Segment Information | 17. Segment Information The Company currently manages and reports operating results through three segments: Mountain, Adventure and Real Estate. The Mountain segment includes the operations of the Company’s mountain resorts and related ancillary activities. The Mountain segment earns revenue from a variety of activities, including lift revenue, lodging revenue, ski school revenue, retail and rental revenue, food and beverage revenue, and other revenue. The Adventure segment generates revenue from the sale of helicopter accessed skiing, mountaineering and hiking adventure packages, and ancillary services, such as fire suppression services, leasing, and maintenance, repair and overhaul of aircraft. The Real Estate segment includes management of condominium hotel properties and real estate management, including marketing and sales activities, as well as real estate development activities. The Real Estate segment includes the results of IRCG, a vacation club business, prior to the Disposition Date. Each of the Company’s segments offers distinctly different products and services and requires different types of management focus. As such, these segments are managed separately. In deciding how to allocate resources and assess performance, the Company’s Chief Operating Decision Maker (“CODM”) regularly evaluates the performance of the Company's segments on the basis of revenue and earnings, which are adjusted for certain items set forth in the reconciliation below, including interest, taxes, depreciation and amortization (“Adjusted EBITDA”). The Company also evaluates Adjusted EBITDA as a key compensation measure. The compensation committee of the board of directors determines the annual variable compensation for certain members of the management team based, in part, on Adjusted EBITDA. Adjusted EBITDA is useful when comparing the segment performance over various reporting periods because it removes from the operating results the impact of items that the Company's management believes do not reflect the core operating performance. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss) or other measures of financial performance or liquidity derived in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other entities may not calculate Adjusted EBITDA in the same manner as the Company. The Company's definition of Adjusted EBITDA is generally consistent with the definition of Consolidated EBITDA in the Credit Agreement, with exceptions related to not adjusting for recurring public company costs and foreign currency translation adjustments related to operational activities and adjusting for executive management restructuring costs. The Company defines Adjusted EBITDA as net income (loss) attributable to Intrawest Resorts Holdings, Inc. before interest expense, net (excluding interest income earned from receivables related to IRCG operations through the Disposition Date), income tax benefit or expense and depreciation and amortization, further adjusted to exclude certain items, including, but not limited to: (i) impairments of goodwill, real estate and long-lived assets; (ii) gains and losses on asset dispositions; (iii) earnings and losses from equity method investments; (iv) gains and losses from remeasurement of equity method investments; (v) gains and losses on extinguishment of debt; (vi) other income or expense; (vii) earnings and losses attributable to noncontrolling interest; (viii) discontinued operations, net of tax; and (ix) other items, which include revenue and expenses of legacy and other non-core operations, restructuring charges and associated severance expenses, non-cash compensation and other items. For purposes of calculating Adjusted EBITDA, the Company also adds back to net income (loss) attributable to Intrawest Resorts Holdings, Inc., the pro rata share of Adjusted EBITDA related to equity method investments included within the segments and removes from Adjusted EBITDA the Adjusted EBITDA attributable to noncontrolling interests for entities consolidated within the segments. Asset information by segment, except for capital expenditures as shown in the table below, is not included in reports used by the CODM in monitoring of performance and, therefore, is not disclosed. The accounting policies of the segments are the same as those described in Note 2, "Significant Accounting Policies". Transactions among segments are accounted for as if the sales or transfers were to third parties, or, in other words, at current market prices. The following table presents consolidated revenue and net income (loss) reconciled to Adjusted EBITDA and Adjusted EBITDA by segment, (in thousands): Year Ended June 30, 2016 2015 2014 Revenue: Mountain Lift (1) $ 179,841 $ 182,286 $ 151,490 Lodging 60,129 57,814 42,294 Ski School (2) 30,974 33,086 28,943 Retail and Rental 51,984 56,125 45,214 Food and Beverage 57,234 56,726 46,335 Other 41,170 39,892 36,587 Total Mountain revenue 421,332 425,929 350,863 Adventure revenue 104,405 96,799 102,070 Real Estate revenue 42,433 59,274 58,530 Total segment revenue 568,170 582,002 511,463 Legacy, non-core and other revenue (3) 2,742 5,587 13,790 Total revenue $ 570,912 $ 587,589 $ 525,253 Net income (loss) attributable to Intrawest Resorts Holdings, Inc. $ 40,873 $ (6,920 ) $ (189,417 ) Legacy and other non-core expenses, net (4) 6,226 3,663 4,164 Other operating expenses (5) 8,074 9,789 11,200 Depreciation and amortization 60,123 59,076 55,413 (Gain) on sale of Intrawest Resort Club Group (40,401 ) — — (Gain) loss on disposal of assets (1,926 ) (2,280 ) 267 Impairment of real estate and long-lived assets — — 871 Loss on remeasurement of equity method investment — 1,454 — Interest income, net (6) (936 ) (274 ) (319 ) Interest expense on third party debt 40,377 43,891 53,004 Interest expense on notes payable to affiliates — — 119,858 (Earnings) loss from equity method investments (7) (1,933 ) 3,810 271 Pro rata share of EBITDA related to equity method investments (unaudited) (8), (9) 3,570 3,252 9,153 Adjusted EBITDA attributable to noncontrolling interest (3,151 ) (2,484 ) (620 ) Loss on extinguishment of debt — 676 35,480 Other (income) expense, net (1,757 ) 1,128 823 Income tax expense (benefit) 1,773 (3,902 ) 677 Income attributable to noncontrolling interest 2,193 1,821 369 Total Adjusted EBITDA $ 113,105 $ 112,700 $ 101,194 Mountain adjusted EBITDA (8) $ 84,334 $ 88,972 $ 75,417 Adventure adjusted EBITDA (10) 22,146 13,305 16,558 Real Estate adjusted EBITDA (11) 6,625 10,423 9,219 Total Adjusted EBITDA $ 113,105 $ 112,700 $ 101,194 (1) Lift revenue outside of the ski season is derived from mountain biking and sightseeing lift products. (2) Ski School revenue outside of the ski season is derived from mountain bike instruction at various resorts. (3) Legacy, non-core and other revenue represents legacy and other non-core operations that are not reviewed regularly by the CODM to assess performance and make decisions regarding the allocation of resources. It includes legacy real estate asset sales, divested non-core operations, and non-core retail revenue. Included in the year ended June 30, 2014 was $10.9 million of revenue from sales of non-core real estate held for development. (4) Legacy and other non-core expenses, net represents revenue and expenses of legacy and other non-core operations that are not reviewed regularly by the CODM to assess performance and make decisions regarding the allocation of resources. Revenue and expenses related to legacy and other non-core operations include retail operations not located at the Company’s properties and legacy litigation consisting of claims for damages related to alleged construction defects, purported disclosure violations in real estate marketing sales and documents, and allegations that the Company failed to construct planned amenities. (5) Includes costs related to the Company's initial public offering, non-cash compensation, reduction in workforce severance, executive management restructuring costs, lease payments pursuant to the lease at Winter Park and other expenses. (6) Includes interest income unrelated to IRCG financing activities. (7) Represents the losses from equity method investments, including: Chateau M.T. Inc., Mammoth Hospitality Management L.L.C., the Mammoth family of resorts, and Blue Mountain prior to the Blue Mountain Acquisition. (8) Includes the Company’s pro rata share of Adjusted EBITDA from its equity method investment in Blue Mountain prior to the Blue Mountain Acquisition. The pro rata share of Adjusted EBITDA represents the share of Adjusted EBITDA from the equity method investment based on the Company’s economic ownership percentage. (9) Includes the Company’s pro rata share of EBITDA from its equity method investments in Mammoth Hospitality Management L.L.C. and Chateau M.T. Inc. The pro rata share of Adjusted EBITDA represents the Company’s share of Adjusted EBITDA from these equity method investments based on the Company's economic ownership percentages. (10) Adventure segment Adjusted EBITDA excludes Adjusted EBITDA attributable to noncontrolling interest. (11) Real Estate segment Adjusted EBITDA includes interest income earned from receivables related to the IRCG operations in the amount of $1.9 million, $3.9 million, and $4.4 million for the years ended June 30, 2016 , 2015 and 2014 , respectively. Capital Expenditures The following table presents capital expenditures for each segment, reconciled to consolidated amounts for the years ended June 30, 2016 , 2015 and 2014 (in thousands): Year Ended June 30, 2016 2015 2014 Capital expenditures: Mountain $ 35,285 $ 33,004 $ 32,707 Adventure 9,994 4,425 6,891 Real Estate 307 501 772 Total segment capital expenditures 45,586 37,930 40,370 Corporate and other 5,493 3,943 4,872 Total capital expenditures $ 51,079 $ 41,873 $ 45,242 Geographic Data The Company’s revenue by geographic region for the years ended June 30, 2016 , 2015 and 2014 consisted of the following (in thousands): Year Ended June 30, 2016 2015 2014 Revenue: United States $ 337,104 $ 348,336 $ 326,406 Canada 233,808 239,253 198,847 Total revenue $ 570,912 $ 587,589 $ 525,253 The Company’s long-lived assets by geographic region for the years ended June 30, 2016 and 2015 consisted of the following (in thousands): Year Ended June 30, 2016 2015 Long-lived assets: United States $ 521,328 $ 525,941 Canada 283,443 304,166 Total long-lived assets $ 804,771 $ 830,107 |