Segment Information

6 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

Note 17. Segment Information

The Company classifies its business interests into three reportable segments which are MSG Media, MSG Entertainment and MSG Sports. The Company allocates certain corporate costs to all of its reportable segments. In addition, the Company allocates its venue operating expenses to its MSG Entertainment and MSG Sports segments. Venue operating expenses include the non-event related costs of operating the Company's venues, and includes such costs as rent, real estate taxes, insurance, utilities, repairs and maintenance and labor related to the overall management of the venues. Depreciation expense related to The Garden and The Theater at Madison Square Garden is not allocated to the reportable segments and is recognized in "All other."

The Company conducts a significant portion of its operations at venues that it either owns or operates under long-term leases. The Company owns The Garden and The Theater at Madison Square Garden in New York City, as well as The Chicago Theatre in Chicago. It leases Radio City Music Hall and the Beacon Theatre in New York City. The Company also has a booking agreement with respect to the Wang Theatre in Boston.

The Company evaluates segment performance based on several factors, of which the key financial measure is their operating income (loss) before (i) depreciation, amortization and impairments of property and equipment and intangible assets, (ii) share-based compensation expense or benefit and (iii) restructuring charges or credits, which is referred to as adjusted operating cash flow ("AOCF"), a non-GAAP measure. The Company has presented the components that reconcile AOCF to operating income (loss), an accepted GAAP measure. Information as to the operations of the Company's reportable segments is set forth below.

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Revenues
MSG Media	$	142,408		$	144,105		$	281,038		$	277,539
MSG Entertainment		151,224			177,530			178,826			215,714
MSG Sports		88,622			128,732			117,436			165,637
Inter-segment eliminations (a)		(9,247	)		(17,693	)		(26,654	)		(35,386	)
	$	373,007		$	432,674		$	550,646		$	623,504

^(a) Primarily represents local media rights recognized by the Company's MSG Sports segment from the licensing of team related programming to the Company's MSG Media segment which are eliminated in consolidation. Local media rights are generally recognized on a straight-line basis over the fiscal year, with the exception of the three months ended December 31, 2011 as a result of the overall reduction in the number of events exclusively available to MSG Networks in that quarter.

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Inter-segment revenues
MSG Entertainment	$	22	$	26	$	42	$	52
MSG Sports		9,225		17,667		26,612		35,334
	$	9,247	$	17,693	$	26,654	$	35,386

Reconciliation (by Segment and in Total) of AOCF to Operating Income (Loss)

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
AOCF
MSG Media	$	63,555		$	51,709		$	127,371		$	107,375
MSG Entertainment		37,173			18,148			23,381			7,218
MSG Sports		(19,920	)		3,198			(20,383	)		4,757
All other (a)		(1,661	)		(3,495	)		(5,146	)		(7,531	)
	$	79,147		$	69,560		$	125,223		$	111,819

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Depreciation and amortization (including impairments)
MSG Media	$	8,604	$	4,266	$	14,155	$	8,696
MSG Entertainment		2,558		2,535		4,908		4,839
MSG Sports		2,731		2,974		5,467		5,595
All other (b)		10,201		4,373		15,928		8,517
	$	24,094	$	14,148	$	40,458	$	27,647

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Share-based compensation expense
MSG Media	$	1,823	$	790	$	2,924	$	1,744
MSG Entertainment		1,631		1,120		2,702		1,822
MSG Sports		1,557		826		2,480		1,467
All other		2,086		236		2,340		441
	$	7,097	$	2,972	$	10,446	$	5,474

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Operating income (loss)
MSG Media	$	53,128		$	46,653		$	110,292		$	96,935
MSG Entertainment		32,984			14,493			15,771			557
MSG Sports		(24,208	)		(602	)		(28,330	)		(2,305	)
All other		(13,948	)		(8,104	)		(23,414	)		(16,489	)
	$	47,956		$	52,440		$	74,319		$	78,698

A reconciliation of reportable segment operating income to the Company's consolidated income from operations before income taxes is as follows:

	Three Months Ended December 31,						Six Months Ended December 31,
	2011			2010			2011			2010
Total operating income for reportable segments	$	61,904		$	60,544		$	97,733		$	95,187
Other operating loss		(13,948	)		(8,104	)		(23,414	)		(16,489	)
Operating income		47,956			52,440			74,319			78,698
Items excluded from operating income:
Interest income		580			648			1,127			1,267
Interest expense		(1,891	)		(1,777	)		(3,640	)		(3,618	)
Miscellaneous income		—			874			—			1,924
Income from operations before income taxes	$	46,645		$	52,185		$	71,806		$	78,271

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Capital expenditures
MSG Media	$	1,905	$	5,148	$	3,074	$	11,043
MSG Entertainment		1,075		2,511		1,926		3,884
MSG Sports		691		494		954		729
All other (c)		116,777		51,686		259,917		77,676
	$	120,448	$	59,839	$	265,871	$	93,332

^(a) Consists of unallocated corporate general and administrative costs. The results for the six months ended December 31, 2011 reflect changes made by the Company to include approximately $2,000 of certain costs in our reportable segment results that were previously not allocated. We believe these costs are more appropriately reflected in our reportable segment results. These changes were not material to our reportable segment results.

^(b) Includes depreciation and amortization expense on The Garden and The Theater at Madison Square Garden and certain corporate property, equipment and leasehold improvement assets not allocated to the Company's reportable segments.

^(c) Consists principally of capital expenditures associated with the Transformation.

Substantially all revenues and assets of the Company's reportable segments are attributed to or located in the United States and are primarily concentrated in the New York metropolitan area.