to 3,000,000 shares of Vail Shares and later authorized
additional repurchases of up to 3,000,000 additional Vail Shares (July 16, 2008), 1,500,000 Vail Shares (December 4, 2015),
and 2,500,000 Vail Shares (March 7, 2023), for a total authorization to repurchase shares of up to 10,000,000 Vail Shares.
During Fiscal 2023, we repurchased 2,182,594 shares (at an average price of $229.09) for a total cost of approximately
$500.0 million, excluding accrued excise tax. Since the inception of this stock repurchase program through July 31, 2023, we
have repurchased 8,648,302 Vail Shares at a cost of approximately $979.4 million. As of July 31, 2023, 1,351,698 Vail Shares
remained available to repurchase under the existing repurchase authorization. Vail Shares purchased pursuant to the repurchase
program will be held as treasury shares and may be used for the issuance of shares under our share award plan. Repurchases
under the program may be made from time to time at prevailing prices as permitted by applicable laws, and subject to market
conditions and other factors. The timing, as well as the number of Vail Shares that may be repurchased under the program, will
depend on several factors, including our future financial performance, our available cash resources and competing uses for cash
that may arise in the future, the restrictions in our Vail Holdings Credit Agreement, prevailing prices of Vail Shares and the
number of Vail Shares that become available for sale at prices that we believe are attractive. The share repurchase program has
no expiration date.
52
Dividend Payments
During Fiscal 2023, we paid cash dividends of $7.94 per share ($314.4 million). During Fiscal 2022, we paid cash dividends of
$5.58 per share ($225.8 million, including cash dividends paid to Exchangeco shareholders). On September 27, 2023, our
Board of Directors approved a cash dividend of $2.06 per share payable on October 26, 2023 to stockholders of record as of
October 10, 2023. We expect to fund the dividend with available cash on hand. The amount, if any, of dividends to be paid in
the future will depend on our available cash on hand, anticipated cash needs, overall financial condition, restrictions contained
in our Vail Holdings Credit Agreement, future prospects for earnings and cash flows, as well as other factors considered
relevant by our Board of Directors.
Covenants and Limitations
We must abide by certain restrictive financial covenants under our credit agreements. The most restrictive of those covenants
include the following: for the Vail Holdings Credit Agreement, Net Funded Debt to Adjusted EBITDA ratio, Secured Net
Funded Debt to Adjusted EBITDA ratio and the Interest Coverage ratio (each as defined in the Vail Holdings Credit
Agreement); for the Whistler Credit Agreement, Consolidated Total Leverage Ratio and Consolidated Interest Coverage Ratio
(each as defined in the Whistler Credit Agreement); and for the EPR Secured Notes, Maximum Leverage Ratio and
Consolidated Fixed Charge Ratio (each as defined in the EPR Agreements). Additionally, the New Regional Policy loan
between Andermatt-Sedrun and the Canton of Uri and Canton of Graubünden dated June 24, 2016 includes restrictive
covenants requiring certain minimum financial results (as defined in the agreement). In addition, our financing arrangements
limit our ability to make certain restricted payments, pay dividends on or redeem or repurchase stock, make certain investments,
make certain affiliate transfers and may limit our ability to enter into certain mergers, consolidations or sales of assets and incur
certain indebtedness. Our borrowing availability under the Vail Holdings Credit Agreement is primarily determined by the Net
Funded Debt to Adjusted EBITDA ratio, which is based on our segment operating performance, as defined in the Vail Holdings
Credit Agreement. Our borrowing availability under the Whistler Credit Agreement is primarily determined based on the
commitment size of the credit facility and our compliance with the terms of the Whistler Credit Agreement.
We were in compliance with all restrictive financial covenants in our debt instruments as of July 31, 2023. We expect that we
will continue to meet all applicable financial maintenance covenants in effect in our credit agreements throughout the year
ending July 31, 2024; however, there can be no assurance that we will continue to meet such financial covenants. If such
covenants are not met, we would be required to seek a waiver or amendment from the banks participating in our credit
agreements. There can be no assurance that such waiver or amendment would be granted, which could have a material adverse
impact on our liquidity.
Off Balance Sheet Arrangements
We do not have off balance sheet transactions that are expected to have a material effect on our financial condition, revenue,
expenses, results of operations, liquidity, capital expenditures or capital resources.
Critical Accounting Policies
The preparation of Consolidated Financial Statements in conformity with GAAP requires us to select appropriate accounting
policies and to make judgments and estimates affecting the application of those accounting policies. In applying our accounting
policies, different business conditions or the use of different assumptions may result in materially different amounts reported in
the Consolidated Financial Statements.
We have identified the most critical accounting policies which were determined by considering accounting policies that involve
the most complex or subjective decisions or assessments. We also have other policies considered key accounting policies;
however, these policies do not meet the definition of critical accounting policies because they do not generally require us to
make estimates or judgments that are complex or subjective. We have reviewed these critical accounting policies and related
disclosures with our Audit Committee of the Board of Directors.
Goodwill and Intangible Assets
Description
The carrying value of goodwill and indefinite-lived intangible assets are evaluated for possible impairment on an annual basis
or between annual tests if an event occurs or circumstances change that would more likely than not reduce the estimated fair
value of a reporting unit or indefinite-lived intangible asset below its carrying value. Definite-lived intangible assets are
evaluated for impairment only when there is evidence that events or changes in circumstances indicate that the carrying amount
of these assets may not be recoverable.
53
Judgments and Uncertainties
Application of the goodwill and indefinite-lived intangible asset impairment test requires judgment, including the identification
of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units and
determination of the estimated fair value of reporting units and indefinite-lived intangible assets. We perform a qualitative
analysis to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset
exceeds the carrying amount. If it is determined, based on qualitative factors, that the fair value of the reporting unit or
indefinite-lived intangible asset is more likely than not less than its carrying amount, or if significant changes to macro-
economic factors related to the reporting unit or intangible asset have occurred that could materially impact the estimated fair
value since the previous quantitative analysis was performed, a quantitative impairment test would be required. The quantitative
test includes determination of the estimated fair value of our reporting units using a discounted cash flow analysis and
determination of the estimated fair value of indefinite-lived intangible assets primarily using the income approach based upon
estimated future revenue streams. These analyses require significant judgments, including estimation of future cash flows,
which is dependent on internal forecasts, available industry/market data (to the extent available), estimation of the long-term
rate of growth for our business including expectations and assumptions regarding the impact of general economic conditions on
our business, estimation of terminal value, determination of the respective weighted average cost of capital and market
participant assumptions. Changes in these estimates and assumptions could materially affect the determination of estimated fair
value and the amount of any potential impairment for each reporting unit or indefinite-lived intangible asset.
Effect if Actual Results Differ From Assumptions
Goodwill and indefinite-lived intangible assets are tested for impairment at least annually as of May 1. If the net carrying value
of the reporting units or assets exceed their estimated fair value, an impairment will be recognized in an amount equal to that
excess; otherwise, no impairment loss is recognized. During Fiscal 2023, we performed qualitative analyses of our reporting
units and indefinite-lived intangible assets and determined that the estimated fair value of all material reporting units and
indefinite-lived intangible assets significantly exceeded their respective carrying values.
Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As
a result, there can be no assurance that the estimates and assumptions made for purposes of the annual goodwill or indefinite-
lived asset impairment tests are accurate. Examples of events or circumstances that could reasonably be expected to negatively
affect the underlying key assumptions and ultimately impact the estimated fair value of our reporting units may include such
items as: (1) prolonged adverse weather conditions resulting in a sustained decline in guest visitation; (2) a prolonged weakness
in the general economic conditions in which guest visitation and spending is adversely impacted; and (3) volatility in the equity
and debt markets which could result in a higher discount rate.
While we believe that our estimates and judgments are reasonable and while historical performance and current expectations
have generally resulted in estimated fair values of our reporting units and indefinite-lived assets that are in excess of carrying
values, if our assumptions are not realized, it is possible that an impairment charge may need to be recorded in the future.
However, it is not possible at this time to determine if an impairment charge would result or if such a charge would be material.
As of July 31, 2023, we had $1,720.3 million of goodwill and $254.4 million of indefinite-lived intangible assets recorded on
our Consolidated Balance Sheet. There can be no assurance that the estimates and assumptions made for purposes of the annual
goodwill and indefinite-lived intangible asset impairment tests will prove to be an accurate prediction of the future.
Tax Contingencies
Description
We must make certain estimates and judgments in determining income tax expense for financial statement purposes. These
estimates and judgments occur in the calculation of tax credits and deductions and in the calculation of certain tax assets and
liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement
purposes, as well as the interest and penalties relating to uncertain tax positions. The calculation of our tax liabilities involves
dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain tax positions
based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of
available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of
related appeals or litigation processes, if any. The second step requires us to estimate and measure the largest tax benefit that is
cumulatively greater than 50% likely of being realized upon ultimate settlement. It is inherently difficult and subjective to
estimate such amounts, as this requires us to determine the probability of various possible outcomes. This evaluation is based
on factors including, but not limited to, changes in facts or circumstances, changes in tax law, interpretation of tax law,
effectively settled issues under audit and new audit activity. A significant amount of time may pass before a particular matter,
for which we may have established a reserve, is audited and fully resolved.
54
Judgments and Uncertainties
The estimates of our tax contingencies reserve contain uncertainty because management must use judgment to estimate the
potential exposure associated with our various filing positions.
Effect if Actual Results Differ From Assumptions
We believe the estimates and judgments we have made related to tax contingencies are reasonable and we have adequate
reserves for uncertain tax positions. Our reserves for uncertain tax positions, including any income tax related interest and
penalties, are $56.8 million as of July 31, 2023. This reserve solely relates to the treatment of the Canyons lease payments
obligation as payments of debt obligations and that the tax basis in Canyons goodwill is deductible. Actual results could differ
and we may be exposed to increases or decreases in those reserves and tax provisions that could be material.
An unfavorable tax settlement could require the use of cash and could possibly result in increased tax expense and effective tax
rate and/or adjustments to our deferred tax assets and deferred tax liabilities in the year of resolution. A favorable tax settlement
could possibly result in a reduction in our tax expense, effective tax rate, income taxes payable, other long-term liabilities and/
or adjustments to our deferred tax assets and deferred tax liabilities in the year of settlement or in future years.
Depreciable Lives of Assets
Description
Mountain and lodging operational assets, furniture and fixtures, computer equipment, software, vehicles and leasehold
improvements are primarily depreciated using the straight-line method over the estimated useful life of the asset. Assets may
become obsolete or require replacement before the end of their useful life in which the remaining book value would be written-
off or we could incur costs to remove or dispose of assets no longer in use.
Judgments and Uncertainties
The estimates of our useful lives of the assets contain uncertainty because management must use judgment to estimate the
useful life of the asset.
Effect if Actual Results Differ From Assumptions
Although we believe the estimates and judgments discussed herein are reasonable, actual results could differ, and we may be
exposed to increased expense related to depreciable assets disposed of, removed or taken out of service prior to its originally
estimated useful life, which may be material. A 10% decrease in the estimated useful lives of depreciable assets would have
increased depreciation expense by approximately $28.3 million for Fiscal 2023.
Business Combinations
Description
A component of our growth strategy has been to acquire and integrate businesses that complement our existing operations. We
account for business combinations in accordance with the guidance for business combinations and related literature.
Accordingly, we allocate the purchase price of acquired businesses to the identifiable tangible and intangible assets acquired
and liabilities assumed based upon their estimated fair values at the date of acquisition. The difference between the purchase
price and the estimated fair value of assets acquired and liabilities assumed is recorded as goodwill. In determining the
estimated fair values of assets acquired and liabilities assumed in a business combination, we use various recognized valuation
methods including present value modeling and referenced market values (where available). Valuations are performed by
management or independent valuation specialists under management’s supervision, where appropriate.
Judgments and Uncertainties
Accounting for business combinations requires our management to make significant estimates and assumptions, especially at
the acquisition date, including our estimates for intangible assets, contractual obligations assumed and contingent consideration,
where applicable. Although we believe the assumptions and estimates we have made in the past have been reasonable and
appropriate, they are based in part on historical experience and information obtained from the management of the acquired
companies and are inherently uncertain. Examples of critical estimates in valuing certain of the intangible assets we have
acquired include, but are not limited to: determination of weighted average cost of capital, market participant assumptions,
royalty rates, terminal multiples and estimates of future cash flows to be generated by the acquired assets. In addition to the
estimates and assumptions applied to valuing intangible assets acquired, the determination of the estimated fair value of
55
contingent consideration, including estimating the likelihood and timing of achieving the relevant thresholds for contingent
consideration payments, requires the use of subjective judgments. We estimate the fair value of the Park City contingent
consideration payments using an option pricing valuation model which incorporates, among other factors, projected
achievement of specified financial performance measures, discount rates and volatility for the respective business.
Effect if Actual Results Differ From Assumptions
We believe that the estimated fair values assigned to the assets acquired and liabilities assumed are based on reasonable
assumptions that a marketplace participant would use. While we use our best estimates and assumptions to accurately value
assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement.
As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments,
which could be significant, to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the
conclusion of the measurement period or final determination of the estimated fair values of assets acquired or liabilities
assumed, whichever comes first, any subsequent adjustments would be recorded on our Consolidated Statements of Operations.
We recognize the fair value of contingent consideration, if any, at the date of acquisition as part of the consideration transferred
to acquire a business. The liability associated with contingent consideration is remeasured to fair value at each reporting period
subsequent to the date of acquisition taking into consideration changes in financial projections and long-term growth rates,
among other factors, that may impact the timing and amount of contingent consideration payments until the term of the
agreement has expired or the contingency is resolved. Increases in the fair value of contingent consideration are recorded as
losses on our Consolidated Statements of Operations, while decreases in fair value are recorded as gains.
New Accounting Standards
Refer to the Summary of Significant Accounting Policies within the Notes to Consolidated Financial Statements for a
discussion of new accounting standards.
Seasonality and Quarterly Results
Our mountain and lodging operations are seasonal in nature, with a typical peak operating season in North America and Europe
generally beginning in mid-December and running through mid-April. In particular, revenue and profits for our North American
and European mountain and most of our lodging operations are substantially lower and historically result in losses from late
spring to late fall. Conversely, peak operating seasons for our NPS concessioner properties, our mountain resort golf courses
and our Australian resorts’ ski season generally occur during the North American summer months, and these operations
typically incur operating losses during the North American and European winter months. Revenue and profits generated by
NPS concessioner properties’ summer operations, golf operations and Australian resorts’ ski operations are not sufficient to
fully offset our off-season losses from our North American and European mountain and other lodging operations. During Fiscal
2023, approximately 81% of total combined Mountain and Lodging segment net revenue (excluding Lodging segment revenue
associated with reimbursement of payroll costs) was earned during the second and third fiscal quarters. Therefore, the operating
results for any three-month period are not necessarily indicative of the results that may be achieved for any subsequent quarter
or for a full year (see Notes to Consolidated Financial Statements).
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Interest Rate Risk. Our exposure to market risk is limited primarily to the fluctuating interest rates associated with variable rate
indebtedness. At July 31, 2023, we had approximately $0.7 billion of net variable rate indebtedness (after taking into
consideration $400.0 million in interest rate swaps which converts variable-rate debt to fixed-rate debt), representing
approximately 24% of our total debt outstanding, at an average interest rate during Fiscal 2023 of approximately 5.4%. Based
on variable-rate borrowings outstanding as of July 31, 2023, a 100-basis point (or 1.0%) change in our borrowing rates would
result in our annual interest payments changing by $6.7 million. Our market risk exposure fluctuates based on changes in
underlying interest rates.
Foreign Currency Exchange Rate Risk. We are exposed to currency translation risk because our international operations are
conducted in local currency, which we then translate to U.S. dollars for inclusion in our Consolidated Financial Statements. As
a result, changes in foreign exchange rates, in particular the Canadian dollar, Australian dollar and Swiss franc compared to the
U.S. dollar, affect the amounts we record for our foreign assets, liabilities, revenues and expenses, and could have a negative
effect on our financial results. Additionally, we have foreign currency transaction exposure from an intercompany loan to
Whistler Blackcomb that is not deemed to be permanently invested, which has and could materially change due to fluctuations
in the Canadian dollar exchange rate. The results of Whistler Blackcomb are reported in Canadian dollars, the results of our
Australian resorts are reported in Australian dollars, and the results of Andermatt-Sedrun are reported in Swiss francs, each of
56
which we then translate to U.S. dollars for inclusion in our Consolidated Financial Statements. We do not currently enter into
hedging arrangements to minimize the impact of foreign currency fluctuations on our operations.
The following table summarizes the amounts of foreign currency translation adjustments, representing (losses) gains, and
foreign currency (loss) gain on intercompany loans recognized in comprehensive income (in thousands):
Foreign currency translation adjustments
Foreign currency (loss) gain on intercompany loans
$
$
(25,439) $
(2,907) $
(46,493) $
(2,682) $
100,019
8,282
Year ended July 31,
2023
2022
2021
57
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
Vail Resorts, Inc.
Consolidated Financial Statements for the Years Ended July 31, 2023, 2022 and 2021
Management’s Report on Internal Control Over Financial Reporting
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
Consolidated Financial Statements
Consolidated Balance Sheets
Consolidated Statements of Operations
Consolidated Statements of Comprehensive Income
Consolidated Statements of Stockholders’ Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
59
60
62
63
64
65
66
67
58
Management’s Report on Internal Control over Financial Reporting
Management of Vail Resorts, Inc. (the “Company”) is responsible for establishing and maintaining adequate internal control
over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Securities Exchange Act of 1934. The
Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles in the United States of America.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of the effectiveness of internal control over financial reporting to future periods are subject to the
risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Management, including the Company’s Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of the
Company’s internal control over financial reporting as of July 31, 2023. In making this assessment, management used the
criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission in 2013. Based on this assessment, management concluded that, as of July 31, 2023, the Company’s
internal control over financial reporting was effective. Management’s evaluation and conclusion on the effectiveness of internal
control over financial reporting as of July 31, 2023 excluded certain elements of internal controls of Andermatt-Sedrun Sport
AG (“Andermatt-Sedrun”, acquired August 3, 2022) due to the timing of this acquisition. Those elements of the acquired
resort’s internal controls over financial reporting that have been excluded represent approximately 2% of total consolidated
assets and approximately 1% of total consolidated net revenues of the Company as of and for the year ended July 31, 2023.
The Company’s independent registered public accounting firm, PricewaterhouseCoopers LLP, has issued an attestation report
on the effectiveness of the Company’s internal control over financial reporting as of July 31, 2023, as stated in the Report of
Independent Registered Public Accounting Firm on the following page.
59
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders
of Vail Resorts, Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Vail Resorts, Inc. and its subsidiaries (the “Company”) as of
July 31, 2023 and 2022, and the related consolidated statements of operations, of comprehensive income, of stockholders’
equity and of cash flows for each of the three years in the period ended July 31, 2023, including the related notes (collectively
referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial
reporting as of July 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial
position of the Company as of July 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three
years in the period ended July 31, 2023 in conformity with accounting principles generally accepted in the United States of
America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of July 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the
COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal
control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included
in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to
express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial
reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement,
whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material
respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement
of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the
risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based
on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the
circumstances. We believe that our audits provide a reasonable basis for our opinions.
As described in Management’s Report on Internal Control over Financial Reporting, management has excluded Andermatt-
Sedrun Sport AG from its assessment of internal control over financial reporting as of July 31, 2023 because it was acquired by
the Company in a purchase business combination during the year ended July 31, 2023. We have also excluded Andermatt-
Sedrun Sport AG from our audit of internal control over financial reporting. Andermatt-Sedrun Sport AG is a subsidiary whose
total assets and total revenues excluded from management’s assessment and our audit of internal control over financial
reporting represent 2% and 1%, respectively, of the related consolidated financial statement amounts as of and for the year
ended July 31, 2023.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit
60
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial
statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or
disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or
complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated
financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate
opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Fair Value Measurement of the Contingent Consideration
As described in Note 9 to the consolidated financial statements, the Company has established a liability of $73.3 million as of
July 31, 2023 for additional amounts that management believes are likely to be paid to the previous owner of Park City (the
“Contingent Consideration”). The Company remeasures the Contingent Consideration to fair value at each reporting date until
the contingency is resolved. The estimated fair value of Contingent Consideration includes the future period resort operations of
Park City in the calculation of EBITDA on which participating contingent payments are made, which is determined on the basis
of estimated subsequent year performance, escalated by an assumed annual growth factor and discounted to net present value.
Fair value is estimated using an option pricing valuation model. As described by management, significant assumptions in
determining the fair value under this model included future period Park City EBITDA, discount rate and volatility.
The principal considerations for our determination that performing procedures relating to the fair value measurement of the
Contingent Consideration is a critical audit matter are (i) the significant judgment by management when developing the fair
value measurement, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures
and evaluating audit evidence related to management’s significant assumptions for the future period Park City EBITDA,
discount rate, and volatility; and (ii) the audit effort involved the use of professionals with specialized skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall
opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to
management’s fair value measurement of the Contingent Consideration including controls over the Company’s significant
assumptions. The procedures also included, among others, testing management’s process for developing the fair value
measurement and evaluating the significant assumptions used by management, related to the future period Park City EBITDA,
discount rate, and volatility. Evaluating management’s assumptions related to the future period Park City EBITDA, discount
rate, and volatility involved evaluating whether the assumptions used by management were reasonable considering (i) the
current and past period EBITDA performance of Park City; (ii) the consistency with external market data; and (iii) whether
these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and
knowledge were used to assist in the evaluation of the Company’s discount rate and volatility assumptions.
/s/ PricewaterhouseCoopers LLP
Denver, Colorado
September 28, 2023
We have served as the Company’s auditor since 2002.
61
Vail Resorts, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
Assets
Current assets:
Cash and cash equivalents
Restricted cash
Trade receivables, net of allowances of $5,385 and $6,356, respectively
Inventories, net of reserves
Other current assets
Total current assets
Property, plant and equipment, net (Note 8)
Real estate held for sale or investment
Goodwill, net (Note 8)
Intangible assets, net (Note 8)
Operating right-of-use assets (Note 4)
Other assets
Total assets
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 8)
Income taxes payable
Long-term debt due within one year (Note 6)
Total current liabilities
Long-term debt, net (Note 6)
Operating lease liabilities (Note 4)
Other long-term liabilities
Deferred income taxes, net (Note 10)
Total liabilities
Commitments and contingencies (Note 11)
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 and 46,798 and 46,744
shares issued, respectively
Exchangeable shares, $0.01 par value, 0 and 3 shares issued and outstanding,
respectively (Note 5)
Additional paid-in capital
Accumulated other comprehensive (loss) income
Retained earnings
Treasury stock, at cost; 8,648 and 6,466 shares, respectively (Note 13)
Total Vail Resorts, Inc. stockholders’ equity
Noncontrolling interests
Total stockholders’ equity
Total liabilities and stockholders’ equity
$
July 31,
2023
2022
562,975 $
10,118
381,067
132,548
121,403
1,208,111
2,371,557
90,207
1,720,344
309,345
192,289
55,901
5,947,754 $
978,021 $
83,514
69,160
1,130,695
2,750,675
168,326
286,261
276,137
4,612,094
—
468
—
1,124,433
(10,358)
873,710
(984,306)
1,003,947
331,713
1,335,660
5,947,754 $
1,107,427
18,680
383,425
108,723
173,277
1,791,532
2,118,052
95,983
1,754,928
314,058
192,070
51,405
6,318,028
942,830
104,275
63,749
1,110,854
2,670,300
174,567
246,359
268,464
4,470,544
—
467
—
1,184,577
10,923
895,889
(479,417)
1,612,439
235,045
1,847,484
6,318,028
The accompanying Notes are an integral part of these Consolidated Financial Statements.
62
Vail Resorts, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
Year Ended July 31,
2023
2022
2021
Net revenue:
Mountain and Lodging services and other
Mountain and Lodging retail and dining
Resort net revenue
Real Estate
Total net revenue
$
2,372,175 $
509,124
2,881,299
8,065
2,889,364
2,116,547 $
408,657
2,525,204
708
2,525,912
Operating expense (exclusive of depreciation and amortization
shown separately below):
Mountain and Lodging operating expense
Mountain and Lodging retail and dining cost of products sold
General and administrative
Resort operating expense
Real Estate
Total segment operating expense
Other operating (expense) income:
Depreciation and amortization
Gain on sale of real property
Change in estimated fair value of contingent consideration (Note
9)
(Loss) gain on disposal of fixed assets and other, net
Income from operations
Interest expense, net
Mountain equity investment income, net
Investment income and other, net
Foreign currency (loss) gain on intercompany loans (Note 6)
Income before provision for income taxes
Provision for income taxes (Note 10)
Net income
Net (income) loss attributable to noncontrolling interests
Net income attributable to Vail Resorts, Inc.
Per share amounts (Note 5):
Basic net income per share attributable to Vail Resorts, Inc.
Diluted net income per share attributable to Vail Resorts, Inc.
Cash dividends declared per share
$
$
$
$
1,454,324
203,278
389,465
2,047,067
10,635
2,057,702
1,180,963
162,414
347,493
1,690,870
5,911
1,696,781
(268,501)
842
(252,391)
1,276
(49,836)
(9,070)
505,097
(153,022)
605
23,744
(2,907)
373,517
(88,414)
285,103
(16,955)
268,148 $
6.76 $
6.74 $
7.94 $
(20,280)
43,992
601,728
(148,183)
2,580
3,718
(2,682)
457,161
(88,824)
368,337
(20,414)
347,923 $
8.60 $
8.55 $
5.58 $
The accompanying Notes are an integral part of these Consolidated Financial Statements.
1,650,055
257,885
1,907,940
1,770
1,909,710
960,453
112,536
296,993
1,369,982
6,676
1,376,658
(252,585)
324
(14,402)
(5,373)
261,016
(151,399)
6,698
586
8,282
125,183
(726)
124,457
3,393
127,850
3.17
3.13
—
63
Vail Resorts, Inc.
Consolidated Statements of Comprehensive Income
(In thousands)
Year Ended July 31,
2023
2022
2021
Net income
Foreign currency translation adjustments
Change in estimated fair value of hedging instruments, net of tax
Comprehensive income
Comprehensive income attributable to noncontrolling interests
$
285,103 $
(25,439)
3,691
263,355
(16,488)
368,337 $
(46,493)
18,906
340,750
(9,703)
Comprehensive income attributable to Vail Resorts, Inc.
$
246,867 $
331,047 $
124,457
100,019
12,817
237,293
(24,807)
212,486
The accompanying Notes are an integral part of these Consolidated Financial Statements.
64
Vail Resorts, Inc.
Consolidated Statements of Stockholders’ Equity
(In thousands, except share amounts)
Common Stock
Additional
Paid in
Capital
Accumulated Other
Comprehensive
(Loss) Income
Retained
Earnings
Treasury
Stock
Total Vail Resorts,
Inc. Stockholders’
Equity
Noncontrolling
Interests
Total
Stockholders’
Equity
Vail Resorts Exchangeable
$
464 $
— $ 1,131,624 $
(56,837) $ 645,902 $ (404,411) $
1,316,742 $
214,925 $
1,531,667
—
—
—
—
—
2
—
466
—
—
—
—
1
—
—
—
—
—
—
—
—
—
—
—
—
—
80,066
24,395
(39,092)
—
—
127,850
71,819
12,817
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
127,850
71,819
12,817
212,486
80,066
24,395
(39,090)
(3,393)
28,200
—
24,807
—
—
—
124,457
100,019
12,817
237,293
80,066
24,395
(39,090)
—
(5,263)
(5,263)
—
1,196,993
27,799
773,752
(404,411)
1,594,599
234,469
1,829,068
—
—
—
—
—
—
—
—
—
—
—
24,885
(37,301)
—
—
—
—
347,923
(35,782)
18,906
—
—
—
—
—
—
—
—
—
—
—
—
—
(75,006)
—
(225,786)
—
—
—
—
347,923
(35,782)
18,906
331,047
24,885
(37,300)
(75,006)
(225,786)
20,414
(10,711)
—
9,703
—
—
—
—
368,337
(46,493)
18,906
340,750
24,885
(37,300)
(75,006)
(225,786)
—
(9,127)
(9,127)
467
—
1,184,577
10,923
895,889
(479,417)
1,612,439
235,045
1,847,484
—
—
—
—
—
1
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
(80,066)
25,409
(5,487)
—
—
—
—
—
268,148
(24,972)
3,691
—
—
—
—
—
—
—
—
24,023
—
—
—
—
—
—
—
(504,889)
—
(314,350)
—
—
—
—
—
—
—
268,148
(24,972)
3,691
246,867
(56,043)
25,409
(5,486)
(504,889)
(314,350)
16,955
(467)
—
16,488
—
—
—
—
—
285,103
(25,439)
3,691
263,355
(56,043)
25,409
(5,486)
(504,889)
(314,350)
—
—
91,524
91,524
(11,344)
(11,344)
Balance, July 31, 2020
Comprehensive income:
Net income (loss)
Foreign currency translation adjustments
Change in estimated fair value of hedging instruments, net of tax
Total comprehensive income
Equity component of 0.0% Convertible Notes, net (Note 6)
Stock-based compensation expense (Note 14)
Issuance of shares under share award plan, net of shares withheld for
employee taxes (Note 14)
Distributions to noncontrolling interests, net
Balance, July 31, 2021
Comprehensive income:
Net income
Foreign currency translation adjustments
Change in estimated fair value of hedging instruments, net of tax
Total comprehensive income
Stock-based compensation expense (Note 14)
Issuance of shares under share award plan, net of shares withheld for
employee taxes (Note 14)
Repurchases of common stock (Note 13)
Dividends (Note 5)
Distributions to noncontrolling interests, net
Balance, July 31, 2022
Comprehensive income:
Net income
Foreign currency translation adjustments
Change in estimated fair value of hedging instruments, net of tax
Total comprehensive income
Cumulative effect of adoption of ASU 2020-06 (Notes 2 & 6)
Stock-based compensation expense (Note 14)
Issuance of shares under share award plan, net of shares withheld for
employee taxes (Note 14)
Repurchases of common stock (Note 13)
Dividends (Note 5)
Estimated acquisition date fair value of noncontrolling interests
(Note 7)
Distributions to noncontrolling interests, net
Balance, July 31, 2023
$
468 $
— $ 1,124,433 $
(10,358) $ 873,710 $ (984,306) $
1,003,947 $
331,713 $
1,335,660
The accompanying Notes are an integral part of these Consolidated Financial Statements.
65
Vail Resorts, Inc.
Consolidated Statements of Cash Flows
(In thousands)
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization
Stock-based compensation expense
Deferred income taxes, net
Loss (gain) on disposal of fixed assets and other, net
Change in estimated fair value of contingent consideration
Other non-cash (income) expense, net
Changes in assets and liabilities, net of effects of acquisitions:
Trade receivables, net
Inventories, net
Accounts payable and accrued liabilities
Deferred revenue
Income taxes payable
Other assets and liabilities, net
Net cash provided by operating activities
Cash flows from investing activities:
Capital expenditures
Acquisition of businesses, net of cash acquired
Deposit returned (paid) for acquisition of business
Investments in short-term deposits
Maturity of short-term deposits
Cash received from disposal of fixed assets
Other investing activities, net
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from borrowings under Whistler Credit Agreement
Proceeds from borrowings under 0.0% Convertible Notes
Repayments of borrowings under Vail Holdings Credit Agreement
Repayments of borrowings under Whistler Credit Agreement
Repayment of EB-5 Development Notes
Employee taxes paid for share award exercises
Repurchases of common stock
Dividends paid
Other financing activities, net
Net cash (used in) provided by financing activities
Effect of exchange rate changes on cash, cash equivalents and restricted
cash
Net (decrease) increase in cash, cash equivalents and restricted
cash
Cash, cash equivalents and restricted cash:
Beginning of period
End of period
Cash paid for interest
Taxes paid, net
Non-cash investing activities:
Accrued capital expenditures
Year Ended July 31,
2023
2022
2021
$
285,103 $
368,337 $
124,457
268,501
25,409
24,065
9,070
49,836
(4,687)
4,248
(23,418)
(7,509)
60,268
(32,270)
(19,053)
639,563
(314,912)
(38,567)
114,506
(86,756)
37,978
5,674
8,910
(273,167)
—
—
(62,500)
(11,389)
—
(5,486)
(500,000)
(314,350)
(21,983)
(915,708)
252,391
24,885
(9,390)
(43,992)
20,280
3,510
(39,010)
(28,048)
41,078
48,973
81,307
(9,822)
710,499
(192,817)
(116,337)
(114,414)
—
—
66,264
9,387
(347,917)
—
—
(62,500)
(32,633)
(51,500)
(37,300)
(75,006)
(225,786)
(8,411)
(493,136)
252,585
24,395
(16,136)
5,373
14,402
(7,231)
(237,188)
22,781
118,979
199,410
11,850
11,573
525,250
(115,097)
—
—
—
—
9,705
2,063
(103,329)
27,775
575,000
(62,500)
(45,657)
—
(39,090)
—
—
(20,866)
434,662
(3,702)
(1,913)
(95)
(553,014)
(132,467)
856,488
$
$
$
$
$
1,126,107 $
573,093 $
140,599 $
94,342 $
1,258,574 $
1,126,107 $
114,074 $
19,692 $
402,086
1,258,574
125,667
5,011
23,210 $
30,556 $
5,158
The accompanying Notes are an integral part of these Consolidated Financial Statements.
66
1.
Organization and Business
Notes to Consolidated Financial Statements
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 reportable 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,
(collectively, “Resorts”):
*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. Several of the resorts
located in the United States (“U.S.”) operate primarily on federal land under the terms of Special Use Permits granted by the
U.S. Department of Agriculture Forest Service. The operations of Whistler Blackcomb are conducted on land owned by the
government of the Province of British Columbia, Canada within the traditional territory of the Squamish and Lil’wat Nations.
The operations of the Company’s Australian ski areas are conducted pursuant to long-term leases and licenses on land owned
by the governments of New South Wales and Victoria, Australia. A portion of the operations of Andermatt-Sedrun are
conducted on land owned by the Swiss Confederation, for which operations are conducted under leasehold agreements and
pursuant to a personal easement on land owned by the municipality of Tujetsch. Okemo, Mount Sunapee and Stowe operate on
land leased from the respective states in which the resorts are located and on land owned by the Company.
In the Lodging segment, the Company owns and/or manages a collection of luxury hotels and condominiums under its
RockResorts brand; 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.
The Company’s Real Estate segment primarily 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, and typically experience their peak operating seasons primarily from mid-December through mid-April in North
67
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
Principles of Consolidation — The accompanying Consolidated Financial Statements include the accounts of the Company and
its consolidated subsidiaries for which the Company has a controlling financial interest. Investments in which the Company
does not have a controlling financial interest, but has significant influence, are accounted for under the equity method. All
significant intercompany transactions have been eliminated in consolidation.
Cash and Cash Equivalents — The Company considers all highly liquid investments with maturities of three months or less at
the date of purchase to be cash equivalents.
Restricted Cash — The Company considers cash to be restricted when withdrawal or general use is legally restricted.
Accounts Receivable — The Company records trade accounts receivable in the normal course of business related to the sale of
products or services. The allowance for doubtful accounts is based on a specific reserve analysis and on a percentage of
accounts receivable and takes into consideration such factors as historical write-offs, the economic climate and other factors
that could affect collectability. Write-offs are evaluated on a case by case basis.
Inventories — The Company’s inventories consist primarily of purchased retail goods, food and beverage items and spare parts.
Inventories are stated at the lower of cost or net realizable value, determined using primarily an average weighted cost method.
The Company records a reserve for estimated shrinkage and obsolete or unusable inventory.
Property, Plant and Equipment — Property, plant and equipment is carried at cost net of accumulated depreciation. Repairs and
maintenance are expensed as incurred. Expenditures that improve the functionality of the related asset or extend the useful life
are capitalized. When property, plant and equipment is retired or otherwise disposed of, the related gain or loss is included in
income from operations. Leasehold improvements are amortized on the straight-line method over the shorter of the remaining
lease term or estimated useful life of the asset. Depreciation is calculated on the straight-line method, including property, plant
and equipment under finance leases, generally based on the following useful lives:
Land improvements
Buildings and building improvements
Machinery and equipment
Furniture and fixtures
Software
Vehicles
Estimated Life
in Years
10-35
7-30
2-30
3-10
3
3-10
Real Estate Held for Sale or Investment — The Company capitalizes as real estate held for sale or investment the original land
acquisition cost, direct construction and development costs, property taxes and interest paid related to real estate under
development and other related costs. Sales and marketing expenses are charged against income in the period incurred.
Deferred Financing Costs — Certain costs incurred with the issuance of debt and debt securities are capitalized and included as
a reduction in the net carrying value of long-term debt, net of accumulated amortization, with the exception of costs incurred
related to line-of-credit arrangements, which are included in deferred charges and other assets, net of accumulated amortization.
Amortization of such deferred financing costs are recorded to interest expense, net on the Company’s Consolidated Statements
of Operations over the respective term of the applicable debt instruments. When debt is extinguished prior to its maturity date,
the amortization of the remaining unamortized deferred financing costs, or pro-rata portion thereof, is charged to loss on
extinguishment of debt.
Goodwill and Intangible Assets — The Company has classified as goodwill the cost in excess of estimated fair value of the net
assets of businesses acquired in purchase transactions. The Company’s major intangible asset classes are trademarks, water
rights, customer lists, property management contracts and Forest Service permits. Goodwill and various indefinite-lived
intangible assets, including certain trademarks, water rights and certain property management contracts, are not amortized but
are subject to at least annual impairment testing. The Company tests these non-amortizing assets annually (or more often, if
68
necessary) for impairment as of May 1. Amortizable intangible assets are amortized over the shorter of their contractual terms
or estimated useful lives.
For the testing of goodwill and other indefinite-lived intangible assets for impairment, the Company may perform a qualitative
analysis to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset
exceeds the carrying amount, which includes an evaluation as to whether there have been significant changes to macro-
economic factors related to the reporting unit or intangible asset that could materially impact fair value. If it is determined,
based on qualitative factors, that the fair value of the reporting unit or indefinite-lived intangible asset is more likely than not
less than carrying amount, or if significant changes to macro-economic factors related to the reporting unit or intangible asset
have occurred that could materially impact estimated fair values since the previous quantitative analysis was performed, a
quantitative impairment test would be required, in which the Company would determine the estimated fair value of its reporting
units using discounted cash flow analyses and determine the estimated fair value of its indefinite-lived intangible assets using
an income approach. The quantitative test for impairment consists of a comparison of the estimated fair value of the assets with
their respective net carrying values. If the net carrying amount of the assets exceed their respective estimated fair values, an
impairment loss would be recognized for indefinite-lived intangibles, including goodwill, in an amount equal to that excess. If
the net carrying amount of the assets does not exceed their respective estimated fair values, no impairment loss is recognized.
The Company determined that there were no impairments of goodwill or definite and indefinite-lived assets for the years ended
July 31, 2023, 2022 and 2021.
Long-Lived Assets — The Company evaluates potential impairment of long-lived assets and long-lived assets to be disposed of
whenever events or changes in circumstances indicate that the net carrying amount of an asset group may not be fully
recoverable. If the sum of the expected cash flows, on an undiscounted basis, is less than the net carrying amount of the asset
group, an impairment loss is recognized in the amount by which the net carrying amount of the asset group exceeds its
estimated fair value. The Company determined that there were no impairments of long-lived assets for the years ended July 31,
2023, 2022 and 2021.
Revenue Recognition — The Company’s significant accounting policies with regard to revenue recognition are discussed in
Note 3, Revenues.
Real Estate Cost of Sales — Costs of real estate transactions include direct project costs, common cost allocations (primarily
determined on relative sales value) and sales commission expense. The Company utilizes the relative sales value method to
determine cost of sales for condominium units sold within a project when specific identification of costs cannot be reasonably
determined.
Foreign Currency Translation — The functional currency of the Company’s entities operating outside of the United States is
the principal currency of the economic environment in which the entity primarily generates and expends cash, which is
generally the local currency. The assets and liabilities of these foreign operations are translated at the exchange rate in effect as
of the balance sheet dates. Income and expense items are translated using the weighted average exchange rate for the period.
Translation adjustments from currency exchange, including intercompany transactions of a long-term nature, are recorded in
accumulated other comprehensive (loss) income as a separate component of stockholders’ equity. Intercompany transactions
that are not of a long-term nature are reported as gains and losses within “segment operating expense” and for intercompany
loans within “foreign currency (loss) gain on intercompany loans” on the Company’s Consolidated Statements of Operations.
Reserve Estimates — The Company uses estimates to record reserves for certain liabilities, including medical claims, workers’
compensation claims, third-party loss contingencies and property taxes, among other items. The Company estimates the
probable costs related to these liabilities that will be incurred and records that amount as a liability in its Consolidated Financial
Statements. Additionally, the Company records, as applicable, receivables related to insurance recoveries for loss contingencies
if deemed probable of recovery. These estimates are reviewed and adjusted as the facts and circumstances change. The
Company records legal costs related to defending claims as incurred.
Advertising Costs — Advertising costs are expensed at the time such advertising commences. Advertising expense for the years
ended July 31, 2023, 2022 and 2021 was $47.2 million, $47.7 million and $38.6 million, respectively, and was recorded within
Mountain and Lodging operating expense on the Company’s Consolidated Statement of Operations.
Income Taxes — Income tax expense includes U.S. tax (federal and state) and foreign income taxes. The Company’s provision
for income taxes is based on pre-tax income, changes in deferred tax assets and liabilities and changes in estimates with regard
to uncertain tax positions. Deferred tax assets and liabilities are recorded for the estimated future tax effects of temporary
differences between the tax bases of assets and liabilities and amounts reported in the accompanying Consolidated Balance
Sheets and for operating loss and tax credit carrybacks or carryforwards. The change in deferred tax assets and liabilities for the
69
period measures the deferred tax provision or benefit for the period. Effects of changes in enacted tax laws on deferred tax
assets and liabilities are reflected as adjustments to the tax provision or benefit in the period of enactment. The Company’s
deferred tax assets have been reduced by a valuation allowance to the extent it is deemed to be more likely than not that some or
all of the deferred tax assets will not be realized. The Company recognizes liabilities for uncertain tax positions based on a two-
step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence
indicates that it is “more-likely-than-not” to be sustained, on audit, including resolution of related appeals or litigation
processes, if any. The second step requires the Company to estimate and measure the largest tax benefit that is cumulatively
greater than 50% likely of being realized upon ultimate settlement. Interest and penalties accrued in connection with uncertain
tax positions are recognized as a component of income tax expense. See Note 10, Income Taxes, for more information.
Fair Value of Financial Instruments — The estimated fair values of the 6.25% Notes and the 0.0% Convertible Notes (each as
defined in Note 6, 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 6, Long-Term Debt) has been estimated using an analysis 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
July 31, 2023 are presented below (in thousands):
6.25% Notes
0.0% Convertible Notes
EPR Secured Notes
July 31, 2023
Carrying Value
Estimated Fair Value
$
$
$
600,000 $
575,000 $
132,503 $
602,544
510,134
174,854
The recorded amount of the Company’s NRP Loan (as defined in Note 6, Long-Term Debt), which was assumed by the
Company during the year ended July 31, 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 7, Acquisitions)
and there has been no significant change in underlying rates. The recorded amounts for all current asset, current liability and
other financial liability balances not included in the above table approximate fair value due to their short-term nature or variable
nature of associated interest rates.
Stock-Based Compensation — Stock-based compensation expense is measured at the grant date based upon the estimated fair
value of the award and is recognized as expense over the applicable vesting period of the award generally using the straight-line
method (see Note 14, Stock Compensation Plan, for more information), less the amount of forfeited awards which are recorded
as they occur. The following table shows total net stock-based compensation expense for the years ended July 31, 2023, 2022
and 2021 included on the accompanying Consolidated Statements of Operations (in thousands):
Mountain stock-based compensation expense
Lodging stock-based compensation expense
Real Estate stock-based compensation expense
Pre-tax stock-based compensation expense
Less: benefit from income taxes
Net stock-based compensation expense
Year Ended July 31,
2023
2022
2021
$
$
21,242 $
3,972
195
25,409
5,951
19,458 $
20,892 $
3,737
256
24,885
6,189
18,696 $
20,311
3,783
301
24,395
5,871
18,524
Concentration of Credit Risk — The Company’s financial instruments that are exposed to concentrations of credit risk consist
primarily of cash and cash equivalents and restricted cash. The Company places its cash and temporary cash investments in
accounts with high-quality credit institutions. The Company does not enter into financial instruments for trading or speculative
purposes. Concentration of credit risk with respect to accounts and notes receivables is limited due to the wide variety of
customers and markets in which the Company conducts business, as well as their dispersion across many geographical areas.
The Company performs ongoing credit evaluations of its customers and generally does not require collateral, but does require
advance deposits on certain transactions.
Accounting for Hedging Instruments — From time to time, the Company enters into interest rate swaps to hedge the variability
in cash flows associated with variable-rate borrowings by converting the floating interest rate to a fixed interest rate (the
“Interest Rate Swaps”). As of July 31, 2023, the Company hedged the future cash flows associated with $400.0 million of the
principal amount outstanding of its Vail Holdings Credit Agreement (as defined in Note 6, Long-Term Debt), which were
70
designated as cash flow hedges. The accounting for changes in fair value of hedging instruments depends on the effectiveness
of the hedge. In order to qualify for hedge accounting, the underlying hedged item must expose the Company to risks associated
with market fluctuations and the financial instrument used must reduce the Company’s exposure to market fluctuation
throughout the hedge period. Changes in estimated fair value of the Interest Rate Swaps are recorded within change in
estimated fair value of hedging instruments, net of tax, on the Company’s Consolidated Statements of Comprehensive Income,
and such change was recorded as a gain of $3.7 million, $18.9 million and $12.8 million during the years ended July 31, 2023,
2022 and 2021, respectively. Amounts are reclassified into interest expense, net from other comprehensive income during the
period in which the hedged item affects earnings. During the years ended July 31, 2023, 2022 and 2021, gains (losses) of
$11.0 million, $(4.3) million and $(5.4) million, respectively, were reclassified into interest expense, net from other
comprehensive income. See Note 9, Fair Value Measurements, for more information.
Leases — The Company determines if an arrangement is or contains a lease at inception or modification of the arrangement. An
arrangement is or contains a lease if there is one or more assets identified and the right to control the use of any identified asset
is conveyed to the Company for a period of time in exchange for consideration. Control over the use of an identified asset
means the lessee has both the right to obtain substantially all of the economic benefits from the use of the asset and the right to
direct the use of the asset. Generally, the Company classifies a lease as a finance lease if the terms of the agreement effectively
transfer control of the underlying asset; otherwise, it is classified as an operating lease. For contracts that contain lease and non-
lease components, the Company accounts for these components separately. For leases with terms greater than twelve months,
the associated lease right-of-use (“ROU”) assets and lease liabilities are recognized at the estimated present value of future
lease payments over the lease term at commencement date. The Company’s leases do not provide a readily determinable
implicit rate; therefore, the Company uses an estimated incremental borrowing rate to discount the future minimum lease
payments. For leases containing fixed rental escalation clauses, the escalators are factored into the determination of future
minimum lease payments. The Company includes options to extend a lease when it is reasonably certain that such options will
be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. See Note 4,
Leases, for more information.
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America (“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 period. Actual results could differ from those estimates.
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
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.
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 6, Long-Term
Debt), which are designated as cash flow hedges. During the year ended July 31, 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 the Secured Overnight
Financing Rate (“SOFR”). See Note 6, 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.
71
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 ended 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 6, Long-Term Debt) to long-term debt, net, as the convertible option on the 0.0% Convertible Notes
does not qualify as a derivative 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.
The impact of adoption of ASU 2020-06 on the Company’s Consolidated Balance Sheet as of the adoption date was as follows
(in thousands):
Balance Sheet
Liabilities
Long-term debt, net
Deferred income taxes, net
Stockholders’ equity
Additional paid-in capital
Retained earnings
Balances without the
Adoption of ASU 2020-06
Adjustments
Balances with the adoption of
ASU 2020-06
As of August 1, 2022
$
$
$
$
2,670,300 $
268,464 $
1,184,577 $
895,889 $
74,822 $
(18,779) $
(80,066) $
24,023 $
2,745,122
249,685
1,104,511
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.
3.
Revenues
Revenue Recognition
The following provides information about the Company’s composition of revenue recognized from contracts with customers
and other revenues, the performance obligations under those contracts, and the significant judgments made in accounting for
those contracts:
• Mountain revenue is derived from a wide variety of sources, including, among other things: lift revenue, which
includes sales of lift tickets and pass products; ski school revenue, which includes the revenue derived from ski school
operations; dining revenue, which includes both casual and fine dining on-mountain operations; retail sales and
equipment rentals; and other on-mountain revenue, which includes private ski club revenue (which includes both club
dues and amortization of initiation fees), marketing and internet advertising revenue, municipal services and lodging
and transportation operations at the Company’s Australian ski areas. The Company also includes other sources of
revenue, primarily related to commercial leasing and employee housing leasing arrangements, within other mountain
revenue. Revenue is recognized over time as performance obligations are satisfied as control of the good or service
72
(e.g. access to ski areas, provision of ski school services, etc.) is transferred to the customer, except for the Company’s
retail sales and dining operations revenues which are recognized at a point in time when performance obligations are
satisfied by transferring control of the underlying goods to the customer. The Company records deferred revenue
primarily related to the sale of pass products. Deferred revenue is generally recognized throughout the ski season as the
Company’s performance obligations are satisfied as control of the service (e.g. access to ski areas throughout the ski
season) is transferred to the customer. 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 utilized by the Company 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, 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 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.
Epic Coverage is included with the purchase of all pass products for no additional charge, and offers refunds if certain
personal or resort closure events occur before or during the ski season. The estimated amount of refunds reduce the
amount of pass product revenue recognized by the Company, and is remeasured at each reporting date.
Epic Mountain Rewards provides pass product holders a discount on ancillary purchases at the Company’s North
American owned and operated Resorts. Epic Mountain Rewards constitutes an option to purchase additional products
and services at a discount, and as a result, the Company allocates a portion of the pass product transaction price to
these other lines of business.
•
•
Lodging revenue is derived from a wide variety of sources, including, among other things: revenue from owned hotel
rooms and managed hotel rooms; revenue from hotel dining operations; transportation revenue which relates to the
Company’s Colorado resort ground transportation operations; and other lodging revenue which includes property
management services, managed properties other costs reimbursements, private golf club revenue (which includes both
club dues and amortization of initiation fees) and golf course fees. Lodging revenue also includes managed hotel
property payroll cost reimbursements related to payroll costs at managed properties where the Company is the
employer, which are reimbursed by the owner with no added margin. Therefore, these revenues and corresponding
expenses have no net effect on the Company’s operating income or net income. Other than revenue from dining
operations, lodging revenue is mostly recognized over time as performance obligations are satisfied as control of the
service (e.g. nightly hotel room access) is transferred to the customer.
Real estate revenue primarily relates to the sale of development land parcels. Real estate revenue is generally
recognized at a point in time when performance obligations have been satisfied, which is usually upon closing of the
sales transaction and in an amount that reflects the consideration to which the Company expects to be entitled.
For certain contracts that have an original term length of one year or less, the Company uses the practical expedient applicable
to such contracts and does not consider the time value of money. For contracts with an expected term in excess of one year, the
Company has considered the provisions of Topic 606 in determining whether contracts contain a financing component. Taxes
collected from customers and remitted to governmental authorities are generally excluded from revenue on the accompanying
Consolidated Statements of Operations.
73
Disaggregation of Revenues
The following table presents net revenues disaggregated by segment and major revenue type for the years ended July 31, 2023,
2022 and 2021 (in thousands):
Mountain net revenue:
Lift
Ski School
Dining
Retail/Rental
Other
Total Mountain net revenue
Lodging net revenue:
Owned hotel rooms
Managed condominium rooms
Dining
Transportation
Golf
Other
Payroll cost reimbursements
Total Lodging net revenue
Total Resort net revenue
Total Real Estate net revenue
Total net revenue
Year ended July 31,
2023
2022
2021
$
1,420,900 $
1,310,213 $
1,076,578
287,275
224,642
361,484
246,605
223,645
163,705
311,768
203,783
144,227
92,186
227,993
161,814
$
2,540,906 $
2,213,114 $
1,702,798
$
80,117 $
80,579 $
96,785
62,445
15,242
12,737
55,816
323,142
17,251
97,704
48,569
16,021
10,975
46,500
300,348
11,742
47,509
72,217
17,211
9,271
9,373
43,008
198,589
6,553
$
$
340,393 $
312,090 $
205,142
2,881,299 $
2,525,204 $
1,907,940
8,065
708
1,770
$
2,889,364 $
2,525,912 $
1,909,710
Arrangements with Multiple Performance Obligations
Several of the Company’s contracts with customers include multiple performance obligations, primarily related to bundled
services such as ski school packages, lodging packages and events (e.g. weddings and conferences). For such contracts, revenue
is allocated to each distinct and separate performance obligation based on its relative standalone selling price. The standalone
selling prices are generally based on observable prices charged to customers or estimated based on historical experience and
information.
Contract Balances
Contract liabilities are recorded primarily as deferred revenues when payments are received or due in advance of the
Company’s performance, including amounts which may be refundable. The deferred revenue balance is primarily related to
accounts receivable or cash payments recorded in advance of satisfying the Company’s performance obligations related to sales
of pass products prior to the start of the ski season, private club initiation fees and other related advance purchase products,
including advance purchase lift tickets, multiple-day lift tickets, ski school lessons, equipment rentals and lodging advance
deposits. Due to the seasonality of the Company’s operations, its largest deferred revenue balances occur during the North
American pass product selling window, which generally begins in the third quarter of its fiscal year. Deferred revenue balances
of a short-term nature were $572.6 million and $511.3 million as of July 31, 2023 and 2022, respectively. For the year ended
July 31, 2023, the Company recognized approximately $486.5 million of net revenue that was included in the deferred revenue
balance as of July 31, 2022. Deferred revenue balances of a long-term nature, comprised primarily of long-term private club
initiation fee revenue, were $109.7 million and $117.2 million as of July 31, 2023 and 2022, respectively. As of July 31, 2023,
the weighted average remaining period over which revenue for unsatisfied performance obligations on long-term private club
contracts will be recognized was approximately 15 years.
Contract assets are recorded as trade receivables when the right to consideration is unconditional. Trade receivable balances
were $381.1 million and $383.4 million as of July 31, 2023 and 2022, respectively. Payments from customers are based on
billing terms established in the contracts with customers, which vary by the type of customer, the location and the products or
74
services offered. The term between invoicing and when payment is due is not significant. For certain products or services and
customer types, contracts require payment before the products are delivered or services are provided to the customer.
Impairment losses related to contract assets are recognized through the Company’s allowance for doubtful accounts analysis.
Contract asset write-offs are evaluated on an individual basis.
Costs to Obtain Contracts with Customers
The Company expects that credit card fees and sales commissions paid in order to obtain season ski pass products contracts are
recoverable. Accordingly, the Company records these amounts as assets when they are paid prior to the start of the ski season.
As of July 31, 2023, $5.1 million of costs to obtain contracts with customers were recorded within other current assets on the
Company’s Consolidated Balance Sheet. Deferred credit card fees and sales commissions are amortized commensurate with the
recognition of pass product revenue. The Company recorded amortization of $25.2 million, $22.1 million and $17.8 million for
these costs during the years ended July 31, 2023, 2022 and 2021, respectively, which were recorded within Mountain and
Lodging operating expense on the accompanying Consolidated Statement of Operations.
Utilizing the practical expedient provided for under Topic 606, the Company has elected to expense credit card fees and sales
commissions related to non-pass products and services as incurred, as the amortization period is generally one year or less for
the time between customer purchase and utilization. These fees are recorded within Mountain and Lodging operating expense
on the Company’s Consolidated Statements of Operations.
4.
Leases
The Company’s operating leases consist primarily of commercial and retail space, office space, employee residential units,
vehicles and other equipment. The Company determines if an arrangement is or contains a lease at contract inception or
modification. The Company’s lease contracts generally range from 1 year to 60 years, with some lease contracts containing one
or more lease extension options, exercisable at the Company’s discretion. The Company generally does not include these lease
extension options in the initial lease term as it is not reasonably certain that it will exercise such options at contract inception. In
addition, certain lease arrangements contain fixed and variable lease payments. The variable lease payments are primarily
contingent rental payments based on: (i) a percentage of revenue related to the leased property; (ii) payments based on a
percentage of sales over contractual levels; or (iii) lease payments adjusted for changes in an index or market value. These
variable lease payments are typically recognized when the underlying event occurs and are included in operating expenses on
the Company’s Consolidated Statements of Operations in the same line item as the expense arising from the respective fixed
lease payments. The Company’s lease agreements may also include non-lease components, such as common area maintenance
and insurance, which are accounted for separately. Future lease payments that are contingent or represent non-lease components
are not included in the measurement of the operating lease liability. The Company’s lease agreements do not contain any
material residual value guarantees or restrictive covenants. Lease expense related to lease payments is recognized on a straight-
line basis over the term of the lease.
The Company’s leases do not provide a readily determinable implicit rate. As a result, the Company measures the lease liability
using an estimated incremental borrowing rate which is intended to reflect the rate of interest the Company would pay on a
collateralized basis to borrow an amount equal to the lease payments under similar terms. The Company applies the estimated
incremental borrowing rates at a portfolio level based on the economic environment associated with the lease.
The Company uses the long-lived assets impairment guidance to determine recognition and measurement of an ROU asset
impairment, if any. The Company monitors for events or changes in circumstances that require a reassessment.
75
The components of lease expense for the years ended July 31, 2023, 2022 and 2021 were as follows (in thousands):
Finance leases:
Amortization of the finance ROU assets
Interest on lease liabilities
Operating leases:
Operating lease expense
Short-term lease expense (1)
Variable lease expense
Year ended July 31,
2023
2022
2021
$
$
$
$
$
11,701 $
40,098 $
45,385 $
22,759 $
3,204 $
9,011 $
35,881 $
43,295 $
15,614 $
2,309 $
9,753
34,612
43,418
13,638
1,660
(1) Short-term lease expense is attributable to leases with terms of 12 months or less which are not included within the
Company’s Consolidated Balance Sheets.
The following table presents the supplemental cash flow information associated with the Company’s leasing activities for the
years ended July 31, 2023, 2022 and 2021 (in thousands):
Cash flow supplemental information:
Operating cash outflows for operating and short-term
leases
Operating cash outflows for lease- and non-lease
components of finance leases
Non-cash supplemental information:
Operating ROU assets obtained in exchange for
operating lease obligations
Finance ROU assets obtained in exchange for finance
lease obligations
$
$
$
$
Year ended July 31,
2023
2022
2021
65,216 $
59,818 $
54,788 $
37,573 $
56,942
31,429
30,342 $
23,190 $
12,615
39,114 $
— $
—
Weighted-average remaining lease terms and discount rates as of July 31, 2023 and 2022 are as follows:
Weighted-average remaining lease term (in years)
Operating leases
Finance leases
Weighted-average discount rate
Operating leases
Finance leases
July 31, 2023
July 31, 2022
9.2
37.6
4.9 %
9.9 %
9.8
40.9
4.6 %
10.0 %
76
Future fixed lease payments for operating and finance leases as of July 31, 2023 reflected by fiscal year (August 1 through July
31) are as follows (in thousands):
2024
2025
2026
2027
2028
Thereafter
Total future minimum lease payments
Less amount representing interest
Total lease liabilities
Operating Leases
Finance Leases
$
49,012 $
45,707
41,424
26,573
18,454
86,149
267,319
(62,089)
205,230 $
$
35,000
35,506
35,824
36,025
35,991
1,724,517
1,902,863
(1,500,805)
402,058
The current portion of operating lease liabilities of approximately $36.9 million and $34.2 million as of July 31, 2023 and 2022,
respectively, is recorded within accounts payables and accrued liabilities in the accompanying Consolidated Balance Sheets.
Finance lease liabilities are recorded within long-term debt, net in the accompanying Consolidated Balance Sheets.
The Canyons finance lease obligation was $363.4 million and $357.6 million as of July 31, 2023 and 2022, respectively, which
represents the estimated annual fixed lease payments for the remaining initial 50 year term of the lease assuming annual
increases at the floor of 2% and discounted using an interest rate of 10%. As of July 31, 2023 and 2022, respectively, the
Company has recorded $90.2 million and $99.0 million of net finance lease ROU assets in connection with the Canyons lease,
net of $93.4 million and $84.6 million of accumulated amortization, which is included within property, plant and equipment,
net in the Company’s Consolidated Balance Sheets.
During the year ended July 31, 2023, the Company entered into new finance lease agreements for employee housing units at
Whistler Blackcomb, for which the finance lease obligation was $29.5 million as of July 31, 2023, which represents the
minimum lease payments for the remaining initial 20 year term of the lease, net of amounts representing interest, discounted
using an interest rate of 6.95%. As of July 31, 2023, the Company has recorded $27.5 million of net finance lease ROU assets
in connection with these leases, net of $1.1 million of accumulated amortization, which is included within property, plant and
equipment, net in the Company’s Consolidated Balance Sheet.
5.
Net Income per Common Share
Earnings per Share
Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income attributable to Vail Resorts
stockholders by the weighted-average shares outstanding during the period. Diluted EPS reflects the potential dilution that
could occur if securities or other contracts to issue common stock were exercised, resulting in the issuance of shares of common
stock that would then share in the earnings of Vail Resorts.
In connection with the Company’s acquisition of Whistler Blackcomb in October 2016, the Company issued consideration in
the form of shares of Vail Resorts common stock (the “Vail Shares”), redeemable preferred shares of the Company’s wholly-
owned Canadian subsidiary Whistler Blackcomb Holdings Inc. (“Exchangeco”) or cash (or a combination thereof). Whistler
Blackcomb shareholders elected to receive 3,327,719 Vail Shares and 418,095 shares of Exchangeco (the “Exchangeco
Shares”). The Exchangeco Shares could be redeemed for Vail Shares at any time until October 2023 or until the Company
elected to convert any remaining Exchangeco Shares to Vail Shares, which the Company had the ability to do once total
Exchangeco Shares outstanding fell below 20,904 shares (or 5% of the total Exchangeco Shares originally issued). In July
2022, the number of outstanding Exchangeco Shares fell below such threshold and on August 25, 2022, the Company elected to
redeem all outstanding Exchangeco Shares, effective September 26, 2022. As of July 31, 2023, all Exchangeco Shares have
been exchanged for Vail Shares. Both Vail Shares and Exchangeco Shares have a par value of $0.01 per share, and Exchangeco
Shares, while they were outstanding, were substantially the economic equivalent of the Vail Shares. The Company’s calculation
of weighted-average shares outstanding includes the Exchangeco Shares.
77
Presented below is basic and diluted EPS for the years ended July 31, 2023, 2022 and 2021 (in thousands, except per share
amounts):
Net income per share:
Net income attributable to Vail Resorts
Weighted-average Vail Shares outstanding
Weighted-average Exchangeco shares outstanding
Total Weighted-average shares outstanding
Effect of dilutive securities
Total shares
Year Ended July 31,
2023
2022
2021
Basic
Diluted
Basic
Diluted
Basic
Diluted
$ 268,148 $ 268,148 $ 347,923 $ 347,923 $ 127,850 $ 127,850
39,654
39,654
40,433
40,433
40,266
40,266
—
—
32
32
35
35
39,654
39,654
40,465
40,465
40,301
40,301
—
106
—
222
—
527
39,654
39,760
40,465
40,687
40,301
40,828
Net income per share attributable to Vail Resorts, Inc. $
6.76 $
6.74 $
8.60 $
8.55 $
3.17 $
3.13
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 that were excluded from the calculation of
diluted EPS because the effect of their inclusion would have been anti-dilutive totaled approximately 22,000, 6,000 and 2,000
for the years ended July 31, 2023, 2022 and 2021, respectively.
In December 2020, the Company completed an offering of $575.0 million in aggregate principal amount of 0.0% Convertible
Notes (as defined in Note 6, Long-Term Debt). The Company is required to settle the principal amount of the 0.0% Convertible
Notes in cash and has the option to settle the conversion spread in cash or shares. The Company uses the if-converted method to
calculate the impact of convertible instruments on diluted EPS when the instruments may be settled in cash or shares. If the
conversion value of the 0.0% Convertible Notes exceeds their conversion price, then the Company will calculate its diluted EPS
as if all the notes were converted into common stock at the beginning of the period. However, if reflecting the 0.0% Convertible
Notes in diluted EPS in this manner is anti-dilutive, or if the conversion value of the notes does not exceed their conversion
price for a reporting period, then the shares underlying the notes will not be reflected in the Company’s calculation of diluted
EPS. For the years ended July 31, 2023, 2022 and 2021, the price of Vail Shares did not exceed the conversion price and
therefore there was no impact to diluted EPS during those periods.
Dividends
During the years ended July 31, 2023 and 2022, the Company paid cash dividends of $7.94 per share and $5.58 per share,
respectively ($314.4 million and $225.8 million, respectively, including cash dividends paid to Exchangeco shareholders). The
Company did not pay cash dividends during the year ended July 31, 2021. On September 27, 2023, the Company’s Board of
Directors approved a cash dividend of $2.06 per share payable on October 26, 2023 to stockholders of record as of October 10,
2023.
78
6.
Long-Term Debt
Long-term debt as of July 31, 2023 and 2022 is summarized as follows (in thousands):
Vail Holdings Credit Agreement revolver (a)
Vail Holdings Credit Agreement term loan (a)
6.25% Notes (b)
0.0% Convertible Notes (c)
Whistler Credit Agreement revolver (d)
EPR Secured Notes (e)
Employee housing bonds (f)
Canyons obligation (g)
NRP Loan (h)
Whistler Blackcomb employee housing leases (i)
Other (j)
Total debt
Maturity
2026
2026
2025
2026
2028
2034-2036
2027-2039
2063
2036
2042
2023-2036
Less: Unamortized premiums, discounts and debt issuance costs (k)
Less: Current maturities (l)
Long-term debt, net
$
July 31,
2023
July 31,
2022
$
— $
—
1,015,625
1,078,125
600,000
575,000
—
114,162
52,575
363,386
40,399
29,491
35,011
2,825,649
5,814
69,160
2,750,675 $
600,000
575,000
11,717
114,162
52,575
357,607
—
—
17,860
2,807,046
72,997
63,749
2,670,300
(a) On August 31, 2022, Vail Holdings, Inc. (“VHI”), which is a wholly-owned subsidiary of the Company, along with
other certain subsidiaries of the Company, as guarantors, Bank of America, N.A., as administrative agent, and certain
lenders entered into the Fifth Amendment (the “Fifth Amendment”) to the Eighth Amended and Restated Credit Agreement
(the “Vail Holdings Credit Agreement”), which extended the maturity date to September 23, 2026. Additionally, the Fifth
Amendment contains customary LIBOR replacement language, including, but not limited to, the use of rates based on
SOFR. SOFR is a broad measure of the cost of borrowing cash in the overnight U.S. Treasury repo market and is
administered by the Federal Reserve Bank of New York. The Fifth Amendment modified the calculation of interest under
the Vail Holdings Credit Agreement from being calculated based on LIBOR to being calculated based on SOFR. No other
material terms of the Vail Holdings Credit Agreement were amended.
As of July 31, 2023, the Vail Holdings Credit Agreement consists of a $500.0 million revolving credit facility and a
$1.0 billion outstanding term loan facility. The term loan facility is subject to quarterly amortization of principal of
approximately $15.6 million, in equal installments, for a total of 5% of principal payable in each year and the final payment
of all amounts outstanding, plus accrued and unpaid interest due in upon maturity. The proceeds of the loans made under
the Vail Holdings Credit Agreement may be used to fund the Company’s working capital needs, capital expenditures,
acquisitions, investments and other general corporate purposes, including the issuance of letters of credit. Borrowings
under the Vail Holdings Credit Agreement, including the term loan facility, bear interest annually at SOFR plus a spread of
1.60% as of July 31, 2023 (6.92% as of July 31, 2023). Interest rate margins may fluctuate based upon the ratio of the
Company’s Net Funded Debt to Adjusted EBITDA on a trailing four-quarter basis. The Vail Holdings Credit Agreement
also includes a quarterly unused commitment fee, which is equal to a percentage determined by the Net Funded Debt to
Adjusted EBITDA ratio, as each such term is defined in the Vail Holdings Credit Agreement, multiplied by the daily
amount by which the Vail Holdings Credit Agreement commitment exceeds the total of outstanding loans and outstanding
letters of credit (0.30% as of July 31, 2023). The Company is party to various interest rate swap agreements which hedge
the cash flows associated with the SOFR-based variable interest rate component of $400.0 million in principal amount of
its Vail Holdings Credit Agreement until September 23, 2024, at an effective rate of 1.38%.
(b) On May 4, 2020, the Company completed its offering of $600 million aggregate principal amount of 6.25% senior
notes due 2025 at par (the “6.25% Notes”). The Company pays interest on the 6.25% Notes on May 15 and November 15
of each year, which commenced on November 15, 2020. The 6.25% Notes will mature on May 15, 2025. The 6.25% Notes
are redeemable, in whole or in part, at any time on or after May 15, 2022 at the redemption prices specified in an indenture
dated as of May 4, 2020 (the “6.25% Indenture”) plus accrued and unpaid interest. The 6.25% Notes are senior unsecured
obligations of the Company, are guaranteed by certain of the Company’s domestic subsidiaries, and rank equally in right of
79
payment with existing and future senior indebtedness of the Company and the guarantors (as defined in the 6.25%
Indenture).
The 6.25% Indenture requires that, upon the occurrence of a Change of Control (as defined in the 6.25% Indenture), the
Company shall offer to purchase all of the outstanding 6.25% Notes at a purchase price in cash equal to 101% of the
outstanding principal amount of the 6.25% Notes, plus accrued and unpaid interest. If the Company or certain of its
subsidiaries dispose of assets, under certain circumstances, the Company will be required to either invest the net cash
proceeds from such assets sales in its business within a specified period of time, repay certain senior secured debt or debt of
its non-guarantor subsidiaries, or make an offer to purchase a principal amount of the 6.25% Notes equal to the excess net
cash proceeds at a purchase price of 100% of their principal amount, plus accrued and unpaid interest.
The 6.25% Indenture contains covenants that, among other things, restrict the ability of the Company and the guarantors to
incur liens on assets; merge or consolidate with another company or sell, assign, transfer, lease, convey or otherwise
dispose of all or substantially all of the Company’s assets or engage in Sale and Leaseback Transactions (as defined in the
6.25% Indenture). The 6.25% Indenture does not contain any financial maintenance covenants. Certain of the covenants
will not apply to the 6.25% Notes so long as the 6.25% Notes have investment grade ratings from two specified rating
agencies and no event of default has occurred and is continuing under the 6.25% Indenture. The 6.25% Indenture includes
customary events of default, including failure to make payment, failure to comply with the obligations set forth in the
6.25% Indenture, certain defaults on certain other indebtedness, certain events of bankruptcy, insolvency or reorganization,
and invalidity of the guarantees of the 6.25% Notes issued pursuant to the 6.25% Indenture.
(c) On December 18, 2020, the Company completed an offering of $575.0 million in aggregate principal amount of 0.0%
Convertible Notes due 2026 in a private placement conducted pursuant to Rule 144A of the Securities Act of 1933, as
amended (the “0.0% Convertible Notes”). The 0.0% Convertible Notes were issued under an indenture dated December 18,
2020 (the “Convertible Indenture”) between the Company and U.S. Bank National Association, as Trustee. The 0.0%
Convertible Notes do not bear regular interest and the principal amount does not accrete. The 0.0% Convertible Notes
mature on January 1, 2026, unless earlier repurchased, redeemed or converted.
The 0.0% Convertible Notes are general senior unsecured obligations of the Company. The 0.0% Convertible Notes rank
senior in right of payment to any future debt that is expressly subordinated, equal in right of payment with the Company’s
existing and future liabilities that are not so subordinated, and are subordinated to all of the Company’s existing and future
secured debt to the extent of the value of the assets securing such debt. The 0.0% Convertible Notes will also be
structurally subordinated to all of the existing and future liabilities and obligations of the Company’s subsidiaries,
including such subsidiaries’ guarantees of the 6.25% Notes.
The initial conversion rate was 2.4560 shares per $1,000 principal amount of notes, which represents an initial conversion
price of approximately $407.17 per share, and is subject to adjustment upon the occurrence of certain specified events as
described in the Convertible Indenture, including the payment of cash dividends. As of July 31, 2023, the conversion rate
of the 0.0% Convertible Notes, adjusted for cash dividends paid since the issuance date, was 2.5972 shares per $1,000
principal amount of notes (the “Conversion Rate”), which represents a conversion price of $385.03 per share (the
“Conversion Price”). The principal amount of the 0.0% Convertible Notes is required to be settled in cash. The Company
will settle the in the money component of conversions by paying cash, delivering shares of its common stock, or a
combination of the two, at its option.
Holders may convert their notes, at their option, only under the following circumstances:
•
•
•
•
•
during any calendar quarter commencing after the calendar quarter ending on March 31, 2021 if the last reported
sale price per share of our common stock exceeds 130% of the Conversion Price for each of at least 20 trading
days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading
day of the immediately preceding calendar quarter;
during the five consecutive business days immediately after any 10 consecutive trading day period (such 10
consecutive trading day period, the “Measurement Period”) in which the trading price per $1,000 principal amount
of notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale
price per share of our common stock on such trading day and the Conversion Rate on such trading day;
upon the occurrence of certain corporate events or distributions on our common stock, as described in the
Convertible Indenture;
if the Company calls the 0.0% Convertible Notes for redemption; or
at any time from, and including, July 1, 2025 until the close of business on the scheduled trading day immediately
before the maturity date.
80
The 0.0% Convertible Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to
time, on or after January 1, 2024 and on or before the 25th scheduled trading day immediately before the maturity date, at a
cash redemption price equal to the principal amount of the notes to be redeemed, plus accrued and unpaid special and
additional interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of the
Company’s common stock exceeds 130% of the Conversion Price for a specified period of time. If the Company elects to
redeem less than all of the 0.0% Convertible Notes, at least $50.0 million aggregate principal amount of notes must be
outstanding and not subject to redemption as of the relevant redemption notice date. Calling any 0.0% Convertible Notes
for redemption will constitute a make-whole fundamental change with respect to such notes, in which case the Conversion
Rate applicable to the conversion of such notes will be increased in certain circumstances if such notes are converted after
they are called for redemption.
In addition, upon the occurrence of a fundamental change (as defined in the Convertible Indenture), holders of the 0.0%
Convertible Notes may require the Company to repurchase all or a portion of their notes at a cash repurchase price equal to
the principal amount of the notes to be repurchased, plus any accrued and unpaid special and additional interest, if any, to,
but excluding, the applicable repurchase date. If certain fundamental changes referred to as make-whole fundamental
changes (as defined in the Convertible Indenture) occur, the Conversion Rate for the 0.0% Convertible Notes may be
increased for a specified period of time.
The Convertible Indenture includes customary events of default, including failure to make payment, failure to comply with
the obligations set forth in the Convertible Indenture, certain defaults on certain other indebtedness, and certain events of
bankruptcy, insolvency or reorganization. The Company may elect, at its option, that the sole remedy for an event of
default relating to certain failures by the Company to comply with certain reporting covenants in the Convertible Indenture
will consist exclusively of the right of the holders of the 0.0% Convertible Notes to receive additional interest on the notes
for up to 360 days following such failure.
Prior to the adoption of ASU 2020-06 on August 1, 2022, the Company separately accounted for the liability and equity
components of the 0.0% Convertible Notes. The liability component at issuance was recognized at estimated fair value
based on the fair value of a similar debt instrument that does not have an embedded convertible feature, and was
determined to be $465.3 million and was recorded within long-term debt, net on the Company’s Consolidated Balance
Sheet. The excess of the principal amount of the 0.0% Convertible Notes over the initial fair value of the liability
component represented a debt discount of $109.7 million and was being amortized to interest expense, net over the term
through July 31, 2022 (prior to the adoption of ASU 2020-06). The balance of the unamortized debt discount was
$76.7 million as of July 31, 2022. The carrying amount of the equity component representing the conversion option was
approximately $109.7 million and was determined by deducting the initial fair value of the liability component from the
total proceeds of the 0.0% Convertible Notes of $575.0 million. Additionally, the Company recorded deferred tax liabilities
of approximately $27.5 million related to the equity component of the 0.0% Convertible Notes on the date of issuance,
which decreased the recorded value of the equity component. As of July 31, 2022, the equity component was recorded
within additional paid-in-capital on the Company’s Consolidated Balance Sheet. The Company adopted ASU 2020-06 on
August 1, 2022 using the modified retrospective method, and as a result, the Company reclassified the equity component of
its 0.0% Convertible Notes to long-term debt, net, and no longer records non-cash interest expense related to the
amortization of the debt discount effective as of the adoption date. Refer to Note 2, Summary of Significant Accounting
Policies, for further information on ASU 2020-06.
(d) Whistler Mountain Resort Limited Partnership (“Whistler LP”) and Blackcomb Skiing Enterprises Limited Partnership
(“Blackcomb LP” and together with Whistler LP, the “WB Partnerships”) are party to a credit agreement consisting of a
C$300.0 million credit facility which was originally dated as of November 12, 2013, by and among Whistler LP,
Blackcomb LP, certain subsidiaries of Whistler LP and Blackcomb LP party thereto as guarantors, the financial institutions
party thereto as lenders and The Toronto-Dominion Bank, as administrative agent. On April 14, 2023, the WB Partnerships
along with other parties to the original agreement entered into the Second Amended and Restated Credit Agreement (as
amended, the “Whistler Credit Agreement”). The amended Whistler Credit Agreement (i) extended the maturity date of the
revolving credit facility to April 14, 2028; (ii) contained customary LIBOR replacement language for the use of rates based
on SOFR with regard to borrowings under the facility made in U.S. dollars; and (iii) contained customary forward-looking
transition language for the Canadian Dollar Offered Rate (“CDOR”) with regard to borrowings under the facility made in
Canadian dollars, including, but not limited to, the use of rates based on the Canadian Overnight Repo Rate Average,
which is a measure of the cost of overnight general collateral funding using Government of Canada treasury bills and bonds
as collateral for repurchase transactions, and for which such transition is expected to occur no later than June 2024. No
other significant terms of the agreement were amended. As of July 31, 2023, there were no borrowings under the Whistler
Credit Agreement. The Whistler Credit Agreement also includes a quarterly unused commitment fee based on the
Consolidated Total Leverage Ratio, which as of July 31, 2023 is equal to 0.39% per annum. The Whistler Credit
Agreement provides for affirmative and negative covenants that restrict, among other things, the WB Partnerships’ ability
81
to incur indebtedness and liens, dispose of assets, make capital expenditures, make distributions and make investments. In
addition, the Whistler Credit Agreement includes the restrictive financial covenants (leverage ratios and interest coverage
ratios) customary for facilities of this type.
(e)
In September 2019, in conjunction with the acquisition of Peak Resorts, Inc. (“Peak Resorts”), the Company assumed
various secured borrowings (the “EPR Secured Notes”) under the master credit and security agreements and other related
agreements, as amended, (collectively, the “EPR Agreements”) with EPT Ski Properties, Inc. and its affiliates (“EPR”).
The EPR Secured Notes include the following:
i.
ii.
iii.
iv.
v.
The Alpine Valley Secured Note. The $4.6 million Alpine Valley Secured Note provides for interest payments
through its maturity on December 1, 2034. As of July 31, 2023, interest on this note accrued at a rate of
11.72%.
The Boston Mills/Brandywine Secured Note. The $23.3 million Boston Mills/Brandywine Secured Note
provides for interest payments through its maturity on December 1, 2034. As of July 31, 2023, interest on this
note accrued at a rate of 11.24%.
The Jack Frost/Big Boulder Secured Note. The $14.3 million Jack Frost/Big Boulder Secured Note provides
for interest payments through its maturity on December 1, 2034. As of July 31, 2023, interest on this note
accrued at a rate of 11.24%.
The Mount Snow Secured Note. The $51.1 million Mount Snow Secured Note provides for interest payments
through its maturity on December 1, 2034. As of July 31, 2023, interest on this note accrued at a rate of
12.32%.
The Hunter Mountain Secured Note. The $21.0 million Hunter Mountain Secured Note provides for interest
payments through its maturity on January 5, 2036. As of July 31, 2023, interest on this note accrued at a rate of
9.03%.
The EPR Secured Notes are secured by all or substantially all of the assets of Peak Resorts and its subsidiaries, including
mortgages on the Alpine Valley, Boston Mills, Brandywine, Jack Frost, Big Boulder, Mount Snow and Hunter Mountain
ski resorts. The EPR Secured Notes bear interest at specified interest rates, as discussed above, which are subject to
increase each year by the lesser of (i) three times the percentage increase in the Consumer Price Index (“CPI”) or (ii) a
capped index (the “Capped CPI Index”), which is 1.75% for the Hunter Mountain Secured Note and 1.50% for all other
notes. The EPR Agreements provide for affirmative and negative covenants that restrict, among other things, the ability of
Peak Resorts and its subsidiaries to incur indebtedness, dispose of assets, make distributions and make investments. In
addition, the EPR Agreements include restrictive covenants, including maximum leverage ratio and consolidated fixed
charge ratio. An additional contingent interest payment would be due to EPR if, on a calendar year basis, the gross receipts
from the properties securing any of the individual EPR Secured Notes (the “Gross Receipts”) are more than the result (the
“Interest Quotient”) of dividing the total interest charges for the EPR Secured Notes by a specified percentage rate (the
“Additional Interest Rate”). In such a case, the additional interest payment would equal the difference between the Gross
Receipts and the Interest Quotient multiplied by the Additional Interest Rate. This calculation is made on an aggregated
basis for the notes secured by the Jack Frost, Big Boulder, Boston Mills, Brandywine and Alpine Valley ski resorts, where
the Additional Interest Rate is 10.0%; on a standalone basis for the note secured by the Company’s Mount Snow ski resort,
where the Additional Interest Rate is 12.0%; and on a standalone basis for the note secured by the Company’s Hunter
Mountain ski resort, where the Additional Interest Rate is 8.0%. Peak Resorts does not have the right to prepay the EPR
Secured Notes. The EPR Secured Notes were recorded at their estimated fair value in conjunction with the acquisition of
Peak Resorts on September 24, 2019. The EPR Agreements grant EPR certain other rights including the option to purchase
the Boston Mills, Brandywine, Jack Frost, Big Boulder or Alpine Valley resorts, which is exercisable no sooner than two
years and no later than one year prior to the maturity dates of the applicable EPR Secured Note for such properties, with
any closings to be held on the applicable maturity dates; and, if EPR exercises the purchase option, EPR will enter into an
agreement with the Company for the lease of each acquired property for an initial term of 20 years, plus options to extend
the lease for two additional periods of ten years each.
In addition, Peak Resorts is required to maintain a debt service reserve account which amounts are applied to fund interest
payments and other amounts due and payable to EPR. As of July 31, 2023, the Company had funded the EPR debt service
reserve account in an amount equal to approximately $5.4 million, which was included in other current assets in the
Company’s Consolidated Balance Sheet.
(f) The Company has recorded the outstanding debt of four Employee Housing Entities (each an “Employee Housing
Entity” and collectively the “Employee Housing Entities”): Breckenridge Terrace, Tarnes, BC Housing and Tenderfoot.
The proceeds of the Employee Housing Bonds were used to develop apartment complexes designated primarily for use by
82
the Company’s seasonal employees at its Colorado mountain resorts. The Employee Housing Bonds are variable rate,
interest-only instruments with interest rates tied to SOFR plus 0% to 0.20% (5.32% to 5.52% as of July 31, 2023).
Interest on the Employee Housing Bonds is paid monthly in arrears and the interest rate is adjusted weekly. No principal
payments are due on the Employee Housing Bonds until maturity. Each Employee Housing Entity’s bonds were issued in
two series. The bonds for each Employee Housing Entity are backed by letters of credit issued under the Vail Holdings
Credit Agreement. The table below presents the principal amounts outstanding for the Employee Housing Bonds as of
July 31, 2023 (in thousands):
Breckenridge Terrace
Tarnes
BC Housing
Tenderfoot
Total
Maturity
2039
2039
2027
2035
Tranche A
Tranche B
Total
$
$
14,980 $
8,000
9,100
5,700
37,780 $
5,000 $
2,410
1,500
5,885
14,795 $
19,980
10,410
10,600
11,585
52,575
(g) On May 24, 2013, VR CPC Holdings, Inc. (“VR CPC”), a wholly-owned subsidiary of the Company, entered into a
transaction agreement with affiliate companies of Talisker Corporation (“Talisker”) pursuant to which the parties entered
into a master lease agreement (the “Park City Lease”) and certain ancillary transaction documents on May 29, 2013 related
to the former stand-alone Canyons Resort (“Canyons”), pursuant to which the Company assumed the resort operations of
the Canyons. The Park City Lease between VR CPC and Talisker has an initial term of 50 years with six 50-year renewal
options. The Park City Lease provides for $25 million in annual payments, which increase each year by an inflation-linked
index of CPI less 1% per annum, with a floor of 2%. Vail Resorts has guaranteed the payments under the Park City Lease.
The obligation at July 31, 2023 represents future lease payments for the remaining initial lease term of 50 years (including
annual increases at the floor of 2%) discounted using an interest rate of 10%, and includes accumulated accreted interest
expense of approximately $58.1 million.
(h) On August 3, 2022 in conjunction with the acquisition of Andermatt-Sedrun (see Note 7, Acquisitions), the Company
assumed the New Regional Policy loan between Andermatt-Sedrun and the Canton of Uri and Canton of Graubünden dated
June 24, 2016 (the “NRP Loan”), with an initial principal balance of CHF 40.0 million. Amounts outstanding under the
NRP Loan bear interest at 0.63% per annum until the maturity date, which is September 30, 2036, with semi-annual
required payments of principal amortization and accrued interest. In addition, the NRP Loan agreement includes restrictive
covenants requiring certain minimum financial results (as defined in the agreement).
(i) During the year ended July 31, 2023, the Company entered into new finance lease agreements for employee housing
units at Whistler Blackcomb. The leases have a term of 20 years with no renewal options. The obligation at July 31, 2023
represents future lease payments for the remaining initial lease term of 20 years (including annual increases at the floor of
3%) discounted using an interest rate of 6.95%.
(j) During the year ended July 31, 2019, the Company completed two real estate sales transactions that were accounted
for as financing arrangements as a result of the Company’s continuing involvement with the underlying assets that were
sold, including but not limited to, the obligation to repurchase finished commercial space from the development projects
upon completion. The Company received approximately $12.8 million of proceeds for these sales transactions through the
year ended July 31, 2023, which are reflected within long-term debt, net.
(k) In connection with the issuance of the 0.0% Convertible Notes, the Company recorded a debt discount under previous
accounting guidance, which represented the excess of the principal amount of the 0.0% Convertible Notes over the fair
value of the liability component, as discussed above. The Company adopted ASU 2020-06 on August 1, 2022 using the
modified retrospective method, and as a result, the Company reclassified the equity component of its 0.0% Convertible
Notes to long-term debt, net, and therefore no longer records non-cash interest expense related to the amortization of the
debt discount. In connection with the acquisition of Peak Resorts, the Company estimated the acquisition date fair values of
the debt instruments assumed, including the EPR Secured Notes, and recorded any difference between such estimated fair
values and the par value of debt instruments as unamortized premiums and discounts, which is amortized and recorded to
interest expense, net on the Company’s Consolidated Statements of Operations over the respective term of the applicable
debt instruments. Additionally, certain costs incurred with regard to the issuance of debt instruments are capitalized and
included as a reduction in the net carrying value of long-term debt, net of accumulated amortization, with the exception of
costs incurred related to line-of-credit arrangements, which are included in deferred charges and other assets, net of
83
accumulated amortization. Amortization of such deferred financing costs are recorded to interest expense, net on the
Company’s Consolidated Statements of Operations over the respective term of the applicable debt instruments.
(l) Current maturities represent principal payments due in the next 12 months.
Aggregate maturities for debt outstanding, including finance lease obligations, as of July 31, 2023 reflected by fiscal year are as
follows (in thousands):
2024
2025
2026
2027
2028
Thereafter
Total debt
Total
69,930
676,010
643,789
851,407
4,834
579,679
2,825,649
$
$
The Company recorded interest expense of $153.0 million, $148.2 million and $151.4 million for the years ended July 31,
2023, 2022 and 2021, respectively, of which $6.7 million, $5.9 million and $4.9 million, respectively, was amortization of
deferred financing costs. The Company was in compliance with all of its financial and operating covenants required to be
maintained under its debt instruments for all periods presented.
In connection with the acquisition of Whistler Blackcomb, VHI funded a portion of the purchase price through an intercompany
loan to Whistler Blackcomb, which was effective as of November 1, 2016 and requires foreign currency remeasurement to
Canadian dollars, the functional currency for Whistler Blackcomb. As a result, foreign currency fluctuations associated with the
loan are recorded within the Company’s results of operations. The Company recognized approximately $(2.9) million,
$(2.7) million and $8.3 million of non-cash foreign currency (loss) gain on the intercompany loan to Whistler Blackcomb
during the years ended July 31, 2023, 2022 and 2021, respectively, on its Consolidated Statements of Operations. As of July 31,
2023, the remaining balance of the intercompany loan was $98.7 million.
7.
Acquisitions
Andermatt-Sedrun
On August 3, 2022, through a wholly-owned subsidiary, the Company acquired a 55% controlling interest in Andermatt-Sedrun
from Andermatt Swiss Alps AG (“ASA”). The consideration paid consisted of an investment of $114.4 million
(CHF 110.0 million) into Andermatt-Sedrun for use in capital investments to enhance the guest experience on mountain (which
was prepaid to fund the acquisition and was recorded in other current assets on the Company’s Consolidated Balance Sheet as
of July 31, 2022) and $41.3 million (CHF 39.3 million) paid to ASA (which was paid on August 3, 2022, commensurate with
closing). As of August 3, 2022 the total fair value of the consideration paid was $155.4 million (CHF 149.3 million).
Andermatt-Sedrun operates mountain and ski-related assets, including lifts, most of the restaurants and a ski school operation at
the ski area. Ski operations are conducted on land owned by ASA as freehold or leasehold properties, land owned by Usern
Corporation, land owned by the municipality of Tujetsch and land owned by private property owners. ASA retained a 40%
ownership stake, with a group of existing shareholders comprising the remaining 5% ownership stake. ASA and the other
noncontrolling economic interests contain certain protective rights pursuant to a shareholder agreement (the “Andermatt
Agreement”) and no ability to participate in the day-to-day operations of Andermatt-Sedrun. The Andermatt Agreement
provides that no dividend distributions be made by Andermatt-Sedrun until the end of the fiscal year ending July 31, 2026, after
which time there shall be annual distributions of 50% of the available cash (as defined in the Andermatt Agreement) for the
most recently completed fiscal year. In addition, the distribution rights are non-transferable and transfer of the noncontrolling
interests are limited.
84
The following summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of
the identifiable assets acquired and liabilities assumed at the date the transaction was effective (in thousands):
Total cash consideration paid by Vail Resorts, Inc.
Estimated fair value of noncontrolling interests
Total estimated purchase consideration
Allocation of total estimated purchase consideration:
Current assets
Property, plant and equipment
Goodwill
Identifiable intangible assets and other assets
Assumed long-term debt
Other liabilities
Net assets acquired
Acquisition Date
Estimated Fair
Value
$
$
$
$
155,365
91,524
246,889
119,867
176,805
3,368
7,476
(44,130)
(16,497)
246,889
Identifiable intangible assets acquired in the transaction were primarily related to a trade name. The process of estimating the
fair value of the property, plant, and equipment includes the use of certain estimates and assumptions related to replacement
cost and physical condition at the time of acquisition. The excess of the purchase price over the aggregate estimated fair values
of the assets acquired and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to
expected synergies, the assembled workforce of the resort and other factors, and is not expected to be deductible for income tax
purposes. The operating results of Andermatt-Sedrun are reported within the Mountain segment prospectively from the date of
acquisition.
The estimated fair values of assets acquired and liabilities assumed in the acquisition of Andermatt-Sedrun are preliminary and
are based on the information that was available as of the acquisition date. The Company believes that this information provides
a reasonable basis for estimating the fair values of assets acquired and liabilities assumed; however, the Company is obtaining
additional information necessary to finalize those estimated fair values. Therefore, the preliminary measurements of estimated
fair values reflected are subject to change. The Company expects to finalize the valuation and complete the purchase
consideration allocation no later than one year from the acquisition date.
Seven Springs Mountain Resort, Hidden Valley Resort & Laurel Mountain Ski Area
On December 31, 2021, the Company, through a wholly-owned subsidiary, acquired Seven Springs Mountain Resort, Hidden
Valley Resort and Laurel Mountain Ski Area in Pennsylvania (collectively, the “Seven Springs Resorts”) from Seven Springs
Mountain Resort, Inc. and its affiliates for a cash purchase price of approximately $116.5 million, after adjustments for certain
agreed-upon terms, which the Company funded with cash on hand. The acquisition included the mountain operations of the
resorts, including base area skier services (food and beverage, retail and rental, lift ticket offices and ski and snowboard school
facilities), as well as a hotel, conference center and other related operations.
The following summarizes the purchase consideration and the purchase price allocation to estimated fair values of the
identifiable assets acquired and liabilities assumed at the date the transaction was effective (in thousands):
Current assets
Property, plant and equipment
Goodwill
Identifiable intangible assets and other assets
Liabilities
Net assets acquired
85
Acquisition Date
Estimated Fair
Value
$
$
2,932
118,415
5,041
5,335
(15,222)
116,501
Identifiable intangible assets acquired in the transaction were primarily related to advanced lodging bookings and trade names.
The process of estimating the fair value of the property, plant, and equipment includes the use of certain estimates and
assumptions related to replacement cost and physical condition at the time of acquisition. The excess of the purchase price over
the aggregate estimated fair values of the assets acquired and liabilities assumed was recorded as goodwill. The goodwill
recognized is attributable primarily to expected synergies, the assembled workforce of the resorts and other factors, and is not
expected to be deductible for income tax purposes. The Company recognized $2.8 million of acquisition related expenses
associated with the transaction within Mountain and Lodging operating expense on its Consolidated Statement of Operations
for the year ended July 31, 2022. The operating results of the acquired resorts are reported within the Mountain and Lodging
segments prospectively from the date of acquisition.
8.
Supplementary Balance Sheet Information
The composition of property, plant and equipment, including finance lease assets, follows (in thousands):
Land and land improvements
Buildings and building improvements
Machinery and equipment
Furniture and fixtures
Software
Vehicles
Construction in progress
Gross property, plant and equipment
Accumulated depreciation
Property, plant and equipment, net
July 31,
2023
2022
$
796,730 $
1,643,517
1,792,378
298,725
152,033
87,298
134,113
763,432
1,545,571
1,505,236
307,867
138,058
81,927
127,282
4,904,794
4,469,373
(2,533,237)
(2,351,321)
$
2,371,557 $
2,118,052
Depreciation expense, which included depreciation of assets recorded under finance leases, for the years ended July 31, 2023,
2022 and 2021 totaled $263.4 million, $247.2 million and $247.2 million, respectively.
The following table summarizes the composition of property, plant and equipment recorded under finance leases as of July 31,
2023 and 2022 (in thousands):
Land
Land improvements
Buildings and building improvements
Machinery and equipment
Gross property, plant and equipment
Accumulated depreciation
Property, plant and equipment, net
July 31,
2023
2022
$
31,818 $
49,228
70,917
71,527
223,490
(96,257)
$
127,233 $
31,818
49,228
42,160
60,384
183,590
(84,556)
99,034
86
The composition of goodwill and intangible assets follows (in thousands):
Goodwill
Goodwill
Accumulated impairments
Accumulated amortization
Goodwill, net
Indefinite-lived intangible assets
Trademarks
Other
Total gross indefinite-lived intangible assets
Accumulated amortization
Indefinite-lived intangible assets, net
Amortizable intangible assets
Trademarks
Other
Total gross amortizable intangible assets
Accumulated amortization
Amortizable intangible assets, net
Total gross intangible assets
Total accumulated amortization
Total intangible assets, net
$
$
$
$
$
July 31,
2023
2022
1,763,386 $
1,797,970
(25,688)
(17,354)
1,720,344 $
(25,688)
(17,354)
1,754,928
237,921 $
41,224
279,145
(24,713)
254,432 $
38,008 $
71,570
109,578
(54,665)
54,913
388,723
(79,378)
237,483
41,400
278,883
(24,713)
254,170
38,008
71,767
109,775
(49,887)
59,888
388,658
(74,600)
314,058
$
309,345 $
Amortization expense for intangible assets subject to amortization for the years ended July 31, 2023, 2022 and 2021 totaled
$5.1 million, $5.2 million and $5.4 million, respectively, and is estimated to be approximately $3.2 million annually, on
average, for the next five fiscal years.
The changes in the net carrying amount of goodwill allocated between the Company’s segments for the years ended July 31,
2023 and 2022 are as follows (in thousands):
Mountain
Lodging
Goodwill, net
Balance at July 31, 2021
Acquisitions (including measurement period adjustments)
Effects of changes in foreign currency exchange rates
Balance at July 31, 2022
Acquisition (including measurement period adjustments)
Disposal of retail and rental stores (1)
Effects of changes in foreign currency exchange rates
Balance at July 31, 2023
$
$
1,738,836 $
2,196
(31,110)
1,709,922
3,368
(5,975)
(31,977)
1,675,338 $
42,211 $
2,795
—
45,006
—
—
—
45,006 $
1,781,047
4,991
(31,110)
1,754,928
3,368
(5,975)
(31,977)
1,720,344
(1) During the year ended July 31, 2023, the Company completed a sale of five retail and rental stores in Telluride, Colorado
(the “Disposal Group”) to an unrelated party for cash, which the Company determined constituted the sale of a business. As
of April 30, 2023, the Company allocated a proportionate share of the applicable reporting unit’s goodwill to the Disposal
Group, and reduced the carrying value of the Disposal Group to its net realizable value.
87
The composition of accounts payable and accrued liabilities follows (in thousands):
Trade payables
Deferred revenue
Accrued salaries, wages and deferred compensation
Accrued benefits
Deposits
Operating lease liabilities
Other accruals
Total accounts payable and accrued liabilities
9.
Fair Value Measurements
July 31,
2023
2022
148,521 $
572,602
38,908
60,466
37,798
36,904
82,822
978,021 $
151,263
511,306
64,570
45,202
37,731
34,218
98,540
942,830
$
$
The Company utilizes FASB-issued fair value guidance that establishes how reporting entities should measure fair value for
measurement and disclosure purposes. The guidance establishes a common definition of fair value applicable to all assets and
liabilities measured at fair value and prioritizes the inputs into valuation techniques used to measure fair value. Accordingly, the
Company uses valuation techniques which maximize the use of observable inputs and minimize the use of unobservable inputs
when determining fair value. The three levels of the hierarchy are as follows:
Level 1: Inputs that reflect unadjusted quoted prices in active markets that are accessible to the Company for identical assets or
liabilities;
Level 2: Inputs include quoted prices for similar assets and liabilities in active and inactive markets or that are observable for
the asset or liability either directly or indirectly; and
Level 3: Unobservable inputs which are supported by little or no market activity.
The table below summarizes the Company’s cash equivalents, other current assets, Interest Rate Swaps and Contingent
Consideration (defined below) measured at estimated fair value (all other assets and liabilities measured at fair value are
immaterial) (in thousands).
Description
Assets:
Money Market
Commercial Paper
Certificates of Deposit
Interest Rate Swaps
Liabilities:
Contingent Consideration
Description
Assets:
Money Market
Commercial Paper
Certificates of Deposit
Interest Rate Swaps
Liabilities:
Contingent Consideration
Estimated Fair Value Measurement as of July 31, 2023
Total
Level 1
Level 2
Level 3
170,872 $
2,401 $
144,365 $
17,229 $
73,300 $
170,872 $
— $
— $
— $
— $
— $
2,401 $
144,365 $
17,229 $
—
—
—
—
— $
73,300
Estimated Fair Value Measurement as of July 31, 2022
Total
Level 1
Level 2
Level 3
505,901 $
2,401 $
9,473 $
12,301 $
505,901 $
— $
— $
— $
— $
2,401 $
9,473 $
12,301 $
—
—
—
—
42,400 $
— $
— $
42,400
$
$
$
$
$
$
$
$
$
$
88
The Company’s cash equivalents, other current assets and Interest Rate Swaps are measured utilizing quoted market prices or
pricing models whereby all significant inputs are either observable or corroborated by observable market data. The Company is
party to various interest rate swap agreements which hedge the cash flows associated with the SOFR-based variable interest rate
component of $400.0 million in principal amount of its Vail Holdings Credit Agreement. Changes in the estimated fair value
are recognized in change in estimated fair value of hedging instruments on the Company’s Consolidated Statements of
Comprehensive Income. The estimated fair value of the Interest Rate Swaps was included as an asset within deferred charges
and other assets as of July 31, 2023, and 2022 in the Company’s Consolidated Balance Sheets.
The changes in Contingent Consideration during the years ended July 31, 2023 and 2022 were as follows (in thousands):
Balance as of July 31, 2021
Payment
Change in estimated fair value
Balance as of July 31,2022
Payment
Change in estimated fair value
Balance as of July 31, 2023
Contingent
Consideration
29,600
(7,480)
20,280
42,400
(18,936)
49,836
73,300
$
$
The Park City Lease provides for participating contingent payments (the “Contingent Consideration”) to the landlord of 42% of
the amount by which EBITDA for the Park City resort operations, as calculated under the Park City Lease, exceeds
approximately $35 million, as established upon the Company’s acquisition of the resort, with such threshold amount
subsequently increased annually by an inflation linked index and a 10% adjustment for any capital improvements or
investments made under the Park City Lease by the Company. Contingent Consideration is classified as a liability, which is
remeasured to fair value at each reporting date until the contingency is resolved. The Company estimated the fair value of the
Contingent Consideration payments using an option pricing valuation model. The estimated fair value of Contingent
Consideration includes future period resort operations of Park City in the calculation of EBITDA on which participating
contingent payments are made, which is determined on the basis of estimated subsequent year performance, escalated by an
assumed annual growth factor and discounted to net present value. Other significant assumptions included a discount rate of
11.1%, and volatility of 17.0%, which together with future period Park City EBITDA, are all unobservable inputs and thus are
considered Level 3 inputs. During the year ended July 31, 2023, the Company made a payment to the landlord for Contingent
Consideration of approximately $18.9 million which increased compared to the prior year, primarily due to improved Park City
performance for the period ended July 31, 2022.
During the year ended July 31, 2023, the Company observed a continued trend of improved performance which led to a
reassessment of the long-term EBITDA assumptions used to estimate the fair value of the liability. As a result, the Company
recorded an increase in the liability of approximately $49.8 million which was primarily related to an increase in the expected
long-term EBITDA performance for Park City as well as the expected payment to be made in October 2023 for the resort’s
performance for the year ending July 31, 2023. The increased expectations for long-term EBITDA performance for Park City
are based on an average of historical results observed for the resort, which include actual performance for the years ended
July 31, 2023 and 2022. Future period actual EBITDA performance for Park City may differ significantly from these estimates,
which could have a material impact on the estimated fair value of the Contingent Consideration liability. The estimated fair
value of the Contingent Consideration liability is approximately $73.3 million, which is recorded in accounts payable and
accrued liabilities and other long-term liabilities in the Company’s Consolidated Balance Sheet as of July 31, 2023. The
Company prepared a sensitivity analysis to evaluate the effect that changes on certain key assumptions would have on the
estimated fair value of the Contingent Consideration. A change in the discount rate of 100 basis points or a 5% change in
estimated subsequent year performance of the resort would result in a change in the estimated fair value within the range of
approximately $10.1 million to $13.6 million.
89
10.
Income Taxes
The Company is subject to taxation in U.S. federal, state and local jurisdictions and various non-U.S. jurisdictions, including
Australia, Canada, the Netherlands and Switzerland. The Company’s effective tax rate is impacted by the tax laws, regulations,
practices and interpretations in the jurisdictions in which it operates and may fluctuate significantly from period to period
depending on, among other things, the geographic mix of the Company’s profits and losses, changes in tax laws and regulations
or their application and interpretation, the outcome of tax audits and changes in valuation allowances associated with the
Company’s deferred tax assets.
U.S. and foreign components of income before provision for income taxes are as follows (in thousands):
U.S.
Foreign
Income before income taxes
Year Ended July 31,
2023
2022
2021
$
$
217,971 $
155,546
373,517 $
387,729 $
69,432
457,161 $
148,898
(23,715)
125,183
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and income tax purposes. Significant components of the Company’s deferred tax liabilities and
assets are as follows (in thousands):
Deferred income tax liabilities:
Fixed assets
Intangible assets
Operating lease right of use assets
Convertible debt
Other
Total
Deferred income tax assets:
Canyons obligation
Stock-based compensation
Investment in Partnerships
Deferred compensation and other accrued benefits
Contingent Consideration
Net operating loss carryforwards and other tax credits
Operating lease liabilities
Other, net
Total
Valuation allowance for deferred income taxes
Deferred income tax assets, net of valuation allowance
Net deferred income tax liability
July 31,
2023
2022
211,995 $
143,402
45,913
—
22,115
423,425
18,631
9,370
10,430
11,099
18,423
14,864
48,953
28,988
160,758
(9,603)
151,155
272,270 $
203,669
119,066
44,873
18,780
18,157
404,545
17,291
9,957
10,602
15,202
10,719
8,516
49,530
24,501
146,318
(5,188)
141,130
263,415
$
$
The components of deferred income taxes recognized in the accompanying Consolidated Balance Sheets are as follows (in
thousands):
Deferred income tax asset
Deferred income tax liability
Net deferred income tax liability
July 31,
2023
2022
$
$
3,867 $
276,137
272,270 $
5,049
268,464
263,415
90
Significant components of the provision for income taxes are as follows (in thousands):
Current:
Federal
State
Foreign
Total current
Deferred:
Federal
State
Foreign
Total deferred
Provision for income taxes
Year Ended July 31,
2023
2022
2021
$
$
17,473 $
6,759
40,117
64,349
23,813
1,372
(1,120)
24,065
88,414 $
62,974 $
13,938
21,302
98,214
(6,910)
1,966
(4,446)
(9,390)
88,824 $
20,387
4,935
(8,460)
16,862
(16,289)
(2,423)
2,576
(16,136)
726
A reconciliation of the income tax provision for continuing operations and the amount computed by applying the United States
federal statutory income tax rate to income before income taxes is as follows:
At U.S. federal income tax rate
State income tax, net of federal benefit
Change in uncertain tax positions
Stock-based compensation
Noncontrolling interests
Foreign taxes
Taxes related to prior year filings
Other
Effective tax rate
Year Ended July 31,
2023
2022
2021
21.0 %
2.2 %
(1.5) %
0.7 %
(1.0) %
3.2 %
(0.1) %
(0.8) %
23.7 %
21.0 %
3.8 %
(1.2) %
(3.6) %
(1.2) %
0.1 %
0.3 %
0.2 %
19.4 %
21.0 %
4.2 %
(3.5) %
(14.3) %
0.8 %
(5.0) %
(2.9) %
0.3 %
0.6 %
A reconciliation of the beginning and ending amount of unrecognized tax benefits associated with uncertain tax positions,
excluding associated deferred tax benefits and accrued interest and penalties, if applicable, is as follows (in thousands):
Balance, beginning of year
Additions for tax positions of prior years
Lapse of statute of limitations
Balance, end of year
Year Ended July 31,
2023
2022
2021
$
$
62,909 $
11,025
(22,254)
51,680 $
67,857 $
11,179
(16,127)
62,909 $
70,299
16,754
(19,196)
67,857
As of July 31, 2023, the Company’s unrecognized tax benefits associated with uncertain tax positions relate to the treatment of
the Talisker lease payments as payments of debt obligations and that the tax basis in Canyons goodwill is deductible, and are
included within other long-term liabilities in the accompanying Consolidated Balance Sheets.
As of July 31, 2023, the Company had recorded $51.7 million of uncertain tax positions as well as $5.1 million of accrued
interest and penalties. During the year ended July 31, 2023, the Company experienced a reduction in the uncertain tax positions
due to the lapse of the statute of limitations of $22.3 million, which was partially offset with an increase to the uncertain tax
position of $11.0 million. The Company also recognized a tax benefit of $0.7 million from a reduction in accrued interest and
penalties during the year ended July 31, 2023. The Company is not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Additionally, the
Company expects a reduction to its uncertain tax positions for the fiscal year ending July 31, 2024, due to the lapse of the
statute of limitations.
91
The Company’s major tax jurisdictions in which it files income tax returns are the U.S. federal jurisdiction, various state
jurisdictions, Australia, Canada and Switzerland. The Company’s U.S. federal and state income tax returns are generally subject
to tax examinations for the tax years 2019 through the current period. The Company’s Australian and Canadian income tax
returns are generally subject to examination for the tax years 2018 through the current period, and Swiss income tax returns are
generally subject to examination for the tax years 2017 through the current period. Additionally, to the extent the Company has
NOLs that have been carried back or are available for carryforward, the tax years to which the NOL was carried back or in
which the NOL was generated may still be adjusted by the taxing authorities to the extent the NOLs are utilized.
The Company has NOL carryforwards totaling $63.4 million, primarily comprised of $10.6 million of federal and state NOLs
as a result of the acquisition of Peak Resorts in September 2019 that will expire beginning July 31, 2034 and non-U.S. NOLs of
$52.8 million (for which a portion will begin expiring July 31, 2024, and a portion will carry forward indefinitely). In
connection with Peak Resorts’ initial public offering in November 2014, as well as the Company’s acquisition of Peak Resorts
in September 2019, Peak Resorts had two ownership changes pursuant to the provisions of the Tax Reform Act of 1986. As a
result, the Company’s usage of its eligible Federal NOL carryforwards will be limited each year by these ownership changes;
however, management believes the full benefit of those carryforwards will be realized prior to their respective expiration dates.
As of July 31, 2023, the Company has recorded a valuation allowance of $4.4 million on the historical non-U.S. NOL
carryforwards, as the Company has determined that it is more likely than not that the associated NOL carryforwards will not be
realized. The Company has foreign tax credit carryforwards of $4.2 million, which expire by the year ending July 31, 2028. As
of July 31, 2023, the Company has recorded a valuation allowance of $4.2 million on foreign tax credit carryforwards, as the
Company has determined that it is more likely than not that these foreign tax credit carryforwards will not be realized.
Additionally, the Company has $1.0 million of foreign deferred tax assets, for which a valuation allowance of $1.0 million has
been recorded.
The Company may be required to record additional valuation allowances if, among other things, adverse economic conditions
negatively impact the Company’s ability to realize its deferred tax assets. Evaluating and estimating the Company’s tax
provision, current and deferred tax assets and liabilities and other tax accruals requires significant management judgment. The
Company intends to indefinitely reinvest undistributed earnings, if any, in its Canadian foreign subsidiaries. It is not practical at
this time to determine the income tax liability related to any remaining undistributed earnings.
In response to the COVID-19 pandemic, the Canadian and Australian governments each enacted legislation to assist companies
in maintaining liquidity and retaining employees. As a result, the Company recognized benefits of approximately $7.0 million,
and $30.8 million during the years ended July 31, 2022 and 2021, respectively, relating to the Canada Emergency Wage
Subsidy and Australian JobKeeper legislation for its Canadian and Australian employees, which primarily offset Mountain and
Lodging operating expense.
11.
Commitments and Contingencies
Guarantees/Indemnifications
As of July 31, 2023, the Company had various letters of credit outstanding totaling $83.0 million, consisting of $53.4 million to
support the Employee Housing Bonds; $6.4 million to support bonds issued by Holland Creek Metropolitan District; and
$23.2 million primarily for workers’ compensation, a wind energy purchase agreement and insurance-related deductibles. The
Company also had surety bonds of $9.5 million as of July 31, 2023, primarily to provide collateral for its U.S. workers
compensation self-insurance programs.
In addition to the guarantees noted above, the Company has entered into contracts in the normal course of business that include
certain indemnifications under which it could be required to make payments to third parties upon the occurrence or non-
occurrence of certain future events. These indemnities include indemnities related to licensees in connection with third-parties’
use of the Company’s trademarks and logos, liabilities associated with the infringement of other parties’ technology and
software products, liabilities associated with the use of easements, liabilities associated with employment of contract workers
and the Company’s use of trustees, and liabilities associated with the Company’s use of public lands and environmental matters.
The duration of these indemnities generally is indefinite and generally do not limit the future payments the Company could be
obligated to make.
As permitted under applicable law, the Company and certain of its subsidiaries have agreed to indemnify their directors and
officers over their lifetimes for certain events or occurrences while the officer or director is, or was, serving the Company or its
subsidiaries in such a capacity. The maximum potential amount of future payments the Company could be required to make
under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that
should enable the Company to recover a portion of any amounts paid.
92
Unless otherwise noted, the Company has not recorded any significant liabilities for the letters of credit, indemnities and other
guarantees noted above in the accompanying Consolidated Financial Statements, either because the Company has recorded on
its Consolidated Balance Sheets the underlying liability associated with the guarantee, the guarantee is with respect to the
Company’s own performance and is therefore not subject to the measurement requirements as prescribed by GAAP, or because
the Company has calculated the estimated fair value of the indemnification or guarantee to be immaterial based on the current
facts and circumstances that would trigger a payment under the indemnification clause. In addition, with respect to certain
indemnifications it is not possible to determine the maximum potential amount of liability under these potential obligations due
to the unique set of facts and circumstances likely to be involved in each particular claim and indemnification provision.
Historically, payments made by the Company under these obligations have not been material.
As noted above, the Company makes certain indemnifications to licensees for their use of the Company’s trademarks and logos.
The Company does not record any liabilities with respect to these indemnifications.
Commitments
The operations of Northstar are conducted on land and with operating assets owned by affiliates of EPR Properties, a real-estate
investment trust, primarily under operating leases which were assumed in the acquisition of Northstar by the Company. In
addition, the leases provide for the payment of percentage rent of certain gross revenues generated at the property over a
revenue threshold which is incrementally adjusted annually. The initial term of the leases expires in fiscal 2027 and allows for
three 10-year extensions at the Company’s option. The operations of Perisher are conducted on land under a license and lease
granted by the Office of Environment and Heritage, an agency of the New South Wales government, which initially
commenced in 2008, and which the Company assumed in its acquisition of Perisher. The lease and license has a term that
expires in fiscal 2048 and allows for an option to renew for an additional 20 years. The lease and license provide for the
payment of an initial minimum annual base rent, with annual CPI increases, and percentage rent of certain gross revenue
generated at the property. The operations of Falls Creek and Hotham are conducted on land under leases granted by the
Governor of the State of Victoria, Australia and its dependencies, which initially commenced in 1991 and 1992, respectively,
which the Company assumed in its acquisition of Falls Creek and Hotham in April 2019. The leases have terms that expire in
fiscal 2041 for Falls Creek and fiscal 2058 for Hotham, and provide for the payment of rent with both a fixed and variable
component. The operations of Mad River Mountain are conducted on land under a lease granted by EPT Mad River, Inc., which
initially commenced in 2005, which the Company assumed in its acquisition of Peak Resorts in September 2019. The lease has
a term that expires in the year ending July 31, 2035, and provides for the payment of an initial minimum annual base rent, with
annual CPI increases, and percentage rent of certain gross revenue generated at the property. The operations of Laurel Mountain
are conducted on land under a concessioner lease agreement with the Commonwealth of Pennsylvania, acting through the
Department of Conservation and Natural Resources (“Department”), which initially commenced in 2018, which the Company
assumed in its acquisition of the Seven Springs Resorts in December 2021. The agreement has a term that expires in the year
ending July 31, 2052, and provides for the payment of an initial minimum annual base rent, with bi-annual CPI increases, and
additional rent based on skier visits. The operations of Andermatt-Sedrun are conducted on (i) land owned by ASA as freehold
or leasehold properties, including land owned by Usern Corporation, for which operations are conducted under a main
framework concession agreement that expires in the year ending July 31, 2033 and provides for annual concession and
administrative fee payments, and land owned by the Swiss Confederation, for which operations are conducted under leasehold
agreements which expire in the years ending July 31, 2067 and 2068; (ii) land owned by the municipality of Tujetsch, for which
operations are conducted under various building rights and rights of way which expire in the year ending July 31, 2033 and
provide for annual concession fee payments; and (iii) land owned by private property owners. The transportation and ski
infrastructure operations of Andermatt-Sedrun also operate under various concessions from the Federal Office of Transport,
which have terms expiring in the years ending July 31, 2026 through 2042. Additionally, the Company has entered into
strategic long-term season pass alliance agreements with third-party mountain resorts in which the Company has committed to
pay minimum revenue guarantees over the remaining terms of these agreements.
The Company has executed or assumed as lessee other operating leases for the rental of office and commercial space, employee
residential units and land primarily through fiscal 2079. Certain of these leases have renewal terms at the Company’s option,
escalation clauses, rent holidays and leasehold improvement incentives. Rent holidays and rent escalation clauses are
recognized on a straight-line basis over the lease term. Leasehold improvement incentives are recorded as leasehold
improvements and amortized over the shorter of their economic lives or the term of the lease. For the years ended July 31,
2023, 2022 and 2021, the Company recorded lease expense (including for the lease obligations discussed above), excluding
executory costs, related to these agreements of $71.3 million, $61.2 million and $58.7 million, respectively, which is included
on the accompanying Consolidated Statements of Operations. See Note 4, Leases, for additional information regarding the
Company’s leasing arrangements.
93
Self-Insurance
The Company is self-insured for claims under its U.S. health benefit plans and for the majority of workers’ compensation
claims in the U.S. Workers compensation claims in the U.S. are subject to stop loss policies. The self-insurance liability related
to workers’ compensation is determined actuarially based on claims filed. The self-insurance liability related to claims under
the Company’s U.S. health benefit plans is determined based on analysis of actual claims. The amounts related to these claims
are included as a component of accrued benefits in accounts payable and accrued liabilities (see Note 8, Supplementary Balance
Sheet Information).
Legal
The Company is a party to various lawsuits arising in the ordinary course of business. Management believes the Company has
adequate insurance coverage and/or has accrued for all loss contingencies for asserted and unasserted matters deemed to be
probable and reasonably estimable losses. As of July 31, 2023 and 2022, the accruals for such loss contingencies were not
material individually or in the aggregate.
12.
Segment and Geographic Area Information
Segment Information
The Company has three reportable segments: Mountain, Lodging and Real Estate. The Company refers to “Resort” as the
combination of the Mountain and Lodging segments. The Mountain segment includes the operations of the Company’s
mountain resorts/ski areas and related ancillary activities. The Lodging segment includes the operations of the Company’s
owned hotels, RockResorts, NPS concessioner properties, condominium management, Colorado resort ground transportation
operations and mountain resort golf operations. The Real Estate segment owns, develops and sells real estate in and around the
Company’s resort communities. The Company’s reportable segments, although integral to the success of the others, offer
distinctly different products and services and require different types of management focus. As such, these segments are
managed separately.
The Company reports its segment results using Reported EBITDA (defined as segment net revenue less segment operating
expenses, plus segment equity investment income or loss, and for the Real Estate segment, plus gain or loss on sale of real
property). The Company reports segment results in a manner consistent with management’s internal reporting of operating
results to the chief operating decision maker (Chief Executive Officer) for purposes of evaluating segment performance.
Items excluded from Reported EBITDA are significant components in understanding and assessing financial performance.
Reported EBITDA should not be considered in isolation or as an alternative to, or substitute for, net income, net change in cash
and cash equivalents or other financial statement data presented in the accompanying Consolidated Financial Statements as
indicators of financial performance or liquidity.
The Company utilizes Reported EBITDA in evaluating the performance of the Company and in allocating resources to its
segments. Mountain Reported EBITDA consists of Mountain net revenue less Mountain operating expense plus Mountain
equity investment income or loss. Lodging Reported EBITDA consists of Lodging net revenue less Lodging operating expense.
Real Estate Reported EBITDA consists of Real Estate net revenue less Real Estate operating expense plus gain or loss on sale
of real property. All segment expenses include an allocation of corporate administrative expense. Assets are not used to
evaluate performance, except as shown in the table below. The accounting policies specific to each segment are the same as
those described in Note 2, Summary of Significant Accounting Policies.
94
The following table presents key financial information by reportable segment, which is used by management in evaluating
performance and allocating resources (in thousands):
Net revenue:
Mountain
Lodging
Total Resort net revenue
Real Estate
Total net revenue
Segment operating expense:
Mountain
Lodging
Total Resort operating expense
Real Estate
Total segment operating expense
Gain on sale of real property
Mountain equity investment income, net
Reported EBITDA:
Mountain
Lodging
Resort
Real Estate
Total Reported EBITDA
Real estate held for sale or investment
Reconciliation of net income attributable to Vail Resorts, Inc. to
Total Reported EBITDA:
Net income attributable to Vail Resorts, Inc.
Net income (loss) attributable to noncontrolling interests
Net income
Provision for income taxes
Income before provision for income taxes
Depreciation and amortization
Loss (gain) on disposal of fixed assets and other, net (1)
Change in estimated fair value of contingent consideration
Investment income and other, net
Foreign currency loss (gain) on intercompany loans
$
$
$
$
$
$
$
$
$
Year ended July 31,
2023
2022
2021
$
2,540,906 $
2,213,114 $
1,702,798
340,393
312,090
2,881,299
2,525,204
8,065
708
205,142
1,907,940
1,770
2,889,364 $
2,525,912 $
1,909,710
1,718,941 $
1,404,527 $
1,156,743
328,126
286,343
2,047,067
1,690,870
10,635
5,911
213,239
1,369,982
6,676
2,057,702 $
1,696,781 $
1,376,658
842 $
605 $
1,276 $
2,580 $
324
6,698
822,570 $
811,167 $
12,267
834,837
(1,728)
833,109 $
90,207 $
25,747
836,914
(3,927)
832,987 $
95,983 $
268,148 $
347,923 $
16,955
285,103
88,414
373,517
268,501
9,070
49,836
(23,744)
2,907
20,414
368,337
88,824
457,161
252,391
(43,992)
20,280
(3,718)
2,682
552,753
(8,097)
544,656
(4,582)
540,074
95,615
127,850
(3,393)
124,457
726
125,183
252,585
5,373
14,402
(586)
(8,282)
151,399
540,074
Interest expense, net
Total Reported EBITDA
153,022
833,109 $
148,183
832,987 $
$
(1) During the year ended July 31, 2022, the Company recognized a gain of $32.2 million from the sale of a hotel property in
Breckenridge.
95
Geographic Information
Net revenue and property, plant and equipment, net by geographic region are as follows (in thousands):
Net revenue
U.S.
International (1)
Total net revenue
Property, plant and equipment, net
U.S.
International (2)
Total property, plant and equipment, net
Year ended July 31,
2023
2022
2021
$
$
2,366,342 $
2,228,708 $
1,717,270
523,022
297,204
192,440
2,889,364 $
2,525,912 $
1,909,710
July 31,
2023
2022
1,754,946 $
1,729,400
616,611
388,652
2,371,557 $
2,118,052
$
$
(1) The only individual international country (i.e. except the U.S.) to account for more than 10% of the Company’s net
revenue was Canada. Canada accounted for $321.7 million of net revenue for the year ended July 31, 2023. For the years
ended July 31, 2022 and 2021 no individual international country accounted for more than 10% of the Company’s net
revenue.
(2) The only individual international country to account for more than 10% of the Company’s property plant and equipment,
net was Canada. Canada accounted for $324.4 million and $272.9 million of property, plant and equipment, net as of
July 31, 2023 and 2022, respectively.
13.
Share Repurchase Program
On March 9, 2006, the Company’s Board of Directors approved a share repurchase program, authorizing the Company to
repurchase up to 3,000,000 Vail Shares. On July 16, 2008, December 4, 2015 and March 7, 2023, the Company’s Board of
Directors increased the authorization by an additional 3,000,000, 1,500,000 and 2,500,000 Vail Shares, respectively, for a total
authorization to repurchase up to 10,000,000 Vail Shares. During the years ended July 31, 2023 and 2022, the Company
repurchased 2,182,594 and 304,567 Vail Shares, respectively (at a total cost of $500.0 million and $75.0 million, respectively,
excluding accrued excise tax, as discussed further below). The Company did not repurchase any Vail Shares during the year
ended July 31, 2021. Since inception of this stock repurchase program through July 31, 2023, the Company has repurchased
8,648,302 shares at a cost of approximately $979.4 million. As of July 31, 2023, 1,351,698 Vail Shares remained available to
repurchase under the existing share repurchase program, which has no expiration date. Vail Shares purchased pursuant to the
repurchase program will be held as treasury shares and may be used for issuance under the Company’s employee share award
plan.
On August 16, 2022 the U.S. government enacted the Inflation Reduction Act of 2022, which imposed a 1.0% excise tax on
share repurchases (net of estimated share issuances) made after December 31, 2022. As a result, the Company accrued
approximately $4.9 million of excise tax in connection with the share repurchases it completed during the year ended July 31,
2023, which was recorded as an adjustment to the cost basis of repurchased shares in treasury stock and accounts payable and
accrued liabilities on the Company’s Consolidated Balance Sheet as of July 31, 2023.
96
14.
Stock Compensation Plan
The Company has a share award plan (the “Plan”) which has been approved by the Company’s stockholders. Under the Plan, up
to 4.4 million shares of common stock could be issued in the form of options, stock appreciation rights, restricted shares,
restricted share units, performance shares, performance share units, dividend equivalents or other share-based awards to
employees, directors or consultants of the Company or its subsidiaries or affiliates. The terms of awards granted under the Plan,
including exercise price, vesting period and life, are set by the Compensation Committee of the Board of Directors. All share-
based awards (except for restricted shares and restricted share units) granted under the Plan have a life of ten years. Most
awards vest ratably over three years; however, some have been granted with different vesting schedules. Of the awards
outstanding, none have been granted to non-employees (except those granted to non-employee members of the Board of
Directors of the Company) under the Plan. At July 31, 2023, approximately 2.1 million share-based awards were available to be
granted under the Plan.
The fair value of stock-settled stock appreciation rights (“SARs”) granted in the years ended July 31, 2023, 2022 and 2021 were
estimated on the date of grant using a lattice-based option valuation model that applies the assumptions noted in the table
below. A lattice-based model considers factors such as exercise behavior, and assumes employees will exercise equity awards at
different times over the contractual life of the equity awards. As a lattice-based model considers these factors, and is more
flexible, the Company considers it to be a better method of valuing equity awards than a closed-form Black-Scholes model.
Because lattice-based option valuation models incorporate ranges of assumptions for inputs, those ranges are disclosed.
Expected volatility is based on historical volatility of the Company’s stock. The Company uses historical data to estimate equity
award exercises and employee terminations within the valuation model; separate groups of employees that have similar
historical exercise behavior are considered separately for valuation purposes. The expected term of equity awards granted is
derived from the output of the option valuation model and represents the period of time that equity awards granted are expected
to be outstanding; the range given below results from certain groups of employees exhibiting different behavior. The risk-free
rate for periods within the contractual life of the equity award is based on the United States Treasury yield curve in effect at the
time of grant.
Expected volatility
Expected dividend yield
Expected term (average in years)
Risk-free rate
2023
30.0%
3.2%
6.5-6.8
2.7-3.0%
Year ended July 31,
2022
31.0%
2.1%
6.4-6.8
0.1-1.2%
2021
30.7%
3.0%
6.6-6.9
0.1-0.6%
The Company records actual forfeitures related to unvested awards upon employee terminations.
97
A summary of aggregate SARs award activity under the Plan as of July 31, 2023, 2022 and 2021, and changes during the years
then ended is presented below (in thousands, except exercise price and contractual term):
Awards
Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
Outstanding at August 1, 2020
Granted
Exercised
Forfeited or expired
Outstanding at July 31, 2021
Granted
Exercised
Forfeited or expired
Outstanding at July 31, 2022
Granted
Exercised
Forfeited or expired
Outstanding at July 31, 2023
Vested and expected to vest at July 31, 2023
Exercisable at July 31, 2023
1,061 $
205 $
(370) $
(23) $
873 $
97 $
(278) $
(13) $
679 $
176 $
(92) $
(53) $
710 $
699 $
459 $
138.59
233.01
84.20
236.31
181.17
360.69
93.32
271.04
241.13
220.73
222.14
280.09
235.69
235.58
227.36
6.3 years
6.3 years
5.1 years
$
$
$
15,837
15,678
13,075
The weighted-average grant-date estimated fair value of SARs granted during the years ended July 31, 2023, 2022 and 2021
was $55.37, $96.20 and $52.30, respectively. The total intrinsic value of SARs exercised during the years ended July 31, 2023,
2022 and 2021 was $3.0 million, $69.1 million and $82.0 million, respectively. The Company had 120,000, 160,000 and 96,000
SARs that vested during the years ended July 31, 2023, 2022 and 2021, respectively. These awards had total estimated fair
values of $0.0 million (due to the exercise prices exceeding the market prices at the date of vesting), $16.2 million and
$0.1 million at the date of vesting for the years ended July 31, 2023, 2022 and 2021, respectively.
A summary of the status of the Company’s nonvested SARs as of July 31, 2023 and changes during the year then ended is
presented below (in thousands, except fair value amounts):
Nonvested at July 31, 2022
Granted
Vested
Forfeited
Nonvested at July 31, 2023
Awards
230
176
(120)
(35)
251
$
$
$
$
$
Weighted-Average
Grant-Date
Fair Value
71.62
55.37
65.98
71.62
62.96
A summary of the status of the Company’s nonvested restricted share units as of July 31, 2023 and changes during the year then
ended is presented below (in thousands, except fair value amounts):
Nonvested at July 31, 2022
Granted
Vested
Forfeited
Nonvested at July 31, 2023
Awards
125
127
(63)
(20)
169
$
$
$
$
$
Weighted-Average
Grant-Date
Fair Value
277.78
199.14
263.14
245.34
227.87
The Company granted 127,000 restricted share units during the year ended July 31, 2023 with a weighted-average grant-date
estimated fair value of $199.14. The Company granted 68,000 restricted share units during the year ended July 31, 2022 with a
weighted-average grant-date estimated fair value of $336.57. The Company granted 94,000 restricted share units during the
98
year ended July 31, 2021 with a weighted-average grant-date estimated fair value of $222.17. The Company had 63,000, 68,000
and 66,000 restricted share units that vested during the years ended July 31, 2023, 2022 and 2021, respectively. These units had
a total estimated fair value of $13.3 million, $23.7 million and $15.0 million at the date of vesting for the years ended July 31,
2023, 2022 and 2021, respectively.
As of July 31, 2023, there was $32.5 million of total unrecognized compensation expense related to nonvested share-based
compensation arrangements granted under the Plan, of which $19.3 million, $11.4 million and $1.8 million of expense is
expected to be recognized in the years ending July 31, 2024, 2025 and 2026, respectively, assuming no share-based awards are
granted in the future or forfeited. The tax benefit realized or expected to be realized from SARs exercised and restricted stock
units vested was $2.5 million, $23.0 million and $24.0 million for the years ended July 31, 2023, 2022 and 2021, respectively.
The Company has a policy of using either authorized and unissued shares, including shares acquired by purchase in the open
market, to satisfy equity award exercises.
15.
Retirement and Profit Sharing Plans
The Company maintains a defined contribution retirement plan (the “Retirement Plan”), qualified under Section 401(k) of the
Internal Revenue Code, for its U.S. employees. Under this Retirement Plan, U.S. employees are eligible to make before-tax
contributions on the first day of the calendar month following the later of: (i) their employment commencement date or (ii) the
date they turn 21. Participants may contribute up to 100% of their qualifying annual compensation up to the annual maximum
specified by the Internal Revenue Code. When the Company participates in 401(k) contribution matching, it matches an amount
equal to 50% of each participant’s contribution up to 6% of a participant’s bi-weekly qualifying compensation starting the pay
period containing the first day of the month after obtaining the later of: (i) 12 months of employment with at least 1,000 service
hours from the commencement date or (ii) if 1,000 hours within the first 12 months was not completed, then after the employee
completed a cumulative 1,500 service hours. The Company’s matching contribution is entirely discretionary and may be
reduced or eliminated at any time.
Total Retirement Plan expense recognized by the Company for the years ended July 31, 2023, 2022 and 2021 was $9.8 million,
$8.5 million and $6.5 million, respectively.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
ITEM 9.
None.
ITEM 9A.
CONTROLS AND PROCEDURES.
Disclosure Controls and Procedures
Management of the Company, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), have
evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this
Form 10-K. The term “disclosure controls and procedures” means controls and other procedures established by the Company
that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under
the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that
information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is
accumulated and communicated to the Company’s management, including its CEO and CFO, as appropriate, to allow timely
decisions regarding required disclosure.
Based upon their evaluation of the Company’s disclosure controls and procedures, the CEO and the CFO concluded that, as of
the end of the period covered by this Form 10-K, the disclosure controls are effective to provide reasonable assurance that
information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is
accumulated and communicated to management, including the CEO and CFO, as appropriate, to allow timely decisions
regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed,
summarized and reported within the time periods specified by the SEC’s rules and forms.
99
The Company, including its CEO and CFO, does not expect that the Company’s controls and procedures will prevent or detect
all error and all fraud. A control system, no matter how well conceived or operated, can provide only reasonable, not absolute,
assurance that the objectives of the control system are met.
Management’s Annual Report on Internal Control Over Financial Reporting
The report of management required by this item is contained in Item 8. of this Form 10-K under the caption “Management’s
Report on Internal Control over Financial Reporting.”
Attestation Report of the Independent Registered Public Accounting Firm
The attestation report required by this item is contained in Item 8. of this Form 10-K under the caption “Report of Independent
Registered Public Accounting Firm.”
Changes in Internal Control Over Financial Reporting
On August 3, 2022, we completed our acquisition of Andermatt-Sedrun. Andermatt-Sedrun was not previously subject to the
rules and regulations promulgated under Sarbanes-Oxley and accordingly was not required to establish and maintain an internal
control infrastructure meeting the standards promulgated under Sarbanes-Oxley. Our assessment of and conclusion on the
effectiveness of our internal control over financial reporting as of July 31, 2023 did not include certain elements of the internal
controls of Andermatt-Sedrun. This exclusion is in accordance with the Securities and Exchange Commission’s general
guidance that an assessment of a recently acquired business may be omitted from our scope in the year of acquisition.
On December 31, 2021, we completed our acquisition of the Seven Springs Resorts. In accordance with the SEC’s general
guidance for recently acquired businesses, our assessment of and conclusion on the effectiveness of our internal control over
financial reporting as of the fiscal year ended July 31, 2022 did not include certain elements of the internal controls of the
Seven Springs Resorts. However, as of July 31, 2023, the Seven Springs Resorts are now included within our assessment of and
conclusion on the effectiveness of our internal control over financial reporting.
Excluding Andermatt-Sedrun and the Seven Springs Resorts, there were no changes in the Company’s internal control over
financial reporting during the year ended July 31, 2023 that have materially affected, or are reasonably likely to materially
affect, the Company’s internal control over financial reporting.
ITEM 9B.
OTHER INFORMATION.
Director and Officer Rule 10b5-1 Trading Arrangements
During the three months ended July 31, 2023, none of the Company’s directors or “officers” (as defined in Rule 16a-1(f) under
the Exchange Act) adopted, modified or terminated “Rule 10b5-1 trading arrangements” or “non-Rule 10b5-1 trading
arrangements” (each as defined in Item 408 of Regulation S-K).
DISCLOSURE REPORTING REGARDING FOREIGN JURISDICTIONS THAT PREVENT
ITEM 9C.
INSPECTIONS.
Not applicable.
PART III
We expect to file with the SEC in October 2023 (and, in any event, not later than 120 days after the close of our last fiscal
year), a definitive Proxy Statement, pursuant to SEC Regulation 14A in connection with our Annual Meeting of Shareholders to
be held in December 2023.
100
ITEM 10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
The information required by this item is incorporated herein by reference from the Company’s definitive Proxy Statement for
the 2023 annual meeting of stockholders under the sections entitled “Information with Respect to Nominees,” “Management”
and “Corporate Governance.”
ITEM 11.
EXECUTIVE COMPENSATION.
The information required by this item is incorporated herein by reference from the Company’s definitive Proxy Statement for
the 2023 annual meeting of stockholders under the section entitled “Executive Compensation.”
ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS.
The information required by this item is incorporated herein by reference from the Company’s definitive Proxy Statement for
the 2023 annual meeting of stockholders under the sections entitled “Security Ownership of Directors and Executive Officers,”
“Information as to Certain Stockholders” and “Executive Compensation - Securities Authorized for Issuance under Equity
Compensation Plans.”
ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE.
The information required by this item is incorporated herein by reference from the Company’s definitive Proxy Statement for
the 2023 annual meeting of stockholders under the sections entitled “Determinations Regarding Independence” and
“Transactions with Related Persons.”
ITEM 14.
PRINCIPAL ACCOUNTING FEES AND SERVICES.
The information required by this item is incorporated herein by reference from the Company’s definitive Proxy Statement for
the 2023 annual meeting of stockholders under the section entitled “Proposal 2. Ratification of the Selection of Independent
Registered Public Accounting Firm.”
PART IV
ITEM 15.
EXHIBITS, FINANCIAL STATEMENT SCHEDULES.
a)
Index to Financial Statements.
(1)
(2)
(3)
See Item 8. “Financial Statements and Supplementary Data” for the index to the Financial Statements.
Schedules have been omitted because they are not required or not applicable, or the required information is
shown in the financial statements or notes to the financial statements.
See the Index to Exhibits below.
The following exhibits are either filed or furnished herewith (as applicable) or, if so indicated, incorporated by reference to the
documents indicated in parentheses, which have previously been filed or furnished (as applicable) with the Securities and
Exchange Commission.
101
Posted
Exhibit
Number
2.1
Description
3.1
2.3
2.2
3.2
2.4
Transaction Agreement, dated as of May 24, 2013, between VR CPC Holdings, Inc. and ASC Utah LLC, Talisker
Land Holdings, LLC, Talisker Canyons Lands LLC, Talisker Canyons Leaseco LLC, American Skiing Company
Resort Properties LLC, Talisker Canyons Propco LLC and Talisker Canyons Finance Co LLC. (Incorporated by
reference to Exhibit 2.1 on Form 8-K of Vail Resorts, Inc. filed on May 30, 2013) (File No. 001-09614).
Purchase and Sale Agreement, dated as of September 11, 2014, between VR CPC Holdings, Inc. and Greater Park
City Company, Powdr Corp., Greater Properties, Inc., Park Properties, Inc. and Powdr Development Company.
(Incorporated by reference to Exhibit 2.1 on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31,
2014) (File No. 001-09614).
Arrangement Agreement, dated as of August 5, 2016, between Vail Resorts, Inc., 1068877 B.C. Ltd. and Whistler
Blackcomb Holdings Inc. (Incorporated by reference to Exhibit 2.1 on Form 8-K of Vail Resorts, Inc. filed on
August 8, 2016) (File No. 001-09614).
Agreement and Plan of Merger, dated as of July 20, 2019, by and among Vail Holdings, Inc., VRAD Holdings,
Inc. and Peak Resorts, Inc., and solely with respect to Section 9.14, Vail Resorts, Inc. (Incorporated by reference
to Exhibit 2.1 on Form 8-K of Vail Resorts, Inc. filed on July 22, 2019) (File No. 001-09614).
Amended and Restated Certificate of Incorporation of Vail Resorts, Inc., dated January 5, 2005. (Incorporated by
reference to Exhibit 3.1 on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2005)(File No.
001-09614).
Certificate of Amendment of Amended and Restated Certificate of Incorporation of Vail Resorts, Inc., dated
December 7, 2011. (Incorporated by reference to Exhibit 3.1 on Form 8-K of Vail Resorts, Inc. filed on
December 8, 2011) (File No. 001-09614).
Certificate of Designations of Special Voting Preferred Stock of Vail Resorts, Inc., dated October 17, 2016.
(Incorporated by reference to Exhibit 3.1 on Form 8-K of Vail Resorts, Inc. filed on October 17, 2016) (File No.
001-09614).
Amended and Restated Bylaws of Vail Resorts, Inc., dated December 7, 2011. (Incorporated by reference to
Exhibit 3.2 on Form 8-K of Vail Resorts, Inc. filed on December 8, 2011) (File No. 001-09614).
Indenture, dated May 4, 2020, by and among Vail Resorts, Inc., the Guarantors named therein and U.S. Bank
National Association, as Trustee (Incorporated by reference to Exhibit 4.1 of Form 8-K of Vail Resorts, Inc. filed
on May 4, 2020) (File No. 001-09614).
Indenture, dated December 18, 2020, by and between Vail Resorts, Inc. and U.S. Bank National Association, as
Trustee (including the form of 0.00% Convertible Senior Note due 2026). (Incorporated by reference to Exhibit
4.1 on Form 8-K of Vail Resorts, Inc. filed on December 18, 2020) (File No. 001-09614).
Description of Securities (Incorporated by reference to Exhibit 4.1 on Form 10-Q of Vail Resorts, Inc. for the
quarter ended October 31, 2020 (File No. 001-09614).
Forest Service Unified Permit for Heavenly ski area, dated April 29, 2002 (File No. 001-09614).
Forest Service Unified Permit for Keystone ski area, dated December 30, 1996. (Incorporated by reference to
Exhibit 99.2(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
10.2(b) Amendment No. 2 to Forest Service Unified Permit for Keystone ski area. (Incorporated by reference to Exhibit
99.2(b) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
10.2(c) Amendment No. 3 to Forest Service Unified Permit for Keystone ski area. (Incorporated by reference to Exhibit
10.1
10.2(a)
4.2
4.1
3.4
4.3
3.3
10.3 (c) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
10.2(d) Amendment No. 4 to Forest Service Unified Permit for Keystone ski area. (Incorporated by reference to Exhibit
10.3 (d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
10.2(e) Amendment No. 5 to Forest Service Unified Permit for Keystone ski area. (Incorporated by reference to Exhibit
10.3(a)
10.3(b)
10.3(c)
10.3(d)
10.3(e)
10.3(f)
10.4(a)
10.3 (e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Forest Service Unified Permit for Breckenridge ski area, dated December 31, 1996. (Incorporated by reference to
Exhibit 99.3(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
Amendment No. 1 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to
Exhibit 99.3(b) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
Amendment No. 2 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to
Exhibit 10.4 (c) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Amendment No. 3 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to
Exhibit 10.4 (d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Amendment No. 4 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to
Exhibit 10.4 (e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Amendment No. 5 to Forest Service Unified Permit for Breckenridge ski area. (Incorporated by reference to
Exhibit 10.4(f) on Form 10-Q of Vail Resorts, Inc. for the quarter ended January 31, 2006) (File No. 001-09614).
Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to Exhibit 99.4(a) on Form
10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
102
Posted
Exhibit
Number
10.4(b)
10.4(c)
10.4(d)
10.4(e)
10.4(f)
10.5(a)
10.5(b)
10.5(c)
10.5(d)
10.5(e)
10.6*
10.7*
10.8*
10.9*
10.10*
10.11
10.12
10.13*
10.14*
10.15*
10.16*
10.17*
10.18(a)
10.18(b)
Description
Exhibits to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to Exhibit 99.4(b)
on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
Amendment No. 1 to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to
Exhibit 10.5(c) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Amendment No. 2 to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to
Exhibit 10.5(d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Amendment to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to Exhibit
10.5(e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Amendment No. 3 to Forest Service Unified Permit for Beaver Creek ski area. (Incorporated by reference to
Exhibit 10.4(f) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2008) (File No. 001-09614).
Forest Service Unified Permit for Vail ski area, dated November 23, 1993. (Incorporated by reference to Exhibit
99.5(a) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
Exhibits to Forest Service Unified Permit for Vail ski area. (Incorporated by reference to Exhibit 99.5(b) on Form
10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
Amendment No. 2 to Forest Service Unified Permit for Vail ski area. (Incorporated by reference to Exhibit
99.5(c) on Form 10-Q of Vail Resorts, Inc. for the quarter ended October 31, 2002) (File No. 001-09614).
Amendment No. 3 to Forest Service Unified Permit for Vail ski area. (Incorporated by reference to Exhibit 10.6
(d) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Amendment No. 4 to Forest Service Unified Permit for Vail ski area. (Incorporated by reference to Exhibit 10.6
(e) on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2005) (File No. 001-09614).
Vail Resorts, Inc. Amended and Restated 2002 Long Term Incentive and Share Award Plan. (Incorporated by
reference to Exhibit 99.1 on Form 8-K of Vail Resorts, Inc. filed on December 10, 2009) (File No. 001-09614).
Form of Restricted Share Unit Agreement. (Incorporated by reference to Exhibit 10.2 on Form 8-K of Vail
Resorts, Inc. filed on December 7, 2015) (File Number 001-09614).
Form of Share Appreciation Rights Agreement. (Incorporated by reference to Exhibit 10.3 on Form 8-K of Vail
Resorts, Inc. filed on December 7, 2015) (File Number 001-09614).
Vail Resorts Deferred Compensation Plan, effective as of January 1, 2005. (Incorporated by reference to Exhibit
10.22 on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2009) (File No. 001-09614).
Executive Employment Agreement, between Vail Resorts, Inc. and Kirsten A. Lynch effective November 1,
2021. (Incorporated by reference to Exhibit 10.1 of the report on Form 8-K of Vail Resorts, Inc. filed on
November 1, 2021) (File No. 001-09614).
Form of Indemnification Agreement. (Incorporated by reference to Exhibit 10.1 of the report on Form 8-K of Vail
Resorts, Inc. filed on October 13, 2021 (File No. 001-09614).
Master Agreement of Lease, dated May 29, 2013, between VR CPC Holdings, Inc. and Talisker Canyons Leaseco
LLC. (Incorporated by reference to Exhibit 10.1 on Form 8-K of Vail Resorts, Inc. filed on May 30, 2013) (File
No. 001-09614).
Guaranty of Vail Resorts, Inc., dated May 29, 2013, in connection with the Master Agreement of Lease between
VR CPC Holdings, Inc. and Talisker Canyons Leaseco LLC. (Incorporated by reference to Exhibit 10.2 on Form
8-K of Vail Resorts, Inc. filed on May 30, 2013) (File No. 001-09614).
Vail Resorts, Inc. Management Incentive Plan (Incorporated by reference to Exhibit 10.1 on Form 10-Q of Vail
Resorts, Inc. for the quarter ended October 31, 2021) (File No. 001-09614).
Vail Resorts, Inc. 2015 Omnibus Incentive Plan (Incorporated by reference to Exhibit 10.1 on Form 8-K of Vail
Resorts, Inc. filed on December 7, 2015) (File Number 001-09614).
Form of Restricted Share Unit Agreement (effective September 23, 2020) (Incorporated by reference to Exhibit
10.17 on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2020) (File Number 001-09614).
Form of Share Appreciation Rights Agreement (effective September 23, 2020) (Incorporated by reference to
Exhibit 10.18 on Form 10-K of Vail Resorts, Inc. for the year ended July 31, 2020) (File Number 001-09614).
Eighth Amended and Restated Credit Agreement, Annex A to that certain Amendment Agreement, dated as of
August 15, 2018, among Vail Holdings, Inc., as borrower, Bank of America, N.A., as administrative agent, U.S.
Bank National Association and Wells Fargo, National Association, as co-syndication Agents, and the Lenders
party thereto (Incorporated by reference to Exhibit 10.1 on Form 10-Q of Vail Resorts, Inc. for the quarter ended
October 31, 2018) (File No. 001-09614).
First Amendment to the Eighth Amended and Restated Credit Agreement, dated as of April 15, 2019, among Vail
Holdings, Inc., as borrower, and Bank of America, N.A., as administrative agent, on its own behalf and on behalf
of the Lenders party thereto (Incorporated by reference to Exhibit 10.1 on Form 10-Q of Vail Resorts, Inc. for the
quarter ended April 30, 2019) (File No. 001-09614).
103
Posted
Exhibit
Number
10.18(c)
Description
Second Amendment to the Eighth Amended and Restated Credit Agreement, dated as of September 23, 2019,
among Vail Holdings, Inc., as borrower, and Bank of America, N.A., as administrative agent, on its own behalf
and on behalf of the Lenders party thereto. (Incorporated by reference to Exhibit 10.1 on Form 10-Q of Vail
Resorts, Inc. for the quarter ended October 31, 2019) (File No. 001-09614).
10.18(e)
10.18(d) Third Amendment to the Eighth Amended and Restated Credit Agreement, dated as of April 28, 2020, among
Vail Holdings, Inc., as borrower, and Bank of America, N.A., as administrative agent, on its own behalf and on
behalf of the Lenders party thereto (Incorporated by reference to Exhibit 10.1 on Form 10-Q of Vail Resorts, Inc.
for the quarter ended April 30, 2020) (File No. 001-09614).
Fourth Amendment to the Eighth Amended and Restated Credit Agreement, dated as of December 18, 2020,
between Vail Holdings, Inc., as borrower, Vail Resorts, Inc. and certain subsidiaries of Vail Resorts, Inc., as
guarantors, and Bank of America, N.A., as administrative agent, on its own behalf and on the behalf of the
Lenders party thereto. (Incorporated by reference to Exhibit 10.1 on Form 8-K of Vail Resorts, Inc. filed on
December 18, 2020) (File No. 001-09614).
Fifth Amendment to the Eighth Amended and Restated Credit Agreement, dated as of August 31, 2022, between
Vail Holdings, Inc., as borrower, Vail Resorts, Inc. and certain subsidiaries of Vail Resorts, Inc., as guarantors,
and Bank of America, N.A., as administrative agent, on its own behalf and on the behalf of the Lenders party
thereto. (Incorporated by reference to Exhibit 10.19(f) on Form 10-K of Vail Resorts, Inc. filed on September 28,
2022) (File No. 001-09614).
Second Amended and Restated Credit Agreement, dated as of April 14, 2023, among Whistler Mountain Resort
Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership, as borrowers, the Guarantors Party
hereto, the Financial Institutions named herein, The Toronto-Dominion Bank, as administrative agent, on its own
behalf and on behalf of the Lenders (Incorporated by reference to Exhibit 10.1 on Form 10-Q of Vail Resorts, Inc.
for the quarter ended April 30, 2023) (File No. 001-09614).
10.18(f)
10.19
10.21
10.22
10.20 Whistler Mountain Master Development Agreement, dated as of February 23, 2017, between Her Majesty the
Queen in Right of the Province of British Columbia and Whistler Mountain Resort Limited Partnership
(Incorporated by reference to Exhibit 10.1 on Form 8-K of Vail Resorts, Inc. filed on February 27, 2017) (File
No. 001-09614).
Blackcomb Mountain Master Development Agreement, dated as of February 23, 2017, between Her Majesty the
Queen in Right of the Province of British Columbia and Blackcomb Skiing Enterprises Limited Partnership
(Incorporated by reference to Exhibit 10.2 on Form 8-K of Vail Resorts, Inc. filed on February 27, 2017) (File
No. 001-09614).
Form of Separation Agreement and General Release (Incorporated by reference to Exhibit 10.1 on Form 8-K of
Vail Resorts, Inc. filed on March 2, 2023) (File No. 001-09614).
Subsidiaries of Vail Resorts, Inc.
Consent of Independent Registered Public Accounting Firm.
Power of Attorney. Included on signature pages hereto.
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
21
23
24
31.1
31.2
32
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104
The cover page from this Annual Report on Form 10-K, formatted in inline XBRL.
*Management contracts and compensatory plans and arrangements.
ITEM 16.
FORM 10-K SUMMARY.
None.
104
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: September 28, 2023
Vail Resorts, Inc.
Date: September 28, 2023
By:
By:
/s/ Angela A. Korch
Angela A. Korch
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
Vail Resorts, Inc.
/s/ Nathan Gronberg
Nathan Gronberg
Vice President, Controller and
Chief Accounting Officer
(Principal Accounting Officer)
POWER OF ATTORNEY
Each person whose signature appears below hereby constitutes and appoints Angela A. Korch or Nathan Gronberg his or her
true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him or her and in his or her
name, place and stead, in any and all capacities, to sign any or all amendments or supplements to this Form 10-K and to file the
same with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing necessary
or appropriate to be done with this Form 10-K and any amendments or supplements hereto, as fully to all intents and purposes
as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or their
substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities indicated on September 28, 2023.
105
/s/ Kirsten A. Lynch
Kirsten A. Lynch
/s/ Angela A. Korch
Angela A. Korch
/s/ Nathan Gronberg
Nathan Gronberg
/s/ Robert A. Katz
Robert A. Katz
/s/ Susan L. Decker
Susan L. Decker
/s/ Nadia Rawlinson
Nadia Rawlinson
/s/ John T. Redmond
John T. Redmond
/s/ Michele Romanow
Michele Romanow
/s/ Hilary A. Schneider
Hilary A. Schneider
/s/ D. Bruce Sewell
D. Bruce Sewell
/s/ John F. Sorte
John F. Sorte
/s/ Peter A. Vaughn
Peter A. Vaughn
Chief Executive Officer
(Principal Executive Officer)
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
Vice President, Controller and Chief Accounting Officer
(Principal Accounting Officer)
Executive Chairperson of the Board
Director
Director
Director
Director
Director
Director
Director
Director
Director
106
CORPORATE DATA
Board of Directors
Senior Executives
Corporate Information
Kirsten A. Lynch
Chief Executive Officer
Timothy M. April
Executive Vice President and Chief
Information Officer
Angela Korch
Executive Vice President and Chief
Financial Officer
Lynanne J. Kunkel
Executive Vice President and Chief
Human Resources Officer
Bill Rock
President – Mountain Division
David T. Shapiro
Executive Vice President, General
Counsel and Secretary
Greg Sullivan
Executive Vice President,
Retail/Rental and Hospitality
Corporate Offices
Vail Resorts, Inc.
390 Interlocken Crescent
Broomfield, Colorado 80021
303.404.1800
Stock Exchange Listing
The common shares of Vail
Resorts, Inc. are listed and traded
on the New York Stock Exchange
under the ticker symbol MTN.
Independent Auditors
PricewaterhouseCoopers LLP
Denver, Colorado
Transfer Agent and Registrar
EQ Shareowner Services by
Equiniti
St. Paul, Minnesota
800.468.9716
Investor Relations
InvestorRelations@vailresorts.com
Kenny Thompson, Jr.
Senior Vice President and Chief Public
Affairs Officer
Websites
www.vailresorts.com
www.snow.com
Robert A. Katz
Executive Chairperson
Vail Resorts, Inc.
Susan L. Decker
Chief Executive Officer and
Co-Founder,
Raftr
Kirsten A. Lynch
Chief Executive Officer
Vail Resorts, Inc.
Nadia Rawlinson
Operating Chairman,
WNBA – Chicago Sky
John T. Redmond
Former Chief Executive Officer,
Allegiant Travel Company
Michele Romanow
Co-Founder and Executive Chairman,
Clearco
Hilary A. Schneider
Strategic Advisor to the Board of
Directors,
Shutterfly, LLC
D. Bruce Sewell
Former Senior Vice President,
General Counsel & Secretary,
Apple Inc.
John F. Sorte
Executive Chairman,
Morgan Joseph TriArtisan Group Inc.
Peter A. Vaughn
Founder and Managing Director,
Vaughn Advisory Group, LLC